Budget Statement

Lord Risby Excerpts

Wednesday 3rd November 2021 Grand Committee

[Lord Risby (Con)]

My Lords, I applaud the right reverend Prelate on her valedictory speech, which I thought was a wonderful combination of common sense and compassion.

A year ago, perhaps the only way to have had any forecasting credibility regarding the environment for the recent Budget would have been to say nothing at all. Nobody could possibly have forecast such a rapid economic rebound, with labour shortages, rising wages and inflation, higher property prices and positive stock market valuations, and even some recovery in the pound sterling. It is all precisely the reverse of what every observer and commentator expected.

There are now clear Budget pointers to try to create a more enduring economic base. Historically, this has been best understood in Europe by Germany, which since the 19th century has had a sophisticated and innovative training base that has substantially avoided the technical and vocational divide with universities that has existed here. The lifetime skills guarantee put in place last year will upgrade vocational and technical education. Upskilling our workforce is essential in diminishing our poor productivity performance, and now there is additional action with new, focused investment in apprenticeships and traineeships in this Budget.

It is to be regretted that we have some of the world’s finest educational institutions juxtaposed against millions of our fellow citizens who deserve and need more life opportunities. In this spirit, I particularly welcome the Multiply programme to improve basic mathematic skills.

It is perfectly true that despite overall real-terms spending increases over 10 years pre-pandemic, there were sectors in our country which were put under constraint and pressure, but we mercifully entered the Covid pandemic with our finances in near balance, and we can be grateful that this was the case—otherwise the comprehensive, considerable support by the Government during the pandemic would simply have been impossible.

I note the new fiscal rules which have been introduced in this Budget in an attempt to give assurances and to restrain any excessive public spending and the national debt by stipulating limits, as in the Charter for Budget Responsibility. Some of your Lordships may be sceptical about these sorts of objectives. I recall that a previous Chancellor introduced something called “golden rules”, which were in practice far from golden. However, there is a clear and necessary intention that underlying UK debt will be falling by the third year of the forecast period. Of course, rising interest rates and anaemic world or domestic economic activity could undermine this objective, but it makes absolutely clear that this will be, and has to be, a period of spending restraint which, we hope, can begin to assist in reducing our now high tax levels.

If we were to make some obvious observations about the structure of our economy, we would point to the dominance of our service sector, especially financial services, and our overall weak relative export performance historically. During the pandemic, the British economy suffered because of its overdependence on the service sector. The simple truth is that many countries are reluctant to open up foreign investment and activity by banks and insurance companies, for which we have particular expertise.

The noble Lord, Lord Fox, referred to the importance of the consumer, but the United Kingdom has had an economy disproportionately propelled by domestic consumption rather than exports overall. This calls for a change, and this is now being recognised. For a number of years, as one of the Prime Minister’s trade envoys, I have witnessed a transformation of our export efforts. This is critical and should involve no party-political divide. Today, UK Export Finance is successfully financing exports and even provides money for companies abroad to get financing as long as they purchase British goods and services. Happily, there is now much greater structural coherence with overseas aid and development in the Foreign Office and the success of our embassies in many countries in working with chambers of commerce. Now it is a sophisticated operation whereby it is easy to access British goods and services with backup and access through the Department for International Trade. Over time, all this will help to rebalance our overall economy. This is surely the lesson of the past two years. I welcome the announcement of an enormous increase in R&D to come and the much needed upgrading of our digital infrastructure to enhance the base for better export performance and to help commercialise our inventive capabilities.

Many of our trade agreements have perforce been continuity agreements, but they are an important start to boost commercial and industrial activities in geographical areas of higher growth. The innovation and entrepreneurship specifically targeted in this Budget, such as the new British business bank and the global Britain investment fund, coupled with a more liberal visa regime to attract more highly qualified people to rapidly growing businesses, indicate the need and seriousness of the commitment to regenerate our economy. My noble friend may wish to elaborate on that.

It is worth noting that for the first time the combined GDP of the Commonwealth, which has so much potential, exceeds that of the EU. If we accede to the CPTPP then this grouping of countries will have an ever greater share of global trade, showing the clearly evolving patterns of global trade and commerce.

