Alternative Investment Fund Managers Regulations 2013
Debate between Baroness Penn and Lord Howell of Guildford(1 year ago)
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Baroness Penn (Con)
My Lords, some of the issues that the noble Lord sets out are why it is important to take forward the programme of reform in a measured way that takes into account the interests of all involved in the sector, whether industry or consumers, and makes sure that we have proper consultation in everything that we do.
Lord Howell of Guildford (Con)
My Lords, I think the bottom line of this Question is how to get trillions invested in our pension industries back into British enterprise and investment again. At one stage this was considerable, at about 60%, and it is now down to 40%. Is this not a matter of prime urgency in getting the economy really moving again? Can my noble friend outline the key steps she thinks should be taken, or are being taken, to get our pensions trillions back into British industry in a massive way?
Baroness Penn (Con)
My noble friend is absolutely right about ensuring that pension funds are invested in the future of British industry. In fact, this was the theme of my right honourable friend the Chancellor’s Mansion House speech this year. He set out a number of reforms that the Government are taking forward to support this. There was rapid consultation on a number of those areas, and we expect further updates at the Autumn Statement.
Bank of England: Interest Rate Policy
Debate between Baroness Penn and Lord Howell of Guildford(1 year, 4 months ago)
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Baroness Penn (Con)
The Bank of England is accountable to both the Government and Parliament. The noble Baroness referred to a report being done by the Economic Affairs Committee in this House. I am sure we will pay close attention to the outcomes of that.
Lord Howell of Guildford (Con)
Has it occurred to my noble friend’s Treasury colleagues that the stream of increases in Bank of England interest rates is both deflationary, obviously, and inflationary, in that every 1% increase in the interest rate adds between £15 billion and £20 billion to government debt servicing? Also, since the Government have up to £30 billion or £50 billion per increase in the RPI level, any impact of these interest rate increases on RPI further increases government spending. We really are looking at a double-edged sword. Other, more direct measures are obviously needed to reduce RPI, the pressure for pay demands and all sorts of other inflationary effects.
Baroness Penn (Con)
While I will not be tempted by my noble friend to comment on the conduct of monetary policy, I agree that, in the context of high inflation, fiscal responsibility and keeping government borrowing under control are absolutely essential. That is why the Government are committed to that.
IMF Economic Outlook
Debate between Baroness Penn and Lord Howell of Guildford(1 year, 9 months ago)
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Baroness Penn (Con)
I believe that, last week, Tony Danker also welcomed a speech by my right honourable friend the Chancellor of the Exchequer that set out his vision for growth in the UK, looking at the sectors that we are most competitive in, setting out proposals for new regulatory freedoms in those sectors and investing in the drivers of our economy, such as education and enterprise.
Lord Howell of Guildford (Con)
My Lords, we ought to add a bit of balance to this discussion and note that the report ended with a comment that Britain was “on the right track”—not that we should place too much weight on the views of the IMF either way, because its record has not been too good. Has the Minister noticed a report from the BBC this morning that it is very worried that its interviewers, editors and staff are not sufficiently apprised of the technicalities and the understanding of modern economics and modern economic trends, and that it is going try to do something about it? Would she encourage it to do something? The impression that invariably pervades the morning programmes—not only on the BBC but others as well—in response to this kind of report is that everything is going wrong. Of course, there are things that need repairing, but the bias—not a political bias between left and right—is between pessimism and optimism, which nearly always comes out on the pessimistic side, so we have a lot to learn and we should encourage them to learn it.
Baroness Penn (Con)
I did note the report this morning, and, of course, impartiality is key to the BBC. The report is very interesting but, obviously, taking forward its recommendations is a matter for the BBC, and I believe that it is going to take them forward.
Wagner Group: Sanctions Regime
Debate between Baroness Penn and Lord Howell of Guildford(1 year, 10 months ago)
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Baroness Penn (Con)
The Government of course listen carefully to the views of all parliamentarians on this matter. Any decisions on these cases are taken within the legal framework that they need to be taken within.
Lord Howell of Guildford (Con)
My Lords, I am sure that my noble friend will appreciate the strength of feeling she has heard from the interventions so far. I think we are coming across our old friend non-joined-up government. It seems incredible that the departments concerned were not able to co-ordinate against a clearly identified enemy—the Wagner Group. Would the Minister accept that we are, in a sense, on a sort of war footing? It is a modern kind of war, a different kind of war, but in the past this would never have been allowed. Can she take back that message and make sure we do not do anything further to succour our enemies?
