debates/debates2025-12-09c conversation_11
Source: hansard.parliament.uk (2025-12-09)

UK Parliament Hansard data: debates/debates2025-12-09c conversation_11

John Milne:What fiscal steps she is taking to help increase growth in rural areas. \p James Murray: Growth is the No. 1 mission of this Government, and we are committed to unlocking growth in every corner of this country. We have committed £2.7 billion per year to supporting sustainable farming, £2.3 billion of transport funding for places beyond city regions through the local transport grant, and more than £1.9 billion for gigabit broadband and 4G connectivity. That funding will help to tackle key blockers to growth in rural areas, unlocking the opportunities and benefits of growth for people right across the UK. \p John Milne: Later today I will chair a meeting of the all-party parliamentary group for rural business and the rural powerhouse, which focuses on generating rural growth. If we could push rural productivity closer to western European averages, it would fix the Government’s budgetary black hole all by itself. Will the Minister agree to set a measurable target for increasing rural productivity so that we can hold the Government to account on progress? \p James Murray: I welcome the hon. Gentleman drawing attention to the importance of productivity in the UK economy and our prospects for growth. As we know, the Office for Budget Responsibility reviewed the productivity impact of the previous Government’s record in office and found that the decisions they had taken over those 14 years meant that we had a £16 billion revenue hit to the public finances in the target year of the scorecard. We know that means that productivity has been downgraded as a result of decisions taken by the previous Government, but that gives us an opportunity—an opportunity to not be held back by the failures of the previous Government and to exceed those forecasts in future. \p Noah Law: Cornish communities and small and medium-sized enterprises in the supply chains of Cornwall’s most promising industries alike will have been delighted by the Chancellor’s announcement of the Kernow industrial growth fund in the recent Budget. Does the Chief Secretary to the Treasury agree that those funds should be invested prudently and sustainably and that the proceeds should be recouped for the Cornish public’s coffers so they can be invested in future projects? \p James Murray: My hon. Friend and many of his neighbouring MPs are excellent advocates for Cornwall and for the benefits that Cornwall can bring to growth, both in the region and right across the country. I know that, in the Budget, the Chancellor was keen to support investment in future industries in Cornwall. For the local council to deliver that, we will work closely with it to make sure that money is well spent. The key thing for us is to ensure that we enable people in Cornwall to be part of the economic growth mission of this Government. \p Lindsay Hoyle: I call the shadow Minister. \p Richard Fuller: As this is my last question before Christmas, I want to ask my counterpart a nice and constructive one. As he will know, rural residents and businesses already pay more on fuel than their urban counterparts and there are fewer public transport options. Can he advise what were the results of his assessment of the relative impact of the Budget’s introduction of road pricing on rural, compared with urban, areas? \p James Murray: I think the hon. Gentleman is referring to the changes we announced in the Budget in relation to electric vehicles and their contribution towards public finances. If people drive electric vehicles, wherever in the country they drive them, they benefit from investment in roads and maintenance alongside those of us who drive petrol cars, so it is important to ensure that we make the tax system fit for the future. This is a decision that people have talked about for many years. The hon. Gentleman’s party ducked it, alongside many other difficult decisions, but we are taking them head-on to ensure that we are fit and stable for the future.