Financial Stability: Private Equity Firms

Lord Foulkes of Cumnock Excerpts

Wednesday 13th December 2023 Lords Chamber

[Baroness Vere of Norbiton (Con)]

I accept that the AI regulatory system is still in development, but that is not unique to the United Kingdom. The AI summit convened by the Prime Minister made good steps in the right direction.

[Lord Foulkes of Cumnock (Lab Co-op)]

Can we send our deepest sympathies to Sir Jacob Rees-Mogg on the demise of Somerset Capital Management, and hope that this will now enable him to spend more time looking after his constituency?

[Baroness Vere of Norbiton (Con)]

I am not aware that there was a question there—but if the noble Lord wants to send his sympathies, I am sure they will have been heard.

Bank of England: Interest Rate Policy

Lord Foulkes of Cumnock Excerpts

Wednesday 12th July 2023 Lords Chamber

[Baroness Penn (Con)]

Much as noble Lords continue to ask me to comment on the conduct of monetary policy by the Bank of England, as I said, the Government do not comment on the conduct or effectiveness of monetary policy. We continue to support the MPC as it takes action, and we focus on making the tough decisions necessary to tackle inflation.

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, does the Minister not realise that this mortgage rate misery comes on top of the huge increase in the cost of energy and the continued increase in food prices and other costs? How do the multi-millionaires who run this Government find out how ordinary people are affected?

[Baroness Penn (Con)]

The noble Lord does not reflect on the action that has been taken by this Government that has supported those who struggle most to meet the rising cost of living, with more than £90 billion of support last year and this year focused on those who need it the most, including the energy price guarantee, direct support with energy bills and cost of living payments worth hundreds of pounds to millions of families across the country.

Gross Domestic Product: Wales and the UK

Lord Foulkes of Cumnock Excerpts

Thursday 6th July 2023 Lords Chamber

[Baroness Penn (Con)]

It is hard to tell from the other side whether there is a success story or not when it comes to Wales. I think that the best success comes when the UK and Welsh Governments work together in the interests of the people of Wales, and the record that we can see is testament to that.

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, can I ask a question where I think, for once, the noble Baroness, who is an excellent Minister, might be able to give me a positive answer? The Advocate-General for Scotland has agreed, at my request, to instruct his officials to investigate ultra vires expenditure by the Scottish Government. That is a great step forward. Can the Minister give an assurance that her officials in the Treasury will work co-operatively with the Advocate-General’s officials?

[Baroness Penn (Con)]

I can give the noble Lord that assurance.

Income Tax Threshold

Lord Foulkes of Cumnock Excerpts

Tuesday 4th July 2023 Lords Chamber

[Baroness Penn (Con)]

My noble friend is absolutely right. That is why, when we have looked at what support we can put in place for people, our number one aim is not to make the problem of inflation worse. We were able to do that through announcing the mortgage charter, which will provide important relief to people struggling with higher interest rates while not making the problem worse.

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, is the Minister aware that the noble Lord, Lord Balfe, and others are lucky that they do not live in Scotland, where middle-income taxpayers pay even more tax, which the Scottish Government then use in areas where they have no responsibility—such as a Minister for Independence, serviced by 20 UK civil servants and paid for by our taxes? It is about time the Treasury did something about that. When will the Government do it?

[Baroness Penn (Con)]

I absolutely agree with the noble Lord that the UK income tax system is more competitive than the Scottish system and that we deliver better value for money.

VAT: Building Repairs and Maintenance

Lord Foulkes of Cumnock Excerpts

Wednesday 19th April 2023 Lords Chamber

[Baroness Penn (Con)]

My noble friend raises an important point. He is right that the renovation of existing properties can be an energy-efficient way to bring them back on to the market. There are special reduced rates of VAT for the renovation of properties that are converted either from commercial to residential use or from one residential use to another, if they are renovated after a period of two years without use. A temporary zero rate of VAT applies to installations of qualifying energy-saving materials, such as insulation, to address some of the points my noble friend raised.

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, the noble Lord, Lord Swire, has just reminded me that, the last time I intervened with the Minister, I asked her to get Treasury officials to intervene in Scotland to stop the improper expenditure—she said she would not. Will she rethink that in light of recent events?

Arrivals Duty Free at UK Airports

Lord Foulkes of Cumnock Excerpts

Thursday 30th March 2023 Lords Chamber

[Baroness Penn (Con)]

My Lords, I reassure the noble Lord that the Government fully understand the contribution that tourism makes to our economy. To pick up his point about the Covid pandemic, through the pandemic the UK Government provided over £37 billion to support the tourism, leisure and hospitality sector in the form of grants, loans and tax breaks. Since then, the Government have contributed to various successful campaigns to stimulate recovery, including the £10 million National Lottery Days Out scheme and efforts by VisitBritain to deliver its international marketing campaign.