Baroness Penn (Con)
I absolutely agree with my noble friend on the need for co-ordination across government. Obviously different regimes, such as the sanction regime and the proscription regime, have different legal frameworks. I am sure that across government we are working to look at all the tools we have available to ensure that groups supporting the atrocities we see in Ukraine are stopped and that we use the powers we have to intervene on their actions.
Wales: Additional Financial Resources
Debate between Baroness Penn and Lord Howell of Guildford(1 year, 10 months ago)
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Baroness Penn (Con)
My Lords, if the noble Lord is talking about levels of inflation, they have been largely driven by external factors such as Russia’s invasion of Ukraine. As I have already reassured the House, in addition to the fact that the 2021 spending review settlement was the largest since the devolution Act, it is also growing in real terms this year and over the spending review period, even taking into account that higher level of inflation.
Lord Howell of Guildford (Con)
My Lords, the late Lord Barnett of course disliked the Barnett formula intensely; he realised it had many faults and clearly needed improving. How do the Government feel about suggestions from some quarters that there should be much more fiscal devolution and that the devolved nations and areas should raise their own funds through new taxation? Is that a good idea?
Baroness Penn (Con)
My Lords, in the latest round of devolution to the Welsh Government, I believe they were given greater powers to raise taxes than previously. As I said to noble Lords, making use of those existing powers before looking to extend them further would be a sensible way forward.
Cross-Government Cost Cutting
Debate between Baroness Penn and Lord Howell of Guildford(1 year, 11 months ago)
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Baroness Penn (Con)
Can I reassure the noble Lord that these questions are considered in spending reviews? They are also considered as part of the process of collective agreement when new policy is made between the periods of spending reviews. The noble Lord mentioned the MoJ and the Home Office; they will grow by, respectively, 3.6% and 3.1% a year over this Parliament.
Lord Howell of Guildford (Con)
The noble Lord, Lord Bird, made a very sound and good point. Would the Minister recommend to her Treasury colleagues that the “10%/slash everything” approach to public expenditure used in recent times is not the best way of controlling and curbing the size of the public sector, of improving its efficiency or of cutting out waste? There are techniques that have been tried in the past, namely the policy programme budgeting system, learned from the original Bureau of the Budget in America 40 years ago, and which should be revisited. Such techniques are much more effective in delivering real, effective, cost cuts, which take into account all the side effects that can sometimes overwhelm the original attempt at economy.
Baroness Penn (Con)
My noble friend is right: we must ensure that when we undertake these exercises, we really are delivering efficiency and value for money gains, rather than short-term fixes for departments’ budgets that, in the long term, may create other problems. I can reassure him that no figure is attached to the current exercise; it is about working with departments to see where they can find efficiency savings to help them manage the pressures they are under.
Financial Inclusion
Debate between Baroness Penn and Lord Howell of Guildford
Baroness Penn (Con)
My Lords, there are existing obligations, which are enforced by the Payment Systems Regulator, but noble Lords will also know that the Government are committed to legislating to protect access to cash. Those measures will be included in the forthcoming financial services Bill.
Lord Howell of Guildford (Con)
My Lords, does tangible improvement include wider social ownership of assets—wider ownership of popular capitalism? At the moment, capitalism is not very popular at all. So maybe there should be some reinforcements to spread the benefits of capital, beyond those who benefit anyway because they have capital in the first place?
Baroness Penn (Con)
I agree with the sentiments expressed by my noble friend. Access to capital is something that should be offered to the widest range of people so that they can benefit from it.
Inflation
Debate between Baroness Penn and Lord Howell of Guildford
Baroness Penn (Con)
My Lords, we do not believe that windfall taxes are simple or easy, but we are also pragmatic, and we want to see energy companies which have made extraordinary profits at a time of elevated prices investing those profits back into British jobs and growth. If that does not happen, no option is off the table. When it comes to further help for families across the country that are facing real difficulty, the Government are looking very carefully and stand ready to do more.
Lord Howell of Guildford (Con)
My Lords, is it not time to go to the roots of this terrible energy price and inflation problem? Those roots are largely international; at this moment, there is ample gas around the world and ample oil capacity to offset Russian exports and bring prices very sharply down. Should we not make it a diplomatic and foreign policy priority to bring pressure on those who could increase capacity quickly to do so, and to do so in the interest of the consumer, prices and indeed the entire European situation—and the Ukraine situation as well?
Baroness Penn (Con)
My noble friend makes a good point. Of course, the Government have published their energy security strategy, which looks at the number of those issues. The point about international co-operation can also be very well applied to food security and food exports; I know that the Prime Minister and the Foreign Secretary have had conversations with their counterparts in recent weeks to look at what more we can do to ensure food exports, for example from Ukraine.