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.
Iain McNicol (Labour, Centre-left): My Lords, the economy, energy and the environment are three of the biggest challenges that we as a country now face. It is no wonder that so many from across your Lordships’ House wanted to contribute to this debate I start by thanking all those who have spoken. There have been many thoughtful and thought-provoking speeches—your Lordships’ House at its best. I particularly thank my noble friend Lady Jones of Whitchurch for her opening contribution, in which she clearly outlined the fundamental failure of this Queen’s Speech when she said: "We know that what really concern people are the cost of living crisis, the huge rise in energy bills, lengthening NHS waiting lists and the impact of climate change on our future well-being. However, instead of a programme to address these very real concerns, the Government have chosen to pick fabricated fights to please a dwindling group of core supporters." I also congratulate the right reverend Prelate the Bishop of St Edmundsbury and Ipswich on his maiden speech and offer these Benches’ support in addressing his priority—the challenges facing young people in towns and villages—which we are more than happy to support The Queen’s Speech contained 39 draft Bills, of which two sit in the Treasury, two in Defra and two and a half in BEIS. It is not just the lack of Bills that worries me but the content of them. They feel woefully inadequate to deal with today’s challenges across the economy, environment and energy. Inflation is currently at a 30-year high, with the potential for it to peak above 10%. An environmental crisis is rapidly approaching and looming, while millions of families are facing the catastrophe of soaring energy bills. My question to the Minister is this: does he really believe that the Bills as set out in the Queen’s Speech address these challenges? If he does, which is what I expect him to say, can he outline how the Treasury, BEIS and Defra Bills will actually deliver on that? Will he also answer some of the questions from his own Benches, specifically those from the noble Lord, Lord Forsyth I start with the economy. Over the last five hours of this debate, we have heard speech after speech and statistic after statistic on how the Government are failing on the economy—and that is just from the Government’s own Benches. This Government have overseen a decade of low growth. The IMF has predicted that, in 2023, the UK will slump to the bottom of the G7 league table. In March, the British Chambers of Commerce downgraded its own growth forecast for 2022 by half a per cent on its previous estimates, reflecting a deteriorating outlook for consumer spending and a weaker than expected rebound in business investment. Most people are experiencing real-terms pay cuts this year and are likely to do so for the next few years. As my noble friend Lord Chandos said in addressing these issues, it is painful for many but it is devastating for the poorest The Bank of England has increased the base interest rate from 0.75% to 1% in order to counter inflationary pressures, but this will further squeeze household incomes. The Bank of England has warned that, for many years, the cost of living crisis will feel more like a recession. While the Government like to talk of record numbers of vacancies, many businesses are finding that they are simply unable to recruit the staff that they need, holding back their potential and that of the wider economy. Rather than presenting a coherent set of measures to tackle the cost of living crisis and rebalance the economy, the Government’s answer to poor economic performance appears to be deregulation of financial services, which could pave the way for a repeat of past financial crises The financial services and markets Bill should be about how financial systems work for the people, by prioritising financial inclusion, green investment and the regulation of emerging markets such as those relating to cryptocurrencies—but I fear it will not. These Benches welcome the UK innovation bank being put on a statutory footing, but there needs to be greater and more consistent focus on green investment The Queen’s Speech did nothing to revisit social security uprating, as my noble friend Lord Wood and many others outlined. That is despite the Prime Minister committing to consider a more generous increase when he appeared before the Commons Liaison Committee earlier this year. As the noble Lord, Lord Bridges, said, the Government say one thing and do another. A variety of charities are warning of an exceptional growth in poverty unless the Government ensure that social security payments keep pace with inflation. In response to the Queen’s Speech, the Trussell Trust noted that, for many families, life is "no longer about living but surviving" For millions of families facing the catastrophe of soaring energy costs, the Government’s energy Bill is hopelessly inadequate. There is nothing to tackle the cost of living crisis, to bring forward energy efficiency measures or to ensure the green energy sprint that could bring down bills. The current energy crisis is a product of failed energy policies. British people are paying the price of higher energy bills now, because of the Government’s failure, over the last decade, to properly regulate the energy market or to develop renewables. Fortunately, we have seen some progress on nuclear power and will see more nuclear build, but more needs to be invested in renewables The Government could, today, have introduced greater support for working families and pensioners facing these rising bills, funded by a windfall tax on oil and gas companies. Nor does the Bill contain the measures desperately needed to end the ban on onshore wind and to build a national mission of home insulation. A decade of failed energy policy has left energy bills too high and the UK’s energy system just too weak. Labour would have brought forward an ambitious energy Bill that took real action to bring down energy bills, accelerate the green energy sprint and strengthen the UK’s energy security Finally, on the environment, the Covid pandemic served to highlight the importance of open and outdoor spaces. This Session of Parliament will see us debate a number of vital environmental targets, but, as the noble Baroness, Lady Hayman, rightly highlighted, this will be done by secondary legislation enabled by the Environment Act. The process underpinning this has been chaotic from the start. That, coupled with a lack of environmental content in the Queen’s Speech, does not instil in us sufficient belief that the Government have the ambition to solve this crisis. Given the severity of the climate crisis and the level of public interest in it, it is disappointing that the Government are not doubling down on commitments relating to net zero—an opportunity missed. The Government seem to have chosen to devote more time and political capital to stopping climate-related direct action from protesters than to solving the issues they are raising In conclusion, this Queen’s Speech feels light and full of rhetoric, with little ambition. To quote the noble Lord, Lord Tugendhat, there is an "absence of urgency". Where is the high-skill, high-tech, high-wage Britain of the 21st century? Where is the plan to rebalance and rebuild our economy? Where is the plan to reduce energy bills for consumers and businesses? And where is the promised employment rights Bill? The Government simply do not have the answers to the challenges our country now faces Tomorrow, Labour will give the Government another chance to support a windfall tax. As we have heard, there is much support for this across the Floor of the House. Let us hope the Government take that opportunity.