HS2: Cost

Lord Forsyth of Drumlean Excerpts
Wednesday 24th July 2019

(4 years, 9 months ago)

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Lord Forsyth of Drumlean Portrait Lord Forsyth of Drumlean (Con)
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My Lords, given that the previous chairman of HS2 said in his evidence to the Economic Affairs Committee inquiry that no one knew what the costs of HS2 would be, and that his successor has now said that there will be a considerable increase in the cost, can my noble friend guarantee that, should the section from London to Birmingham overrun its costs, the proposals for the north of England will remain ring-fenced and that the additional routes in the north will not be cancelled because of the overrun on stage 1?

Baroness Vere of Norbiton Portrait Baroness Vere of Norbiton
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As I have already tried to explain, the costs are still under review and being finalised. I am certainly not able to give the assurance that my noble friend is after as to the routes in the north because complex rail developments such as these are interrelated and the true benefits—the true value for money for the taxpayer—is achieved only when they are built as one system.

Railways: Newcastle and Edinburgh

Lord Forsyth of Drumlean Excerpts
Monday 24th June 2019

(4 years, 10 months ago)

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Baroness Vere of Norbiton Portrait Baroness Vere of Norbiton
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We do not know what the Williams review is going to say on that or indeed any other point, but it will be a root-and-branch review of the entire system so that we can create a railway system fit for the 21st century and build up a blueprint of how our future on the railway will look. The review will look at reforms to the structure of the industry as well as to the commercial model within which it operates. Some 600 responses have been made to the call for evidence, so noble Lords will understand that it will take quite a while to go through them all. As regards the new services on the east coast main line, that was an open process conducted between 2014 and 2015. The operator has been granted track access rights from 2021 to operate those services.

Lord Forsyth of Drumlean Portrait Lord Forsyth of Drumlean (Con)
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My Lords, my noble friend has answered a series of Written Questions from me about services from Edinburgh to London by air. Does she think it is reasonable for British Airways to charge economy-class fares of more than £600 for a return journey to Edinburgh on planes that are absolutely full—so full, in fact, that the Convenor was not able to get here today?

Baroness Vere of Norbiton Portrait Baroness Vere of Norbiton
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I thank my noble friend for his Questions on this issue. As I have said to him previously, air travel in this country is subject to a competitive market and certain services will necessarily cost more than others. Where there is not a sufficient service, the Government will step in and provide support, but that is obviously not the case on the Edinburgh route.

Brexit: European Union’s No-deal Continuity Arrangements

Lord Forsyth of Drumlean Excerpts
Thursday 13th June 2019

(4 years, 11 months ago)

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Baroness Vere of Norbiton Portrait Baroness Vere of Norbiton
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Unfortunately, I do not recall the Government’s response to the noble Lord of 6 February. Discussions of tariffs are slightly beyond the original scope of the Question, but we expect the EU’s most favoured nation tariff regime to apply to the UK if the UK leaves the EU without a deal. Noble Lords are also aware that this will result in the introduction of tariffs on 60% of current UK exports to the EU.

Lord Forsyth of Drumlean Portrait Lord Forsyth of Drumlean (Con)
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My Lords, given that all the leading contenders for the leadership of the Conservative Party have made clear that it is important the European Union understands that we are prepared to leave without a deal if we cannot get a sensible agreement, would it not be sensible for the Government to publish, for each department, what plans are in place, how they need to operate and what future additions will be required?

Electric Vehicles: Charging Points

Lord Forsyth of Drumlean Excerpts
Tuesday 7th May 2019

(5 years ago)

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Baroness Vere of Norbiton Portrait Baroness Vere of Norbiton
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I thank the noble Baroness for a number of questions there. I disagree with her that growth is not rapid. We are the second-largest market for electric vehicles in Europe. I believe that the rollout to date has been very successful. For example, within the last 30 days 1,000 charge points have been introduced. The noble Baroness spoke about local authorities and we support the work they are doing. There is no more funding available but we are encouraging the private sector to step up and, with £400 million in the charging infrastructure investment fund, we believe that it will.

