World Economic Outlook: UK Growth and Inflation
Debate between Lord Hintze and Lord Livermore(1 week, 2 days ago)
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Lord Livermore (Lab)
No, I do not think she is, because the spring forecast showed precisely that: that Britain is well placed to weather this conflict. Inflation was at 3% and it was set to fall to target; borrowing was set to fall more over this Parliament than in any other G7 economy; GDP per capita was forecast to rise by 5.6% over this Parliament, compared with a fall of 0.2% in the previous Parliament; and we had increased headroom to over £23 billion. As I say, all these things mean we are well placed to weather this conflict. On the actual outturn data, last week’s figures show that the economy grew faster than expected in the three months to February, growth for the three months to January was upgraded, and yesterday’s labour market figures for February showed unemployment coming down and real wages continuing to rise.
Lord Hintze (Con)
My Lords, does the Minister agree that the only genuine way to look at the prosperity of our citizens in this country is GDP per capita? Does he also agree that one of the big detractors of growth in GDP per capita is the growing and significant welfare spend? If not, why not?
Lord Livermore (Lab)
I am very happy to agree with the noble Lord on the first part of his question: as I have said already, GDP per capita at the time of the spring forecast was forecast to rise by 5.6% over this Parliament. That compares with a fall of 0.2% in the previous Parliament—the worst Parliament on record for living standards. On welfare spending, as he knows, the previous Government increased welfare spending by £88 billion.
Forthcoming Fiscal Changes
Debate between Lord Hintze and Lord Livermore(5 months ago)
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Lord Livermore (Lab)
Why do we not just compare their records? Where the previous Government delivered the slowest projected growth in the G7, growth in the first half of this year was the fastest in the G7. Where they presided over the worst Parliament ever for living standards, living standards have increased by 2.1% since the election. Where they oversaw the worst pay growth in a century, real wages grew more in the first 10 months of this Government than in the first 10 years of the previous Government. Where they continually cut capital spending and deterred investment, we are investing for the long term, with £120 billion extra over the next five years. We will continue to rebuild the economy after 14 years of failure from the party opposite.
Economic Growth
Debate between Lord Hintze and Lord Livermore(7 months, 2 weeks ago)
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Lord Hintze (Con)
My Lords, what analysis has been done between tax rates and the growth rate? Ignoring that ignores the effects of the Scully curve and crowding out in the economy.
Lord Livermore (Lab)
The points the noble Lord makes are perfectly fair. Obviously, the Chancellor has to balance at any fiscal event the importance of fiscal responsibility and sustainability and the need to grow the economy. She will do so in the forthcoming Budget in the way that she always does.
Tax on Imports under £135
Debate between Lord Hintze and Lord Livermore(9 months, 2 weeks ago)
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Lord Livermore (Lab)
I think that is a fair definition of that phrase, yes.
Lord Hintze (Con)
My Lords, I have a question to the Minister: why are we always talking about taxation and not being more efficient with our spending?
Lord Livermore (Lab)
We have just completed a zero-based review of the whole of government spending. If the noble Lord has areas of spending that he would like to cut, I am very happy to hear them.