Spending Review and Autumn Statement

Lord Stoddart of Swindon Excerpts

Wednesday 25th November 2015 Lords Chamber

[Lord O'Neill of Gatley]

My Lords, at the risk of repeating aspects of what I said, I think I made it clear that the arguments advanced had legitimacy and were, as with any other arguments, capable of influencing the Chancellor—which, I might add, has been observable on a number of other economic policies. What was not legitimate was the fatal Motion carried in this House.

[Lord Stoddart of Swindon (Ind Lab)]

My Lords, I will ask a quick question on transport, which I understand is to take a cut of 30%. Which services will that adversely affect? Will there be cuts in assistance to the railways and to London transport, in which case fares will increase, or are there other means of finding that 30% cut?

[Lord O'Neill of Gatley]

My Lords, as I think was touched on in part of the question asked by the noble Baroness, Lady Kramer, the cuts are in the Department for Transport’s operational budget. There is a significant increase in capital spending. With respect to a number of our investment challenges, I would also highlight that some of the additional £12 billion capital investment is specifically for transport. Tangential to that, I also highlight the more specific commitment to HS2, as well as—very importantly for the northern powerhouse project—a significant allocation of money for the rollout of Transport for the North, particularly the state-of-the-art ticketing proposals that we hope will come to the fore.

Autumn Statement

Lord Stoddart of Swindon Excerpts

Wednesday 3rd December 2014 Lords Chamber

[Lord Deighton]

One of the things I have enjoyed about working with my right honourable friend the Chancellor is that, right through to the end of this Parliament, the Treasury is looking at new measures and trying to continue to implement the plan that has been laid out with such effectiveness. To be sticking to the target of getting the deficit down within the context of a very challenging economic environment, while being focused on structural issues and other important things that affect the economy and broader society, is indeed the sign of a good Statement.

[Lord Stoddart of Swindon (Ind Lab)]

My Lords, does the Minister recall the promise made by Mr Osborne when he was the shadow Chancellor to the effect that, when his party came to Government, he would raise the inheritance tax threshold to £1 million? He wowed his party conference with that statement. That is said to have made Mr Brown put off the election, and indeed to increase the inheritance tax threshold to £325,000 and introduce transfers between spouses. What has happened to that promise? The threshold is still £325,000 and there is no mention of it in the Statement today, yet it was a central point of Tory policy at the last election. When are we going to hear more about this issue, or have the Government dropped that promise?

[Lord Deighton]

The Government keep all taxes under review. With respect to taxes at the end of life, the focus of the Government has been much more on pension reform, which has been radical and generous in terms of how it will treat inheritance. In fact, my right honourable friend the Chancellor confirmed today that the tax on passing on a pension pot, which had been at 55%, will be removed. He has also introduced a similar arrangement for ISAs being passed on to spouses. While we have not yet made changes to inheritance tax, we have been thoughtful about taking care of some of the issues that complement it.

EU Budget Surcharge

Lord Stoddart of Swindon Excerpts

Monday 10th November 2014 Lords Chamber

[Lord Cormack (Con)]

My Lords—

[Lord Stoddart of Swindon (Ind Lab)]

My Lords, is the Minister aware—it was these Benches’ turn.

[Lord Ashton of Hyde (Con)]

Actually, my Lords, we have had one question from each.

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[Lord Deighton]

It is hard for me to put it in historical perspective, but as always, the Prime Minister and my right honourable friend the Chancellor have done an excellent job representing the interests of this country.

[Lord Stoddart of Swindon]

There is a minute, so I have just made it. The country was treated to a lot of sound and bluster from the Prime Minister stating that he was not going to pay a penny. Today, by smoke and mirrors, the Chancellor has reduced that amount to £850 million. However, is the Minister aware that people think that that is a lot of money, which is to be added to the £11 billion we shall be making in contributions?

[Lord Deighton]

I agree with the noble Lord that £850 million is a lot of money. We will expect value for money for that kind of investment. I should make clear that the Prime Minister said that we would not be paying £1.7 billion on 1 December. In fact, we will pay nothing on 1 December. We will pay £850 million in two payments next year.

