Shadow Leader of the House Jesse Norman welcomes news of a ceasefire in Gaza and highlights the Government’s turbulent week in Westminster with the anti-corruption Minister being named in a corruption investigation, disappointing economic growth, concerns over stagflation and the Chancellor’s desperate search for growth.
Jesse Norman (Hereford and South Herefordshire) (Con)
I am sure that the Leader of the House and every Member will join me in welcoming the news overnight of a ceasefire in Gaza. Let us hope and pray that it is as effective, comprehensive and long-lasting as possible.
Back at home, all one can say is that it has been another extraordinary week for the Government, though possibly not in the way that they would have wanted. We have had the Government’s anti-corruption Minister herself being named for corruption by another country in the face of an international investigation into embezzlement of development and other funds. We have had the unusually unlovely sight of the Chancellor of the Exchequer in a desperate search for growth that has taken her to Beijing and back—though with precious little result, it seems. The Institute of Chartered Accountants in England and Wales said this week that stagflation—that toxic combination of recession and inflation—is now “a live risk”. Even the very, very modest GDP growth reported for November was below expectations.
At some point, the Government’s current spending splurge will doubtless start to nudge growth upwards over the coming year, but in the meantime we will have to look forward to the grim prospect of the national insurance changes in April and the horrors of the Employment Rights Bill, which even by the Government’s own estimates will cost employers an extra £5 billion a year. So dire has the Chancellor’s position become that she has been forced to ask Cabinet colleagues for ideas of growth. Given the galaxy of business talent around the Cabinet table, how can that possibly go wrong?
Meanwhile, the Prime Minister has been forced not only to express “full confidence” in the Chancellor—always a death knell—but to insist that she will remain in post for the full period of this Government. Let us see how that works out. It has been extraordinary, in particular, to see her attacked by her own colleagues, who have said:
“we’re going back to austerity in all but name.”
Luckily, the Government were able to announce some good news in the form of the latest results of the national wealth fund, which has apparently generated more than 6,000 jobs and £1.6 billion in private investment over the last six months—except that the announcement is, I am afraid, entirely disingenuous. As Lord Livermore said in a debate in the other House in October, the national wealth fund is, in fact, the UK Infrastructure Bank with a new name and a bit more capital. I know something about the UK Infrastructure Bank, because I set it up in 2021 when I was Financial Secretary to the Treasury. It has an absolutely world-class leadership team and I am not remotely surprised to see it doing so well. But the idea that its recent success is attributable to a Labour Government who have done little more than rebrand it is an embarrassing joke. Its success has been powered by good institutional design, a top team, tonnes of talented employees and more than four years of hard work.
One recalls the Government’s attempt to claim credit for £63 billion of international cash in the October investment summit. I know the Leader of the House is a strong believer in transparency and accountability, so will she have the Treasury update the House on what form that investment has taken, how much of it has been received and where it is being spent? Frankly, it is more than doubtful that three months of post-election chaos in the Government had any such effect in boosting investment, but we will see when the Government publish the numbers, as I am sure they will. If it turns out like the so-called national wealth fund, we will know that the Labour Government are more than happy to take credit for at least some of the work of the previous Government, provided that they can put their own name on it.