Lord Forsyth of Drumlean Portrait Lord Forsyth of Drumlean (Con)
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My Lords, would it not be a good idea for Parliament to give an example to the rest of the country? We have 487 parking spaces between this House and the other place, and I am told there are two charging points in the House of Commons and three more promised for Royal Court. How can we expect the country to take us seriously if we cannot put our own house in order?

Baroness Vere of Norbiton Portrait Baroness Vere of Norbiton
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I completely agree with my noble friend that we need more charging points within the House. I certainly used to drive but I do so no longer. I use public transport and I encourage all noble Lords to do the same.

Brexit: No-deal Ferry Contracts

Lord Forsyth of Drumlean Excerpts
Wednesday 1st May 2019

(5 years ago)

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Baroness Vere of Norbiton Portrait Baroness Vere of Norbiton
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I would like to focus on the first of those questions: what exactly was the benefit to the taxpayer? The benefit was that the taxpayer had an insurance policy. Like many organisations, the Government are able to take out insurance policies, and these contracts were precisely that. The benefit to the taxpayer is that the Government were able to ensure the continued movement of absolutely critical goods—what we call “class 1 goods”—into this country in the event of no deal. I am fairly sure that the noble Lord would have been the first to criticise the Government had these goods not got through.

Lord Forsyth of Drumlean Portrait Lord Forsyth of Drumlean (Con)
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Following my noble friend’s analogy, can she explain why we have given up the insurance policy before we have the certainty of knowing that we will not have no deal? Can she also tell us what the total cost to the taxpayer has been of our failure to leave on 29 March?

Baroness Vere of Norbiton Portrait Baroness Vere of Norbiton
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The noble Lord is right that this particular insurance policy falls away because these were six-month contracts, and now that we have the extension to 31 October the contracts are obviously not needed. These contracts are very visible, but they are actually an extremely small proportion of our no-deal planning. A total of £4 billion has been put in place as an insurance package to make sure that, in the event of no deal, which remains the legal default, we will be able to protect our citizens.

Queen’s Speech

Lord Forsyth of Drumlean Excerpts
Monday 26th June 2017

(6 years, 10 months ago)

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Moved on Wednesday 21 June by
Lord Forsyth of Drumlean Portrait Lord Forsyth of Drumlean
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That an humble Address be presented to Her Majesty as follows:

“Most Gracious Sovereign—We, Your Majesty’s most dutiful and loyal subjects, the Lords Spiritual and Temporal in Parliament assembled, beg leave to thank Your Majesty for the most gracious Speech which Your Majesty has addressed to both Houses of Parliament”.

Lord Callanan Portrait The Parliamentary Under-Secretary of State, Department for Transport (Lord Callanan) (Con)
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My Lords, it is a privilege and pleasure to open the second day of debate on Her Majesty’s most gracious Speech. I am honoured to be standing before noble Lords just three weeks after taking up my role in the new Government as a Transport Minister. This is always one of the most interesting and wide-ranging debates in the Lords calendar, so I very much look forward to the valuable and informed contributions that I know that many noble Lords will make. On behalf of the whole Chamber, I particularly extend a warm welcome to the noble Lords, Lord Colgrain and Lord Mountevans, who will be giving their maiden speeches today. I also thank my noble friend Lord Prior, who will be winding up the session this evening.

This Queen’s Speech was all about building a stronger, more successful and more resilient Britain: a country with its sights firmly set on the future and on what we can achieve as we build closer links with friends and trading partners around the world; as we deliver a Brexit deal that works for all parts of the United Kingdom; and as we grow and rebalance our economy, working to meet the aspirations of the whole nation. These themes will crop up regularly in our Queen’s Speech debate today, as we debate the Government’s agenda on economic affairs, transport, business, energy, the environment and agriculture.

