Economy: Purchasing Managers’ Index

Debate between Lord Howarth of Newport and Lord Bates

Thursday 11th April 2019 Lords Chamber

[Lord Bates]

I am sure that those who forecast a figure of zero for GDP in February and then found out it was 0.2% might be a little cheered up this morning. On other reasons to be cheerful, what about the fact that unemployment, debt and taxes are all falling while exports, growth, GDP and real wages are all rising?

[Lord Howarth of Newport (Lab)]

My Lords, does not the confidence manifested in the purchasing managers’ index, as the Minister has said, continuously over the past 32 months—pretty much the whole period since the referendum—despite the iterations of Project Fear and the lucubrations of the remain establishment, show that the majority of UK manufacturers are undismayed by a post-Brexit future? If their confidence is to be sustained and new investment is to be unleashed, is it not vital that indecisions and uncertainties about Brexit are swiftly brought to an end by our actually leaving the EU and not allowed to persist for up to another six months, or possibly even longer?

Brexit: Economic Forecasts

Debate between Lord Howarth of Newport and Lord Bates

Wednesday 24th October 2018 Lords Chamber

[Lord Bates]

My noble friend speaks with great knowledge and expertise in these areas. Of course, one of his points is the one I made right at the beginning: the fastest-growing economies will be outside the European Union. Last year, our exports to India rose by 31% and to China by 15%. Those are significant sums. Not just the UK but the EU needs to wake up to the competition around the world, and to ensure that we have markets that can compete in that new environment.

[Lord Howarth of Newport (Lab)]

My Lords, what are the Government’s economic forecasts for the next 10 years worth when their forecast of catastrophe in the 12 months following the referendum was so abjectly wrong?

[Lord Bates]

The noble Lord will remember the catastrophe that happened in 2008. I do not necessarily want to remind him of that. Growth has continued in every quarter since the referendum. We expect that to continue and that is what we are working for. We are also working for a deal—that is what the Prime Minister is working for tirelessly. She deserves our full support.

Economy: Productivity

Debate between Lord Howarth of Newport and Lord Bates

Thursday 28th June 2018 Lords Chamber

[Lord Bates]

There are incentives for R&D spend. We know that things such as infrastructure and capital investment—we have had a patient capital review—contribute to improvements in productivity. We know that education and skills are a key part, and that is why we have T-levels and the apprenticeship levy. We also know that investment is very important, and that is why the capital breaks we have for R&D, particularly in small firms, are very important. But this is a whole-economy effort in which small and medium-sized enterprises, as well as the large companies, need to play their part.

[Lord Howarth of Newport (Lab)]

Will the Minister respond to one of the questions asked by my noble friend Lord Haskel about share buybacks and, indeed, excessive dividend payments? There is a management culture that all too often seems more interested in the extraction of wealth than the creation of wealth.

[Lord Bates]

If that criticism were true, we would not see that the UK is regarded as the number one location for foreign direct investment and we would not see companies coming here in the numbers that they are. We have a great strength in our economy. We have an historic weakness in productivity and we need to look at all the possible contributions to that and address them; that is what this review is all about.

Public Sector Pay Cap

Debate between Lord Howarth of Newport and Lord Bates

Wednesday 5th July 2017 Lords Chamber

[Lord Bates]

I was just about to say that was above my pay grade and then I realised that was probably not the right term to use. The Chancellor set out the policy on public pay in the Budget. That continues to be the case. We listen very carefully to what the review bodies say and watch very carefully to see the impact that has on recruitment. That policy will continue.

[Lord Howarth of Newport (Lab)]

My Lords, further to the excellent question by the noble Lord, Lord Cormack, when you have the Health Secretary, the Environment Secretary and even the Foreign Secretary publicly campaigning against the policy of the Chancellor of the Exchequer, what does that do for the authority and standing of the Government? Is not the Cabinet a rabble?

[Lord Bates]

Certainly, the Cabinet is not as the noble Lord describes. The reality of all these things is that we do not have a Cabinet of clones; we have a Cabinet of individuals—a lot of individuals who care very passionately about the areas for which they are responsible. I declare an interest as a Minister for International Development, about which I care very passionately and on which I might occasionally be prepared to make my case. But the fact of the matter is that the collective government policy is as set out by the Chancellor in the Budget. We listen carefully to the independent pay review bodies.