Global Economy

Chris Williamson Excerpts

Thursday 11th August 2011 Commons Chamber

[Mr Osborne]

The hon. Gentleman shakes his head. He obviously did not know that there was to be an increase in small business taxation. We have cut it.

We have also introduced support for the exports of small business. A central part of the strategy developed by Stephen Green as trade Minister is helping small businesses to export. I have already mentioned the Merlin lending agreements with banks, which are beginning to bring about an increase in lending to businesses that simply was not happening last year.

[Chris Williamson (Derby North) (Lab)]

In view of the flatlining economy, and given that inflation is set to hit 5%, the spectre of stagflation looms large. Can the Chancellor tell us why he is so wedded to crackpot Tea party economics when it is plainly failing the country?

[Mr Osborne]

It sounds like the shadow Chancellor wrote that question. Let me repeat what I said earlier: the proposal Barack Obama put forward in his speech at the George Washington university is for a deficit reduction in the United States of the same pace and scale as the one we are pursuing in Britain. That is because in America, too, they understand that they have to deal with their budget deficit.