Autumn Statement — House of Lords, 2015-12-03
Topic: Macroeconomics
Richard Cavendish (Conservative, Centre-right): My Lords, as other noble Lords have done, I commend my noble friend on securing this debate and on introducing it with such thought and clarity. This afternoon I will draw attention to various aspects of the Autumn Statement and do so largely through the prism of my own experience of living for most of my working life in south Cumbria. Accordingly, I declare a personal interest. Although I have surrendered the chairmanship of my family group of SME companies to my elder daughter, I remain involved and I refer noble Lords to the register of interests Not of direct interest to me but very well received in Cumbria as a whole was the announcement of the new Carlisle enterprise zone. It may well be that a number of northern noble Lords have campaigned for this. It is my understanding that the honourable Member for Carlisle, Mr John Stevenson, played a prominent part in winning this prize for the county. It is good news I was personally pleased by a number of announcements relating to housing, the fiscal treatment of the SME sector and much else. However, it remains the case that the SMEs still suffer disproportionately from the burden of regulation. I am happy to give credit to the Government for seeking with commendable rigour to address this problem. I join other noble Lords in the plea to finally address the simplification of tax—which, again, imposes on SMEs very badly I suppose that I have read thousands of column inches on the Chancellor’s Autumn Statement. There is the usual analysis of winners and losers. Two of the commonest themes are how lucky the Chancellor is with the economy and the OBR’s reading of it, and secondly, what a risk he takes with the windfall we taxpayers have handed him. On the first, I can say only that if the economy had worsened over the period I would have been surprised to hear his critics putting this down to bad luck. As to the risks he takes, he appears to have a greater confidence in our ability to grow the economy than do some of the commentariat. While I confess that his action took me by surprise, I share his confidence in the future. I cannot remember in my working lifetime there being so much excitement—in the north of England at least—and a sense of purpose in the SME sector, or, in my layman’s reading of the world, the economy in general History and politics are full of examples of people being handed a poisoned chalice. Some of us felt that it was a novel approach on the part of Mr Gordon Brown to poison the chalice just at the point when he was seizing it. If it turns out to be true that my right honourable friend the Chancellor of the Exchequer has in mind employment beyond his present job, I hardly think that he will want to make the same mistake On winners and losers, risks or the lack of them, fairness or otherwise, as the dust settles the commentators may conclude that the Autumn Statement was inconsequential. They would be wrong. An important feature of the Autumn Statement that has attracted almost no comment at all is that it is as much a statement of values and ideas as it is about the country’s finances. Here is why. I warmly welcome the general thrust of the Government’s policies towards devolution. We will never be a country at ease with ourselves until local men and women are once more accountable for the delivery of the services that our communities need and deserve. Now the opportunity really does seem to be at hand when it will genuinely be in the interests of local people to participate again. The rebirth of civic life is truly an exciting prospect and one that we should all support Those of us who have earned a living in the private sector have long known and understood that there is always scope to do more for less. All of us who have come through recessions have had to cut our cloth at one time or another. By contrast, the public sector and the trade unions have always insisted that any and all reduction in public spending must have a corresponding diminution in output. To their enormous credit, the Government, as far as I am aware for the first time ever, have exploded this myth. Under this Administration the state has got smaller I see that I am out of time, so I will finish by saying that there are other things that the noble Lord, Lord Judd, mentioned in terms of values and ideas. Our growth compares well with that of other economies. Our potential for exerting soft power remains significant. There is a radicalism in this Statement that repudiates the perception of national decline. With the Chancellor announcing additional resources for the Foreign Office, the Armed Forces, national security, the arts and other things, we have changed gear. I reflect that we are regaining some of our former influence, in a civilised way: not pushing others around, not grandstanding among nations, but positioning ourselves to defend our long-cherished freedoms and to grow and to build an economy that enriches all people and protects with a generosity of spirit those least able to fend for themselves.