Financial Services: Mansion House Speech

Lord Brooke of Alverthorpe Excerpts

Thursday 21st November 2024 Lords Chamber

[Lord Livermore (Lab)]

I am grateful to the noble Baroness for her question. When I first became a shadow Treasury Minister, the noble Baroness was taking through the Act that introduced the secondary objective, and we were very supportive of it at the time—I remember those debates well.

On her first question, I may have to write to her as I do not have that answer to hand. On the fraud question, the Chancellor, Home Secretary and Secretary of State for Science, Innovation and Technology have written to leading tech and telecom companies, calling on them to go further and faster with clear, demonstrable action to reduce the level of fraudulent activity that exploits their platforms and networks. This comes ahead of the legal content duties under the Online Safety Act coming into force next year. The Act requires user-to-user and search services in scope to take measures to respectively prevent and minimise illegal fraudulent content on their service, or face the prospect of significant fines.

Building on existing measures to tackle scam calls, telecom companies have also recently agreed to a second fraud charter, to help prevent the misuse of telephone networks by criminals. We will monitor this closely in the months ahead, as the Government prepare the expanded fraud strategy.

[Lord Brooke of Alverthorpe (Lab)]

My Lords, I wonder whether the Minister recalls the conversations we had, before he was in government, about the possibility of having a fresh look at PPPs—public/private partnerships—to see whether we could update them and perhaps use them in a better way than in the past. One of my concerns is that the private equity funds that we see growing on such a scale are leading to a diminution of the number of individual personal investors in stocks and shares, of the type who were encouraged in the 1980s and 1990s.

I see that we are now going to call for evidence to examine the common bond on credit unions, and I wonder whether that could have been extended to having a review of the structure on public/private partnerships. We ought to be seeing whether we could encourage a change that would allow the public to invest directly in public/private partnerships, and whether the concept should not simply operate on a national level, as originally introduced, but be moved down to local-level activities and used particularly in expanding the growth opportunities in green energy.

[Lord Livermore (Lab)]

I am grateful to my noble friend for the question. I do remember the conversations we had in the past and I am, of course, happy to continue to discuss these issues with my noble friend. He talks about partnership; it is a key part of our investment plans. Partnership between public and private investment is key to our national wealth fund, with our public sector investment leveraging greater amounts of private sector investment into exactly the kind of green technologies that my noble friend references. I understand and sympathise with the spirit behind his question, and I am very happy to continue discussions with him on that point.

United Kingdom Declining Birth Rate

Lord Brooke of Alverthorpe Excerpts

Wednesday 6th November 2024 Lords Chamber

[Lord Livermore (Lab)]

I 100% agree with what the noble Baroness says. The ONS has said that the two biggest barriers to people having children currently are a lack of affordable housing and a lack of affordable childcare. The Government are prioritising making childcare more affordable. We will provide an additional £1.8 billion next year to continue the expansion of government-funded childcare, bringing the total spending on childcare to over £8 billion. This will support working families and help parents, particularly mothers, stay in work and return to work.

[Lord Brooke of Alverthorpe (Lab)]

Does the Minister agree that we missed a trick, as we saw the internet develop and never found any ways in which we could start to use it as a tax base? To pick up the question of AI, can we ensure that the Treasury is doing some forward-thinking on this, not just in UK terms but about the way that we need to develop international relationships in regard to tax on a worldwide basis?

[Lord Livermore (Lab)]

My noble friend makes some very interesting points. I assure him that the Treasury is working closely with the Department for Science, Innovation, and Technology to advance the things that he mentions.

Climate Risk Models

Lord Brooke of Alverthorpe Excerpts

Thursday 25th January 2024 Lords Chamber

[Baroness Vere of Norbiton (Con)]

No, the Government will not ask the PRA—or indeed anybody else—to do that as a matter of urgency. It is up to those independent regulators to decide the next stage at which CBES may be rerun. However, an important learning experience came out of CBES, which was that many of the capabilities needed to be embedded in the system. It is pointless running a scenario if the underlying information and the risk scenarios and outcomes coming from firms have not been updated to reflect the new scenarios. The independent regulators are very seized of the issue. Obviously, CBES will be run in due course if the Bank of England decides that the results of its previous running have been embedded in the system.

[Lord Brooke of Alverthorpe (Lab)]

My Lords, the noble Lord, Lord Lilley, said that the Bank of England has to take into account a variety of issues. Can the Minister say what work it is doing on AI? Is it in a better position than we are to see what is happening and the consequences?

[Baroness Vere of Norbiton (Con)]

The noble Lord raises a very important issue. However, it is slightly beyond the remit of the Question.

