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Lord Livermore (Lab)

Speaking in the House of Lords on 17 July 2025

Debate

Tackling Unsustainable Debt

Contribution

I absolutely recognise what the noble Lord says. It is important to recognise that the debt relief Act was different in scope and scale. It targeted a small, ring-fenced amount of historical debt. Current proposals for legislation would impact all future debt contracts written under English law. We have significant concerns about the impacts of that on the cost of capital at a time when global liquidity is constrained. That is not to say—as the noble Lord rightly advises—that we are not taking action. We are absolutely taking action and we believe that multilateral action is the right way forward, predominantly through the common framework established by the G20. The Chancellor has also established the London coalition, which was launched on 23 June and provides exactly what is needed: a formal avenue to engage with private creditors to ensure long-term stable flows of capital to emerging markets.

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