Treasury

The Chancellor of the Exchequer, Rachel Reeves, opened the debate by outlining the Government's position on occupational pensions and tax relief. She emphasized the importance of encouraging savings to ensure decent incomes in retirement, highlighting the success of automatic enrolment in getting 11 million more people saving. Reeves acknowledged the concerns raised by members on both sides of the House regarding potential changes to the 25% tax-free drawdown or reductions in tax relief on pension contributions, stating that the Government's pensions review aims to ensure pensioners receive a good deal in retirement and that those who have worked hard to save have a decent return on their investment. In response, the shadow Minister, Nigel Huddleston, congratulated the Chancellor and her team on their appointments, and asked for confirmation that the Government would not increase taxes on pensions in the upcoming Budget, given the promises made during the election campaign not to increase taxes on working people. The debate then covered a range of topics, including the Government's plans for fiscal steps to reform the planning system, encourage inward investment, and ensure economic stability. The Chancellor and her team highlighted the Government's commitment to delivering 1.5 million new homes, establishing a national wealth fund to boost investment, and taking steps to address the £22 billion black hole in the public finances inherited from the previous government. The discussion also touched on the Government's plans to support pensioners with the cost of living, with the Chancellor defending the decision to make the winter fuel payment better targeted, while emphasizing the importance of increasing the uptake of pension credit to ensure the poorest pensioners receive the support they are entitled to. Members from across the House raised concerns about the impact of this decision on their constituents, particularly those just above the pension credit threshold. The debate also covered the Government's priorities for improving living standards and driving economic growth, with the Chancellor outlining plans to reform employment support, empower working people, and deliver on the Government's growth mission. The shadow Chancellor, Jeremy Hunt, raised questions about the appointment of a Treasury director and allegations of cronyism, which the Chancellor dismissed as the previous government's legacy. Overall, the debate highlighted the significant fiscal and economic challenges facing the new Government, as well as the range of policy areas where the Government is seeking to make progress, from housing and planning to pensions and support for households. The discussion reflected the robust but civil interactions between the Government and the opposition, as they work to hold the Treasury to account on these important decisions.