Procurement Bill [HL]

Baroness Garden of Frognal Excerpts

Report stage
Wednesday 30th November 2022 Lords Chamber

[The Deputy Speaker (Baroness Garden of Frognal) (LD)]

My Lords, I am about to call Amendment 170. If this is agreed, I cannot call Amendments 171 or 172.

Clause 111: Power to disapply this Act in relation to procurement by NHS in England

Amendment 170

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Nuclear Test Veterans: Medals

Baroness Garden of Frognal Excerpts

Thursday 24th November 2022 Lords Chamber

[Baroness Neville-Rolfe (Con)]

I am glad that the noble Lord also mentioned the communities in Australia and elsewhere. Of course, as I said, there has been a government ex gratia payment, which I believe was very important. Although the 1950s and 1960s were a long time ago, it is not too late to honour the brave people involved. Those looking at these cases in the round have difficult judgments to make but, having said that, the noble Lord is right that we should learn from mistakes. That is one of the principles I have brought into government with me: learn as you go along, because you can improve in almost every area of government.

[The Deputy Speaker (Baroness Garden of Frognal) (LD)]

My Lords, the noble Lord, Lord Howarth of Newport, is taking part remotely and I invite him to speak.

House of Lords: Appointments

Baroness Garden of Frognal Excerpts

Wednesday 18th May 2022 Lords Chamber

[Noble Lords]

Oh!

[Baroness Garden of Frognal (LD)]

My Lords, the Minister keeps on citing Tony Blair. The big difference is that Tony Blair put Peers in this House from all parties, and that this Prime Minister almost exclusively puts Conservatives in.

[Lord True (Con)]

My Lords, we could have a debate about that particular record. The principle of refreshing the House is an important one and it applies not only to Government Benches, but I do not notice the Benches over there being understocked at the moment.

Northern Ireland Protocol

Baroness Garden of Frognal Excerpts

Wednesday 13th October 2021 Lords Chamber

[Lord Frost (Con)]

My Lords, my noble friend makes an extremely good, apposite point. I am sure he has read my speech made in Lisbon yesterday because I put great emphasis on the need to resolve the current problems, move forward and build friendships in Europe. We have too much in common to have unnecessary division over such questions. We need to resolve them. The western alliance has major interests and major problems to face around the world. We need to stick together and do that. That is why we want to resolve this question, so that we do not have to come back to it and can move on.

[The Deputy Speaker (Baroness Garden of Frognal) (LD)]

My Lords, I am afraid that the 15 minutes allowed for this Question have now elapsed.

Wellbeing of Future Generations Bill [HL]

Baroness Garden of Frognal Excerpts

2nd reading
Friday 25th June 2021 Lords Chamber

[Baroness Garden of Frognal (LD)]

My Lords, this Bill has attracted a large number of speakers, partly out of the huge respect in which the House holds the noble Lord, but also because of the importance of the issue his Bill seeks to address.

Let us applaud the Welsh, and the noble Lord for his passionate introduction to the Bill. This is a wide-ranging Bill, it is ambitious and challenging, and I fear that some measures may prove too demanding for a Private Member’s Bill. I have not seen any costings—that may be my mistake—but the proposals seem so overwhelmingly positive that it may be that the funds will be forthcoming.

The Bill advocates a Joint Committee on future generations and a commission to be appointed by the Prime Minister. Here I have problems. We in this House have seen how prime ministerial appointments can distort the membership, so perhaps commission members could be generated by another method. The commission would need to be and seen to be non-political, and if they are prime ministerial appointments, there is a huge danger that they will be overwhelmingly party political. The well-being of our young people can only benefit by co-operation between government and across all the parties and the public bodies. It would be good to think that such dialogue already takes place, but I suspect that it does not.

I also applaud the proposal for a citizens’ panel of at least 50 people, a large and wide-ranging selection of people, which would need an exceptional leader or convener, but which could prove invaluable in bringing expertise from all parts of our community to this subject. The bigger prize would be for the next generations to have better prospects for rewarding employment and fulfilling lives, if we all work together in the way suggested.

