Finance (No. 2) Bill

Debate between Lord Bates and Lord Brooke of Alverthorpe

2nd reading (Hansard): House of Lords & 3rd reading (Hansard): House of Lords & Committee: 1st sitting (Hansard): House of Lords & Report stage (Hansard): House of Lords
Thursday 8th March 2018 Lords Chamber

[Lord Brooke of Alverthorpe (Lab)]

My Lords, could it be perhaps that noble Lords wish to speak in the next debate, which they see as more important?

[Lord Bates]

That is one possible explanation, but your Lordships have always been assiduous in their attention to matters such as the Finance (No. 2) Bill before us.

Let me try to address some of the points that were raised. The first point was on the argument about growth. We were the joint fastest-growing major economy just as recently as 2016. Of course, there has been a level of uncertainty as a result of the British people’s decision to exit the European Union; that is understandable and most people would recognise it. However, I do not see 1.7% as being a miserable or pathetic rate of growth, or that other OECD competitors with rates of 1.9%, 2% and 2.9% are experiencing extraordinary rates of growth. We entered into this cycle of growth out of the recession of 2008-09, much earlier than others. Therefore, we are at a different stage of growth. But to be able to say that we have grown for 20 consecutive quarters—five years of growth—and that manufacturing has grown for eight consecutive months, which is the longest continuous streak for 30 years, is surely reason for a degree of optimism.

The noble Baroness, Lady Kramer, asked about NHS funding. The Budget provided an extra £6.3 billion of new funding for the NHS, and we are committed to increasing the NHS budget by a minimum of £8 billon in real terms over the next five years. This is a significant first step towards that. The NHS is seeing over 2.9 million more A&E patients every year compared to 2010 and treating 57,000 more people every year for cancer, giving the UK its highest ever cancer survival rate. The noble Baroness asked whether we would have a hypothecated tax for health. Of course, we have such a tax in the sense that 20% of NIC receipts go directly towards the National Health Service.

On the point about housing provisions not bringing about changes, if the measure on stamp duty were taken alone, that might well be true, but it will help a million first-time buyers. Surely that has to be welcomed. In the wider context, the fact that employment is at almost record levels, with 3 million more people earning a salary than in 2010, must also be helpful for the housing market, because it means they have a salary with which potentially to buy. But that is not enough, and it is why we said that stamp duty was one element of that. Another element was to go towards our aspiration of building 300,000 new homes each year.

Let me turn to investment—I think the noble Baroness said that business investment had “fallen off a cliff”. Again, that might be overstating it a little. Business investment contracted by 2.6% in the year to the EU referendum, but grew by 2.5% in the year since. The OBR forecast is for business investment to grow by 2.5% in 2017 and 2.3% in 2018-19, which is a different approach. A key element of that was extra funding of £31 million for the productivity investment fund. That will make a significant contribution, as will businesses investing in themselves, which is the most successful form of business investment. The corporation tax rate has fallen from 28% to 19%, which means that small, medium-sized and large businesses have more money to invest in their own businesses and their own futures.

The noble Lord, Lord Davies, referred to the equality briefing. It was under this Government that we became one the first countries to introduce gender pay gap reporting. The gender pay gap for full-time employees is at a record low. Building on this, the Budget announced steps to boost female enterprise and innovative trials to support women returning to work. The number of women in work is at a record high of 15 million, an increase of 1.4 million since 2010, of which 80% were full-time. The gender pay gap for full-time employees is at a record low of 9.1%.

There are reasons to recognise that we need to be prepared to strengthen the economy to make more it competitive internationally so that we make a success of Brexit for Britain. The people who do that will be the workers and businesses of this country. This Bill strengthens measures to help them by reducing their taxes, increasing incentives to invest—especially in knowledge-intensive industries—and helping young people to achieve their aspiration of getting on to the housing ladder. These are all reasons why I am happy to commend this Bill to the House.

