Public and Private Sector Productivity Trends

Lord Bird Excerpts

Thursday 30th October 2025 Lords Chamber

[Lord Livermore (Lab)]

I disagree with the noble Lord. I do not think that there is any tension between economic stability and economic growth. As I say, under the Liz Truss mini-Budget we saw the damage that grotesque economic instability did to business confidence and business investment in this country. Maintaining stability—that starts with stability in the public finances—is why our fiscal rules are so important to our growth mission. Stability is the precondition for economic growth in this country, so the two go very much hand in hand.

[Lord Bird (CB)]

My Lords, would the Government agree that, because we have a low-wage economy, we also have a low-investment economy? That is shown in the fact that 80% of all the transactions carried out by our banks, which were formerly owned by us, are in buying and selling private property, not in investing in new businesses and the kind of investment that the Government are now calling for.

[Lord Livermore (Lab)]

I am not quite sure what the question was. I do not think that I agree with noble Lord’s diagnosis.