Queen’s Speech — House of Lords, 2021-05-12
Topic: Macroeconomics
James Bridges (Conservative, Centre-right): My Lords, we all know the challenges and opportunities that lie before us: the green and digital revolutions; competing in a post-Brexit world; paying for our ageing population; and, of course, repairing the economic damage caused by Covid. The last time a Conservative Government enjoyed a majority of this size, they too faced enormous challenges, and they seized that opportunity to remodel the economy. Everyone knew that Government’s direction of travel and even their opponents grudgingly respected the Government’s willingness to take tough decisions to achieve their aims. So, with that in mind, I ask whether this Government are using their political power and this golden opportunity to meet the challenges this nation faces. How does the gracious Speech rise to the moment and set us on a new course There are good things within the gracious Speech. Free ports could breathe life into depressed communities. I applaud measures to reform the planning system and to improve skills and lifelong learning. Previous Governments have expressed similar bold ambitions, so I hope this one will succeed where others have failed—they will certainly have my support. However, apart from those Bills, I ask: is this all the Government have to offer, given the scale of the challenges, the plentiful opportunities and the political wind in their sails For example, as we undergo the digital revolution, why are we not updating our analogue employment laws? What plans have we to revamp our complex analogue tax system? How, specifically, are we going to help people and businesses go green? What new powers are we going to give to city mayors to help them level up communities? And how will we pay for our ageing population? Sadly, we will not be debating Bills on these topics, although the Government have found time to legislate to stop puppy smuggling. I remain to be convinced that we are really confronting the major challenges we face I also detect something deeper. Far from a wish to unleash enterprise and support risk-takers, I sense a worrying drift towards big government. Of course, we needed to support businesses during Covid—that goes without saying—but my concern, and I very much hope to be proven wrong, is that the Government’s tendency is to think, once again, that the man in Whitehall knows best. By that I do not wish to imply that government has no role at all to play, but what I am saying is that I believe that the private sector, not Whitehall, will drive growth; that competition, not state intervention, will boost innovation; that low tax provides incentives for investment and hard work; and that a strong economy is founded on stable finances, not debt Look at the direction we are heading in. By 2025, we will have 3 million more higher rate taxpayers than in 2010. Corporation tax is heading towards its highest level since 1989. The tax burden is rising to its highest level since the 1960s. Our stock of debt is at its highest level since 1958. Borrowing is at its highest level since 1947, when records began. Although the nation is deep in the red, this Speech implies still more spending and my understanding is that, other than the NHS, schools and defence, all other areas face real-term cuts in 2022-23. Maybe, when my noble friend sums up, he can tell us how the plans in this Speech are going to be paid for and where the money will come from Governments are best when they are bold, and this Government have a once-in-a-generation opportunity to reset the course of our nation, so we are able to meet the challenges and make the most of the opportunities that lie ahead. Sadly, at the end of the gracious Speech, I was left wondering: is that it?