Economy: Productivity

Lord Vinson Excerpts

Tuesday 12th April 2016 Lords Chamber

[Lord Bridges of Headley]

My Lords, I apologise if I sound glib, but I am certainly not complacent. I quite agree that there is a lot of work to be done. That is why, for example, on the point about construction skills, we are launching the apprenticeship levy to fund more high-quality apprenticeships. On top of that, we are protecting the core schools budget; we have removed the HE student numbers cap; and we have cut corporation tax to 18%. I could go on and on—there are lots of things. This is not glib; this is work in progress, but we are not complacent.

[Lord Vinson (Con)]

My Lords, the Minister will be aware that the latest figures for High Speed 2 put the overall cost at £80 billion. It will be 16 years before it begins to run at all, and then it will run at a loss. Meanwhile, in this country 90% of our economic activity is conducted by road. Would not it be more sensible—taking up the point made by the noble Lord, Lord Harrison—to divert these enormous sums into something that would give more immediate productivity gains, have a less ambitious target and put that money into millions of small, economically beneficial and productivity beneficial developments that could be done through rail and road improvements?

[Lord Bridges of Headley]

I hear what the noble Lord says about HS2, but I would not say that these were mutually exclusive. As I have said, the UK will invest more than £100 billion in infrastructure over this Parliament. My noble friend wishes to see more investment in roads. The £15 billion of investment in the roads investment strategy will include resurfacing more than 80% of the strategic road network and delivering more than 1,300 miles of additional lanes. As I say, these are not mutually exclusive.