The Bill greatly deserves further consideration and scrutiny, and I look forward to Committee and trying to ensure the well-being of future generations by exploring in more detail how these proposals would work in practice. I very much support the intentions behind the Bill and congratulate the noble Lord on all his endeavours, especially all the work he does to improve the lives of the less fortunate and the young. He may not be able to solve all our problems—as he has so modestly admitted—but, my goodness, he does an amazing job in tackling many of them.

[The Deputy Speaker (Lord Russell of Liverpool) (CB)]

The noble Baroness, Lady Bertin, has withdrawn from this debate, so I call the next speaker, the noble Lord, Lord Wigley.

Financial Services Bill

Baroness Garden of Frognal Excerpts

Report stage
Wednesday 14th April 2021 Lords Chamber

[The Deputy Speaker (Baroness Garden of Frognal) (LD)]

My Lords, I will call Members to speak in the order listed. Short questions of elucidation after the Minister’s response are discouraged, but any Member wishing to ask such a question must email the clerk. The groupings are binding. A participant who might wish to press an amendment other than the lead amendment in a group to a Division must give notice in debate or by emailing the clerk. Leave should be given to withdraw amendments. When putting the question, I will collect voices in the Chamber only. If a Member taking part remotely wants their voice accounted for if the question is put, they must make that clear when speaking on the group.

Amendment 14

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The second problem that I have with the amendment is that it asks for a report from the Treasury on progress made by the Bank of England on offering basic bank accounts. As far as I am aware, the Bank of England does not itself offer any bank accounts. In fact, I believe that it closed the last bank accounts that it offered about five years ago. I was very proud to have a Bank of England bank account, which I acquired when I was a member of court. It had an extremely grand cheque-book and I was very unhappy when the Bank of England closed the account. It did that because it was a relatively small operation, and it simply could not keep up with the online technology that one needs nowadays to make a retail offering. It closed them down and does not have the capacity to do it now, so it would be completely wrong to expect the Bank of England to step back into retail banking, having consciously stepped out of it.

[The Deputy Speaker (Baroness Garden of Frognal) (LD)]

The noble Baroness, Lady Tyler of Enfield, has withdrawn, as she is speaking in Grand Committee, so I now call the noble Baroness, Lady Bennett of Manor Castle.

[Baroness Bennett of Manor Castle (GP) [V]]

My Lords, I welcome the government amendment in this group. We are seeing regulations catching up with financial innovation. As ever, it seems that the regulator is being forced to chase after advances that are screaming into the future with potentially very disturbing results.

However, I chiefly wish to speak to Amendment 35, in the name of the noble Lord, Lord Holmes of Richmond, and to offer my support for it, or at least for its principles. As the noble Lord said, we are talking about innovation, but innovation that is actually for the common good—innovation that works for people, and particularly, innovation that works for the most vulnerable in our society. The figures really are deeply shocking: estimates of 1 million unbanked people; 8 million people with debt problems; 9 million people with no access to mainstream credit. One thing that is not adequately recognised is the poverty premium: the fact that not having a bank account or access to mainstream credit means much higher costs for everything from utility bills to borrowing and very well documented impacts on health and wellbeing.

This seems like an apt time to ask the Government whether they have given further consideration to the recommendation from the Select Committee on Financial Exclusion, which reported in March 2017. It called for a Minister responsible for financial exclusion. Is this something that the Government are really going to focus on by means of this Bill? The noble Baroness, Lady Noakes, may have concerns about the structure of this, but the intentions of the noble Lord, Lord Holmes, are very clear. Are the Government going to take action?

