EU: Future Relationship

Lord Bilimoria Excerpts

Wednesday 23rd September 2020 Grand Committee

[Lord Bilimoria (CB) [V]]

My Lords, as far back as February 2020, the European Commission laid out its negotiating position, covering general arrangements, values, principles and governance, economic arrangements, trade, level playing field guarantees, fisheries, security arrangements, law enforcement, judicial co-operation in criminal matters, foreign policy, security and defence. Then, in May, the UK published a draft free trade agreement in a series of separate draft agreements covering fisheries, air transport, civil aviation safety, energy, social security co-ordination, civil nuclear, law enforcement and judicial co-operation in criminal matters, the transfer of unaccompanied asylum-seeking children, and readmission of people residing without authorisation.

Between March and September, we have had eight rounds of negotiations. At the end of the eighth round, the EU’s chief negotiator, Michel Barnier, accused the UK of refusing to include indispensable guarantees of fair competition in our future agreement, while requesting access to our market and said that

“the UK has not engaged in a reciprocal way on fundamental EU principles and interests.”

The noble Lord, Lord Frost, the UK’s negotiator, said that the UK had

“consistently made proposals which provide for open and fair competition, on the basis of high standards, in a way which is appropriate to a modern free trade agreement between sovereign and autonomous equals.”

So what if there is no agreement? What if there is a so-called Australia-style agreement whereby we will trade with the EU on WTO terms? The Prime Minister said in early September that a trading agreement like Australia’s

“would be a good outcome for the UK.”

Can the Minister confirm that this is the case? We have of course also had the whole issue of the internal market. In his statement after round eight, Michel Barnier said that:

“The EU remains committed to an ambitious future partnership with the UK. This would clearly be to the benefit of both sides. Nobody should underestimate the practical, economic and social consequences of a ‘no deal’ scenario.”


I speak as president of the CBI, which has been urging both the UK and EU to renew efforts to get a deal. This is essential in order to protect people’s jobs and living standards amid one of the worst recessions in living memory. Time is running out. We have to avoid a cliff edge. This must be the utmost priority for both sides; the UK and the EU cannot afford a no-deal scenario, which would weaken the economies already impaired by the Covid-19 crisis. Business preparations on both sides have not only stalled but have gone backwards. Firms have had to use their stockpiles and reserves—previously built up in the run-up to the threat of no deal last year—to survive the pandemic. There is now next to no capacity to rebuild reserves while directing resources and attention to dealing with the impact of Covid-19 and now a potential second wave of the virus.

Over the last six months we have seen extraordinary levels of ambition, determination and collaboration between businesses and Governments across Europe. These efforts have helped weather the immediate impacts of the Covid-19 pandemic and must be redoubled for the challenges that lie ahead. This same level of determination and creativity is now needed by both the EU and the UK to deliver a Brexit deal for growth.

A deal will have tangible, positive benefits for firms employing thousands of people across Europe in industries such as advanced engineering, manufacturing, green technology and digital and cyber technologies—I could go on. It will also underpin economic recovery on both sides, protecting our younger generation and the future of our public services. Does the Minister agree?

A deal will form a foundation for a strong, growing relationship between the UK and the EU in the future. It will create space for both sides to focus on shared challenges, such as creating jobs, rather than needlessly adding red tape, extra costs and paperwork.

A deal will also be a catalyst to address the global challenges of our time, from tackling climate change at next year’s COP26, which we are going to be privileged to host, to strengthening international institutions, including the WTO, and global co-operation during the UK’s presidency of the G7. It will be crucial for the UK and the EU to work hand in hand to be at the forefront of these issues.

The CBI is committed to working closely with BusinessEurope—which we will continue to be a member of although we have left the European Union—and its sister federations to champion a strong and open Europe on the global stage. In short, the size of the prize is real. Ending years of division and delay by securing an agreement between the EU and the UK will help our economies during the biggest challenge of our generation.

