Budget Resolutions and Economic Situation

Gareth Davies Excerpts

Wednesday 3rd March 2021 Commons Chamber

[Gareth Davies (Grantham and Stamford) (Con)]

What a pleasure it is to speak in this debate, at this point in the debate.

As outlined in many good speeches, we are in a precarious economic position. Our debt is high, our tax revenue is low, unemployment is up and growth is down. One of the most important things that we can do in this place is to debate our economic future, but let’s face it: the vast majority of people we represent are not as concerned about the ping-pong of politics as they are about their real-life situation. People have lost their jobs, their livelihoods and their certainty—all from a virus that they could not have seen coming. We in this place cannot solve all our people’s woes. Our economic recovery will not be driven from the Floor of the House of Commons; it will be driven from the factory floors of Grantham and the shop floors of Stamford. It will be driven by our workers and our small businesses, not by politicians. But we can provide stability and certainty through management of our public finances.

We have heard many times today that borrowing is at a record high and our interest rates are at a record low, but, as a principle, I am uncomfortable with anyone suggesting that we should have more debt just because it is cheap. That goes for individuals as much as it goes for Governments. I am deeply concerned about inflation as we start to release restrictions in our economy, and what that means for rates in the future.

In advance of today, I set out three things that I was hoping to see in the Budget. I asked for us to look at ways in which we could better mobilise private capital, I wanted us to focus on innovation and entrepreneurs, and I wanted to see that we would prioritise investment over general public spending. I am delighted that all three of those were in the Budget today. The national infrastructure bank will mobilise tens of billions of pounds of private capital to help to fuel energy and transportation infrastructure many decades from now. The announcement on tech visas was fantastic because that highlights the importance of bringing in the best and the brightest to help to bolster our digital transformation in sectors such as finance, farming, education and healthcare. The investments that we are making in skills will help firms such as Iconic Engineering Solutions in Grantham to find the technical jobs that they so badly seek. They say that good crisis management is about being quick with the facts and slow with the blame. The fact is that this crisis will change the way we live, but let us not let it change the way we manage our public finances.