Economy Update
Debate between Baroness Penn and Viscount Younger of Leckie
Viscount Younger of Leckie (Con)
My Lords, I am sorry to interrupt the noble Lord, but I ask him and all noble Lords to keep their questions succinct, so that we can get the maximum number of Back-Benchers in.
Baroness Penn (Con)
I am not sure that I picked up the noble Lord’s questions there, but he did talk about the potential inflationary impact of this announcement and asked what the Government are doing to tackle inflation. I can say to all noble Lords that we have three tools available to us to combat and reduce inflation and we are using them all. First, we have strong, independent monetary policy, overseen by the Bank of England. Secondly, we have responsible fiscal policy from this Government. I am cognisant of the potential inflationary impacts of announcements such as these and that is why we are ensuring that the support we are putting in place is targeted, timely and time-limited. We will continue to take difficult fiscal decisions to ensure that we remain within our fiscal rules. Thirdly, we are taking an activist approach to supply-side reforms, which will increase our productive capacity, ease inflationary pressures and raise our long-term growth potential. I do not think the list of further taxes that the noble Lord said he wanted to apply would encourage more investment in our economy, which is what we need to see the growth that we all want and to support the record lows in, for example, unemployment that this Government have presided over.