This has been such a turbulent period, not least because of Brexit, but talks are on and the efforts to get a good deal must continue. Business cannot afford anything else. Amid all the noise of the negotiation, businesses in the UK and the EU remain clear that a good deal is essential. Let us not forget that a negotiated outcome is the official position of the UK Government. Can the Minister reassure us about this once again?

An agreement will be the foundation for post-Covid recovery across the continent. It will protect jobs under pressure from the pandemic by duty and quota-free trade, closer customs co-operation and easing the implementation of the Northern Ireland protocol. We must remember that the protocol was the compromise needed to avoid a hard border in Ireland. For Northern Ireland’s businesses and communities it must be implemented in an effective and sustainable way. For that, we need a deal.

A deal will provide a platform on which the UK’s world-beating services industry can continue to trade with its biggest market and stay competitive. It will also be a great fillip for UK exporters, allowing them to focus on R&D, not red tape. Getting a deal requires political leadership and compromise from both sides and is needed urgently in the coming weeks.

As I have said, the reality is that many businesses are still struggling to deal with the fallout from Covid. That is why getting the deal over the line is so important. It means a greater choice for consumers. It means prices of groceries do not rise during a recession. This is vital to help people who are struggling. It will allow businesses to concentrate on helping the Government’s levelling-up agenda. It means building more schools and hospitals, better-quality housing, and growing our economy through the creation of green jobs, and it will be a catalyst for the global challenges of our time. Ultimately, a deal with our biggest trading partner provides a platform on which future trade agreements can be built.

Businesses have shown extraordinary resilience over the previous four years—and over the past six months. We need this deal urgently in the interests of everyone, both in the UK and Europe.

[The Deputy Chairman of Committees (Baroness Barker) (LD)]

The noble Baroness, Lady Meyer, is not contributing, so I call the noble Lord, Lord Berkeley.

House of Lords and Machinery of Government: Consultation on Changes

Lord Bilimoria Excerpts

Wednesday 15th July 2020 Lords Chamber

[Lord True]

My Lords, I do not think I am going to be drawn on that one. I think that the Companion says that one is supposed to speak respectfully of the other place. However, I say to my noble friend that my right honourable friend Boris Johnson brought the other place close to the people by his devastating victory in the December election last year, which delivered a majority of 80 to the real people’s party.

[Lord Bilimoria (CB) [V]]

My Lords, Westminster is not only the mother of Parliaments; it is the mother of bicameral Parliaments. Would the Minister agree that, for purely practical purposes, the close proximity of both Houses side by side—whether for APPGs, committees or visiting Heads of State—is important and that they should be together, let alone the fact that the House of Lords has the greatest depth and breadth of expertise of any parliamentary Chamber in the world? Surely, being located in London—the greatest of the world’s great cities—is a huge advantage, as we have our financial capital and our government capital together. That is where the House of Lords should be based. Could he say who is behind this idea?

[Lord True]

My Lords, I repeat what I said yesterday. Of course, all the factors the noble Lord has mentioned have to be weighed and taken into account in any reflections on the future of our Parliament and the role of this House. At the moment, Parliament is operating remotely—as the noble Lord himself is—and it is not impossible. However, I am sure that all the factors mentioned will be considered.

Covid-19: UK-wide Discussions

Lord Bilimoria Excerpts

Tuesday 9th June 2020 Lords Chamber

[Lord True [V]]

My Lords, the Government are guided by science at all stages of the crisis; the advice we have given has been on that basis. The advice is constantly under review by SAGE, but I can give no guarantees as to when or whether any change will be announced.

[Lord Bilimoria (CB)]

My Lords, the Secretary of State for Health has assured us that all care home workers and patients will be tested. Can the Minister confirm that this has taken place throughout the United Kingdom? Is he aware that in Scotland, sadly, coronavirus deaths have now overtaken hospital deaths, with 46% of deaths in Scotland in care homes versus 29% in England and Wales? Surely the Minister agrees that testing patients and care workers in care homes throughout the whole of the UK should be an immediate priority for the Government.

[Lord True [V]]

My Lords, I cannot add to what my right honourable friend the Secretary of State for Health said, but I can underline one’s concern for every resident of care homes. As my right honourable friend said, that testing is available. He announced yesterday evening that the testing will be extended to a wider range of care homes, not only those for the elderly.

