Government Debt

Debate between Lord Hamilton of Epsom and Lord Bates

Tuesday 9th April 2019 Lords Chamber

[Lord Bates]

If the noble Lord is arguing that we should have gone further and faster in reducing the debt, he is somewhat at odds with his leader down the other end of the Corridor, who has come up with a plan to spend another £1 trillion. We are taking a balanced approach, protecting essential public services and delivering tax cuts while investing in infrastructure, and that is how we will go forward.

[Lord Hamilton of Epsom (Con)]

My Lords, at the moment, the Government are spending about 39% of GDP on public services. In my noble friend’s opinion, is that too much, too little or about right, and does he see merit in repaying debt?

[Lord Bates]

Certainly, the Government see merit in repaying debt; we pay interest rates of about £50 billion a year on debt, so there is a good rationale for trying to do that. However, we need to balance our approach. Primarily, we seek to stop that debt level increasing by bringing it down as a percentage of GDP from around 85% to 73% at the end of the forecast period, but we need to go further on that.

Brexit: Economic Impact

Debate between Lord Hamilton of Epsom and Lord Bates

Wednesday 20th February 2019 Lords Chamber

[Lord Bates]

I agree with that analysis. That is why I said 0.6% was modelled on the White Paper, but then we introduced a sensitivity analysis which showed that the hit might be 2.1%. That information—which we were told was deficient and incomplete in order to make decisions—is there.

[Lord Hamilton of Epsom (Con)]

My Lords, as there are two parties to this deal—the EU and the United Kingdom—would it not be valuable to carry out an impact assessment of what will happen to the EU under no deal, particularly as it sells one and a half times more to us than we do to it and, in the event of no deal, it would not get £39 billion?

[Lord Bates]

I was with my noble friend right up until the last element of what he said. He and I have gone over that territory before but, on the first part, no deal is not only not in the UK’s interests, it is not in Europe’s interests. We want to see Europe prosper because it is a major market for us. The best thing to do is to resolve this difference over the backstop, which is unacceptable in the other place, get behind a deal, and get on with Brexit.

Brexit: Outstanding Commitments

Debate between Lord Hamilton of Epsom and Lord Bates

Wednesday 6th February 2019 Lords Chamber

[Lord Bates]

I am very happy to agree with that sentiment. We want a deep, ongoing relationship with our European friends; part of that means honouring what we signed up to. This was what we signed up to at the Council meeting back in November, and we should support it.

[Lord Hamilton of Epsom (Con)]

My Lords, was not the £39 billion made up of our annual contributions for the two years of the implementation stage? I cannot see how we would owe that if we were to leave with no deal. Did a committee of your Lordships’ House not say that we would not owe the EU anything with no deal?

Brexit: Customs Procedures

Debate between Lord Hamilton of Epsom and Lord Bates

Monday 15th January 2018 Lords Chamber

[Lord Bates]

That is a really good idea. There are some opportunities coming here. The noble Viscount will be aware that HMRC is moving to a making tax digital platform for VAT declarations. That type of joining up of the customs data with VAT will be something that could augment further trade with the rest of the world.

[Lord Hamilton of Epsom (Con)]

Will my noble friend confirm that the United States is a major export customer for this country with which we have no free-trade deal? There seems to be no hold-up in sending goods to America.

[Lord Bates]

Some 18% of our goods go to the United States. It is a very important market for us. Also, we are seeing significant investment from the United States into the UK. In the technology sector, Apple is coming here. Bloomberg is expanding its operations here, as is Facebook. There is a great opportunity for Britain to have a lead in technology and trade.