Economy: Growth

Lord Bilimoria Excerpts

Tuesday 22nd June 2010 Lords Chamber

[Lord Sassoon]

My Lords, I have given the total employment numbers, which will rise in every year of the forecast period. The issue of jobs in the public sector, and indeed in the private sector, has to be put in the context of the enormous deficit-reduction programme that we have. For example, by the end of this period, on the new projections resulting from my right honourable friend’s Budget today, there will be an annual saving of £4 billion in interest payments alone by the end of the period, so you can see how that will translate into increased jobs in the public and private sectors.

[Lord Bilimoria]

My Lords, I am sure that the Minister would agree, as many do, that cuts are essential. Are the Government worried that increasing tax rises could hamper growth and lead to a double-dip recession? Do they genuinely believe that they are doing enough to generate the growth, particularly among SMEs, that is desperately required?

[Lord Sassoon]

My Lords, I thank the noble Lord, Lord Bilimoria, for reinforcing again the importance of growth. I stress that the overall Budget package includes a substantial number of measures that are intended to encourage growth by taking nearly a million people out of tax at the bottom end of the income scale and therefore encouraging them into jobs; by substantial reversals of the previous Government’s package on national insurance contributions; by having a regional element to the holiday on national insurance for young businesses; by ensuring that the capital gains tax provisions are sensitive to the needs of entrepreneurship; and, fundamentally, by reducing the corporation tax burden on companies through our reform of corporation tax, which will enable us to have the most competitive corporation tax regimes in the developed economies.