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Chamber and committees

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 13 July 2025
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Displaying 1221 contributions

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Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Liz Smith

That is very helpful because it is an area that is absolutely critical to productivity. It is important to ensure that we have absolute accuracy when it comes to the numbers of people in the different categories of income levels, as they will obviously benefit the tax revenue and things like that.

10:15  

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Liz Smith

I am sorry. May I come back on that? You are arguing that there should be other factors in improving that fiscal rule, so I am a bit confused as to why you think that it is too loose, when you feel—

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Liz Smith

Good morning. I want to ask you about a comment that your colleague Paul Johnson made, which was that he felt that Mr Hunt was on course—just “on course”—to meet what he described as

“his (poorly designed) fiscal rule”.

What do you feel is “poorly designed” about it, and what would you like to see instead?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Liz Smith

Thank you for that. Therefore, there is a problem with regard to the timescale but you also feel that it is not sufficiently diverse in its targets—it is too tight. Is that what you are saying?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Liz Smith

I will come on to inactivity in a minute. On unemployment, are there trends suggesting that there are different parts of the UK where the threat of rising unemployment is worse, or is it too early to tell?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Liz Smith

Thank you, that is helpful.

Inactivity is another critical issue for the future of the economy. The Chancellor of the Exchequer has tried various measures—some of them a bit more successful than others—to ensure that inactivity is reduced, which is critical to productivity. Do you see any trends in the different age structures that suggest where people are more likely to come back into the labour market? Could you expand on that a wee bit?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Liz Smith

Is early retirement a big factor in that?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Liz Smith

It is all a very inexact science; I completely appreciate that, and I know how difficult it is because of the time periods. However, it would be helpful if the accuracy of the forecasting improved; it is critical for Governments to be able to make the right decisions. I am interested to know your views about how we can try to continue to improve forecasting.

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Liz Smith

That is very helpful, because I think that that is about factors other than those in the current set-up.

I asked the OBR witnesses this morning where they feel we have the greatest challenge when it comes to productivity, in terms of unemployment and the participation rate. I would also like to ask you whether you detect, in the slight increase that is forecast for unemployment, that that will happen on a UK basis, or are there particular aspects that mean that unemployment in some parts of the UK is rising faster than it is in others, and that different sectors are showing different trends?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Liz Smith

Is that largely in the 45 to 60-year-old group?