Autumn Budget 2025

Baroness Moyo Excerpts

Thursday 4th December 2025 Lords Chamber

[Baroness Moyo (Non-Afl)]

My Lords, I will centre my remarks on whether the Budget will help to catalyse economic growth in this country. In her Budget speech the Chancellor referred to economic growth as

“the best means of improving wages, creating jobs and supporting public services”.—[Official Report, Commons, 26/11/25; col. 385.]

I will address two persistent chokeholds on the economy: high energy prices and low private sector investment. To my mind, neither issue has been adequately addressed in this Budget.

Let us first remember where our economy lies today: the OBR has lowered the UK’s economic growth forecast to 1.4% in 2026, and it is stuck at 1.5% in all of the following four years. In September, the unemployment rate stood at 5% and, worse still, more than 15% of young people aged between 16 and 24 are unemployed or not in school or training. Inflation, although it has dipped a bit, is stubbornly at 3.6%, in excess of the 2% Bank of England target. Given this backdrop, lowering energy prices and increasing private investment levels are both urgent matters.

On the cost of energy, I note that the Government have cut the green levy to lower household energy bills. However, the Budget does not address the structural forces behind high energy costs for households, business and public services such as the NHS. Britain’s high energy cost of 40 cents per kilowatt hour is an international outlier and a distinct disadvantage. France is at 28 cents, the US is at 18 cents and both China and India are at 8 cents. Such energy costs in the United Kingdom undermine attempts to build economic growth. As I have noted in your Lordships’ Chamber before, cutting energy costs is the ultimate non-inflationary economic stimulus and one that this country urgently needs. Thus, government policy should embrace all forms of energy, including those we have in the North Sea.

On investment, I point noble Lords to my registered interests as a member of the board of directors of Starbucks and Chevron, and a member of the Oxford University Endowment investment committee, all of which have notable investment interests in the United Kingdom. A Government with a stated mission to pursue economic growth must encourage private sector investment, which supports jobs, innovation and the economy. This Budget attempts to do so, but there is, as ever, considerable scope to do much more.

The Budget outlines constructive measures such as encouraging ISAs to invest in equities as well as cash, stamp duty holidays on newly listed companies, and reforms to the Enterprise Management Incentives scheme. However, these measures will have a marginal, not transformational impact, not least because other Budget measures such as higher taxes on dividends for investors will likely offset these benefits. Only a more holistic approach can be catalytic in driving investment.

We must not lose sight of the growth objective and imperative. Therefore, the Budget trade-offs in tax, spending and debt need ultimately to stimulate growth. Lower energy prices and higher private investment are not only crucial for propelling growth; they are a pre-requisite for prosperity.