IMF Economic Outlook

Lord Naseby Excerpts

Tuesday 31st January 2023 Lords Chamber

[Baroness Penn (Con)]

I made it clear that the number one problem facing the UK is our high level of inflation, and that is why the Government have put it at the heart of our economic plans. We are determined to get inflation down. That is why we remain steadfast in our support for the independent MPC of the Bank of England, why we have made difficult but responsible decisions on tax and spending so that we are not adding fuel to the fire, and why we are tackling high energy prices by holding down energy bills for households and businesses this year and next and investing in long-term energy security. I fully acknowledge the challenges the UK is facing, and that is why we have a plan to deal with them.

[Lord Naseby (Con)]

Does my noble friend recall that the IMF has a little bit of a history of making forecasts where the UK is downgraded one way or another, and, lo and behold, a year later, we discover that we have not been as bad as it suggested? Is it not a fact that we now have before the House probably the most crucial financial services Bill that it has had to handle for a decade or more? My noble friend is taking through that Bill. At its core, there is just one word, which affects almost every clause, to help the City, businesses, trade, et cetera: “growth”, which is absolutely crucial to the future of this country.

[Baroness Penn (Con)]

I completely agree with my noble friend on the importance of the financial services Bill to unleashing further growth in our economy. It is also a really important example of how we will take the opportunity of the freedoms of Brexit to design regulation in a way that works best for the United Kingdom. Growth forecasts are inherently uncertain, but they still play a valuable role for government, economists, industry and others. Their uncertainty is a fact of life, but we should still look carefully at what they say.