Lord Evans of Rainow
Main Page: Lord Evans of Rainow (Conservative - Life peer)Department Debates - View all Lord Evans of Rainow's debates with the HM Treasury
(3 weeks, 3 days ago)
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Lord Livermore (Lab)
I am very grateful to my noble friend for his question and for his expertise in this matter. He is right on capital budgets, with which, historically, there have been two problems. The previous Government’s fiscal rules did not prioritise capital investment, so when they had holes in their day-to-day spending plans, they would raid the capital budget to top up them up. That is why we have seen the infrastructure of our country deteriorate over the past 14 years. This Government’s fiscal rules ensure that we do not cannibalise those investment budgets to fund day-to-day spending. That is incredibly important, and it is why we have this £113 billion of extra capital spending to announce in the spending review. My noble friend is also absolutely right about the short-term nature of those capital budgets. Yes, three years is probably too short a planning horizon, which is why we will be announcing five-year capital budgets in the spending review.
Lord Evans of Rainow (Con)
My Lords, I apologise for not being here at the beginning of this important Statement. I was on the Social Mobility Committee, which is related to regional growth. As an MP, I represented the new town of Runcorn, and I was interested to see that the proposed new towns are in Essex, Surrey, Oxfordshire, Cambridgeshire, Buckinghamshire, Bristol, Wiltshire, Warwickshire and North and South Yorkshire. There is no mention of the north-west or north-east of England. That is quite concerning when we look to achieving the growth we want to see in all the regions of our country. Can the Minister update the House on whether there are any proposals for new towns in the West Midlands and the north-west and north-east of England?
Lord Livermore (Lab)
I will have to check with my colleagues in MHCLG on that point, and I am more than happy to write to the noble Lord to answer it. On growth plans for the rest of England—and for Scotland, Wales and Northern Ireland—outside of the city regions that we announced yesterday, there will be much more to say in the spending review next week, but I will write to him on this point.