Let me start with the economy. The fundamentals of the economy are strong. We have a record number of people—almost 32 million—in employment. We have reduced the deficit by almost three-quarters since 2010. After our economy grew 1.8% last year—the second highest in the G7—the Office for Budget Responsibility expects it to grow a further 2% this year.

Our economic success over the past few years has been widely documented, but what perhaps is less well appreciated is how it is benefiting the whole of our country. As the Chancellor made clear in his Mansion House speech last week, inequality is at its lowest in 30 years. The poorest households here have seen their incomes rise by more since 2010 than any other G7 country. That is partly thanks to the introduction of the national living wage, adding £1,400 to the annual income of those in full-time work on minimum salary. It will continue as we increase the national living wage, so that people on the lowest pay see their wages rise as the economy strengthens.

We have been clear that we want to keep taxes as low as possible for ordinary working people. Although we live in changing times, one thing will never change: this Government will always put economic stability first. That is why we are investing £23 billion through the national productivity investment fund in key growth areas, such as research and development and housing. It is why we are helping young people to get the training and development they need to do the high-skilled, high-paid jobs of the future. It is why we are determined to get the best possible Brexit deal for households and for UK companies.

As we leave the EU and adjust to our new position in the world, the resilience, flexibility and dynamism of our economy will be key. New Bills in the Queen’s Speech on trade and customs will help to give us an independent trade policy and a world-leading customs service. As Her Majesty’s most gracious Speech made clear, we will help British businesses sell their products and services abroad and boost exports.

Achieving our economic objectives depends on co-ordinated action across government, and I am proud that transport is playing a much bigger role today in stimulating growth. Transport used to be among the first departments to suffer whenever Governments of the day had to tighten their fiscal belts. While our competitors invested in major infrastructure projects, here in the UK, transport upgrades often fell victim to short-term political concerns. Because we have failed to invest in the long-term fabric of our nation, we have watched as our roads have grown more congested and our railways more overcrowded. But that is changing. No more is Britain seen as short-termist or infrastructure-averse. Since 2010, we have overhauled transport policy, and today we are delivering the capacity and links that we need to grow as we leave the European Union—connecting British companies with fast-growing global markets, creating the highly skilled jobs we need to modernise transport in this country and making the necessary investments to improve journeys for all working people.

Her Majesty’s most gracious Speech also showed how we are taking full advantage of the unique opportunities that new technologies provide. For example, the automated and electric vehicles Bill will help make Britain a global leader in developing and owning self-driving and electric cars. Self-driving vehicles might sound like science fiction, but they are already science fact and will revolutionise the way we travel. They will make roads safer by cutting the risk of human error and reducing insurance premiums. They will change the lives of disabled people with reduced mobility and reduce congestion by making better use of scarce road space. That is why, through this Bill, we are positioning ourselves as one of the first countries to benefit from the development and growth of self-driving vehicles.

It will also help us retain our leadership in electric vehicles. We are already one of the biggest markets for plug-in cars in Europe. So far this year, sales of pure electric cars are up by 36%, with a total of more than 100,000 ultra-low-emission vehicles now on our roads in this country. That is a ringing endorsement of the Government’s funding commitments of more than £2 billion since 2011 to increase ultra-low-emission vehicle uptake and support greener transport.

Our charging infrastructure is one of the most comprehensive in Europe, with more than 11,000 publicly accessible charging points, now including 900 rapid chargers. As the market evolves, however, this number will need to increase. The new Bill will give drivers confidence that there will be somewhere to charge their cars at motorway service areas and large fuel stations right across the country. Common standards will make them easy to use, and ensure that drivers have a wide choice of charging points. One of the main reasons the sales of electric cars are increasing is that buyers can see the charging infrastructure taking shape around them. This Bill will speed up the development of that network.

