Inequalities — House of Lords, 2019-06-13
Topic: Macroeconomics
Roger John Liddle (Labour, Centre-left): My Lords, I congratulate my noble friend Lady Bryan on her speech. Although we come from different Labour traditions, on this issue we share common aims and values. I also thank my noble friend Lord Dubs for introducing this debate. He is one of my heroes: not only do I aspire to his longevity, I aspire to remain as committed to politics and helping to improve people’s lives as he continues to do in the second half of his 80s. I also congratulate the Cross-Bench contributions of the noble Lord, Lord Ravensdale, in an excellent maiden speech, and the noble Earl, Lord Listowel, who always makes a moving contribution in this House We have had a lot of analysis and a lot of numbers. I should like to focus on some things that ought to be done, rather like my noble friend Lord Adonis, who talked about public services. First, the Government must reverse the cuts to benefits for children and disability payments which have occurred under universal credit. There is nothing wrong in principle with the idea of universal credit, but the fact that for working-age people benefits have been held below inflation, while my benefits as a pensioner have continued to rise above inflation, is a scandal and must be reversed. This should be a top priority for any Government of any colour. Secondly, we must look at our system of taxation of property and wealth. Council tax is unfair. It does not tax property in an egalitarian way and we need to look at the taxation of wealth as a whole because of the enormous inflation in wealth that has occurred, partly as a result of quantitative easing. We must have new systems of tax to pay for the improvements in public services of which my noble friend Lord Adonis spoke. Thirdly, we must tackle the scandal of executive remuneration. There is a lot of talk about this. Business says that it wants to act, but we need radical corporate governance reform to deal with this problem, about which there has been far too much talk and far too little action Most importantly, we must recognise that the noble Lord, Lord Kerslake, who is not in his place today, chaired the UK2070 Commission, which has done an excellent analysis of the flaws in the economic model in the United Kingdom and what is contributing to poverty and inequality in our country. The driving force of this, in my view, is the problem of regional inequality and the disparities that it causes. In the past 10 years, the rate of growth in London has been 3%; the rate of growth in the north has been 1%. If this continues, we will have a very divided country indeed. It results in impossible pressures. Young people who are on lower wages than they were in London are forced to pay very high rents to live and do their jobs here. Their incomes after housing costs present a real problem. Obviously there must be radical reform of the housing market In terms of action on the north and the regions, part of the answer is infrastructure investment, which has been mentioned, and part is trying to move out of London some of the sources of energy in our economy in culture, research, enterprise and innovation. A crucial point is that made by my noble friend Lord Adonis about education. Now, 60% of children in London have a chance of going to university. In my county, it is 30% to 35%. We must establish a political consensus that those problems need tackling, and I fear that I do not see that happening in the Conservative Party at the moment.