Sterling: Rise in Yields on 30-year Gilts

Baroness Kramer Excerpts

Tuesday 14th January 2025 Lords Chamber

[Lord Livermore (Lab)]

As the noble Baroness knows, financial markets are always evolving so it is a long-standing convention that the Government do not comment on specific financial market movements. She will also know that the Chancellor has commissioned the Office for Budget Responsibility to carry out an updated economic and fiscal forecast for 26 March, which will incorporate the latest data. Only the OBR’s forecast can accurately predict the effect on the public finances of any changes in financial markets or the economy, and I will not pre-empt it. However, there should be absolutely no doubt of our commitment to economic stability and sound public finances. That is why meeting the fiscal rules is non-negotiable.

[Baroness Kramer (LD)]

My Lords, the issue is one of confidence in the British economy. Today, Shevaun Haviland, director-general of the British Chambers of Commerce, called again for quick action to speed up the business rates review, green-light infrastructure projects and build trade, especially with the EU. Do the Government recognise that that kind of leadership and tangible near-term action, rather than long-grass proposals, will give confidence back to the UK economy? Will they take up that challenge for near-term action?

[Lord Livermore (Lab)]

We absolutely will. I completely agree with the noble Baroness. I met Shevaun Haviland last Thursday and we had a very constructive conversation about the measures that the British Chambers of Commerce wants to see to grow the UK economy, which are exactly the same measures that we want to see. The noble Baroness is absolutely right that growth was one of the biggest failures of the previous Government. We are determined to turn that around, which is why we are going further and faster. We are reforming planning, pensions and skills, all of which will significantly boost growth in the UK economy.