Tag: 2022

Jacob Rees-Mogg – 2022 Comments on the New Energy Prices Bill

The comments made by Jacob Rees-Mogg, the Secretary of State for Business, Energy and Industrial Strategy, on 11 October 2022.

Businesses and consumers across the UK should pay a fair price for energy. With prices spiralling as a result of Putin’s abhorrent invasion of Ukraine, the government is taking swift and decisive action.

We have been working with low-carbon generators to find a solution that will ensure consumers are not paying significantly more for electricity generated from renewables and nuclear.

That is why we have stepped in today with exceptional powers that will not only ensure vital support reaches households and businesses this winter but will transform the United Kingdom into a nation that offers secure, affordable and fairly-priced home-grown energy for all.

October 11, 2022
PRESS RELEASE : Government introduces new Energy Prices Bill to ensure vital support gets to British consumers this winter [October 2022]
The press release issued by the Department for Business, Energy and Industrial Strategy on 11 October 2022.
- UK government introduces landmark Energy Prices Bill, putting into law support to help households, businesses and others with energy costs this winter, while reducing inflation and supporting economic growth
- the Bill also includes powers to stop volatile and high gas prices dictating the cost of electricity produced by much cheaper renewables
- new ‘Cost-Plus-Revenue Limit’ will ensure consumers are not paying significantly more for electricity generated from renewables and nuclear, with the potential to save billions of pounds for British billpayers
Consumers will pay a fairer price for their electricity as the UK government introduces new emergency powers that will ensure consumers across the country receive help with their energy bills this winter.

Without the launch of the schemes, businesses and consumers had been left facing increasing financial turmoil, with energy bills estimated to increase to as high as £6,500 before the government stepped in. Recently announced support will see a typical household pay £2,500 a year for energy, while businesses will be paying less than half of predicted wholesale costs this winter.

The Energy Prices Bill, introduced in Parliament today (12 October 2022), provides the legislative footing needed to ensure that people and businesses across the UK receive support with their energy bills this winter through the Energy Price Guarantee for domestic consumers and Energy Bill Relief Scheme for businesses and non-domestic properties. This includes essential measures that enable the UK government to deliver comparable schemes in Northern Ireland and legislation that will require landlords and heat network operators to pass benefits through to tenants.

Low-carbon electricity generation from renewables and nuclear will be key to securing more low-cost homegrown energy and we are supporting continued investment in the sector, including through The Growth Plan.

Currently in the UK market, wholesale electricity prices are set by the most expensive form of generation – presently gas-fired generation, which are significantly higher in light of Russia’s appalling invasion of Ukraine and Putin’s subsequent weaponisation of gas supplies. Low-carbon electricity generators are therefore benefiting from abnormally high prices, while consumers are having to pay significantly more for energy generated from renewables and nuclear, even though they often cost less to produce.

To further protect consumers, new powers to help sever the link between high global gas prices and the cost of low-carbon electricity have also been introduced through a new temporary Cost-Plus Revenue Limit in England and Wales. This will reduce the impact of unprecedented wholesale prices on consumers and the taxpayer by introducing a revenue limit, curbing the amount generators can make.

The precise mechanics of the temporary Cost-Plus Revenue Limit will be subject to a consultation to be launched shortly. The government has been working closely with industry on the detail of the proposal, ahead of it coming into force from the start of 2023. It will ensure consumers pay a fair price for low carbon energy and has the potential to save billions of pounds for British billpayers, while allowing generators to cover their costs, plus receive an appropriate revenue.

Business and Energy Secretary, Jacob Rees-Mogg, said:

Businesses and consumers across the UK should pay a fair price for energy. With prices spiralling as a result of Putin’s abhorrent invasion of Ukraine, the government is taking swift and decisive action.

We have been working with low-carbon generators to find a solution that will ensure consumers are not paying significantly more for electricity generated from renewables and nuclear.

That is why we have stepped in today with exceptional powers that will not only ensure vital support reaches households and businesses this winter but will transform the United Kingdom into a nation that offers secure, affordable and fairly-priced home-grown energy for all.

Chancellor of the Exchequer, Kwasi Kwarteng, said:

Our actions will mean that energy bills for the typical household will be half what they would have been this winter.

We are protecting people, holding down inflation and preventing Putin’s energy price hike from causing long term harm to our economy by supporting businesses.

The Energy Prices Bill forms yet another decisive step taken by the UK government to reform the energy market, giving Britain back control of its own home-grown energy and breaking ties to the ever-increasing volatility and uncertainty of the global gas market.

Energy Prices Bill

The Bill will introduce powers to enable the following:

Energy Bill Relief Scheme

The Energy Bill Relief Scheme will enable the government to provide financial assistance on energy bills for all eligible non-domestic customers, including businesses, charities and public sector organisations. This took effect on 1 October 2022.

Energy Price Guarantee

The Energy Price Guarantee will ensure that a typical household in the United Kingdom pays around £2,500 a year on their energy bill, depending on their use, for the next 2 years, from 1 October 2022.

Alternative Fuel Payment

This scheme is intended to deliver a one-off payment of £100 to UK households who are not on the mains gas grid and therefore use alternative fuels, such as heating oil, to heat their homes. More detail on non-domestic consumers will be set out shortly.

Northern Ireland Energy Bills Support Scheme

Powers in the Bill will provide a robust basis to allow the government to make payments and deliver NI EBSS, which will provide £400 of support to households in Northern Ireland this winter. Powers will enable a similar delivery model to the Energy Bills Support Scheme in Great Britain, in respect of using the existing regulatory regime to enforce and provide assurance to the government on delivery.

Energy Bills Support Scheme Alternative Fund

This scheme is intended to provide the £400 of support for households across the UK that would otherwise miss out on the Energy Bills Support Scheme, as they do not have a domestic electricity contract. The Alternative Funding will be made available for this winter, with an announcement on this in due course. The Bill will provide powers to deliver the funding through local authorities.

Heat network support

Powers in the Bill will ensure that heat networks benefiting from the Energy Bill Relief Scheme pass through cost savings to their consumers. The Bill provides for the appointment of an Alternative Dispute Resolution body which will handle complaints raised by consumers against their heat network if it has not complied with passthrough requirements.

