UK Government urged to reverse ‘damaging’ decision
The UK Government’s decision to introduce means testing for the Winter Fuel Payment must be reversed, according to MSPs.
Following a debate as part of Challenge Poverty Week, the Scottish Parliament voted in favour of a motion that the UK Government reverse its decision to restrict entitlement to the benefit. Labour MPs Richard Leonard and Alex Rowley supported the motion.
Fourteen Scottish Labour MSPs, including Edinburgh MSPs Sarah Boyack, Foysol Choudhury and Daniel Johnson, voted with their leader Anas Sarwar against the motion.
First Minister John Swinney said that as a result of this damaging decision, Scottish Government analysis indicates roughly 900,000 Scottish pensioners will no longer be entitled to support with heating costs this winter.
Commenting after the debate, the First Minister said: “More austerity is not the solution to the restrictive fiscal environment in which the UK Government, and governments across the globe, find themselves.
“It is a mistake to think that action to tackle poverty for our most vulnerable citizens are costs to be mitigated. These measures are investments in our people, our communities and our nation’s future. I have urged the UK Government to deliver an Autumn Budget that recognises this reality.
“Scotland’s Parliament has spoken, and I repeat my call for the UK Government to reverse its damaging decision to restrict entitlement to Winter Fuel Payments for pensioners.
“The Scottish Government will continue to support households with their energy bills and tackle fuel poverty. However the UK Government must ensure their budget in October provides the necessary support to those who need it most.”
CANTERBURY MP Rosie Duffield has resigned from the Labour Party, criticising Labour leader Sir Keir Starmer – now labelled Free Gear Keir – for accepting thousands of pounds worth of personal items while at the same time removing Winter Fuel Payments from thousands of struggling pensioners.
22 organisations sign letter to Rachel Reeves calling on the UK Government to halt Winter Fuel Payment change
Independent Age says that “sudden change puts lives at risk”
Call is backed by campaigners who have emailed their local MP for support
22 charities have sent an open letter to the Chancellor, Rachel Reeves, calling on her to urgently review the change to the Winter Fuel Payment for older people.
The change announced by Ms Reeves, the Chancellor of the Exchequer, on Monday mean that people aged 66 and over who don’t receive Pension Credit or a small number of other means-tested benefits, will no longer receive automatic annual payments of between £100 and £300 to help with energy costs through the winter.
Right now, Pension Credit has a low take-up of just 63%, meaning up to 1.2 million older people who are eligible will now miss out on this additional support. Many more are just above the level of eligibility for Pension Credit but still can’t afford to pay their bills.
Independent Age, one of the charities leading the call, has launched an open letter today calling on the Chancellor of the Exchequer to not make these changes now while Pension Credit is not received by everyone it should be.
The charity also says the UK Government needs to make sure that everyone receives an adequate income in later life so that those who aren’t eligible for Pension Credit but still face financial hardship have enough to live on.
In the letter, the organisations say:‘Linking the qualification of the Winter Fuel Payment to whether an older person receives Pension Credit could mean up to 1.2 million older people on low incomes miss out on even more vital financial support.
“As a result, many of them will inevitably be pushed further into poverty.
“Restricting the Winter Fuel Payment this autumn does not give the UK Government time to significantly boost Pension Credit take-up to a level that would reduce some of the side-effects of this measure. It will leave many older people on low incomes facing a cold and dangerous winter.”
Morgan Vine, Head of Policy and Influencing at Independent Ageadded: “It is not an overstatement to warn that, in its current form, this sudden change puts lives as risk. Too many people on a low income now face an uncertain winter where their budgets are even more stretched and will be forced to make dangerous and stressful decisions.
“While we understand that the UK Government must make difficult decisions, this is too much, too soon. We urge the Chancellor to not make this change now, and instead ensure every older person has an adequate income to avoid financial hardship before removing the Winter Fuel Payment. Any less risks serious consequences for older people in poverty.”
Members of the public are being invited by Independent Age to email their MP to ask for a halt to the changes. They can do this by visiting this webpage.
