Queen’s Speech — House of Lords, 2019-10-17
Topic: Macroeconomics
John Eric Gardiner (Conservative, Centre-right): My Lords, it is a great pleasure and privilege to conclude today’s debate on Her Majesty’s gracious Speech. First, I declare my farming interests, as set out in the register. I am most grateful to my noble friend Lady Vere for opening the debate so comprehensively and with panache. I thank all noble Lords who have taken part in this diverse debate on critical issues. I agree with the noble Baroness, Lady Randerson, and the noble Lord, Lord Stevenson of Balmacara, that we have discussed some of the most critical issues, not only for this country but across the world. So many important points have been raised today. The generous noble Lord, Lord Stevenson, has already raised this. I fear I will not be in a position to respond to every question put by every noble Lord. I do promise that there will be a substantial letter with a detailed response. Your Lordships should be prepared for many pages. I want to ensure that points are covered fully either with my reply or with the letter From the outset I acknowledge and congratulate the right reverend Prelate the Bishop of Bristol and the noble Baroness, Lady Bennett, on their maiden speeches. They raised issues of profound importance and I look forward to their future contributions. I think it is fair to say that discussions on all the matters the noble Baronesses raise will be lively On economic affairs, I was interested in what my noble friend Lord Leigh of Hurley said in comparison with what the noble Baroness, Lady Jones of Whitchurch, opened with. Our view is that the fundamentals of the UK economy are strong. The measures in the Queen’s Speech are built on economic progress over the last decade, a period during which our economy has grown by almost one-fifth and 3.6 million more people are in work. I am very glad that my noble friend Lady Redfern referred to the rural economy, where so many small and medium enterprises are established Wage growth has outstripped inflation for over a year and unemployment is down by 1.2 million since 2010. Youth unemployment has fallen by 47% and borrowing has been cut by over four-fifths as a share of GDP since 2010. I acknowledge, and in acknowledging I look at noble Lords on the Liberal Democrat Benches, that success would not have been possible if we had not taken difficult decisions from 2010. I believe it was in the national interest and responsibility that the public finances were restored. The noble Lord, Lord Macpherson of Earl’s Court, was probably very much in the front line of some of those thoughts I picked up the words on austerity from a number of noble Lords. I think of the noble Lord, Lord Darling, then Chancellor, recognising that there had to be a retrenchment. When we cut through all this, the piece of legislation the Labour Government passed in 2010 was a recognition that matters had to be taken in hand. I am particularly mindful of what the noble Lord, Lord Livermore, said about fiscal caution I also think we are right to begin a new decade of investment and renewal. My noble friend Lady Neville-Rolfe set that out strongly. When I look at noble Lords on the Labour Benches, I do not dream for one minute that this is associated with them, but I and the Government would say that the current views of the present Labour leadership do not seem to chime with enterprise, private ownership or, indeed, success. I am mindful of what the noble Lord, Lord Bilimoria, said on these matters. It is, after all, that economic engine that will always do all the things that noble Lords across the House have sought today I am grateful to the noble Lord, Lord Stevenson, for raising the tips Bill. I am afraid I do not have the answer on Northern Ireland yet, but that will be part of my letter On the issue that the noble Lord, Lord Fox, raised about fiscal rules, the 2019 spending round continues to meet existing fiscal targets. The Government will review the rules alongside updated forecasts at the Budget On the question about regulation from the noble Baroness, Lady Kramer, financial services will not see diluted regulation. We remain committed to world-leading regulation standards. Furthermore, the UK remains committed to equivalence with the EU in any scenario. But as my noble friend Lord Leigh said, it is essential that our regulation is reformed and responds to changes in the market to make sure that there is an appropriate balance—I emphasise "appropriate"—between investor freedoms and protections. Indeed, I understand that my noble friend is due to meet the Economic Secretary to the Treasury shortly, and I am sure some of those points will be outlined The noble Baroness, Lady Kramer, mentioned that there was nothing in the financial services Bill on fintech. The Government already launched the fintech sector strategy in March 2018 to show how the UK could remain the best place in the world for fintech. All announcements in that strategy have already been delivered. The UK has been independently ranked as the best place in the world to start a fintech business I am not sure the noble Lord, Lord Bilimoria, was in his place at the time, but he and the noble Lord, Lord Haskel, take contrary views on corporation tax cuts. The rate of corporation tax has been cut from 28% in 2010 to 19% now—the lowest in the G20—benefiting businesses large and small, we believe. I am afraid these are the words I must say: as normal, the Chancellor will set out the rates for all major taxes at the Budget, now due in November A number of your Lordships—particularly the noble Baronesses, Lady Jones of Whitchurch, Lady Parminter and Lady Mallalieu, and my noble friend Lady Browning —asked about standards and future trade agreements. Any future trade agreements must work for consumers, farmers, businesses and the UK. We will not water down our standards on food safety, animal welfare or environmental protection as part of any future deals. Yes, we want to negotiate an ambitious and comprehensive free trade deal with the United States, but any new products wishing to enter the UK market must comply with our high standards on animal welfare and food safety, for instance. We will not—I underline not—compromise on these standards. Indeed, WTO rules allow WTO members to adopt and maintain trade-restrictive measures on specified public policy grounds The noble Lords, Lord Fox and Lord Stevenson, asked about the trade Bill. Again, final decisions are still to be taken, but I have these words: we welcome your Lordships’ work and it will certainly be taken into account. Legislation will ensure that we deliver certainty to business, seek continuity of existing EU trade agreements and establish an independent trade remedies authority The noble Lord, Lord Haskel, mentioned productivity. Funding of the national productivity investment fund has increased from £23 billion to £37 billion. We are determined to tackle the, I think, serious issue that this great country does not have the strongest productivity figures, and I believe it should. We need to work on that I turn to business and energy. Climate change is one of the most urgent and pressing challenges we face, as raised by the noble Baroness, Lady Jones of Whitchurch. I say to your Lordships’ walking legend, my noble friend Lord Bates, that he is right—as we sometimes should be prepared to say—in speaking of our country’s strong record on these matters, even when we need to do much more. It is fair and right that this Government wish to deliver their ambition to be the greenest Government ever. We also need to ensure that economic and environmental success go hand in hand. That is surely the major challenge.