Autumn Budget 2025

Lord Hannett of Everton Excerpts

Thursday 4th December 2025 Lords Chamber

[Lord Hannett of Everton (Lab)]

My Lords, I am pleased to participate in this important debate on the Budget. When I was thinking about my contribution, I was determined not to descend into tribal politics, because four minutes would not give me the opportunity to do it justice, so I will resist the temptation. I have to say, though, having listened to the contribution of the noble Lord, Lord Dobbs, that he nearly drew me in. His view of the Labour Party, which he is entitled to have, was one that I did not recognise, and you would say, “Why would he?” I was looking for a little bit of humility in his contribution. Alas, it was not to be the case.

I understand there being many contributions about the economy, fiscal responsibility and sound judgment. Many come from different directions, and that tells us of the complexity of the challenges that Chancellors have to face. I want to place on record my congratulations to Rachel Reeves, my noble friend Lord Livermore and the rest of the Treasury because, in a short time in office, they have applied something that is very important in addition to the finances, and that is values: policies that matter on the ground. We can use terms in this Chamber, as we would and should, but in the world outside, it is policies that matter. I am confident that—be it a short time in office—if Labour is successful in achieving a lengthy period of governance, we will see the difference and the contrast; but we have to earn it, and I believe we will.

I look at the detail in the speech made by the Chancellor and at the policies, and I realise the challenge we face. At the moment, the view of politicians from outside is not exactly one of respect. We all have a responsibility to connect with the public. A way of doing that is to understand what matters to them. We do not all start from the same background, do we? Some people have come from a privileged position of good education; some have even had better economic starts, but we should not forget those who contribute substantially to our well-being but who also require extra help. That is the fundamental DNA of the Labour Party. Look at the history of the Labour Party. Yes, you may pick out certain times and certain challenges, but look at some of policy.

I served for 11 years on the Low Pay Commission. The figure that has been increased for young people is a message to them that they matter, and that work can pay. In those 11 years, we reached a unanimous agreement every year. The figure that Rachel Reeves has used for young people did not come out of the ether; it came out of research on the detail of the economy with economists, trade unions and businesses. It has survived since 1999, and it is going well today.

I also then look at poverty-related issues such as challenging child poverty. There can be no more important issue than this, because people who are born into poverty have a legacy of deprivation going forward. We debate in this Chamber many times why the ills of society are such. Perhaps one factor is that people do not have the good start in life that they require. This is why, to me, economic competence and values have to go to the root of what politicians do. There will be variations on the theme, but we should not lose sight of the fact that if politics matter, they are as much about the people at the bottom as about those at the top.