Pass-through requirements on intermediaries

This legislation is intended to ensure support from the Energy Price Guarantee, Energy Bill Support Scheme, or Energy Bill Relief Scheme, are received by the end user in cases where intermediaries procure energy on their behalf in accordance with the terms of regulation. For example, the legislation will require landlords to pass benefits to through tenants with further details of the requirements under this legislation to be set out shortly.

Cost-Plus Revenue Limit

The government is taking steps to break the link between abnormally high gas prices and how much revenue low-carbon electricity generators receive. This will allow consumers to pay a fair amount for their electricity, and ensure electricity generators are not unduly profiting from the energy crisis caused in part by Russia’s invasion of Ukraine. The government recognises the importance of dispatchable and baseload generation for security of supply. The low-carbon technologies that can deliver these types of power do tend to have higher input costs (such as biomass and nuclear) and this is being considered as part of the detailed policy design.

Contracts for Difference

We are also legislating for powers that would allow us to consider running a voluntary Contracts for Difference process for existing generators to take place in 2023. A voluntary contract would grant generators longer-term revenue certainty and safeguard consumers from further price rises.
October 11, 2022
PRESS RELEASE : COP26 President Alok Sharma to attend IMF and World Bank Annual Meetings [October 2022]

The press release issued by the Cabinet Office on 11 October 2022.

The COP26 President will travel to Washington, D.C. this week to push for greater action on climate finance progress ahead of COP27

Mr. Sharma will urge multilateral institutions to extend their support for developing countries as they accelerate the move towards clean energy and away from coal

After the Annual Meetings the COP President will travel to Seattle to attend the Breakthrough Energy Summit and meet with US business leaders

COP26 President Alok Sharma will travel to Washington, D.C. from 12 to 15 October, to attend the International Monetary Fund (IMF) and World Bank Annual Meetings.

With just weeks to go until COP27, Mr. Sharma will meet with senior representatives from multilateral development banks, finance ministers, private finance and civil society to urge them to turn climate finance promises made in the historic Glasgow Climate Pact into action. This will include pushing for further support from these institutions on Just Energy Transition Partnerships (JETPs), the country-led initiative that aims to support developing countries’ transition away from coal or other fossil fuels to renewable energy.

While there, the COP26 President will also deliver a major keynote address at the Wilson Center think-tank, outlining key climate finance priorities ahead of COP27 in Sharm El-Sheikh, Egypt, next month.

In the speech, which will be his last in the role as COP President, Mr. Sharma will also address how the international system can support faster action in line with the Paris Agreement and Glasgow Climate Pact – as agreed by nearly 200 countries at COP26 last year. The speech will be available to watch online via the Wilson Center website at 3pm BST / 10am EDT on Friday, 14 October.

Alok Sharma, COP26 President, said:

“With less than a month to go until COP27, this week’s Annual Meetings in Washington D.C. are a critical moment for multilateral institutions to refocus their support for the many developing countries that are facing the devastating impacts of climate change.

“Against the backdrop of ongoing global energy security challenges, organisations like the IMF and World Bank must do all they can to help developing countries move further and faster in tackling climate change, to support resilient economies powered by clean, renewable energy systems.

“This includes extending support for Just Energy Transition Partnerships (JETPs), country-led partnerships supported by G7 nations that will help decarbonise economies and accelerate the transition from fossil fuels to clean, renewable energy.”

During the Annual Meetings, the COP President will attend a roundtable on financing the energy transition with ministers from developing countries, address the Coalition of Finance Ministers for Climate Action on how climate finance can become more accessible, host a JETP roundtable with civil society and also attend a Sustainable Markets Initiative discussion, which will focus on how multilateral institutions are contributing to global mitigation efforts and key challenges on the road to COP27.

The COP26 President will then travel on to Seattle from 16 to 18 October, where he will attend the Breakthrough Energy Summit, a coalition of private investors established by Bill Gates in 2015, to highlight the importance of energy innovation opportunities in emerging markets and best practices for unlocking and accelerating deployment of clean technologies.

During his time in Seattle, Mr. Sharma will meet with business leaders from the tech and transport sectors to discuss the latest progress on their climate goals in line with the Glasgow Climate Pact. Mr. Sharma will also meet with officials, academic institutions, businesses and tribal leaders involved in tackling Washington State’s recent wildfires to hear how the State is managing adaptation and resilience in the wake of the worsening effects of climate change.

October 11, 2022
Richard Newby – 2022 Speech on the Growth Plan (Baron Newby)

The speech made by Richard Newby, Baron Newby, in the House of Lords on 10 October 2022.

My Lords, when Liz Truss was elected as Conservative Party leader a mere five weeks ago, she and her new Government faced two separate economic challenges. The first was how to respond to the dramatic impending rise in gas prices, due on 1 October. The second was how to put the country on a path to sustainable growth. The Government’s response to these challenges was to introduce the measures announced by the Chancellor on 23 September, which attempted to deal with them both in one fell swoop.

On the first, dealing with the impending energy price rises, the Government have introduced an extensive package covering both individual households and businesses. In our view, it still suffers from a number of flaws. For example, we believe that the freeze should have been applied to April rather than October prices. The business support lasts only six months, leaving companies unsure what happens after that. Most importantly, it is not accompanied by a windfall tax on the energy producers, which could have helped mitigate the very substantial costs. However, at least the measures are timely, offer real relief and will protect the vast majority of people and businesses from at least some of these otherwise unbearable costs.

All the remaining measures announced on 23 September seek to deal with the second challenge of promoting growth. Sadly, far from doing so, they have already precipitated an economic crisis, will leave many people worse off and will fail in their fundamental purpose. For a start, there was literally no reason to introduce these changes so precipitately, with no attempt to quantify their consequences and no explanation of how they were to be funded. As a result, the markets were alarmed, the Bank of England had to step in to prevent a pension fund collapse and interest rates, including mortgage rates, rose. Before looking at the broader consequences for the economy and the Government’s reputation, let us look at the individual measures announced on 23 September and see how they might help achieve the Government’s aim of promoting growth.

