To ask His Majesty's Government what assessment they have made of the merits of introducing public country by country reporting to tackle profit shifting by large multinational corporations.

To ask His Majesty's Government what assessment they have made of the merits of introducing public country by country reporting to tackle profit shifting by large multinational corporations.

To ask His Majesty's Government what plans they have, if any, to make pension tax relief conditional upon undertakings by the funds to invest at least 15 per cent of their equity portfolios in British public and private companies.

To ask His Majesty's Government what plans they have, if any, to make pension tax relief conditional upon undertakings by the funds to invest at least 15 per cent of their equity portfolios in British public and private companies.

To ask His Majesty's Government what consideration they have given to devolving the power of setting business rates to Northern Ireland as part of the government's devolution agenda.

To ask His Majesty's Government what consideration they have given to devolving the power of setting business rates to Northern Ireland as part of the government's devolution agenda.

To ask His Majesty's Government what estimate they have made of (a) gains to HM Treasury from the years of operation of quantitative easing, and (b) the losses to HM Treasury since 2022 from quantitative tightening as a result of the implementation of the agreement for HM Treasury to cover...

To ask His Majesty's Government what estimate they have made of (a) gains to HM Treasury from the years of operation of quantitative easing, and (b) the losses to HM Treasury since 2022 from quantitative tightening as a result of the implementation of the agreement for HM Treasury to cover...

To ask His Majesty's Government what estimate they have made of the effect of bond sales by the Bank of England, undertaken because of quantitative tightening, on long-term borrowing rates; and what assessment they have made of the additional 30 basis points on the yields of long-dated bonds, including its...

To ask His Majesty's Government what estimate they have made of the effect of bond sales by the Bank of England, undertaken because of quantitative tightening, on long-term borrowing rates; and what assessment they have made of the additional 30 basis points on the yields of long-dated bonds, including its...

The Government’s commitment to the defence of this country is absolute. We have the third-highest absolute expenditure on defence among our allies. We will honour our NATO commitment of 3.5% by 2035. In direct answer to the question from the noble Lord, Lord Bellingham, we will set the target date in the spending review for 3%. We are also committed to bear down on the welfare bill, but not by

arbitrarily punishing those who depend on it. Finally, I note, and I hope the House understands this, that these two issues are not inextricably linked and that it is a danger if politicians suggest that we need to make false choices.

The Government’s commitment to the defence of this country is absolute. We have the third-highest absolute expenditure on defence among our allies. We will honour our NATO commitment of 3.5% by 2035. In direct answer to the question from the noble Lord, Lord Bellingham, we will set the target date in the spending review for 3%. We are also committed to bear down on the welfare bill, but not by

arbitrarily punishing those who depend on it. Finally, I note, and I hope the House understands this, that these two issues are not inextricably linked and that it is a danger if politicians suggest that we need to make false choices.

My Lords, that is exactly the sort of false choice that we need to guard against. We want to be clear that we spend the welfare budget well. That is why we have the Timms review on PIPs and why we have the Milburn review on NEETs and getting a system for getting people back to work.

Since it was quite a long question, I would like to tell noble Lords about fraud. By the end of this Parliament, the Government will be saving £4.3 billion on fraud in the welfare system that they inherited. I think they learned from the noble Lord, Lord Agnew, a Conservative Peer and one of my predecessors, who stood at this Dispatch Box and said that it was arrogance, indolence and ignorance that was stopping us bearing down on it and that he hoped his resignation would make someone do something about it. We are and we will.

My Lords, that is exactly the sort of false choice that we need to guard against. We want to be clear that we spend the welfare budget well. That is why we have the Timms review on PIPs and why we have the Milburn review on NEETs and getting a system for getting people back to work.

Since it was quite a long question, I would like to tell noble Lords about fraud. By the end of this Parliament, the Government will be saving £4.3 billion on fraud in the welfare system that they inherited. I think they learned from the noble Lord, Lord Agnew, a Conservative Peer and one of my predecessors, who stood at this Dispatch Box and said that it was arrogance, indolence and ignorance that was stopping us bearing down on it and that he hoped his resignation would make someone do something about it. We are and we will.

I completely agree with those statements. Let us recognise that in 2025 this Government committed to the largest sustained increase in defence spending since the end of the Cold War, after years, as my noble friend pointed out, of decline. I hope I will have an opportunity to come back and talk about the welfare budget and the Conservative proposals for it later on in Questions; I should allow time for that.

I completely agree with those statements. Let us recognise that in 2025 this Government committed to the largest sustained increase in defence spending since the end of the Cold War, after years, as my noble friend pointed out, of decline. I hope I will have an opportunity to come back and talk about the welfare budget and the Conservative proposals for it later on in Questions; I should allow time for that.

As I said, the 3% timing will be declared at the spending review. I do not want to do all the criticising of other parties, actually; I am trying to maintain a collegiate House. But I do remember, a couple of weeks ago, the right reverend Prelate the Bishop of Coventry talked about old people, who she said were of “immeasurable worth”. Everyone is of immeasurable worth. Of course we need to talk about big numbers for defence and welfare, but real people depend on welfare and those real people are of immeasurable worth. That should inform our debate.

As I said, the 3% timing will be declared at the spending review. I do not want to do all the criticising of other parties, actually; I am trying to maintain a collegiate House. But I do remember, a couple of weeks ago, the right reverend Prelate the Bishop of Coventry talked about old people, who she said were of “immeasurable worth”. Everyone is of immeasurable worth. Of course we need to talk about big numbers for defence and welfare, but real people depend on welfare and those real people are of immeasurable worth. That should inform our debate.

