(13 years, 8 months ago)
Commons ChamberThank you, Madam Deputy Speaker, for allowing me to follow that very lengthy and detailed speech by the hon. Member for Huddersfield (Mr Sheerman).
This debate needs to cover several points, some of which were referred to by my hon. Friend the Member for Beverley and Holderness (Mr Stuart), the Chairman of the Education Committee. For example, unfortunately we have a huge number of NEETs in our country. That is a measure of the failure to deal with children in early years education in a proper and satisfactory way. Until we got into government, there was a failure to deal with the widening inequality gap—a damning indictment—and we have to tackle that.
I want to say a few words about resources. This debate is, to some extent, influenced by the fact that we are in a period of reductions in public expenditure, so it is worth noting that we spend almost 40 times as much paying interest on this country’s debt as we do on the subject that we are talking about. That puts our funding difficulties into perspective.
Of course, we have Sure Start facilities in my constituency—for example, Treetops in Dursley, which is first class. It is very important to ensure that Sure Start really does what the label says. The right hon. Member for Birkenhead (Mr Field) is right that it is a very good brand, and it does say something that is really encouraging—a sure start. However, we must be completely certain that that is exactly what happens. My hon. Friend the Member for South Northamptonshire (Andrea Leadsom) was right to talk about the importance of evaluation and ensuring that Sure Start works in every different area.
I want to give an example from personal experience. My own family were lucky enough to have access to a children’s centre some years ago when my son was three years old, and we certainly benefited as a family, but this is more about the other families who were from more disadvantaged backgrounds than ours. They clearly stated that in terms of opportunities and development, the differences between the younger children who had access to children’s centres and their older siblings were very noticeable within the same families, let alone on the same estates between different families. That evidence was very strong, and I could see it at first hand.
(14 years, 5 months ago)
Commons ChamberFirst, I pay tribute to my hon. Friend the Member for South Northamptonshire (Andrea Leadsom) for an excellent speech on an important subject—regulation and competition in banking—that was worth while and useful to hear. I should like to refer, too, to a comment by the hon. Member for Great Grimsby (Austin Mitchell), about his love of borrowing. Borrowing is not exactly always a bad thing, but there is simply too much borrowing now, and that is what we have to address. We have to remember that £1 in every £4 that we spend is borrowed, which is ridiculous.
The hon. Member for Nottingham East (Chris Leslie) has disappeared, but I want to make two points about his observations. First, he said that we would cut capital expenditure. Actually, we are not doing so. The Chancellor made that perfectly clear, and we must repeat it often, so that people understand that capital expenditure is not going to be cut. Secondly, the hon. Gentleman discussed cuts in Nottingham East in local government and the health service. If he had been in Gloucestershire before the general election, when Labour was in power, he would have noticed that it was subject to cuts, too, in the number of beds in our hospitals. Those cuts, and his cuts, are all about the fact that the Government are facing a situation summed up neatly by the former Chief Secretary to the Treasury, the right hon. Member for Birmingham, Hodge Hill (Mr Byrne), who observed that
“there’s no money left.”
Whichever party, or set of parties, won the general election, there were going to be changes, and I am afraid that we have to face up to the consequences. This is not just a Budget about cuts; it is not just a Budget about being responsible in dealing with those cuts; it is not just a Budget about being fair to everybody, although it certainly is—we are being fair across the board in the amount of expenditure being cut and the changes in taxation; but it is a Budget about growth, and we must remember that. It includes useful tools to encourage small and medium-sized businesses to begin growing again.
The hon. Gentleman makes the point that we need a Budget for growth, and has just begun to discuss small and medium-sized businesses, and the important role that they have to play. However, does he agree that if we take the stimulus out too fast, it will prevent those businesses from playing the role they need to play in growing the economy again?
The point I am making is that we are providing stimulus for small and medium-sized businesses to get going. We are not going to increase national insurance, for example, as the Labour Government would have done, which is a significant step in the right direction. We are introducing a green investment bank, to make sure that small businesses can develop new technology, which is good news and a stimulus. We are going to ensure that there is more business rate relief for small businesses.
All those steps will help small businesses to progress, and it is important that we help them to do so, because, if we are really to protect our economy, we must not just deal with the deficit, although that is important, but ensure that we have growth. That growth will come in large part from small and medium-sized businesses. I know that from my constituency, because I keep being told, “We would like to have a simplified taxation system,” and that is what we will introduce through the Budget; I keep being told, “We would like to see lower corporation tax levels,” and that is what we will introduce through the Budget; and I keep being told, “We would like simpler ways of employing people,” and that is what we will introduce. Those measures will help small businesses to deliver the growth that we need and, through that growth, the increased tax receipts that will further help to reduce the deficit.
It is important to emphasise that aspect of the Budget and, indeed, our whole economic plan, but we are going to go further, with the banking levy, which we have briefly discussed. That will be useful, too, because it sends a signal to banks that they must act more responsibly, and obviously as a levy it is also a money-raising measure. I must emphasise that, if we want to create an economy that can cope with the deficit, we must recognise that the ingredients for growth are important, and that the Budget provides them. It is important also to recognise that, throughout the entire time that I have been in the Chamber this afternoon, Labour Members have not talked about that; they have always talked about cuts. Yes, cuts are here; yes, they are quite serious; and yes, they are going to be painful for some. But, it is better to tackle that problem now in a responsible and planned way than effectively to back off and ignore it, because unless or until we start reducing the deficit significantly we will not be able to produce the growth that this country needs.