Finance (No. 2) Bill
Debate between Lord Beamish and David Rutley(10 years, 8 months ago)
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David Rutley
My hon. Friend says, from a sedentary position, that it is a great place.
These are, of course, challenging times, but things are improving. The reason for having a Budget that is useful and important for business is that it is through business and the private sector that we create jobs to enable people to take care of their needs and those of their families. The hon. Lady will know—as will, no doubt, Mr Deputy Speaker, although he cannot comment—that under the Labour Government 100,000 public sector jobs were created in the north-west over a period when net new jobs in the private sector came to approximately 18,000. Surely, that is completely unsustainable.
Mr Kevan Jones
The neo-cons of the Conservative party think that public service jobs—nurses or cleaners in hospitals—are somehow worth less than private sector jobs. I do not subscribe to that. I put it to the hon. Gentleman that the growth in jobs he refers to was achieved through spending that his party agreed to throughout all that time.
David Rutley
Public sector jobs are vital, but I am talking about the need to get the balance right between private sector jobs and the size of the state. That is what we are seeking to balance. On the comment that he has made repeatedly throughout the course of the debate, I was not in this Chamber prior to the general election.
David Rutley
That is true, and so were the Prime Minister and others, but I was not. I was working in the world of commerce and had severe reservations, like other Members no doubt, about the policies of the Labour Government. Let us look at the results: the bust that was created after the boom. We are clearing up that mess.
It is a pleasure to speak about the Bill, and a pleasure to speak about the way in which it builds on the Budget. Not only does it make Britain more competitive on the world stage, but, crucially, it reduces the barriers to competition and consumer choice here at home. It is vital to our residents as well as to our businesses. It is a sensible, responsible Bill from a sensible and very responsive Government. It is a Bill for enterprise, intended to rebuild trust in our economy and in our public finances, and also to rebuild the trust that this Government are on the side of the consumer, taxpayer, the saver and, of course, the entrepreneur. That is necessary, because confidence in the economy and in the free-market system can be regained only by increasing the power of choice and market knowledge among consumers. The crisis of confidence—the trauma of trust—that we inherited was a natural reaction to the failures of the Labour Government, and threatened to damage wider belief in prospects throughout the market economy itself.
It was not just a market problem that we faced; it was the problems of yet another Labour Government that we were having to clean up. A great deal of good has already come from the reversal of Labour’s policies on tax, and their disposition to micro-manage and, of course, to mis-spend. This Government have been opening up the economy to transparency and to competition—not least in banking—and putting the consumer and opportunities for new entrants to markets first. It has been a long, hard road, and there is more to follow. The global race is a marathon, not a sprint. We inherited the extraordinary deficit that many Labour Members want to deny, which amounted to 11% of GDP between 2009 and 2010, but will be halved to 5.5% of GDP next year.
David Rutley
Of course, if the hon. Gentleman will agree that it is a good thing that we have been able to reduce the deficit to 5.5% of GDP.
David Rutley
I did: absolutely. In fact, as Hansard will record, I referred to “the extraordinary deficit” that had been created by the Labour Government.
A budget surplus is now in our sights. We are likely to see it in 2018-19. According to the International Monetary Fund—which is often quoted by Labour Members—the UK is achieving a larger reduction in both the headline and the structural deficits than any other major advanced economy in the world. Unemployment is falling, growth is up, and we have a record number of businesses and a strengthening culture of entrepreneurialism and self-employment. Those are clear results from a Government with a clear sense of direction.
This Bill will doubtless be remembered for years to come for the great work that it is doing to help to promote the interests of savers and pensioners through the reforms that it introduces in clauses 39 to 43, which we will debate in Committee.
Mr Jones
The hon. Gentleman has not broken my flow, but I thank him for the little breather to give my larynx a rest.
If one follows the logic of the hon. Member for Macclesfield, business should not get any subsidies whatever. But we all know that that is complete nonsense. The Government are now increasing investment allowances, but they cut them in 2012. We are now told that this is a great achievement of the Budget, but we are only back to where we were in 2012.