Income Equality and Sustainability

Lord Bilimoria Excerpts

Wednesday 6th May 2020 Lords Chamber

[Lord Bilimoria (CB)]

My Lords, the CBI, of which I am vice-president, was engaged in a project on structural inequality in the UK last year, culminating in the report Structurally Unsound in 2019. It noted that being from an ethnic minority background and suffering health issues can compound the inequality that you suffer.

I thank the most reverend Primate the Archbishop of York for his stellar service in his amazing career and I wish him a wonderful retirement. We shall miss him.

At the University of Birmingham, where I am chancellor, Karen Rowlingson, professor of social policy, mentioned that those with low incomes are more likely to suffer from Covid-19 and indeed, sadly, die from the virus. They are also more likely to see a negative impact on their incomes from lockdown than other groups in any recession that may come. If we can find ways to reduce income inequality, that will be crucial.

The City of Boston government has instituted a Covid-19 health inequities task force. Does the Minister think it might be a good idea for the UK Government to follow suit?

According to the IFS, after stripping out the role of age and geography, Bangladeshi hospital fatalities are twice those of the white British group, Pakistani deaths 2.9 times as high, and black African deaths 3.7 times as high. As the noble and right reverend Lord, Lord Harries, mentioned, key workers are at a higher risk of infection through the jobs that they do, and for carers the average wage is £8.19 an hour.

The Government have introduced a range of excellent measures—the job retention scheme, changing the rules for statutory sick pay, self-employment support—yet despite that almost 2 million people are now claiming universal credit, jobseeker’s allowance and employment support allowance. This is only going to get worse.

In coming out of the lockdown, the process of opening up should be mindful of inequalities. Will the Minister let us know whether the furloughing will be phased out and part-time working allowed?

The director-general of the CBI, Carolyn Fairbairn, said that when coming out of the lockdown perhaps most important of all is building back better. However difficult, the crisis has afforded us the chance to be radical. Tackling inequality must be paramount.

Economy: Update

Lord Bilimoria Excerpts

Tuesday 28th April 2020 Lords Chamber

[Lord Agnew of Oulton]

My Lords, I do not have that figure as I do not believe that that calculation has been made yet. It will depend very much on the timing and speed of exiting lockdown. The sooner we can exit, the less damage will be done, but we must balance against that the Prime Minister’s overriding concern for the health of the nation, not overwhelming the NHS and the nation’s morale if we were to get a bad second spike of the disease. It is a bit too early, but we will of course keep noble Lords informed of our thinking as it develops.

[Lord Bilimoria (CB)]

My Lords, I am sure the Minister is aware that Germany, as part of its bazooka €1.1 trillion package, is guaranteeing 100% of loans of up to €500,000 to its small and medium-sized companies and of up to €800,000 for those with up to 250 employees. The Swiss have given out 98,000 loans—six times more than the UK, and their economy is one-eighth the size of ours. They guarantee 100% up to 500,000 Swiss francs, delivered within 24 hours. As the Minister just told us, we have granted 20,000 loans under the CBILS, totalling £3.3 billion out of £330 billion. I reiterate what the noble Lord, Lord Forsyth, said; we are really grateful to the Chancellor for what he is doing, acting so swiftly six weeks ago with the vast range of programmes which now include the bounce-back loans. However, does the Minister agree that we desperately need our own 100% guaranteed CBILS loans up to £500,000? Yes, some checks would have to be made, but the Chancellor said in the Statement that he does not agree with that because he thinks the ordinary taxpayer should not bear the entire risk. However, surely it is better to do this now, to have companies existing and surviving now, rather than not having them and having instead the unemployment that will be created. We need to go from bounce-back to bazooka.