I start with the £18 billion cut in corporation tax. In reality, this will do little or nothing to promote growth. If you look at corporation tax rates across the developed world, there is no correlation between them and long-term economic growth. Many of our European competitors have higher corporation tax rates and higher long-term growth. The business community itself has not been making the case that lower corporation tax rates in themselves mean higher investment and therefore growth.

The best argument for the cuts to income tax and national insurance—other than a purely populist political one—is that they might help stave off the worst of a recession because they will help prop up consumer spending in the short term. That may be true, but it has nothing to do with promoting underlying growth. The reason is that, with almost full employment and in the absence of larger-scale immigration, the only way in which growth can be increased over the medium and long term is by improving productivity. Achieving this requires sustained increases in investment in people and equipment. Cuts in income tax and national insurance will simply not achieve this.

As for the cut in stamp duty, this may mitigate the costs of buying a house, but it pales into insignificance compared to the increased mortgage costs which the Government’s actions have brought about. These so-far unfunded tax cuts will do absolutely nothing to resolve the UK’s problem with long-term growth.

But what about the supply-side measures which the Government plan to introduce? As with the ill-fated proposed 45% tax rate cut, some simply appear to benefit those who need help least—for example, the proposal to end the cap on bankers’ bonuses. Some, such as the proposed investment zones, are highly unlikely to increase aggregate investment in the economy as a whole. Some, such as the intention to speed up planning and infrastructure projects, are so vague that they are, frankly, meaningless. Some, such as the proposals to curb the right to strike and to strengthen universal credit sanctions, simply look mean and vindictive. Whatever they are, they will not lead to a spurt in growth.

So, if the Government’s package of tax and supply side measures look doomed to fail the growth test, what about their other consequences? Three in particular stand out. First, the manner in which they have been announced has completely spooked the markets, particularly the mortgage market. The number of mortgage products fell by over 40% because mortgage providers lost any sense of the future trajectory of interest rates. Those mortgages which are still available now cost on average about 1% more than before the Chancellor’s announcement. This is entirely down to the Government’s own Budget, before any further increases in interest rates by the Bank of England.

Secondly, it is now clear that the Government plan to cut public expenditure to pay for their tax cuts. We do not yet know where these cuts will fall, but we do know that the impact of inflation on departments’ budgets already means that they will struggle to maintain services while providing fair wage increases. The idea which the hapless Chief Secretary seems to believe, that there is substantial fat to be cut, is laughably false. We wait with trepidation for a Halloween horror story to see where the cuts are going to fall.

Thirdly, and most damaging to the Government, they have lost within days of their formation any shred of a reputation for economic competence. They are pursuing fiscal policies completely at odds with the monetary policy that the Bank of England is legally bound to pursue. They have bet the farm on a pro-growth strategy which no respectable economist believes will work, and they have already been forced into U-turns caused by a lack of support for their policies, even among their own MPs.

Against all this, the Prime Minister simply labels all her critics as “anti-growth”. This is risibly untrue, so let me suggest as a starter a five-point plan which might actually do something to improve Britain’s growth prospects. First, given that the Government are in a big, big hole, they should stop digging—stop pushing ideological policies which will not promote growth but will undermine their credibility as a serious Government. There are many to choose from, but I suggest that they should stop their attacks on the healthier food agenda. Supporting buy-one-get-one-free offers clearly makes the Prime Minister feel better but will do serious damage to the fight against obesity, and the illness and therefore lack of productivity that ensue. The Government should think again.

Secondly, the Government should start rebuilding economic ties to the EU. We know that Brexit will reduce GDP consistently unless things change. They should start by sorting out the Northern Ireland protocol but then move towards aligning with the single market. This will do more for growth than any number of third-order supply-side gimmicks.

Thirdly, instead of prioritising fracking and North Sea oil permits, the Government should put their weight behind a green industrial revolution, including a massive programme of housing insulation. This will create jobs and growth and help mitigate the high energy costs now facing millions of households.

Fourthly, the Government should invest in skills. Having a more productive workforce is the only way we can increase productivity and therefore growth, and spending more on apprenticeships, FE and lifetime learning is the only way we can achieve this.

Fifthly, the Government should create a climate which encourages business investment. Investment in the UK has lagged that of France, Germany and the US for years. This is why they are much more productive and why household incomes there are now so much higher than here in the UK. Stability and consistency would improve the investment climate, but so too would a new industrial strategy which recognised where Britain’s economic strengths are and showed how the Government planned to support them.

Setting the UK on a path to sustainable growth will not be easy, but it is possible. What is not possible is to do so with a Government who are driven by a simplistic, failed ideology, who have failed even the most basic tests of competence, and who the British people rightly think have to go.

October 11, 2022
Angela Smith – 2022 Speech on the Growth Plan (Baroness Smith of Basildon)

The speech made by Angela Smith, Baroness Smith of Basildon, in the House of Lords on 10 October 2022.

My Lords, first, I welcome the noble Baroness back to the Front Benches. Many of us were surprised when she was departed from them previously, and I welcome her to her new job. I note that her official title is Minister of State for Government Efficiency. I wish her well; she has never been one to shy away from a challenge, and she has a challenge in that one.

We look forward very much to the maiden speech of the noble Baroness, Lady Gohir. I am convinced that she will make an important contribution to the work of the House, so I look forward to hearing her and welcome her to this place. It is with slightly less enthusiasm that I look forward to the valedictory speech of the right reverend Prelate. Personally and from these Benches, let me say to him that he has been an asset to the House. We have greatly welcomed his wisdom and wise counsel, and we are going to miss him. I thank him for all he has done and look forward to his speech with some regrets.

We last met in this Chamber to pay tribute to and remember Her late Majesty Queen Elizabeth. We did so in a spirit of unity and common purpose. With a new monarch and a new Prime Minister, it is a time of significant change. At a time when we most needed stability, instead we had the most extraordinary non-Budget Budget that this country has seen for at least a generation. I listened with interest to the Minister’s speech, and I was surprised that there was no acknowledgement of the turmoil that this country has found itself in in the last couple of weeks since that Statement.

