Economic Growth and Employment

Debate between Baroness Burt of Solihull and Mark Lazarowicz

Wednesday 23rd November 2011 Commons Chamber

[Lorely Burt (Solihull) (LD)]

When I read the title of this debate—about supporting business to encourage economic growth and employment—I hoped that all the parties might for once argue constructively to come up with ideas together. I am sure that we all agree that business in this country needs support, and we all want it to get that support. On the economy, however, that is probably where the consensus ends. The coalition Government cannot abandon their plans and adopt the seductive mantra of going less far, less fast. The consequences of doing that can be seen across the channel in Greece, Portugal and Spain, which have borrowing rates of 32%, 11% and 7% respectively, compared with Germany’s 1.82%, France’s 3.12% and the UK’s 2.28%.

[Mark Lazarowicz]

The hon. Lady is in danger of becoming complacent about the Government’s policies, which, as has been pointed out, are resulting in an increase in borrowing well beyond what was predicted. Is there not a danger that the UK could become the target of those who want to speculate on rising debt? We need a change of policy internationally, as was suggested earlier, to prevent the entire world economy from falling into a cycle of more depression, recession and less growth. That is the answer. She should not be complacent about the situation in the UK as a result of the Government’s policies, which are leading to increased borrowing.

[Lorely Burt]

I am grateful to the hon. Gentleman, and he is absolutely right to say that there is more borrowing than we had anticipated. However, the amount of borrowing will be going down year on year. I am sure that my colleagues on the Front Bench would agree with me that we cannot get out of a debt crisis by borrowing more. At some stage we have to start actually paying the money back. The UK is borrowing at low rates—we have that confidence. Let us just imagine how many more jobs would be lost and how many more people would be suffering if we were borrowing at 32%—that is, if we were in one of those dark places.

The motion starts with the usual party knockabout. For example, we are supposedly “choking off” growth and

“failing to use strategically procurement and other tools to drive growth and innovation”.

However, it is not true that we have failed in that respect. We have cut corporation tax, and by the end of this Parliament we aim to create the most competitive corporate tax system in the G20. Research and development credits will rise by 200% this year and 225% next year. Then there is regulation. We have scrapped the proposals that the hon. Member for Ellesmere Port and Neston (Andrew Miller) was talking about, with savings to business currently amounting to £350 million a year. Whatever we did in our little Committee, it never amounted to that sort of saving. We have also introduced a moratorium on new regulation for micro-businesses.

Then there is technology and innovation centres, and so on—I do not have time to say much more in five minutes.

Youth Unemployment

Debate between Baroness Burt of Solihull and Mark Lazarowicz

Wednesday 9th November 2011 Commons Chamber

[Lorely Burt (Solihull) (LD)]

I shall be very brief. There is not enough time to cover everything mentioned in the motion, so I will avoid the usual political knockabout in the first part of the motion, which is the Labour narrative about how we got into this economic situation. Those arguments are well rehearsed. What matters is not how we got here, but how we get out. I agree with some of the suggestions the Opposition have made. I have long campaigned for a 5% VAT rate on home renovation materials and have asked the industry to analyse the cost-effectiveness of that proposal.

[Mark Lazarowicz]

Will the hon. Lady give way?

[Lorely Burt]

I will not, if the hon. Gentleman will forgive me.

I agree that we could work up a programme to give national insurance relief to small companies taking on new workers, maybe even in the form of a rebate after the first complete year of employment. I have got lots of other ideas, which I hope colleagues in the Treasury will consider. Again, I agree with the Opposition: we need more incentives to stimulate private business to rev up the engine of growth.

It all boils down to growth, but it must be growth in the private sector, not growth led by creating jobs that do not exist, which is what one could argue the future jobs fund did. The Minister has outlined all the steps we are taking to create jobs and prosperity. The motion says only two things about youth unemployment: that long-term youth unemployment is up, and that we should not have scrapped the future jobs fund. Well, youth unemployment is up, but it grew under Labour by 40%—going from 664,000 unemployed 16 to 24-year-olds in May 1997 to 924,000 in May 2010. According to the latest statistics, that figure is 991,000. I hope that a Labour Member will intervene to explain to me how that equates to a 68% increase because, according to my mathematics, that seems more like 7%.

Women (Government Policies)

Debate between Baroness Burt of Solihull and Mark Lazarowicz

Wednesday 8th June 2011 Commons Chamber

[Lorely Burt]

The Government are investing more than £3 billion in this, but every single factor cannot be taken into account in determining whether the outcome will be better or not. The Government are looking into what we can do about child care costs. The hon. Lady raises an important issue, which I know is being taken very seriously by my hon. Friends on the Front Bench.

Under the proposed system, 31% of women who are entitled to benefits will be better off than they are at the moment. In addition, women returning to work after having children will be able to build up their hours gradually without being unfairly penalised by the system. It will also help take-up. In 2008-09 only 80% of people took up child tax credits. There has been much discussion about that today. I hope that changing to a simpler system will ensure that those who need the money get it.

