Autumn Statement

Debate between Lord Deighton and Lord Stoddart of Swindon

Wednesday 3rd December 2014 Lords Chamber

[Lord Deighton]

One of the things I have enjoyed about working with my right honourable friend the Chancellor is that, right through to the end of this Parliament, the Treasury is looking at new measures and trying to continue to implement the plan that has been laid out with such effectiveness. To be sticking to the target of getting the deficit down within the context of a very challenging economic environment, while being focused on structural issues and other important things that affect the economy and broader society, is indeed the sign of a good Statement.

[Lord Stoddart of Swindon (Ind Lab)]

My Lords, does the Minister recall the promise made by Mr Osborne when he was the shadow Chancellor to the effect that, when his party came to Government, he would raise the inheritance tax threshold to £1 million? He wowed his party conference with that statement. That is said to have made Mr Brown put off the election, and indeed to increase the inheritance tax threshold to £325,000 and introduce transfers between spouses. What has happened to that promise? The threshold is still £325,000 and there is no mention of it in the Statement today, yet it was a central point of Tory policy at the last election. When are we going to hear more about this issue, or have the Government dropped that promise?

[Lord Deighton]

The Government keep all taxes under review. With respect to taxes at the end of life, the focus of the Government has been much more on pension reform, which has been radical and generous in terms of how it will treat inheritance. In fact, my right honourable friend the Chancellor confirmed today that the tax on passing on a pension pot, which had been at 55%, will be removed. He has also introduced a similar arrangement for ISAs being passed on to spouses. While we have not yet made changes to inheritance tax, we have been thoughtful about taking care of some of the issues that complement it.

EU Budget Surcharge

Debate between Lord Deighton and Lord Stoddart of Swindon

Monday 10th November 2014 Lords Chamber

[Lord Deighton]

It is hard for me to put it in historical perspective, but as always, the Prime Minister and my right honourable friend the Chancellor have done an excellent job representing the interests of this country.

[Lord Stoddart of Swindon]

There is a minute, so I have just made it. The country was treated to a lot of sound and bluster from the Prime Minister stating that he was not going to pay a penny. Today, by smoke and mirrors, the Chancellor has reduced that amount to £850 million. However, is the Minister aware that people think that that is a lot of money, which is to be added to the £11 billion we shall be making in contributions?

[Lord Deighton]

I agree with the noble Lord that £850 million is a lot of money. We will expect value for money for that kind of investment. I should make clear that the Prime Minister said that we would not be paying £1.7 billion on 1 December. In fact, we will pay nothing on 1 December. We will pay £850 million in two payments next year.

Spending Review

Debate between Lord Deighton and Lord Stoddart of Swindon

Wednesday 26th June 2013 Lords Chamber

[Lord Deighton]

I absolutely share the noble Lord’s experience that economic forecasting is a hazardous art form. However, if done thoughtfully, it gives us the basis for creating a long-term plan against which we can make the best decisions possible, given the information we have. One of the things that I have been working on with the Chancellor is to take a longer-term perspective, particularly of our capital budget, and to have that budget as a foundation for our long-term fiscal management rather than being the bit that gets added on at the end. That is what results in the stop-go approach to investment which has plagued us for many years. For me, what it rather reflects is a shift in priorities to deal with the things for which you need to create a longer-term planning horizon, so that we can get the investment side of what we are doing sorted out over the right kind of horizon.

[Lord Stoddart of Swindon]

My Lords, to get back to a point raised by the noble Lord, Lord Forsyth, about quantitative easing, or the printing of money, there is of course the fact that the Government have saved £9 billion because of low interest charges. Those savings have been made at the expense of interest rates on savings, particularly those on pensions. Pensioners have been very badly hit because their expectations, and indeed their pensions, have been lowered for the future. Is it not a shame that some of the most vulnerable people in our society, such as the pensioners, have been made very much poorer in order to finance government spending, which is still far too high?

[Lord Deighton]

I of course accept that one of the consequences of lower interest rates is lower returns to savers. That absolutely follows on and it is a consequence in part of our current monetary policy, and indeed the monetary policy of every major nation. One compensating comment I would make is that of all the constituencies which this Government have striven to protect, looking at the triple-lock protection on pensions the basic state pension has clearly been kept in very good shape during this period of economic challenge.

EU: Budget

Debate between Lord Deighton and Lord Stoddart of Swindon

Monday 4th March 2013 Lords Chamber

[Lord Deighton]

There were three key things that the Prime Minister wanted to protect in terms of the expenditure coming into the UK. The first was to make sure that our universities were very well positioned to bid for the grants available. That part of the budget has gone up and the rewards are based on excellence, so they should do well there. Secondly, he wished to make sure that our farmers are protected in terms of the environmental programmes that they support, which he did. Thirdly and finally, the structural aid that goes to our less well-off regions has been protected at the existing base level of €11 billion.

[Lord Stoddart of Swindon]

My Lords—

--- Later in debate ---

[Lord Stoddart of Swindon]

My Lords, none the less, is it not true that the final outcome of the arrangement for the next seven years will in fact mean that the United Kingdom will be paying £500 million extra per year? Is that really acceptable under the present circumstances with cuts to our own social services?

[Lord Deighton]

The final outcome will be determined on a year-by-year basis depending on exchange rates, the growth of our national income and other such factors. The spirit of the question is indeed correct: our net contribution is likely to go up. That is simply because of the concessions made in the 2005 negotiation, when we surrendered some of the abatement advantages.