Within the inevitable post-pandemic limits of any Budget, the Chancellor has attempted to give continuing support by increasing the national living wage, focusing on upskilling and stimulating new entrepreneurial activity and export promotion—a huge challenge indeed.

Budget Statement

Lord Risby Excerpts

Friday 12th March 2021 Lords Chamber

[Lord Risby (Con)]

My Lords, a year ago the OBR forecasted a horrendous rate of unemployment of 11.9%. It is now likely to be 6.5%—of course, that is bad enough. But, most fortuitously, our finances were virtually in balance when the pandemic struck, and we should simply remind ourselves that the lack of good budgetary housekeeping before the financial crash played its part in seeing unemployment rise to 8.5%.

We will bounce back quicker than many countries, assisted by high cash levels, but, most importantly, we must drive our trade and export capabilities. Every Member of your Lordships’ House should welcome the enormous efforts to do this and wean ourselves away from such traditional dependence on the British consumer. The 63 signed trade deals offer the prospect of forging trade relationships in faster-growing regions. A huge increase in UK export finance will help to facilitate this and export promotion extends to small and medium-sized businesses too. Surely the Commonwealth offers considerable potential for trade and investment. That really needs focus and attention; many of their leaders will be here for COP 26.

With our gigantic level of borrowing, in due course fiscal restraint will be imperative. That will mean, as announced, targeted tax rises. There are some inklings of higher interest rates emerging already. Thus, without real prudence we could just potentially face renewed financial pressures of severity. However, I hope that greater growth will provide an offset. Meanwhile, the so-called super-deduction will give an enormous incentive to invest for innovation and to modernise our industrial and technological capabilities, which would be very welcome. This Budget, in such enormously difficult circumstances, deserves our support.

Space Industry

Lord Risby Excerpts

Thursday 4th March 2021 Grand Committee

[Lord Risby (Con) [V]]

My Lords, first, I welcome the maiden speakers. The Sutherland spaceport will be the first spaceport in the United Kingdom, with the first launch as early as next year. I would be grateful to hear from my noble friend—and does he agree—that the demand for commercial, vertical and horizontal launch facilities is enormous. If so, have other sites been identified, boosting employment and revenues not only in Scotland but in the whole of the United Kingdom?

EU-UK Trade and Cooperation Agreement

Lord Risby Excerpts

Friday 8th January 2021 Lords Chamber

[Lord Risby (Con)]

My Lords, I very much hope that, as an independent entity, we can enjoy a positive and productive relationship with the European Union. Its prosperity is in our interests.

Our new status unlocks the capacity to embrace new trade and investment relationships. Of course, many of our 63 accords signed up to essentially replace existing EU trade agreements, but all offer expansion potential. For example, clear parameters have been agreed with Japan for regular meetings to examine expanding financial sector linkages. For the first time, the Bank of England, the Stock Exchange and HM Treasury are formally participating in this process. Japan is anxious to support our membership of the CPTPP, the trans-Pacific partnership, which it is chairing this year and to which we are soon to apply. It is worth noting that, in dollar terms, while the United States’ share of world GDP remained steady at 25% between 1990 and 2019, the EU’s fell from 30% to 20%. The pointers are obvious.

Many of your Lordships have underlined the necessity for us to obtain equivalence for our financial sector. My noble friend has reiterated our commitment, but the real competition for us, and indeed for any other financial sector, is New York and Singapore. So, for our unique financial sector, we must make sure that our interests are recognised—and indeed, in the interests of all of Europe.

Of course, our financial institutions will inevitably have increased their activities in the EU, but our financial sector coped brilliantly with the huge changes that occurred during the big bang, and it resurrected itself after the huge damage done by excess and the dysfunctional regulatory system that marked the financial crisis. Our financial sector should, and will, remain an irreplaceable asset for us and indeed for our neighbours.

Covid-19: Economy

Lord Risby Excerpts

Thursday 4th June 2020 Lords Chamber

[Lord Risby (Con)]

My Lords, for a number of years I have been chairman of the Small Business Bureau, which works closely with the cross-party Genesis Initiative, supported by 115 trade associations. This afternoon, I will look at the SME sector specifically, which, pre-coronavirus, provided 60% of employment in the UK in 5.82 million businesses, with a turnover of £2.2 trillion.

