UK: International Competitiveness

Lord Hamilton of Epsom Excerpts

Wednesday 23rd June 2010 Lords Chamber

[Baroness Wilcox]

I am afraid that noble Lords have heard this answer before and will hear it again. We are where we are. Given the fiscal plans that this Government inherited, I am afraid that we would put the recovery at risk if we did it any other way. Threatening higher tax and interest rates would affect not just the Government but families and businesses. The noble Lord could have answered that question himself a few months ago.

[Lord Hamilton of Epsom]

Does my noble friend accept that one of the reasons why productivity has fallen in this country is the enormous amounts of taxpayers’ money that have been thrown at public services which have not been reformed? Following the Budget, the opposite is now true. As funds for government departments fall, productivity will go up and may even match the rises in productivity in the private sector.

[Baroness Wilcox]

I thank my noble friend for that, and I can only agree with him.