Lord Walker of Broxton (Lab)

My Lords, I declare an interest as executive chairman of Iceland Foods and of Bywater. As the former Prime Minister’s cost of living champion, I advocated targeted help for families who could not absorb soaring bills, and it is good to see some of those ideas come to fruition. But that is just applying a sticking plaster; we cannot cure the underlying disease with yet another subsidy or benefit. This Government’s top priority must be getting Britain back to work. One in every seven households has no one in work: not a single adult earning a wage. A million children live in long-term workless homes, more than a quarter of those in households where no one, not once, has ever worked. Now is the time to turn things around by giving businesses the confidence to invest. Our new Prime Minister says he wants a pro-business Government. He needs the courage to deliver on that. Start with the October Budget, shift the tax burden away from jobs and productive investment, cut the cost of employing people and give more high street businesses relief on rates. A growing private sector will do more to relieve poverty than any support programme ever can. Now is the time to make brave decisions on welfare and, dare I say it, the triple lock. I started my business career in Poland and have watched with admiration as it has grown almost as rich per capita as Britain. Indeed, it is soon likely to overtake us. We should follow its formula: encourage investment, build infrastructure, develop skills, attract businesses and pursue integration into global supply chains. As a father I am horrified that, as we have heard, we have almost 1 million 16 to 24 year-old NEETs. We are complicit in allowing them to enter adulthood without the structure, confidence, skills, friendships and sense of purpose that only work can provide. Of course I believe that the state must support those who are ill, disabled or otherwise unable to work. But the welfare state should be a safety net and a springboard, not a system that leaves people who can work parked on benefits. We need to create a smoother pathway from school into work, meaning more apprenticeships, vocational training and work experience. The Prime Minister’s focus on creating more work placements is welcome, but businesses will deliver far more if the barriers that currently deter them from hiring are simply removed. This means lowering the cost of creating jobs, helping businesses invest in skills, cutting red tape and making sure that work always pays. Do that and Britain will get a triple dividend. People will move from welfare to wages, and the benefits bill will fall while tax revenues rise. Businesses will gain the people and skills they need to grow, and a generation currently being offered too little hope will get a stake in our country’s future. Britain cannot redistribute its way to prosperity. Like Poland, we must build our way there.