Economic Update

Lord Young of Cookham Excerpts

Wednesday 19th October 2022 Lords Chamber

[Lord True (Con)]

If it is £1 less in real terms, that is an interesting definition of a swingeing cut. A medium-term fiscal plan is going to be published shortly. The noble Baroness and I go back a long way and I have great respect for her, but I suggest she waits for that. I believe the noble Baroness still has interests in the lovely California, so she should understand, from her knowledge of the United States, that there are international issues at play.

[Lord Young of Cookham (Con)]

My Lords, does my noble friend recognise that there will be real difficulty finding anything like the necessary savings by cutting public expenditure? There will have to be some increases in tax. Does he recall that, in the 1980s, my noble friend Lord Lawson aligned capital gains tax and income tax, and said there was no justification whatsoever in capital gains tax being less than income tax? Reintroducing that progressive Conservative policy would save some £14 billion. Will he commend that to the Chancellor?

[Lord True (Con)]

My Lords, I am not going to be drawn on anything in relation to what may be in the medium-term fiscal plan, but I am sure that the Chancellor reads your Lordships’ Hansard closely.