King’s Speech

Lord Bridges of Headley Excerpts

Monday 13th November 2023 Lords Chamber

[Lord Bridges of Headley (Con)]

My Lords, I very much look forward to the speeches by my noble friend Lord Gascoigne and the right reverend Prelate the Bishop of Norwich. I see that there is a pub called the “Lord Gascoigne”, which puts him in a unique and elite clique alongside the noble Lord, Lord Cromwell, and the noble Duke, the Duke of Wellington—sadly, there is no “Lord Bridges” yet, although I live in hope.

Here is a striking sentence from His Majesty’s gracious Speech:

“My Government view with grave concern the economic situation of the United Kingdom about which a full disclosure must be made to the nation”.


This sentence was not what we heard last Tuesday. It was in the gracious Speech of the last King, George VI, in 1951, but it is as relevant today as then. Given the talk about the Chancellor having headroom for tax cuts in the Autumn Statement and the fact that we might hear some good news at last on inflation this week, your Lordships might well ask why I am being Eeyore when I should be being Tigger. I could point to last week’s spluttering, flatlining GDP figures but, worrying though they are, that misses a much bigger picture.

Let us start with our debt. Earlier this year the OBR said:

“The 2020s are turning out to be a very risky era for the public finances … This rapid succession of shocks has … pushed government borrowing to its highest level since the mid-1940s, the stock of government debt to its highest level since the early 1960s, and the cost of servicing that debt to its highest since the late 1980s … UK … borrowing costs have risen more than in any other G7 economy … The rise in global interest rates has fed through to the UK’s debt servicing costs more than twice as fast as in the past or elsewhere”.


Debt is just one of the challenges we face. We have heard of others: demographics—our ageing population; decarbonisation, as the noble Lord, Lord Stern, mentioned; digitalisation, the need to retrain and skill our workforce; and defence, the need to strengthen our Armed Forces. These are the five Ds—the challenges that loom over all our debates. Let us consider what these challenges will mean for the public finances, not off in some distant date in 2050 or suchlike but in the life of the next Parliament. According to the OBR, the little list of greening our power, buildings and industry, increasing defence spending and higher health-related welfare benefits will alone cost about £40 billion a year of extra spending. That is before we get on to other topics, such as debt interest.

Some say that this spending is inevitable. I have heard it said many times over the last few months that our government will grow and that we are back in an era of big government. This is therefore an acceptance that we will have to pay more taxes, so that the Government can do more. That is a respectable argument, and many in this House will make it. I profoundly disagree with it because it suffers from a fatal flaw; the only way we will be able to overcome these challenges is to become more productive and more attractive for investment so that we grow more. If we do not grow, we will not be able to pay for the public services we all want. The road to growth is not paved by bigger government and higher taxes, yet I very much fear that this is the path we are on.

Too many people, particularly after years of QE, think we inhabit a forest of magic money trees in which the Government have the ability to spend their way out of any national disaster and to pick up the Bill for any personal misfortune. Too many people believe that government can, should and must regulate and legislate to stamp out or at least mitigate risk and bail out business failures. I strongly believe that, if we want to encourage the enterprise and innovation that power growth, this approach and mindset—I stress that word—are unsustainable. While a tax cut may cheer some this week and while there are some measures in this gracious Speech that I might be able to support, I fear that we are in danger of lulling ourselves into a false sense of security and that we are not rising to the challenges.

We need a coherent strategy to confront those five Ds, and it must ask and answer a very basic question: what do we want the state to do? What is the state’s responsibility and where does the responsibility for the individual lie? For that debate to happen, we need full disclosure about the state we are in and the precarious nature of our finances. Without that brutal honesty, we will stumble and stagnate. In the words of His late Majesty George VI, this overshadows “all other domestic matters”.