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Tag: Speeches

  • John Shipley – 2022 Speech on the Growth Plan (Baron Shipley)

    John Shipley – 2022 Speech on the Growth Plan (Baron Shipley)

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

    My Lords, two crucial matters relating to growth were missing in the Minister’s introductory speech. I was surprised, because she said we must get the economy growing again—I think the whole House would agree with that sentiment—but there was absolutely no admission of, first, the impact of Brexit, which, as a number of noble Lords have pointed out, has damaged the country’s growth prospects. Will the Government admit that the forecast by the National Institute of Economic and Social Research that the reduction in GDP as a consequence of Brexit will lie between 4% and 5.5% is correct? It clearly matters in relation to growth.

    The second issue, immigration, has been raised by a handful of noble Lords, but in particular my noble friend Lord Fox. Do the Government have an immigration policy? I ask because a major difference of opinion is clearly emerging between the Prime Minister and the Home Secretary. This matter needs to be explained. As the noble Lord, Lord Birt, said, there is a huge need for a bigger labour force in agriculture and a number of other industries, but what is the Government’s policy in relation to that, and to the number of students? I understand that we have record numbers of international students in the United Kingdom, which I welcome. This is a good thing, but they clearly count as part of the immigration numbers. Who is in charge of immigration policy? The problem we have is a problem now, while we address the skills deficit and the lack of productivity we have suffered from in recent years.

    I look forward to the Minister’s reply on both those matters, but I will say this on the growth plan: you do not drive growth by making poor people poorer, by making rich people richer or with huge unfunded tax cuts. You do not drive growth by losing the confidence of the markets through a mini-Budget that was not subject to independent scrutiny, leading to the pound crashing, interest rates rising and a pensions crisis requiring £65 billion of emergency intervention. You do not drive growth by cutting corporation tax when it is investment incentives that drive growth, not the exact level of corporation tax.

    The Prime Minister has called for “growth, growth, growth”, as though this is something only the libertarian right believes in, but good, clean, green growth is surely central to our future security. Yet achieving net zero seems of no interest or concern to the present Government. That is very worrying, because our country can grow as we deliver net zero.

    The mini-Budget has worsened the cost of living crisis, particularly for aspiring home owners. From next year, the average mortgage bill on a new deal will increase by £1,500 a year on a £200,000 mortgage. We face major cuts in public spending. The Government have not said where these might fall—maybe we will find out on 31 October. The Government must drive fairness. We have heard of the number of children who will be pushed into poverty if benefits do not rise with inflation.

    The Government have lots of proposals for which the detail is not yet clear. There are investment zones, very similar to enterprise zones, but what is the impact on those areas immediately outside them? Finally, what can the Government do to increase foreign direct investment, bearing in mind that it has increased 72% across the north of England in the last five years whereas in the rest of the country it has dropped?

  • Nicola Sturgeon – 2022 Comments on the Scottish Economy

    Nicola Sturgeon – 2022 Comments on the Scottish Economy

    The comments made by Nicola Sturgeon, the Scottish First Minister, on 17 October 2022.

    Scotland has an abundance of skilled people, innovative businesses, and natural resources. We have everything it takes to be just as successful as comparable independent European countries. Our analysis from the first paper in the Building a New Scotland series shows that a dynamic economy and social justice go hand in hand. Each makes the other stronger.

    Scotland’s economy is one of the best performing in the UK – however the UK economy, particularly post-Brexit, is now lagging behind many EU and international comparators. The UK economic model is demonstrably failing and increasingly holding Scotland back. Independence is now essential to build an economy that works for everyone. The paper we are publishing today will help people make a clear, informed choice about independence and how we can forge a path towards becoming a fairer, greener, wealthier country.

  • Brandon Lewis – 2022 Speech at the Approbation Ceremony for the New Lord Mayor of London

    Brandon Lewis – 2022 Speech at the Approbation Ceremony for the New Lord Mayor of London

    The speech made by Brandon Lewis, the Lord Chancellor and Secretary of State for Justice, at the Robing Room at the Palace of Westminster on 17 October 2022.

    My Lord Mayor Elect, I am commanded by His Majesty the King to express His Majesty’s express approval of the choice of the citizens of London in electing you to be Lord Mayor for the coming year.

