Budget Resolutions and Economic Situation — House of Commons, 2015-03-18
Topic: Macroeconomics
David Henry Rutley (Conservative, Centre-right): I wish to add my thanks for the great work that the hon. Member for Taunton Deane (Mr Browne) has done during his service in the House. I worked closely with him in the Home Office and he did an outstanding job as a Minister. His decision to leave the House will be a sad loss to us It is a pleasure to speak in this debate, because the Government’s long-term economic plan is working and Britain is back in work with record levels of employment. We accept that further work remains to be done to achieve our aims, and that is our theme—we have achieved much, but there is still further to go. That is the driving force behind the Budget. It is a go-ahead Budget for those who want to get on, whether in Macclesfield or across the country. It includes support for savers, pensioners and hard-working families—and for small businesses, as the hon. Member for Dumfries and Galloway (Mr Brown) pointed out In Macclesfield, we have seen unemployment fall by more than 50% since 2010. That is a significant fall that is making a real difference in the lives of many people and I do not want Labour to put that in jeopardy. The Budget shows that we are the optimists. We have realistic plans and we are the party of ideas, leading the agenda that will keep the momentum of the British economy moving forward, with more jobs and greater success. That is particularly important in the north-west—I represent a seat in that area—where gross value added per head has grown by 3.4% per annum according to ONS statistics, a record unsurpassed in other parts of the country. I welcome that. After the disaster of the last Labour Government, and their internationally poor performance, the UK has now got an internationally praised rate of growth—the fastest in the G7, as we heard today. We have improved our position in the important international league of competitiveness, with rates of growth that are sustainable, unlike the unsustainable growth rates that were mentioned earlier The Government have delivered, the Budget will deliver more, and the next Conservative Government will deliver more again. No stone has been left unturned by the Government in their attempt to reduce regulatory burdens and enable the financing and growth of British businesses. It is right to continue those important efforts Specifically, we need to focus on enabling opportunities in the north-west. Many Members on both sides of the House want to rebalance our economy, which is why we are seeking to create a powerhouse of the north. There will be an extra focus on infrastructure projects in the north, such as the northern hub. We will ensure that there is extra capacity on trans-Pennine rail routes. We will focus on key sectors in the economy, in particular life sciences, which are vital in north-east Cheshire and Macclesfield. It is vital that we transfer power and finances to unleash civic renewal and to take the concept of the powerhouse of the north forward. That will require strong local partnerships. The Government will work not just in word but in deed to take this forward. We saw that today, with the announcement by my right hon. Friend the Chancellor of a new pilot to retain and pool 100% of additional business rates growth between Greater Manchester and Cheshire East council. That is the sort of strategic partnership we want between city and county to drive growth in the north and across the country. That success breeds growth. This is a pro-growth agenda, a pro-north agenda and, importantly, a pro-small business agenda Small businesses are the engine of our economy, particularly in terms of creating jobs. Since 2010, the total number of businesses in the UK has grown by a staggering 760,000 to 5.2 million, the highest number ever. The number of employers has increased since 2010 by 52,000—another fantastic achievement. There are surely more of the 4 million or so small businesses currently without employees—76% of all businesses—that could take on an additional member of staff given the right market conditions. We have been working hard to create those conditions. There are signs that this is happening, as the Federation of Small Businesses stated on the publication of its latest "Voice of Small Business Index" To ensure that the economy continues to thrive, we need to keep the focus on optimal conditions for the four Es: the entrepreneurs, the employers, the exporters and the employees. We want to keep the focus on people who are new to those roles. We want to help them to move forward and to get ahead, particularly those who do not have family history in these areas. We want to be the party of opportunity and ambition to help them to achieve their dreams We have record levels of self-employment, which is to be celebrated, but there is a lot more that can be done to help first-time entrepreneurs. The new enterprise allowance has helped. Today, we heard in the Budget the announcement of the abolition of class 2 national insurance contributions for the self-employed. That, combined with annual tax returns being fundamentally changed, will help more people to achieve their ambitions We have done more to help first-time employers. We have to do more to help to signpost the opportunities available and tackle the perceived and real barriers that confront them in taking forward their ambitions We want to do more for exporters. We heard about the improving current account deficit. We are on the right track, and I am pleased that the Chancellor announced today that more resources will be available for UK Trade & Investment to support our vital work in China We must not forget first-time employees. We have to help more young people in particular to get across the line and get that first job. We have done lots to enable more people to take on apprenticeships and traineeships. We have looked hard at how we can help to improve academic rigour. Real wages are now improving and there have been increases in the minimum wage. A lot is being done, but there is more to do. I hope very much that the voters, not only in Macclesfield but across the country, will recognise the economic achievements of this Parliament and the aims of this Budget, and vote for a Conservative Government to get the job done.