Regional Growth
Debate between Lord Wallace of Saltaire and Lord Livermore(3 days, 22 hours ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Livermore (Lab)
I agree with the noble Lord’s points. He asks about the Green Book. He has much more experience in this matter than I do. We have set out—and I hope that he agrees—that for too long the guidance in the Green Book has been biased against certain parts of the country. We want to address that. On whether we will prioritise the spending on where it has the greatest return, yes, this is key to the methodology that the Green Book sets out. The Green Book reinforced investment in areas that were already successful. It did not necessarily enable investment in areas where there was a high degree of potential. That is what we want to do. By investing in areas of high potential, there will be huge returns. We have already set this out. There could be a potential increase of about 3% of GVA if we can get the city regions up to the average productivity of the country, as the noble Baroness, Lady Neville-Rolfe, said. That is the intention and why we are doing what we are doing.
The noble Lord talked about the importance of fiscal responsibility. He will know that this Government inherited a £22 billion black hole in the public finances. Restoring fiscal responsibility is the central driving purpose of the stability pillar of our growth mission. We have set out very clear fiscal rules that require no borrowing for day-to-day spending, unlike the previous Government, who had that £22 billion black hole in their day-to-day spending. We have repaired that. At the first opportunity, when the fiscal rules were tested at the Spring Statement, we repaired the headroom against the fiscal rules in full to what it was before. We have set out very clear fiscal rules. We will stick to them, and everything that we set out in the spending review next week will be shown to be fully funded and fully in line with the fiscal rules.
Lord Wallace of Saltaire (LD)
My Lords, I welcome the proposals. I remind the Minister that the Leeds tram scheme was cancelled by the last Labour Government in 2009, so it is very good to see it coming back 26 years later.
I note that the Statement says that modern growth
“relies on dynamic, interconnected city regions”.
I live on the outskirts of Bradford, the largest city in Britain without a mainline station. I am conscious that the lack of a decent trans-Pennine link and the overcrowding of the existing rail links between Leeds and Manchester is a huge problem for interconnection between three potentially vital regions of Britain—West Yorkshire, South Yorkshire and Greater Manchester. I remind the Minister that a new trans-Pennine rail link, Northern Powerhouse Rail, was talked about, planned and proposed, on and off, throughout the last Government. We need to make something which will be transformative for the entire north of England.
Lord Livermore (Lab)
I am grateful to the noble Lord for his support and for what he says. He knows much more about that region than I do. He will know that in the previous Budget, we funded the trans-Pennine upgrade for the work that was under way. We gave a further £2.1 billion investment for West Yorkshire yesterday, which will deliver for the West Yorkshire mass transit system, linking up Bradford, Kirklees, Calderdale, Wakefield, Pudsey and Leeds. I hope that goes some way towards what he is asking for. There will be further transport announcements in the spending review next week. I look forward to debating those then.
Tax: Changes
Debate between Lord Wallace of Saltaire and Lord Livermore(1 month, 1 week ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Wallace of Saltaire (LD)
My Lords, do the Government remember the distinction made by the previous Conservative Government between people who were from somewhere and people who might be from anywhere? It was made with the clear intention of saying that people who liked going abroad were somehow not fully loyal to England; they were more European or something else. Given that distinction, which the previous Conservative Government and their Prime Minister made, is it not now a little hypocritical to say we need to defend those who might easily move away to Dubai, Thailand or Monaco, rather than the interests of people who are committed to this country?
Lord Livermore (Lab)
I remember the “citizens of nowhere” comment that the noble Lord refers to. I think that, like much of what the previous Government did, it was not an encouraging thing to say. But let us remember that it is not for me to justify what the previous Government did. This Government are committed to addressing unfairness in the tax system so that everyone who makes their home in the UK pays their taxes here. I think that is absolutely the right principle from which we should proceed. Both the previous Government and this Government increased taxes on non-doms because it is necessary to raise revenue to repair the public finances and fund our public services. That is the fairest way of raising the necessary revenue while ensuring the UK remains an attractive place to live and invest.
Budget: Taxes and Borrowing
Debate between Lord Wallace of Saltaire and Lord Livermore(7 months ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Livermore (Lab)
On inheritance tax, currently the largest estates pay a lower effective tax rate than the smaller estates. I do not think that that can be right. Agricultural property relief is given on top of the normal inheritance tax thresholds. Individuals can pass up to £500,000 to a direct descendant, and then agricultural property relief would provide a further £1 million tax-free allowance. This means a couple can pass on up to £3 million tax free. Above that, there is a 50% discount on inheritance tax, so a rate of only 20% applies, and any liability can be paid in 10 yearly instalments. This seems to me to be pretty fair in the context of the decisions we have taken and in the context of what everyone else in society gets.
Lord Wallace of Saltaire (LD)
This Budget provided only a limited increase in defence spending, under circumstances in which the Ukraine war is depleting British stocks and our Armed Forces are under very considerable strain. If the Government were to consider that they needed to increase defence spending further, and to raise tax for that, would they be confident that the Conservative Party would support that, or do they think they would oppose it?
Working From Home: Public Sector Productivity
Debate between Lord Wallace of Saltaire and Lord Livermore(7 months, 2 weeks ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Livermore (Lab)
The noble Lord makes an interesting point. The Government inherited a situation where public service productivity remained 6.4 % below pre-pandemic levels, and the ballooning size of the Civil Service—as he described it—under the previous Government may have contributed to that. I do not know the answer to that, but the Chancellor has been very clear that the Government will establish a programme of public sector reform to drive much greater productivity, improving the quality of public services and the value for money that we receive.
Lord Wallace of Saltaire (LD)
My Lords, the Government have inherited a rather shrunken Whitehall estate from their Conservative predecessors, where hot-desking had become the norm in a number of departments. Are the Government confident that, if all civil servants turned up five days a week, there would be enough desks for them to sit at?
Lord Livermore (Lab)
No, there would not. One of the benefits of working from home is a much more efficient use of office space. It has a beneficial impact on capital in terms of releasing office space for more productive use, and that is currently what is under way.