[Lord Agnew of Oulton]

I take on board the noble Lord’s point. Comparisons with other countries need to be done carefully so that one is comparing apples with apples. For example, the Swiss have not used a number of the other levers of support that we have used; this has been their main lever. Also, their furlough scheme requires employers to contribute one-fifth of the payments to the scheme, whereas in our country the furlough scheme removes that burden from businesses. In terms of the macro position, as I mentioned earlier, the Chancellor has announced support of up to 15% of GDP, which is a colossal sum of money, and he continues to be open-minded, which he demonstrated yesterday with the bounce-back loans, as to what further help the economy might need.

Referendums: Parliamentary Democracy

Lord Bilimoria Excerpts

Thursday 19th July 2018 Lords Chamber

[Lord Bilimoria (CB)]

My Lords, I thank the noble Lord, Lord Higgins, for initiating this debate. He talked about things being riddled with lies. The finances of the Leave campaign have just come to light, and there are people calling out for the whole thing to be rerun because of that. I congratulate my noble friend, whom I have known for many years, the noble Lord, Lord Pickles, on his excellent maiden speech; it was fantastic to hear his story. I also welcome the expertise of the noble Lord, Lord Anderson, my noble friend on the Cross Benches. I am sure that both noble Lords will make a phenomenal contribution.

The whole idea of referenda is that they are simple yes/no questions. The interpretation by the Prime Minister and the Government is that the people voted to take back control of our laws, our borders and our money and that therefore we will leave the single market and the customs union and there will be no more ECJ—simple, cut-and-dried red lines. We have had only three UK-wide referenda in our history, including the one in 2016. The 1975 referendum on the European Community was not a vote to join; we had already joined in 1973. The referendum was on whether or not we should stay in. Similarly, the AV referendum in 2011 was for no change, based on the idea that, “You know what you have with our current system; this is what you’ll get if you go for AV”. Then of course there have been eight referenda on devolution in Scotland, Wales and Northern Ireland.

We have to remember the results of those other two UK-wide referenda: in 1975 it was 67.2%, a two-thirds majority, while in the 2011 AV referendum the result was 67.9%, another two-thirds majority. What were we doing—were we asleep when we passed the referendum Act and did not insist on a two-thirds majority threshold? I am not advocating a written constitution but in every country that has one, if you want to change that constitution there is invariably a two-thirds hurdle, and Brexit means changing the constitution in a huge way. Referenda should be used only in very rare circumstances. The Constitution Committee has given some examples, which I shall come to.

In 1945, the Labour leader Clement Attlee responded to Winston Churchill’s wanting to hold a referendum to extend the wartime coalition by saying:

“I could not consent to the introduction into our national life of a device so alien to all our traditions as the referendum which has only too often been the instrument of Nazism and fascism”.


As we have heard from the noble Lord, Lord Higgins, Margaret Thatcher said they are,

“a splendid weapon for demagogues and dictators”.

Then Margaret Thatcher spoke about this whole concept of representative government, where elected representatives—not delegates of their constituents but representatives—make decisions in the interests of their constituents and the country as a whole. We keep hearing about the 17.4 million but what about the 16.1 million people who voted to remain? That is a huge minority. That is the other point about the representative system of democracy: it protects minorities and ensures that their interests are taken into account. Here you have the tyranny of the majority on a one-off vote with a permanent effect.

Look at the effect that that has on MPs. If you look at the list of what the Daily Mail calls “mutineers”—the rebel MPs, the brave Nicky Morgans and Jonathan Djanoglys—you can see that many of them have constituencies that voted to leave, but they believe that it is in the best interests of the country to remain. So this has really challenged the whole concept of parliamentary democracy. To top it all, people were given four months to decide on an issue of such complexity—from February to June 2016. Then there is the asymmetric reversibility of referendums. There is a big difference between the consequences of voting for the status quo and a vote for independence or withdrawal. A leave vote is irreversible, whereas with a remain vote you can always come back again and have a vote to leave.

Here is the crux of it all: I am told that it is undemocratic to challenge the will of the people. No, no—it is very democratic. In a normal electoral cycle, every four or five years you make a decision and, if someone wins by 50.1%, they have won. Five years later, as Keynes said—and even David Davis says that a democracy cannot be a democracy unless you can change your mind—you can change your mind and you can vote them out and have something else, after the facts have changed. That is real democracy, not holding people to something permanent. On top of that, you have the youngsters who were not allowed to vote. The demographics have changed in these two years; there are two years’ worth of 16 and 17 year-olds who are now eligible to vote—and there will be more by the time we come to next year.

