Replacement of the Chancellor of the Exchequer

Baroness Smith of Basildon Excerpts

Tuesday 18th October 2022 Lords Chamber

[The Lord Privy Seal (Lord True) (Con)]

My Lords, I think this was originally a Question asked of the Prime Minister. There has not been a Prime Minister in your Lordships’ House since 1963. I am not travelling in hope.

I will venture to make a comment on the matter. It is a central responsibility for any Government to do what is necessary for economic stability and the Prime Minister took the decision to appoint my right honourable friend Mr Jeremy Hunt, who is one of the longest-serving and most experienced parliamentarians and, I think, widely respected on all sides of your Lordships’ House, as her Chancellor. His overriding priority is to restore financial stability in the face of volatile global conditions.

[Baroness Smith of Basildon (Lab)]

My Lords, the Minister gave a much shorter answer than the one given in the House of Commons. I entirely agree with the first paragraph of his full Answer, which may surprise noble Lords. He said that,

“it is a central responsibility of any Government to do what is necessary for economic stability”.

Yet in the last few weeks this Government announced the biggest tax cuts since 1972 and then, within a matter of weeks, the biggest tax increases since 1993—hardly stability. The answer to this fiasco is apparently to have the fourth Chancellor of the Exchequer in under a year, with a threat of—and I quote the Chancellor—“eye-watering” further tax rises and public service cuts. Given that mortgage rates are higher today than they were yesterday, what does the noble Lord say to those who, because of the instability largely created by the Government, now face monthly mortgage increases of hundreds of pounds?

[Lord True (Con)]

My Lords, on the question of mortgages, everyone will be sensible to the position of those seeking to buy—I have a son seeking a mortgage at the moment—in conditions where interest rates are rising, which they are internationally. On the more general question, the Chancellor is clear that the Government will need to take some very difficult decisions on spending and tax to place the public finances on a sustainable footing. Sound public finances are the bedrock on which future economic growth will be built. There is no trade-off here; the mini-Budget moved further and faster than the market expected, but this Government remain committed to growth and supporting families and the most vulnerable in society. We will continue to seek to perform that duty.