Autumn Statement

Debate between George Osborne and Margot James

Wednesday 3rd December 2014 Commons Chamber

[Mr Osborne]

At the moment, we see Britain as the fastest growing major economy in the world. We also see a record fall in unemployment, and the highest rate of job creation occurring in Scotland. That is the United Kingdom delivering for the people of Scotland. Now we have proposals from the Smith commission, jointly agreed between the different parties, whereby the Scottish Government, and the Scottish Parliament, can take more responsibility for raising their own taxes to pay for their own expenditure. Then we will have an even better debate in Scotland on how things are paid for.

[Margot James (Stourbridge) (Con)]

I was glad to hear my right hon. Friend confirm that there has been no new recession in the years since 2010. It would have been a strange recession that resulted in unemployment falling by 45% and average weekly pay being up by 12.5% in my constituency and in 4,000 new businesses opening in my borough. Will he join me in congratulating the thousands of people who have got into work and started new businesses in my constituency in the past four years?

[Mr Osborne]

My hon. Friend has been a real champion for small businesses and for exporters in her Stourbridge constituency, and for attracting investment into the black country. I pay tribute to the work she has done. The measures we have taken today to help high street stores by increasing the business rate discount to £1,500, to take the smallest businesses out of business rates, and to back exporters and to increase the research and development tax credit for firms in the west midlands are all tribute to the work she has done and the issues she has raised in Parliament.

Oral Answers to Questions

Debate between George Osborne and Margot James

Tuesday 4th November 2014 Commons Chamber

[Mr Osborne]

The right hon. Gentleman says “Come on”, but there were no independent forecasts when he was in the Treasury. He was the economic adviser who cooked up the forecasts, and came to the House and as a result misled this country about its economic fortunes. The OBR is working as an independent institution. The independent review of the OBR said that we should not extend its powers. We do not want the Labour party undermining the independent institution that has brought confidence back to public statistics.

[Margot James (Stourbridge) (Con)]

T8. Last week, the Queen opened a new Jaguar Land Rover plant in Wolverhampton, which is creating 1,400 new jobs. The enterprise zone and the black country city deal are set to create nearly 10,000 more new jobs. Does my right hon. Friend agree that we could go even further in Birmingham and the black country if our local authorities followed the example set by those of the northern powerhouse?

[Mr Osborne]

The investment by Jaguar Land Rover is very welcome. I was at one of the Jaguar Land Rover plants in September, and saw the incredible investment that is going in there. The new engine plant in the black country is a huge and welcome investment in the west midlands. I take very seriously my hon. Friend’s suggestion that we should talk to authorities in the west midlands to see if we can build on what has been achieved in Greater Manchester. I would be very happy to start those discussions with civic leaders and local MPs.

Oral Answers to Questions

Debate between George Osborne and Margot James

Tuesday 28th January 2014 Commons Chamber

[Mr Osborne]

This year, there is the help for the high street and the £1,000 support for business rates for our high street shops, cafés and pubs. We are also introducing the employment allowance, which will take many small businesses out of employer national insurance altogether. Next year, we have the removal of the jobs tax altogether when someone under the age of 21 is employed. That is what we are doing to help the many businesses that my hon. Friend so ably represents in Parliament.

[Margot James]

There have been 3,000 new business start-ups in my borough of Dudley since 2010, many of which will benefit from increased research and development tax allowances, the national insurance rebate and the business rates cap. Does my right hon. Friend agree that while the fiscal measures he has introduced make a vital difference, the 2.8% growth in the economy announced today is sure-fire proof that his economic plan is working and that those small and medium-sized enterprises are now on a far better growth trajectory as a result?

[Mr Osborne]

I am delighted to hear about the success of businesses in the Dudley borough area and in my hon. Friend’s constituency. The Government made a choice that we were going to back a private sector recovery and that, in a time of limited resources, we would put our efforts into helping small businesses grow by cutting their business and employment taxes. That is what we have done, and we are beginning to see the fruits in the growth of jobs in the west midlands and across the whole country.

Economic Growth

Debate between George Osborne and Margot James

Wednesday 15th May 2013 Commons Chamber

[Margot James (Stourbridge) (Con)]

The estimated cost of the Labour party’s plans is £28 billion. Labour opposes every one of our spending cuts, so does that not imply that it would fund the whole lot by pushing this country’s borrowing back towards £150 billion? Is that why the shadow Chancellor is so reluctant to say what more borrowing he could commit to?

[Mr Osborne]

My hon. Friend is right to say that that is the approach of the shadow Chancellor. The right hon. Member for Neath (Mr Hain), who is sadly not in his place, gave the shadow Chancellor some unsolicited advice last week—I think it was unsolicited. He said:

“Labour’s Treasury team need to get out on the stump now and work even harder. It shouldn’t just be left to Ed and Harriet”—

Miliband and Harman—

“to carry the heavy load”

on shows such as the “World at One”. We could not agree more, because it is fair to say that when the Labour leader appears on the radio—I am not sure how to put this delicately—there is a little confusion about what Labour’s economic policy might be. Ten times he was asked whether borrowing would go up or what his party’s policy was, and he did not reveal it. I will be fair to the shadow Chancellor and say that he is much more straightforward. He has a much clearer message than his leader: “Vote Labour and borrowing will go up. Vote Labour and welfare bills will rise.” Vote Labour and he will do it all again. It is not just the right hon. Member for Neath who wants to see the shadow Chancellor on the media more—we want to see him on the media much more.

