Cost of Living Support

Debate between Viscount Younger of Leckie and Lord Bilimoria

Thursday 22nd June 2023 Lords Chamber

[Viscount Younger of Leckie (Con)]

I hope the House will recognise that I am certainly not playing down the seriousness of the position at the moment. I am very aware, as the House is, of the further interest rate rise today. The Government absolutely recognise the pressures that people are facing and have acted, providing total support of over £94 billion, which I mentioned earlier, over 2022-23 and 2023-24. I have already mentioned the uprating, which I will not go over again, and that we will be making further cost of living payments totalling £900.

However, there is more to say, given the noble Baroness’s question. I have already mentioned that the Chancellor is meeting mortgage lenders tomorrow to see what more can be done, but he has already met the Competition and Markets Authority, to be sure that there is fair competition between the supermarkets so that we make sure that food prices come down. As we are all aware, food inflation is still far too high. It was 19% last month; it has now nudged down a bit but it is still far too high. That is really important, particularly for those who are the most vulnerable. I reassure the noble Baroness that we really do take this seriously. I think we all know that it is a defining moment.

[Lord Bilimoria (CB)]

My Lords, I remind the Minister that, in February 2021, when I was president of the CBI, I asked Rishi Sunak, when he was Chancellor, if he was worried about inflation, because I was worried about it then. Today, we have the highest inflation in the G7, while the United States of America is already at 4% inflation—less than half our rate. Today, our interest rate is at 5%, the highest in 15 years, and we have the highest level of tax burden in seven decades. Today, we have a debt to GDP ratio of 100%; the last time it was at that level was over six decades ago. Does the Minister acknowledge that two of the Prime Minister’s five priorities are growth and halving inflation? Given the situation we are in now, where households are struggling to make rental and mortgage payments, which are increasing as a proportion of their income, is a recession likely? What are the Government’s plans to help people deal with their mortgage and rental payments, because there is a crisis looming in front of our eyes?

[Viscount Younger of Leckie (Con)]

I hope I can help the noble Lord. As I have already mentioned, inflation really is one of the Prime Minister’s key priorities. He has made it clear, as we have, that reducing inflation is absolutely key. He also speaks about growth, while making it clear that growth comes as a secondary item to inflation. However, it is also important that the economy grows. In previous answers, I have made it clear that we are doing as much as we possibly can to look at what more banks can do to be helpful. One thing which I have not said is that we are working closely with the Bank of England, while making it clear that the Bank is independent in also working as hard as it is in the fight to bring down inflation. It is not just us in the UK; as others have said, there are similar issues in other countries, particularly in Europe. However, I realise that in the UK we still have a lot of work to do.

Free Trade Agreement: New Zealand

Debate between Viscount Younger of Leckie and Lord Bilimoria

Monday 25th October 2021 Lords Chamber

[Viscount Younger of Leckie (Con)]

I hope that I can give my noble friend some reassurance, because the UK’s climate change and environmental policies, including in trade negotiations, are some of the most ambitious in the world, reflecting our commitment as the first major economy to pass new laws for net-zero emissions by 2050. On his points about the deal, this trade agreement with New Zealand is one of our greenest ever. It includes a ground-breaking chapter that reinforces our commitment to the Paris temperature goals and our efforts to meet net zero. It encourages the growth of a clean economy and demonstrates our global leadership on climate and environmental protection. This agreement will encourage trade and investment in low-carbon goods, services and technology. It will demonstrate global leadership in climate and environmental protection, but it includes commitments on urgent environmental challenges such as marine litter, sustainable agriculture, air quality and the transition to a circular economy.

[Lord Bilimoria (CB)]

My Lords, as president of the CBI, I was proud to play a role in helping both the Australia and New Zealand free trade agreements. The Australia one was negotiated and achieved in 365 days. It is an ultramodern, comprehensive, super-duper FTA, with goods, services, innovation, SMEs, IP, data and mobility. Can the Minister confirm whether the New Zealand FTA is as super-duper and comprehensive as the Australia one? Secondly, the Australia FTA now allows 18 to 35 year-olds from the UK and Australia to work, live and travel in each other’s countries for three years. Does the New Zealand deal also offer this facility to UK and New Zealand citizens?

[Viscount Younger of Leckie (Con)]

I hope I can reassure the noble Lord that this is a comprehensive deal. Many working groups have brought it to this stage, which is an agreement in principle. To reassure the House, this stage is now leading to signature and, once signed, the deal will be presented to Parliament. I am sure the noble Lord and others will have the chance to debate it.

It is very much part of the deal to allow greater flexibility for individuals to travel between the two countries. It will allow families, for example, to travel to New Zealand and stay there for a time. To answer the noble Lord’s question, that period of time is yet to be clarified, but it is part of the deal. I am sure it will be greatly beneficial to those doing business from the UK to New Zealand, and vice versa.