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My Lords, I add my thanks to my noble friend for the careful way in which he has dealt with our questions and issues and wish him every success. How do the Government expect the banks to lend more money to small businesses if we are requiring them to hold more capital in the form of government bonds or deposits with the Bank of England and taxing them more by increasing the banking levy? Where are they going to find the money? Is there not a case for relaxing, in a counter-cyclical way, the capital requirements so that the money is there to get growth in our economy?
My Lords, I add my thanks to my noble friend for the careful way in which he has dealt with our questions and issues and wish him every success. How do the Government expect the banks to lend more money to small businesses if we are requiring them to hold more capital in the form of government bonds or deposits with the Bank of England and taxing them more by increasing the banking levy? Where are they going to find the money? Is there not a case for relaxing, in a counter-cyclical way, the capital requirements so that the money is there to get growth in our economy?
My Lords, these are critical issues. The fundamental trade-off between stability in the system, which clearly has to improve over what it was before the financial crisis, and the need to boost growth. The fact that the Financial Policy Committee at the Bank of England is up and running in shadow mode and is identifying the counter-cyclical tools that it will need is a very important new step in this area. The Funding for Lending scheme is, I believe, the most important sign of what can be done with the strength of the Government’s balance sheet. Lower funding costs are already coming in to wholesale bank funding, declining by over 100 basis points since June. One indication of the impact on consumers is that quoted rates on fixed-rate mortgages have declined by 0.3 percentage points since the Funding for Lending scheme has come in. However, I certainly agree that we need to be very attentive to this issue.
My Lords, on the problem of leakage of tax revenue to tax havens with lower rates, is not the answer to lower the rates of corporate taxation in this country? In answer to a previous question of a similar nature, my noble friend told me that it was an accounting problem. It is not an accounting problem that leads people to base their company headquarters in countries such as Luxembourg—it is because they pay less tax there. If we wish to maximise revenue, should we not cut corporation tax still further in the way that my right honourable friend did in the Autumn Statement?
My Lords, on the problem of leakage of tax revenue to tax havens with lower rates, is not the answer to lower the rates of corporate taxation in this country? In answer to a previous question of a similar nature, my noble friend told me that it was an accounting problem. It is not an accounting problem that leads people to base their company headquarters in countries such as Luxembourg—it is because they pay less tax there. If we wish to maximise revenue, should we not cut corporation tax still further in the way that my right honourable friend did in the Autumn Statement?
We are reducing the rate of corporation tax but there is a danger of a race to the bottom. Corporation tax brings in a substantial amount of money and is an important contributor to the Exchequer.
My Lords, is the lesson that we need to learn from both sides of the Atlantic not that if Governments live beyond their means and raise the tax burden too high, growth disappears—a lesson that my noble friend Lord Lawson taught us in the 1980s and which we need to relearn?
My Lords, is the lesson that we need to learn from both sides of the Atlantic not that if Governments live beyond their means and raise the tax burden too high, growth disappears—a lesson that my noble friend Lord Lawson taught us in the 1980s and which we need to relearn?
My Lords, the key challenge for Governments, either in this country or on the other side of the pond, is to ensure that there is a credible fiscal framework and a competitive economy so that businesses can invest. That is what the Government have been seeking to achieve.
My Lords, does my noble friend not think it remarkable that the Official Opposition have no proposals for reducing the deficit by cutting public expenditure, and that there does not appear to be a scintilla of humility for the fact that they were running a deficit of some £70 billion...
My Lords, does my noble friend not think it remarkable that the Official Opposition have no proposals for reducing the deficit by cutting public expenditure, and that there does not appear to be a scintilla of humility for the fact that they were running a deficit of some £70 billion...
My Lords, will my noble friend accept my warmest congratulations on the announcement by the Chancellor today that he will consult on allowing AIM shares to be included in ISAs, following the persistent representations of my noble friend Lord Lee of Trafford?
My Lords, will my noble friend accept my warmest congratulations on the announcement by the Chancellor today that he will consult on allowing AIM shares to be included in ISAs, following the persistent representations of my noble friend Lord Lee of Trafford?
I am very happy to accept what my noble friend has said. I have probably answered more questions on AIM shares and ISAs than on practically any other topic. It is also worth saying that it has been announced in today’s Statement that the ISA limit will go up in line with inflation in April 2013—so, by another £240, to £11,520—enabling 24 million people to continue to benefit.