However, I agree with the sentiments expressed in the motion about the disproportionate effect of the planned increase in the pension age on women born between December 1953 and October 1954. I am delighted to see that the Minister of State, my hon. Friend the Member for Thornbury and Yate, has come into the Chamber. I declare an interest: I am one of those women. Although I expect still to be going like a train at the age of 70, I entirely understand where those women are coming from and the unfairness of imposing change too late for many to do anything about it. I therefore ask my hon. Friend the Pensions Minister to do all he can to ensure that the proposal is reconsidered and a measure introduced that will be a little fairer to that tranche of women.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

I am glad the hon. Lady has made that plea to her party colleague, the Pensions Minister. I am sure that many other colleagues will make the same point. Does she agree that women who are upset and worried about the change need a decision soon? It is causing many of them great anxiety and stress, and they cannot be expected to go on for months wondering whether there is to be a change or whether they will have to put up with the unfair increase in their pension age.

High Speed Rail

Debate between Baroness Burt of Solihull and Mark Lazarowicz

Wednesday 9th June 2010 Westminster Hall

[Lorely Burt (Solihull) (LD)]

I add my congratulations to the hon. Member for Edinburgh North and Leith (Mark Lazarowicz) on an informative speech, particularly about the benefits of high-speed rail. I shall look up some of his statistics in Hansard for my own use. My constituency is in the west midlands and includes Birmingham International airport and the national exhibition centre. I shall take account of the comments made this morning, but I shall confine my remarks to the first phase of High Speed 2, for which I am a strong advocate.

Passenger numbers have risen by 40%, and freight has increased by 60% over the last five years. Clearly, there is a big appetite in this country for high-speed rail and the benefits that it can bring, which were so ably outlined by the hon. Gentleman. We need a dedicated high-speed rail line that is independent of the creaking Victorian network, although that network has served us well in the past and continues to do so. I take on board the point made by the hon. Member for Banbury (Tony Baldry) that any improvements or new rail services must not be made at the expense of the existing network. We must ensure that the service improves for those who currently use our creaking commuter network, which should not be neglected in favour of high-speed rail.

We have the prospect of being able to travel from Euston to Curzon Street in Birmingham in 49 minutes. According to my figures, the train speed is 225 mph, although the hon. Member for Banbury mentioned 250 mph; either way, it is fast. We hope there will be a Crossrail interchange at Old Oak Common and we support the idea that Crossrail must go ahead; it is hugely important. Funding for Crossrail and High Speed 2 can be imaginatively secured, with a large proportion of investment coming from private industry or from some form of national infrastructure bank, as recommended by the Liberal Democrats before the general election. I am sure that it can be done and that the benefits can be proved.

We expect this phase of HS2 to start in 2017, and to have passengers on the trains in 2026. That is a long time, and I have a lot of sympathy with the hon. Member for Blackley and Broughton (Graham Stringer), who intervened earlier to ask where we should start. If we can get the funding, perhaps we should start at both ends of the line so that it does not take such a long time to complete the network. I am sure the Government will look at that.

It is not all good news. There are many planning considerations and much of the investment in the first phase of HS2 will go on existing railway lines such as the Chiltern line, which will track the A413. I have a particular concern for parts of the Warwickshire countryside in the west midlands. People must be consulted properly, which, for me, means that there is no foregone conclusion—otherwise, it is not a consultation. There must be proper compensation for anyone who suffers as a result of these plans. When a second runway at Birmingham International airport was proposed, a terrible blight was created which in some cases still hangs over residents in the local area. It is important to avoid that blight, as it puts people’s lives on hold and creates more misery than is necessary. On the bright side, according to research by the Department for Transport, which I read this morning, every reduction of one minute to a commuter journey adds £1,000 to the value of a house in the relevant area. Somebody will benefit, although I am not sure who that will be in the west midlands.

The justification for HS2 must be that it is part of a wider strategy. Like the previous Government, this Government are committed to a strong carbon reduction programme. We must show that we will shift people away from the roads and the air and on to rail. The hon. Member for Edinburgh North and Leith mentioned the Liberal Democrat plans, and part of the coalition agreement was that we will move from passenger charges on planes to a charge per plane. That will help in the reduction of carbon.

[Mark Lazarowicz]

I am grateful for the hon. Lady’s kind comments about my opening speech. I am aware of the Liberal Democrat and Conservative policy of moving away from individual taxation. However, I think that the Liberal Democrat manifesto also suggested a potential increase in duty, which I welcome. Is that part of the coalition policy?

[Lorely Burt]

I am afraid that it is above my pay grade to comment further on that. The coalition Government will be working on this issue, and the Minister may wish to refer to it in her remarks.

Increasing people’s ability to travel is a bit like Boyle’s law—demand expands in relation to the existing capacity. We have seen that with the motorway network. Every time new roads are built or a motorway is enlarged, traffic increases more than would be expected under normal predictions. We must be careful about that. During the three weeks the Minister has spent in her job, I do not know whether she has given any thought to how we can make it easier for people to travel less. That must obviously be an aspiration.

I will conclude by considering some of the economic benefits that HS2 would bring to the west midlands. In terms of employment, we have probably been the hardest hit of any region. We have a strong manufacturing base, but that has also been hit hard by the recession. On behalf of people in the west midlands, I am looking forward hugely to the airport link. The extension of the single runway at Birmingham International airport will mean huge inward investment, and along with the high-speed rail link to London and the north, that will make the west midlands a central economic hub, which I welcome.

The national exhibition centre will benefit hugely from the fact that High Speed 2 will stop there before moving on to Curzon Street in Birmingham. It is important to get on with this scheme. I am sure that we can use our imagination and ability so as not to damage the existing rail network, which we must work on and improve. High Speed 2 is a wonderful thing, but it is not everything. We must look at the whole picture and ensure that the experience of the rail traveller—whether on High Speed 2 or on local railways—is a good one.