EU: UK Contribution

Lord Stoddart of Swindon Excerpts

Wednesday 30th October 2013 Lords Chamber

[Lord Newby]

My Lords, I am grateful to the noble Lord. I completely agree with him.

[Lord Stoddart of Swindon (Ind Lab)]

Will the noble Lord confirm that the gross cost to the taxpayer is not £55 million per day but £18 billion every year? If we were not paying that amount in exchanges, would not the Government be able to reduce the deficit on expenditure very much more quickly than they intend to at the present time?

[Lord Newby]

My Lords, the net payment over the past six years has been about £34.8 billion. This equates to less than 1% of our total public expenditure over that period. It is a very substantial amount, but, as I have now said several times, you have to set against that amount all the economic and other benefits, including those mentioned by my noble friend Lord Ashdown, that the UK derives.

EU: UK Membership

Lord Stoddart of Swindon Excerpts

Thursday 24th October 2013 Lords Chamber

[Lord Stoddart of Swindon (Ind Lab)]

My Lords, I join others in congratulating the noble Lord, Lord Shipley, on introducing this debate, and I must congratulate the noble Lord, Lord Wrigglesworth, on his excellent and telling maiden speech. In another place, when we were both members of the Labour Party, he and I used to spar about this issue in the Tea Room and elsewhere, but time is short, so I must carry on with the debate.

As some noble Lords will know, I never wanted to join the Common Market and I believe now that it would benefit this country if we left the European Union. Noble Lords will recall that when Harold Macmillan recommended that we join the then Common Market, or the EEC, he said that one of the major reasons was that Britain deserved to have the chill wind of competition. We have certainly had that. Our manufacturing industry, which in 1973 represented 32% of GDP, now represents only 10% of GDP.

The noble Lord, Lord Shipley, referred to a number of firms, the CBI and other organisations that desire at all costs to remain in the European Union and warn of the problems, difficulties and injury that will occur to this country if we left. When I was a Member for Swindon and fighting the referendum, Lord Stokes—he was then Sir Donald Stokes, the chairman of BLMC—wrote to all my constituents and said that if we left the Common Market they would all lose their jobs and the car industry in this country would be destroyed. We decided to remain in and, of course, the car industry was destroyed by our remaining in rather than the reverse. I might add that many of the people who have been quoted were the very people who recommended that we should join the euro. It is fortunate that we did not take their advice then. Perhaps we should not take their advice now.

I must quote some figures. We have heard a lot about the benefits of being a member of the EU, so let us now hear about some of the disbenefits. For a start, we pay a contribution of between £10 billion and £12 billion for the purpose of being a member of the EU. That represents £55 million per day and translates into £150 per person every year. In the case of a family, it is £500 per year per family. We are arguing about £100 on energy bills, yet every year each family pays £500 to belong to the European Union.

We have heard a lot about the trade figures, so let us look at some of them. In 2007, our exports to the European Union were £318 billion. In 2012, they were £278 billion. That means that, instead of becoming a better market for us, Europe is becoming a worse one. In 2007, exports to the rest of the world were £370 billion and in 2012 they were £394 billion, so our trade with Europe is declining but our trade with the rest of the world is going up. I think that we should take note of that. Furthermore, the current adverse balance of trade is going up—shooting up, in fact. In 2007, the deficit was £40.9 billion; in 2012 it was an enormous £83.2 million. So there are figures on the other side, of which we should take notice. The EU is a declining market.

Unfortunately, I do not have time to deal with more aspects, but I want to refer to the democratic deficit. Of course, I would like to see this reduced to nil and for us to get our own democracy and central government back. Unfortunately, that is not easy. As the President of the Commission, José Manuel Barroso, said, David Cameron’s attempt to renegotiate Britain’s relationship with the EU was doomed before it began. That really says everything about the centralised nature—almost dictatorship—of the EU.