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, following the question from the noble Lord, Lord Vaizey, who mentioned the Scottish National Party, is the Minister aware that in Scotland we have had a Minister for Tourism—which includes what we are talking about in this Question today—since 1999, but the current Government of Scotland have made no such appointment? Instead, they have appointed a Minister for Independence, when the Prime Minister has rightly ruled out a referendum. As a Treasury Minister, will she get her officials to look into this unauthorised expenditure by the Scottish Government?

[Baroness Penn (Con)]

My Lords, I will say that it shows that the Scottish Government’s priorities lie in the wrong place, instead of seeking to address the priorities of the people of Scotland, whether it is tourism or improving their health and education systems. I think the people of Scotland would welcome a greater focus on those issues and less of a focus on something on which we recently had a referendum that settled the issue.

Carers in England

Lord Foulkes of Cumnock Excerpts

Monday 6th March 2023 Lords Chamber

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, the Treasury does not seem to understand that by spending more money in one area, you can save even more in another area. If we spend more money in care homes, we can save a lot of money in the health service. As my noble friend Lord Haskel said, if we spend more money on carers, they can go out to work and help the economy. I have great faith in the noble Baroness. She has a lot of experience and is very persuasive. Will she go back to the Treasury and try to persuade it of this truth?

[Baroness Penn (Con)]

Perhaps I can persuade the noble Lord to have a little more faith in the Treasury’s attitude towards these things. I set out in an earlier answer the additional money that is going into social care this year and next, which was announced alongside healthcare spending. But the amount that we were putting into social care was precisely to acknowledge the role it plays, for example, in reducing delays to discharge that are affecting our health system.

Alcohol Duty Bands

Lord Foulkes of Cumnock Excerpts

Thursday 12th January 2023 Lords Chamber

[Baroness Penn (Con)]

My Lords, one of the big changes that we are making to alcohol duties is to ensure that higher-strength alcohol is taxed at a higher rate. This puts the points that the noble Lord makes at the heart of our approach. The normal process is to review alcohol duties on a yearly basis and take a decision in the round, and that will continue.

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, what discussions have the Treasury and the UK Government had with the Scottish Government, who clearly have an interest in this in relation to two aspects—one being minimum-unit pricing, which has not had the desired effect that the Scottish Government expected, and the other being their consideration of implementing a tax on whisky producers in Scotland to raise money to cover some of the expenditure of the Scottish Government?

[Baroness Penn (Con)]

My Lords, the Government have regular dialogue with the Scottish Government—indeed, the Prime Minister is there today. I agree with the noble Lord that the minimum-unit pricing approach has not always had the desired effect. The UK Government’s position is to address this through the level of duties, and relating that to the strength of alcohol. That is the better approach, and one that we can take now that we have left the EU.

Income Inequality

Lord Foulkes of Cumnock Excerpts

Thursday 21st January 2016 Lords Chamber

Asked by

[Lord Foulkes of Cumnock]

To ask Her Majesty’s Government whether they intend to commission research into the impact on social cohesion of income inequality.

[The Commercial Secretary to the Treasury (Lord O'Neill of Gatley) (Con)]

My Lords, income inequality is falling and is close to its lowest level since the mid-1980s. The Government have taken action to reduce inequality and poverty by boosting the incomes of those in work through the new national living wage, by taking 3.8 million working-age individuals out of income tax since 2010 and by reducing worklessness, with more people now in work than ever before.

[Lord Foulkes of Cumnock (Lab)]

My Lords, with FTSE 100 chief executives—only four of whom actually founded their companies—earning 183 times the median earnings for a full-time worker, and with the chief executive of HSBC, for example, receiving £7.5 million in the year that its profits went down by 17%, does the Minister agree that it is a miracle that there is not more social unrest in this country? Will the Government consider setting up a commission to make recommendations on ways in which this terrible income inequality can be dealt with?

[Lord O'Neill of Gatley]

My Lords, as I suggested in my opening formal comments—and I am happy to provide plenty of data to back up the substance because it is so wide—true measures of income inequality, whether in terms of disposable income or of what is called original income, have for many years shown a decline in income inequality. How chief executives are remunerated by their companies, particularly in the quoted sector, depends on the decisions of their boards and shareholders.

Income Per Capita

Lord Foulkes of Cumnock Excerpts

Tuesday 14th July 2015 Lords Chamber

[Lord O'Neill of Gatley]

My Lords, while again I use this opportunity to encourage all Members to read our brilliant document, I shall also make reference to forces that I believe are important from my previous life on the topic of sustainable development and GDP per capita, one of which is indeed the performance of a country’s trade balance, particularly its export performance. That is something that our private sector needs to take the lead on. All that a Government should do is to make sure that it has the right environment to allow it to flourish.

[Lord Foulkes of Cumnock (Lab)]

My Lords, this is no laughing matter. Can the Minister explain to the House how the proposed changes in child tax credits will affect the per capita income of those involved?

[A noble Lord]

It is on page 64.