Dame Harriett Baldwin questions the Chancellor on her failure to deliver the promised growth with no tax rises, when she has instead delivered no growth and record tax rises.

Dame Harriett Baldwin (West Worcestershire) (Con)

At the general election, the Chancellor promised growth and no increase in taxes, but as Chancellor, she has delivered no growth and a record increase in taxes. Now, the Office for Budget Responsibility is halving her growth forecast this year, with cumulatively half a percent less over the forecast period. More worryingly, it is forecasting a more than 1% reduction in productivity growth. Why does she think that is?

The Chancellor of the Exchequer (Rachel Reeves)

I have huge respect for the hon. Lady, but that question does not do her justice. As I said to the right hon. Member for Salisbury (John Glen) earlier, with the starting point of 2023, cumulative growth is lower. However, the general election did not take place in 2023—it took place in 2024. The economy is bigger at the end of this Parliament than the OBR forecast previously. Those are the numbers and the facts, and that is the difference that this Labour Government are making.

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