Sterling Debate

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Lord Soley

Main Page: Lord Soley (Labour - Life peer)
Tuesday 3rd September 2019

(5 years, 2 months ago)

Lords Chamber
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Earl of Courtown Portrait The Earl of Courtown
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As noble Lords are aware, the whole point of the industrial strategy is to boost productivity and the earning power of people throughout the UK, as well as encouraging investment in the technologies of the future. The centrepiece of our approach is increased public investment in infrastructure and R&D through the national productivity investment fund. We have increased its total size to £37 billion, but the noble Lord makes a good point.

Lord Soley Portrait Lord Soley (Lab)
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Can the Minister confirm that he understands that the current Brexit crisis is having, and will continue to have, a profound effect on investment in this country? This will not end quickly, deal or no deal, because the problem continues. That is what we need to address if we are to take investment seriously in the future.

Earl of Courtown Portrait The Earl of Courtown
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My Lords, the noble Lord makes an important point as we move towards 31 October. We recognise that there has been some exchange rate volatility. This is not unusual as we move to our new relationship with the EU. It is important to remember that the UK’s macroeconomic framework is based on an inflation target, not an exchange rate target. It is for the independent Monetary Policy Committee to set monetary policy to meet that target.