On Friday 23 September, after this House had risen for the Conference Recess, the new Chancellor made his first Statement to House of Commons—and what a Statement it was. Then, and in the days that followed, Liz Truss and Kwasi Kwarteng set out the package, which ended any pretence of fiscal responsibility or levelling up—or indeed of understanding the pressures on families, individuals and businesses across the UK. The response of experts and the markets was one of incredulity. How could this happen? At a time of high interest rates, the great government plan was to borrow more to pay for tax cuts that would benefit those who had more than anyone else in the first place. There was no absolute cap on energy bills but instead a cap on the unit price, which will see some families still paying well over the £2,500 promised under Labour’s alternative plans. I see that the noble Lord, Lord Callanan, is responding, and I hope that he will address this in his response.

Following the non-Budget Budget, the pound fell, the markets reacted to the lack of confidence in the Government, and the Bank of England had to step in with a £65 billion commitment to prop up the economy. It clearly did not help confidence in the UK that the Chancellor refused to publish information from the Office for Budget Responsibility. Given the unprecedented market reaction, the Prime Minister should have heeded calls from across the political spectrum to return to Parliament.

A strong or weak economy is not an academic exercise. It is not just a way to gamble on the markets to see whether you can make any money—it is about people’s lives. When mortgage offers were withdrawn, hundreds of products were pulled only to be replaced with fewer and more expensive alternatives, and some saw their opportunity of owning their own home or keeping the home that they were in disappear overnight. That will also force up rents. The Prime Minister gave her so-called reassurances that they had borrowed money to try to help with energy costs, but so much of that will be swallowed up by increased housing costs, either in mortgage payments or rents. There was a real need and opportunity for the Government to respond and for ministerial accountability to Parliament. Instead, we had over a week of unhelpful distractions, mixed messages and Cabinet infighting.

The media were briefed that the November “fiscal event” was being brought forward to October, but nobody thought at the time to tell the Chancellor. We now know that it will be the very last day of October. Two Cabinet Ministers joined Back-Bench colleagues in mounting what has been called a “pre-bellion” on the issue of uprating universal credit benefits by inflation. As the Prime Minister turned to BBC local radio to put her case, her lack of empathy as she appeared to be reading out “lines to take” on fuel bills cut little ice with listeners.

This chaos has come at the worst possible time. Household budgets are under enormous pressure, hitting almost everyone with high petrol prices, spiralling food costs, supply issues and ever-increasing interest rates. Even those who previously felt relatively secure are now nervous for the future. The help with fuel bills will still leave many families paying far more than £2,500.

It is an expensive package, funded by borrowing, so I fail to understand why—despite Labour’s pleas and some from the Government’s own side as well, and the welcome intervention of Shell’s CEO—the Prime Minister and the Chancellor are so set against taxing the billions of pounds in excess profits, preferring instead costly extra borrowing. It does not make economic sense. The mini-Budget damaged both the economy and confidence in the Government—

Lord Forsyth of Drumlean (Con)

Will the noble Baroness give way?

Baroness Smith of Basildon (Lab)

It is unusual, but to the noble Lord I will.

Lord Forsyth of Drumlean (Con)

These are unusual times. Does the noble Baroness accept that the Government’s package of support for people and businesses with their energy bills is far in excess of what the Labour Party was promising? Does she also accept that her proposed tax on the energy companies would have raised a trifling £8 billion compared with the costs of the scheme that has been put forward by the Government? Will she not welcome that?

Baroness Smith of Basildon (Lab)

I would welcome a fairer way. The key question is: who pays? The Government had a choice. They could have said that future taxpayers will pay—at a time when borrowing is higher than it has been for years—or they could have said that the energy companies should make a contribution to this. The £8 billion the noble Lord cites is wrong; it is at least £14 billion. I do not dispute the “generosity”—I use inverted commas—of the Government; this is an expensive package. The problem is that it will cost us for years to come and still means that many households will be paying over £2,500, which they cannot afford. The noble Lord makes a brave defence of the Government but it is not one that I can support.

The Prime Minister, when talking about the economy, spoke about having an

“iron grip on the nation’s finances”,

but you do not do that by having a spending spree one day and then slashing your tax base the next. My noble friend Lord Tunnicliffe will talk about the gilt market in his closing remarks later, but the Government’s actions have raised the cost of borrowing at the worst possible time, leaving a bill for future generations. Yet Ministers want us to believe that this crisis is not of their making and that, somehow, the decisions taken in Downing Street are not responsible for these economic problems.

There is no doubt that international issues have a domestic impact. If proof were ever needed that we are globally interconnected, the war in Ukraine is that proof. However, as with both Brexit and the Covid pandemic, it is not just about the issue but about how Governments respond at the time, as well as the long-term resilience planning to prepare for such events.

The Prime Minister insists that this is all caused solely by the “global economic crisis” caused by Putin’s invasion of Ukraine. This House knows that supporting Ukraine involves sacrifices. We stand alongside the Ukrainian people and will continue to do so. Of course that conflict brings serious economic impacts, but it is also just plain wrong to insist that recent events are a direct result of it. Did the pound crash against the dollar because of the events in Ukraine? Did the war make UK gilt prices go up? Did Putin force banks to pull hundreds of mortgage deals from the market? No, no, no. These were immediate, emphatic and damning responses to the Government’s announcement.

When we look at the timeline of what happened and when, we see that the market movements perfectly tracked announcements and media appearances by the Prime Minister and the Chancellor, including last week’s speeches in Birmingham. The Chancellor claimed that the economic chaos was partly the result of the additional “pressure” he experienced following the death of the Queen, as his Statement came just

“four days after the funeral”.

But he chose that date. I am sure that I was not alone in my exasperation at the economic turmoil being explained away as policies being badly communicated. That was not the issue. They were the wrong policies, and no amount of communication could disguise that.

Some excuses were more imaginative than others. Though not a member of the Government, the noble Lord, Lord Hannan—he smiles at me; he probably knows what is coming next—tried his best to help. I look forward to his contribution later. He remarked that the real reason for the pound’s crash was really quite simple. It was not because of decisions taken in Downing Street. The pound’s value collapsed because “the markets are terrified” of Keir Starmer. This time, the party opposite was not blaming the last Labour Government; it was blaming the next one. It might be helpful to reflect that, on average, the last Labour Government achieved higher annual growth than we have seen over the past 12 years of a Conservative Government.