Sterling: Euro Exchange Rate

Debate between Lord Bates and Lord Brooke of Alverthorpe

Monday 9th October 2017 Lords Chamber

[Lord Bates]

I acknowledge the noble Lord’s great professional experience in economics, but I am saying something slightly different. I am not saying that we do not pay attention to that and do not watch it at all; I am saying that the way in which it has been configured, through successive Governments, is such that this is a matter for the Monetary Policy Committee of the Bank of England to respond to. Where inflation rises above 3%—its target is 2%—it has to respond. Where it sees matters which are causing concern, it can choose to cut interest rates—as it did after the referendum, to historically low levels of 0.25%. We are not saying that we do not have any policy; we are saying that we have a core set of policies which the Government are responsible for and we are acting on them.

[Lord Brooke of Alverthorpe (Lab)]

Will the Minister explain to the House why we have been downrated?

[Lord Bates]

If someone wants a historical lesson on the accuracy of the ratings agencies in making predictions, the events of 2008-09 might raise some question as to what they were doing then. We are talking about a downgrade of one notch. That reflects some concerns that they have about the transition period as we exit the European Union. They are perfectly entitled to say that. We are saying that we have a clear plan as to how we want that exit to happen, we want it to happen as soon as possible and we believe that the prospects for this country thereafter are very positive indeed.

Public Sector Pay Cap

Debate between Lord Bates and Lord Brooke of Alverthorpe

Wednesday 5th July 2017 Lords Chamber

[Lord Bates]

Not for the first time, I am happy to stand corrected by my noble friend Lord Tebbit.

[Lord Brooke of Alverthorpe (Lab)]

My Lords, I will return to the Minister’s point about productivity. I have raised questions previously about the extent to which public servants are being encouraged to work and change their productivity and to find ways in which they might be rewarded. Can the Minister say whether any instructions are being sent to the pay review boards about this, to search for better productivity? There may be an opportunity for more money to be paid to public servants if productivity can be linked to their performance, and this may be a way out of the impasse we find ourselves in.

[Lord Bates]

We look at that constantly. When I was at the Home Office we looked at that with regard to the police, as reducing bureaucracy improves practices and efficiency within the police force. We were able to maintain levels of front-line policing while at the same time we saw crime falling to record lows. So all these things can be looked at and improved.

Emergency Services: Central London

Debate between Lord Bates and Lord Brooke of Alverthorpe

Wednesday 18th November 2015 Lords Chamber

[Lord Brooke of Alverthorpe (Lab)]

My Lords, is the noble Lord aware that the public worry particularly about security issues and riots? In 2011 we had riots in London, and according to the Met Police we barely managed to get by. Last week, the Home Secretary announced that police forces could soon be without their own firearms units and should instead be moving towards creating regional firearms units. Given some of the transport difficulties we have in London when getting from point A to point B, are these regional units going to be effective if we are hit by big riots or security issues?

[Lord Bates]

The armed side of things, a point referred to by the noble Lord, Lord Harris, is something on which the national policing unit liaises with the various chief constables and police and crime commissioners to check that the provision is adequate. I understand that the number of trained firearms officers is something that the Metropolitan Police Commissioner is discussing specifically with the Home Office at this time, in response to the Paris attacks.

Psychoactive Substances Bill [HL]

Debate between Lord Bates and Lord Brooke of Alverthorpe

Tuesday 30th June 2015 Lords Chamber

[Lord Bates]

That is true. I see my officials in the box becoming terribly nervous, as I am jousting way out of my depth here and I should just stick to the script. The point which I was trying to make was that we are dealing in this Bill with a new menace, where there are no controls. People of any age can go into a head shop and procure products which are designated as plant food or as not fit for human consumption. There is no supervision of their manufacture; nobody is required to produce an ID card; and they are unregulated. We have explored different ways of dealing with them and have come down on the side of a blanket ban. I will leave it to the Committee to deduce whether, if alcohol were to be introduced into society today, we would take a different approach. That might be as close as I can possibly get to addressing that.

Let me put on the record some remarks about the Government’s position on alcohol. Alcohol-related harm is estimated to cost society more than £21 billion a year. This figure includes the £11 billion cost of alcohol-related crime and £3.5 billion in costs to the NHS. The harm caused to health is clear. Alcohol misuse is one of the three biggest lifestyle risk factors for disease and death after smoking and obesity. In 2013, more than 6,500 deaths in England were due directly to alcohol consumption. There has also been a steady increase in the number of adults accessing specialist alcohol treatment services, from just over 100,000 people in 2008-09 to nearly 115,000 people in 2013-14.

