Budget Resolutions and Economic Situation

Debate between Damian Collins and Andrew Love

Thursday 21st March 2013 Commons Chamber

[Mr Andrew Love (Edmonton) (Lab/Co-op)]

I accept what the hon. Gentleman says about those schemes, but the main funnel for credit provision to small businesses is the funding for lending scheme. That scheme is not working as effectively as we would want. Is he disappointed that there were no initiatives in the Budget to improve funding for lending to address the small business problem?

[Damian Collins]

We should look at the series of schemes and initiatives that have been put in place and accept that it sometimes takes time from the moment of their creation for the money to come through. Funding is now coming through for the regional growth fund for east Kent. A high-end engineering business in my constituency, HV Wooding, which supplies parts for the CERN hadron collider and grand prix engines, has received a grant of more than £1 million from the regional growth fund, which could create up to 50 sustainable, high-skilled engineering jobs at its factory in Hythe. Those are exactly the type of businesses we want to support. Money is also coming through the seed enterprise investment scheme to support creative businesses, and digital businesses in particular.

People can see the benefits that those schemes are creating in the economy. That is one reason why we see job creation in the economy and new business start-ups performing strongly. The measures put in place in the past four Budgets are starting to bear fruit, which we should appreciate and accept.

The help to buy scheme, launched by the Chancellor yesterday, is a bold and imaginative measure that could help to stimulate the housing market and construction sector. I have been in many debates in the past year in which people have said that the problem with the construction industry and the housing market is that builders are reluctant to commit to starting projects because they do not think that they will be able to sell the properties. The scheme put in place by the Chancellor will give them the confidence to start building, and will give people the confidence to start buying. That can have a dramatic impact on our housing sector.

As in the measure to support small and start-up businesses, the Chancellor is working with the grain of the aspirations of the British people to give them the opportunity to start a business or buy their own home, with the backing of the Government to do so. The hon. Member for Worsley and Eccles South (Barbara Keeley) said that the cap on the cost of residential care—the implementation of the Dilnot measures—was still quite high, but at least it is there now, and we are saying for the first time that people who work and save all their lives, who set up a business or buy their own home, will not have all that taken away late in life. There will be a cap on their contributions so that they do not pay through the nose for something that other people get for free. That is part of supporting the aspirations of the British people, and I welcome the Budget.