I am seriously concerned that we have a two-speed Britain. We have a housing market that has clearly been stoked in London and the south-east, and we have a stagnant north. The hon. Member for Hexham (Guy Opperman) described Hexham, which is a nice constituency, and in the north-east, but he is living in some type of parallel universe if he thinks that the north-east economy is booming. Well-paid jobs in the public and private sectors have been replaced by low-paid zero-hours contracts. Four out of five of the new jobs that have been created are low paid and in the service sector, not in the long-term sectors. Added to that—as a north-east Member the hon. Member for Redcar is voting for this—is a movement of the limited public finance that there is from the north-east and other areas to the south. For example, we have already seen the record level of cuts in public expenditure for councils in the north-east. Durham county council has lost 40% of its budget. Contrary to what the Secretary of State for Communities and Local Government says about 40% of a budget somehow being saved by cutting down on pot plants or the fripperies, that is not possible. It has to be done by cutting back on services and people.
As if that was not bad enough, there is more to come. In the Budget and as part of the process, Durham county council will now lose another £13 million. Gateshead council will lose nearly £8 million. Newcastle city council will lose a further £14 million. South Tyneside will lose £7 million and Northumberland nearly £4.2 million. That will take money out of the economy and redistribute it to those in the south. The cut per dwelling in South Tyneside is £101.50. In Sunderland, it is £90.45. Meanwhile, Wokingham—people will think I have a thing about Wokingham—has an increase of £55, and Surrey an increase of £51. The hon. Member for Redcar, the great champion of the north-east, is voting for these things, redistributing money from the north and north-east to the south of England. That is having an effect on jobs.
The hon. Member for Macclesfield might think that public sector jobs are not important, but I tend to think that they are. When one needs the NHS, people must be there. When home care is needed from a local authority, people must be there. If there is no money and deprivation indices have been removed, not only are those services being removed, but money is being taken from the local economy. That will have an impact on exactly the businesses that the hon. Gentleman argued earlier we should be supporting and growing.
David Rutley
The record will show that I did not say that public servants do not do a useful job, because I think that they do. Where do the interests of the taxpayer fit into the hon. Gentleman’s world, because I have not heard that mentioned in anything he has said? He seems to think that money grows on trees, rather than coming from taxpayers.
Mr Jones
The hon. Gentleman’s naive and simplistic approach is that the only way to grow the country’s economy is to sit back and wait for the great entrepreneurial spirits he talks about to grow up, as if by magic, and rescue the economy. Governments have a role to play in generating economies and delivering good, local public services. The idea that Durham county council, or any council, sits on that money is ridiculous; it spends the money in the local community, as do the people who work for it. It should come as no surprise to anyone—it might to him—that taking money out of an area, including the spending power of local authorities, public services and local people, will have an effect on private businesses, whether shops or services, because people do not sit on their money at home; they spend it in their local communities.
David Rutley
Whose money is it? It is not the state’s or the council’s. It is the taxpayers’ money, and there is a responsibility to spend it wisely.
Mr Jones
I totally agree. The hon. Gentleman should look at my record on Newcastle city council, because I always ensured that we got value for money. But there is a big difference between getting good value for money for the taxpayer and his suggestion that local authorities and public services spending money will somehow not have an effect on local economies. It should come as no surprise to anyone that taking money out of people’s pay packets, whether in local councils or public services, will have an impact on private sector jobs in local communities.
Europe
Debate between Lord Beamish and David Rutley(11 years, 10 months ago)
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David Rutley
As so often, I agree with my right hon. Friend. I hope to build on that thought.
The reality of the world economy is shifting patterns of trade and emerging markets. They have been tapping us on the shoulder for some time and are now tapping even harder. Some hon. Members in the Chamber today may remember John Major pointing out to Peter Mandelson that if we do not notice when reality taps us on the shoulder, one day reality will grab us by the throat. Yet it is sadly clear that the EU has become divorced from reality—from real people and from real lives. When the British people voted to stay in the European Economic Community in 1975, it was for real world reasons—for jobs, for growth and for the common market—and at that time the EEC gave every impression that that was its purpose. The EU needs to give us and our constituents similar cause for optimism today. There is an urgent need for reform and a fundamental resettlement in the UK’s relationship with Europe.
