Lords statement on the spring meetings of the International Monetary Fund and the continued action that the Government are taking to strengthen our economic and energy security in response to the conflict in the Middle East.

Lords statement on the spring meetings of the International Monetary Fund and the continued action that the Government are taking to strengthen our economic and energy security in response to the conflict in the Middle East.

My Lords, the International Monetary Fund, in its latest World Economic Outlook, has warned that the energy shock stemming from the Iran war will hit the United Kingdom harder than any other advanced economy, notably in terms of growth and inflation. It is also the case that UK borrowing costs...

My Lords, the International Monetary Fund, in its latest World Economic Outlook, has warned that the energy shock stemming from the Iran war will hit the United Kingdom harder than any other advanced economy, notably in terms of growth and inflation. It is also the case that UK borrowing costs...

My Lords, the impact of the Iran war has made previous economic forecasts pretty much redundant. We talked last week about warnings from the IMF and the OECD, repeated today by the noble Baroness, Lady Neville-Rolfe, which essentially assess that the UK would suffer more than any other G7 economy....

My Lords, the impact of the Iran war has made previous economic forecasts pretty much redundant. We talked last week about warnings from the IMF and the OECD, repeated today by the noble Baroness, Lady Neville-Rolfe, which essentially assess that the UK would suffer more than any other G7 economy....

My Lords, I am grateful for the questions and comments from the noble Baronesses, Lady Neville-Rolfe and Lady Kramer. The noble Baroness, Lady Neville-Rolfe, started her comments by focusing on the IMF’s revised forecasts that were published last week and that we discussed briefly in this House then. As both

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My Lords, I am grateful for the questions and comments from the noble Baronesses, Lady Neville-Rolfe and Lady Kramer. The noble Baroness, Lady Neville-Rolfe, started her comments by focusing on the IMF’s revised forecasts that were published last week and that we discussed briefly in this House then. As both

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My Lords, one of the big problems that the Government faced when they took office was an unsustainable level of public debt and a totally unsustainable level of debt interest being paid by taxpayers each year on that debt. The Government saw clearly at the time that one thing they...

My Lords, one of the big problems that the Government faced when they took office was an unsustainable level of public debt and a totally unsustainable level of debt interest being paid by taxpayers each year on that debt. The Government saw clearly at the time that one thing they...

I am grateful to the noble Lord for his question. We are repairing the public finances. At the time of the spring forecast, borrowing was set to fall more over this Parliament than in any other G7 economy. We are now borrowing below the G7 average, something that was not...

I am grateful to the noble Lord for his question. We are repairing the public finances. At the time of the spring forecast, borrowing was set to fall more over this Parliament than in any other G7 economy. We are now borrowing below the G7 average, something that was not...

My Lords, returning to defence spending, the Minister referred to the biggest sustained increase in that spending. If it happens, we will welcome

it, but it does not happen until the defence investment plan is published. I noted the slight smile on his face when he said, “in due course”,...

My Lords, returning to defence spending, the Minister referred to the biggest sustained increase in that spending. If it happens, we will welcome

it, but it does not happen until the defence investment plan is published. I noted the slight smile on his face when he said, “in due course”,...

Of course there are consequences; I agree completely with the noble Lord. He talks of a hypothetical of the defence investment plan not happening. It will happen and, as I have said already, it will be published in due course.

Of course there are consequences; I agree completely with the noble Lord. He talks of a hypothetical of the defence investment plan not happening. It will happen and, as I have said already, it will be published in due course.

My Lords, in response to my noble friend Lord Clarke’s question, the Minister spoke of the cuts that the Government are planning to make to the welfare budget. Is he saying that those cuts are sufficient and that that is all the Government will be doing?

My Lords, in response to my noble friend Lord Clarke’s question, the Minister spoke of the cuts that the Government are planning to make to the welfare budget. Is he saying that those cuts are sufficient and that that is all the Government will be doing?

I do not have a crystal ball and I cannot look ahead to everything the Government will be doing, but I can tell the noble Lord, as I said to his noble friend, that we are reforming the welfare system.