Things have changed, the facts have changed and our economy has changed. It was the fastest-growing economy in the western world two years ago; now Europe is growing faster than we are. The timing of the referendum was absolutely wrong; the migration crisis was at its peak and it frightened people. And then there is the reason for the referendum. Why did David Cameron do it? It was for the right wing of his party and for UKIP. Things have changed. Where is UKIP today?

My conclusion to this is that, in having a referendum, we should have had a threshold. Now we have the consequence where there are three options. The first is that we may have a hard Brexit, which will be unacceptable to this Parliament and the people of this country. Secondly, we could have a soft Brexit, with the EEA option, which is where we might end up—the least-worst option. That might be acceptable. The third option is that we might end up remaining. In my view, there is no option, and we are headed for something—call it a second referendum, call it referendum part 2 or the people’s vote. That is most likely to happen and is probably the most democratic solution to the conundrum that we have brought upon ourselves.

Elections: Personal Data

Lord Bilimoria Excerpts

Wednesday 18th April 2018 Lords Chamber

[Lord Young of Cookham]

I was indeed aware of the report referred to by the noble Lord. It raises a really interesting question. Information technology is challenging the business model for election campaigns as we have traditionally known them: knocking on doors, leaflets and public meetings. That model is being challenged by the social media and to some extent being displaced by it. To the extent that social media can reach people who are alienated or bypassed by the traditional method of campaigning, that is a good thing. We have to ensure, however, that the legal framework within which we now operate is fit for purpose and that personal data is not misused. We should try to turn to our best advantage the fact that we are engaging people in the democratic process who previously were not so engaged.

[Lord Bilimoria (CB)]

My Lords, the questions being asked are about digital interference with elections and the Electoral Commission. Does the Minister think that the Electoral Commission is basically toothless, in that it cannot even police a message on the side of a bus about £350 million going to the NHS? Should it not have more powers to stop blatantly lying statements during elections and referenda?

[Lord Young of Cookham]

The Electoral Commission has been absolutely clear that it does not want to get involved in deciding whether a particular advertisement is truthful or not. It regards that as something fit for the political dialogue between the parties. If somebody believes that a claim is untrue, they are at liberty to denounce it, but I do not think that the Electoral Commission wants to get drawn into the truth or otherwise of political campaigns.

European Union (Withdrawal) Bill

Lord Bilimoria Excerpts

Tuesday 30th January 2018 Lords Chamber

[Lord Bilimoria (CB)]

My Lords, Professor Sir David Eastwood, the vice-chancellor of the University of Birmingham, where I am proud to be chancellor, wrote an article yesterday, entitled “Trump and Brexit have triggered two deep constitutional crises”. “Two years ago”, he says,

“a Trump presidency and a vote for Brexit were considered all but unthinkable. Now, two of the world’s oldest democracies are struggling to live with them, and their struggles are even more profound than they seem”.


He goes on to say that basically, since the Reformation, Parliament has always been sovereign and until the Brexit vote the broad parameters of the constitution, according to Walter Bagehot in the 1860s, have prevailed. When we have had referenda in the past, on the whole they have reflected the will of Parliament. However, David Cameron decided on this referendum and, for the first time, we had a Prime Minister and a country in turmoil, with Parliament—the vast majority of MPs and Members of this place—wanting to remain before the referendum and then a narrow result. Now, politics is on hold until Brexit is determined. Both parties are beholden to their more extreme wings, according to Professor David Eastwood, and the machinery of government is overheating and struggling to shape the Brexit deal.