Budget Statement

Baroness Garden of Frognal Excerpts

Friday 12th March 2021 Lords Chamber

[The Minister of State, Cabinet Office and the Treasury (Lord Agnew of Oulton) (Con)]

My Lords, the Budget that the Chancellor set out last week has three key elements. First, it protects jobs and livelihoods and provides additional support to get the British people and businesses through the pandemic. Secondly, it is clear and honest about the need to fix the public finances. Thirdly, it starts the work of building our future economy, including by providing opportunities to level up across the country.

The Budget announced additional measures worth £65 billion to support the economy through the pandemic this year and next. Added to last November’s spending review, the number is £352 billion and, taking into account measures from the spring Budget last year, the figure rises to £407 billion. The OBR now expects the UK economy to recover to its pre-crisis level six months earlier than originally expected—in the second rather than the fourth quarter of 2022.

Importantly, the Budget extends the furlough scheme until the end of September. Support for the self-employed will also continue until September, with an additional 600,000 people now potentially eligible to claim. The universal credit uplift of £20 a week will be maintained for a further six months and working tax credit claimants will receive equivalent support over the same timeframe.

Among other things, the Budget also reaffirmed the Government’s commitment to increase the national living wage to £8.91 an hour from April. It also announced a new restart grant in April to help businesses to reopen and get going again, as well as a new recovery loan scheme to replace our earlier bounce-back loans and coronavirus business interruption loans.

The Chancellor was also open about the longer-term fiscal challenge that we now face. The Budget does not raise the rates of income tax, national insurance or VAT. Instead, it maintains personal tax thresholds on income tax, inheritance tax, the pensions lifetime allowance and the annual exempt amount in capital gains tax, with higher earners affected the most. It also announced an increase in corporation tax to 25% from 2023. Importantly, 25% is still the lowest corporation tax rate in the G7 and companies that make less than £50,000 profit annually will only be subject to a 19% tax rate. Given that the Government are providing businesses with over £100 billion of support to get through the current crisis, it is only right to ask them to contribute to our recovery.

The third component of the Budget is a series of initiatives and measures to support the investment-led recovery that the country needs. A new super deduction will, in some cases, allow companies to reduce their taxable profits by 130% of the cost of the investment that they make in plants and machinery, which is equivalent to a 25p tax cut for every pound that they invest. Worth £25 billion over the two years that it is in place, the super deduction represents the biggest business tax cut in modern British history.

The Budget also announced, among other things, the creation of the first ever UK infrastructure bank, headquartered in Leeds. Two new schemes—Help to Grow and Help to Grow: Digital—will help tens of thousands of small and medium-sized businesses to get world-class management training and help them to develop their digital skills. We are helping to ensure that we have access to the talent that we need through the reforms that we are making to our visa system.

Achieving an investment-led recovery means allowing investment to flow more freely, which is why we want to give the pensions industry more flexibility to unlock billions of pounds from pension funds into innovative new ventures. Alongside these measures, our commitment to levelling up across the United Kingdom is reflected in the £4.8 billion levelling-up fund; accelerated city and growth deals in places such as Ayrshire, Falkirk, north Wales and Swansea Bay; more than a £1 billion for 45 new towns deals; and a £150 million fund to help communities across the United Kingdom take ownership of pubs, theatres, shops or local sports clubs at risk of loss. This complements the inward investment that will be attracted through the announcement of eight new freeports in eight English regions.

The country has experienced the worst fall in GDP in three centuries—not the 1976 sterling crisis, not the Second World War, not the First World War, not the Napoleonic War; this has been harder financially than all those. In response, the Chancellor has presented a plan that will continue to protect jobs and livelihoods and to support British people and businesses through this moment of crisis. It will begin to fix the public finances and will start the work of building our future economy through investment-led recovery.

[The Deputy Chairman of Committees (Baroness Garden of Frognal) (LD)]

My Lords, I should have added that the maiden speakers all have an extra minute and the welcomers an extra 30 seconds. I call the noble Lord, Lord Eatwell.