Corporate Profits: Inflation

Lord Brooke of Alverthorpe Excerpts

Thursday 29th June 2023 Lords Chamber

[Baroness Penn (Con)]

My noble friend is right that we are still feeling the effects of the Covid pandemic in a number of ways. This Government put in place unprecedented economic support to get people and families through that pandemic, and we have had to take difficult decisions about the public finances since. Another way in which we are still feeling the effects of the pandemic is in the unwinding of the measures put in place to control it. We have seen heightened pressure on global supply chains; that has been part of the driver of the increased inflation and higher prices that we are seeing.

[Lord Brooke of Alverthorpe (Lab)]

Does the Minister agree that many of those factors affect the rest of the world, including other countries in Europe, yet this country is performing poorly in relative terms compared with them? Our inflation is higher and our productivity is lower—why is that so? Is this not to do with some of the points pressed about Brexit by people on the Tory Back Benches opposite and the 4% loss to our economy as a result of us coming out of Europe?

[Baroness Penn (Con)]

My Lords, I have to disagree with the noble Lord. The higher rates of inflation that we see are seen in countries across the world. I believe there are nine EU countries with higher headline rates of inflation than the UK, and more than half of EU countries have higher rates of core inflation than the UK. The noble Lord talked about the importance of productivity to our future economic well-being; I could not agree more. We need greater investment to drive greater productivity, and we would not see that with the kind of policies advocated by the noble Lord, Lord Sikka, such as windfall taxes and other measures that would deter investment from our country.

Budget Statement

Lord Brooke of Alverthorpe Excerpts

Thursday 16th March 2023 Lords Chamber

[Lord Brooke of Alverthorpe (Lab)]

My Lords, it seems a long time since the Minister started the debate. I congratulate her, because she took an hour-long speech from the Chancellor, went to the major points and delivered it within about 19 minutes. That was very useful indeed for my noble friend Lord Eatwell, who I congratulate on delivering his usual barnstorming and devastating attacks on the Government’s performance. He picked out the major points and went for it. As I understood it, I thought that the noble Lord, Lord Bridges was, in many respects, giving my noble friend support on a number of the criticisms he was levelling.

I too welcome to the House the noble Baroness, Lady Moyo. I am not an economist—I am a simple old trade unionist—but I came here to learn, and I learned from the economists. I look forward to listening to many similar great speeches from her in the future, and I wish her a very warm welcome indeed.

Coming so far down the speakers’ list, I note that so much has been said already. My noble friend Lord Davies made a wonderful and devasting speech on pensions.

The one thing the Chancellor has done is steady the economy, and for that we must all be grateful, regardless of whichever party we come from. A year or 15 months ago, the country was in a hell of mess, and that was nothing to do with energy. The noble Lord on the Front Bench talked about energy, but it was not energy; it was precipitated by the leadership of the Conservative Party at that time. But we have now been steadied, and for that we should be pleased.

As to whether or not we are going to get ourselves moving to the levels of productivity that we require, I am uncertain. The noble Baroness, Lady Moyo, talked about 3% GDP. We last had that when Lord Darling was the Chancellor of the Exchequer, when Labour was last in power. Let us hope that, if Labour returns to power within the next two years at the outside—I say this to the noble Lord, Lord Bird, in particular—we will really start to see some genuine attention being given to the fundamental problems of the type which he described, and that we can get the economy moving.

I am interested in the reasons why we are short in the workforce. There is a whole range of different analyses being made as to the causes for that. When responding to the Chancellor yesterday in the Commons, my leader, Keir Starmer, said that we were the “sick man of Europe”. In that context, I think he was talking primarily about the economy, because in relative terms we are doing badly on recovery compared with most European countries. We are, and have been for quite some time, the real sick nation of Europe in health terms. I was expecting and hoping that the Chancellor, given his previous long experience of working on health, might have spent a little more time addressing some of the health issues which the country faces by looking for economic solutions, in part, to some of those problems.

Without doubt, one of our fundamental problems is that we drink too much, so some steps have been taken there which I welcome. The draught duty is an innovative approach, and it gives a marker for the future that we can set different levels of taxation within alcohol and we can focus. It is good to see that we now have the freedom to increase taxation within off-sales and supermarkets in a way that we have not done previously; it is at supermarkets where you get the cheap drink, and many people suffer ill health as a consequence. That was a movement in the right direction.