    I think we’ll all be acutely aware that the last time those words were spoken, it was on Her Majesty Queen Elizabeth’s behalf – and that this will be the first time in living memory that this ceremony has referred to His Majesty the King.

    I am delighted to welcome you, Lord Mayor Elect, as well as your wife and soon to be Lady Mayoress, Felicity and other distinguished guests – to formally convey this message on His Majesty’s behalf.

    Let me also thank the Recorder of London and High Steward of Southwark for his address – and congratulate on him on being one of the few people in public life with a title as long and complicated as mine.

    I would also like to recognise the late Lord Mayor, Vincent Keaveny’s time in office. My late Lord Mayor, your year at Mansion House has been characterised by the theme of “People and Purpose”.

    You have visited countless countries to promote the City and UK legal services, received ministers and ambassadors from around the world, and spoken out on a range of issues – from social mobility to climate change and digital trade.

    As the first Irish citizen to be the Lord Mayor of London, it was no surprise to see you award the Freedom of the City to Ed Sheeran, who is himself of Irish descent. However, I don’t think there could be anything more British than seeing you lead 1,000 people driving sheep over London Bridge! Thank you again for all that you have done for the City of London.

    Now let me turn to the Lord Mayor Elect. Nicholas, I note that you were also born in Ireland – as they say, you wait 692 Lord Mayors for an Irishman and then two come along at once! Your career in the City has spanned more than four decades and your specialism – advising on mergers and acquisitions and raising capital – is indicative of the theme for your year in office: ‘Financing our Future’.

    The Lord Mayor is, of course, an ambassador for British business, financial and legal services – exporting all that is best of our great capital city at home and abroad. I know a focus for you will be how we use capital and expertise to boost our economy.

    My own job as Lord Chancellor is to promote English and Welsh law and the legal services that underpin our economy; and the Government has been very clear that economic growth is our first priority – so, our aims are very much aligned.

    London is, of course, at the heart of that world-beating legal services sector. The facts speak for themselves. Legal services contribute some 29 billion gross value added to our economy each year… Including billions in trade surplus and tax, as well as employing over 350,000 people directly.

    It isn’t just British businesses that benefit from the UK’s legal excellence.

    Companies from around the world carry out their business transactions here in the UK – because of our system’s reputation for probity and predictability. In fact, last year more than half of all commercial cases in the UK were brought by international businesses.

    Our legal services are undoubtedly one of our greatest exports – supporting the growth of global trade and investment not just in London but across the UK. That’s why, through our GREAT Legal Services campaign, we are doing even more to promote the English and Welsh law abroad… and, of course, London as the world’s pre-eminent centre for dispute resolution.

    It’s no coincidence that the largest international law firms in London have between 45% and 65% of their lawyers based outside of the country, demonstrating again that London is at the forefront of the way the world does business.

    But I know another focus for you, Lord Mayor Elect, will be competitiveness. As ever, we have competition – from the likes of the USA, Germany and Singapore among others. Competition is healthy but, particularly in challenging times – a world still recovering from the pandemic, and now rising to immense cost-of-living challenges – it’s crucial that we do everything to stay ahead of the game.

    So, ensuring our legal services continue to keep pace with the rest of the world… That they continue to innovate… and stay at the forefront of new ways of working… Couldn’t be more important. Similarly, we must also make sure that the law evolves to provide certainty on emerging technologies – providing certainty to the businesses that use them.

    As Lord Chancellor, I have pledged to do all I can to support legal innovation. I want the UK to be a global hub for lawtech, in the same way it has been with fintech. And I want to see our regulatory system continue to enable legal innovators to do what they do best – to innovate in the interests of better outcomes. It’s this combination of the two that will enable us to keep our world-leading status.

    My Lord Mayor Elect, I know you share our goals. The City has a long, successful history and the theme for your year in office – ‘Financing our Future’ – is all about promoting both resource and resilience. Your focus on getting capital and expertise in the right places will undoubtedly drive our economy and make us even more competitive.

    As we look ahead, I am convinced that together we can achieve so much for the City of London and for the UK more broadly. I’m looking forward to working in tandem with you to promote UK legal services and get the economy growing again. I think I might give the sheep drive a miss, however!

    I wish you and the future Lady Mayoress well for your year in office. Thank you.