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[Lord Lamont of Lerwick (Con)]

My Lords, this is the first time I have ever spoken in a Budget debate in the Lords and I am making my “maiden speech” only because I want to support the Chancellor at a time when there are no easy answers—it is a very difficult situation. I always listen with respect to the noble Lord, Lord Eatwell, but I disagree with him over fiscal resilience and its importance. The central dilemma for the Chancellor in this Budget is how he can start repairing the public finances without endangering the recovery. He resolved that dilemma by delaying the increases in corporation tax and the freezing of personal allowances, again delayed for one year. This staging gives the recovery the chance to get established, and I believe that was the right judgment.

Overall, the Budget increases the tax burden by 1% of GDP, which is uncomfortable for many of my noble friends on this side of the House, but we have been through phases like this before, in the early 1980s and other periods when fiscal tightening, far from killing off growth, ushered in long periods of expansion, which is what enables us to pay for good public services. We should not succumb to the mistaken interpretations of Lafferism or Reaganomics that led America astray in the 1980s. Some will criticise the increase in corporation tax, but once you have ruled out the three main taxes, as was done in the Conservative manifesto, the Chancellor had little choice. The question remains whether such a large increase in corporation tax can be delivered: moving the tax up in one go to 25% may cause prospective investors a bit of hesitation.

The OBR talks of lowering investment in the medium term, and I would appreciate it if my noble friend Lord Agnew would comment on that very obvious reservation that the OBR expresses. I believe that the Chancellor has risen to these unprecedented challenges flexibly and pragmatically, and I support him.

[The Deputy Speaker (Baroness Garden of Frognal) (LD)]

We welcome the maiden speech of the noble Lord, Lord Khan of Burnley.

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[The Deputy Speaker (Baroness Garden of Frognal) (LD)]

The noble Lord, Lord Davies of Oldham, has withdrawn, so I call the noble Earl, Lord Caithness.

Space Industry

Baroness Garden of Frognal Excerpts

Thursday 4th March 2021 Grand Committee

[Lord Parker of Minsmere (CB) (Maiden Speech) [V]]

My Lords, I am delighted to have this brief opportunity to make my maiden speech. It gives me a moment to put on record my great thanks for the generous kindness of the Convenor, Black Rod, the Clerk and the excellent House authorities. I want to make special mention of Kate Long, Daisy Christy, Ayeesha Bhutta and Gabby Longdin. I also thank my noble supporters—both colleagues and personal friends for many years—the noble Baroness, Lady Manningham-Buller, and the noble Lord, Lord Evans of Weardale.

I am honoured to join many very distinguished noble Lords and friends in this House whom I have valued over the years as teammates in this country’s national security machinery, whether in the police service, the Armed Forces, the Civil Service or in political, judicial or scrutiny roles. There are too many to name today, but all are bound together in the single common endeavour of protecting this country. For my own part, I could not make this maiden speech without taking the opportunity to pay tribute—as I may now do from the outside—to the exceptional dedication and skill of all those who work so hard in MI5 and its partner organisations to keep this country safe through thick and thin. They do more than we know, and we owe them our wholehearted admiration and thanks.

I had been very much looking forward to contributing where I could to the legislative programme of this House and perhaps even serving on a Select Committee in due course. This House is tackling a slew of important Bills on national security matters of considerable interest to me, where I had hoped I might add some value. I would also have liked to engage on a range of other matters, including conservation, faith, social justice and science and technology, including this important question before us now.

However, as your Lordships will understand, this first speech must also be my last for some time. Since my recent appointment to this House, Her Majesty the Queen has graciously further appointed me as the next Lord Chamberlain of the Royal Household. I am absolutely delighted and humbled by such an extraordinary honour. It follows that the work that I had planned to do in this House as a participating Member will now properly be restricted to my prospective duties as Lord Chamberlain, following in the highly distinguished footsteps of the noble Earl, Lord Peel. I very much look forward to serving Her Majesty in every way that I can in this role.