There is also a revolution happening on the railway. We are making excellent progress with HS2, Britain’s new high-speed rail network. HS2 will be the backbone of the national rail system, connecting our major cities, transforming capacity across the railway, and freeing up space for new commuter services on existing lines. HS2 is not just a new railway; it is an investment in our economic prosperity for the next half century and more. It will be a powerful catalyst for rebalancing our economy, spreading growth that for far too long has been concentrated in London and the south-east.

The new Bill announced last week will give us the powers to build and operate the next stage of the line from the West Midlands to Crewe. It is a crucial section of the project. Not only will it reduce journey times from London to Manchester and Crewe, it will speed up journeys to places such as Liverpool, Preston and Glasgow. With cross-party support and a programme that remains on time and on budget, construction of phase 1 will begin soon. We expect to deposit the new Bill covering the West Midlands to Crewe route in Parliament by the end of this year.

High-speed rail may be the biggest transport scheme of this generation. However, an even bigger revolution is taking place above us—in space. In the new economic space race, Britain is a strong competitor. The space industry Bill announced by Her Majesty last week has a clear purpose: to make Britain the most attractive place in Europe for commercial spaceflight; to put British business, engineering and science at the forefront of space technology; and to offer our world-leading, small satellite companies low-cost, reliable access to space. It will also generate opportunities for tourism.

While I am sure that most noble Lords would probably prefer two weeks on a cruise ship to floating in sub-orbital weightlessness for half an hour, there is in fact lots of demand for space tourism. The UK space industry is already worth £13.7 billion to our economy, and employs more than 38,000 people. This Bill will help us to achieve our goal to grow our share of the global space market to 10% by 2030. We want to be the first country to establish commercial spaceport operations in Europe. However, we need to move quickly to achieve our objectives. That is why this Bill is so important and we expect its First Reading to take place shortly. It will help provide the legislation required for launches and flights from UK spaceports, giving us new powers to license a wide range of commercial craft, including vertically launched rockets, space planes and satellites. Any site that meets the regulatory requirements will be able to apply to become a spaceport. We have already had strong interest from regions across Britain wanting to benefit from this exciting new market.

Finally, my department will also deliver a Bill to improve protection for holidaymakers. This will update the ATOL scheme so that it can keep pace with changes in the online travel market and UK-established companies can sell more easily across EU borders.

Her Majesty’s most gracious Speech also featured a number of important Bills and measures that the Department for Business, Energy and Industrial Strategy will be taking forward. The nuclear safeguards Bill will enable us to implement a domestic safeguards regime when we leave the EU Euratom treaty. This will allow us to meet our international obligations. We are bringing forward proposals to ensure that critical national infrastructure remains protected, so that foreign infrastructure ownership does not undermine our security or essential services.

We will strike the right balance between protecting national security and remaining a global champion of free trade. The Government also want to ensure fairer markets for consumers, so we will publish a Green Paper that will closely examine markets that are not working in the interests of consumers.

Let me be clear: we are firm believers in the market economy. It is the private sector, operating through a competitive market economy, that has delivered much of the growth that we have seen since 2010, but it is our job to make sure the system is working for the benefit of consumers. In particular, while progress has been made in recent years to improve competition in the energy retail market, it is clear that industry needs to do more. We expect energy suppliers to treat their customers in the same way as other competitive service sectors, so we will act where necessary. This will include bringing forward measures to help tackle unfair practices in the energy market so that energy bills can come down. A smart meters Bill will also help us complete the rollout of smart meters, protecting consumers and leading to £5.7 billion of net benefits to Britain. Smart meters will not just put consumers in control of their energy use, helping them to avoid wasting energy and money, they will end estimated billing and help customers to use smart pre-payment.

As I mentioned, the Queen’s Speech also confirmed the Government’s commitment to increasing the national living wage—specifically, increasing it to 60% of median earnings by 2020, then maintaining it in line with median earnings until the end of this Parliament. The Queen’s Speech also set out the Government’s intention to enhance rights and protections in the modern workplace, informed by Matthew Taylor’s review of modern employment practices.