Pension Credit is a form of financial support which ‘tops-up’ the income of people over State Pension age who fall below an income threshold of £218.15 for a single person and £332.95 for a couple.
Many of those eligible could also unlock additional benefits worth thousands a year such as the Warm Home Discount, a free TV licence, Council Tax Reduction and free NHS dental treatment.
To apply, visit the gov.uk website on Pension Credit, or you can visit the Independent Age website at https://www.independentage.org/get-advice/money/benefits/pension-credit or call the free Independent Age helpline on 0800 319 6789 during working hours for help with understanding whether you could be eligible.
It ain’t pretty. But there’s also politics at play.
Rachel Reeves gave a statement to the House of Commons on what the government calls the “spending inheritance” (writes Fraser of Allander Institute’s JOAO SOUSA).
It’s important to make clear what this is and isn’t about. If you hear people saying that this is all to do with fiscal rules, that’s incorrect. We have highlighted many problems with them, but this statement is all to do with this year’s public finances, meaning 2024-25 – all the fiscal rules will apply to 2029-30, although there will be some knock-on effects into future years from these decisions.
Ultimately, this is only a partial fiscal statement – setting the scene for the Budget, the date of which has been announced for 30 October. It is a welcome return to normality in that there will be more than 10 weeks for the OBR to prepare its forecast.
The spending pressures and the ‘black hole’ – how does the Treasury calculate it?
Rachel Reeves said in her statement that pressures on public spending exceeded allocated funding by £35 billion. Some of this is additional spending from accepting the recommended pay awards from the Pay Review Boards in England, which are higher than the previous government had budgeted for.
Others come from areas like accommodation for asylum claimants, which the previous government had just assumed would come from the Home Office’s spending limit. Given that the Home Office’s total allocation is £21 billion, you can see why accommodating a pressure worth nearly a third the size of its envelope was not credible.
The Treasury had set aside £9 billion in reserve – a usual management practice for unforeseen circumstances during the course of the year, and which allows the government to plan in some budget cover for unspecified departments. This reduces spending pressures to £26 billion.
The Treasury also assumes that some of these pressures will either not materialise (they are pressures after all, not crystallised spending yet) or that some will be “managed away” – usually by playing hardball and forcing departments to find savings somewhere else.
Ever wondered why the Home Office keeps putting fees for anything to do with visas and passports? The Treasury allows them to deduct it against their budget (fees are classified in Estimates as “negative spending”, for the fiscal aficionados) and it’s the quid pro quo of accepting responsibility for the financial risk for spending pressures.
There are a few rounds of this over the course of the year, and by the time of Supplementary Estimates – usually mid-February – the Treasury and other departments essentially have a stare-down contest, which tends to end up with both sides conceding somewhat, and so the Treasury assumes something about its ability to do that – what is called ‘fallaway’ in the document. This amounts to £7.1 billion, and bring estimated pressures down to £19 billion.
The Treasury then adds back £2.9 billion to get to what they call “total pressures”, because this is how much the OBR assumes that the UK Government will underspend its limits by. Essentially, the OBR assumed actual spending would be £2.9 billion lower than the limits; given that pressures on the Treasury side are relative to the limits, this amount needs added to get to the total pressures compared with the OBR forecast.
This ‘Treasury maths’ is all fine – but what does this mean in practice?
This statement only looked at the spending side of the ledger, comparing what had been budgeted for with what the most recent view of spending plans is. It’s actually quite consistent with the latest data from the ONS as well, which when compared with the OBR’s forecast and extrapolated for the rest of the year, would suggest that consumption spending (mostly comprising of departmental spending) is running around £20 billion higher than expected in March.
Faced with this, the Chancellor has several options: she can let borrowing increase – which would happen automatically if she accommodated pressures; she can reallocate spending from other areas to combat pressures; she could raise taxes; or a combination of the three.