The Prime Minister and Chancellor now claim to have listened. They say they have listened to the markets, to the public and to their own MPs. After nine days of digging in on the 45p income tax rate, Liz Truss finally announced, in a massive U-turn during the Conservative Party conference, that it would remain. However, most of the mini-budget still stands—but it is only Monday. It is currently still a package aimed at those in the top 5% of income, despite mainstream economic analysis and experience having shown time and time again that trickle-down economics simply does not work. The Government would do well to follow the advice of the noble and learned Lord, Lord Clarke of Nottingham, and others, and just start again. Or, if the Chancellor is convinced that he has, to borrow a phrase from Boris Johnson, “got the big calls right”, he should publish the OBR’s economic forecast. He should publish it today and in full.

The OBR was set up by a Conservative Chancellor and its forecasts have become a key part of UK fiscal events. Mr Kwarteng says he recognises the OBR’s independence, but the facts speak for themselves: he muzzled it when it was most needed. And it is not just the OBR in the firing line. The former Bank of England Governor, Mark Carney, has accused Liz Truss of “undercutting” the country’s economic institutions and

“working at some cross purposes with the Bank”.

Of course, some have argued that this sorry saga might have been avoided had the Prime Minister not dismissed the Treasury’s Permanent Secretary in one of her first acts in office. Getting rid of a senior civil servant for personal or political reasons is a significant departure from our traditions of how to govern. As we see in this House—perhaps the noble Lord, Lord Forsyth, and I are a good example—we know how to disagree agreeably. Instead, in the words of the noble Lord, Lord Macpherson of Earls Court, the Prime Minister chose to fire the

“only official with serious experience of crisis management and then precipitate a crisis a fortnight later.”

I hope that the Government are not just going to listen to, and surround themselves with, those who will always agree, whatever the issue. That is no way to run an economy and no way to run a country.

A strong economy is one in which a Government play their full part in supporting and unleashing the potential for growth. That sits alongside strong public services that enhance our social fabric and our economy. A first-rate health service and the best training and educational opportunities are not just items to be ticked off in the “Nice to have” category; they are essential for a modern economy. An incoming Labour Government will implement a genuine plan for growth, creating the biggest partnerships between businesses, government and communities that this country has ever seen. We will ensure greater fairness in the tax system and, by making us a global leader in green technologies, we will secure investment and resilience in our energy markets.

It is not just in the green economy where we have to be ambitious. We will work together across manufacturing and service industries to find solutions to the ongoing skills crisis, to which this Government have no answer. We will also change how politics is conducted in this country, taking responsibility for our decisions and the consequences they have for people across the nation—because when we look at everything said by the Prime Minister, the Chancellor and the rest of the Cabinet last week, one word is conspicuous by its absence, and that word is “sorry.”

October 11, 2022
Lucy Neville-Rolfe – 2022 Speech on the Growth Plan (Baroness Neville-Rolfe)

The speech made by Lucy Neville-Rolfe, Baroness Neville-Rolfe, in the House of Lords on 10 October 2022.

My Lords, I start by welcoming the noble Baroness, Lady Gohir, to today’s debate. I very much look forward to hearing her maiden speech and to her future contributions. On a sad note, we are also hearing the valedictory speech from the right reverend Prelate the Bishop of Birmingham, who has provided so many mature, sensible and considered contributions to the House over the past 12 years.

It is a great privilege to open the debate on the economy. When the new Prime Minister was forming her Administration, I was honoured to be offered the post of Minister of State in the Cabinet Office, in effect replacing my noble friend Lord True, now the Leader of the House. I take this opportunity to express my admiration for his brilliant eulogy to Her late Majesty. I was briefed that most Cabinet Office work was, in the main, worthy, so I anticipated a future dealing with the humdrum detail of government work—below the radar, as it were. In the event—it is sometimes surprising how things turn out—I first come before your Lordships to outline the Government’s economic growth plan.

As the Prime Minister has made abundantly clear, growth is the core economic mission of this Government. With economic growth, everyone benefits. We cannot have, say, a strong NHS, good schools or effective defence without it. We have three priorities: cutting taxes to boost growth, reforming the supply side of the economy and maintaining a responsible approach to the public finances.

I will come to the details of the plan shortly, but first I will touch briefly on another important recent development that is an integral part of our whole economic package: our action on energy bills. The Prime Minister rightly took action on this crisis facing households within 48 hours of taking office. The energy price guarantee will limit the unit price that consumers pay for electricity and gas, so that for the next two years the typical annual household bill will be £2,500, in contrast to the £6,000 or so that some predicted. Millions of the most vulnerable households will also receive additional payments.

We are also helping businesses. The energy bill relief scheme, providing an equivalent guarantee to that for households, will reduce gas and electricity prices for all UK businesses, charities and the public sector, especially schools and hospitals. Finally, to support the market, we have announced the energy markets financing scheme, providing a 100% guarantee for commercial banks to offer emergency liquidity to energy firms in otherwise sound financial health that face high margin calls.

While early estimates suggested that our package could have cost as much as £160 billion, more recent estimates are much lower. The key point is that we are giving relief and confidence to a large section of the British people, something that will particularly matter to those at the lower end of the scale. Significantly, the measures have been designed to provide an incentive for fuel economy. There is a reduction in cost per unit, not an overall cap, so that it encourages people and businesses to minimise their energy use. More importantly, without this package it would have been a very brutal winter for millions of households and small businesses.

Our growth plan sets out our vision for a simpler, lower-tax economy. This Government believe that high taxes reduce the incentive to work, encourage tax evasion, deter investment and hinder enterprise. Hence we are cutting the basic rate of income tax to 19p in April 2023—that is, one year early—which will benefit virtually all taxpayers.

Noble Lords will have heard that the abolition of the 45% band will no longer go ahead. The Prime Minister and Chancellor have accepted that it had become a distraction from our growth plan. I point out, however, that 40% was the top rate from the date of the Thatcher reforms and all through the Major, Blair, and most of the Brown eras. Also, the top rate is 40% in the Republic of Ireland and 39% in Norway.

International competitiveness must remain a vital objective, so next year’s planned increase in corporation tax will be cancelled. That means that the rate will remain at 19%, the lowest in the G20, enhancing the attractiveness of the UK as a place to do business. We are also confirming that the annual investment allowance will be set permanently at £1 million, and we have introduced legislation to cancel the health and social care levy. Reversing the levy delivers a tax cut for 28 million people, worth on average £330 every year, and a tax cut for nearly a million businesses.