[The Deputy Chairman of Committees (Baroness Garden of Frognal) (LD)]

Congratulations, Lord Parker. I call the noble Viscount, Lord Waverley.

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[Lord Sarfraz (Con) [V]]

My Lords, I too congratulate all the maiden speakers today and declare an interest as set out in the register. The United Kingdom can be the world leader in space technology. There are many spin-off technologies that originated from space research, including ear thermometers, artificial limbs, water purification and even enriched baby food, so this is not about space alone. Last year, we witnessed the SpaceX Crew Dragon transporting NASA astronauts to the international space station. This could never have happened without close co-operation between government and a young company; our success in space depends on that spirit of partnership.

While I congratulate the Government on their significant efforts, we need to think about strengthening our space situation awareness capability, developing financing for constellations and improving insurance for small satellites. Finally, we are currently in the middle of a recruitment drive for the next cohort of British astronauts. This is an opportunity for us to inspire kids in schools across the country by talking about space, letting them hear from British astronauts and helping them develop a love for the stars and the planets.

[The Deputy Chairman of Committees (Baroness Garden of Frognal) (LD)]

I call the noble Lord, Lord Mountevans. We do not seem to have him. I will then go on to—oh, have we got you?

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[The Deputy Chairman of Committees (Baroness Garden of Frognal) (LD)]

My Lords, perhaps I might presume to congratulate the Minister on his maiden speech and extend to him a very warm welcome both to the House and to his ministerial post. I also congratulate all the speakers on the discipline with which we have conducted this debate—including the maiden speakers, who have shown great promise for future contributions to the House.

That completes the business before the Grand Committee this afternoon. I remind Members to sanitise their desks and chairs before leaving the Room. The Committee is adjourned.

Committee adjourned at 6.40 pm.

Customs Miscellaneous Non-fiscal Provisions and Amendments etc. (EU Exit) Regulations 2020

Baroness Garden of Frognal Excerpts

Tuesday 19th January 2021 Grand Committee

[Lord Agnew of Oulton (Con)]

I thank noble Lords for their well-considered and insightful comments during this debate. As I said earlier, these measures are necessary to address specific arrangements pertaining to Northern Ireland now that the transition period has ended. I will try to address the questions put forward by noble Lords.

The noble Lord, Lord Liddle, was modest in saying that he did not understand these trade regulations in detail. He displayed enormous knowledge, to my mind, so I will try to answer his questions. The joint committee agreement protects unfettered access, by ensuring that there is no requirement for export checks or declarations for Northern Ireland businesses moving goods in free circulation directly from Northern Ireland to GB. There are some limited exceptions when businesses need to submit an export declaration for the movement of goods from Northern Ireland to GB. The Government have published comprehensive guidance on these exceptions online to ensure that businesses have a thorough understanding of when to submit the export declaration.

As outlined in the Government’s Command Paper, there are no plans for any new bespoke customs infrastructure in Northern Ireland. Agri-food movements from GB to NI will be carried out at existing facilities and designations at NI ports. Expanded infrastructure will be needed at some of these sites for agri-food checks and assurance. The Government have collaborated with Northern Irish ports to agree on the utilisation of existing space and capacity, until infrastructure expansion has been completed. A full impact assessment has not been produced for this instrument, as an assessment was made of the impact of the then European Union (Withdrawal Agreement) Bill in 2019 and the Northern Ireland protocol.

The Government recognise that the priority remains to have a regime in place that strongly focuses on the benefits of unfettered access for Northern Irish businesses, and ensures that they have a competitive advantage over traders elsewhere in Ireland. That is what the second phase of unfettered access will provide, in the second half of 2021. Once delivered, it will ensure that benefits are conferred to genuine Northern Irish traders only. Goods coming from the EU or outside the EU to Great Britain via Northern Ireland will be regarded as imports and subject to controls.

