Queen’s Speech — House of Lords, 2021-05-12
Topic: Macroeconomics
Simon Haskel (Labour, Centre-left): My Lords, I too welcome the maiden speeches and say farewell to the right reverend Prelate In thanking Her Majesty for the gracious Speech, I have to say that it consists of an unco-ordinated mixture of ideas—some good and some bad, but with no clear, integrated plan to deal with the problems resulting from the pandemic. Nor does it say how change will be delivered; it just gives the impression of government by announcement. Indeed, there are conflicting proposals. For instance, there is a Bill to increase the housing stock while leaving in place financial incentives which we know have the effect of raising house prices, making the new homes less affordable, an effect that entrenches and enlarges the existing inequalities, stimulates a housing bubble and encourages speculation—exactly the wrong sort of growth What is required is a comprehensive strategy to address the challenges set by the pandemic and the causes of inequality such as low productivity, low investment and skill shortages. Yes, there is an industry strategy challenge fund but, as the Public Accounts Committee pointed out, it is too focused on inputs, ticking boxes and distributing funds rather than on outcomes. This can be rectified by reinstating the industrial strategy board to monitor and measure the progress of a strategy and measure what we have achieved year on year; to achieve our long-term objectives, that is what we will have to do. Without it, the Government are marking their own homework yet again The speech offers free ports with special low-tax zones, but experience has shown that all they do is shift jobs and investment around the country, rather than generating high-value new business. We should remember that exports from free ports to the EU and many other markets are restricted, and this kind of activity does little for skills training, raising productivity or increasing our R&D expenditure up to the government target. The share of national income paid out in wages, salaries and benefits has been in steady decline, while the returns on capital investment have been steadily increasing. An industrial strategy should even this out and, together with an employment Bill, that would make the outcome much more equitable An important part of our industrial strategy would seek to develop our own domestic industry but, where this is unfeasible, our strategy should prioritise co-operation with our allies. This means that we must seek equivalence and mutual recognition of standards, particularly in services, technology and manufacturing. This will make it easier for overseas and European firms to invest in UK industry and for UK industry to become integrated in their supply chains A special part of our strategy must be our concern for the young. Job insecurity is a common complaint among young people, a complaint caused by temporary contracts, agency work, zero-hour contracts and a lack of training. The training Bill is welcome, but will be less effective unless the apprenticeship levy is sorted out and an employment Bill accompanies it It is easy to make plans and mark them yourself, especially when the Institute for Fiscal Studies warns that current plans show an 8% cut in most departments, while NHS spending needs a big rise. Yes, some elements of this strategy appear in parts of the gracious Speech, but it needs to be drawn together. Will the Government create a strategy that we can all unite behind and will make progress instead of sliding back to where we were?