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Lords question for short debate on what assessment they have made of the economic benefits of giving sports clubs special enterprise zone status.

Lords question for short debate on what assessment they have made of the economic benefits of giving sports clubs special enterprise zone status.

My Lords, I had the privilege and honour of serving in the Blair Government under Richard Caborn and Tessa Jowell for five years and being in the private discussions around the Olympic legacy and the Olympic Park. The one thing more than anything that I took from that was that...

My Lords, I had the privilege and honour of serving in the Blair Government under Richard Caborn and Tessa Jowell for five years and being in the private discussions around the Olympic legacy and the Olympic Park. The one thing more than anything that I took from that was that...

My Lords, the noble Lord, Lord Mann, makes a very good case and I hope that what I say is interpreted as supportive of it.

My support for Brighton and Hove Albion is well known, and I declare it as a relevant interest in this debate. In fact, I have often...

My Lords, the noble Lord, Lord Mann, makes a very good case and I hope that what I say is interpreted as supportive of it.

My support for Brighton and Hove Albion is well known, and I declare it as a relevant interest in this debate. In fact, I have often...

My Lords, I thank the Grand Committee for allowing me to speak in the gap. I also thank the noble Lord, Lord Mann, for this disappointingly short but important debate. It is important because it is clear how much sports clubs contribute to civil society, our health and our economy....

My Lords, I thank the Grand Committee for allowing me to speak in the gap. I also thank the noble Lord, Lord Mann, for this disappointingly short but important debate. It is important because it is clear how much sports clubs contribute to civil society, our health and our economy....

My Lords, when I first saw the title of this debate, I immediately asked myself, which sports clubs? My reflex was to think of small amateur sports clubs, which are the backbone of many a social structure. They are microstructures for employment and so on. Then, after two seconds I...

My Lords, when I first saw the title of this debate, I immediately asked myself, which sports clubs? My reflex was to think of small amateur sports clubs, which are the backbone of many a social structure. They are microstructures for employment and so on. Then, after two seconds I...

My Lords, I am very pleased to respond to this QSD. I thank my noble friend Lord Mann for securing this debate and opening it—because it gives me an opportunity to talk about football, which is never a bad thing as far as I am concerned, but also because it...

My Lords, I am very pleased to respond to this QSD. I thank my noble friend Lord Mann for securing this debate and opening it—because it gives me an opportunity to talk about football, which is never a bad thing as far as I am concerned, but also because it...

To ask the Secretary of State for Housing, Communities and Local Government, which local authorities and combined authorities will receive additional powers and resources under the measures announced in his written statement of 7 September 2026.

To ask the Secretary of State for Housing, Communities and Local Government, which local authorities and combined authorities will receive additional powers and resources under the measures announced in his written statement of 7 September 2026.

To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of reducing youth unemployment on UK productivity and economic growth.

To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of reducing youth unemployment on UK productivity and economic growth.

To ask the Chancellor of the Exchequer, what assessment he has made of the levels of GDP growth per capita in each postcode in the United Kingdom since July 2024.

To ask the Chancellor of the Exchequer, what assessment he has made of the levels of GDP growth per capita in each postcode in the United Kingdom since July 2024.

What steps his Department is taking to help increase economic growth.

What steps his Department is taking to help increase economic growth.

To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of a pilot reduction in VAT for the hospitality sector In Northern Ireland on local businesses and growth in tourism.

To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of a pilot reduction in VAT for the hospitality sector In Northern Ireland on local businesses and growth in tourism.

To ask His Majesty’s Government what assessment they have made of the relationship between changes in the tax burden and the effect on economic growth.

To ask His Majesty’s Government what assessment they have made of the relationship between changes in the tax burden and the effect on economic growth.

Our tax system is very supportive of economic growth. Our tax-to-GDP ratio is in the middle of the pack of the G7, and we have the lowest headline rate of corporation tax in the G7. The UK economy saw the fastest growth in the first half of this year, and the IMF expects the UK to remain the fastest-growing European G7 economy in 2026-27. According to the IMF, this year, for the first time since 2004, we are forecast to be borrowing less than the rest of the G7 on average. Despite the headwinds from the war in the Middle East, there is a lot to be optimistic about.

Our tax system is very supportive of economic growth. Our tax-to-GDP ratio is in the middle of the pack of the G7, and we have the lowest headline rate of corporation tax in the G7. The UK economy saw the fastest growth in the first half of this year, and the IMF expects the UK to remain the fastest-growing European G7 economy in 2026-27. According to the IMF, this year, for the first time since 2004, we are forecast to be borrowing less than the rest of the G7 on average. Despite the headwinds from the war in the Middle East, there is a lot to be optimistic about.

My Lords, the tax burden is forecast to reach its highest level ever. The last two, disastrous Budgets raised taxes by £40 billion and £26 billion respectively; the results can be seen in today’s very disappointing unemployment figures.

The manifesto ruled out any major tax increases, but there is still great uncertainty in the UK economy, which is damaging the economy. What evidence can the Government offer that such a historically high tax burden is consistent with promoting economic growth, which is so badly needed in this country?

