Business Confidence

Debate between Lord Fox and Lord Duncan of Springbank

Tuesday 28th January 2020 Lords Chamber

[Lord Duncan of Springbank]

The first thing to note is that the report is positive, and the CBI has not always been the most positive in its analysis of the Government’s activities. Secondly, we have anticipated a number of the issues which the report has flagged up, not least productivity and investment in SMEs. In the calendar year ahead, we shall look at how to move these areas from where they are now to help them grow. I am tempted to cite Chauncey Gardiner on the notion that as long as the roots are still in the soil then all will be well in the garden. That might be a little optimistic because the year ahead will be a challenge, but the same thing is true: we have opportunities ahead which will do us well.

[Lord Fox (LD)]

My Lords, the Minister is right to be slightly more cautious than the questioner on the status of this data, because I am sure that he knows that the Society of Motor Manufacturers and Traders, for example, will publish its monthly statistics on Thursday. Undoubtedly, although we do not know what the numbers will be, they will be massively less than the record numbers for what they were able to build in this country some time earlier. Given what the Chancellor has said about regulatory alignment, how much confidence or optimism can the automotive industry have that its supply chains will still be operating this time next year?

[Lord Duncan of Springbank]

I do have confidence. I am wearing my summer suit right now, but I also have an umbrella. Looking to the year ahead, it is important to recognise that some serious negotiations are to be done to ensure that the supply chains work. That will be part of the approach in the ongoing negotiations which will benefit both sides.

Horizon 2020

Debate between Lord Fox and Lord Duncan of Springbank

Monday 27th January 2020 Lords Chamber

[Lord Duncan of Springbank]

The noble Lord makes an interesting point. He will recall that when Horizon 2020 was being negotiated this time seven years ago a significant effort was made by the EU to cut the funding in order to put more money into agriculture. One of my colleagues, Vicky Ford, now an MP, managed to stop that cut being so significant. We are at that delicate stage now. Horizon Europe has not yet been determined and we cannot therefore be sure exactly what it will look like or how we can engage with it until the EU has completed those operations.

[Lord Fox (LD)]

My Lords, the Minister has made clear the position on Horizon 2020, but the position on Horizon Europe is exercising the minds of researchers in this country. The proposed budget is about €100 billion. Can the Minister guarantee that, whether or not we are inside that deal, research organisations in this country which would have benefited will continue to benefit by at least as much as the share they would have got from Horizon Europe?

[Lord Duncan of Springbank]

The important thing to stress is that the EU has not yet determined Horizon Europe and the most important sticking point remains the budget. It is the Government’s commitment to have an association agreement to ensure that scientists and all within that area going forward are able to participate fully and are able to get full value for money, just as the EU will get full value from us through such an association agreement.

Nuclear Power: Emissions

Debate between Lord Fox and Lord Duncan of Springbank

Tuesday 14th January 2020 Lords Chamber

[Lord Duncan of Springbank]

My noble friend is, of course, absolutely correct. If we get to the stage where Hinkley comes online according to its timetable in 2025, it will in due course supply 7% of our electricity needs. However, the reality is that small modular reactors are vital. That is why we have invested £18 million in development thus far—£18 million that is matched by the private sector. This may well be how we can move forward a whole new generation of nuclear electricity generation.

[Lord Fox (LD)]

My Lords, I think all your Lordships will welcome the fact that an energy White Paper is going to be published. This country has lacked a joined-up strategy on energy for many years. Can the Minister confirm that this White Paper will include not only generation of all kinds but the storage of energy and the flexible, or more flexible, distribution of energy? Clearly those will be key in how we go forward.

[Lord Duncan of Springbank]

The noble Lord has raised these points before; he was right then and is right now. Storage is absolutely vital in this area. Without it, we run the risk not just in nuclear but in our renewables more widely that we cannot capture and hold the energy that we create. Storage needs to be in the White Paper.

Creative Industries: Research and Development

Debate between Lord Fox and Lord Duncan of Springbank

Wednesday 8th January 2020 Lords Chamber

[Lord Duncan of Springbank]

The noble Baroness is absolutely right that creative industries are at the heart of the improvements that we have seen across the UK’s global reach. We put a significant amount of money into research and development in the creative industries. Some £58 million has gone to research and development through the creative clusters, £39 million directly from government and £25 million from industry. But that does not answer the noble Baroness’s question, which regards the definition. I read with interest the paper by Hasan Bakhshi and Elizabeth Lomas, Defining R&D for the Creative Industries. If the noble Baroness is willing and amenable, I would like to sit with her and discuss this matter further.

[Lord Fox (LD)]

My Lords, the noble Baroness, Lady Bull, appears to have hit on an idea that can go further. However, can we put a time limit on this? The Budget is coming up on 11 March, and redefining that process can be announced then so that these important businesses can benefit from the tax benefits of research and development. Could the Minister therefore also adhere to a timetable that enables the Budget to play a role in this?

[Lord Duncan of Springbank]

On tax, it is important to stress that we offer a significant amount of tax relief that covers all the wider creative industries, from film animation to museums and galleries and the theatre, and so far it affects a significant proportion of those areas. The noble Baroness raised the exact definitions, which is important, because thus far we are bound by the Frascati convention of the OECD definition, which is tilted primarily towards technology and science. I will not go into too much detail, but this of course misses the epistemic and aleatory uncertainties inherent in this particular problem—you do not hear that every day.