Oral Answers to Questions

Barry Sheerman Excerpts

Tuesday 2nd February 2016 Commons Chamber

[Mr Speaker]

The east midlands have also been accommodated, as colleagues will have noticed.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

12. What steps he is taking to support start-up manufacturing businesses.

[The Parliamentary Under-Secretary of State for Life Sciences (George Freeman)]

As my right hon. Friend the Chancellor has made clear, the Government continue to turn around the historic decline in manufacturing that took place under the last Labour Government. In the autumn statement and in the speech that my right hon. Friend is making today, we are setting out our commitment to manufacturing. There will be £300 million for the high- value manufacturing catapult centre—[Interruption.] Perhaps Labour Members would listen. That £300 million programme will benefit the seven catapult centres in the United Kingdom.

We have doubled capital allowances for manufacturing companies, and we have put £1 billion into the aerospace and automotive industries at the Advanced Propulsion Centre, which includes a range of measures for small businesses. That is probably why the all-party parliamentary manufacturing group, which is chaired by the hon. and distinguished Gentleman, has said:

“British manufacturing is currently enjoying a resurgence, together with a reinvigorated interest in industrial policy.”

[Mr Sheerman]

That report was published before the last Budget. In fact, the manufacturing sector is astonished at the way in which this Secretary of State has waved the white flag at the Chancellor of the Exchequer. He has sneaked out the abolition of the Business Growth Service, sneaked out the abolition of the Manufacturing Advisory Service, and sneaked out the end of the GrowthAccelerator programme. Where is the industrial policy of this country, and what happened to the march of the makers?

[George Freeman]

I can tell the hon. Gentleman that the march of the makers is working. That is why we are leading the fastest-growing economy in Europe; it is why, interestingly, unemployment in the hon. Gentleman’s constituency is down by 60% and youth unemployment is down by 10%; it is why we continue to finance small businesses, which have received £2.5 billion through the British Business Bank and £35,000 in loans; and it is why we have doubled small business rate relief. From now on, 405,000 businesses will pay no rates at all. It is for those reasons that our economy is growing fastest—and that comes after 13 years during which manufacturing, under a Labour Government, fell to an historic low.