European Council

Lord Martin of Springburn Excerpts

Monday 21st June 2010 Lords Chamber

[Lord Strathclyde]

My Lords, on the question of the Budget, the noble Lord is in danger of tilting at windmills. We are not playing any verbal gymnastics that somehow when we say that it will be presented to Parliament first it means that round at the back door we are busily presenting it to the Commission. We are not. Tomorrow there will be a British Budget which will be presented to the British Parliament first. After it has been presented it will be a matter of public record and knowledge. I dare say that the Commission may be interested; it may indeed be very interested in looking at it before it is finally agreed by Parliament. Therefore, I do not think that there is a fundamental difference between the two of us on this issue. Neither, incidentally, is there about what the noble Lord Stoddart of Swindon, said about trade with the rest of the world. It is an important plank of British foreign policy to expand our trade beyond Europe. That is vital to our long-term prosperity and the creation of jobs in this country. We are using all the natural advantages that this country has built up over many decades—centuries even—with countries whose economies are growing extremely quickly. To ignore them would be an enormous mistake. So I hope that I can put a smile on the face of the noble Lord, Lord Stoddart, by saying that I very much agree with what he said.

[Lord Martin of Springburn]

My Lords, the Statement mentioned the banking sector. We all agree that, less than two years ago, young couples with children, first-time buyers, were sometimes offered a mortgage of more than 100 per cent. It is understandable that the banks have to tighten their belts—or, perhaps, to behave themselves—but young couples are now being required to find 25 per cent of their new mortgages. For young couples with children to find £25,000 to £30,000 is very difficult. Can the Prime Minister speak to the banking sector to make the point that if young couples can buy homes, that will help the building industry and relieve tension on community-based housing associations and local authorities?

[Lord Strathclyde]

My Lords, that may not have been quite a matter for the European Council, but the noble Lord, Lord Martin, raises an important point for young people and people starting families who are trying to purchase a house. The background against which we operate is now extremely different from what it was only two or three years ago vis-à-vis the whole question of mortgages and deposits. I assure the noble Lord that the President of the Board of Trade, the Chancellor of the Exchequer and the Prime Minister himself are very involved in trying to ensure that lending is allowed and encouraged to people who can pay it back, not just in the commercial and business sector but in the domestic sector.