The noble Lord, Lord Dodds, asked about timing and what has happened since leaving—post the transition period. On timings, Royal Assent to the Taxation (Post-transition Period) Act 2020 was required before this instrument could be laid. Section 2 of that Act inserted Section 30C into the Taxation (Cross-border Trade) Act 2018. This imposes a customs duty charge on the movement of goods from NI to GB if the goods are not qualifying Northern Ireland goods. It ensures that unfettered access is available only to appropriate NI traders and deters businesses from rerouting goods via Northern Ireland to avoid import formalities. The Taxation (Post-transition Period) Act received Royal Assent on 17 December last year; this instrument was then made on 21 December and laid on 22 December. The instrument came into force at the end of the transition period and has already taken effect, but still needs to be approved by both Houses.

No formal consultation on this specific instrument has taken place. However, the instrument, together with the Taxation (Post-transition Period) Act 2020, makes provisions in relation to the application of certain provisions in the protocol. Consultation on the practical implications of the protocol has taken place with businesses. Throughout the transition period, the NI stakeholder engagement team consulted a wide range of businesses and representative bodies who would be impacted. Consultation with businesses will continue.

Defining qualifying Northern Ireland goods is a matter for the UK, not for the joint committee. To this end, the Government laid a statutory instrument setting out the definition of qualifying Northern Ireland goods—statutory instrument 2020/1454. A qualifying Northern Ireland good is one that is eligible for unfettered access to Great Britain. Goods will be qualifying Northern Ireland goods from 1 January 2021 if they are in free circulation in Northern Ireland—that means not under a customs procedure or in an authorised temporary storage facility before they are moved from Northern Ireland to Great Britain. The Government will focus the benefits of unfettered access on Northern Irish businesses and ensure that we have a competitive advantage over traders elsewhere.

The Government have been unequivocal in our commitment to unfettered access for Northern Ireland goods moving to the rest of the UK market, and there will be only very limited exceptions to this. This instrument simply ensures that the requirement for entry summary declarations for non-qualifying goods moving from Northern Ireland to Great Britain is retained. This is in line with the requirement for goods imported into Great Britain from the EU and outside the EU.

I was asked about paperwork and costs. In practice, safety and security declarations are made into the same system used for other goods arriving into GB that attract a safety and security requirement. The data required for an entry summary declaration includes fields such as mode of transport, description of the goods and routing information. Traders may use an intermediary to complete safety and security declarations for them. To avoid disruption and facilitate continuity, the Government have introduced a waiver for ENS requirements where such requirements would not have existed before the end of the transition period. This means that there is no requirement for entry summary declarations to be submitted for the movement of non-qualifying EU goods from Northern Ireland to Great Britain until 1 July 2021. This SI does not affect that waiver.

My noble friend Lady McIntosh asked similar questions about ENS: can they be made electronically? These declarations can and are being submitted digitally. They will be made into the safety and security GB system, the same system used for other goods. This instrument retains the requirement of an entry summary declaration for the movement of non-qualifying goods. She asked about training. HMRC and other departments have undertaken a significant programme of ongoing communication and engagement to inform traders of new requirements and to support preparedness. The two-hour time limit requires traders to submit their entry summary declaration a minimum of two hours before arrival to GB, but this two-hour period includes time taken on the journey, so, in practice, will not come about much before traders arrive at ports.

My noble friend is worried that this might provide a backdoor entry into GB for non-qualifying goods. To prevent traders seeking to abuse unfettered access in the first place, it is accompanied by anti-avoidance provisions which deter businesses rerouting goods via Northern Ireland if they do so in order to avoid UK import formalities. HMRC will be able to undertake spot checks when there is evidence that the qualifying goods regime is being abused. HMRC also has the power to prosecute anyone who tries wrongly to claim unfettered access for their goods. This will ensure that only businesses with a legitimate reason to route goods via NI can benefit from unfettered access.

My noble friend Lady McIntosh asked whether there will be two regimes: NI to GB and GB to NI. The Government recognise that the priority remains to have a regime in place that strongly focuses the benefits of unfettered access on Northern Ireland business and ensures that it has a competitive advantage over traders elsewhere in Ireland.

