Incomes and Prices
Debate between Viscount Younger of Leckie and Lord Howell of Guildford
Viscount Younger of Leckie (Con)
I most certainly will do that. It is certainly a fact, but there is a lot more that we are doing, of course, to help people pay their bills. There are many who are really struggling at the moment, so this is not the only answer. We have to create that balance between recognising the vital importance of public sector workers, while delivering value for the taxpayer and being careful not to drive prices even higher in the future by contributing to the wage-price spiral.
Lord Howell of Guildford (Con)
Has my noble friend noticed that global wholesale gas prices are now falling and that global oil prices, despite the efforts of OPEC in the other direction, are also falling? This implies that the main source of our inflation problem, energy prices, will ease considerably—with luck—before the first half of next year. Would it not be wise to delay as long as possible, if we can do so without breaking any established laws and customs, the fixing of the estimates for full inflation for next year while ensuring that those demanding that wages are not cut too much in real terms also wait to see what actually happens?
Public Spending: Borrowing Increase
Debate between Viscount Younger of Leckie and Lord Howell of Guildford
Viscount Younger of Leckie (Con)
I am not going to be drawn into responding to that. What I will say is that we are set on announcing the medium-term fiscal plan—as I have mentioned at least three times—on 31 October, and that of course is linked to the OBR giving its view on the Government’s plans. We are confident that we will be able to roll out in detail our growth plan, what it means and how it will get this country moving.
Lord Howell of Guildford (Con)
My Lords, the pandemic involved a huge increase in public spending and borrowing, which I thought had the general support of all parties. Stopping the bleeding over energy prices was the same, and yet another colossal amount. As everyone knows, combatting climate change is going to require still more. These are huge increases in borrowing and surely now we are having to pay the price. If in America the Fed is putting up its interest rates, we will have to do the same. Can the Minister clarify where the Opposition stand on that, because they sound as if they are going back on this whole sensible analysis?
Viscount Younger of Leckie (Con)
I thank my noble friend. I think the Opposition probably do understand that. The Government launched the independent review into the delivery of the net-zero climate commitments with a focus on ensuring that the UK’s fight against climate change remains undiminished. I have shied away from saying it so far because everybody has been saying it but many of the issues that we are having to deal with stem from the tail end—the sting—of the pandemic and from the war in Ukraine. We all know that.
UK-US Trade Deal Negotiating Objectives
Debate between Viscount Younger of Leckie and Lord Howell of Guildford
Viscount Younger of Leckie
I am much more optimistic than the noble Lord. I can perhaps reassure him that we are aware that some reforms are required for the WTO. We very much want to play our part in ensuring that those reforms are carried through.
The second thing to say is that the US deal is the first of several. The noble Lord will know that we have Japan, New Zealand and Australia to come, and of course the EU. There was a chance in the past few days, and yesterday, to question my noble friend Lord True on the EU deal. I do not want to be drawn in on that except to say that, in the US deal, we start from a very good platform because we are one nation negotiating with one other nation; with the EU, it is of course a bit more complicated, in that we are dealing with 27 countries —and the House will understand when I say that there are a few more complications than that. However, we are very confident that we will be able to negotiate both a US deal and an EU deal in parallel. I hope that helps to answer the noble Lord’s questions, but I doubt it.
Lord Howell of Guildford (Con)
My Lords, the Department for International Trade has obviously done an enormous amount of work on this issue, a large amount of it under my right honourable friend Dr Liam Fox, the former Secretary of State who was doing a very good job on all fronts. It is absolutely right, as your Lordships have observed, that the USA is far the largest single country market force at 20%; about half is services and is growing, and the other half is goods, which is shrinking. But most consumer market growth in the next 10 years will not be in America, or indeed in Europe—it will be in Asia, by far. That is the huge new area where we have to succeed. Asia will shortly make up half of the world’s GDP, if not more. That happens to be where we are weakest, so I urge my noble friend to remind his colleagues in the Department for International Trade that we should think carefully about our priorities and not spend too much time trying to perfect our excellent trade with America—that may now get more difficult, not easier—when we should really be concentrating all our resources on finding our way into the giant Asian markets, which will really determine our future and prosperity.
Viscount Younger of Leckie
I agree with my noble friend that the Asian market is very important. I mentioned Japan earlier, which he will know is very much on the agenda. There is, of course, more to do in Asia, but I go back to the statistic that I gave earlier: we intend, over the next three years, to cover 80% of our trade deals. That, I would argue, is a very good start. It is right that we are starting not just with the EU but also with the US. It is on the basis that the US, clearly, is on our side: it wants to secure a deal as well.