  • Suella Braverman – 2022 Statement on Standards in Policing

    Suella Braverman – 2022 Statement on Standards in Policing

    The statement made by Suella Braverman, the Home Secretary, on 17 October 2022.

    The public rightly expects the highest standards of behaviour from police officers and the vast majority meet this expectation.

    But recently too many high-profile incidents and reports, especially in London, have damaged trust.

    This cannot continue.

    It’s unfair on the public and lets down other serving officers.

    Culture and standards in the police must improve.

    And where an officer has fallen seriously short of these expectations, demonstrable, public action must be taken.

    It’s absolutely vital that the police act to restore trust, return to common sense policing and treat the public and victims with the respect they deserve.

    I welcome the Met Police’s commitment to tackling the issues raised in the Baroness Casey report and hope this review will also help to address underlying concerns.

  • Keir Starmer – 2022 Comments on Crisis in Government

    Keir Starmer – 2022 Comments on Crisis in Government

    The comments made by Keir Starmer, the Leader of the Opposition, on 17 October 2022.

    The Prime Minister says she is in charge but the evidence this weekend suggests she is in office and not in power.

    Friday’s press conference completely failed to answer any of the questions the public has.

    Mortgages are rising and the cost of living crisis is being felt more acutely: the Conservative Government is currently the biggest threat to security and the finances of families across the country.

    That’s why the Prime Minister must come to Parliament on Monday, to explain what she plans to do to turn the situation around.

    If the Prime Minister won’t take questions from journalists, Liz Truss must at least take them from MPs representing the families whose livelihoods she’s putting at risk.

  • David Howell – 2022 Speech on the Growth Plan (Baron Howell of Guildford)

    David Howell – 2022 Speech on the Growth Plan (Baron Howell of Guildford)

    The speech made by David Howell, Baron Howell of Guildford, in the House of Lords on 10 October 2022.

    My Lords, I welcome my noble friend Lady Neville-Rolfe back to the Front Bench and I congratulate the noble Baroness, Lady Gohir, on her maiden speech. I am sorry that the right reverend Prelate the Bishop of Birmingham is leaving us.

    I begin by reminding your Lordships of something they probably do not need reminding of, but the media and many critics of the Government certainly do. After the two years of shutdown of the entire economy during Covid, plus now a war in Europe, after a huge swelling of public spending to cope with all that, and now the enormous energy cap finances and subsidies to stop the bleeding, it cannot be any surprise at all that we are in a very tight public finance situation.

    I cite the Office for National Statistics in saying that public sector debt, excluding public sector banks, at the end of last month was running at £2.428 trillion. That is a couple of hundred billion more than this time last year. That puts net public debt at 96.6% of GDP. That is a net level last seen here in the 1960s and just slightly lower than at the end of the Second World War, or some of the levels experienced in the 1930s. This is not the highest in the world by a long chalk. In fact, it is the 11th highest in Europe. I see no harm and some good in judicious tax cuts, especially those that would bring down the CPI, which has an enormous effect downwards on government finances, or those that actually increase revenue, such as lowering fuel tax or going back to the income tax top rates the country enjoyed under Tony Blair, Gordon Brown and Alistair Darling, which were quite happily accepted then but now seem to cause such agitation.

    But when all that is done, it is obvious that very big steps are now needed on the spending side. I beg Ministers to understand that the sane and effective way of bringing public finances into some sort of reputable balance is to identify and remove functions from the public sector, rather than slashing budgets all round by 10%. That is the classic Treasury style. The functions approach, which is questioning systematically the objectives of endless departmental activities and why they need to be in the state sector at all, was what we tried in the 1970s and later in the 1980s when I worked with John Hoskyns, as has been mentioned, which eventually led to taking most major industries out of state ownership, a healthy restoration of the balance between the state and the market, a real reduction in civil service manpower and a major contribution to growth.

    I take my last minute to argue on another point: to make the real case for levelling up. By that, I mean by universal capitalism, rather than trying to do it by universal income redistribution. Assets and savings in the bank are what every family in the land needs for their security and dignity. Measures to bring about a capital-owning democracy and a much fairer and more widespread form of social capitalism than we have now are what Governments of the last 50 years have shied away from again and again. Now is a much better time to approach this. This is the real levelling up—the capitalism working for everyone everywhere that Theresa May used to speak about. It is time for serious action on that front to make a real difference to people’s prosperity, certainty and prospects.