My Lords, could the Minister possibly answer the question of my noble friend Lord Avebury when he asked who is being held accountable for the fact that we were mislead about these legacy cases?
My Lords, could the Minister possibly answer the question of my noble friend Lord Avebury when he asked who is being held accountable for the fact that we were mislead about these legacy cases?
There have been a couple of incidences where staff of the UKBA have indeed apologised to the Home Affairs Select Committee for mistakes that they have made. That was done orally last week and, indeed, before then in writing by the head of the UKBA.
Surely this House is about holding the Government to account, and we have Statements so that we can hold the Government to account—not for people to issue their manifestos on particular issues. Surely the purpose of this House is to hold the Government to account, but we need someone to...
Surely this House is about holding the Government to account, and we have Statements so that we can hold the Government to account—not for people to issue their manifestos on particular issues. Surely the purpose of this House is to hold the Government to account, but we need someone to...
My Lords, will my noble friend clarify the position, as I genuinely do not know the answer to the question? Are we able to deal with companies such as Google and Starbucks and others which are not paying the tax that they should pay in this country or are we constrained by European law from being prevented from doing so?
My Lords, will my noble friend clarify the position, as I genuinely do not know the answer to the question? Are we able to deal with companies such as Google and Starbucks and others which are not paying the tax that they should pay in this country or are we constrained by European law from being prevented from doing so?
I can reassure the noble Lord that we are being constrained not by European Law but by international accounting standards. There is no suggestion that Starbucks and the other companies are breaking the law but the accounting standards allow them to manipulate the point at which they take a tax charge on revenues that they raise.
To ask Her Majesty’s Government what guidance they provide to departments on the acceptable length of time from initial request to provide access to papers for former ministers; and whether that guidance is adhered to.[HL2964]
To ask Her Majesty’s Government what guidance they provide to departments on the acceptable length of time from initial request to provide access to papers for former ministers; and whether that guidance is adhered to.[HL2964]
It is the long-standing convention that former Ministers are allowed reasonable access to the papers of the period when they were in office. It is for individual departments to process such requests from former Ministers.
As a matter of courtesy when releasing papers that relate to former Ministers personally, such as in response Freedom of Information requests, former Ministers should normally be informed of the intention to do so.
To ask Her Majesty’s Government what is their assessment of the arrangements for informing ministers in advance of the release of ministerial papers to the media.[HL2965]
To ask Her Majesty’s Government what is their assessment of the arrangements for informing ministers in advance of the release of ministerial papers to the media.[HL2965]
It is the long-standing convention that former Ministers are allowed reasonable access to the papers of the period when they were in office. It is for individual departments to process such requests from former Ministers.
As a matter of courtesy when releasing papers that relate to former Ministers personally, such as in response Freedom of Information requests, former Ministers should normally be informed of the intention to do so.
Given that this is a self-regulating House, and given that Prime Ministers have not always been entirely au fait with its proceedings, would it not be a good idea for us to amend our Standing Orders to set a limit on the size of this House, which would be useful guidance for future Prime Ministers ?
Given that this is a self-regulating House, and given that Prime Ministers have not always been entirely au fait with its proceedings, would it not be a good idea for us to amend our Standing Orders to set a limit on the size of this House, which would be useful guidance for future Prime Ministers ?
My Lords, that would not be in the least bit effective. It is entirely up to the Prime Minister to advise Her Majesty on the creation of peerages. This has been well used in the past. In the 10 years between 1997 and 2007, the Labour Party created 162 new Peers—100 more than went to the Conservative Party .
My Lords, we are getting into very treacherous waters. When I was Secretary of State for Scotland, I had to sign a Boundary Commission report that effectively wrecked my constituency. It never occurred to me for a moment not to do so, because the convention was that the Boundary Commission...
My Lords, we are getting into very treacherous waters. When I was Secretary of State for Scotland, I had to sign a Boundary Commission report that effectively wrecked my constituency. It never occurred to me for a moment not to do so, because the convention was that the Boundary Commission...
My Lords, I did not have an opportunity to participate at an earlier stage in this Bill but these amendments, particularly Amendment 1, which relates to the role of the Electoral Commission, about which the noble and learned Lord has spoken so eloquently, is very important.
The Bill sets out the...