Alcohol is also a key driver of crime. In particular, it is strongly associated with violent crime. In 53% of violent incidents, victims perceive offenders to be under the influence of alcohol. This is clearly unacceptable.

We can all agree that alcohol, when consumed excessively, is a dangerous substance, which is why the sale of alcohol is tightly controlled under existing legislation. However, when used responsibly, alcohol plays an important social part in our communities. More than £10 billion is raised each year in alcohol duty and more than £38 billion worth of alcoholic beverages were sold in the UK in 2011. Almost 2 million jobs in the UK are said to be linked to the alcohol industry in some way.

The Government’s alcohol strategy, launched in 2012, promoted targeted action to reduce crime and health problems caused by alcohol without disproportionately affecting responsible drinkers. Local communities, agencies and businesses are best placed to identify and deal with alcohol-related problems in their area. The Home Office has worked with 20 local alcohol action areas to tackle the harms caused by excessive alcohol consumption. These areas worked on initiatives to strengthen local partnerships and share innovative ideas that work. Some of the areas which looked at ways to reduce alcohol-related health harms also explored the evidence and local processes that would be required to introduce a health-related licensing objective to address alcohol-related health harms caused by high density of premises. The project ended in March, and Home Office officials are collating the learning from the work that took place in each of the areas with a view to sharing it more widely in due course.

The alcohol industry has an important part to play, too. The Government challenged the industry to take action as part of the public health responsibility deal. The industry has taken a number of positive steps, such as reducing the number of alcoholic units sold and putting more information on labels—though not as much as my noble friend Lord Blencathra would ask us to, probably for the reasons that he alluded to. In addition, the Government have asked Dame Sally Davies, the Chief Medical Officer, to oversee a review of the alcohol guidelines to ensure that they are founded on the best science and help people at all stages of life to make informed choices about their drinking. The review is under way and we expect consultation on new guidelines to take place from the autumn.

There have also been government-led initiatives on alcohol and drug prevention in schools. In March 2013, the Department for Education launched a new drug and alcohol information and advice service for schools, providing information and resources on what works and assisting local areas to choose interventions which are right for their circumstances. The Personal, Social, Health & Economic Education Association has produced a revised programme of study based on the needs of today’s pupils and schools which includes alcohol and drug education. In February 2015, Public Health England launched the Rise Above website, helping to empower young people to make positive choices about issues that have a profound impact on their health. In its first two months, the site received more than 250,000 visits.

Since the alcohol strategy was launched, there has been a reduction in the level of alcohol-related violence. Consistent with trends in overall violent crime, there has been a 34% fall in the number of violent incidents perceived as alcohol related since 2004-05. There have also been reductions in the level of binge drinking and in the number of 11 to 15 year-olds drinking alcohol. The Government have sent a strong message that selling alcohol to children is unacceptable, and there is now an unlimited fine for persistently selling alcohol to children.

Looking ahead, this Government are committed to building on the successes of the alcohol strategy to tackle alcohol as a driver of crime and to supporting people to stay healthy. When misused, alcohol is undoubtedly a harmful substance, and it is right that its availability is properly regulated and that we tackle the health and crime-related issues that arise when people drink to excess. But for most of the population, alcohol is not a dangerous psychoactive substance which should be subject to the blanket ban provided for in the Bill. I hope that, having prompted this timely debate, my noble friend will be content to keep alcohol as an exempted substance for the purpose of the Bill and consider withdrawing his amendment.

[Lord Brooke of Alverthorpe]

I would be grateful if the Minister will respond to the points that I made about Palcohol, which is quite different from what we have been debating today.

[Lord Bates]

The noble Lord is right. We will go back and look again at those Written Answers. We are alert to the risk of powdered alcohol and are actively looking at how best to meet this challenge. However, we are not persuaded by this amendment. We are alert to the problem and are looking at it. I will be happy to meet with the noble Lord, together with officials, if he has new evidence to share with us about how the problem of powdered alcohol is being tackled in other countries and if and how it is being used in this country.