Planned increases in the duty rates for beer, cider, wine and spirits will also be cancelled. In addition, we want to help families aspiring to buy a home of their own. We have therefore proposed a series of reductions in the thresholds for stamp duty land tax, which will assist buyers, particularly first-time buyers.

Simplification is close to my heart. We are embedding tax simplification into the institutions of government and repealing recent changes to off-payroll working rules—the infamous IR35—which added complexity and cost for many businesses that engage contractors. I know that this will be particularly welcome to our Economic Affairs Committee.

We are introducing a VAT-free shopping scheme. We want our high streets, airports, ports and shopping centres to feel the economic benefit of the millions of tourists who visit our wonderful country each year. While the Government believe in lowering taxes wherever possible, achieving growth will take more than that. With more vacancies than unemployed people to fill them, we need to encourage people to join the labour market—getting more people into work by, for example, incentivising those claiming universal credit to secure more or better-paid work. We will also legislate to ensure that strikes can be called only once negotiations have genuinely broken down.

To drive growth, we need new sources of capital investment. We want to unlock billions of pounds to help British businesses—for example, in developing new technologies that can scale up. Hence we will reform the pensions cap and launch the long-term investment for technology and science fund.

We need global banks to create jobs here, invest here and pay their taxes here in London, not in Paris or New York, so we are scrapping the cap on bankers’ bonuses. To reaffirm the UK’s status as the world’s financial services centre, we will set out a package of regulatory reforms in the coming months.

We must also see our way to simplifying regulation and cutting red tape in key areas such as planning and procurement. The weight of complexity and compliance is absorbing precious resources and holding back productivity. I know from my time with the other noble Lords on our Built Environment Committee how important housing and infrastructure are to our growth and success. Sadly, our planning system for major infrastructure is too slow and fragmented. For that reason, we are accelerating infrastructure delivery in energy, road, rail and gigabit-capable broadband, with new legislation that will unpick the complex patchwork of planning restrictions and EU-derived laws that constrain our growth, and we are getting the housing market moving by promoting the disposal of surplus public sector land for housing.

Finally, and of great significance across our country, we are creating a series of new investment zones. We will liberalise planning rules on agreed sites, releasing land and accelerating development. We are introducing an unprecedented set of tax and national insurance incentives for business to invest, build and create jobs in these zones.

The steps that the Government are taking add up to a radical and concerted effort to boost growth. In the coming months we will continue to work to bring forward further measures, with announcements on agriculture, business regulation, childcare, immigration and digital infrastructure.

Crucially, the Government understand that growth and sustainable finances must go hand in hand. I remind noble Lords that in 2021 the UK had the second lowest debt-to-GDP ratio of any G7 country, lower than Japan, Italy, France, Canada and the US. Even so, only continued fiscal discipline will provide the confidence and stability to underpin long-term growth.

Accordingly, as announced this morning, on 31 October —three weeks from now—the Chancellor will publish a medium-term fiscal plan setting out our responsible fiscal approach and how we plan to reduce debt as a percentage of GDP over the medium term. Further, he has asked the OBR to set out a full economic and fiscal forecast soon, and he continues to work closely with the Governor of the Bank of England.

In conclusion, I passionately want—we all want—our country to succeed and to live up to our past achievements. To achieve that, economic success is essential. To that end, we must get the economy growing again. We must do so while still dealing with the effects of the Covid pandemic and its impact on our public services. We are also rightly engaged in giving significant help to Ukraine—obviously at a cost. Success will not be easy.

Today we are here to listen to views from across the House and look forward to engaging in a constructive debate—but, however one looks at matters, achieving economic growth is vital if we are to achieve our ambitions. We need to do things differently and better. That is what the growth plan is all about.

October 11, 2022
PRESS RELEASE : Unanimous agreement by Council puts care-experienced people at forefront of policies and decision-making in Manchester [October 2022]

The press release issued by Manchester City Council on 5 October 2022.

Councillors in Manchester have unanimously agreed to put young people who are in care and care-experienced people of all ages at the forefront of policies and decision-making in the city.

Their agreement gives formal recognition to ‘young people in care’ and ‘care experienced people’ as additional characteristics to be considered in all equality impact assessments carried out during the decision-making and policy-making process.

It means that all future decisions and policies made by the Council will now have to demonstrate that the needs of these two groups have been properly considered and thought through, along with any impact on them.

A Notice of Motion on the issue to today’s meeting of the full Council was agreed without exception by all councillors and is expected to have a real tangible impact both on young people in care, and adults of all ages who have been in care in the past.

Councillors also want to ensure that the impact on both groups is considered from the start when services are commissioned – in the same way as other protected and additional characteristics currently are – and to make extra effort to make sure that anyone who has care experience can access all of council services.

The Council has already taken several important steps over the last few years to support its cared-for children and care experienced young people better. This includes measures designed to help and support young people as they leave care and move into accommodation of their own and start looking for employment.

As a result, all care-leavers in Manchester are exempt from Council Tax up to the age of 25, are considered as a Band 1 priority on the Council’s housing register, and receive specialist support if they’re facing homelessness – without the use of B&B accommodation. As part of its commitment to better supporting young care leavers, the council also brought its Leaving Care service back in-house and invested in a new home for the service, with ‘trainer’ flats for care-leavers to get them used to holding down a tenancy after leaving care, and additional emergency accommodation on site.

At the same time the Council has increased its use of ‘staying put’ so that young people can stay on with foster carers if they want to, and also invested alongside housing partners to provide move on accommodation for those young people who need independence.

In terms of support into employment young care leavers are already guaranteed first access to apprenticeships with the local authority, but councillors now want to make it even easier for people of all ages who are care-experienced to gain employment at the Council and to develop into senior roles – with guaranteed interview schemes, mentoring and support, and reasonable adjustments made to support them.

The city council’s decision to recognise children in care and people of all ages who are care experienced in this way comes off the back of an independent national review of children’s social care that recommended looking at making care experience an additional characteristic.

