Financial Services: Mansion House Speech

Debate between Lord Livermore and Lord Liddle

Thursday 21st November 2024 Lords Chamber

[Lord Livermore (Lab)]

I am very grateful to the noble Lord. It will not surprise anyone to hear that I agree with the sentiment behind his question. He is right that you cannot undo 14 years of damage in one Budget. Our economic strategy is based on the principles of stability, investment and reform; the Budget was about restoring stability to the public finances and therefore stability to the economy, which is the essential underpinning of any growth strategy. The Budget also talked about increasing levels of public investment in our economy; these Mansion House reforms are part of increasing private investment into our economy. The noble Lord is correct that there will be lags in that investment, but we very much hope to see growth coming through in due course.

[Lord Liddle (Lab)]

My Lords, I very much welcome the proposals on pension funds that the Chancellor has put forward. However, I have some sympathies with what the noble Baroness, Lady Kramer, said about City regulation. We must face the fact that, when the financial crisis hit us in 2008, because of the prudence of Gordon Brown as Chancellor of the Exchequer the debt to GDP ratio was less than 40%, whereas under the Conservatives over the last 14 years it has reached 100%. The chances of us being able to launch a massive rescue operation of banks in the way that Gordon Brown did with such success in 2008 will be constrained by that fact. What is the Minister’s judgment of that?

Secondly, what are the Government’s plans to improve access to finance for small and growing firms, particularly those outside London and the south-east? Lots of studies have demonstrated that growing firms find access to capital difficult. The British Business Bank is one response to that. Are the Government proposing to upscale it? That area is a key constraint on UK growth.

[Lord Livermore (Lab)]

I am grateful to my noble friend for his points. In the letter that the Chancellor sent to the chief executive of the Financial Conduct Authority, she made it very clear that the importance of competition, growth and risk-taking is to be seen in the context of its regulatory duties. She said that:

“The financial services regulators are key to driving forward”


growth;

“we must have proportionate, effective regulation that allows firms of all sizes to compete, innovate and grow, creates a stable, attractive environment which encourages businesses to establish and expand in the UK, and adequately protects consumers”.


She recognises that there are trade-offs to be made, but she would like to see a greater emphasis on achieving that secondary growth objective.

On supporting small businesses and their access to finance, my noble friend is absolutely right that, to date, the UK has been a very good place to start a business but a less good place to scale one, and access to capital is a vital part of improving that. He mentions the British Business Bank, which is incredibly important; it has been very successful in providing some of that finance, and we need to go further. Colleagues in the Department for Business and Trade will also be coming forward with proposals to help small businesses scale and grow.

Fiscal Rules

Debate between Lord Livermore and Lord Liddle

Tuesday 29th October 2024 Lords Chamber

[Lord Livermore (Lab)]

I am not aware that the Government have any such plans, but I hope that tomorrow’s Budget will include good news for Wales.

[Lord Liddle (Lab)]

My Lords, the new policy on investment that has been announced will be widely welcomed on this side of the House as giving an opportunity for the public sector, in partnership with the private sector, to raise the dismal rate of growth that we experienced under the last Government. Will my noble friend not let noble Lords opposite get away with the total unsustainability of their fiscal plan to cut public investment from 2.6% of GDP to 1.9%, which would have had disastrous consequences for growth and public services?

[Lord Livermore (Lab)]

I am extremely grateful to my noble friend for that point and for his support for what we have set out. He is absolutely right to draw attention to the record we inherited. As he says, the UK lags behind every other G7 country on business investment as a share of our economy, and the plans we inherited from the previous Government would have seen public sector investment decline to the lowest level in over 10 years. Nothing we have heard so far today suggests that they think there is anything wrong with that.

My noble friend also drew attention to the importance of partnership with the private sector. To rebuild our country, it is vital that we increase investment in partnership with the private sector. As he says, we must first create the conditions for the private sector to invest by stabilising our economy and introducing reforms to things such as planning and skills. The Government must invest alongside business, through expert bodies such as the new national wealth fund, to catalyse more private sector money. As we have been discussing today, there is also a significant role for public investment to play.

