Business and the Economy

Debate between Torsten Bell and Dave Doogan

Wednesday 21st May 2025 Commons Chamber

[Torsten Bell]

What the Office for Budget Responsibility has said is that disposable incomes will grow during this Parliament at twice the rate that they grew during the last Parliament. The hon. Gentleman has just given me another excuse to repeat my favourite fact, which is this: forget what anybody is forecasting, because in the real world, wages have risen more in the first 10 months of this Government than in an entire 10 years under the Conservatives.

We are going to stick to our promise not to raise working people’s rates of income tax, national insurance or VAT, and we are maintaining an internationally competitive tax system with the lowest rate of corporation tax in the G7. Nobody on this side of the House is pretending that these were easy decisions, but they were the right ones and the responsible ones, yet each and every decision has been opposed by the Opposition parties. It is no surprise to hear SNP Members joining with the Conservatives, as they do on almost everything these days.

[Dave Doogan]

The Minister is making great play of the way in which his new Government have increased wages across the United Kingdom since the election, but will he concede that 91% of earners and workers in Scotland were already earning more than the living wage level that his Government have recently set?

[Torsten Bell]

I will, and that is why I am celebrating the fact that average wage rises are happening. If the hon. Member does not want to be in favour of wage rises in Scotland, that says everything about today’s SNP.

We are all used to the Liberal Democrats’ fantasy economics, but the Conservatives used to believe in sound public finances. They used to understand that it is only on that basis that the Bank of England can sustainably cut interest rates, as it has done on four occasions since the general election. The shadow Secretary of State, in his very long speech, claimed that these choices were not pro-business choices. I tell him that these are pro-business choices because it is pro-business to deliver functioning public services. Was it pro-business when the Conservatives left shops up and down the country paying a retail tax, forced to employ their own security guards because the Tories took the police off the beat? Was it pro-business when employers everywhere faced a health tax under the Conservatives because the NHS was not functioning and their staff were off sick? As I said earlier, growth is key. Of course, the shadow Secretary of State is such a champion of the British economy that he predicted there would not be any. Back in December, he claimed with glee that Britain would start 2025 in recession—

Mansion House Accord

Debate between Torsten Bell and Dave Doogan

Tuesday 13th May 2025 Commons Chamber

[Torsten Bell]

My hon. Friend asks a great and important question. We will have more to say on this in the months ahead as we come forward with the final report of the pensions investment review and the pension schemes Bill. Some local government pension schemes have a track record of investing locally, but we need to see that at scale, and we need to see it crowding in private investment, including perhaps from private pension funds. That is exactly what our package of reforms, combined with the industry’s work with the accord today, will help us to deliver. He is absolutely right to push us on that, as I am sure he will continue to do in the months ahead given his record in previous roles. We want higher investment levels, not just in some parts but in all parts of the country.

[Dave Doogan (Angus and Perthshire Glens) (SNP)]

Over the past 10 years, the Dow Jones has grown by 133%, the German DAX by 115% and the Nikkei by 87%, while the FTSE 100 has grown by 23%. It is against that backdrop that there is concern about investment in the United Kingdom. As other Members have said, given the fiduciary duty on asset managers, would they not be investing in the UK anyway if they thought that they were going to get the best return for their policyholders? If they were not already doing so, what has changed to ensure that that fiduciary duty is upheld as asset managers are coerced by the Chancellor to invest in markets that they would not otherwise have invested in?

[Torsten Bell]

Clearly, the hon. Member has not even read the accord. It talks about private assets. [Interruption.] No, the accord is about private assets while he mentions public assets. He also adopts the very market fundamentalist view that there is no role for Government at all, which is odd given what I hear him talk about in the Chamber day in, day out. Lastly, he also adopts extreme pessimism about the future of the country. I am much more positive about Britain than he is; that is not surprising, because his job is to pull it apart.