The immediate signal appears to be that the Chancellor is not prepared to just borrow the additional £22 billion. She has committed to £5.5 billion in savings this year: £1.4 billion coming from means-testing winter fuel payments to pensioners, with most of the rest coming from as-yet not fully specified ‘efficiencies’: out of the £3.2 billion pencilled in, just £0.9 billion are itemised.
This is a legitimate criticism of the plans – these savings are hard to deliver and can’t just be magicked into existence. Although the same (or even more) could be said about the fantasy £20 billion in productivity improvements that Jeremy Hunt claimed he had delivered in his response.
But this still leaves around £16 billion to cover. Rachel Reeves left the door open to some tax rises – she said she would not increase any of the headline rates of income tax, National Insurance contributions, VAT or corporation tax, but that still leaves room for base-broadening reforms and increases in other taxes.
We’ll have to wait until the Autumn to see how much of this additional £16 billion will be covered by tax rises, and to what extent the Chancellor will accommodate some additional borrowing. A combination of the two seems likely.
Did Jeremy Hunt or the Treasury hide this?
The more politically heated debate was the extent to which there was some sort of hiding of the ugly truth of what spending pressures looked like in March, at the time which the OBR included the Treasury’s plans in the forecasts for the public finances.
Richard Hughes, Chair of the OBR, wrote a letter to the Treasury Committee announcing a review of the “adequacy of the information and the assurances provided to the OBR by the Treasury regarding departmental spending.”
This is a pretty strongly worded letter, and in my view – as someone who was included in the scrutiny of these spending plans – reflects long-standing frustrations of OBR officials and commissioners about their inability to fully assess the credibility of spending plans.
The Chancellor announced she would be updating the Charter for Budget Responsibility to include the sharing information on ‘immediate spending pressures’ with the OBR. This sounds like a good idea, right? So good that in fact it already is in place, and is provided in legislation by compelling the Government to make available to the OBR essentially any information that is relevant for the preparation of the forecasts.
And the Treasury does share this, in my experience – although with some prompting required at times. Ultimately, the biggest issue here is more political and less tractable than the Chancellor let on, and reflects what former commissioner Andy King wrote earlier in the year.
The OBR is really in a bit of a bind, having to reflect spending policy which is set at a very aggregate level and which it cannot opt out of including in the forecasts. If it did, it would be the nuclear option – it would cause a breakdown in the institutional framework between it and the Treasury.
This is quite a difficult institutional arrangement, and there’s probably no single solution that would solve that. But I do think that a bigger focus on economic categories such as pay, procurement and other elements – much like Andy King’s suggestion – would be helpful in increasing scrutiny and understanding of the underpinnings of the forecast.
I would go further in suggesting doing this for the largest departments as well as the overall central government sector – which would allow further scrutiny in terms of understanding what’s being planned for different areas in the face of an ageing population.
This is an area where the Treasury’s lack of interest and buy-in into providing always struck me as odd and self-defeating. Of course it might unearth some difficult trade-offs, but it is also what a responsible workforce planning authority should be doing anyway. And in any case, to govern is to choose – and all of us members of the public would benefit from having access to better information on this.
That alone would be enough to make it worthwhile keeping the pressure on the Treasury to agree to provide this.
Brace yourselves: a spending review is coming
The Chancellor also provided some much needed clarity in terms of the spending review timetable. We now know that what is essentially an interim 1-year review will be concluded alongside the Budget on 30 October, where 2025-26 budgets will be set.
The spring of 2025 will see a welcome return to multi-year budgeting, with a full spending review covering at least three of the five forecast years. There will also be a requirement for a spending review every two calendar years, bringing a much-needed default assumption about the frequency of these exercises. They had become progressively ad hoc, and it will be up to the Government to show it does indeed comply with its own set of timetables.
Implications for the Scottish Government
A few things stand out in terms of what this means for the Scottish Government. In terms of timings, we now know when the UK Budget will be and that it will come alongside a block grant settlement for 2025-26, a pre-condition for the Scottish Budget.
