Queen’s Speech — House of Lords, 2022-05-16
Topic: Macroeconomics
Questions: 2050—I am just 100 years out. Even if we get to that, a lot of countries in the world will not. Two things follow from that. The first is that climate change will not be significantly improved. We in this country produce 1% of the world’s emissions, so if we have all the struggles and make the vast expenditures but other countries do not, we will not have achieved anything so far as climate change is concerned Secondly, if we have spent an enormous amount of money improving our electricity and getting it all done, our electricity will almost certainly be more expensive than it is in other countries. There is a danger we have to watch, as the heavy industrial users of electricity will build their factories in other countries, not in those that have spent all that money on this. We have the time to deal with this, but we have to be very careful that that is not the end result of what we do.
Simon Haskel (Labour, Centre-left): My Lords, I share many of the hopes for our economy expressed in the gracious Speech, but that is what they are: hopes—hopes dressed as Bills. I agree with other noble Lords that what is required is a strategy, a coherent plan on how we will achieve these hopes, and a coherent plan to grow an economy weakened by the pandemic, weakened by Brexit and weakened by inconsistency regarding trade, taxes and employment. Central to this must be a response from the Government regarding the rules by which business operates: rules that support companies to behave properly and responsibly and prevent chaotic collapses such as those of Thomas Cook and Carillion, mentioned by the Minister The real answer is a kind of "better business" Bill, based on the White Paper published a year ago that was followed by several reviews, all supported by major business organisations, employers and trade unions. This legislation has been downgraded once again in favour of campaign legislation. Indeed, the Institute of Directors has said that this is urgently needed to make the economy more business friendly. I agree with my noble friend Lady Jones; we need a mini-Budget with a windfall tax on energy companies to help deal with the immediate problem of putting more money into people’s pockets My noble friend also asked: where is the employment Bill? A major part of our industrial strategy must deal with casualisation and insecurity at work—something brought home to all of us should we need care, especially during the pandemic. A year ago, the Government reaffirmed their commitment to a single enforcement body for workers’ rights. This was particularly directed towards umbrella companies and the so-called "flexible labour market" Legitimate umbrella companies are desperate for government regulation of the sector so that they are not undercut by unfair competition. Like most companies, they realise that if somebody is working for you, you have a responsibility to make sure that they are not exploited, underpaid, or victims of the race to the bottom. Our renewed industrial strategy should also focus on the new economy, where intellectual property, digitalisation, brands, knowledge and ideas are key to growth and wealth creation—the so-called "intangible economy". Our industrial strategy must make the institutions that support this sector a lot more robust The gracious Speech speaks of housing and local empowerment. Yes, improving the UK’s housing supply is a critical issue and could stimulate good jobs and economic growth. This Government have presided over one of the worst housing crises in the western world. Many economists believe that restricting housing supply is a drag on our economy and puts us at a significant disadvantage. Affordable housing is essential for social mobility, and the so-called street plans could potentially deliver thousands of homes near public transport in high housing cost areas, with economic gain shared among all the community. This is one of the few proposals that we should explore further With the economy heading towards stagflation and contraction, this gracious Speech is a poor response to the economic problems facing us. Will the Government postpone the trivial and vanity legislation in the gracious Speech and give us an industrial strategy that unites us in dealing with our immediate and challenging problems and promises a better future for us all?