  • John Birt – 2022 Speech on the Growth Plan (Lord Birt)

    John Birt – 2022 Speech on the Growth Plan (Lord Birt)

    The speech made by John Birt, Lord Birt, in the House of Lords on 10 October 2022.

    Announcing unfunded tax cuts in the Government’s mini-Budget was all but universally condemned. There was no advance consultation, no leaning on expertise. The Permanent Secretary to the Treasury was summarily fired, the OBR’s offer of a forecast waved away. This appeared a back-of-the-envelope, “we know best” plan.

    The immediate consequences of course were dramatic. The Bank of England was selling UK debt one moment and buying it back the next. It had to mount a massive and costly rescue of pension funds. We experienced a rapid rise in interest rates, impacting both individuals and business. The estimates of the future level of government debt ballooned and the cost of financing that debt rose to 4% and is still rising.

    The impact of all these factors on redistribution will be chaotic; the full consequences ahead for public services are still unknown. The rationale, of course, was growth, and we all want more growth. The World Bank published a league table of growth rates for the G7 countries from 2008 to 2021. Is Britain in the relegation zone? No. In fact, we are near the top; we are third, behind the United States and Canada, and ahead of Germany, France and the rest—hardly a crisis.

    The US is clearly top of the tree with a 1.9% average annual growth rate versus our 1.1% over that period. So, yes, it would be nice to be up there with the US—but how? Where is the analysis: not another back-of-the-envelope plan but a deep and evidenced diagnosis to help us understand what really stands in the way of higher growth in the UK? The notion that stimulating the economy at a time of full employment and high inflation will do the trick sustainably is widely condemned and wide of the mark.

    One requirement for growth is clearly investment, yet we have now spooked the markets. Investors have a global perspective: they look for opportunity but will shy away if we fail to offer them reliability and stability too. Beyond that, what can government do?

    We know that we have vast labour and skills shortages across the economy: crops unpicked, short-staffed restaurants unable to open on the days they used to, and too few doctors and nurses. I know from my own exposure to the real economy that we are short of many more skills—for example, data scientists, digital marketeers and engineers. The Institution of Engineering and Technology estimates a current shortfall of 200,000 across the economy. We need a massive drive to bring our system of education and skills into line with the UK’s economic needs.

    Moreover—I experienced this very strongly myself—modern workers no longer live just down the road. Executives and specialists often fill jobs hundreds of miles from home, travelling huge distances each week to reach their work, crashing locally mid-week. Other workers commute long distances daily, and all travel to and from work unproductively in our crowded country, on the worst road and rail infrastructure in the developed world.

    Addressing these and other problems will improve the trend line of UK growth, but problems largely ignored for decades will take decades to put right. The notion that we can suddenly accelerate beyond the US to a sustainable annual growth rate of 2.5% is manifestly unachievable. The sooner the Government come back down to earth and face reality, the better for us all.

  • Joan Walmsley – 2022 Speech on the Growth Plan (Baroness Walmsley)

    Joan Walmsley – 2022 Speech on the Growth Plan (Baroness Walmsley)

    The speech made by Joan Walmsley, Baroness Walmsley, in the House of Lords on 10 October 2022.

    My Lords, the Chancellor’s special economic operation was not as tragic as Mr Putin’s appalling special military operation, but it was pretty tragic for the economic prospects of ordinary people. Since the Budget that was not a Budget, I have met a small business that has shelved its expansion plans, a person with two jobs who is now looking for a third, and a mother of four who got extra blankets from the charity shop to avoid putting the heating on.

    Planning to cut taxes for top earners shows whose side the Conservatives are on, and I am glad that they have decided to reverse that idea. In their defence, they say that they will reduce the basic rate of income tax by 1p next April—that is if we all get through the winter. However, 5 million people earn too little to pay tax, and the freeze on the tax threshold means that the average family will be £290 worse off next year anyway, and the tax cut is worth only about one month’s mortgage payment increase for some people.