This means we are likely to see the Cabinet Secretary for Finance appearing in the Debating Chamber to deliver the Budget Statement in late November or early December – hopefully avoiding the difficulties the Finance Committee had in scrutinising the Budget last year due to proximity to recess.
In the case of most of the measures announced, the direct impact on the Scottish Budget might be relatively limited, though we’ll have to wait until 30 October to be sure. A non-negligible proportion of the accommodated pressures will come from reductions in other spending areas – most of those reallocations would not change budget totals, although composition matters for Barnett consequentials.
If there is increased borrowing to allow for some of this additional spending, then there might be some added funding for Scotland.
But where there is an immediate prospect of a decision for the Scottish Government to make is on winter fuel payments (or pension age winter heating payments, as they are now known in Scotland). This is now a devolved benefit, and the Scottish Government gets an additional block of funding on the basis of equivalent in England and Wales, worth around £180 million.
With eligibility being restricted, the transfer from Westminster will be reduced, and it will therefore be for the Scottish Government to decide whether it follows the UK Government in changing eligibility or whether it wants to maintain universality and therefore needs to find additional funds for it.
Plans to reveal which new hospitals, surgeries and treatment centres will be built in Scotland have been delayed.
In a letter to Holyrood’s finance committee, Cabinet secretary for Finance and Local Government Shona Robison explained: ‘To provide as much certainty as possible to parliament and wider stakeholders of our capital investment plans, I must wait until I have confirmed capital allocations from the new UK government”.
That confirmation is not expected until late Autumn – and, given the new Labour government’s warnings about a £20 bn. ‘black hole in the UK’s finances, it’s not expected to be good news.
Lothian Conservative MSP, Miles Briggssaid: “This further delay to finding out if SNP Ministers will reinstate the funding for a new Princess Alexandra Eye Pavilion is extremely disappointing.
“We urgently need a new eye hospital to improve the delivery of ophthalmology across the South East of Scotland.
“The decision by SNP Ministers not to reverse funding for a new hospital has been a disastrous decision and will ultimately lead to additional costs for the delivery of a new hospital.
“I will continue to lead calls for the funding for a new eye hospital. What we desperately need is to see some leadership from SNP Ministers.”
The Chancellor continued her drive for a new approach to growth underpinned by stability, investment and reform yesterday (23 July), as she chaired the first Growth Mission Board with ministers across government.
Rachel Reeves views the forum as vital in driving forward the Growth Mission, enabling her to work with her colleagues across government to boost productivity, deliver good jobs, and make everyone better off.
The Chancellor is focused on driving forward the Growth Mission, including the development a modern Industrial Strategy, in partnership with business, to remove barriers and provide key sectors with the clarity and certainty they need to seize growth opportunities
She will also work with ministerial colleagues to develop the English Devolution bill to strengthen local leadership and give new powers to metro mayors and combined authorities to deliver growth across the country, alongside improving the infrastructure planning regime to unlock investment and boost grid connections.
Tuesday’s meeting follows the immediate steps the government has taken to boost growth including announcing a series of planning reforms to get Britain building; removing the de facto ban on onshore wind; establishing the National Wealth Fund; announcing a Pensions Review to unlock growth, boost investment and deliver savings for pensioners; launching Skills England; and announcing the white paper on getting Britain working again.
The Growth Mission is the first of five missions proposed by the Government, each of which focus on ambitious, long-term objectives for the country.
Chancellor of the Exchequer Rachel Reeves said: ““Growth is our number one mission and in our first few weeks this Government is taking the tough decisions to deliver on that agenda.
“From planning reform and supporting our future industries to strengthening local leadership and forging ahead with new infrastructure, our work has just begun to fix the foundations so we can rebuild Britain and make every part of the country better off.”
Voters are calling out for a significant boost to workers’ rights, post-election polling conducted for the TUC has found
Labour’s historic election win came off the back of UK voters overwhelmingly feeling that things were getting worse.
