Economic Growth and Employment

Lord Watts Excerpts

Wednesday 23rd November 2011 Commons Chamber

[Vince Cable]

I can give a bit of substance in answer to that. The National Institute of Economic and Social Research, which has been critical of the Government in some respects, has done its own simulation. On the use of fiscal policy to support growth, which I think is what the Opposition plan B is all about, it says that in order to stimulate growth from 1% to 2% we would need to have a Government borrowing account of about 12% of GDP. Is that actually what the Opposition are proposing, because that is what their plan B—fiscal stimulus—means?

[Mr Dave Watts (St Helens North) (Lab)]

The Secretary of State is very good at talking about the support he gets for deficit reduction. When he is travelling around the UK, do people support his growth policies, because I have not met a business man who does?

[Vince Cable]

I have tried to explain that wherever I go, not just in the business community, there is an understanding that, given our inheritance, we have to pursue fiscal discipline. It is as simple as that. We will support that with economic growth measures that I will develop, responding to the comments of the hon. Member for Streatham, in a moment.