Growing the UK Economy

Baroness Stowell of Beeston Excerpts

Monday 3rd February 2025 Lords Chamber

[Lord Livermore (Lab)]

Although I disagree with my noble friend on some specifics that he raises, I think we all agree that it is right that we have a goal to raise living standards in every part of the UK by the end of this Parliament, which is why that is central to our Plan for Change targets when it comes to the economy. We have already provided stability to the economy, enabling the Bank of England to make two interest rate cuts; we have protected working people by keeping our promises on tax at the Budget; we have frozen fuel duty; and we have increased the minimum wage, and we are now seeing wages starting to rise. All those things are beneficial in terms of living standards. My noble friend will appreciate, though, that we have to grow the economy before we can start distributing the benefits of that growth.

[Baroness Stowell of Beeston (Con)]

My Lords, to return to the Minister’s remarks about innovation, how would he justify to the innovators and risk-takers who are starting up businesses and trying to scale up in the UK the day-one employment rights in the Employment Rights Bill? I refer him to another Select Committee report, published today, about scaling up AI in creative tech businesses and the barriers that they face. These, too, are priority areas for growth that the Government have highlighted.

[Lord Livermore (Lab)]

I am grateful to the noble Baroness for her question. I know that this is an area in which she is particularly expert—far more expert, I am sure, than I am. I will say a couple of things. First, I completely agree: it is often said to me that the UK is a very good place to start a business and a less good place to scale up a business. I think that has to be central to our thinking when it comes to economic growth and growing those small businesses. When it comes to entrepreneurs and those who we want to take greater risks in our economy, one of the most important things we can do is ensure economic stability, because the more stable the economy is, the more willing people are to take the risks that we want them to take. She asks about employment rights. All the evidence now suggests that, the more secure a workforce is, the more productive it is. We were talking about productivity before and, on secure rights for workers, workers who are more economically secure are going to be more productive workers in the economy.