I turn to the environment and agriculture. Agriculture contributes £8.6 billion to our economy and employs 1.5% of the workforce, so it is important that we support the industry and provide a strong foundation for future growth. The EU’s common agricultural policy, under which we have been operating for the past 44 years, has been an expensive failure. It is a system that provides financial support to millions of farmers across Europe to boost productivity, which accounts for around 40% of the total EU budget at €58 billion a year, and has been widely criticised for creating artificially high food prices throughout the European Union. Leaving the EU presents us with a great opportunity to renew our agriculture policy so that it supports farmers in a targeted and more effective way, while also achieving better value for money for hard-working taxpayers. Our vision is for a productive and competitive UK agriculture sector, supplying products of the highest standard to the domestic market and increasing exports abroad. At the same time, we will improve our environment, so that we can leave a better environment to the next generation than the one we inherited. The agriculture Bill will provide stability and certainty for the farming industry. It will enable the Government to support farmers to produce and sell more great British food, and in a more sustainable way. It will also help us deliver the same cash total fund for farm support until the end of the Parliament.

A fisheries Bill will be introduced to allow us to regain control of the UK’s exclusive economic zone and set UK fishing quotas once we have left the EU. This will provide a basis for us to secure a fairer share of the market, and greater economic benefit from our fish stocks. It will help a new generation of fishermen, as well as preserving and increasing our stocks, and it will support our coastal communities while securing the best possible deal for the UK fishing industry. We will no longer be bound by the common fisheries policy and will become an independent coastal state. But we will, of course, still meet our international obligations and co-operate with other coastal states in the management of our waters.

The gracious Speech sets out a clear direction for the future of Britain: a fairer, more prosperous and self-determining future as we leave the European Union, but also a more global future—one in which we build new relationships and trade agreements around the world, and where the talents and innovation of our own people and businesses can shine. I have set out how our legislative programme will help us meet those ambitions, and now I look forward to hearing contributions from all around your Lordships’ House.

Rail Devolution: London

Lord Forsyth of Drumlean Excerpts
Tuesday 20th December 2016

(7 years, 4 months ago)

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Lord Ahmad of Wimbledon Portrait Lord Ahmad of Wimbledon
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I believe that the noble Lord is referring to a separate franchise—that of Southern. I have already spoken on that matter, where we are moving forward in practical terms in trying to address some of the issues. As noble Lords know all too well, the point remains that the structural issues on the Southern network cannot be addressed as long as we see this level of unprecedented and, in my view, unnecessary strikes currently taking place.

Lord Forsyth of Drumlean Portrait Lord Forsyth of Drumlean (Con)
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My Lords, does my noble friend not think it extraordinary that, at a time when the travelling public are disrupted by strike action and when union leaders talk about trying to bring down the Government by making people’s journeys at Christmas impossible, all the Opposition can talk about is the administrative arrangements for London transport?

Lord Ahmad of Wimbledon Portrait Lord Ahmad of Wimbledon
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What my noble friend said will strike a chord with the travelling public. I have said much the same at this Dispatch Box on what we are seeing in terms of strike action. Let us be absolutely clear: my right honourable friend the Secretary of State not only met with one of the unions specifically but also wrote to the unions asking them to come to the arbitration service. The level of meetings that took place was based on that initiative my right honourable friend took. I agree with my noble friend that it is about time that the unions got back to the table and resolved the dispute so that we can challenge the wider infrastructure issues on the network.

Railways: East Coast Rail Franchise

Lord Forsyth of Drumlean Excerpts
Tuesday 28th October 2014

(9 years, 6 months ago)

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Baroness Kramer Portrait Baroness Kramer
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My Lords, it is certainly true that other countries have chosen to invest and own companies across a wide range of industries. This is a particularly difficult industry in which to do that. Its fixed costs are extremely high. It costs something like £7 million to £10 million to put in a bid, with no assurance of winning. It is certainly a high-risk industry and the margins, as the noble Lord will know, even for an effective and profitable company, are quite fine. It is an entirely valid decision not to enter into actually running companies when there are private options that have delivered very successfully up and down the country.

