Economy: Public Finances

Debate between Lord Grocott and Lord Newby

Tuesday 24th March 2015 Lords Chamber

[Lord Newby]

I completely agree with the noble Lord.

[Lord Grocott (Lab)]

In the interests of clarity, when the Minister refers to the Budget, is he referring to the George Osborne Budget or the Danny Alexander Budget?

[Lord Newby]

My Lords, I was referring to the Government’s Budget.

Entrepreneurs’ Relief

Debate between Lord Grocott and Lord Newby

Thursday 26th February 2015 Lords Chamber

[Lord Newby]

My Lords, we have had a trade deficit for a very considerable time. One of the reasons we have such a large deficit now is that the amount of net income from UK investments abroad has fallen dramatically, not least because a lot of foreign companies have been investing here. However, the Government have set an ambitious target for increasing exports. By common consent, UKTI is far more focused in what it is doing than it has ever been. We are seeing an increasing number of British companies exporting to an increasing number of countries.

[Lord Grocott (Lab)]

Did I hear the Minister refer to the Government’s “long-term economic plan”? I knew that, in the other place, Conservative Members of Parliament were obliged to say that in all their speeches on every conceivable occasion but I had not realised that the implant was operating in the brains of Liberal Democrats as well. Can he confirm whether that is the case?

[Lord Newby]

My Lords, I am always happy to educate the noble Lord.

Greater Manchester

Debate between Lord Grocott and Lord Newby

Thursday 27th November 2014 Lords Chamber

[Lord Newby]

My Lords, I absolutely agree that clear accountability is vital. That is why the Government and councils have agreed that there will be a democratically elected mayor to oversee the new powers and funding. Indeed, beyond 2016-17 these new powers will be conditional on the elected mayor being in place.

[Lord Grocott (Lab)]

Does the Minister not recall that—rather alarmingly, I thought—at the beginning of this Parliament there seemed to be complete agreement between the leadership of the Conservative Party, the Liberal Democrats and the Labour Party that the people of the big cities in England would relish the prospect of establishing a system of directly elected mayors? Rather unwisely, from their perspective, they put that proposal to 10 cities in Britain in the form of rather expensive referendums, and the people of these great cities—very wisely, in my view—decided that they did not want this expensive innovation, which had not worked nearly so well in London as some people were suggesting. At the very least, can the Minister assure us that the views of the people in these cities will in future be respected, and that should there be any change in the structure of local government in the direction of directly elected mayors it would be put to the people in a referendum?

[Lord Newby]

My Lords, some cities—notably Bristol—have decided to have an elected mayor, and the elected mayor in London, of whatever colour, has proved an effective spokesperson and advocate for London. There are no plans for a referendum for a directly elected mayor for Greater Manchester.

Economy: Inflation

Debate between Lord Grocott and Lord Newby

Tuesday 11th March 2014 Lords Chamber

[Lord Newby]

Indeed, my Lords. Whatever the forward guidance of the Bank of England, it does not detract from its basic purpose, which is to keep inflation at or around 2%. That is the position we are now in and we believe that it will be the position going forward.

[Lord Grocott (Lab)]

My Lords, I hope I will not alarm the Minister too much if I say that I have been listening carefully to what he has been saying and, if I had come from outside, I would find it impossible to answer the question as to whether the Minister was a member of the Liberal Democrat party or the Conservative Party. Bearing that in mind, does he agree that, come the next general election, if people want a Conservative Government, the best thing to do is to vote Conservative; if they want a Labour Government, the best thing to do to vote Labour; and if they are thinking of voting Liberal, that is probably a waste of time?

[Lord Newby]

The noble Lord knows that I speak from the Dispatch Box for the Government. I am sure that he will not be surprised to know that I am extremely proud of this Government’s record on the economy.

Public Sector: Debt

Debate between Lord Grocott and Lord Newby

Thursday 23rd January 2014 Lords Chamber

[Lord Newby]

My Lords, I am sure that the noble Lord is an assiduous reader of publications by the IMF and will have seen that, within recent days, the IMF has upgraded its forecasts for growth to 2.4% next year and 2.2% the next year, which is higher than for France and Germany.

[Lord Grocott (Lab)]

My Lords, does the Minister recall that during the time when the economy was clearly not growing at all but flatlining, the Government repeatedly said that it was due to the eurozone or the weather but nothing to do with the Government? Can the Minister please confirm that it is his view from the Front Bench that, if there is any upturn in the economy at all at the moment, it will be nothing to do with the Government?

[Lord Newby]

It is not a question of whether there is any upturn in the economy; there is a very significant upturn. Government policy ensured that, when we were facing very strenuous headwinds, the economy did better than it would otherwise have done, and it will do better in the upturn now as a result of a whole raft of policies that this Government are pursuing.

Taxation: Income Tax

Debate between Lord Grocott and Lord Newby

Monday 24th June 2013 Lords Chamber

[Lord Grocott]

Can the Minister explain how it was that he was able to give a very positive answer to his noble friend about, as he described it, the benefits to the Exchequer of reducing the top rate of tax, but that when my noble friend Lord Eatwell asked him a very valid question about people who had deferred taking their bonuses from the high-tax period to the lower-tax period, he said that it was impossible to speculate about it? He understands the benefits but he cannot acknowledge the simple statistic that my noble friend put to him.

[Lord Newby]

The absolutely bald point that lay behind the question of the noble Lord, Lord Eatwell, is that when you do this kind of thing at the top end of tax rates, very well-off people take evasive action. That is why it is an ineffective way of raising additional amounts of money. People do not just sit there and pay the tax: they forestall it, postpone it and avoid it. This is why it was a very ineffective way of trying to raise additional funding.