Budget: Economic and Fiscal Outlook

Baroness McIntosh of Pickering Excerpts

Tuesday 5th May 2020 Lords Chamber

[Baroness McIntosh of Pickering (Con)]

My Lords, I welcome this debate. I found my noble friend Lord True’s introduction extremely interesting. I hope that the Government will commit to comment annually on their convergence programme in the form of a similar report. I will focus on where we are as measured by government deficit and debt, the long-term interest rate and exchange rate fluctuations. I will also look at—not just in the way that the noble Baroness, Lady Bennett, has done—the extreme challenges coming up, for Defra in particular, of food supply, environmental protection, global warming and climate change.

This week, we are celebrating the third anniversary of delivering competition in the provision of water supplies to business customers. One of the unintended consequences of Covid-19 has been that many businesses are simply not operating and are therefore not in a position to pay for their water supply. It is a matter of great regret and sadness that there will, undoubtedly, be potential for the failure of a number of water companies. The legislation at the time did not tackle the problem of exiting the sector. Ofwat is committed to looking into this, but possibly not before 2021. In addition to the significant economic disruption which has already been identified in the reports to which my noble friend Lord True referred, there are other consequences, unintended and unforeseen, of which the Government might wish to take note.

I will also reference the Financial Times. In an article in early April, the Governor of the Bank of England pledged not to slip into permanent monetary financing of government policy. He went further, stating that the central bank—the Bank of England—would not engage in permanent monetary financing. In his opening remarks, my noble friend specifically outlined the Government’s Covid-19 expenditure, which has continued, and indeed grown, since the Budget earlier this year. What measures have the Government identified, and intend to take, to support businesses and individuals, if—as in relation to business failures in the water sector —they require such support beyond the period to which my noble friend referred?

Public Services: Update

Baroness McIntosh of Pickering Excerpts

Wednesday 29th April 2020 Lords Chamber

[Lord True]

My Lords, I certainly take into consideration what the noble Lord says. As I said earlier, through the help of local authorities and the truly outstanding agencies that work in the area of assisting homeless people, the Government believe that we have reached some 90% of those we wish to. But I hear what the noble Lord says and will pass on his remarks to colleagues.

[Baroness McIntosh of Pickering (Con)]

I congratulate my noble friend and his department on the work they are doing on domestic food supply. Now that we have left the European Union, can my noble friend the Minister explain what steps are being taken to encourage schools, hospitals, prisons and councils to source their meat from domestic production at this time? Will he be mindful of the overnight loss of a huge part of the dairy production market, leaving 2,000 farmers possibly destitute and potentially leading to a mass slaughter of their cows?

[Lord True]

My Lords, I regret that the sound was not very good for my noble friend’s question. I certainly caught her concern for farmers, and I take that point; my right honourable friend George Eustice has been addressing that matter. I am sorry that could not catch the other parts of her question, but I will ensure that she gets a written reply.

Economy: Update

Baroness McIntosh of Pickering Excerpts

Tuesday 28th April 2020 Lords Chamber

[The Deputy Speaker]

Yes. As the Minister was not able to hear, the noble Lord should indeed ask his question again.

[Baroness McIntosh of Pickering (Con)]

Will the noble Baroness be able to stop the clock, if questions are being repeated?

[The Deputy Speaker]

I will seek clarification on that point, but I anticipate that we will be able to do that. Now we have the noble Lord, Lord Agnew, again—splendid. Would you kindly say a few words so that we can be sure that everyone can hear you?

--- Later in debate ---

[Lord Agnew of Oulton]

The noble Baroness is right to say that universities play an extremely important part both in our society and in our economy, but it is worth reassuring her that they are eligible in aggregate, as business in their own right, for some £700 million-worth of coronavirus support. That support is available to them now. Very active discussions are going on, particularly about the loss of foreign students, because of course they pay a higher tariff and thus have in the past provided good cash flow for universities. It is worth making the point that universities have always been jealous of their independence, and if they need government support now, I hope that there will be a bit of humility on the part of those vice-chancellors who take very large salaries from their organisations. I would expect there to be some conversation about that if there is to be any support.