Lord Forsyth of Drumlean Portrait Lord Forsyth of Drumlean (Con)
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Surely my noble friend would recognise that the whole point of competitive tendering is to get the best value and the best deal for the taxpayer. If she is right that the state-owned company would not be able to compete, why is that a reason to exclude it from the process?

Baroness Kramer Portrait Baroness Kramer
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Again we can see the complexities of a state-owned company being involved in this. Would we give it preferential financing or would it go out on the market? Let me make this point: do we want to set up a company and pay its senior management very high fees for the possibility that, with bids ranging from £7 million to £10 million apiece, it might eventually achieve a franchise? We have a long history and I have to suggest that the history of companies run over the long term by the UK Government has not been one of outstanding success. We know that we have very successful franchises across the country, so let us take advantage of them to make sure that we get the best opportunities for the many passengers using these services.

Queen’s Speech

Lord Forsyth of Drumlean Excerpts
Thursday 5th June 2014

(9 years, 11 months ago)

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Baroness Noakes Portrait Baroness Noakes (Con)
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My Lords, four years ago, the Government inherited an economy on its knees. We had emerged from the most severe recession in post-war history. We had a big structural deficit. Government debt was more than 60% of GDP and rising. The previous Government had no plans to deal with this. They left an uncompetitive economy and tax system with a corporation tax rate of 28% and a top personal rate of 50%. It has been a long haul over the past four years to restore the economy to something that resembles health. The job is far from over, but there is a lot to rejoice about. The economy really is growing again—and at the fastest rate in the developed world. Unemployment is falling rapidly and real disposable incomes are starting to rise again. I am sure that the Benches opposite will join me in rejoicing that manufacturing industry, which suffered so much under the previous Government, is now firmly on an upward trajectory. My right honourable friend the Chancellor was wise to reduce the deficit largely through expenditure reductions rather than taxation, and he was wise to ignore the Keynesian sirens calling for more spending and more borrowing.

On the downside, the deficit remains stubbornly high and it is not a cause of celebration that the debt to GDP ratio will peak at nearly 80%. There is still an absolute necessity to continue to bear down on government spending. The Government have played a difficult hand very well, but there are of course some things that they could have done better. Our energy policy is still a mess. We have the self-inflicted wounds of environmental policies that load costs onto British businesses and on to vulnerable consumers. We need some common sense on how much this country is prepared to pay for green luxuries. I endorse everything that my noble friend Lord MacGregor of Pulham Market said about the potential for shale to transform our economy, but dealing with underground access to shale resources in the Infrastructure Bill is but a small part of what the Government need to do to get this moving. Like my noble friend, I look forward to the government response to the report of the House of Lords Economic Affairs Committee on this.

There is also much work still to do on reducing regulatory burdens. There is only so much that we can do in the UK, so we will have to take the fight to Europe—and the sooner we get into serious negotiations over our membership of the EU and its terms the better.

However, my main topic today is taxation. It was wonderful to hear in the gracious Speech that the Government would continue to cut taxes. My right honourable friend the Chancellor has done much good work already. I will single out two things in particular: the path to the lowest rate of corporation tax in the developed world and the reduction in the top rate of income tax. However, the Government get few points for tax simplification. The Office of Tax Simplification was a great idea and has done excellent work, but its recommendations have not all been heeded, and more than 2,000 pages of complex tax legislation will have been added to our tax code by the end of this Parliament.