Is this going to continue? The Government have put down the red lines of leaving the single market and the customs union. The EU has made the situation very clear. Yesterday, it said, “If you want a transition period, you can have it but you have to adhere to the free movement of people, you have to keep paying money in, and you have to keep having EU regulations and EU law”. So what deal will the Government be able to negotiate on that basis? Today, BuzzFeed News is reporting on the leaked government analysis of Brexit that says that Britain will be worse off in every scenario. That analysis looked at three scenarios: deal, no deal and a soft Brexit. In each case, Britain will be far worse off in every area. It says that the biggest negative is the UK’s decision to leave both the customs union and the single market.

We have had 3 million people from the European Union working here. In phase 1 of the negotiations it was said that they would be protected, but what about the future? They make up less than 5% of this country’s population. They are not a burden on this country. Without them, we would have an acute labour shortage, so we should be grateful to them.

I openly admit that I am a Eurosceptic in many ways. I dislike the European Parliament, I do not know who my MEPs are—I do not think that many of your Lordships do—and there is no accountability or responsibility. I think that the euro was a huge mistake—thank God we did not join it. I made a mistake with Schengen: I thought that we should have been a member, but now thankfully, from a security point of view, we are not. So we will never have a “United States of Europe”.

I have never been one for further European integration. We signed out of that. The EU is nowhere near perfect. It has huge faults but, looking at it on the whole, on balance we have done well out of it. We have had the highest cumulative GDP growth rate of any nation, including Germany—62%—since being a member of the EU. However, the sad thing is that even the OBR in the Budget has just said that, looking ahead, we will have a growth rate of less than 2% a year for five years—the lowest ever level.

We are the highest recipient of inward investment in Europe but, now, the Government and the Brexiteers are talking about going global. What is this “going global” nonsense? Fifty per cent of our trade is with the European Union. Another 20% on top of that is through the free trade agreements we have through the European Union, including, now, with Japan. That leaves 30%. As a businessman, am I going to give up 70% for 30%—and a 30% that I may never get? India and the Commonwealth account for less than 10% of our trade. Canada has a free trade deal with the EU but the EU accounts for only 10% of Canada’s trade. Its biggest trading partner is the United States—next door to it. India has nine free trade deals with countries around the world but not one is a western country. And what about the £8 billion that we have paid into the EU? I would pay that for the peace that we have had over the last few decades, including through NATO. As for sovereignty and taking back control, what a lot of nonsense. The laws that affect us in our day-to-day life are not the 20,000 regulations that the noble Lord, Lord Pearson, spoke about but the ones that we make here in this House every day.

I turn to this European Union (Withdrawal) Bill—or great repeal Bill, or whatever it is called. In the debate that we had last week on devolution, I challenged the Minister to explain how we are going to deal with the Northern Ireland situation. He did not have an answer. Phase 1 has just kicked the can down the road. Scotland will say, “We want to be treated on the same terms”. Can the Minister tell me how we are going to deal with Clause 11, to which the noble and learned Lord, Lord Hope, referred?

By the way, at the time of the referendum UKIP got 12.5% of the vote. Today, the figure is 1.8%, and let us not talk about its leader. What really upsets me is that Brexit has damaged our standing in the world and I see this all the time. I was with the Prime Minister of India earlier this month and I have seen India’s reaction to Brexit. We were flying before the referendum; now, look at Davos, where we were overshadowed by Macron and Trump. The whole world, except for Trump, thinks that we should remain in the EU.

In conclusion, virtually every speech today has made references to “when we leave the European Union” and “after Brexit”. Steve Jobs founded the most successful company the world has ever known—Apple. He said that changing your mind is a sign of intelligence. Keynes said:

“When the facts change, I change my mind. What do you do, sir?”


Even David Davis said:

“If a democracy cannot change its mind, it ceases to be a democracy”.


We have Juncker and Barnier—everyone—saying, “Stay on. We would welcome you staying on”. Even Farage has now spoken about a second referendum. Boris Johnson has said that there is now a danger that Brexit will not take place.

