Budget Resolutions — House of Commons, 2017-11-27
Topic: Macroeconomics
Michelle Emma May Elizabeth Donelan (Conservative, Centre-right): This Budget is outward looking and is designed not only to weather any potential storms from Brexit, but to seize the opportunities that they may bring for us as a global-facing country There has been some talking down of our economy recently, and, specifically, in this Chamber today. It would be foolish and naive to oversell the economic state of the country, but it is crucial that we stop this negative Britain bashing. It is damaging our economy, our morale and our ability to attract inward investment Let us remind ourselves of some of the key facts: the UK has now seen 19 consecutive quarters of continuous economic growth; employment is up by 279,000 from a year ago; and another 600,000 people are forecast to be in work by 2022. In Chippenham, my constituency, youth unemployment has fallen from 7.5% in 2012 to 2.5% now. The number of VAT-registered businesses has risen by more than 2% in the past tax year alone. Yes, the growth forecast for 2017 has been reduced from 2% to 1.5%, and forecasts for 2018 to 2021 have been revised down, but the reality is that the economy is still growing. It is irresponsible and incorrect to suggest otherwise. Moreover, it is the predicted rate of growth that has been revised down. The key words there are "predicted" and "growth". The post-Brexit figures are, in fact, far better than some have predicted. The real worry here is the productivity lag, which we need to fix. The Budget highlighted the Government’s understanding of that and the need to target it, which seems to have been omitted and overlooked by the Opposition We have invested half a trillion pounds in our infrastructure since 2010, and the Budget builds on that, including transport measures to help productivity. The Budget also announced the largest boost to research and development support for 40 years, with a further £2.3 billion investment from the National Productivity Investment Fund. The Budget means investment in our digital infrastructure. The increase of the National Productivity Investment Fund to £30 billion will help investment in technologies such as artificial intelligence and driverless cars. It will have an impact up and down the country, particularly in my constituency in AB Dynamics, and in Dyson, which is across the border in North Wiltshire Investing in and fostering skills is vital to productivity, but they have to be the right skills for our economic success, which is why the Budget’s focus on T-levels, mathematics and computer science, is so important. As an aside, I look forward to the long-anticipated publication of the careers strategy, which I hope will foster a greater link between careers advice and the labour market’s needs and predictions. By continuing to make work pay, this Budget will also help productivity. I am talking about the increase in the personal tax allowance to £11,850 and an increase in the national living wage by 4.4% In conclusion, we are the fifth biggest economy in the world. Since 2010, we have 1 million more businesses that are creating jobs. We are the fifth largest exporter in the world and the top destination for inward investment in Europe. Let us not talk down Britain or our growing economy. As I said at the beginning of my remarks, that is irresponsible and incorrect. Yes, there is much that we need to do to foster growth, but this Budget recognises that and focuses on targeting the productivity lag. It is a plan for Britain of which we can continue to be proud.