The Chancellor has shown his capacity for radical thinking with his excellent pension reforms, announced in this year’s Budget. I look forward to the pensions tax Bill delivering those reforms. What the country now needs is a similar reforming mindset applied to the tax system. I draw noble Lords’ attention to a substantial report on a single income tax, produced two years ago by the 2020 Tax Commission, which was sponsored by the TaxPayers’ Alliance and the Institute of Directors. It echoes the conclusions of work done by my noble friend Lord Forsyth of Drumlean’s Tax Reform Commission over eight years ago. The report recommended that most taxes should be abolished and replaced with a new single tax on income. This major simplification would replace the existing income tax, national insurance, corporation tax and various capital taxes including inheritance tax. For good measure, it would get rid of the detested air passenger duty.

The commission recommended a single 30% tax rate on income plus a total restraint on taxes as a percentage of national income of around one-third. The essential argument for a low-tax regime is that high taxes act as a drag on the potential of the economy. The 2020 Tax Commission estimates that its proposals would add over 9% to GDP over 15 years. Importantly, the annual growth rate would permanently be increased by around 0.4%. These potential prizes are too great to ignore.

The Tax Commission’s analysis included dynamic modelling carried out for it by the Centre for Economics and Business Research. This is the key. Many of us were delighted that the Chancellor used dynamic modelling to underpin the reductions in corporation tax last year and the recent cut in fuel duty—so far, so good. What we really need the Treasury to do is move towards using dynamic modelling as a way of life. It is good to use dynamic modelling for specific taxes but the Treasury should be using it to understand how to drive the tax system to support the whole economy. Traditional modelling methods will inevitably produce incremental rather than radical approaches to policy. If the analysis of the 2020 Tax Commission of a single low rate of tax is even half-true, the Treasury simply has to embrace it.

Of course, analysing the impact of a radical tax change is one thing and implementing it is another. It is not easy in an advanced economy such as ours to re-engineer the tax system in a short period of time. There have to be transitions to avoid destabilising the economy and harming individuals. There is the underlying paradox that if you take a long time over transition and overprotect the status quo, you will not see the benefits of higher growth, which is the aim. So there is a case for boldness.

I can see why the Government might shy away from wholesale restructuring, as proposed by the 2020 Tax Commission. It does seem pretty scary. But I do not understand why the Government are not pressing ahead with one key element of the tax commission changes: namely, merging national insurance with income tax. This has a growing body of support. The Office of Tax Simplification proposed it in its review of small business taxation; the Institute for Fiscal Studies supports it; and surveys of businesses show strong support.

Informed commentators know that national insurance is a tax in all but name, but the one thing that has managed to keep it alive is that it is the ultimate stealth tax. Gordon Brown knew that when he raised the extra 1%, allegedly for the NHS—and it seems that Mr Miliband is thinking about trying the same wheeze if he gets a shot at running the country. I find it extraordinary that the Exchequer Secretary has used the Beveridge notion of the contributing principle as the rationale for keeping them separate. Expecting citizens to contribute in return for qualifying for benefits is fine, but you do not need the fiction of a separate national insurance fund to achieve that. The time has come to be honest about national insurance. No one pretends that merging the two systems is a walk in the park. There are many legal and administrative hurdles to overcome. But the prize is great if we want a simpler tax system.

Lord Forsyth of Drumlean Portrait Lord Forsyth of Drumlean (Con)
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What would my noble friend do about the problem of pension income, which is not subject to national insurance?

Baroness Noakes Portrait Baroness Noakes
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I was about to say that the TaxPayers’ Alliance produced a very thoughtful report, which showed how a transition could be made within five years and could also protect the expectations of pensioners at the same time. There is a way of doing it. All I would say to my noble friend and to noble Lords generally is that it can be done—it just needs a Government with the will to do it.

