GDP per Capita

Lord Hamilton of Epsom Excerpts

Tuesday 11th June 2019 Lords Chamber

[Lord Young of Cookham]

I challenge what the noble Baroness said about the economy weakening. The economy has grown continuously for nine successive years. Employment is at a record level. Real wages are rising. The public finances are now under control. We are in the middle of the pack for future growth in the IMF forecast. Some of the issues she raised are matters for the spending review—both the amount of grant for local government and the shared prosperity fund—but she is unduly pessimistic in painting that scenario.

[Lord Hamilton of Epsom (Con)]

My Lords, is not the example of Germany, given by the noble Lord, Lord Blunkett, very relevant? Despite the billions spent by the West Germans on East Germany, it is largely emptied of business and people.

[Lord Young of Cookham]

I think the comparison was not direct, as I am sure the noble Lord, Lord Blunkett, will recognise. The disparity between the west and the east of Germany was far greater economically and in almost every other consideration, including socially, than the gap between England and the rest of the United Kingdom. While I understand where the noble Lord is coming from, the parallel he gave is not one that should be followed too closely.