Budget Statement

Lord Risby Excerpts

Friday 12th March 2021 Lords Chamber

[Lord Risby (Con)]

My Lords, a year ago the OBR forecasted a horrendous rate of unemployment of 11.9%. It is now likely to be 6.5%—of course, that is bad enough. But, most fortuitously, our finances were virtually in balance when the pandemic struck, and we should simply remind ourselves that the lack of good budgetary housekeeping before the financial crash played its part in seeing unemployment rise to 8.5%.

We will bounce back quicker than many countries, assisted by high cash levels, but, most importantly, we must drive our trade and export capabilities. Every Member of your Lordships’ House should welcome the enormous efforts to do this and wean ourselves away from such traditional dependence on the British consumer. The 63 signed trade deals offer the prospect of forging trade relationships in faster-growing regions. A huge increase in UK export finance will help to facilitate this and export promotion extends to small and medium-sized businesses too. Surely the Commonwealth offers considerable potential for trade and investment. That really needs focus and attention; many of their leaders will be here for COP 26.

With our gigantic level of borrowing, in due course fiscal restraint will be imperative. That will mean, as announced, targeted tax rises. There are some inklings of higher interest rates emerging already. Thus, without real prudence we could just potentially face renewed financial pressures of severity. However, I hope that greater growth will provide an offset. Meanwhile, the so-called super-deduction will give an enormous incentive to invest for innovation and to modernise our industrial and technological capabilities, which would be very welcome. This Budget, in such enormously difficult circumstances, deserves our support.