Economic Situation

Lord Tunnicliffe Excerpts

Thursday 13th October 2022 Lords Chamber

[Lord Tunnicliffe (Lab)]

My Lords, it is hard to believe that so much damage has been caused in just 20 days. Rachel Reeves was right to refer to the mini-Budget, with its unfunded tax cuts, excessive borrowing and undermining of financial institutions as a bonfire. The Conservative Party have set it and our economy ablaze, with ordinary working people paying the price. Ultimately, this can be resolved only if the Government accept their role in creating this crisis, put the national interest before their pride and reverse the mini-Budget.

Overnight media reports suggest that the Prime Minister’s most senior advisers now agree with that assessment. When can we expect the Chancellor to complete the U-turn?

[Viscount Younger of Leckie (Con)]

The noble Lord will not expect me to agree with much, or any, of what he says, because it was right that the Government took a very rapid step to support those in the lowest socioeconomic groups, particularly on the energy costs. In terms of the tax reductions, this is part of the plan, in line with the growth plan that will be announced on 31 October, which will kickstart the economy. It is absolutely right that this happens, given that growth has been lagging, having been on average about 2.5% between 1949 and 2007, just before the financial crash. Therefore, it is right that we should look to make some changes. We believe that these are the right changes and that they will benefit all in the long run.