That the Government have an absolute commitment to the defence of this nation; that we already have the third-highest absolute expenditure among our allies; that we will honour our NATO commitment of 3.5% by 2035 and set a target for 3% on defence at the spending review; and that in 2025 we committed to the largest sustained increase in defence spending since the end of the Cold War. That is not bad.

That the Government have an absolute commitment to the defence of this nation; that we already have the third-highest absolute expenditure among our allies; that we will honour our NATO commitment of 3.5% by 2035 and set a target for 3% on defence at the spending review; and that in 2025 we committed to the largest sustained increase in defence spending since the end of the Cold War. That is not bad.

I think the reference to private companies and what defence spending can do for the economy is very important. If I have my figures right, the additional investment we will be making will create 60,000 more jobs in the private sector. So we are aware of this important point and I thank the noble and gallant Lord.

I think the reference to private companies and what defence spending can do for the economy is very important. If I have my figures right, the additional investment we will be making will create 60,000 more jobs in the private sector. So we are aware of this important point and I thank the noble and gallant Lord.

I think I have made the Government’s position on that reasonably clear. Let us just look at the proposal we have, for example on housing benefit, from the party opposite to take £4 billion off the budget, which is something like £13.5 billion or £14 billion. Have we thought about how many people that would make homeless? Have we thought about how many of them would then turn up, of course with the right to be housed if they have children? Noble Lords can hear where I am coming from.

I think I have made the Government’s position on that reasonably clear. Let us just look at the proposal we have, for example on housing benefit, from the party opposite to take £4 billion off the budget, which is something like £13.5 billion or £14 billion. Have we thought about how many people that would make homeless? Have we thought about how many of them would then turn up, of course with the right to be housed if they have children? Noble Lords can hear where I am coming from.

Yes. I would answer that by saying that £4.3 billion will be saved as a result of the biggest crackdown in a generation. I thank the noble Lord, Lord Agnew, for his passion on that when he stood at this Dispatch Box. We are responding to his call to take action.

Yes. I would answer that by saying that £4.3 billion will be saved as a result of the biggest crackdown in a generation. I thank the noble Lord, Lord Agnew, for his passion on that when he stood at this Dispatch Box. We are responding to his call to take action.

To ask His Majesty’s Government whether they plan to reduce the welfare budget to fund defence.

To ask His Majesty’s Government whether they plan to reduce the welfare budget to fund defence.

To ask His Majesty's Government what steps they are taking to improve labour productivity in the public sector.

To ask His Majesty's Government what steps they are taking to improve labour productivity in the public sector.

To ask His Majesty's Government what estimate they have made of the cost of the UK's support to the government of Ukraine in the current financial year.

To ask His Majesty's Government what estimate they have made of the cost of the UK's support to the government of Ukraine in the current financial year.

My Lords, this Question about the Government’s interest bill is a really good one: £1 in every £10 of government money is now spent paying interest. There are three elements causing this. One is the overall level of borrowing, and consistent, disciplined fiscal rules that are kept to are, we believe, the right answer. There is also the growth in global interest rates, for example following quantitative easing. We are also living in an extremely uncertain world, particularly in the Persian Gulf. The third element is the premium that the UK now pays over the G7 average—a premium that has been apparent since September 2022. Again, the best remedy for that is sustained fiscal discipline, including respecting the independence of the Bank of England in particular and, of course, the Office for Budget Responsibility.

My Lords, this Question about the Government’s interest bill is a really good one: £1 in every £10 of government money is now spent paying interest. There are three elements causing this. One is the overall level of borrowing, and consistent, disciplined fiscal rules that are kept to are, we believe, the right answer. There is also the growth in global interest rates, for example following quantitative easing. We are also living in an extremely uncertain world, particularly in the Persian Gulf. The third element is the premium that the UK now pays over the G7 average—a premium that has been apparent since September 2022. Again, the best remedy for that is sustained fiscal discipline, including respecting the independence of the Bank of England in particular and, of course, the Office for Budget Responsibility.

Overall fiscal discipline is the central question. Discipline is really important. The noble Baroness mentioned the moron premium. I do not know whether all noble Lords understand what that term refers to: it was a slight by an economist describing the behaviour of the team responsible for

the September 2022 mini-Budget. To give a sense of the cost, it is £15 billion a year. I think we have learned lessons from that. When I spoke in the debate last week, speakers from across the House agreed that fiscal discipline, independent oversight and not moving the goalposts were critical. The balance of spending on tax might be something on which we disagree, but on fiscal discipline we agree entirely.

Overall fiscal discipline is the central question. Discipline is really important. The noble Baroness mentioned the moron premium. I do not know whether all noble Lords understand what that term refers to: it was a slight by an economist describing the behaviour of the team responsible for

the September 2022 mini-Budget. To give a sense of the cost, it is £15 billion a year. I think we have learned lessons from that. When I spoke in the debate last week, speakers from across the House agreed that fiscal discipline, independent oversight and not moving the goalposts were critical. The balance of spending on tax might be something on which we disagree, but on fiscal discipline we agree entirely.

The Debt Management Office is part of the Bank of England. I would be more than happy to write to it, or the noble Baroness herself might wish to write for the answer to her question.

The Debt Management Office is part of the Bank of England. I would be more than happy to write to it, or the noble Baroness herself might wish to write for the answer to her question.

Let me write to my noble friend to make sure that my reply is accurate. However, I believe that matter is under discussion.

Let me write to my noble friend to make sure that my reply is accurate. However, I believe that matter is under discussion.