This is not about being little Englanders. It is about being big Britons who want to seize the opportunities available in the global marketplace; so do big Germans, big Swedes and big Danes—not to be confused with Great Danes—and we need to work with them, our reformist friends, against those who should be called little Europeans, who would turn our continent’s shoulder to the world. Just as we led Europe to the single market, we can lead in its completion and help our local businesses and our constituents to compete better on the global stage. The channel is little more than 20 miles across, but the gulf is huge between the global economic horizons of the big Britons we represent and the continental introversion represented by the little Europeans on the Opposition Benches.
The EU has been caught flat-footed in the economic crisis, and the euro—a political creation—has been caught in an economic straitjacket, yet there remains clear political will among many people in the eurozone for it to succeed. That has already led to calls for deeper, thicker integration and less flexibility at national level, and that is not the Europe that was voted for. We are told that we should not demand a Europe à la carte, yet the eurozone members chose to set up a new club within the club of Europe and—perhaps unsurprisingly, given the problems that the euro has caused—they are now demanding a European fixed price set menu. The Prime Minister is resisting this, quite rightly.
The bottom line for our constituents is this: are we better off in or better off out? Are we more likely to create jobs and economic growth, or are we to be suffocated by excessive regulation and told that our national Parliament cannot do anything about it? Those are important questions that we want answered. We do not want to fudge them. The Government have already taken important action, which the Foreign Secretary told us about. We wanted to ensure that, if transfers of power to the EU were proposed, they would have to be put to the British people first, and we have achieved that by creating the referendum lock. Rightly, no further powers can be transferred to the EU without the British people having their say.
The Government have already taken action to kick-start the debate on the resettlement with Europe. The review of the balance of the EU competencies will provide a national audit of what the EU currently does and what it means for our country, and it will provide us with the information that is needed to take future decisions about our relationship with the EU and in the referendum that now, thank goodness, lies ahead.
The House will not be surprised that I regard myself as a Eurosceptic. As I said at the beginning, in scepticism there is hope, contrary to what the right hon. Member for Southampton, Itchen (Mr Denham) said. On the Government Benches and across the country, Euro- scepticism is on the rise. The Prime Minister and the Foreign Secretary are surely right to press for renegotiation before an in/out referendum and to work with our partners for a more competitive EU and one that is worth considering voting for.
Some people have asked, “What are you considering repatriating?” or “What do you want to renegotiate?” I commend the fantastic work that is being led by my hon. Friends the Members for South Northamptonshire and for Daventry (Chris Heaton-Harris) on the Fresh Start project. A wealth of options is being put forward there—worked through, thought through and analysed carefully. Take a look. I think that Opposition Members will find something to learn there.
This negotiation must be aimed, laser-like, at improving our economic position, cutting through red tape, safeguarding our financial services, delivering government at the lowest possible level and trusting the people to have the final say. That is the Conservative way. But in their heads the Opposition, with a few notable exceptions, do not want the British people to have their say. The reality of the Labour Government was the Lisbon treaty, with no promised referendum at the end.
David Rutley
I have given way twice already.
The Opposition prefer the top-down, little European approach which I spoke about, where EU membership is a price worth paying and staying in an unreformed EU is worth any price at all. How depressingly pessimistic that is. How unambitiously 20th century of the Labour party. It is here, on the Conservative Benches, where Members are fizzing with ideas for a sustainable, successful and competitive Europe, which I suggest the Opposition should take a look at. The Prime Minister has taken a bold approach. It is the right approach for Britain; it is the right approach for Europe; it is optimistic and reformist; and it is based on reality—the reality of where we are, where we could be and where we should be to compete in the globally competitive marketplaces that we face today.