Business Confidence

Lord Fox Excerpts

Tuesday 28th January 2020 Lords Chamber

[Lord Duncan of Springbank]

The first thing to note is that the report is positive, and the CBI has not always been the most positive in its analysis of the Government’s activities. Secondly, we have anticipated a number of the issues which the report has flagged up, not least productivity and investment in SMEs. In the calendar year ahead, we shall look at how to move these areas from where they are now to help them grow. I am tempted to cite Chauncey Gardiner on the notion that as long as the roots are still in the soil then all will be well in the garden. That might be a little optimistic because the year ahead will be a challenge, but the same thing is true: we have opportunities ahead which will do us well.

[Lord Fox (LD)]

My Lords, the Minister is right to be slightly more cautious than the questioner on the status of this data, because I am sure that he knows that the Society of Motor Manufacturers and Traders, for example, will publish its monthly statistics on Thursday. Undoubtedly, although we do not know what the numbers will be, they will be massively less than the record numbers for what they were able to build in this country some time earlier. Given what the Chancellor has said about regulatory alignment, how much confidence or optimism can the automotive industry have that its supply chains will still be operating this time next year?

[Lord Duncan of Springbank]

I do have confidence. I am wearing my summer suit right now, but I also have an umbrella. Looking to the year ahead, it is important to recognise that some serious negotiations are to be done to ensure that the supply chains work. That will be part of the approach in the ongoing negotiations which will benefit both sides.