    Then there are energy bills. The Government have intervened to cut bills but they are still double what they were a year ago. The Prime Minister and the Chancellor, with their bungled Budget that was not a Budget, caused a massive increase in mortgage rates, connected exactly to the timing of the Chancellor’s statement. They spooked the money markets so badly that the Bank of England had to intervene to prevent pension funds going bust. All this adds up to ordinary families struggling, and then the Chairman of the Conservative Party tells them to go out and get a better paid job—shades of “Get on your bike”.

    The Prime Minister has invented a new fantasy enemy: the anti-growth coalition. She even said in her conference speech that green issues are anti-growth—no; it was Brexit that was anti-growth. We on these Benches are not against growth but we are in favour of growth that works; growth from the bottom up rather than from the top down. We are in favour of the growth of well-paid jobs in science and technology industries, particularly green technologies to reduce emissions. That is not anti-growth; that is a vision for saving the planet.

    Telling companies that they can keep more of their profits rather than increasing corporation tax is telling them that they can spend it on whatever they like—perhaps increasing CEO salaries. They should instead be saying that companies can keep more of their profits but must spend it on innovation and research and development to increase productivity and increase the skills of their workers. This can be done by various measures, including more tax credits.

    The Lords Science and Technology Committee, in its latest report, heard evidence that growth comes from investing in science and technology. We welcomed the new national Council for Science and Technology, chaired by the previous Prime Minister, and recommended that it should meet more often—but the first thing the current Prime Minister did was to abolish it. Now all government departments are being asked to make cuts. What cuts will be made to the Chancellor’s former department, BEIS, reducing its ability to fund innovation and R&D?

    I recognise that the Government have provided a significant amount of money to subsidise energy bills, but I have heard nothing about how they plan to reduce energy demand, thus improving energy security and cutting the amount needed for the subsidy and the cost of borrowing money for the subsidy, as well as ordinary people’s bills. Where, in the noble Baroness’s opening speech, was an emergency programme to insulate houses? Where are the improvements to building regulations and, importantly, enforcement to ensure that all new buildings are energy efficient? It saves families money, saves the Government money and creates jobs. What is not to like?

  • David Frost – 2022 Speech on the Growth Plan (Lord Frost)

    David Frost – 2022 Speech on the Growth Plan (Lord Frost)

    The speech made by David Frost, Lord Frost, in the House of Lords on 10 October 2022.

    My Lords, it is a pleasure to take part in this debate and to follow the noble Baroness, Lady Fox, who is a voice of clarity and forthright speaking in this Chamber. I congratulate my noble friend Lady Neville-Rolfe on her appointment once again to the Front Bench, in the Cabinet Office.

    This country faces serious underlying problems, which my noble friend Lord Bridges and others have set out, and in my view this Government are beginning to tackle them. This will create turbulence but there is really no choice.

    My noble friend Lord Lilley referred to the achievements of the Thatcher Government in the 1980s. One of her close advisers, John Hoskyns, said:

    “It is not enough to settle for policies which cannot save us, on the grounds that they are the only ones which are politically possible or administratively convenient.”

    Unfortunately, too many of those who have opposed the Government’s growth plan seem to want to do just that, thinking that the right way forward is just more of the same: more super-zero interest rates, more public spending and more clever policies, and the whole thing run by clever officials and institutions who are very invested in how things are now. The task before us is different. It is to make politically possible what is necessary for the country to begin to recover, and I believe that this is what the Government are setting out in the growth plan. I welcome that. I have spent a lot of the last year, within and outside government, urging the Government to get more serious about low taxes, reform and change. I am very happy that they have begun to do so.

    The situation that we face as a country is difficult but it is not as bad as that which many others face. It is not as bad as for those trapped in the eurozone, who have no control over monetary policy or much else of the normal role of a Government. The report a week or so ago from Deutsche Bank researchers attracted a lot of attention in the hysteria of the last couple of weeks, pointing out that our economy might shrink slightly, by 0.5% in 2023. What attracted less attention was it saying that Germany’s economy would shrink by 3% or 4%. We must keep these things in proportion.

    We have had a productivity and growth problem since 2008—which I note in passing is the period of the deepest integration of this country in the single market and of the highest inward migration. Re-joining the single market and reversing those trends will not help our growth performance at all; it did not help then and it will not help now.