[Baroness McIntosh of Pickering]

Perhaps I may I impress upon my noble friend the Minister the plight of small and medium-sized businesses, particularly those in the tourism, hospitality and retail sectors. My noble friend will appreciate that many in the hotel and tourism sectors have already lost what is the main part of their season, from Easter, and in addition they have a great number of staff who are on zero-hour contracts. Many have chosen to take council tax payments in lieu of business rates but are also faced with commercial mortgages, on which they cannot get any form of mortgage payment holiday. Will my noble friend ensure that the Treasury directs some support particularly to those in the hospitality, tourism and retail sectors whose cash flow is at rock bottom?

[Lord Agnew of Oulton]

I share my noble friend’s concern for these particular sectors, and I understand absolutely where she is coming from. It is worth reiterating the specific support which has already been made available. I refer to the 100% holiday for business rates which is estimated to be worth £11 billion just to English businesses, as well as the grant system. Some 203,000 properties are eligible for a £10,000 grant and 120,000 properties are eligible for a £25,000 grant which in aggregate comes to around £5 billion. I also refer to the bounce-back loans which were announced yesterday since they will be some which these businesses can take advantage of. However, I repeat that I share my noble friend’s concerns.

European Union: Negotiations (European Union Committee Report)

Baroness McIntosh of Pickering Excerpts

Monday 16th March 2020 Lords Chamber

[Baroness Noakes]

I will say to the noble Lord only that it may have the headings of the political declaration but the content is significantly different in a number of places, as indeed was set out in the EU Committee’s report.

[Baroness McIntosh of Pickering (Con)]

I am following very closely what my noble friend has said. I understand that she has years of experience in a certain sector, but what does she fear about scrutinising a policy such as fisheries or agriculture, or a potential no deal where the consequences could be to decimate the sheep market in this country? She is a parliamentarian. What does she fear from scrutiny?

[Baroness Noakes]

My Lords, I fear nothing from scrutiny. I am making the point that Parliament has consciously removed provisions that were contained in an earlier Bill; the version of the withdrawal Act that is now the law of the land has no such provisions and has deliberately removed them. That, to me, expresses the will of Parliament that Parliament does not expect to be involved in the minutiae of the negotiations with the EU; it is simply that.

I suspect that what is driving a lot of this debate is the fact that the majority of Members of this House never favoured exiting the EU and continue to be of the remain persuasion. I am sure that that is true of the EU Committee. Having been a member of that committee, I am well aware of the balance of its membership. I have raised in your Lordships’ House before the point that, if this House is out of alignment with the opinion of the country at large, that is at best unhealthy; at worst, it could undermine support for this House’s continuation, at least as currently constituted. I believe that the House and its committees need to think very carefully about that.

To conclude, we should praise the Government’s approach to negotiations with the EU and then let them get on and deal with them.

EU: Future Relationship

Baroness McIntosh of Pickering Excerpts

Thursday 27th February 2020 Lords Chamber

[Lord True]

Yes, I very much agree with the noble Lord’s analysis but I think that the House, when it has a Minister for a brief time, does not want a philosophical discussion. But I take his side in the discussion that he will no doubt have with the noble Lord afterwards, and agree with what he said. Our objective is to have a free trade agreement; that is what we have asked for and what the EU once offered. It is my hope that we will get there and have the other agreements that the Statement refers to as well. Our approach is based on a precedent that the EU has accepted with other nations. We see no reason why it should not be accepted. The EU has not asked for the kind of alignment that the noble Lord referred to in a number of other agreements that it has already accepted.

[Baroness McIntosh of Pickering (Con)]

My Lords, in congratulating my noble friend and welcoming him to his new position, does he recall the Government— or the leave campaign’s position—at the time of the referendum clearly stating that they were seeking frictionless trade with our European partners? Why have we left that position, and is it not explicit in the Statement he has just read out that the Government intend to leave the negotiating table in June? As my noble friend Lord Garel-Jones asked, is it not incumbent that we should return to this House to discuss that position and the impact that leaving on World Trade Organization rules will have on the British economy?

[Lord True]

My Lords, I do not answer for Vote Leave; I was not a member of Vote Leave. I was trying to lead a local authority at the time. Business in this House is a matter for the usual channels. The direct answer to her question is no; the Government intend to procure a successful negotiation and successful outcome, and we hope very much that that view will be shared by our friends and allies in Europe. We will continue the negotiations with a view to a successful free trade agreement and agreement on the other matters covered in the Statement before December.