The noble Baroness, Lady Ludford, had similar questions, but I will deal with her particular emphasis on the preparations for the end of the grace period. A dedicated team in government is already working with supermarkets, the food industry and the Northern Ireland Executive to develop ways to streamline the movement of goods in accordance with the protocol, backed by significant UK funding. The Government will provide a major injection of new funding to support preparations for the end of the grace period for supermarkets and suppliers. Further details will be announced in due course.

The noble Baroness asked about the trade and co-operation agreement. The TCA governance requirements were set out clearly in the agreement and will be set up in due course. The agreement builds on multiple avenues of business representation and input and clear independent systems of dispute resolution outside the jurisdiction of the European Court of Justice. The TCA provides a role for domestic advisory groups which will include business and employers organisations. They will be able to submit views and recommendations for consideration by the UK and the EU and may be consulted during consultations as part of the dispute resolution mechanism for the agreement. Businesses may also take part in the civil society forum provided in the TCA. It will meet at least once a year and provide a forum for independent civil society organisations from the UK and the EU to meet and discuss the implementation of the agreement. On the actual governance arrangements, the governance arrangements agreed under the withdrawal agreement will continue through the joint committee supported by the specialised committee on Ireland and Northern Ireland and, in due course, the joint consultative working group. Once established, the joint consultative working group will provide further opportunities for detailed engagement.

I would like to continue for a couple more minutes if the Deputy Chairman will allow it.

[The Deputy Chairman of Committees (Baroness Garden of Frognal) (LD)]

We have time.

[Lord Agnew of Oulton (Con)]

In addition to the questions asked by other noble Lords, the noble Lord, Lord Tunnicliffe, asked about penalties. They will be used where a person is found contravening a customs rule, such as failing to complete an entry summary declaration or not providing an EORI number. There is a maximum penalty of £1,000. HMRC may take mitigating factors into consideration, which could lead to a lower or nil penalty depending on the circumstances. While HMRC will penalise non-compliance, it will seek to support those who make genuine errors while trying to get it right. HMRC is planning a package of activities to support and educate traders on their obligations during this period. This includes promoting keeping good records, which will be crucial in minimising errors once supplementary declarations are made. Further tweaks of the regulations will be required, but the changes currently envisaged are improvements rather than corrections.

The noble Lord asked about a general update on the situation regarding trade between GB and NI. I think I can report on a good position over the last two and a half weeks. That has been largely supported by the Trader Support Service, which was set up just before the end of the transition. Some 29,500 businesses have now registered with the TSS and over 25,000 of those are marked as ready to trade. The TSS has handled over 75,000 declarations so far, and 99% of those have been processed within 15 minutes. The contact centre has over 700 staff to assist with trader queries. It handled some 7,000 inbound calls between 1 January and 17 January. Some 97% of those calls were answered within 30 seconds, and they have spare capacity which they have been using to do outbound dialling to other traders who have not yet reached ready-to-trade status. As of 18 January, HMRC had received 1,518 UK trader service applications.

The Government are committed to maintaining unfettered access to the rest of the UK market for Northern Ireland businesses, protecting Northern Ireland’s place in the UK customs territory and ensuring that Great Britain to Northern Ireland trade flows as smoothly as possible. I sum up by saying that these regulations, which are already in place, will help to ensure that goods can continue to move safely and effectively between Northern Ireland and Great Britain. I commend the regulations to the Committee.

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[The Deputy Chairman of Committees (Baroness Garden of Frognal) (LD)]

My Lords, I remind Members to sanitise their desks and chairs before leaving the Room.

Sitting suspended.

Economic Update

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Tuesday 12th January 2021 Lords Chamber

[The Minister of State, Cabinet Office and the Treasury (Lord Agnew of Oulton) (Con) [V]]

My Lords, I am grateful to the noble Lord, Lord Tunnicliffe, for his comments. I shall to try to address some of his points.