My message is this: we have to go through the motions of this Bill. We have to go through whatever we have to go through, but in a normal democracy you get a chance every five years to change your mind. We are not getting that chance, and in the two years that have already passed since the referendum was called, a lot has changed. We face many challenges: the NHS, our security, our police forces, our Armed Forces, our Army, which would not fill Wembley Stadium, our Navy and our entrepreneurship—fewer companies started last year than the year before. That is what we have to deal with, not this wretched referendum. We need to give the British people the chance to have their say, with all the facts—we can call it a second referendum; we can call it referendum part two—and Parliament must have the final say before any deal is passed on to the European Union. Will the Minister confirm that Parliament will have the final say?

Finally, at the Harvard Business School— of which I am proud to be an alumnus—I talked to Dr Deepak Malhotra, a world expert in negotiations. He has written an excellent paper on Brexit. He told me to read a book about the build-up of the First World War. He said, “Reading that book is like watching a train crash in slow motion. Karan, that is what Brexit is: a train crash in slow motion”. It is not too late to stop that train crash.

Electoral Spending Limits: Wales

Lord Bilimoria Excerpts

Wednesday 6th September 2017 Lords Chamber

[Lord Young of Cookham]

I am not quite sure where my noble friend is taking me with that question. The cost of the Electoral Commission is roughly £30 million a year. Like all public bodies at a time of downward pressure on public expenditure, it should seek economies in the way it runs its operations, but it has an important role to play in monitoring the health of our democracy and, where necessary, in enforcing the law on elections.

[Lord Bilimoria (CB)]

My Lords, in India, with 800 million voters in elections, the electoral commission is all-powerful during elections. It runs elections over a period of three weeks, using electronic voting in a very rigorous manner. Why can we not catch up with that over here? Secondly, as a businessman, if I advertise my brand and I make a statement that is not true, the Advertising Standards Authority asks me to pull it down straightaway. The Electoral Commission is toothless and does not seem to have any power over misstatements in elections, such as £350 million on the side of a bus. Will the Minister tell us why?

[Lord Young of Cookham]

On the first point, I think my party is committed to continuing to allow people to vote by pencil on a ballot paper. If one were to introduce electronic voting at the same time, there would of course be the extra costs of running two systems in parallel. At the moment, we are not committed to doing that. We are interested in pilot schemes, however, for example on voter identification. On the second point, I am not sure that the Advertising Standards Authority or, indeed, the Electoral Commission would like to get drawn into the heat of party-political battles during a general election.

Class 4 National Insurance Contributions

Lord Bilimoria Excerpts

Wednesday 15th March 2017 Lords Chamber

[Lord Young of Cookham]

My noble friend gives some wise advice on the number of commitments in the manifesto. I think that we had 600 in our last manifesto, and I am sure that there are lessons to be learned. But I cannot agree with him that we should ditch our manifesto commitments. Confidence in the political system is not that high and if any party, once elected, were to break its manifesto commitments along the lines that my noble friend has suggested, it would not enhance confidence in the political system at all. So we have to stick within the commitments that we made and find other ways in which to reduce the deficit.

[Lord Bilimoria (CB)]

Although I welcome the fact that the Government have backed down on this, the reason given very clearly is on the spirit of a manifesto commitment not being broken. Well, the biggest manifesto commitment that has been broken is remaining in the single market. Are the Government now going to back-track on that? We shall wait and see.

The main reason why people—and when I say people I mean Members across the parties in another place and here—objected to this increase in national insurance contributions for self-employed people affecting more than 2.5 million people is because the perception that it sends out is that the Government are going after and hitting the very people who take the risk to be self-employed and going against encouraging entrepreneurship. Would the Minister agree that the main role of government in this area is to encourage entrepreneurship, which means encouraging job creation, tax takes and growth, which will help to get rid of the deficit—not by hurting the very people who will create that growth?

[Lord Young of Cookham]

The noble Lord will know that we have taken a number of measures to promote enterprise. We have reduced corporation tax and we are investing in infrastructure and broadband. I do not want to reopen a discussion that we have had for the last two or three weeks about the single market and Brexit, but what has happened is that there was an announcement last week and there were then discussions with parliamentary colleagues and others. Against the background of those discussions, the Government have decided not to proceed. This is not an unparalleled development in the political system. It is a measured and proportionate response to some very real reactions that we got from colleagues down the other end.