I do not have a crystal ball and I cannot look ahead to everything the Government will be doing, but I can tell the noble Lord, as I said to his noble friend, that we are reforming the welfare system.

In Washington, the Chancellor pledged to avoid unnecessary trade restrictions. Can we look forward to the Government cancelling the bad idea of introducing a large carbon border tax or tariff, which would be a penalty on British consumers and a further boost to costs, making British industry less competitive?

In Washington, the Chancellor pledged to avoid unnecessary trade restrictions. Can we look forward to the Government cancelling the bad idea of introducing a large carbon border tax or tariff, which would be a penalty on British consumers and a further boost to costs, making British industry less competitive?

No, and I disagree with the noble Lord, as I am sure I do on many issues. He talks about trade restrictions. He obviously championed a Brexit which put up massive trade restrictions with our nearest trading partners—

No, and I disagree with the noble Lord, as I am sure I do on many issues. He talks about trade restrictions. He obviously championed a Brexit which put up massive trade restrictions with our nearest trading partners—

Tariff free!

Tariff free!

It was estimated at the time to be costing us some 4%, subsequently estimated to be 8%, of GDP, so he has put up massive tariff barriers with our biggest partner, which is not something that is in favour of free trade. He talks about it being tariff free, but...

It was estimated at the time to be costing us some 4%, subsequently estimated to be 8%, of GDP, so he has put up massive tariff barriers with our biggest partner, which is not something that is in favour of free trade. He talks about it being tariff free, but...

My Lords, I declare my interest as a member of the International Relations and Defence Committee. Does the Minister agree with the assessment made by the chair of the committee, the noble Lord, Lord Robertson, about complacency in the Government? Bearing in mind that the theme of this Statement is...

My Lords, I declare my interest as a member of the International Relations and Defence Committee. Does the Minister agree with the assessment made by the chair of the committee, the noble Lord, Lord Robertson, about complacency in the Government? Bearing in mind that the theme of this Statement is...

I have the greatest respect for my noble friend Lord Robertson but I disagree with him. Looking at the decisions that the Prime Minister and Chancellor have taken, we are delivering the biggest sustained increase in defence spending since the Cold War. As I have said already, and I am...

I have the greatest respect for my noble friend Lord Robertson but I disagree with him. Looking at the decisions that the Prime Minister and Chancellor have taken, we are delivering the biggest sustained increase in defence spending since the Cold War. As I have said already, and I am...

My Lords, does the Financial Secretary agree that, rather than increasing revenues, an oil price of more than $100 a barrel is far more likely to reduce them because of the wider effect on the economy? Does he agree that, at a time like this, when revenues are likely to...

My Lords, does the Financial Secretary agree that, rather than increasing revenues, an oil price of more than $100 a barrel is far more likely to reduce them because of the wider effect on the economy? Does he agree that, at a time like this, when revenues are likely to...

I agree with the noble Lord on that point. He is far more expert in these matters than me and was in the Treasury through many more crises than I have been, so he has great experience in this matter. He is absolutely right that the IMF showed last week...

I agree with the noble Lord on that point. He is far more expert in these matters than me and was in the Treasury through many more crises than I have been, so he has great experience in this matter. He is absolutely right that the IMF showed last week...

My Lords, as the Minister says, no one quite knows yet the impact, particularly on the oil and gas sector. I declare an interest as a co-author of the original 1979 plan for sharing oil reserves in the event of a crisis. The crisis then was, of course, far bigger—not...

My Lords, as the Minister says, no one quite knows yet the impact, particularly on the oil and gas sector. I declare an interest as a co-author of the original 1979 plan for sharing oil reserves in the event of a crisis. The crisis then was, of course, far bigger—not...

I am particularly grateful to the noble Lord for his optimism, which is much needed at times. Let us hope that he turns out to be correct. As I have said already, the long-term consequences of this are hard to predict at this point; they will depend on the severity...

I am particularly grateful to the noble Lord for his optimism, which is much needed at times. Let us hope that he turns out to be correct. As I have said already, the long-term consequences of this are hard to predict at this point; they will depend on the severity...