UK Car Production Since 2016

Debate between Lord Lamont of Lerwick and Baroness Jones of Moulsecoomb

Tuesday 14th March 2023 Lords Chamber

[Baroness Jones of Moulsecoomb (GP)]

My Lords—

[Lord Lamont of Lerwick (Con)]

My Lords—

Subsidy Control Bill

Debate between Lord Lamont of Lerwick and Baroness Jones of Moulsecoomb

Committee stage
Monday 31st January 2022 Grand Committee

[Baroness Jones of Moulsecoomb (GP)]

My Lords, I support these amendments, which are very welcome because they make up for what the Bill lacks. It is a very technocratic Bill, with lots of rules and principles, but it completely misses the opportunity to develop a grand strategy for what we want subsidies to achieve. The economic power of government finance is obviously huge; it can sway the economy for good or bad. Simply constraining subsidy-making powers, rather than planning what we want to achieve for those subsidies, indicates a huge lack of ambition on the part of the Government.

Part of that reflects an insurmountable tension within this Government, from those who are so free-marketing that they verge on being anarcho-capitalists to those who want to use the power of state finance as a way of sucking in voters and making a political legacy for themselves. Both those groups miss the point: that the Government should lead the economy into the future that we want to see and live in—one that would be comfortable for the majority of people. We need strategies for how we are going to deal with achieving net-zero carbon emissions and eliminate poverty. That would be a fantastic thing to want to achieve but, somehow, this Government actually increase poverty. Of course, this is not just about wealth; it is also about well-being. The Bill could be a chance to achieve all those things. However, the Government have to get back to the job they should be doing, which is improving the well-being of the population.

Before I sit down, I want to mention the noble and learned Lord, Lord Thomas of Cwmgiedd. He stood and spoke for five minutes without notes, apart from two scribbled sentences on a scrap of paper that I do not think he even looked at. We should all speak without notes. I am one of the biggest culprits; I cannot.

[Lord Lamont of Lerwick (Con)]

My Lords, I had not intended to intervene in this debate; I hope that the Minister will forgive me. I know that the role of the Government Back Benches is to sit there and keep quiet. I apologise for giving way to temptation, but I do so in a genuine spirit of inquiry.

I was very interested in what the noble and learned Lord, Lord Thomas, said about the question of a map. I have a personal reason for being interested because, dare I confess it, very many years ago—I try never to talk about the past—when I was a Minister in the Commons, for what was then the Department of Industry, I was responsible for radically altering the map that existed for assisted areas in the early 1980s. We decided that this needed doing partly because of the cost but also because the assisted areas map had grown so large that it covered most of the country. There had been pressure to add to it and successive Governments had given way, so the map had got bigger and bigger. Also, rather than being given as the noble and learned Lord implied it should be, the assistance was given automatically. It was thought that there was therefore a lot of deadweight cost in the subsidies system—that is, people got a subsidy if they went to area X simply because they went there. That is what persuaded us that we should radically curtail the map to make it more concentrated.

Over the years, I have reflected on whether that was the right decision because what has happened in this country is that regional inequalities seem to have grown rather worse, while many of the most deprived urban areas have got even worse. I spent many of my teenage years living in Grimsby, a town that has been devastated by industrial change and had huge problems. I do not think that the move away from automaticity and a map, looked at over decades, has perhaps had quite the benefits that we thought it had.

One argument, of course, was for moving to a more selective basis of help because you were more likely to satisfy the criterion of additionality. In the arguments put forward by the noble Viscount, Lord Chandos, about equity we have already had a little discussion about additionality—that is, if the Government or a public body give assistance, is it assistance that would not have been given otherwise? That was an important criterion. However, as I say, when I look at the thing in the round, whatever the logic of a more selective approach, I am a bit sceptical as to whether a wholly discretionary and selective approach can work.

There is something to be said for looking at degrees of automaticity and, as the noble and learned Lord, Lord Thomas, said, having a map. He posed the question of how it would be done and what the criteria would be, which is a difficult question. It used to be done on the basis of unemployment combined with travel-to-work areas. I think you would not be able to do it without giving some such weight to unemployment; obviously, it would have to be in a travel-to-work area.