Autumn Statement

Adrian Bailey Excerpts

Thursday 5th December 2013 Commons Chamber

[Mr Osborne]

The short answer I can give my hon. Friend is yes. He brought to the Treasury an innovative scheme, on behalf of the people of Gloucester, to deal with the debts in the housing sector and enable the building of new homes. In our document, we reference the scheme specifically and give it our support in principle.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

In the past, the Chancellor often condemned economic growth based on an expansion of consumer spending and consumer debt, as opposed to investment and exports. We now have economic growth based on consumer spending, while exports and investment lag. I think there was in part an acknowledgement of that in the extra money for UK export finance. Unfortunately, he did not clarify whether the main obstacle to small businesses exporting our way out of recession is the drop in the minimum threshold for a deal from £5 million to a lower level, which the CBI says would bring in an extra £20 billion if implemented. Will he clarify whether he is doing that?

[Mr Osborne]

I will look at the hon. Gentleman’s specific point. We are expanding the scheme to help small businesses export, which is one of our central objectives. If we can go further, I will happily look at that and take it forward in the Budget, because that is our shared objective. We want more exports, but the issue is that our main export markets have been in a deep recession for the past year. It is not surprising, unfortunately, that exports have been hit. That has led to companies exploring opportunities much further afield. One of the best things to do for small exporters is to ensure that, when they turn up in places such as Shanghai, there is a helping hand, with facilities and an office available for them to start their search for partners. That kind of thing is precisely what we are funding today.