Economic Growth: Public Spending

Lord Kinnock Excerpts

Wednesday 12th February 2025 Lords Chamber

[Lord Livermore (Lab)]

I am grateful to the noble Baroness for her question. With the greatest respect, she wants the investment in the National Health Service but is opposing the national insurance contributions increases that fund this increased investment. I am afraid that you cannot have one without the other.

[Lord Kinnock (Lab)]

My Lords, does my noble friend agree that it is part of democracy that there is a universal call for politicians to tell the truth but that, when they do, they attract criticism, like that from the noble Lord opposite? Last year our right honourable friend the Chancellor told the truth about what she described as the black hole, and which I described as: “Nothing bloody worked”. Is it not a fact that to repair the damage done in 14 years will take time and patience? The Government are showing the right way with fresh capital investment and a total commitment to stimulating growth in the private and public sectors of our economy.

[Lord Livermore (Lab)]

I completely agree with my noble friend, and I am grateful to him for what he says. It is absolutely no approach to say that we should continue a previous Government’s cover-up and not be honest about the difficulties in the public finances. It is also completely wrong to say that we were wrong to deal with those challenges and should instead have maintained what my noble friend describes as a £22 billion black hole in the public finances. We were absolutely right to do what we did. We know that there are costs to responsibility, but the cost to irresponsibility would have been far greater—we saw that in the Liz Truss mini-Budget. Repeating the failures of the last 14 years is exactly not what the British economy needs.