Spring Statement
Debate between Lord Hammond of Runnymede and John Redwood(5 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Hammond
What the hon. Lady has not mentioned is that business investment recovers to 2.3% next year, and, over the forecast, recovers entirely, so this is a cyclical change, not a structural change. There are two drivers. Of course Brexit uncertainty is having a damping effect on investment—I have said that before and I will say it again. The sooner we can lift it, the sooner investment will come into our economy, with welcome effect. But we cannot ignore what is happening in the car industry across Europe. A large part of this effect has been in our car industry. That is very worrying, but it is not a UK phenomenon; it is a much broader phenomenon.
John Redwood (Wokingham) (Con)
Given the fall in new car sales that followed the big increase in vehicle excise duty, other regulatory changes and the car loan squeeze, will the Chancellor now review policy towards the car industry to make it cheaper and easier to buy a new car made in a British factory?
Mr Hammond
As my right hon. Friend knows, we are not able, under the current regime, to discriminate between cars made in British factories and cars made elsewhere, but we do keep all fiscal policy under review, and I am acutely conscious of the pressures that the car industry is facing at the moment.