Asked by: Baroness McGregor-Smith (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the report by the Office for Budget Responsibility Fiscal risks and sustainability, published on 7 July, in particular its conclusion that the current trajectory for public debt is unsustainable over the long term; and what steps they intend to take in response.
Answered by Lord Pitt-Watson - Parliamentary Secretary (HM Treasury)
The Office for Budget Responsibility’s Fiscal Risks and Sustainability Report (FRS) 2026 confirms the need to boost growth and maintain sustainable public finances. A written ministerial statement (HLWS199) was published on 7 July alongside the publication of the FRS, setting out the actions the government is taking to reduce the deficit and ensure long-term sustainability.[1]
[1] https://questions-statements.parliament.uk/written-statements/detail/2026-07-07/hlws199 UK Parliament, 7 July 2026.
Asked by: Baroness McGregor-Smith (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the contribution of (1) defence, (2) advanced manufacturing, and (3) artificial intelligence, to improving the United Kingdom’s long-term economic growth prospects.
Answered by Lord Livermore
The Office for Budget Responsibility produces its forecasts independently and is responsible for the assumptions underpinning them.
The Government is committed to increasing the UK's long-term growth potential.
The Government’s strategy to boost growth and improve productivity has been guided by three principles: restoring economic stability, increasing investment, and reforming the economy to remove barriers to growth.
We have made significant progress, including through implementing the Planning and Infrastructure Act and are backing businesses by delivering the modern Industrial Strategy. We have also introduced reforms to unlock private sector investment, including through legislative changes to the pensions system, and to strengthen the UK's skills base, such as by introducing the Growth and Skills Levy.
Last year, RTI-based productivity growth was 2.2 per cent, the fastest calendar year rate outside the pandemic in more than a decade. Whole economy investment has risen to 5.6% above its level at the start of this Parliament.
In the 2026 Mais Lecture, the Chancellor set out how the Government is going even further on this agenda with three big choices: empowering regional growth, embracing AI & innovation, and establishing a closer relationship with the EU.
Asked by: Baroness McGregor-Smith (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what reforms they anticipate will increase the UK’s long-term productivity growth above the assumptions used by the Office for Budget Responsibility's Economic and Fiscal Outlook, published on 3 March; and by how much they expect each reform to contribute.
Answered by Lord Livermore
The Office for Budget Responsibility (OBR) produces its forecasts independently and is responsible for the assumptions underpinning them.
The OBR’s March forecast incorporates the impacts of government policies announced to date, including impacts on the supply side of the economy, where these meet relevant OBR criteria.
The government is committed to going further to deliver higher growth in the long term.
We have set out a strategy centred on economic stability, boosting public and private investment, and supply-side reform to raise productivity. This includes reforms such as the Planning and Infrastructure Act, the Industrial Strategy, pensions reforms to unlock investment, and the Growth and Skills Levy.
In her 2026 Mais Lecture, the Chancellor also set out three further priorities for raising the UK's long-term growth potential: empowering regional growth, embracing AI and innovation, and establishing a closer relationship with the European Union.
Asked by: Baroness McGregor-Smith (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they intend to take to increase the United Kingdom’s trend rate of economic growth above the Office for Budget Responsibility’s central forecast.
Answered by Lord Livermore
The Office for Budget Responsibility produces its forecasts independently and is responsible for the assumptions underpinning them.
The Government is committed to increasing the UK's long-term growth potential.
The Government’s strategy to boost growth and improve productivity has been guided by three principles: restoring economic stability, increasing investment, and reforming the economy to remove barriers to growth.
We have made significant progress, including through implementing the Planning and Infrastructure Act and are backing businesses by delivering the modern Industrial Strategy. We have also introduced reforms to unlock private sector investment, including through legislative changes to the pensions system, and to strengthen the UK's skills base, such as by introducing the Growth and Skills Levy.
Last year, RTI-based productivity growth was 2.2 per cent, the fastest calendar year rate outside the pandemic in more than a decade. Whole economy investment has risen to 5.6% above its level at the start of this Parliament.
In the 2026 Mais Lecture, the Chancellor set out how the Government is going even further on this agenda with three big choices: empowering regional growth, embracing AI & innovation, and establishing a closer relationship with the EU.
Asked by: Baroness McGregor-Smith (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what estimate they have made of the contribution that accelerated infrastructure delivery could make to increasing the United Kingdom’s long-term growth rate above the Office for Budget Responsibility’s forecast.
Answered by Lord Livermore
The Office for Budget Responsibility produces its forecasts independently and is responsible for the assumptions underpinning them.
The Government is committed to increasing the UK's long-term growth potential.
The Government’s strategy to boost growth and improve productivity has been guided by three principles: restoring economic stability, increasing investment, and reforming the economy to remove barriers to growth.
We have made significant progress, including through implementing the Planning and Infrastructure Act and are backing businesses by delivering the modern Industrial Strategy. We have also introduced reforms to unlock private sector investment, including through legislative changes to the pensions system, and to strengthen the UK's skills base, such as by introducing the Growth and Skills Levy.
Last year, RTI-based productivity growth was 2.2 per cent, the fastest calendar year rate outside the pandemic in more than a decade. Whole economy investment has risen to 5.6% above its level at the start of this Parliament.