The other area in which we are very poor is the quality of the food that many of our people, including me, consume. There was a case for the Chancellor moving to address that issue and seeing whether we can effect some changes. Some progress was made under Mrs May. We introduced a tax on fizzy drinks, which proved to be effective, yet that has not been applied over a wider front, notwithstanding all the calls for greater taxation on sugar. Why are we not taking the opportunity to look at an extension of the sugar tax, when sugar is at the heart of many of the problems we have with our health in this country? If we looked at the kind of food we produce and at alternatives to sugar, we could find a new industry where British food manufacturers could give a lead in producing new types of food that would not only benefit our country internally but could be exported on a wider basis. If we look at the problems of the world, particularly North America, we see that food and obesity are great issues. Projections in America around the scale of type 2 diabetes are quite worrying. They indicate that it could go up to 90% with that disease. We have to find ways overall.

Let us take our weaknesses and see whether we can convert them into our strengths by addressing the issues. I support what was said by the noble Lord, Lord Moynihan, that health is about food, drink and exercise, and that we perform badly in comparison with what happens elsewhere in Europe. Curriculums in schools in Europe and elsewhere give much more time to sport and exercise than we do in this country. Why can we not change it? There are opportunities for change.

I come back to the issue of the workforce. I have already said that our ill health is one of the reasons why we have seen a decline there. That needs to be addressed.

We need also to look at what people want. There are those who have gone into retirement and not returned to the workforce. They want to stay at home. One of the lessons of Covid was that people do not want to leave their homes in the way they have done in the past. They do not want to go back to the offices, they do not want to go back to the factories—in fact, the number of our factories is now diminishing—and there is a push to stay at home. We should recognise and acknowledge that. Rather than saying, “Come back into the cities and travel”, we must acknowledge that people are not going to do that. Instead, we have to start planning to move more work from offices into the home and for people to work from home. Civil servants are doing it to a degree, and there has been a lot of criticism. It is misplaced. What I think we are seeing there is the lead for what should be happening in many other parts of employment in the clerical and executive sphere. The work should be going home, with people then having opportunities to give attention to their children and to care for those in their family who need it, rather than having to import people in. Rather than chasing and pushing people back to work, work should be moving.

Some of us had the opportunity yesterday to see the new technology that is coming, such as the headsets. It is truly amazing what is just around the corner. Just think back to the early 1990s, when we were holding “bricks” to our ears, and compare that to what we can now do with our mobiles. With these headsets we can create a virtual reality and communicate with people in a quite different way. This is the kind of technology people will be using in their homes in the future. The technology will advance and move beyond just sight: people will be able to smell, taste and touch; and they will work from home.

I know this is long-term stuff, but it will create an entirely different kind of workforce. I hope my party will look ahead to the nature of work in five to 10 years’ time and start preparing for it. Within that time we will have an entirely different idea of work and of the opportunities available to people, particularly in areas with high unemployment. There need not be unemployment, because we can take the work there. We have pressed the Civil Service to decentralise and to move to different parts of the country. Why, as part of equalisation and levelling up, are we not pressing the major companies in London and the City similarly to decentralise and take their work to areas where there are employment opportunities?

There are many opportunities, but they have not been seized in this Budget, I am afraid. We have some stability, but we need far greater ambition. I believe that my party has that ambition to take us forward and to help people.

Alcohol Duty Bands

Lord Brooke of Alverthorpe Excerpts

Thursday 12th January 2023 Lords Chamber

Asked by

[Lord Brooke of Alverthorpe]

To ask His Majesty’s Government whether they have any plans to increase the top rate of the new alcohol duty bands, forecasted to take effect from August 2023.

[The Parliamentary Secretary, HM Treasury (Baroness Penn) (Con)]

We aim to keep alcohol duty rates under review during the yearly budget process and to balance the impact on businesses with public health objectives. In December we announced that the freeze to UK alcohol duty rates had been extended for six months, to 1 August 2023, providing businesses with certainty and aligning with the implementation date for our historic alcohol duty reforms. The Chancellor will reserve his decision on future duty rates for the Spring Budget 2023.

[Lord Brooke of Alverthorpe (Lab)]

My Lords, I am grateful to the Minister for her reply but she seems to have missed the Question; the Question is about the top band, and she made no mention at all of that. The reality is that a new system is coming in, which I generally welcome, that will actually yield less tax to the Government—which is a surprise, given that we cannot pay nurses enough but are not taking the taxes that we should be. We should be increasing taxes there, not reducing them, which is the case with the top band; in relative terms, it is going down. Would the Government please review this, and change it and increase it, so that alcohol such as vodka is taxed at a higher level than is presently proposed?

Premium Bonds

Lord Brooke of Alverthorpe Excerpts

Thursday 23rd March 2017 Lords Chamber

[Baroness Neville-Rolfe]

I am grateful to my noble friend. I will certainly look at the point without commitment.