My Lords, the tax burden is forecast to reach its highest level ever. The last two, disastrous Budgets raised taxes by £40 billion and £26 billion respectively; the results can be seen in today’s very disappointing unemployment figures.

The manifesto ruled out any major tax increases, but there is still great uncertainty in the UK economy, which is damaging the economy. What evidence can the Government offer that such a historically high tax burden is consistent with promoting economic growth, which is so badly needed in this country?

I should just say to the noble Lord that we had quite a big mess to tidy up when we came into government two years ago; I do not think that the Opposition should be allowed to get away with that.

Only on Friday, the ONS estimated that GDP growth increased in July by 0.4%, which was well above expectations. In fact, UK GDP growth is the fastest in the G7. The tax level still sits in the middle of the G7 nations. For example, the effective tax rate for a single individual with no children and on average earnings is one of the lowest in the OECD. I am not pretending that everything is rosy in the garden—there is a war in the Middle East. On the unemployment figures that came out today, I do not know whether the noble Lord is aware of this, but in only two peacetime years out of the past 150 has the average annual employment rate been higher than it was in 2025.

Let us just listen to what businesses have been saying. A representative of the KPMG said that

“businesses are starting to press ahead with investment”

and that

“we are starting to see the data moving in the right direction”.

As I say, there is a lot to be optimistic about.

I should just say to the noble Lord that we had quite a big mess to tidy up when we came into government two years ago; I do not think that the Opposition should be allowed to get away with that.

Only on Friday, the ONS estimated that GDP growth increased in July by 0.4%, which was well above expectations. In fact, UK GDP growth is the fastest in the G7. The tax level still sits in the middle of the G7 nations. For example, the effective tax rate for a single individual with no children and on average earnings is one of the lowest in the OECD. I am not pretending that everything is rosy in the garden—there is a war in the Middle East. On the unemployment figures that came out today, I do not know whether the noble Lord is aware of this, but in only two peacetime years out of the past 150 has the average annual employment rate been higher than it was in 2025.

Let us just listen to what businesses have been saying. A representative of the KPMG said that

“businesses are starting to press ahead with investment”

and that

“we are starting to see the data moving in the right direction”.

As I say, there is a lot to be optimistic about.

My Lords, there is a strong argument that the businesses hit hardest by the tax rises—notably in employers’ NICs—are small businesses with more than seven employees and medium-sized businesses. Have the Government done work to look at the impact of growth on that specific sector? It is crucial in very disadvantaged communities, and the impact is masked by always quoting the high-level numbers.

My Lords, there is a strong argument that the businesses hit hardest by the tax rises—notably in employers’ NICs—are small businesses with more than seven employees and medium-sized businesses. Have the Government done work to look at the impact of growth on that specific sector? It is crucial in very disadvantaged communities, and the impact is masked by always quoting the high-level numbers.

Obviously, I do not want to pre-empt anything that might come out in the Budget, but it is fair to say that the Government have protected the smallest businesses from the NICs changes by more than doubling the employment allowance, which allows eligible employers to reduce their employer NICs bill by up to £10,500. This means that around 900,000 employers, or around 40%, will have no employer NIC liabilities. We are thinking about small companies—we know that they are the ones that grow the economy—and we are going to continue doing what is best for the British economy.

Obviously, I do not want to pre-empt anything that might come out in the Budget, but it is fair to say that the Government have protected the smallest businesses from the NICs changes by more than doubling the employment allowance, which allows eligible employers to reduce their employer NICs bill by up to £10,500. This means that around 900,000 employers, or around 40%, will have no employer NIC liabilities. We are thinking about small companies—we know that they are the ones that grow the economy—and we are going to continue doing what is best for the British economy.

My Lords, returning to the original Question asked by the noble Lord, Lord Leigh, does the Minister agree that what really matters is growth in GDP per capita, where we sit near the bottom of the G7—given our population growth over the past five years—and that this has happened at a time when our tax burden has risen at the fastest rate in the G7? That is not a coincidence, is it?

My Lords, returning to the original Question asked by the noble Lord, Lord Leigh, does the Minister agree that what really matters is growth in GDP per capita, where we sit near the bottom of the G7—given our population growth over the past five years—and that this has happened at a time when our tax burden has risen at the fastest rate in the G7? That is not a coincidence, is it?

I think it is fair to say that, as far as GDP per capita is concerned, the other figure that is not really looked at but is prevalent in all this is payroll employee-based productivity, which has grown by 2.2%—the fastest calendar year rate outside of the pandemic for more than a decade. Productivity growth is the main way to get a sustainable increase in long-term economic growth. As I said, we are not out of the woods yet, but there is a lot going on that is positive and optimistic; that is the line we need to toe.

I think it is fair to say that, as far as GDP per capita is concerned, the other figure that is not really looked at but is prevalent in all this is payroll employee-based productivity, which has grown by 2.2%—the fastest calendar year rate outside of the pandemic for more than a decade. Productivity growth is the main way to get a sustainable increase in long-term economic growth. As I said, we are not out of the woods yet, but there is a lot going on that is positive and optimistic; that is the line we need to toe.