Spending Review 2020

Lord Bilimoria Excerpts

Thursday 3rd December 2020 Grand Committee

[Lord Bilimoria (CB) [V]]

My Lords, there is a forecasted drop in GDP of more than 11% this year, the worst in 300 years; the fear of unemployment possibly going up to 7.5%—almost 3 million people—by Q2 2025; debt to GDP more than 100%—the last time that happened was in 1963; and a deficit of £400 billion. The amazing support that the Government have given during the Covid pandemic of almost £300 billion—and counting—and many measures in this spending review are so welcome. The new national infrastructure bank is fantastic and upgrading infrastructure is great, but does the Minister agree that broadband should be at 100% coverage of the country, not 85%?

On the plan for jobs, we need to avoid long-term unemployment. The scarring would be horrible. Young people, in particular, have suffered so much; we cannot have youth unemployment. We urgently need the energy White Paper. Can the Minister confirm that it will come soon? There must be no talk of tax rises, because what would be worst for the recovery—for businesses to bounce back after this—is stifling that recovery by increasing taxes. We need to create growth, which means keeping taxes low. It is that growth and the creation of jobs that will pay the tax that will pay for the public services. That is the best solution.

The approval of the Pfizer-BioNTech vaccine is a major breakthrough against Covid-19. After the loss of so many lives and livelihoods, it now really feels as though there is light at the end of the tunnel. Does the Minister agree that three things are now needed to shore up confidence? The first is the continued, urgent rollout of rapid, mass, affordable antigen lateral flow testing throughout the country, available in schools, workplaces, colleges and universities and at airports and factories—everywhere. That regular testing is a huge part of the solution.

Secondly, firms need clarity about the level of support through to March and beyond. Thirdly, we need transparent trigger points for exiting higher tiers and a robust, evidence-based approach to ongoing restrictions.

[The Deputy Chairman of Committees (Baroness Barker) (LD)]

Lord Loomba, please stand by to speak after the next speaker. I call the noble Baroness, Lady Sheehan.