Spending Review: Intergenerational Fairness and Well-being

Baroness Tyler of Enfield Excerpts

Monday 20th May 2019 Lords Chamber

Asked by

[Baroness Tyler of Enfield]

To ask Her Majesty’s Government what steps they are taking to ensure that issues of (1) inter- generational fairness, and (2) well-being, are properly considered as part of the forthcoming spending review.

[Lord Young of Cookham (Con)]

My Lords, inter- generational fairness and improving living standards are core considerations for the Government’s tax and spending policy. The Government routinely assess the impact of all their policies, in line with the obligations of the Equality Act and their strong commitment to promoting fairness. To fulfil these commitments, the Government will consider carefully the distributional impact of spending decisions made in the forthcoming spending review.

[Baroness Tyler of Enfield (LD)]

I thank the Minister for his Answer. Given that the idea of intergenerational fairness is coming ever more under the spotlight, with real concerns that our current younger generation will be the first to experience worse pay, job security and housing prospects than their parents, what specific steps are the Government taking to collect regular data on the intergenerational impact of tax and benefit policies and spending decisions, and to publish a distributional breakdown of the effects of government budgets and spending reviews by age group to allow for independent scrutiny of their long-term sustainability?

[Lord Young of Cookham]

I commend the noble Baroness and her colleagues on the Select Committee on Intergenerational Fairness and Provision for its report. It has just come out and I read it over the weekend. I like the sentence in paragraph 3:

“Policy based on the expectation that future generations will disproportionately pay for present or past consumption cannot be considered just or sustainable”.


I agree with that. One of the ways of reducing intergenerational unfairness is to take further steps to reduce the deficit, and the report explains exactly why it is unfair for any Government to go on borrowing and borrowing and load on to subsequent generations ever higher debt. I hope that that part of the report will encourage support for the difficult decisions that the Government may have to take on public spending.

On the specific question about publishing a distributional analysis of the impact, I understand that that is quite difficult to do. If, for example, the Government decide to spend more money on high-quality childcare, would that score as an advantage for the child, who is getting the benefit of the childcare, or as a benefit for the parent, who would then be able to go out to work or who would not have to pay for that childcare? There are some real issues about definition before we can go too far down the road of identifying a solution along the lines suggested by the noble Baroness.