Telecommunications Infrastructure (Leasehold Property) Bill

Debate between Lord Livermore and Lord Liddle

Committee stage & Committee: 2nd sitting (Hansard) & Committee: 2nd sitting (Hansard): House of Lords
Tuesday 2nd June 2020 Lords Chamber

[Lord Liddle (Lab)]

There have been some excellent speeches in this debate and I fully support the amendment moved so ably by the noble Lord, Lord Fox. We are debating matters of fundamental political importance, and I disagree with the suggestion of the noble Baroness who said that this can all be left to regulators. The fact is that in these areas far too much has been left to regulators. These are questions of politics and whether Ministers are really driving progress. That is why I think that regular reports to Parliament are a very good idea.

When listening to the noble Baroness, Lady Barran, and the noble Lord, Lord Parkinson, I have felt that the Bill has been presented to us as a sort of trifling or very minor measure, but in fact it is on a huge subject. In the Conservative manifesto, as I am sure the noble Lord, Lord Parkinson, will confirm in his concluding remarks, the Government made a very bold commitment to full fibre and gigabit-capable broadband for every home and business by 2025. It would be good if the Minister could reaffirm that that is indeed the Government’s commitment. The case for it has grown: we saw in the general election the cry from the left-behind areas of the country. They put their trust in Mr Johnson because he said that he would look after them. It is absolutely essential to the fostering of new enterprise in, for instance, west Cumbria, where I live, that we have top-class, gigabit-capable broadband. The question is: will we get it? It is a big political question and the Government have to satisfy us that they will deliver on those promises.

The Covid crisis has made the question of access to broadband also a fundamental question of equality. I am struck by a lot of the research into the damage to children’s opportunities being done by schools being closed. Some of the greatest damage is where families do not have access to broadband and where schools are not providing teaching online, yet those inequalities could be addressed by a vigorous Government who were prepared to make sure that the infrastructure was available to everybody.

I support this legislation, which gives the service providers due rights over landlords. I am worried that it is not enough. The noble Baroness, Lady Barran, descended into lots of verbiage—if I might put it so crudely—about the balance of powers in this Bill, which makes me think that, actually, it does not really give the service providers what they need to aggressively provide a more universal service. We cannot put obligations on providers to provide a universal service unless they have the muscle to be able to do it.

In the Conservative manifesto, not only was £5 billion of public funding promised to promote these digital objectives, but

“a raft of legislative changes to accelerate progress”

will be introduced. I suppose this Bill is one of those legislative changes. We know we have got the telecoms security Bill coming later this year, and we know that there is a furious debate going on in government about what it should say. How much are those debates about the telecoms security Bill going to delay the 2025 objective? The Government should be straight with the electorate about the trade-offs here. We need an indication in the Bill of how far it is going towards this raft of legislative changes to produce great progress, what other legislative changes are going to be proposed, and on what timescale. If this is a trifling measure, what is the big measure that is going to produce the results?

I very much support this amendment and look forward to the Minister’s reply, because I want to see clear commitment to action that will be reported on to Parliament on a regular basis.

[Lord Livermore]

My Lords, as we have heard, Amendment 21 would introduce a review requirement relating to progress on the Government’s stated target of achieving universal access to gigabit broadband by 2025. I hope the Minister will be able to make a clear commitment to progress reports, either from his department or from Ofcom. While we do get estimates of statistics from the latter, there must be some mechanism for understanding how the Government aim to address any shortcomings.

Furthermore, the view of the committee this afternoon seems very clear that more needs to be done, and we are certainly sympathetic to the idea of an amendment such as that suggested by the noble Lord, Lord Fox. Amendment 22 seeks to upgrade one of the delegated powers in the Bill to the affirmative procedure. The 12th report of our Delegated Powers and Regulatory Reform Committee did not flag this power as problematic, but it would nevertheless be helpful if the Minister could outline the process that these regulations will be subject to prior to their publication and entry into force.