Spring Statement

Lord Suri Excerpts

Wednesday 20th March 2019 Lords Chamber

[Lord Suri (Con)]

My Lords, this is a country in good economic health. The Chancellor’s Spring Statement confirmed that the difficult decisions made in 2010 and continued to the present day were correct, necessary and proportionate. We now stand in a much improved financial position. There have been nine consecutive years of growth, the OBR has forecast further growth every year for the next five years and the employment miracle endures.

Since 2010 more than 3.5 million people have found work, and the unemployment rate of 4% stands lower than it has at any time since the mid-1970s, when I imagine most of us entered politics. While debt did peak in 2016-17, it has now started to fall at a sustained rate, and this gives me great cause for optimism.

A country which recklessly grows its debt pile is simply storing up problems. If the Opposition were to gain power and implement many of the ideas in their manifesto, we would be burdening the younger generation with more and more debts that they would have to pay off through reduced spending or increased taxation. I am pleased that the Chancellor has recognised this reality. It seems that, after a sustained period of austerity, we are in a satisfactory position to increase spending on a range of vital services, which I am sure will be warmly received across the House.

However, this will need to be underpinned by an agreement on our withdrawal from the European Union. I have been clear since the referendum that we in this and the other place must give effect to the will of the people. The withdrawal agreement that the Prime Minister has negotiated strikes a good balance between maintaining close economic and security ties with the EU and respecting the wishes of the people to leave the bloc.

There will doubtless be an extension. Some will not mind, but they must think hard about the needs of business. We have suffered through almost three years of painful uncertainty, struggling to know what the future relationship will be for our largest export market. A further long extension would be a slap in the face for those who voted to leave and those who need certainty. It would undermine business investment, encourage lower consumption and diminish tax revenues.

In that scenario, the easing of austerity that I mentioned before will simply not be possible. Additional funds will need to be diverted for more wasteful no-deal planning. I therefore urge my colleagues in the other place to pass the deal when it returns, and let us get on with delivering a solidly pro-growth, pro-jobs agenda.

I should add that I am pleased to see a fresh rise in housebuilding. Last year, England delivered more than 222,000 new homes, the highest total in all but one of the last 31 years. This is a vote of confidence in one of our most under-supplied markets and a strong step towards the 300,000 target.

I am pleased that a significant portion of this round of the housing infrastructure fund is going to large sites such as Old Oak Common and Didcot garden town. However, the Letwin review specifically mentioned the difficulties of upgrading infrastructure on large sites. Therefore, the updating of planning guidance will need to be done in time for it to be useful for this round of infrastructure upgrades, and I hope that the Government are cognisant of that reality.