Manchester is one of the first local authorities in the country – and the first in Greater Manchester – to take on board the national review’s recommendation and is well-ahead of any national policy on this, with the Government yet to respond to the national review which was commissioned by them.

Today’s Motion to the Council was seconded by Councillor Garry Bridges, Executive Member for Early Years, Children, and Young People. He said: “Young people in our care or who have left our care have the right to expect everything from a corporate parent that would be expected from any other responsible and good parent. Good parents continue to support, care for, and be ambitious for their children after they leave home and become independent, and this is what we are determined to do.

“We’re already very clear that our involvement with young people doesn’t just end when on paper they become adults at 18, and we’ve had a solid package of measures in place for some time to support our care-leavers up to the age of 25.

“What we will now be doing however is taking this a step further, by extending our support to ensure that people of all ages who have had care experience in the past don’t find themselves discriminated against in their lives as a result of decisions and policies made by the Council – whether that’s in relation to where they live, their job, or other opportunities available to them.

“We’re fully committed to doing everything we can to help everyone who is care-experienced – whatever their age – towards independence, and to support them in building a happy, healthy, successful future for themselves.

“The proposals we’ve agreed today will help ensure they have all the tools they need to do just that.”

October 11, 2022
PRESS RELEASE : Public consultation begins around the expansion of landlord licensing across Manchester [October 2022]
The press release issued by Manchester City Council on 7 October 2022.

The public and landlords are being asked their views on the proposals to expand Selective Licensing to eight new areas in five wards across the city.

There are already seven areas where Selective Licensing is in operation to help improve standards in the city’s large private rented sector to ensure the homes have a positive impact on an area.

The consultation around the new areas is now open and asks for feedback about schemes in the following areas:
- Cheetham – Esmond/Avondale – 87 PRS properties
- Cheetham: Heywood St/Cheetham Hill Rd – 251 PRS properties
- Cheetham: Flats Over Shops: Cheetham Hill Rd – 86 PRS properties
- Levenshulme: Matthews Lane – 170 PRS properties
- Longsight: The Royals – 74 PRS properties
- Moss Side & Whalley Range: Claremont Road / Great Western St – 346 PRS properties
- Rusholme: Birch Lane – 70 PRS properties
- Rusholme: Laindon/Dickenson – 38 PRS properties
The consultation is now open and residents are invited to take part.

This consultation will close on 14 December.If agreed, these designations could come into effect in spring 2023.

Selective Licensing allows Councils to introduce compulsory licences for all private rented properties in areas experiencing one or more of the following: significant and persistent problem caused by antisocial behaviour, poor property conditions, high levels of migration, high levels of deprivation, high levels of crime, low housing demand – or is likely to become such an area.

Councils are able to issue civil penalties of up to £30,000 or prosecute a landlord (with an unlimited fine) if they are not complying with the conditions of the licensing scheme. In extreme cases, Councils can also prevent the use of a property or assume control of a property.

Cllr Gavin White, Manchester City Council’s executive member for housing and development, said:

“We are seeing the real positive impact of selective licensing in the previously designated areas and it’s satisfying that through our licensing schemes and subsequent investigative work our officers are uncovering serious issues that otherwise would have gone unnoticed.

“We firmly believe that everyone living in Manchester deserves a decent home to live in and as our private rented sector grows, landlord licensing gives us a way of making sure that our residents can sleep easy knowing their property is safe.

“Of course, we know that the vast majority of landlords do manage their properties to a good standard – but for those that don’t, our message is that it’s unacceptable to take advantage of your tenants and we will do what we can to hold them to account. There is no place for rogue landlords in our city.”

Initial designation of Selective Licensing (2,279 PRS properties –
- Crumpsall – 13th March 2017 to 12th March 2022 (now closed)
- Moss Side – 8th Jan 2018 to 7th Jan 2023
- Moston – 23rd Apr 2018 to 22nd Apr 2023
- Old Moat – 23rd Apr 2018 to 22nd Apr 2023
Second designation of Selective Licensing (from Feb 2022)
- The Ladders – Gorton and Abbey Hey – 690 PRS properties
- Hyde Road – Gorton and Abbey Hey – 95 PRS properties
- Trinity – Harpurhey – 428 PRS properties
- Ben Street area – Clayton and Openshaw – 99 PRS properties
October 11, 2022
PRESS RELEASE : Manchester Homelessness Partnership relaunches on World Homelessness Day [October 2022]

The press release issued by Manchester City Council on 10 October 2022.

A new vision to end homelessness in all its forms in Manchester was the focus of the Manchester Homelessness Partnership (MHP) today, 10 October, World Homelessness Day.

At a relaunch event, the Partnership reflected on the work of the last seven years and restated its ambition to ending homelessness in the light of the huge challenges facing people in the current economic climate, and the ongoing energy and cost-of-living crisis.

The MHP has brought together the public and private sectors, the voluntary and charity sectors, alongside people who have experienced homelessness, sharing knowledge and expertise to work together in a city approach and with one voice to ensure that homelessness is rare, brief and one-off.

The work of the Action groups each tackle a key challenge that people experiencing homelessness regularly face, such as access to mental health support, emergency accommodation, employment, and migration and destitution. Genuine progress has been made including; securing additional funding to support young people, developing services for women with complex needs, supporting ex-offenders, and improving prevention work across the partnership.

One of the overarching key successes of working together has been a reduction of 50% in the numbers of people sleeping rough on the streets. This was the most pressing issue facing the city when the MHP started, and the collaborative efforts of working together to design services, the ability to secure funding, share resources has seen major changes to the support provided to people to help deal with issues that led to them sleeping rough in the first instance and wrap around support to stay off the streets.

Looking to the future, the Partnership aims to reinvigorate members, bring new partners on board and to get new Action Groups off the ground to deal with a changing emphasis in the homelessness landscape.

Although people sleeping rough continues to be an issue, the rising numbers of families/people presenting as homeless and the increasing number of people in temporary accommodation is the overriding challenge for the MHP. Work to improve outcomes for people at risk of homelessness and to prevent it happening in the first instance, along with a reduction in the time in temporary accommodation and ending the routine use of Bed & Breakfast accommodation, with a focus on quality and more affordable accommodation, will be a key focus for the homeless partnership in the future.

