Economy Update
Debate between Baroness Penn and Baroness Neville-Rolfe
Baroness Neville-Rolfe (Con)
I have a couple of concerns about wider financial sustainability and, if I go too wide, perhaps my noble friend could write to me. The first is on monetary policy, picking up on what the noble Lord, Lord Sikka, said. How are we going to get inflation down? The Chancellor seems to be leaving this to the Bank of England, but it has been very slow to increase interest rates or stop QE—it has now done that—and it does not have any proper monetarist economists on the MPC, so I am not quite clear how inflation is going to go down. The second thing, which is also perhaps a little broad, is that 1 million non-British people have arrived in the UK in the last year. I would be interested to know how much of the much-needed aid that has been announced today will in practice go to them.
Baroness Penn (Con)
My Lords, on my noble friend’s first point, she tempts me to comment on the operation of monetary policy by the independent Bank of England. The only comment I will give is this: since control of monetary policy was taken out of the hands of politicians 25 years ago, inflation has averaged precisely 2%. On my noble friend’s second point, I do not have those figures. I am not sure that they would necessarily be available, but I am happy to find out. If they are, I can write to her and supply them.
Skills and Post-16 Education Bill [HL]
Debate between Baroness Penn and Baroness Neville-RolfeThursday 15th July 2021
(3 years, 4 months ago)
Lords ChamberRead Full debate Skills and Post-16 Education Act 2022 View all Skills and Post-16 Education Act 2022 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 5-III(Rev) Revised Third marshalled list for Committee - (15 Jul 2021)
Baroness Neville-Rolfe (Con)
I have a quick question for clarification. I think what the Minister is saying is that she wants quality of apprenticeships, not quantity—for example, that level 2 apprenticeships are a thing of the past. I was saying that I am rather sorry about that, but I would like to be clear, either now or before Report, exactly what the direction of travel is on the lower grades. I completely support those doing level 6 including even the stonemasons , but I think that there is a place, especially among youngsters—those between 16 and 23 years old—whom we are trying to get to do apprenticeships, to do something perhaps a bit less sophisticated that brings discipline and the sense of attainment that apprenticeships can bring.
Baroness Penn (Con)
My Lords, I believe the Government are aiming for quality and quantity when it comes to apprenticeships. On the noble Baroness’s specific question about lower-level apprenticeships, I will ensure that I write to her with that specific information before Report.
Covid-19: Economic Costs
Debate between Baroness Penn and Baroness Neville-Rolfe
Baroness Neville-Rolfe (Con)
My Lords, it is a pleasure to be here in the House and I beg leave to ask the Question standing in my name on the Order Paper.
Baroness Penn (Con)
My Lords, in March the Government ordered the closure of certain sectors to control the virus, save lives and protect the NHS. Alongside this, the Government delivered an unprecedented package of economic support. The Government have set out a phased approach to reopening our economy to minimise the risk of a second peak of the virus. Public Health England, the Joint Biosecurity Centre and NHS Test and Trace constantly monitor levels of infection across the country and will work with local authorities to implement additional measures if needed.
Baroness Neville-Rolfe
My Lords, it is a great sadness to hear of the retirement of the noble Lord, Lord Darling. While I welcomed the Chancellor’s unprecedented package, the paper cited in my Question and UK experience in recent months show that the cost of the severe restrictions that we have imposed for medical reasons are large—indeed, much larger than the benefits. Does the Minister agree that the paper makes a strong case that the recent lifting of lockdown restrictions has been amply justified and that future measures adopted to counter any flare-up of infections should be carefully targeted rather than general, both geographically and of course as regards the protection of vulnerable populations?
Baroness Penn
My noble friend is absolutely right that, going forward, we want to use all the tools available to us to implement a targeted response to any local outbreaks. That would be first at an individual level to break the chain of transmission. Where that is not possible and there are local outbreaks, we will use the test and trace system to work with local authorities and local public health directors to contain the virus in that way. The national measures remain available to us, but we would not want to use them again.
Economic Outlook and Furlough Scheme Changes
Debate between Baroness Penn and Baroness Neville-Rolfe
Baroness Penn
The noble Lord will be aware of my previous answer on the two-metre rule. In our road map for reopening the economy, we have been able to take important steps forward—for example, the reopening of non-essential retail this Monday. We encourage people across the country to be aware that, when we take such steps to reopen, it is then safe to go out and support their local high street and their local economy.
Baroness Neville-Rolfe (Con) [V]
Building on what my noble friend the Minister just said, does she concur with the view that we have now reached the stage—admittedly, slowly and fitfully—for normal economic life to restart? Does she agree that we should be wary of extending special schemes such as furlough for too long because of their huge cost and the inevitable disincentive and perverse effects?
Baroness Penn
My noble friend is right that there is a balance to be struck with such schemes. The pathway that we have set out for the gradual contribution of businesses to the costs of furloughed employees, and the ability to bring them back to work flexibly and for as many hours as they need, strikes the right balance in that scheme.
Covid-19: Furloughed Space Grant Scheme
Debate between Baroness Penn and Baroness Neville-Rolfe
Baroness Penn
The noble Lord will understand that that kind of question is exactly the type of thing the review will look at.
Baroness Neville-Rolfe (Con) [V]
My Lords, I declare my interests as set out in the register. I agree that property costs are a major issue for the retail and hospitality sectors. But as I have been saying for many weeks, the biggest concern affecting the ability of retail, including restaurants and pubs, to open economically is the two-metre rule. Perhaps I may press the Minister yet again for a speedy review of that and, over the longer term, as others have said, for a rebalancing of the business rates regime so that it bears less heavily and unfairly on physical outlets at a time of digital explosion?
Baroness Penn
The Government are very cognisant of the impact of the two-metre rule on businesses and it is kept under constant review. The biggest support we can give businesses is to bring transmission of the virus down. That will allow us to take steps forward out of lockdown, as we have been able to do with the opening of non-essential retail outlets today.