2 Lord Lennie debates involving HM Treasury

Mon 13th Nov 2023
Tue 10th Nov 2015

King’s Speech

Lord Lennie Excerpts
Monday 13th November 2023

(5 months, 2 weeks ago)

Lords Chamber
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Lord Lennie Portrait Lord Lennie (Lab)
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My Lords, I am not the first, and I certainly will not be the last, to say that this Government’s plan for this Session of Parliament is lacklustre. As my noble friend Lord Whitty said, the wide range of contributions that have been made by speakers throughout this debate proves the point of the insignificance of what is in this speech.

The Government have admitted what we have been saying from these Benches for years—that the country needs change. It is baffling that in this King’s Speech they have offered nothing but more of the same. It is the people of Britain who have been failed by this Government—a Government who have given up on governing, with a legacy of stagnant growth, skyrocketing mortgages, crumbling schools and hospitals and a cost of living crisis. This is the case everywhere you look: every family and business has been failed by the Government’s failed energy policy. On their watch, Britain was the worst-hit country in western Europe. It was this Government who were unprepared and slow to react.

While the consequences of that crisis are still being strongly felt, what is the Government’s response? It is in the King’s Speech—their new flagship policy, the Offshore Petroleum Licensing Bill. Astonishingly, the Energy and Net Zero Secretary has admitted that it will not take a penny piece off energy bills. It is a gimmick and a stunt, and one more thing that the Government have given up on. Do they accept the current levels of people’s energy bills? Insulating the 19 million cold and draughty homes in Britain could cut Bills by £2 billion, so why is that not in the King’s Speech? When the importance of energy independence could not be clearer, this Government’s solution is to double down on fossil fuels.

The National Infrastructure Commission recently found that moving away from fossil fuels would enhance energy security by reducing exposure to the impact of geopolitical shocks on prices. Do the Government disagree, or do they just not care? Why are they happy to reduce our energy security in this way? While producing our own energy may bring down energy imports, it is not necessary to do it in this way. Indeed, our oil and gas production has higher than average emissions compared with other producers and is twice as polluting as that of Norway, where most of our imports come from. That is where the Government’s focus should be: to increase energy security, increase energy independence and lower bills while meeting our climate commitments.

It was this Government’s own former net zero tsar, Chris Skidmore MP, who said:

“There is no such thing as a new net zero oilfield”.


Yet oilfields are the Government’s number one priority.

Finance Bill

Lord Lennie Excerpts
Tuesday 10th November 2015

(8 years, 5 months ago)

Lords Chamber
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Lord Lennie Portrait Lord Lennie (Lab)
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My Lords, I will focus my brief remarks on two aspects of the Bill: one is an amendment to it and the other is an omission from it. Both would improve this legislation—they are intended to be constructive and helpful—and both are important to many millions of people, working or otherwise. First, I want to raise the issue of inheritance tax, which the Minister highlighted in his comments. Secondly, I want to raise the so-called tampon tax.

Politics is about choices, and showing who we care about and how we connect with them are central to any party’s political strategy. The choices reveal much about the values that inform our politics and our policies, and the Tory Government have recently laid bare their current values. At this time, at this defining moment, when all the analysis and forecasts of the UK economy are best described as fragile—rather than the rather robust description given by the Minister—and the public realm is about to be subjected to 40% austerity cuts, the Government have decided that the time is right, never better, to increase the inheritance tax threshold to £1 million, so that those with the most, the wealthiest 10%, get a fighting chance at keeping the wolf away from their doors. The cost to the Exchequer is close to £1 billion.

Compounding this particular choice at this time is the fact that it is being put forward while the Chancellor is seeking to cut £1,300 on average from the income of the lowest-paid 3 million working people in the country. It is a somewhat hideous juxtaposition that the Government are putting forward. The richest 10% get a £1 billion give-away; the poorest working people lose £1,300 on average a year. It is compassionate conservativism laid bare. The rhetoric may be compassionate, but the reality is conservatism.

Instead of the somewhat false fury that emanates from Downing Street about some sort of constitutional crisis in this House because of the decisions your Lordships’ House took on the issue of tax credits, they should be thanking your Lordships for getting them out of a deep hole. It was getting deeper and deeper by the minute as Conservative Member after Conservative Member was in rebellious mood about the matter. We will seek a delay on this issue, deletion of this clause, and a delay at least until the Chancellor has achieved a current budget surplus before any further consideration of changes to the inheritance tax threshold.

On the tampon tax, until the recent exchanges in the other place, I have to admit that I was unaware that VAT was payable on tampons and sanitary towels. If I had to guess the odd one out or play spot the luxury item from among the following list—Jaffa Cakes, a game of bingo, a ticket to the zoo, or tampons—I do not think I would have picked tampons as being the specific luxury item. However, apparently that is the case. Jaffa Cakes are a necessity; tampons a luxury. As we have heard, the Prime Minister this morning set out his priorities for achieving reforms in the EU in advance of the forthcoming referendum. I had hoped that, when the letter to President Tusk was written, it would have contained a line seeking support across Europe to allow tampons and sanitary towels to be zero-rated in each member state. Had he done so, his legacy would be assured. We have had some words of support from government representatives, but nothing concrete is proposed. Incidentally, the cost of this change to this country would be no more than £15 million to the Exchequer. Labour will seek to add a clause to the Finance Bill to give effect to this.

I look forward to hearing the Minister’s response to these two items in his closing summary.