Economic Growth

Lord Booth Excerpts

Wednesday 11th June 2025 Lords Chamber

Asked by

[Lord Booth]

To ask His Majesty’s Government what progress they have made on their economic growth mission, as set out in their Plan for Change (CP 1210).

[Lord Booth (Con)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper, and I apologise to the House because I have only half a voice today.

[The Financial Secretary to the Treasury (Lord Livermore) (Lab)]

My Lords, the Government’s plan for change set out three metrics for the economic growth mission: first, that we will aim for the highest growth in the G7—we are currently the fastest-growing economy in the G7; secondly, higher living standards in every part of the country—living standards are now forecast to grow more than four times faster than in the previous Parliament; and thirdly, rising GDP per capita. Whereas this fell in the previous Parliament, GDP per capita is now forecast to rise by 5.6% in this Parliament.

[Lord Booth (Con)]

I thank the Minister for his reply. On GDP growth, I doubt the 0.7% increase in the first quarter will be replicated later in the year. There is an old expression: one swallow does not make a summer. I suspect that that will be the case. Moody’s rating agency recently said that the Chancellor’s £25 billion tax raid on employers last October has already dented confidence in the British economy and it will weigh on growth very heavily in 2025. In fact, I believe that these policies which came into effect—

[Noble Lords]

Question!

[Lord Booth (Con)]

I will get to my question in a second. I believe the policies that came into effect in April will affect the British economy like an earthquake. My question is this. I live in south Cornwall, in a small-harbour fishing village. We no longer have any fishing in that village. There is fishing in Mevagissey, Looe and Newlyn. Will the Minister explain to the House how he expects the fishing industry to grow over the next 13 years?

[Lord Livermore (Lab)]

I am grateful to the noble Lord for eventually getting to his question, but I am sorry that he chose to talk down the economy in the way that he did. I remind him that, when this Government took office, the UK was ranked seventh out of seven G7 economies projected for 2025. We currently have the fastest-growing economy in the G7. He talked about a report; let me give him another report. When the IMF last week upgraded the UK’s growth forecasts, it said that the Government’s fiscal strategy was striking a good balance between supporting growth and safeguarding fiscal sustainability, that the growth mission focuses on the right areas to lift productivity, and that our spending plans are credible and growth-friendly—spending plans that his party opposes. His party has opposed every single measure that we have taken to grow the economy.