Replacement of the Chancellor of the Exchequer

Baroness Kramer Excerpts

Tuesday 18th October 2022 Lords Chamber

[Lord True (Con)]

My Lords, on the question of mortgages, everyone will be sensible to the position of those seeking to buy—I have a son seeking a mortgage at the moment—in conditions where interest rates are rising, which they are internationally. On the more general question, the Chancellor is clear that the Government will need to take some very difficult decisions on spending and tax to place the public finances on a sustainable footing. Sound public finances are the bedrock on which future economic growth will be built. There is no trade-off here; the mini-Budget moved further and faster than the market expected, but this Government remain committed to growth and supporting families and the most vulnerable in society. We will continue to seek to perform that duty.

[Baroness Kramer (LD)]

My Lords, the change of Chancellor may have mollified the financial markets slightly and temporarily but ordinary people, frankly, are on the verge of being utterly distraught. In addition to soaring food prices, mortgages and rents, they have no idea at all what their energy costs will be after April next year. When will people know what the cost of energy will be after next spring, because they have to plan and think it through? It is also crucial for businesses to know as they sign contracts. Also, how much will the typical individual be paying in bills and additional public service cuts to cover the costs of the permanent scarring and damage that the Government’s appalling handling of the last few weeks has caused to the UK economy?

[Lord True (Con)]

My Lords, apart from the rhetoric, the main part of the noble Baroness’s question was on energy prices. I hope that your Lordships have heard with delight that a Bill, for which I expect the support of both parties opposite, has been presented to the House on which we will debate these matters in some detail.

On the specifics, I say that continuing with the planned level of support between now and 2023 will remain a landmark policy. It will support millions of people through a difficult winter and means that they will not have to face bills as high as they would have been. A Treasury-led review has been announced into how we support energy bills beyond April next year; its objective is to design a new approach that will cost the taxpayer significantly less than planned while ensuring enough support for those in need, which I think all noble Lords would like to see. Equally, any support for businesses will be targeted to those most affected. This new approach will better incentivise energy efficiency. However, it is important to underline that the support with energy bills that my right honourable friend the Prime Minister so swiftly announced is going ahead, and what is being provided between now and next April will not change.