Autumn Statement

Debate between George Osborne and Margot James

Wednesday 5th December 2012 Commons Chamber

[Mr Osborne]

We inherited a desperately difficult economic situation, where the economy had contracted by 6%. The hon. Lady talks about GDP forecasts. The Labour Government presided over a 6% contraction in the economy. We are dealing with those problems. As I say, she and her colleagues would have more force if they could answer two questions. Will they reverse the 50p tax cut? They will not say that. Will they vote against the welfare uprating Bill? Once they give us answers to those two questions, perhaps we will start listening to what they have to say.

[Margot James (Stourbridge) (Con)]

I warmly welcome the 25% increase in the budget for UK Trade & Investment and the £1.5 billion uplift for export finance facilities, which is much needed by businesses trying to fill orders from abroad. My right hon. Friend also commended the Heseltine review and said that he would respond more fully in the new year. When he does that, may I draw his attention to Lord Heseltine’s recommendations that we increase tactics to improve foreign direct investment by targeting the leading multinational investors more fully and more widely throughout Government?

[Mr Osborne]

I know my hon. Friend speaks with great knowledge on these subjects and she chairs the all-party group on trade and investment. We have provided a 25% increase in UKTI’s budget. We are seeking to strengthen the capacity of overseas chambers. It is not just about exports from this country; it is also about attracting investment into this country, and we want Britain to remain the No. 1 destination for foreign direct investment in Europe.

Autumn Statement

Debate between George Osborne and Margot James

Tuesday 29th November 2011 Commons Chamber

[Mr Osborne]

I think the hon. Gentleman will find that it is half of the last Labour Cabinet who are working in the City at the moment.

If the hon. Gentleman is so passionate about this issue, why did he not press the Government he supported for 13 years to introduce a bank levy? On public sector pay, the shadow Chancellor was completely silent about whether the Labour party supported 1% average increases after the freeze ends. No doubt we will find out more about that later this afternoon.

[Margot James (Stourbridge) (Con)]

The Black Country chamber of commerce reports that 400 new businesses started in our region this year, 170 with help from the Government. I particularly welcome the national loan guarantee scheme. Does my right hon. Friend anticipate that that scheme might support business start-ups?

[Mr Osborne]

I think it will help new businesses borrow, but of course we have also announced today the seed enterprise investment scheme, a new scheme that will specifically help start-up businesses. It will give 50% income tax relief to anyone who invests up to £100,000 in a new company. Also, for one year only, we are allowing people to put capital tax-free gains of up to £100,000 into the scheme. It is all about trying to get investment into new companies such as the ones in the black country that my hon. Friend talks about.

Eurozone

Debate between George Osborne and Margot James

Monday 10th October 2011 Commons Chamber

[Mr Osborne]

The hon. Gentleman is the shadow Chancellor’s Parliamentary Private Secretary—[Hon. Members: “No, he’s not.”] Oh, he has been promoted! It is a complete clear-out. Well, well. We are very pleased to see that the shadow Chancellor is still in his place.

Let me draw the hon. Gentleman’s attention to what was said by Digby Jones, one of the members of the last Government. [Interruption.] It is funny how Labour Members disown these people. They booed Tony Blair, and now they are attacking their former Trade Minister. Anyway, he said that the Labour leadership was

“displaying poor statesmanship at a time when the country needs leaders, not players to a union gallery”.

He also said that their policies were

“a kick in the teeth for the only sector that generates wealth, that pays the tax and creates the jobs”

in this country. He added:

“Pro-business? Not!”

It is the businesses that will create the jobs in this country, and being the anti-business party will not get Labour anywhere.

[Margot James (Stourbridge) (Con)]

Does my right hon. Friend recall the howls of derision from Opposition Members when he warned 18 months ago of the possibility of a Greek-style economic catastrophe engulfing this country’s economy? Now that the threat of contagion has reached even Italy, what is his assessment of the dangers to the UK economy of slowing down implementation of the deficit reduction strategy?

[Mr Osborne]

My hon. Friend makes a good point. When we first said, “Look at Greece”, Opposition Members all said, “Well, that couldn’t happen here.” It then extended to Portugal, then Ireland, then Spain, then Italy, and now questions are being raised about the French banks, which France is seeking address, and a Belgian bank has fallen over this weekend. In the end, we can look at what the credit rating agency who gave us the triple A rating said last week. It said that the rating would come under downward pressure if

“the coalition Government’s commitment to fiscal consolidation falters”.

There would be an automatic downgrade if we were to follow the Opposition’s approach. That would lead to higher interest rates, hitting families and leading to more repossessions and more job losses. That is the path to ruin, and we know what it is like because we have been down it before under the shadow Chancellor.