Councillor Joanna Midgley Deputy Leader, Manchester City Council said:

“We know that Manchester is stronger together. Our one city approach under the umbrella of the MHP to tackling homelessness means that we have a real chance to make a marked difference to our residents at one of the most vulnerable times in their lives. We can achieve more together as we have shown through the successes of the Partnership. However, we know that we are in challenging times so now is the right time to refocus and breathe new life into the work that we are all passionate about and work towards our aim to end homelessness together.

“The work taking place across the Partnership is reflected in our transformation programme in the homelessness service where we are placing greater emphasis on prevention, and to cut the number of people in temporary accommodation while continuing to reduce the number of people sleeping rough.”

Paul Newcombe, Manchester Homelessness Partner and Chief Executive of the Booth Centre said:

“With the cost-of-living crisis there has never been a more crucial time for us to come together to redouble our efforts, in making homelessness a thing of the past in Manchester.

“Working in partnership with people who have experienced homelessness, the MHP has improved standards of temporary accommodation across the city, has helped preserve peoples’ dignity through specialist projects, and improved choice by recognising individual need. Though some great work has been done, there is more ahead of us and I am confident we can get there together.

“This relaunch event provides the ideal opportunity for all like-minded services and citizens of Manchester to work together on the next steps, focusing on prevention and wider system and structural problems whilst meeting the significant needs of those in crises.

“The strength of Manchester’s homeless partnership is its wide and varied membership and how each partner can contribute, the relaunch both recognises this and builds on it for the future.”

To help people sleeping rough this winter there are a range of homelessness charities and organisations that work across Manchester which request specific items, volunteers or donations to fund their vital work including Real Change MCR, one of the Action Groups, a fund which supports 20+ charities in Manchester who can access the fund to help get people sleeping rough the things they need and ongoing support to start a new life away from the streets – to donate or find out more: www.realchangemcr.co.uk

For anyone needing help and advice this winter go to www.manchester.gov.uk/helpinghands

October 11, 2022
PRESS RELEASE : EU exports under Free Trade Agreements surpass €1 trillion [October 2022]

The press release issued by the European Commission on 11 October 2022.

EU trade deals mean increased exports, more stable economic relations and secure access to resources, a new report out today shows. EU exports to preferential partners for the first time surpassed €1 trillion in 2021, according to the Commission’s 2nd Annual Report on the Implementation and Enforcement of EU Trade Agreements. The Report also shows that EU efforts to break down trade barriers and support small businesses are helping EU exports and thus supporting European jobs.

Executive Vice-President and Commissioner for Trade, Valdis Dombrovskis, said: “This report provides welcome news in the face of the many economic and geostrategic challenges Europe faces. It highlights that our EU trade strategy is bearing fruit: we have removed more market access barriers and we have been able to better support our SMEs. Our focus now is on growing the EU’s broad network of trade agreements, which play a crucial role in helping our economies to grow at this time of economic uncertainty, securing privileged access to key markets for our exports, as well as access to key inputs and raw materials via diversified and resilient supply chains. Cooperation with reliable global partners matters more than ever in this changing geopolitical landscape.”

Making the most of trade agreements and their effective implementation is becoming increasingly important: for example, 44% of the EU’s trade took place under preferential trade agreements in 2021, with this expected to rise to 47.4% with the incorporation of agreements currently under adoption or ratification.

Exports from the EU to preferential partners (minus the UK) grew more (16%) than EU exports to all trading partners (13%) between 2020 and 2021.

EU trade agreements facilitate the imports of raw materials. For example, the EU currently imports 24% of its critical raw materials from preferential trading partners; this will rise to 46% once a free trade agreement with Australia, currently under negotiation, is in place. The modernisation of the agreement with Chile, the EU’s largest source of refined lithium (78%), is expected to further enhance reliable sourcing of this key resource and therefore also our green and digital transitions.

More barriers to trade resolved and progress on trade disputes

The EU’s exports in 2021 were €7.2 billion higher thanks to the removal of several trade barriers between 2015 and 2020.

In 2021, 39 trade barriers (six more than in 2020) were fully or partially removed, mostly through cooperative engagement with the trading partners concerned. Their elimination had an immediate positive effect on EU exporters, notably in the food sector as most of them concerned sanitary and phytosanitary measures. Canada, for example, accepted the EU harmonised poultry meat certificate following cooperation with the Commission, EU Member States and business. Longstanding engagement with South Korea resulted in a resumption of EU Member States’ exports of pork and poultry in September 2022, after Korea recognised the EU’s stringent regionalisation measures to control outbreaks of African swine fever. This cooperation has the potential to unlock over one billion euros of trade in the next years.

Substantial progress was also made in addressing tariff barriers with Egypt so as to avert the planned re-reintroduction of customs duties on cars imported from the EU. Similar progress was made in addressing non-tariff barriers hampering EU exports of cosmetics to Turkey.

Dispute settlement activity at the World Trade Organization (WTO) continued despite the paralysis of the latter’s Appellate Body. The Commission settled a dispute on wind energy with the UK and advanced with a number of other partners, notably with the US on aluminium and with Turkey on pharmaceuticals. Progress was also made on implementing the panel report in the EU’s bilateral dispute with South Korea on trade and labour, with three fundamental ILO Conventions entering into force in April 2022. The Commission also launched several new challenges of breaches of trade rules that harm EU economic interests, including against China and Egypt.

The EU Trade Barriers Regulation helped to solve differences with Mexico over tequila exports.

Background

This is the Commission’s second consolidated annual report on trade implementation and enforcement actions in 2021 and the first quarter of 2022. The report focusses on results achieved at the WTO and within the framework of the EU’s network of preferential trade agreements, promoting the agreements and removing or averting barriers, thus helping SMEs. The report also provides an update on a number of EU trade-related legislative instruments, notably the International Procurement Instrument (IPI) in force since 29 August or the Commission’s proposal for an Anti-Coercion Instrument (ACI).

Under the guidance of Executive Vice-President Valdis Dombrovskis, the Commission’s Chief Trade Enforcement Officer (CTEO) steers efforts on implementation and enforcement and reports to the European Parliament and the Council. The Annual Implementation and Enforcement Report is the main instrument for this reporting.

October 11, 2022