Economy: Growth

Lord Roberts of Conwy Excerpts

Tuesday 22nd June 2010 Lords Chamber

Asked by

[Lord Roberts of Conwy]

To ask Her Majesty’s Government what is their strategy for promoting economic growth.

[The Commercial Secretary to the Treasury (Lord Sassoon)]

My Lords, today the Government have outlined their plan to support a private sector recovery and create the right environment for enterprise and sustainable growth. It will restore the UK’s international competitiveness through lower and simpler business taxation, and through cutting red tape. Fundamental to this strategy is tackling the budget deficit and providing the stable macroeconomic environment needed to underpin private sector investment and growth.

[Lord Roberts of Conwy]

I am grateful to my noble friend for that reply, supported as it is by the eximious Statement by the Chancellor of the Exchequer earlier today. Does my noble friend agree that, as we cut the record deficit left to us by a prodigal Government, one of the first essentials is to restore the confidence of the private sector to encourage businesses to invest, create jobs and bring about the prosperity that the country really needs?

[Lord Sassoon]

My Lords, I completely agree with my noble friend Lord Roberts of Conwy. Business confidence will now be underpinned by a credible deficit reduction plan, which will see the current structural deficit in balance by 2014-15. The public expenditure on infrastructure, which this country needs to underpin growth, is being protected and not further cut. Corporation tax will fall from 28 to 24 per cent over four years; entrepreneurs’ lifetime capital gains tax relief is being increased from £2 million to £5 million; the national insurance contribution threshold will increase by £21 per week above indexation; the enterprise finance guarantee is being expanded by £200 million to ensure that credit flows to business; and a new regional growth fund will be established. It is estimated that these and other policies will increase business investment by an additional £13 billion up to 2016.