The Economy — House of Commons, 2018-03-22
Topic: Macroeconomics
Giles Francis Watling (Conservative, Centre-right): It is an honour to follow the hon. Member for Peterborough (Fiona Onasanya), and I do so with good heart, because although Tendring District Council has experienced year-on-year revenue support grant reductions, we are flourishing and have not cut one frontline service. That can be done; we are a lean, mean administration machine Unlike the hon. Member for Bootle (Peter Dowd), I recognise that it is springtime and our economy has gone beyond green shoots. The financial sap is positively rising: unemployment is at a near record low; the deficit is down; and there is more investment in our vital public services, including £4.2 billion for our NHS. That means that the "Agenda for Change" staff in England are to receive a pay rise of at least 6.5% over the next three years. As the Secretary of State for Health tweeted yesterday: "Rarely has a pay rise been more deserved." I thoroughly agree I was delighted to hear in the spring statement that there may be capacity for further increases in public spending and investment in the years ahead. Of course, that would be done while continuing to drive value for money to ensure that not a single penny of precious taxpayers’ money is wasted. It is therefore good news that the most recent forecasts of the Office for Budget Responsibility suggest that economic improvements will be maintained. It is also clear to me that the economy is already beating the forecasts and correcting the naysayers, and I have no doubt that it will continue to grow, create jobs and beat those expectations after we leave the European Union. This is a time to celebrate those improvements, not talk them down, which can only do damage to our prospects I was also pleased to hear the OBR’s projections that following Brexit our payments to the EU will be £4.9 billion lower in 2025 than they are today. Consequently, I maintain that there will be opportunities to spend in both the short and the medium term, which brings me neatly on to the question of where that money should be spent I believe that some of the money should certainly be spent on business and infrastructure. In a previous life, when I was Tendring’s cabinet member for regeneration and inward investment, I saw at first hand how support for businesses and infrastructure can pay tremendous dividends for economic growth. At the core of all that is the need not just to make cash available, but to make sure that it is spent in a timely and appropriate manner, and used to build infrastructure for future growth. It is a question of i before e—infrastructure before expansion In my previous role, I made grants of up to £150,000 available to businesses in Tendring so that they could grow, flourish and create new jobs in manufacturing, engineering, energy, low-carbon, maritime, and research and development activities. That cash came from the Tendring District Council small and medium-sized enterprise growth fund, which I introduced. We could move quickly and effectively, and therefore grow a great reputation as a business-friendly council. Moreover, being a district that very much marketed itself as open for business meant that we turned heads towards our glorious sunshine coast For example, with £16,000 from our growth fund, we managed to attract the Lampshade Company, a bespoke shade manufacturer, to our patch. We also got Ball Launcher with a £70,000 grant. It makes a football launching device to train players—very topical. When it came, it brought jobs with it, and that happened because Tendring was a council that was out there touting for business. Those are examples of committing cash for infrastructure. Business gets excited and then wants to work with us and to invest—it is a win-win situation That is why, like my right hon. Friend the Member for Witham (Priti Patel), I regularly use my position in this House—I am sure that many hon. Members have noticed this—to call on Ministers to spend more on roads and rail for Clacton and the east coast to address the fact that it takes far too long to commute from Clacton to the capital. The distance is only 70 miles, but the journey takes nearly one hour and 40 minutes by train. If we cut that journey time to closer to an hour, we would regenerate the east of Essex at a stroke It will come as no surprise to hon. Members that I ask the Chancellor to consider diverting some of the Brexit dividend to Clacton’s much overlooked infrastructure. Investment should be delivered locally, to unlock the economic potential of communities such as Clacton; regionally, to improve connectivity between our economic hubs, including through the improvements to the A120 that we have long called for; and nationally, to rebalance our economy. Crucially, that investment will not only attract business, but upgrade the UK’s infrastructure and underpin the Government’s modern industrial strategy, which is good for our economy and our country It would be remiss of me if I did not ask, during this period of strong economic development, that the Chancellor listens to the representations of my right hon. Friend the Defence Secretary and ensures that our military gets the £2 billion a year it needs to deal with constant and growing threats, and rising equipment costs. I am a member of the armed forces parliamentary scheme, and I have worked closely with our military personnel, who do an exceptional job in difficult circumstances. As a result, it has become clear to me that while our forces are, on the whole, superbly equipped, they need serious support to enhance their capability. It is imperative that those hard-working, brave men and women feel valued and supported Following our success in removing the cap on the police precept, I have no doubt that the Government fully support our hard-working local police forces, for which I am incredibly grateful. I would, however, now ask that the Government use some of the Brexit dividend to do the same for our valiant and professional armed forces.