Economy Update

Debate between Lord Agnew of Oulton and Lord Lea of Crondall

Tuesday 10th November 2020 Lords Chamber

[Lord Agnew of Oulton (Con)]

My Lords, the Government are in constant contact with the business community. They absolutely accept that the wealth creation engine of our economy is vital for us to recover from this pandemic. I share the noble Lord’s optimism about the vaccine. Of course, we need to be careful—we are not through the last hurdle yet—but it is certainly nice to have a little bit of good news occasionally. I have answered the point about the self-employed, raised by several other noble Lords. It is perhaps worth reminding the noble Lord that we have improved the universal credit system to try to provide a little more protection at that end of the system. We have also confirmed that those on mortgage holidays can extend to six months without any impact on their credit file.

[Lord Lea of Crondall (Non-Afl) [V]]

Three weeks ago, the Minister agreed with my remark—first made by the noble Baroness, Lady Kramer, I believe—that we have to integrate our employment assistance policy in relation to jobs that are affected by Covid-19 and jobs that are affected by Brexit. This task is becoming increasingly urgent. Looking forward, we will be in another crisis in which we are behind the curve. Will the Government commit to following up the Minister’s reply when I last raised this point and agree that there should be at least a White Paper or a Green Paper arising from the important talks in which, as the noble Lord, Lord Bilimoria, said, the TUC and the CBI agreed with the Government? Would it not be a good tripartite agenda for them to examine why there has been so much difference in how jobs have been affected by Covid-19 and how jobs have been affected by Brexit? The situation will be dreadful by the time we next have a Statement, as it is likely that Dover-Calais will shut down for many hours if we do not get a settlement, which is unlikely at this stage.

[Lord Agnew of Oulton (Con)]

The noble Lord raises a number of questions. Perhaps I may reassure him that the Government are in constant dialogue with business at all levels. He is right that we face some uncertainty on 1 January with the emerging exit from the transition period. It will certainly be helpful if we can get some kind of clarity within the next couple of weeks. However, he should also understand that, whether we get a deal or not, we are leaving on 1 January and we will be out of the customs union. The only real difference for businesses will be the tariff structures that exist and their preparedness for that. We are doing an enormous amount of work to support businesses in being ready for that, including work at the ports and inland sites to ensure that the disruption that the noble Lord is concerned about is minimised.

Economy

Debate between Lord Agnew of Oulton and Lord Lea of Crondall

Monday 28th September 2020 Lords Chamber

[Lord Agnew of Oulton (Con)]

My Lords, I think the noble Baroness is looking too narrowly at the comparison. If we summarise the total fiscal interventions of the various economies over the last few months, the UK contribution has been somewhere just under 11%, those of Canada and France under 10%, Germany’s about the same, and Italy’s is about eight and three-quarters. My point is that you should not look at any one of these individual interventions as the single solution; we have tried to aggregate them.

[Lord Lea of Crondall (Non-Afl)]

My Lords, as has been said by the noble Lord, Lord Monks, and the noble Baroness, Lady Kramer, there is a need to integrate policy that arises from Covid and policy that arises from Brexit. Does the Minister agree? This is described as a plan for the winter, and there is the danger of a Brexit without even a framework agreement with the European Union, as is the case with Switzerland.

[Lord Agnew of Oulton (Con)]

My Lords, I agree with the noble Lord that there needs to be integration. The overriding priority is to crank up the economy again; that is why we have created a group in Downing Street called Project Speed, which is designed to take hold of any opportunity that is being blocked in any way, to shake it and make it happen quicker. I remain optimistic, as I said in response to an earlier question, that we will resolve our difficulties with the European Union and will have some form of workable deal by the end of the year.