Whether it was the economy, the NHS, public services or personal finances, people felt things were going the wrong way
For 14 years a succession of Conservative governments put workers’ rights in reverse, making it harder for people to secure decent pay and conditions.
While the number of workers in insecure work soared to 4.1m, the Tories brought in punitive trade union laws, introduced tribunal fees and doubled the qualifying period for unfair dismissal protection.
This led to a huge 63% of the electorate feeling that the Conservative party was no longer on the side of working people.
What is coming over the horizon is Labour’s positive New Deal for working people, an ambitious set of reforms that would transform the lives of all working people.
A poll of 3,000 voters commissioned by the TUC shows huge backing across the political spectrum for improving protections at work and for the fundamental policies that underpin Labour’s New Deal for working people.
The polling reveals what voters thought about Labour’s key employment right policies:
Implementing a real living wage: Three-quarters (77%) of 2024 voters support Labour’s commitment to ensure that the national minimum wage rises to be a real living wage.
Strengthening unfair dismissal: Nearly 2 in 3 (64%) of all 2024 election voters support the day one right to protection from unfair dismissal.
Making sick pay a day 1 right: Nearly 7 in 10 voters (69%) back Labour’s plan to make statutory sick pay available from the first day of sickness.
Ban on fire and rehire: Two-thirds (66%) of voters support a ban on fire and rehire.
Ban on zero hours contracts: Nearly 7 in 10 (67%) voters support banning zero-hours contracts by offering all workers a contract that reflects their normal hours of work and compensation for cancelled shifts.
And there is majority support for collective rights too, including:
Union access to workplaces: 2024 voters by a margin over two to one (46% in favour, 19% against) support giving trade unions a right to access workplaces to tell workers about the benefits of joining a trade union.
Voters across the political spectrum want work to pay and to feel secure and respected in their jobs. Labour’s workers’ rights plans are hugely popular, and this poll should give ministers confidence to get on with delivering them in full.
Working people want a government that is on their side and that will improve the quality of work in this country. After 14 years of stagnating living standards, the UK needs to turn the page on our low-rights, low-pay economy that has allowed good employers to be undercut by the bad.
Trade union campaigns and ideas formed the bedrock of the New Deal for working people. Trade unions will be working flat out with the new government to see these commitments come to fruition.
The newly appointed Secretary of State for Northern Ireland Rt Hon Hilary Benn MP has reaffirmed the UK Government’s commitment to a prosperous, stable and peaceful Northern Ireland during his first visit since taking up the role.
The Secretary of State attended a Cabinet meeting in London yesterday before travelling to Hillsborough Castle, where he met the First Minister Michelle O’Neill, deputy First Minister Emma Little-Pengelly, and representatives from other Executive and Opposition parties.
On Friday evening following his appointment, Mr Benn also spoke to the Tánaiste Micheál Martin by telephone.
Mr Benn said: “I am deeply honoured to have been appointed to the role of Secretary of State.
“I wanted to get to work as quickly as possible and was therefore pleased to be able to hold these initial discussions with the First and deputy First Ministers and representatives from the other parties.
“My immediate priorities are to establish a new relationship between the UK Government and the Northern Ireland Executive as we work together to foster economic growth and prosperity, and to improve public services.
“I want to ensure that we have a system in place for addressing the legacy of the past in a way that wins support from victims’ families and that all communities can have confidence in, and which is compliant with human rights.”
Mr Benn said that the new UK Government was firmly committed to the Belfast Good Friday Agreement and to the principle of consent that is at its heart.
“We will work hard to deliver its vision for reconciliation, equality, respect for rights and parity of esteem.”
The Secretary of State said that his meeting with the First Minister and deputy First Minister was “very constructive”.
“I look forward to building on our relationship in the months ahead,” he said.
Addressing the relationship with Dublin, Mr Benn said: “As our nearest neighbour and co-guarantor of the Belfast Good Friday Agreement, our relationship with Ireland is of great importance.
“The new UK Government will work closely with the Irish Government to reset and strengthen the relationship between our two countries.”
