Budget Resolutions — House of Commons, 2017-11-22
Topic: Macroeconomics
Jeremy Mark Quin (Conservative, Centre-right): Thank you for calling me to speak, Mr Speaker. I will try to curtail my remarks with that in mind. I know that many Members want to contribute to this debate It is a pleasure to follow the hon. Member for Leicester West (Liz Kendall). Rather like the comment of my hon. Friend the Member for North East Somerset (Mr Rees-Mogg) about the hon. Member for Nottingham East (Mr Leslie), I may not agree with what the hon. Lady says, but she speaks with passion and verve and I understand her direction of travel. I do not want to embarrass her or her colleague, but I contrast that with what the Leader of the Opposition said earlier, which reminded me of a modern artist—a lot of noise and colour, but no discernible theme. Every Member on both sides of the House wants good public services. They want them to be well supported and to deliver for our constituents. Like the hon. Member for Belfast South (Emma Little Pengelly) and others, I welcome the slight fiscal loosening over the next two to three years as recognition of the needs of our public sector. I am not going to prejudge independent pay reviews but—who knows?—perhaps that will give extra leeway in that direction as well. That is right and appropriate, but it is also right that it is executed in the context of a broader, macro-plan for bringing our national debt under control According to my back-of-an-envelope forecasts, we will reduce our deficit to its 2001 level, when the Labour party was in government. That was the last year in which it had very sensibly allowed its fiscal envelope to be dictated by my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke). From next year, our total debt as a percentage of GDP will begin to decline—a signal point in our resolving the fiscal hole of historic proportions that we inherited. Reducing that deficit is not glamorous or popular, but it is necessary. It is necessary to build up resilience to future shocks; for our annual interest payments, which are about 50% of what we spend every year on the NHS; and on the grounds of simple fairness to future generations To maintain that progress of debt reduction and to sustain our investment in the public services that we all cherish, the Chancellor is absolutely right to focus on our productivity puzzle. I respect the OBR’s economic forecasts, which have been referred to frequently this afternoon. Personally I feel more optimistic as to the pace of growth. They are forecasts: they go up and they go down. That is in the nature of forecasting. As the OBR itself says: "The outlook for potential…productivity is the most important, yet most uncertain, element of" productivity output growth. The OBR is, of course, right on both counts. That is why I applaud the Chancellor’s robust stance on embracing the new technologies, harnessing the UK’s lead in innovation and building up our productivity growth We have an excellent record on employment, both in my Horsham constituency and nationally, with 1,000 jobs a day being created since 2010. Our challenge as a country—it is also a challenge globally, but it is particularly acute in the UK—is to ensure that those employees receive the investment, education, infrastructure and support that will allow us to drive our productivity and enhance further economic growth I welcome those measures in the Budget that are directly aimed at long-term improvements in our productivity, including targeting the new technologies, a further £2.3 billion for R and D, and a further enhancement to the R and D tax credit, helping to lift R and D investment to our target of 2.4% of GDP. As someone who sees the UK as a liberal country open to the world, I am delighted by the approach laid out in the Red Book for attracting and retaining the best scientific talent from anywhere in the world to work and flourish here in the UK On education, to which the hon. Member for Leicester West referred, I warmly welcome the new approaches. Horsham boasts excellent schools that place huge importance on STEM subjects, and voluntary organisations such as HackHorsham provide extra resources to young people who want to embrace those new technologies.