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.