Government Performance against Fiscal Rules

Debate between Viscount Hailsham and Lord Livermore

Tuesday 8th July 2025 Lords Chamber

[Lord Livermore (Lab)]

I normally try to agree with the noble Baroness, but that is one of the most extraordinary questions I have heard in these debates. She says that we should protect the NHS and then says that we should not have the main measure that is funding the NHS. If she wants the investment in the NHS, she has to stand up for the taxes that fund the NHS.

[Viscount Hailsham (Con)]

My Lords, on the fiscal rules, may I suggest the following? First, the welfare budget is far too high and must be substantially reduced. Secondly, economic growth is the only way out of our present mess. Thirdly, heaping taxes on primary wealth producers is highly counterproductive. Fourthly, if additional taxes must be imposed, they are best imposed generally, so that most people can understand the consequences of the policies they support.

[Lord Livermore (Lab)]

I may have agreed with the first half of the noble Viscount’s question; I am not sure I agreed with the second half of it. But, absolutely, the best way to repair the public finances is through economic growth. That is why it is our number one mission.

Winter Fuel Payment

Debate between Viscount Hailsham and Lord Livermore

Tuesday 10th June 2025 Lords Chamber

[Lord Livermore (Lab)]

I am grateful to my noble friend for his question. I pay tribute to him and to Age UK for the campaigning work they have done, not least to increase pension credit uptake. There was a record increase this year in the take-up of pension credit. An additional 60,000 people are now claiming pension credit, which is incredibly welcome.

We have listened to the concerns raised by Age UK, among others, about the level of the means test. We have now acted to ensure that, although we are still means testing the payment, we are raising the threshold to extend eligibility, so that this winter, more pensioners will be able to benefit from it. Nine million pensioners will now receive it—more than three-quarters of pensioners in total.

My noble friend is absolutely right about the party opposite: they are more than happy to spend the money, but they are less keen on raising it.

[Viscount Hailsham (Con)]

My Lords, would it not be better to incorporate the allowance into the pension, which is taxable, making it easier and fairer to administer?

[Lord Livermore (Lab)]

That may be one option, but it is not the option we have chosen.

Budget: Taxes and Borrowing

Debate between Viscount Hailsham and Lord Livermore

Monday 4th November 2024 Lords Chamber

[Lord Livermore (Lab)]

The noble Baroness is absolutely correct: we had to take some very difficult decisions on tax. We have acknowledged that the impacts of those measures will be felt beyond business. We have chosen to compensate the public sector with £5.1 billion, to ensure that there is sufficient funding to support our vital public services, including the NHS. On social care, the Government have provided a significant funding top-up to local government, which can be used for pressures, including adult social care.

[Viscount Hailsham (Con)]

My Lords, the Minister will know that the OBR has forecast that growth will peak at 2% in 2025 and thereafter fall back, after 2026, to around 1.5%. Does the Minister regard that as a satisfactory outcome of a Budget that imposed £40 million in taxes?

[Lord Livermore (Lab)]

It was £40 billion in taxes. The noble Viscount is right that growth was one of the biggest failures of the previous Government, and we are absolutely determined to turn that around. We cannot undo the damage of the past 14 years in just one Budget. The OBR has said that growth is largely unchanged over the Parliament; that is in the context of a Budget with some very difficult decisions on tax to clear up the mess that we inherited. Of course, we need to go further and we need to go faster. That is why we are doing planning reform, pension reform and skills reform, all of which will boost growth and none of which is included in the OBR’s forecast. Let us remember that, under the previous Government, we were the only G7 country with investment below 20% of GDP. Our growth rate was dismal by OECD standards. Their Brexit deal imposed new trade barriers on business equivalent to a 13% increase in tariffs for manufacturing and 20% for services. They crashed the economy, with interest rates peaking at 5.25%.