European Union: Regeneration Funding
Debate between Lord Ashton of Hyde and Baroness Wheatcroft
Lord Ashton of Hyde
I am getting plenty of suggested answers. In fact, we did not vote to leave the UK, we voted to leave the EU. We will have to transition to new long-term arrangements where the UK does not participate in EU programmes, but these are not simple decisions without long-term consequences. Given those complexities, the Government will make an announcement soon, which will provide clarity.
Baroness Wheatcroft (Con)
My Lords, will my noble friend tell the House when he expects to see an extra £350 million a week flowing into the National Health Service, or might that money have to go elsewhere?
Lord Ashton of Hyde
I am not sure I recognise the figure, but of course the Government remain committed to the NHS.
Tax Credits: Impact of Cuts
Debate between Lord Ashton of Hyde and Baroness Wheatcroft
Lord Ashton of Hyde
My Lords, the trouble with this subject is that we could sit swapping statistics all day long. The evidence for children in poverty is clear that work is the best way for families to stay out of poverty. Children in workless families are nearly three times as likely to be in poverty. So we are increasing pay and raising the personal allowance so that families keep more of what they earn. Work and education are what matters, so we are extending free entitlement to childcare to 30 hours for working parents of three and four year-olds.
Baroness Wheatcroft (Con)
My Lords, research by the Centre for Policy Studies showed that, by 2012, more than half the families in this country were net takers from, rather than contributors to, the state. Would my noble friend agree that that situation is both unhealthy and unsustainable, and that changes in tax credits are just a step towards redressing the balance?
Lord Ashton of Hyde
My Lords, this is a strategic change in how we deal with welfare in this country. It is worth bearing in mind the problem: we produce 4% of the world’s GDP and 7% of the welfare payments, and nine out of 10 families were on tax credits. I completely agree with my noble friend that we want to increase people’s pay and lower the amount of tax they pay so that all families benefit in this country.
RBS
Debate between Lord Ashton of Hyde and Baroness Wheatcroft
Lord Ashton of Hyde
First, if the Government thought that the price was to reduce in future, they would sell the whole lot now—and they are not. As the noble Lord mentioned, the Governor of the Bank of England said that the return would promote financial stability and a more competitive banking sector. He also said—this has not been mentioned—that avoiding the sale would have the potential to incur considerable net costs to the taxpayer, further delaying the start of a sale.
Rothschild’s advice also said that by starting the sale now,
“the government will increase the free float which should in turn improve the marketability of the remainder of its shareholding”.
It will also send,
“a strong signal that RBS is on the road to recovery and that its reprivatisation has begun may also bring further benefits to the bank and therefore to the taxpayer as a shareholder”.
Currently, the:
“Market conditions for financial assets and bank shares are … good”.
The overall accumulation of that advice is that, in the absence of unforeseen circumstances, taxpayers can comfortably expect to secure proceeds from their interventions in the banks that exceed the money they put in.
Baroness Wheatcroft (Con)
My Lords, there was a stage when Governments owned travel agencies and steelworks, not very profitably. It is not right for Governments to own those businesses and it is not appropriate for Governments to own banks. I am delighted to hear that the Government are making a start—probably only a small one—in exiting RBS. No doubt, the bank will thrive more in the private sector. Would my noble friend agree with me that at some stage it would be desirable for the customers of the Royal Bank of Scotland to be offered shares in the bank?
Lord Ashton of Hyde
They have been offered an ability to participate in the purchase. The Chancellor said that although the first tranche will be done on an institutional basis because of the complex investment case, there is no reason why customers and taxpayers, importantly, should not be able to participate in the sales at a later date, and I very much hope that that will happen.