In the 2026 Mais Lecture, the Chancellor set out how the Government is going even further on this agenda with three big choices: empowering regional growth, embracing AI & innovation, and establishing a closer relationship with the EU.
Asked by: Baroness McGregor-Smith (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the Office for Budget Responsibility’s assumptions on UK productivity growth; and what steps they intend to take to increase productivity over the next decade.
Answered by Lord Livermore
The Office for Budget Responsibility produces its forecasts independently and is responsible for the assumptions underpinning them.
The Government is committed to increasing the UK's long-term growth potential.
The Government’s strategy to boost growth and improve productivity has been guided by three principles: restoring economic stability, increasing investment, and reforming the economy to remove barriers to growth.
We have made significant progress, including through implementing the Planning and Infrastructure Act and are backing businesses by delivering the modern Industrial Strategy. We have also introduced reforms to unlock private sector investment, including through legislative changes to the pensions system, and to strengthen the UK's skills base, such as by introducing the Growth and Skills Levy.
Last year, RTI-based productivity growth was 2.2 per cent, the fastest calendar year rate outside the pandemic in more than a decade. Whole economy investment has risen to 5.6% above its level at the start of this Parliament.
In the 2026 Mais Lecture, the Chancellor set out how the Government is going even further on this agenda with three big choices: empowering regional growth, embracing AI & innovation, and establishing a closer relationship with the EU.
Asked by: Baroness McGregor-Smith (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the barriers to business investment identified in the Office for Budget Responsibility’s Economic and Fiscal Outlook, published on 3 March.
Answered by Lord Livermore
The Office for Budget Responsibility produces its forecasts independently and is responsible for the assumptions underpinning them.
The Government is committed to increasing the UK's long-term growth potential.
The Government’s strategy to boost growth and improve productivity has been guided by three principles: restoring economic stability, increasing investment, and reforming the economy to remove barriers to growth.
We have made significant progress, including through implementing the Planning and Infrastructure Act and are backing businesses by delivering the modern Industrial Strategy. We have also introduced reforms to unlock private sector investment, including through legislative changes to the pensions system, and to strengthen the UK's skills base, such as by introducing the Growth and Skills Levy.
Last year, RTI-based productivity growth was 2.2 per cent, the fastest calendar year rate outside the pandemic in more than a decade. Whole economy investment has risen to 5.6% above its level at the start of this Parliament.
In the 2026 Mais Lecture, the Chancellor set out how the Government is going even further on this agenda with three big choices: empowering regional growth, embracing AI & innovation, and establishing a closer relationship with the EU.
Asked by: Baroness McGregor-Smith (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact of skills shortages on the Office for Budget Responsibility’s medium-term growth forecast.
Answered by Lord Livermore
The Office for Budget Responsibility produces its forecasts independently and is responsible for the assumptions underpinning them.
The Government is committed to increasing the UK's long-term growth potential.
The Government’s strategy to boost growth and improve productivity has been guided by three principles: restoring economic stability, increasing investment, and reforming the economy to remove barriers to growth.
We have made significant progress, including through implementing the Planning and Infrastructure Act and are backing businesses by delivering the modern Industrial Strategy. We have also introduced reforms to unlock private sector investment, including through legislative changes to the pensions system, and to strengthen the UK's skills base, such as by introducing the Growth and Skills Levy.
Last year, RTI-based productivity growth was 2.2 per cent, the fastest calendar year rate outside the pandemic in more than a decade. Whole economy investment has risen to 5.6% above its level at the start of this Parliament.
In the 2026 Mais Lecture, the Chancellor set out how the Government is going even further on this agenda with three big choices: empowering regional growth, embracing AI & innovation, and establishing a closer relationship with the EU.
Asked by: Baroness McGregor-Smith (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government why they are increasing the income threshold for high net worth individuals from £100,000 to £170,000; what forecast they have made of the impact of these changes on the numbers of women who may qualify; and what forecast they have made of the impact of these changes on women’s economic parity in the UK.
Answered by Baroness Vere of Norbiton
The changes to the financial promotion exemptions that came into force on 31 January 2024 were subject to a public consultation which closed in March 2022. Impacts of the proposals were considered, and a consultation response and de minimis impact assessment were published alongside the final reforms. The changes made aimed to both reduce the risk of consumer detriment and preserve the ability of SMEs to raise finance under the exemptions.
However, the Government recognises the significant concerns that have been raised recently about these changes. The Economic Secretary met last week with the angel investing sector and listened carefully to the representations made, and the Government is working closely with the sector to address the concerns raised.
Asked by: Baroness McGregor-Smith (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the economic impact of the Health Protection (Coronavirus, Restrictions) (England) (No.4) Regulations 2020.
Answered by Lord Agnew of Oulton
As the Chancellor said in his letter to the TSC on 4 November, HM Treasury does not prepare formal forecasts for the UK economy, which are the responsibility of the independent OBR. They will publish their next forecast on 25 November.
In addition, within their statutory mandates, the Bank of England’s Monetary Policy Committee (MPC) produce analysis which reflect their independent judgements regarding the impact of Covid-19 on the likely path of the economy. They updated their projections in their Monetary Policy Report published on 5 November. This reflected UK restrictions announced up to 31 October, including “heightened England-wide measures for the period 5 November to 2 December”. In this scenario, GDP was revised downwards and is now expected to contract by 2% in Q4 reflecting the impact of stricter measures to control Covid-19.