Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the Organisation for Economic Co-operation and Development (OECD) report OECD Economic Outlook, published on 8 June; and what assessment they have made of the prediction in that report that Britain will experience zero economic growth in 2023.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The OECD’s latest Economic Outlook underlines the uncertainty around the global economic outlook. The OECD forecast global growth will slow sharply this year and to remain at a subdued pace in 2023 linked to the effects of Russia’s invasion of Ukraine, inflationary pressures across many economies and continuing effects of the Covid-19 pandemic. The OECD estimates global growth of 3.0% in 2022 and 2.8% in 2023.
The OECD forecast that the UK economy will grow by 3.6% this year, the second fastest in the G7, while growth in 2021 was the highest of the G7 (7.4%). Looking ahead, we face challenges across the global economy – common challenges with other countries including high inflation. This is why we are taking significant action to support households with the cost of living totalling around £37bn this year. We also continue to make progress against our plan for growth to support the economy, including a landmark capital uplift in the Spending Review 2021, the creation of the UK Infrastructure Bank, more funding for apprenticeships and skills training, a commitment to double public investment in R&D, and the launch of the UK-wide Help to Grow scheme.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made about the likelihood of the UK falling into recession during the course of this year; and what plans they have to avoid it.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
Like other advanced economies, the UK is affected by global economic challenges, including the unprovoked Russian invasion of Ukraine. Support provided over the past two years has put the UK economy in a good position to deal with these challenges, with a record number of employees on payrolls and a strong economic recovery from the pandemic. Annual growth in 2021 was the fastest in the G7, and GDP data for Q1 2022 showed the UK had the joint fastest growth in the G7.
The government continues to make progress against our plan for growth to support the economy, including a landmark capital uplift in the Spending Review 2021, the creation of the UK Infrastructure Bank, more funding for apprenticeships and skills training, a commitment to double public investment in R&D, and the launch of the UK-wide Help to Grow scheme. We are also taking significant action to support households with the cost of living totalling around £37bn this year.
The Office for Budget Responsibility are the government’s official forecaster, and they will update their forecasts for UK GDP in the Autumn.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the effect of the conflict in Ukraine on the cost of living in the UK.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The conflict in Ukraine has affected the global economy. The government is closely monitoring developments and the channels through which they may affect the UK economy, and we remain committed to supporting businesses, people, and jobs.
The high inflation seen recently has largely been caused by the Covid-19 pandemic, as global supply chain disruption has pushed up goods prices, and higher global energy prices. Russia's invasion of Ukraine has added to inflationary pressures and the cost of living- it has already pushed up the prices consumers pay for fuel, some goods and is contributing to higher expected energy prices in the autumn.
We know that millions of households across the UK are struggling to make their incomes stretch to cover the cost of living. That is why the government is providing over £15bn of additional support, as announced by the Chancellor on 26 May 2022. This is in addition to the £22bn announced previously, with government support for the cost of living now totalling over £37bn this year.
More information on government support for the cost of living can be found on the Gov.uk website.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether they will review their decision not to impose a windfall tax on energy companies in response to the increased cost of living.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The Government is introducing the Energy Profits Levy, a new 25% surcharge on the extraordinary profits the oil and gas sector is making.
The new Energy Profits Levy will raise around £5 billion over the next year which will go towards supporting people through the new cost of living measures announced by the Chancellor.
As part of the levy, a new tax relief is being introduced to encourage firms to invest in the UK. The new 80% Investment Allowance means businesses will overall get a 91p tax saving for every £1 they invest.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what plans they have, if any, to reconsider the scheduled end of the Stamp Duty holiday on 31 March 2021.
Answered by Lord Agnew of Oulton
The temporary SDLT relief was designed to create immediate momentum in a property market where property transactions fell by as much as 50 per cent during the COVID-19 lockdown in March. This measure will also support the jobs of people whose employment relies on custom from the property industry, such as retailers and tradespeople.
The Government will continue to monitor the market. However, as the relief was designed to provide an immediate stimulus to the property market, the Government does not plan to extend this relief.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the independence of HSBC Bank from the undue influence of foreign governments.
Answered by Lord Agnew of Oulton
The government monitors the operation and functioning of the financial sector and its participants on an ongoing basis, and does so across a wide range of matters. However, we do not comment on issues relating to individual private companies.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the combined economic cost to the UK of Brexit and COVID-19.
Answered by Lord Agnew of Oulton
HM Treasury does not produce forecasts of the economy or public finances.
The Office for Budget Responsibility (OBR) is responsible for producing forecasts of the economy and public finances. Their forecasts incorporate their assessment of the economic and fiscal impact of EU exit.
On 14 April the OBR published a reference scenario assessing the potential impact of coronavirus. In this scenario GDP is assumed to fall by 35 per cent in the second quarter of 2020 before recovering in subsequent quarters. The OBR note that the Government’s policy response should help limit the long-term damage to the economy and public finances.
The economic impact of our relationship with the EU is subject to thriving public debate amongst analysts. The specifics of EU exit depend on the outcome of detailed negotiations. We will continue to keep Parliament informed with appropriate analysis at appropriate times in a way that does not impede our ability to strike the best deal for the UK.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government how many public sector workers have been furloughed with (1) full, and (2) reduced pay; and what is the total cost to the taxpayer of such furloughs.
Answered by Lord Agnew of Oulton
It has not been possible to provide an answer to these questions as the figures requested are not readily available.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what estimate they have made of the number of private sector workers who have been furloughed with (1) full, and (2) reduced, pay; and what is the total cost to the taxpayer of such furloughs.
Answered by Lord Agnew of Oulton
It has not been possible to provide an answer to these questions as the figures requested are not readily available.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government how many self-employed workers are on furlough with (1) full, and (2) reduced, pay; and what is the total cost to the taxpayer of such furloughs.
Answered by Lord Agnew of Oulton
It has not been possible to provide an answer to these questions as the figures requested are not readily available.