High Speed Rail (London–West Midlands) Bill

Lord Forsyth of Drumlean Excerpts
Thursday 8th May 2014

(10 years ago)

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Lord Foulkes of Cumnock Portrait Lord Foulkes of Cumnock (Lab)
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My Lords, I also wish to take part in a debate on this. The Clerk of the Parliaments very kindly confirmed to me in an e-mail that this is a debatable Motion and therefore, we can discuss it. We are not discussing today the merits or demerits of HS2, of which I am in favour, as it happens. But this is a procedural Motion. When I saw that the noble Baroness, Lady Kramer, would be moving the Motion I wondered why. That is no disrespect to the noble Baroness who is a very good Minister, but surely this is a procedural Motion which should be dealt with if not by the Leader of the House then certainly by the Chief Whip so that we can have a proper explanation of its implications.

I take part in the Lord Speaker’s outreach programme. I go to schools and talk about what this House does—that we consider and amend legislation, hold the Government to account and debate the issues of the day. I must say that I am beginning to feel a wee bit of a fraud in terms of holding the Government to account when we have just returned from a four-week Easter Recess. Whatever the Leader of the House said earlier, it was much longer. I have never known a four-week Easter Recess, either when I was in the other House or in this House. Then, from next week, we will be off for another three weeks. That does not seem to me to be the way to do things.

Noble Lords may wonder what this has to do with a carry-over Motion. What I want to point out is that this Motion is typical of what the Government are doing in trying to sideline Parliament. Increasingly, they are treating Parliament as a rubber stamp. Noble Lords will see that the heading for this business is:

“Business expected to be brief”.

The Government want to rush it through, yet it is debatable and we can discuss it. As my noble friend Lord Richard just said, it raises issues of particular significance. All carry-over Motions are significant because legislation can be moved from one Session of Parliament to another. But having looked at previous carry-over Motions, as I understand it, this one is unique and of particular significance because it will carry a Bill over not just from one Session of Parliament to another, but from one Parliament to the next. The noble Lord, Lord Cormack, who understands these issues, is nodding wisely.

I have some questions which I hope the Minister will be able to answer. I warned her yesterday that I would put these questions to her. First, why did she not feel it right to give the House an explanation at the start? Increasingly things are being moved and passed on the nod. Surely, when it is a matter of significance, the Minister should feel obliged to get up and explain why something is being done. It may be that one or two people in the usual channels understand what this is about, but with respect, every Member of the House should be made aware of what is happening.

Secondly, I hope that the Minister will explain why there is such a rush. Why do we need it now? I first saw this when I looked at the future business of the House online at the end of the Easter Recess. Many colleagues have told me that they did not see it until they arrived here on Tuesday, only two days ago. That is not enough time for Members to consider its implications properly. Why the rush? Could this not be held over? Does the Minister really need to push it through today?

The most important question of all is this: what are the implications? It is the question that was put by my noble friend Lord Richard. What kind of precedent will it set? Can this kind of procedure be used for any Bill or just for Bills dealing with infrastructure projects such as HS2?

Lord Forsyth of Drumlean Portrait Lord Forsyth of Drumlean (Con)
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I am most grateful to the noble Lord. Can he tell me whether he has asked his own Front Bench these questions? Surely his colleagues have agreed to this procedure? Why does he have so little faith in the judgment of his own colleagues?

Lord Foulkes of Cumnock Portrait Lord Foulkes of Cumnock
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I have great respect for the noble Lord, Lord Forsyth, and I am really grateful to him for that intervention—really grateful—for two reasons. The first is that I spent an hour yesterday with the Leader of the Opposition, the Chief Whip and others discussing this very issue. It was also discussed at our group meeting last night. Our Chief Whip said that he was not consulted about the tabling of this Motion. Others can confirm that he said that at our meeting. So I hope that we will get some answers to these questions.

When we discuss the future of the House of Lords—our group is considering a report on changes to the House—I hope that more and more Members will feel that we have an obligation to question and challenge some of the things that are simply put on the table for us to rubber stamp. We must show that the Executive and the Government are going to be scrutinised by Parliament. I can then go into schools as part of the Lord Speaker’s outreach programme and talk with clarity and honesty, feeling that I am absolutely right when I say that Parliament does have a real job in scrutinising the Executive.