Autumn Budget 2025

Baroness Curran Excerpts

Thursday 4th December 2025 Lords Chamber

[Baroness Curran (Lab)]

My Lords, I begin by offering my congratulations to the right reverend Prelate the Bishop of Portsmouth on his inspiring maiden speech. In the short time I have, I want to make two key arguments. First, the Government are right to tackle the fundamental challenges that were undermining the British economy, leading to years of sluggish economic growth. Secondly, they are also right to invest and innovate through key measures such as building infrastructure, reforming planning, developing new skills, investing in public services and taking measures to tackle the cost of living—because as this Government know, investing in public services helps an economy grow.

We have paid a heavy economic price for the policies of the last Government. According to the House of Commons Library, prolonged austerity has weakened the UK’s economic growth by suppressing demand, reducing investment and eroding public services. According to the OBR—although I note that many noble Lords have said that this is a critical underestimate—Brexit has permanently reduced UK GDP by around 4%. I firmly contend that in this Budget, the Government have got the balance right between addressing these legacy challenges and moving forward to growth, stability and economic confidence.

That balance has been brought about by a number of measures: as has been mentioned, the £150 off energy bills to tackle the cost of living, but also crucial investment in skills and apprenticeships, with £820 million set aside for a new youth guarantee of employment. There are to be increases in pay after decades of wage restraint, leading to an increase in annual earnings for about 2.4 million workers, thereby stimulating demand. The measures go further, encouraging innovation investment opportunities through increased budgets for UK research and greatly improved regulation of the nuclear industry, and opening up new development across the country. Sadly, that is not an option available for those of us in Scotland, as the SNP Government have taken the shortsighted decision to block nuclear power development, cutting Scotland off from huge opportunities for investment, jobs and skills.

I am sure the Minister will know that Anas Sarwar, Labour’s leader in Scotland, has vowed to end the seemingly “economics-free zone” of the Scottish Government, and commissioned Professor Anton Muscatelli, former principal of Glasgow University, to report on how to stimulate growth in the Scottish economy. He called for

“greater coherence in policy design”,

better use of Holyrood’s levers to support regional strengths, and

“stronger collaboration between Scotland’s governments”.

I know that the Minister will support such collaboration, so I ask him to study and consider the recommendations in the Muscatelli report.

The Minister has had a lot of asks today, and I am sure he is going through the list, but may I add one more? Can he also consider the representations of Prosper, an organisation in Scotland that brings together key stakeholders, including industry, seeking to promote economic growth? It has many insights and some direct requests—for example, that UK Government departments involve Scottish industries directly in developing targeted sector plans.

In conclusion, we should be clear in this House about the achievements of the Chancellor. She has cut NHS waiting lists, child poverty, inflation and borrowing costs. This Government are innovating and reforming the economy to ensure the stability and growth from which all citizens can benefit.

OBR Forecasts

Baroness Curran Excerpts

Monday 1st December 2025 Lords Chamber

[Lord Livermore (Lab)]

The noble Baroness seems to know very well what went on behind closed doors and what the Prime Minister and Chancellor said to Ministers in various private meetings. I am afraid that I do not think that she does know what went on behind closed doors. As I have said already, on 4 November the Chancellor had £4.2 billion of headroom before those policy choices were accounted for, meaning that she would have a deficit of £2.7 billion before any additional headroom was built.

[Baroness Curran (Lab)]

My Lords, we have had much discussion of the process in these questions so far, but can my noble friend the Minister remind the House that it is the substance of the Budget that matters much more for families and businesses throughout this country? The doubling of the headroom in the OBR has allowed the Government to provide for financial resilience in the country, which has been welcomed by the markets, because they understand that that is a vital ingredient for a stable and strong economy.

[Lord Livermore (Lab)]

I am very grateful to my noble friend for reminding us that, at the end of the day, it is the substance of the Budget that matters. It is worth reminding ourselves what the Budget and the Chancellor achieved. She cut energy bills by £150, cut NHS waiting lists, cut child poverty, cut inflation and cut borrowing every year, faster than any other G7 economy. She more than doubled the headroom and protected record investment, and she supported faster cuts in interest rates.

GDP Per Capita

Baroness Curran Excerpts

Monday 20th October 2025 Lords Chamber

[Baroness Curran (Lab)]

My Lords, can my noble friend the Minister explain to the House the role of record levels of public investment and how they contribute to economic growth? In his answer, lest we forget, can he remind the House of the financial legacy that we inherited from the last Government—particularly the amount of the financial black hole?

[Lord Livermore (Lab)]

My noble friend is very generous in inviting me to mention the £22 billion black hole. She is correct that capital spending is a significant driver of growth in our economy. The OBR estimates that the increases in capital spending that we have seen have increased growth by 0.14% over five years, 0.43% over 10 years and 1.4% in the long term. It is very regrettable that the party opposite opposes those capital spending plans.

Trade Negotiations

Baroness Curran Excerpts

Tuesday 13th May 2025 Lords Chamber

[Baroness Gustafsson (Lab)]

I thank the noble Lord for his question. I think he knows that yesterday I commented that I would follow up in writing with the specifics on that, and I will endeavour also to include the noble Lord in that response. As I commented yesterday, my parliamentary knowledge is thin but building, but it is not yet at Article XXIV of the GATT.

[Baroness Curran (Lab)]

I say to my noble friend the Minister that I warmly welcome this Statement, most particularly its emphasis on the negotiations with India in respect of the Scottish whisky industry and the benefits it will bring for that industry but also, more broadly, for the Scottish economy. Will my noble friend the Minister confirm that these negotiations will reduce tariffs on Scotch whisky from 150% to 75% at entry, moving to 40% after 10 years? Given that Labour’s team has succeeded in these negotiations where the previous Tory Government patently failed, does the Minister think it appropriate that the team should perhaps celebrate with a wee dram? If she needs any advice on what Scottish whiskies she could partake in, I am more than happy to provide that introduction.

[Baroness Gustafsson (Lab)]

That is wonderful to hear—a worthy celebration indeed. Of course, I am delighted that, as a result of this deal, Scotland will benefit from significant tariff liberalisation for a whole variety of its exports, which includes whisky, for which the current 150% tariff will reduce to 75% from day one of the deal, reaching just 40% after 10 years. The Scotch Whisky Association described the deal as

“a once in a generation deal and a landmark moment”

which is “transformational” for Scotch whisky exports.