Spending Review

Lord Stoddart of Swindon Excerpts

Wednesday 26th June 2013 Lords Chamber

[Lord Deighton]

I absolutely share the noble Lord’s experience that economic forecasting is a hazardous art form. However, if done thoughtfully, it gives us the basis for creating a long-term plan against which we can make the best decisions possible, given the information we have. One of the things that I have been working on with the Chancellor is to take a longer-term perspective, particularly of our capital budget, and to have that budget as a foundation for our long-term fiscal management rather than being the bit that gets added on at the end. That is what results in the stop-go approach to investment which has plagued us for many years. For me, what it rather reflects is a shift in priorities to deal with the things for which you need to create a longer-term planning horizon, so that we can get the investment side of what we are doing sorted out over the right kind of horizon.

[Lord Stoddart of Swindon]

My Lords, to get back to a point raised by the noble Lord, Lord Forsyth, about quantitative easing, or the printing of money, there is of course the fact that the Government have saved £9 billion because of low interest charges. Those savings have been made at the expense of interest rates on savings, particularly those on pensions. Pensioners have been very badly hit because their expectations, and indeed their pensions, have been lowered for the future. Is it not a shame that some of the most vulnerable people in our society, such as the pensioners, have been made very much poorer in order to finance government spending, which is still far too high?

[Lord Deighton]

I of course accept that one of the consequences of lower interest rates is lower returns to savers. That absolutely follows on and it is a consequence in part of our current monetary policy, and indeed the monetary policy of every major nation. One compensating comment I would make is that of all the constituencies which this Government have striven to protect, looking at the triple-lock protection on pensions the basic state pension has clearly been kept in very good shape during this period of economic challenge.

EU: Budget

Lord Stoddart of Swindon Excerpts

Monday 4th March 2013 Lords Chamber

[Lord Deighton]

There were three key things that the Prime Minister wanted to protect in terms of the expenditure coming into the UK. The first was to make sure that our universities were very well positioned to bid for the grants available. That part of the budget has gone up and the rewards are based on excellence, so they should do well there. Secondly, he wished to make sure that our farmers are protected in terms of the environmental programmes that they support, which he did. Thirdly and finally, the structural aid that goes to our less well-off regions has been protected at the existing base level of €11 billion.

[Lord Stoddart of Swindon]

My Lords—

[Lord Campbell of Alloway]

My Lords—

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[Lord Stoddart of Swindon]

My Lords, none the less, is it not true that the final outcome of the arrangement for the next seven years will in fact mean that the United Kingdom will be paying £500 million extra per year? Is that really acceptable under the present circumstances with cuts to our own social services?

[Lord Deighton]

The final outcome will be determined on a year-by-year basis depending on exchange rates, the growth of our national income and other such factors. The spirit of the question is indeed correct: our net contribution is likely to go up. That is simply because of the concessions made in the 2005 negotiation, when we surrendered some of the abatement advantages.

European Union Membership (Economic Implications) Bill [HL]

Lord Stoddart of Swindon Excerpts

Friday 25th November 2011 Lords Chamber

[Lord Stoddart of Swindon]

My Lords, I join other noble Lords in thanking the noble Lord, Lord Pearson, for his persistence in bringing this Bill forward for discussion on Second Reading in this House. I have no doubt that many people have been coming up to him lately, as they have been to me, saying, “You know, you were right all along”. The speeches that we have heard so far today—a balance of speeches anyway—have also tended to confirm that.

The noble Lord, Lord Desai, who is not in his place, suggested that the noble Lord, Lord Pearson, was in the minority, but I remind the House that recent opinion polls have shown quite clearly that the majority of the people wish and would be prepared to leave the European Union, and that 70 per cent of them would like a referendum on whether we are in or out, which has been denied to them. Of course the noble Lord, Lord Desai, was right that we should have a wide-ranging discussion on the whole issue. Reference was made to replies given to noble Lords, including me, that the benefits of the European Union are self-evident. Perhaps that should be turned around to show that the disbenefits of the European Union are self-evident.

I would have liked to talk a great deal about trade, but unfortunately the time restriction precludes that. However, I point out that since 1973 we have traded in permanent deficit with Europe, and that the deficit at the moment is running at £38 billion a year. That represents a lot of lost jobs to people in this country; we should not forget that. If we need more jobs, we need to lift our trading eyes to the world of 7 billion people, not focus on the narrow confines of the centrist, declining and undemocratic European Union.