    The right way forward is set out in the growth plan: the gradual normalisation of monetary policy, which is essential if we are to solve the productivity problem. Zero interest rates harm the motor of a free market economy. The only way forward is medium-term fiscal discipline while letting fiscal policy take the strain in the short run, and supply side structural reform.

    When the economy does not grow, you get competition for static resources, which is why we have what my right honourable friend the Prime Minister called the anti-growth coalition. The fact that so many people do not like the term shows that it has captured something real about attitudes. These people’s vision of the country seems to be to keep everything as it is. They do not want change. They are happy to see our country as a shabby-genteel aristocratic family, trying to keep up appearances but not ready to go out to work.

    This will not be easy. Politicians must explain what needs to be done. However, I take inspiration again from the words of Margaret Thatcher, who said:

    “First you win the argument, then you win the election.”

    If the Government stick to their guns, I am confident that they will do both those things.

  • Claire Fox – 2022 Speech on the Growth Plan (Baroness Fox of Buckley)

    Claire Fox – 2022 Speech on the Growth Plan (Baroness Fox of Buckley)

    The speech made by Claire Fox, Baroness Fox of Buckley, in the House of Lords on 10 October 2022.

    My Lords, I am delighted to welcome the noble Baroness, Lady Gohir, and congratulate the noble Baroness, Lady Neville-Rolfe. One thing that is growing is the strong women brigade in here.

    I welcome one aspect of this debate. I want to move away from the focus on the redistribution of a shrinking national cake. The answer is to bake a bigger cake. I am glad that so many noble Lords now profess that they are pro-growth because, until recently, those of us who were arguing for economic development faced lectures that growth was unsustainable, irresponsible, damaging for the environment, a recipe for greedy consumerism and so on.

    My problem is that the measures announced in the growth plan are flimsy and insubstantial. The problems we face—here I disagree with the noble Baroness, Lady Smith of Newnham—were foreseeable, but they were denied by all sides politically. Those problems are far greater than the Government or the Opposition seem to acknowledge, even now. If only they could be fixed through the prism of cutting or increasing tax.

    I have no doubt that the mini-Budget was a trigger for the present crisis, but we need to be honest that it is not the cause of Britain’s woes. Our stagnated, unproductive economy has deep roots of many years’ standing. For more than a decade, central banks have turned to easy monetary policies and vast amounts of quantitative easing both to keep interest rates near zero and to prop up and sustain a zombie economy. This was not called out by politicians. It could not have gone on indefinitely.

    Closing down the UK economy for two years during lockdown, which received all-party support, and now the war in Ukraine have brought the UK economy’s underlying fragilities to the fore. However, the idea that tax cuts are an easy answer is pitifully inadequate—let alone those who blame Brexit; that is just pathetic.

    Without things being produced, no wealth is created to generate incomes, profits and tax revenues to pay for public spending, so production is the key. But is the idea of the tax cuts that businesspeople, corporates and wealthy capitalists will spend their untaxed windfalls productively? Why would we think that? Since the 1980s, business has not been short of funds to invest but it has not been entrepreneurial and it has not invested in innovation, better technologies or the skills revolution. Instead, corporate culture itself has become risk-averse, playing it safe and playing with financial engineering.

    A furious public are not just in terror about the short-term—their bills and mortgages—but dismayed at the lack of meat on the bone of the plans. Take the energy policy—the energy that we will need to fuel growth. There is no point in the Government loudly shouting, “Let’s frack”, and then whispering, “With local consent”, and continually reaffirming their net-zero targets. Green growth in reality means unreliable energy and eco-austerity. Let us get on with nuclear power. Let us get on with building those houses. At the moment, it is all soundbites. Never mind subsidising old industries, where is the concrete plan to invest in new sectors, with new jobs and new energy solutions? Where is the spirit of risk, courage and experimentation? We must create a new industrial revolution. That is the long-term plan that we need but it is sorely lacking, and the public need to hear more of it.

    The public are not fools. They instinctively know that there is no pain-free route out of this. We need some frank talking, and a collective approach to solving the problems, beyond party politics. A huge transformation is needed in the economy, and everybody must be involved in shaping it. The words “Growth, growth, growth” are not enough. A lot more must be done. We must be humble and recognise that we have to take a lead on this but that we need the British public onside to make it happen.