Taxation: Avoidance

Debate between Lord Newby and Lord Sherbourne of Didsbury

Monday 9th February 2015 Lords Chamber

[Lord Newby]

I completely agree, my Lords.

[Lord Sherbourne of Didsbury (Con)]

My Lords, can I endorse what the noble Lord, Lord Howarth, said? I know my noble friend Lord Green, who I agree is a man of great integrity. I agree also that the acquisition by HSBC at the time of a great many companies, producing a loose federation, caused management stretch in terms of organising it—I think that it has learnt the lessons of that. It is important that people outside this Chamber understand the measures that this Government have taken to strengthen controls on banking behaviour.

[Lord Newby]

My Lords, I agree with the noble Lord. It is important to stress that, as a result of initiatives led by this Government, there will be in place automatic information exchange agreements with more than 90 countries within a couple of years, including Switzerland, which means that the kind of egregious behaviour which today’s revelations have brought to light simply will not be possible in future.

Greater Manchester

Debate between Lord Newby and Lord Sherbourne of Didsbury

Thursday 27th November 2014 Lords Chamber

[Lord Sherbourne of Didsbury]

To ask Her Majesty’s Government what steps they are taking to develop the economy of Greater Manchester.

[Lord Newby (LD)]

My Lords, this Government are committed to rebalancing the economy and to supporting growth in Greater Manchester through a growth deal, city deal and enterprise zone. Earlier this month the Government and councils in Greater Manchester agreed to create a directly elected mayor for Greater Manchester with wide powers over economic development, housing, policing and planning.

[Lord Sherbourne of Didsbury (Con)]

My Lords, I welcome the decision to establish a Greater Manchester Combined Authority, but does my noble friend agree that there must be effective scrutiny of the decision-making of such a body, so that local people and businesses know who is deciding what and how? Will the Government, therefore, encourage these councils to make sure that that happens, so that there is transparency and clear accountability?

[Lord Newby]

My Lords, I absolutely agree that clear accountability is vital. That is why the Government and councils have agreed that there will be a democratically elected mayor to oversee the new powers and funding. Indeed, beyond 2016-17 these new powers will be conditional on the elected mayor being in place.

Economy: Public Sector Net Borrowing

Debate between Lord Newby and Lord Sherbourne of Didsbury

Monday 14th July 2014 Lords Chamber

[Lord Sherbourne of Didsbury]

To ask Her Majesty’s Government by how much public sector net borrowing has fallen between 2009-10 and 2013-14; and what is their forecast for the current financial year.

[Lord Newby (LD)]

My Lords, between 2009-10 and 2013-14, public sector net borrowing fell from £157.3 billion to £107 billion, or from 11% of gross domestic product to 6.6%—a fall of more than a third. The independent Office for Budget Responsibility forecast in March this year—2014-15—that underlying public sector net borrowing will fall to £95.5 billion, or 5.5% of gross domestic product, half its peak in 2009-10.

[Lord Sherbourne of Didsbury (Con)]

Does my noble friend agree that the reduction in the deficit over the past four years has been crucial in generating economic growth and employment? Does he also agree that it is therefore vital that the deficit reduction programme continues? Can he give the House some indication of when we might expect the deficit to be eliminated and the nation’s finances returned to balance?

[Lord Newby]

My Lords, on the current forecast we expect there to be a surplus in 2018-19. At the moment, as my noble friend points out, the economy is growing; we are the fastest growing economy in the G7 in the year to Q1 2014. The most recent employment figures showed that in the past year employment had risen by 780,000 and the claimant count had fallen by 406,000.

Scottish Independence: Currency Union

Debate between Lord Newby and Lord Sherbourne of Didsbury

Wednesday 12th March 2014 Lords Chamber

[Lord Sherbourne of Didsbury]

To ask Her Majesty’s Government whether they have made any assessment of the constitutional, political, financial and economic implications if there were to be a currency union between an independent Scotland and the rest of the United Kingdom; and, if so, whether they intend to publish it.

[Lord Newby (LD)]

My Lords, Her Majesty’s Government assessed these issues in the recent paper Scotland Analysis: Assessment of a Sterling Currency Union. This is the analytical basis on which the Chancellor of the Exchequer has said that he could not recommend that the other parts of the UK share the pound with an independent Scottish state, because it would not be in the economic interests of either the continuing UK or of Scotland.

[Lord Sherbourne of Didsbury (Con)]

Does my noble friend agree that the sure way for Scotland to keep the pound is to vote to stay in the UK, which I hope it will? If it were to vote to leave the UK and any future Westminster Government were ever to be minded to enter a currency union with Scotland—or, for that matter, with the eurozone—would that not require a referendum so that the people could decide?

[Lord Newby]

My Lords, before you got to that point, it would require the rest of the UK Government to wish to recommend such an outcome. It is worth quoting the conclusion of the official Treasury study, which says:

“On the basis of the scale of the challenges, and the Scottish Government’s proposals for addressing them, HM Treasury would advise the UK Government against entering into a currency union. There is no evidence that adequate proposals or policy changes to enable the formation of a durable currency union could be devised, agreed and implemented by both governments”.

As a result, I do not think we will get to that point.