Capital Investment and Share Ownership

Debate between Lord Livermore and Lord Reid of Cardowan

Thursday 13th March 2025 Lords Chamber

[Lord Livermore (Lab)]

I am afraid the noble Baroness cannot encourage me to be more forthcoming. As I have said, the 10-year infrastructure strategy will be the point at which we set out the Government’s approach to private investment in infrastructure. I think she will agree with me that private investment is vital for the country’s infrastructure. The Chancellor has established the British Infrastructure Taskforce, made up of some of the UK’s biggest financial companies. That will support the Government’s infrastructure goal and ensure that the strategy is credible and deliverable.

[Lord Reid of Cardowan (Lab)]

My Lords, of course the public/private partnerships and PFIs had risks, and of course there were failures. That is almost inevitable in any new experimental and radical approach to funding services. But the truth is that over the last 20-odd years, the level of services to people in Britain has been much higher because of our engagement with the private sector. Can I therefore encourage my noble friend the Minister and his colleagues not to be deterred when it comes to infrastructure? There is no doubt in my mind that huge added value is possible if we are prepared to be bold in public/private partnerships.

[Lord Livermore (Lab)]

I am grateful to my noble friend for those words, and I agree with much of what he said. The Government remain absolutely committed to harnessing private investment and restoring growth. We will work in partnership with the private sector while ensuring that projects provide value for money for taxpayers, now and in the future, and that appropriate lessons are learned from the past.

Exports to the European Union

Debate between Lord Livermore and Lord Reid of Cardowan

Wednesday 20th November 2024 Lords Chamber

[Lord Livermore (Lab)]

I thank the noble Lord for his Question and for mentioning the £22 billion black hole. He is absolutely right to point to the consequences of the previous Government’s ill-conceived Brexit deal. It imposed new trade barriers on business equivalent to a 13% increase in tariffs for manufacturing and a 20% increase in tariffs for services. As a result, the Office for Budget Responsibility has found that the overall trade intensity will be 15% lower than if the UK had remained in the EU. Specifically, goods exports to the EU have fallen significantly, down 19%—or £42 billion—compared with 2018. Of course, he also raises the correct point that we must increase our trade right around the world, because increasing trade is good for increasing growth.

[Lord Reid of Cardowan (Lab)]

Has my noble friend the Minister had the opportunity in his very busy day to read the article in the Financial Times this morning by the very perceptive commentator Janan Ganesh? He pointed out that, 10 years ago—long before the black hole was observed—we in the United Kingdom stood at the crux of three interlapping economic relationships: the United States, China and the European Union. We were in a formidable position. Since then, we have lost two and are possibly about to lose the third. Does that not make it all the more imperative that we start to rebuild those relationships, starting with the European Union?

[Lord Livermore (Lab)]

I agree 100% with my noble friend. I have not had the opportunity to read that article yet, but I absolutely will on his recommendation. He is right that the strength of those relationships is vital. As the Chancellor said in her recent Mansion House speech, we

“will always do what is in our national interest for our economy, for our businesses and for the British people”.

As she also said, the European Union is by far our biggest trading partner.