Growing the UK Economy

Debate between Lord Livermore and Baroness Falkner of Margravine

Monday 3rd February 2025 Lords Chamber

[Lord Livermore (Lab)]

It does absolutely, and I agree with everything the noble Lord said. Investment in people is one of the key pillars of the Government’s growth strategy, and skills falls under that, so it is a top priority. I talked about how the Chancellor’s strategy is to improve the supply side of the economy and, obviously, skills are a key feature of that and of our ability to grow the economy. When it comes to all the various infrastructure projects we are talking about, we know that we are going to need the skilled labour to achieve them. I am happy to reassure him that it is central to our thinking.

[Baroness Falkner of Margravine (CB)]

My Lords, the Statement says a lot about spades in the ground; it does not say very much about the UK’s woeful productivity challenge. Is the Minister aware that Gareth Davies, the head of the NAO, has said that our public services cost too much and simply cannot deliver? Beyond the skills shortages, what is the Treasury doing to address the level of public spending that we have reached, which has gone from 33% to 36% in the last five years?

[Lord Livermore (Lab)]

I am grateful to the noble Baroness for her question. I completely agree with her, which is why the Government have set a 2% productivity target for all government departments as part of the spending review. We have been very clear that, clearly, in a constrained fiscal environment, productivity and reform will be central to delivering better public services. In an environment where the noble Baroness opposite and I do not agree on very much, this is definitely an area where we agree, in terms of the importance of driving productivity not just in the private sector but in the public sector too. Please let me reassure the noble Baroness that this is absolutely top of mind as we consider the spending review decisions that we have to take.