Corporate Profits: Inflation

Lord Robathan Excerpts

Thursday 29th June 2023 Lords Chamber

[Lord Robathan (Con)]

My Lords, does my noble friend the Minister not agree that the problem has been caused by the money supply increase, quantitative easing over the years and, in particular, most recently, the coronavirus nonsense, when lockdowns cost this country billions and contributed to the parlous state of the economy and inflation? Noble Lords on the other side are complaining now, yet in the past they wanted even further restrictions which would have cost this country money and, indeed, contributed to inflation.

[Baroness Penn (Con)]

My noble friend is right that we are still feeling the effects of the Covid pandemic in a number of ways. This Government put in place unprecedented economic support to get people and families through that pandemic, and we have had to take difficult decisions about the public finances since. Another way in which we are still feeling the effects of the pandemic is in the unwinding of the measures put in place to control it. We have seen heightened pressure on global supply chains; that has been part of the driver of the increased inflation and higher prices that we are seeing.

Defence Spending

Lord Robathan Excerpts

Thursday 16th March 2023 Lords Chamber

[Baroness Penn (Con)]

I would like to reassure noble Lords that there is more money now going into defence. It is the largest sustained increase in defence spending since the end of the Cold War and, in recognition of the changing picture globally, we announced at the Budget money on top of that investment: £4.95 billion over the next two years and an extra £11 billion over the next five years to improve the country’s resilience and readiness.

[Lord Robathan (Con)]

My Lords, while the money announced yesterday is of course very welcome and we thank the Chancellor for that, it is £11 billion over five years. This is jam tomorrow—we need the money spent today. Has nobody noticed what is happening in Ukraine, and that our bunkers are empty of ammunition? We need to spend the money today. Will my noble friend confirm that, as she speaks, we are still cutting the number of troops, ships and aircraft in the United Kingdom defence budget?

[Baroness Penn (Con)]

An additional £24 billion is going in now as a result of the spending review 2020. The £11 billion announced at the Spring Budget includes £4.95 billion over the next two years. That does not include the spending on our commitments to Ukraine, which was £2.3 billion last year and will be £2.3 billion in the coming year.