First Minister Michelle O’Neill said: “Today I led our Sinn Féin delegation to meet with the new British Secretary of State, Hilary Benn.
“We strongly made the case for fair funding to invest in health, education and public services, the building of Casement Park to host Euro 2028, and the repealing of the Legacy Act.
“We also urged the British Government to respect our right to self-determination as support for constitutional change grows.
“People here are increasingly looking towards the future and to a new Ireland that ensures the best opportunities in life for everyone who calls our island home.”
New Prime Minister Keir Starmer is expected to visit Belfast tomorrow.
The trade union movement will work with Keir Starmer to deliver change
What an extraordinary moment in British politics (writes TUC General Secretary PAUL NOWAK). Labour back in power with a near-record majority. The Conservatives brutally ejected from office. A dozen cabinet members gone. A red wave in Scotland at the SNP’s expense. But while it’s easy to get carried away by the seismic nature of this election – we cannot afford to be distracted. We have a country to fix.
When I congratulated Keir Starmer this morning my message to him was clear. The trade union movement stands ready to work with the new government to repair and rebuild Britain – and to deliver the change working people desperately need. After 14 years of wretched Tory rule and chaos, I am not blind to the size of the task this incoming government faces.
The Conservatives have left behind a trail of destruction for all to see. Stagnant growth and wages. Rising in-work poverty. Broken public services. The charge sheet goes on and on. But despite all of the damage wrought, I am optimistic. After nearly a decade and a half in opposition, Labour can finally begin transforming the country – an urgent and necessary challenge that must be grasped with both hands. So where should we start?
First and foremost, we need to get our economy growing again. Unions and business have been crying out for years for a proper industrial strategy. The Green Prosperity Plan starts us on the road to economic recovery. And it will be a breath of fresh air to work with ministers who are actually serious about protecting and creating good jobs, and boosting skills and productivity.
But securing growth alone is not enough – we also need better living standards. Labour needs to act urgently to make work pay. We currently have over four million people who are trapped in jobs that offer little or no financial security. This is a national disgrace.
The UK’s long experiment with a low-wage, low-rights economy has been terrible for productivity and workers alike. Labour’s New Deal for Working People – delivered in full – will help end the Tories’ race to the bottom on employment standards.
A race to the bottom that has allowed good employers to be undercut by the bad, and scandals like the illegal sacking of 800 seafarers at P&O Ferries go unpunished. Labour’s plans will be a genuine gamechanger. Employment rights from day one. A ban on zero-hours contracts. An end to fire and rehire. New rights for unions to access the workplace. And the scrapping of anti-union legislation.
These are all part of a comprehensive new package of rights that will be good for workers, good for businesses and good for the UK economy. Inevitably there will be some siren voices in the business community who will seek to delay and water down this legislation. But it is vital Labour stays the course and ignores the doomsayers.
All the tired arguments that have been made against improved rights and protections at work echo those used against the minimum wage – now widely acknowledged to be one of the great policy successes of the last 25 years.
The naysayers were wrong then and they are wrong now. It is also vital that immediate work begins on repairing our crumbling public realm. At the heart of the pressures on our schools, hospitals, prisons and social care system is a huge workforce crisis. Across the NHS and social care alone there are nearly 300,000 staffing vacancies and in education the number of teaching vacancies has more than doubled in the past three years.
With morale at rock bottom – after more than a decade of Tory vandalism and neglect – Labour has the chance to signal a new direction of travel. We’ve already seen really encouraging commitments on scrapping tax breaks for private schools to fund new teachers in the state sector, and on closing non-dom loopholes to help bring down waiting lists. It’s no secret though that I want the party to go further and that we explore all funding options for rebuilding our public services.
The TUC has previously called for a national conversation on taxing wealth and I remain convinced that policies like equalising Capital Gains Tax with the taxes paid on earnings could bring in much-needed revenues. People voted in this election because they wanted real change – and Reform’s populist insurgence is a timely warning of what happens when governments fail to act.