We continue to hear the old mantra that the UK should be in the European Union but not ruled by it. It is now becoming quite clear that the objective of the European Union and its leaders is to create a country called Europe in which nation states are marginalised, relegated to third-division status and ruled from Brussels by bureaucrats—I understand that they are now called technocrats. We cannot continue to belong to the EU and not be ruled by it.

Britain has been plagued by a succession of leaders who are faint-hearted and believe that Britain cannot exist as an independent, self-governing nation. They insist that outside the European Union we will be sidelined and miss the Euro train or ship. Even when they can see that we are heading for the buffers or the rocks, they persist in saying that it is in our interests to be there. The Prime Minister was at it again in his speech at the Lord Mayor's banquet, claiming to be a Eurosceptic. The sort of Europe he says he wants is not on the agenda and he should think about what he is saying. Nevertheless, he trotted out the old, tired mantra that outside the EU we would end up like Norway.

Let us have a look at Norway. I am most obliged to the Times for an article on Tuesday, 15 November on how the UK and Norway compare. Norway's unemployment rate is 3.2 per cent; the United Kingdom’s is 7.8 per cent. Norway’s household income is $32,400; the United Kingdom's is $28,600. Norway emits 0.19 kilograms of carbon per dollar of GDP; the United Kingdom emits 0.26 kilograms. Norway’s national savings rate is 34.7 per cent; the United Kingdom’s is 11.2 per cent. Norway’s annual working hours are 1,407; the United Kingdom’s are 1,646. What conclusion does the Times come to? If you want a good life, forget Britain and go to Norway.

Perhaps we should stop talking about how Britain would be sidelined outside the European Union. After all, inside it we have only 8.5 per cent of the vote—and Norway would have less than one per cent. What sort of influence is that? We would be far better off outside the European Union. We would be able to trade with the world, keep our own money that we are handing over every year to the extent of £10.3 billion and use it for the betterment of our own people.

EU: Budget

Lord Stoddart of Swindon Excerpts

Monday 16th May 2011 Lords Chamber

[Lord Sassoon]

I am very grateful to my noble friend. Of course, we discussed some of the structural reform issues in a debate in the Chamber last Thursday. I can reiterate and confirm that the Government are working very hard indeed to be an active supporter of the whole 2020 structural reform programme. Completing the single market is perhaps the most critical component of that, and the Government are pushing very hard for that to happen.

[Lord Stoddart of Swindon]

My Lords, in the light of the huge increases in our net contribution, which will continue, is it not time that we had a cost-benefit analysis of our membership of the EU; or, perhaps better still, a referendum on whether we should remain in it?

[Lord Sassoon]

My Lords, the analysis is carried out periodically by the Treasury. Reviews of the independent analysis of the benefits of our membership are available on the Treasury website. Europe accounts for 40 to 50 per cent of our exports. It is critical that we play a constructive part in Europe and that we work on factors such as those referred to by my noble friend Lord Newby to make sure that the market works better and that the UK takes full advantage of it.

Currency Markets

Lord Stoddart of Swindon Excerpts

Wednesday 2nd February 2011 Lords Chamber

[Lord Sassoon]

My Lords, I am grateful to my noble friend for again underlining some of the successes in recent financing in the eurozone, which is an encouraging sign. I would not go so far as presuming to give the ECB further advice, but certainly recent market operations have been encouraging.

[Lord Stoddart of Swindon]

Does the noble Lord agree that the fact that we are not in the euro has meant that our currency has been able to take the strain and that exports have increased? This country is likely to survive much better out of the euro currency, especially in regard to interest rates, which have been kept particularly low, to the benefit of industry and house buyers.

[Lord Sassoon]

I am grateful to the noble Lord and I thoroughly endorse his sentiments. This country has benefited greatly in recent years through the crisis by not being in the euro and by being able to develop our own policy responses. This coalition Government have no plans to enter the euro and are not making any preparations to do so at any future date.