My Lords, I did not have an opportunity to participate at an earlier stage in this Bill but these amendments, particularly Amendment 1, which relates to the role of the Electoral Commission, about which the noble and learned Lord has spoken so eloquently, is very important.
The Bill sets out the...
I asked my noble friend a specific question. I fully appreciate that the agreement reached by the Prime Minister in Edinburgh allowed for the Scottish Government to extend the franchise to 16 year-olds, but I think that my noble friend’s namesake, our noble and learned friend Lord Wallace of Tankerness,...
I asked my noble friend a specific question. I fully appreciate that the agreement reached by the Prime Minister in Edinburgh allowed for the Scottish Government to extend the franchise to 16 year-olds, but I think that my noble friend’s namesake, our noble and learned friend Lord Wallace of Tankerness,...
My Lords, let us forget about the Scottish Government for a moment and think about this Government. I was given an assurance by the noble and learned Lord, Lord Wallace of Tankerness, that the extension of the franchise to 16 year-olds would apply only to attainers—that is, to people on...
My Lords, let us forget about the Scottish Government for a moment and think about this Government. I was given an assurance by the noble and learned Lord, Lord Wallace of Tankerness, that the extension of the franchise to 16 year-olds would apply only to attainers—that is, to people on...
My noble friend has offered to write me, which I appreciate, and I do not want to detain the Committee with too many matters Scottish. However, Amendment 36 suggests that a report should be brought by the Electoral Commission,
“on the accuracy and completeness of the electoral register in each part...
My noble friend has offered to write me, which I appreciate, and I do not want to detain the Committee with too many matters Scottish. However, Amendment 36 suggests that a report should be brought by the Electoral Commission,
“on the accuracy and completeness of the electoral register in each part...
My Lords, at the risk of spoiling the consensus, will my noble friend explain how it can be right to make responsible drinkers pay more for their drink in order to deal with a problem that is perhaps best addressed specifically rather than by putting up the price for everyone?
My Lords, at the risk of spoiling the consensus, will my noble friend explain how it can be right to make responsible drinkers pay more for their drink in order to deal with a problem that is perhaps best addressed specifically rather than by putting up the price for everyone?
Perhaps it is not so much a matter of putting up the price as of stopping the price dropping. The real price of alcohol has halved over recent years, which is a substantial reduction. I think the noble Lord would agree that some of the offers that are available to people are there to tempt them to buy more alcohol than they need.
My Lords, can my noble friend deal with the anxiety about the question? It is now going to be decided by the Scottish Parliament,
which means Alex Salmond in consultation with the Electoral Commission. Would a way of ensuring that the referendum is fairly conducted be to say that the Section 30 order, which transfers the power to the Scottish Parliament, will not be brought before either House of Parliament until Alex Salmond has published his draft Bill setting out the question and the rules for the conduct of the referendum and the franchise?
My Lords, can my noble friend deal with the anxiety about the question? It is now going to be decided by the Scottish Parliament,
which means Alex Salmond in consultation with the Electoral Commission. Would a way of ensuring that the referendum is fairly conducted be to say that the Section 30 order, which transfers the power to the Scottish Parliament, will not be brought before either House of Parliament until Alex Salmond has published his draft Bill setting out the question and the rules for the conduct of the referendum and the franchise?
My Lords, the Section 30 order will be published next week, and both Houses of Parliament will debate and, it is hoped, pass it in due course. I cannot see that there is any great advantage in seeing Mr Salmond’s Bill before we pass the Section 30 order. After all, it can be amended in the Scottish Parliament. However, we understand that we will get the publication of the Scottish Government’s consultation, which will include their view of what the question should be, and that should be available in the next few weeks.
My Lords, as two-thirds of the European Commission membership are themselves men, would not the Commission do better to put its own house in order before deciding on other people?
My Lords, as two-thirds of the European Commission membership are themselves men, would not the Commission do better to put its own house in order before deciding on other people?
My Lords, I shall not say anything.
My Lords, in view of the enormous success brought by the Olympics and the fantastic advert around the world for Britain, is my noble friend not surprised that we have had such churlish supplementaries in response to his excellent Answer?
My Lords, in view of the enormous success brought by the Olympics and the fantastic advert around the world for Britain, is my noble friend not surprised that we have had such churlish supplementaries in response to his excellent Answer?
I shall be bathing in sunshine tomorrow and I am now bathing in sunshine here, so I thank the noble Lord for that kind remark.