Queen’s Speech — House of Lords, 2020-01-09
Topic: Macroeconomics
Howard Emerson Flight (Conservative, Centre-right): My Lords, I refer to my interests in the register. This is, to my mind, an excellent document and the Government are to be congratulated on getting it out so promptly. I strongly agree with the points on education and productivity made by the noble Lord, Lord Griffiths, and the noble Baroness, Lady Bull. The one problem I see with the document is that I cannot see that it can all be legislated within a single Parliament—I reckon about 50 pieces of legislation will be required—so it is appropriate to consider which are the most important proposals A key objective must be to improve our infrastructure, boost productivity and level up opportunities across the country. Here, the political message is overwhelming. The Conservatives have succeeded in attracting major political support in the Midlands and the north of England. This needs to be rewarded, cemented and sustained by boosting the economies in these areas and by increased public spending. Fortunately, some element of economic catch-up is starting to happen. I note that SMEs have been doing better in the north than in the south in recent months. The national infrastructure strategy will be important to help carry all this forward. I am also a supporter of the proposed national security and investment Bill to strengthen the Government’s powers to investigate and intervene in business transactions—for example, takeovers and mergers. Reform of business rates to protect high streets is also well overdue The national infrastructure strategy, to be published alongside the first Budget, will be fundamental to sustaining improved economic growth. It will set out the Government’s long-term ambitions across all areas of economic infrastructure, including transport, digital infrastructure and infrastructure finance and delivery. It has two key aims: to unleash Britain’s economic potential by levelling up and connecting every part of the country; and to address the critical challenges posed by climate change. It is crucial to exploit the coming revolution in digital technology. Broadband legislation will also be needed to support the rollout of gigabit-capable broadband across the UK, to achieve national coverage as soon as possible and to make it easier for telecoms to install broadband infrastructure in blocks of flats. All new homes will be required to be built with reliable and fast internet Minimum service railway legislation is proposed to reduce the disruption caused to the public by rail strikes and, following the excellent report of the noble Lord, Lord Berkeley, it looks to me as though HS2 is dead—and it should be dead. A Midlands hub to improve services around Birmingham and the Midlands, northern powerhouse rail and a programme of significant upgrading of urban commuter and regional services outside London look to me much better value than HS2 Both politically and economically, I perceive parallels between the Disraeli Administration and the Boris Government. Disraeli was successful in securing the votes and political support of the newly industrialised Midlands and north; his Government also introduced major political and economic reforms, governing in the national interest. Neither Disraeli nor Boris is a focused economist, but both appreciate the importance of selecting good people to lead reforms I am concerned that Boris may have overcommitted on increased NHS, police and education spending, but let us hope that the figures are manageable. The problem with free goods is that demand is limitless and the main problem with the NHS is its management. Nor do I believe that the public would support major increases in taxation There are also no apparent proposals to reduce the level of stamp duty hitting the property market in London and the south-east and, in fact, reducing potential stamp duty revenues. I also believe that it would be counterproductive to seek to outlaw pre-packs, as they provide a speedy way of sorting out businesses that have got into trouble The key missing commitment is to reduce and rationalise the excessive levels of regulation, particularly in the financial services market, which are now costing a fortune and having a significant drag on productivity. In many respects, they achieve little or nothing. The noble Baroness, Lady Neville-Rolfe, made essentially the same point; it is our biggest industry, and the productivity figures from the last 10 years, as the regulatory industry has taken grasp, tell the story. It needs addressing.