I bring to your Lordships’ attention one clear measure to boost SME recovery: clamping down on late payment, which remains a scourge inhibiting cash flow. Pay UK has reported that late payment to SMEs before Covid-19 had risen steeply to £23.4 billion—up £10.4 billion from £13 billion owed in 2018. According to the Government’s payment practices website, 59% of the UK’s largest businesses pay their suppliers more than 30 days after invoices have been submitted. Nearly half report that 25% or more of the invoices they receive are not paid according to the terms agreed. If invoice payments are speeded up, the injection of cash flow into the economy will be a great boost.

I am fully aware that successive Governments have genuinely tried to deal with this problem and to ensure that government departments follow good practice. Indeed, before the onset of Covid-19, the Small Business Commissioner had begun to name and shame late-payers. However, can my noble friend urgently pick up the cudgels on this and make it a clear objective of government policy, as we all try to encourage necessary liquidity to get ourselves out of this economic crisis?

Cabinet Office: Efficiency and Reform Programme

Lord Risby Excerpts

Tuesday 15th July 2014 Lords Chamber

Asked by

[Lord Risby]

To ask Her Majesty’s Government what savings the programme of Efficiency and Reform, run by the Efficiency and Reform Group led by the Cabinet Office, has achieved since 2010.

[Lord Wallace of Saltaire (LD)]

My Lords, for the financial year 2013-14, the Cabinet Office Efficiency and Reform Group, which was set up in June 2010, helped government departments to make savings of some £14.3 billion. This follows £10 billion savings achieved in the financial year 2012-13, £5.5 billion in the financial year 2011-12, and £3.75 billion in the financial year 2010-11. These savings are calculated against a 2009-10 baseline.

[Lord Risby (Con)]

My Lords, the whole House will welcome the return to economic growth. However, given the continuing high deficit and debt, does my noble friend accept that living within our means and also controlling the cost of government remain vital objectives? Although I welcome enormously the progress that has been made so far, can my noble friend indicate any further progress on cross-departmental procurement activity and the effective involvement by SMEs in this whole process?

[Lord Wallace of Saltaire]

My Lords, that is a very broad question. Having seen this process close up, I have been struck by the extent to which Whitehall is a confederal system in which departments have to some extent resisted control from the centre. One of my favourite projects in this efficiency and reform scheme has been to centralise the collection of waste paper and build a closed loop system, from which we now save some £4 million—a small amount, but all contributing from building a much more effective system for recycling paper within Whitehall.

Mali

Lord Risby Excerpts

Tuesday 18th December 2012 Lords Chamber

Asked By

[Lord Risby]

To ask Her Majesty’s Government what discussions they have had with the Government of Algeria in relation to the situation in Mali.

[Lord Wallace of Saltaire]

My Lords, the UK has regular and frequent discussions with the Algerian Government on the situation in Mali. My right honourable friend the Foreign Secretary discussed Mali and the Sahel when he met Algeria’s Foreign Minister, Mourad Medelci, in London on 21 November. The Prime Minister’s special representative for the Sahel, Stephen O’Brien, MP, visited Algiers from 6 to 8 December for further discussions on the situation in Mali. Alistair Burt, the FCO Minister for the Middle East and north Africa, also discussed the Sahel with the Algerian Minister for the Overseas Community, Dr Belkacem Sahli, on 29 November.

[Lord Risby]

My Lords, I declare an interest as the Prime Minister’s trade envoy for Algeria. Given the appalling humanitarian and security crisis in Mali, does my noble friend agree that if at all possible there should be a regional solution to this problem, whether it is done diplomatically or by military means, to resolve what is an increasingly tragic situation? Does my noble friend further agree that, as the bulk of the income obtained by these terrorist fanatics is from the drugs trade and kidnapping, the resolute attitude of the Algerian Government, which is simply not to pay ransoms, should be applauded and appreciated?

[Lord Wallace of Saltaire]

My Lords, there has to be a regional resolution to this problem. The northern borders of Mali are artificial lines drawn on maps in largely uninhabited areas and these groups clearly go across them with a great deal of ease. The Tuareg, one of the main sets of tribes involved in the conflict, live in southern Algeria, south-western Libya, northern Mali, and so on. Therefore, there has to be a regional solution. This cannot be resolved by one or two states alone.