Spending Review 2025

Lord Northbrook Excerpts

Thursday 12th June 2025 Lords Chamber

[Lord Livermore (Lab)]

The noble Baroness referred to the review of the Green Book. Its six key findings were that there was insufficient emphasis on place-based objectives; ineffectiveness at assessing transformational change; continued overemphasis on benefit-cost ratios in decision-making; overly long and complicated guidance; inadequate capacity and capability across the public sector; and poor transparency around appraisal. We will set out the information that she requires in due course.

[Lord Northbrook (Con)]

My Lords, I particularly welcome the extra nuclear expenditure in the spending review. However—

[Captain of the King’s Bodyguard of the Yeomen of the Guard and Deputy Chief Whip (Baroness Wheeler) (Lab)]

I am sorry, but it is the turn of the Labour Benches.

--- Later in debate ---

[Lord Northbrook (Con)]

My Lords, I particularly welcome the extra nuclear expenditure in the spending review. However, the IFS director, Paul Johnson, said that his think tank was “baffled” by the Chancellor’s spending review. He said that the Chancellor will

“have all her fingers and all her toes crossed”,

but that OBR borrowing and growth forecasts are not downgraded for the autumn, which will

“almost certainly spark more tax rises”.

Can the Minister say whether that will be the case, or will there be more borrowing?

Secondly, supporting my noble friend Lady Altmann’s point about encouraging investment in UK-quoted equities, can the Minister give his views on how insurance companies and pension funds could be encouraged to devote more assets to the quoted areas of these markets?

[Lord Livermore (Lab)]

The noble Lord started by welcoming nuclear, and then seemed to say that the fiscal position was not what he would like it to be. I feel as if he needs to choose which lane he wants to be in in that respect. Will he support the measures we have taken and support the change to the fiscal rules, or support the spending? I am not sure that he can both oppose the way to raise the money but then support the way we are spending it.

On the second part of his question, we have set out very clear pension reform. We may not agree on that specific point, but I hope we agree on our objective, which is to get more pension fund investment into the UK economy.