Consumer and Personal Debt

Debate between Lord Bates and Lord Kinnock

Monday 23rd October 2017 Lords Chamber

[Lord Bates]

The report referred to earlier contained the staggering statement that more than 40% of Britons have less than £100 in savings as a buffer before they get into debt. That is one reason why my noble friend will be pleased to know that we have established the Help to Save scheme. It will help 3.5 million people save £50 per month over two years. If they do that, the Government will give a 50% grant, which represents a very substantial rate of return to encourage saving.

[Lord Kinnock (Lab)]

My Lords, does the Minister recognise that in our debt-dependent economy, average household debt is 150% of average household income? Unsecured personal debt is now back above £200 billion. Council tax and utility bills are at record levels of default and 40% of mortgage borrowers in our country have no experience of dealing with an interest rate rise. In those perilous circumstances will the Minister join others in strongly urging the Bank of England not to increase interest rates, which would devastate families, businesses and the economy and do nothing to diminish inflation, which is in any case largely the result of the post-referendum devaluation of the pound?

Aid and Trade

Debate between Lord Bates and Lord Kinnock

Monday 28th November 2016 Lords Chamber

[Lord Bates]

I can confirm that, and I pay tribute to my noble friend for his work as the Prime Minister’s trade envoy to Rwanda and Uganda, as I do to all our trade envoys who carry out that important task around the world. If you compare 1990 to 2010, the number of people in extreme poverty has reduced by 50%. That has not been achieved through aid flows; it has been achieved through aid flows directed at improving economic development, which then lifts people out of poverty. That remains our aim, and trade is an important element of that.

[Lord Kinnock (Lab)]

My Lords, can the Minister confirm reports that the Government are to quadruple, to £6 billion, funding for CDC, formerly the Commonwealth Development Corporation? If so, will this not completely contradict existing stated government policies on combating poverty, increasing accountability and fighting tax evasion and tax avoidance, given CDC’s proven record of investing through tax havens?

[Lord Bates]

I can certainly say to the noble Lord that that is not the case in terms of tax havens. CDC is very clear that it does not use tax havens for investment, or to hide investments, but is a transparent international finance organisation that does tremendous work around the world. It invests in 1,200 companies, and safeguards and creates about 1 million new jobs. The CDC Bill, which has its Second Reading in the other place tomorrow, is simply to give the facility for that increased investment to take place, from £1.5 billion to £6 billion, because the former figure was put in place 17 years ago and we think it is time to look at it again. However, in order for that money to be drawn down, CDC will have to comply with the same rigorous business case requirements, on transparency of investments, that any other organisations would. I hope that that helps to reassure the noble Lord on that point.