National Minimum Wage
Debate between Viscount Younger of Leckie and Lord Kinnock
Viscount Younger of Leckie
I cannot comment on whether there should be another inquiry but it is fair to say that this strays into the territory of poverty. Perhaps I may reassure the House that this Government are very much focusing on poverty, which is very complex. There are all kinds of root causes for poverty, including household food security, and we are looking at this very carefully as well in the light of the national minimum wage.
Lord Kinnock (Lab)
Does the Minister share my wry satisfaction at the fact that when I first proposed the national minimum wage as policy, I was roundly condemned by Conservatives yet now we have a Chancellor of the Exchequer who says that he aspires to increase it? Should not the Government take up the suggestion of the right reverend Prelate and begin to replace the national minimum wage with the living wage, which would mean a shift from £6.50 an hour to £7.45 an hour, and by that means begin to compensate the national minimum wage earners—who in real terms have lost £1,000 a year since 2000—and reduce the 9.4 million households which now exist at below the minimum income standard while, in the bargain, saving the Exchequer £5.7 billion a year because of the reduction in the need for the subsidies on which very low wage earners have come to depend?
Viscount Younger of Leckie
The noble Lord will know that the Government follow the guidance from the Low Pay Commission and have accepted all its recommendations. The new rate from October, which is a 3% rise in the adult rate, will mean that around 1.25 million low-paid workers will enjoy the biggest cash increase in their pay packets since 2008. As I have said, we encourage all employers to pay above the national minimum wage and to pay the living wage.
Economy: Business Investment
Debate between Viscount Younger of Leckie and Lord Kinnock
Viscount Younger of Leckie
My Lords, the economy is growing, and unemployment and inflation are down. This is supported by an improving outlook in our export markets. We are cutting corporation tax to 21% this April, and to 20% in April 2015. At Budget, the Chancellor announced measures to reduce business energy costs and doubled our export finance scheme to £3 billion. These and other reforms are improving the business environment and providing long-term certainty for businesses, investors and employees.
Lord Kinnock (Lab)
Will the Minister tell the House the full story shown by the Office for National Statistics, which is that business investment since 2010 has been flat, faltering or falling, and that we are in a state in which it has shrunk, by comparison with 2010, by about 7%? Whatever happened to the march of the makers?
Viscount Younger of Leckie
Business investment is a very narrow measure, which excludes investment by firms in skills, innovation and organisational change. When estimates of these types of investment are included, the UK’s performance is much improved, as we tend to invest heavily in these types of knowledge asset. It is also important to recognise that quality of investment is as important as quantity.
Supermarkets: Pricing
Debate between Viscount Younger of Leckie and Lord Kinnock
Viscount Younger of Leckie
My noble friend makes a good point, and it is one of the issues that we are discussing earnestly with the supermarkets. However I should point out that “buy one, get one free” deals represent a small proportion of supermarket promotions, the majority of which are temporary price reductions. We are also in discussions over the Waste and Resources Action Programme, which works with retailers to encourage alternative promotions for perishable goods.
Lord Kinnock (Lab)
My Lords, is not the sense of crisis heightened by the fact that the Prime Minister appears not to know the price of a loaf of bread? Could the Minister show rather more urgency in trying to insist that retailers, including supermarkets, have a uniformity of descriptions of the pound and kilogram cost of items on their shelves so that people can make a cogent choice in deciding what the best value for money is?
Viscount Younger of Leckie
The noble Lord raises an important point. He may be aware that there is legislation in place, in the form of the Price Marking Order 2004, which requires the selling price and, where appropriate, the unit price—65p per 100 grams, for example—to be clearly displayed on products being offered by traders to consumers. We take this seriously and we are working hard to improve communication about and the display of these items.