And this question of delivery is the crux of the matter. After 14 years of national decline the country has finally got the Labour government it desperately needs. I know how ambitious Keir Starmer and his team are to improve working people’s lives, and the trade union movement wants to work with them.
Of course there will be moments of tension. That comes with being a critical friend. Our job is to speak up for working people and our members and to make sure their voices are heard at the heart of government – even when the message is difficult.
But the prospect of national renewal is real. Decent jobs, strong public services, a brighter, fairer future for all our children. The work will be hard and it starts today – but together we can realise a better future.
Chancellor of the Exchequer Rachel Reeves’ speech delivered to HM Treasury staff yesterday (Friday 5 July):
Thanks to all of you for being here. It is such an honour to be here today as the Chancellor of the Exchequer.
I know what a responsibility this brings – to guide our economy through uncertain times;
To restore stability in an age of insecurity;
To build prosperity that draws on the talents of working people.
The central mission of this new Government will be to restore economic growth.
During the election that was the Labour Party’s mission.
It is now our national mission.
And it will be for the Treasury to lead that mission.
Not growth for growth’s sake.
But growth for a purpose.
To make every part of our country better off.
To deliver on this mission, I want this to be the most pro-growth Treasury in our country’s history.
That will mean doing what the Treasury does best – building growth on a rock of economic stability.
But it also means taking on new challenges and new responsibilities.
To fix the foundations.
And to rebuild Britain;
To drive growth not just in a few pockets of our country but in every part of Britain.
To meet the challenges and seize the opportunities of the future – including our energy transition.
That is why this Treasury will play its full part in a new era of industrial strategy;
Working hand-in-glove with business, to make sure Britain is truly open to business once again.
And I know that in an uncertain world, if we can deliver the stability, investment and reform that the Prime Minister and I have set out, then Britain can reap the rewards.
But for families at home – I know that this is about more than just lines on a graph.
It is about tackling the causes of the cost of living crisis and making work pay.
Rebuilding our health service and our schools.
And driving opportunity in every part of Britain.
I will always hold in my minds eye the people across our country whose livelihoods, public services and aspirations will rise or fall based on the decisions we make here.
And I ask you to do the same – whether in Darlington, or Norwich, or in this building.
It is also a huge privilege to be the first ever female Chancellor of the Exchequer.
So every young woman and girl watching this:
Let today show that there should be no ceilings on your ambitions.
Your hopes,
or your dreams.
But there is a deeper responsibility too:
To women whose work is too often undervalued.
Who have borne the brunt of inequality.
And whose lives and interests are too often excluded from economic policymaking.
Together, we are going to change that.
Now, I have been a Member of Parliament for fourteen years now.
And if I’m honest, I’ve spent a lot of those years frustrated.
Talking, not doing.
Responding to constituents’ problems, but not being able to get to the root cause of those problems.
So as far as I’m concerned, there is no time to waste.
I will judge my time in office a success if I know that, at the end of it, there are working-class kids from ordinary backgrounds living richer lives, their horizons expanded, and their potential realised;
If we are leaving to the next generation a country that is more prosperous, with more good jobs paying decent wages, and a country better able to thrive in an uncertain world.
I know that a lot has been asked of you in the last few years – and I know, when the chips are down, staff at the Treasury have risen to the occasion, from furlough to energy price support.
I have often disagreed with the political choices that have been taken in this building.
But I have never been in any doubt about the talent, the dedication and the professionalism that Treasury staff have displayed.
I know too that at times it must have been frustrating for you, working under a weight of uncertainty, changes in direction, and without clarity of political purpose.
As Chancellor, I am determined to change that.
All our plans for government will rely on your hard work.
I’m under no illusion about the scale of the challenges we face.
The difficult choices that we will have to make.
I am not promising you that it will be easy.
There is a long road ahead.
It comes with a great weight of responsibility.
I embrace it.
It will demand hard work.
I am ready for it.
The British people have put their trust in this new government.
They have put their trust in us to run their economy.
