Reducing Costs for Businesses — House of Commons, 2022-01-11
Topic: Macroeconomics
Felicia Jane Beatrix Drummond (Conservative, Centre-right): It is a pleasure to speak in the debate and to support our businesses during this difficult time. I am full of admiration for businesses across Meon Valley, which have overcome challenges during covid for the most part with ingenuity, commitment and, of course, the support of Government and their customers I have heard from businesses, especially in manufacturing, that they have carried on with minimal disruption during covid, except for covid-related staffing issues. That is because of the underlying strength of the economy when we entered the pandemic. Those businesses have been able to trade fairly normally. The biggest challenge they face is the enormous disruption to the global supply chains. Those pressures are beginning to ease around the world, although there are still particular bottlenecks in some specialist sectors, such as semiconductors We should also recognise when we talk about inflationary pressures that they generally have global origins. We live in a world with pressures that are outside the control of any Government. Having said that, consumer prices in the UK have increased more slowly than in many economies, including several in the eurozone. Current UK unemployment is considerably lower than in the eurozone—4.2% as opposed to 7.3%—and among the lowest in the developed world We have created record numbers of jobs. We have more than 1 million vacancies across the economy. The economic picture is very different from that of stagnation that the Opposition motion paints. The final figures for economic growth in 2021 will look healthy and stand comparison with any other major economy Our plan for jobs will continue to help people find high-value work and ensure that businesses can continue to grow. There are two reasons why the fundamentals of our economy are positive. First, the basic economy was strong when we approached the pandemic, thanks to the past 10 years of a Conservative Government, which rebuilt our finances. Secondly, the Government supported businesses through the difficult times. The package of support for the economy has passed the £400 billion mark. That has defended families, jobs and businesses against uncertainty and the inevitable slowing down in some sectors during the pandemic The coronavirus job retention scheme supported 12 million workers when they could not be expected to work safely. However, funnily enough, the Opposition said that the scheme was a waste of money. Then there were predictions of mass unemployment as furlough began to end and business resumed activity. Those gloomy predictions did not turn out to be accurate and I do not think that the motion will be accurate. Businesses have been able to use loans and discretionary grants effectively, especially in the hospitality sector, which—I think we all agree—has faced the most challenges I wish every business in Meon Valley a successful 2022. As our economy continues to grow, I am confident that we are emerging from the pandemic in a relatively strong position and that our Conservative Government’s policies will continue to be good friends to business and consumers alike.