[Lord Brooke of Alverthorpe (Lab)]

My Lords, I am not sure whether the Minister is old enough to qualify for the silly £10 a year Christmas bonus that most of the people in this Chamber will receive. Apparently it was introduced decades ago and if it had been updated with inflation it would now be worth £187 a year. Building on the suggestion of the noble Lord, Lord Lansley, why should that not be converted into savings rather than paid out, when many people do not know what it is about, why they are receiving it or what they do with it?

[Baroness Neville-Rolfe]

The noble Lord highlights that there are many good pension benefits in this country. I take his point but this is a difficult area in which to make sudden changes.

Health: Duties on Food and Drink

Lord Brooke of Alverthorpe Excerpts

Monday 6th March 2017 Lords Chamber

Asked by

[Lord Brooke of Alverthorpe]

To ask Her Majesty’s Government whether they intend to include, within the recently announced review of VAT, a consideration of the levels of customs and excise duties applied to those drinks and foods which research suggests are most responsible for avoidable deaths and chronic illnesses; and if so, whether they have any plans to hypothecate the yield to the National Health Service.

[The Commercial Secretary to the Treasury (Baroness Neville-Rolfe) (Con)]

My Lords, the OTS’s current VAT simplification review will not consider these issues. The review is focused on identifying opportunities for simplification of the VAT system and establishing whether the system is working to minimise tax compliance burdens. The Government have, however, gone to great lengths to promote healthy eating, drinking and lifestyles. We have announced a new soft drinks industry levy and a sugar reduction programme to help address childhood obesity.

[Lord Brooke of Alverthorpe (Lab)]

My Lords, I am grateful to the Minister for her reply, but disappointed. I wonder whether she might be persuaded to reflect on the need for a further examination of the subject. Does she agree that Brexit provides the opportunity for us to look at VAT, customs and excise duty, and a whole range of taxes in a much more flexible way than we have been able to when linked to Europe? Does she agree that we have a major problem with the costs that alcohol is causing to the NHS, and that one way we might change that is by persuading people to move from high-strength to lower-strength drinks, and that now we have this flexibility coming there is a strong case for trying to effect such a change?

[Baroness Neville-Rolfe]

My Lords, I have some sympathy with the point the noble Lord makes. The Government believe that alcohol duties should be related to the alcoholic strength of drinks but, as he says, EU law currently restricts changes to the rates and structure of alcohol duties. We have already said that we would like any future changes to allow duty on wine to rise in line with alcoholic strength. We are constrained until we leave the EU but we will certainly consider this issue carefully in the light of EU exit.

Airports: Heathrow Third Runway

Lord Brooke of Alverthorpe Excerpts

Tuesday 17th June 2014 Lords Chamber

[Lord Newby]

My Lords, I do not think that it is a good idea for Government to try to micromanage the commercial decisions of individual airlines.

[Lord Brooke of Alverthorpe (Lab)]

My Lords, this is a question that the noble Lord can answer. Will he tell the House, please, how many international flights have migrated from Heathrow to Schiphol, Charles de Gaulle and Düsseldorf in 2010, 2011, 2012 and 2013? If he cannot answer now, will he do so in writing?

[Lord Newby]

My Lords, I am happy to ask colleagues at the Department for Transport to write to the noble Lord, but I do not think that the matter is as straightforward as that. Individual airlines have a whole raft of decisions to take into consideration when they decide what they are going to do. To say simply that lack of capacity is always the cause of the kind of decision that the noble Lord talks about is to oversimplify the matter. However, I will suggest to my colleagues in the Department for Transport that they drop him a line.

Spending Review

Lord Brooke of Alverthorpe Excerpts

Wednesday 26th June 2013 Lords Chamber

[Lord Brooke of Alverthorpe]

My Lords, the Chancellor said in his Statement:

“The first line of national defence is sound public finances”.

Following the theme of the noble Lord, Lord Higgins, why can the Chancellor then go on to boast that we have one of the largest defence budgets in the world? Here, I do not speak on behalf of my party but as an individual member of the community in this country. However, I suspect that I represent a fair point of view when we hear about the possible incursions into Syria and read of the Prime Minister saying that he is not prepared to see a reduction in Britain’s military capabilities. If we are to take truly tough decisions, is it not time that we really faced up to our position in the world—what we can do, what we cannot do and what we can afford?

[Lord Deighton]

That is a very broad question. In terms of the spending review, over time we have already taken some very difficult decisions with the Ministry of Defence. The focus of this particular spending round was to ensure that we put in place some economies in the support areas, but kept our front-line capability and made absolutely sure we had an equipment budget that could support our troops and the work that they were called on to do. That was the policy decision behind which the spending decisions fell into line.