It is clear that the UK, along with the rest of the world, continues to face economic disruption in the wake of the Covid pandemic. No major economy has avoided a dramatic fall in its GDP in the past year. In the face of the significant and far-reaching impact of Covid, the Government’s priority has been to protect lives and livelihoods with a flexible and adaptable response. This response is one of the largest and most comprehensive in the world, totalling more than £280 billion since March. The IMF judges the UK’s initial response as being aggressive, effective and an excellent example of well-co-ordinated action.

While we should expect the economy to get worse before it gets better, as my right honourable friend the Chancellor said yesterday, there are reasons to be cautiously optimistic for the future. The peak of the unemployment rate is expected to be significantly lower than that estimated earlier in the crisis. The OBR has revised down its central scenario from 12% in July’s estimate to 7.5% in November’s estimate. The household savings ratio has reached its highest level since records began in 1963. The corporate sector cash buffers have improved, with large businesses making large net repayments every month since May. The furlough scheme has seen some 1.2 million employers and almost 10 million employees supported and has been extended until April to provide certainty during these difficult times. We have provided significant support to the creative industries through the £1.5 billion Culture Recovery Fund and to the hospitality industry, which I recognise has been severely impacted by the restrictions. It has also been supported by cash grants, loans, VAT reductions and deferrals, and business rate holidays.

The support for the self-employed has been unprecedented and among the most generous of schemes in the world. It has so far supported almost 3 million people at a cost of nearly £20 billion. As the Chancellor has said, sadly we are not able to save every job and business and, in recognition of this, have boosted the welfare system by £7.4 billion in 2021.

I thank the noble Lord for mentioning the vaccine, which represents a significant sign of hope and a path out of the coronavirus. Vaccine rollout is our most important economic lever and we have made available more than £6 billion to facilitate that. We have now administered more than 2.4 million vaccine doses across the UK. By 15 February, we aim to have offered a first vaccine dose to everyone in the top four priority groups identified by the Joint Committee on Vaccination and Immunisation.

The road ahead remains tough, with significant uncertainties. The Chancellor and this Government will continue to work to support individuals, businesses and public services during this time. As the Chancellor said yesterday, he will provide an update on the next stage of our economic response to coronavirus and the economic outlook for the rest of the country in the Budget on 3 March.

On retaining the uplift in universal credit, referred to by the noble Baroness, Lady Kramer, as with all responses so far in the crisis, we have tried to adapt to changing circumstances and this matter will be kept under continual review. In the same vein, we have extended furlough until April, it already having been extended from an earlier time, and we will continue to be alert to the state of the economy.

On the noble Baroness’s point about the self-employed and the Federation of Small Businesses, my right honourable friend the Chancellor said yesterday that he was considering the ideas put forward by the FSB.

[The Deputy Speaker (Baroness Garden of Frognal) (LD)]

My Lords, we now come to the 30 minutes allocated for Back-Bench questions. I ask that questions and answers be brief so that I can call the maximum number of speakers.

--- Later in debate ---

[Lord Agnew of Oulton (Con) [V]]

The noble Baroness will know that the Government are not in favour of a people’s QE. The QE that has happened this year has been more effective than the QE in the 2008-09 crisis; at least in this situation the money has gone directly into our economy to solve and help the problem, whereas in 2008-09, as far as anyone has ever been able to explain it to me, at least half the money left the country. We are learning, but there is a great deal of nervousness about something such as a people’s QE, because being able to print money without any comeback is almost too good to be true. Indeed, at the weekend, I bought a book by Ray Dalio on debt crises in history to try to understand more about this, because I feel we need to be very cautious about borrowing more and more money.

[The Deputy Speaker (Baroness Garden of Frognal) (LD)]

My Lords, the time allowed for this Statement has now elapsed. I apologise to the noble Lords, Lord Walney and Lord Holmes of Richmond, that we did not have time for their questions.