National Debt: It’s Time for Tough Decisions (Economic Affairs Committee Report)

Lord Horam Excerpts

Friday 25th April 2025 Lords Chamber

[Lord Horam (Con)]

My Lords, this is an extremely worthwhile report. Its worth is reflected in the fact that, despite the turbulence of the last six months, it is as relevant today as it was when it came out in September last year. As the report says, it invokes the need to make some hard choices. The Government said in their response that they had indeed made some hard choices—and they have made some, but unfortunately not enough of the hard choices that will be needed if we to overcome this real difficulty.

The noble Lord, Lord Liddle, made the point, in his trenchant style, about the hard choices of Greece, for example. Greece was in a terrible situation about five years ago. Now, it is growing fast and reducing its debt. Portugal is the same. The noble Lord, Lord Liddle, said that the reason for that was the help from the European Central Bank. I do not know what role it played in the recovery of Greece, but I know that Greece made hard choices on public expenditure of the kind that the committee is posing in this report that the Government should make. Hard choices are necessary.

Not all the choices are hard. For example, I was reading an article in the Times by Simon French, the managing director and chief economist of Panmure Liberum. He said:

“It is hard to overstate quite how mad the UK’s energy policy looks to outsiders”.


Energy policy is a fundamental issue of economic policy. The Industrial Revolution took place in this country because of our energy resources and the way we exploited them. This is an absolutely key element. Simon French went on to say that

“many investors struggle to square the government’s primary mission for economic growth with a penal 78 per cent tax rate on energy profits and a commitment to no new licences for the UK’s North Sea continental shelf … It is an impediment to economic growth … hiding in plain sight”.

The committee makes the point that there is a choice here, which the Government have to make. The article also said:

“Investors fully recognise the global imperative to decarbonise but in reducing domestic supply of oil and gas the UK is, in fact, adding to carbon in its energy mix. It does this by increasing its reliance on dirtier foreign imports”.


There are choices—common-sense choices—which are not that difficult to make if we are to deal with this problem. Look at other countries which are facing the same sorts of situations: debt is high in America, China and India. However, all three of those countries are steaming ahead on economic growth because they have sensible energy policies. That is just one aspect. In four minutes, I cannot say much more, but I think the best thing the committee and the chairman, who has produced this excellent report, can do, is to repeat it in four years and see where we are.