Independent Banking Commission Report

Debate between George Osborne and Margot James

Monday 12th September 2011 Commons Chamber

[Mr Osborne]

We do want to see more mutuals created—we have explicitly said that in relation to Northern Rock, while not ruling out other potential options for Northern Rock. We have also taken action to strengthen credit unions, which are another part of the piece. It will be good to see mutuals growing, and the proposals in the report, particularly those on competition and the switching of current accounts, will help the mutual sector.

[Margot James (Stourbridge) (Con)]

I welcome the Chancellor’s considered response to the Vickers report. Will he comment on the implications of the proposed reforms for his strategy of rebalancing the UK economy towards manufacturing and regions outside London and the south-east?

[Mr Osborne]

The proposals will help because they will mean that these universal banks will have retail banking arms, in a ring fence, that are very focused on getting lending going to the economy outside the centre of London. We may think of it like this: the boss of the Royal Bank of Scotland a couple of years ago would have had someone running NatWest—running a ring-fenced subsidiary—who would have been totally focused on trying to get NatWest lending as a successful retail bank, rather than worrying about whether they could take over a Dutch investment bank. The ring fence will mean that parts of a universal bank will be extremely focused on getting support to businesses, in the black country and elsewhere.

Oral Answers to Questions

Debate between George Osborne and Margot James

Tuesday 6th September 2011 Commons Chamber

[Mr Osborne]

The point that the IMF has made consistently over the last two years is that countries with fiscal space can of course use it, but that Britain does not have that fiscal space. It made that point in its article IV assessment of the UK just a few weeks ago, and that is also the view of Christine Lagarde. As I say, she is coming to this country on Friday and we will hear what she has to say.

[Margot James (Stourbridge) (Con)]

As the Chancellor has reassured the House that protecting the green belt is not incompatible with reforming the planning system, can he tell the House any more about how the Government can help to reduce the costs of the planning system for business?

[Mr Osborne]

Planning costs in Britain are among the highest in the world and planning delays are among the longest in the world. That is what we are seeking to deal with, so that we get economic development that is sustainable and protects our most cherished environments. That is what we are doing. What people are beginning to see, as this debate unfolds, is that we have to take some difficult decisions in this House if we are to have sustainable economic growth in a very competitive global economy. The planning reforms are part of that plan.

The Economy

Debate between George Osborne and Margot James

Wednesday 22nd June 2011 Commons Chamber

[Mr Osborne]

What I understand is that the system the right hon. Gentleman put in place to ensure financial stability completely failed, and the scales have fallen—

[Margot James]

rose—

[Andrea Leadsom]

rose—

Bank Bonuses

Debate between George Osborne and Margot James

Tuesday 11th January 2011 Commons Chamber

[Mr Osborne]

Again, the hon. Gentleman has amnesia. He seems to forget that for 13 years he supported a Government who allowed this problem to develop. Indeed, as far as I can tell, half the people who were in that Cabinet have gone on to work in the City.

[Margot James (Stourbridge) (Con)]

I congratulate the Chancellor on his Department’s excellent record on tackling banking excess, which contrasts so favourably with the lamentable record of the Labour party when it was in government. Bonuses are only part of the mix of compensation, so could he update the House on the progress that the Independent Commission on Banking has made on tackling remuneration?

[Mr Osborne]

The Independent Commission on Banking is examining the structure of the banking industry and is specifically examining the “too big to fail” issue. It is examining competition in the banking industry, because in recent years we have seen an enormous consolidation of the industry. On taxation, I should of course have mentioned that banks pay income tax on the bonuses and employers’ national insurance at 12.8%.

Proposed Public Expenditure Cuts

Debate between George Osborne and Margot James

Monday 13th September 2010 Commons Chamber

[Mr Osborne]

As the hon. Gentleman is now a Blairite, I thought that I would read out what his master said recently, which is relevant to what he has just said:

“I look at those policy papers now—the work on…the use of social security budgets…and I do think how different it would have been if we had done it. If we had…not wandered into a cul-de-sac of mixed messages and indecision… But there it is. It didn’t happen, and that’s it.”

We are trying to do the things that he once promised in his election manifesto.

[Margot James (Stourbridge) (Con)]

In his article yesterday, David Smith, the economics editor of The Sunday Times, reminded us that the structural deficit had averaged 2.7% since 2003 and that we inherited planned tax rises and expenditure cuts of £73 million. Given the positive reaction of the markets to his Budget of a few months ago, what does the Chancellor think would happen if he did not persist with these tough but very necessary measures?

[Mr Osborne]

The answer is simple: there would be a catastrophic loss of confidence in Britain and an increase in market interest rates, which would hit every business and family. That would lead to an increase in unemployment, which is why we are not prepared to take the prescription offered by at least some of the people standing for the leadership of the Labour party.

Office for Budget Responsibility

Debate between George Osborne and Margot James

Monday 14th June 2010 Commons Chamber

[Mr Osborne]

The report reminds us of the complete mess that the economy was in when there was a change of Government.

Let me deal with the right hon. Gentleman’s points. First, I apologise that he received the statement only 25 minutes before it was delivered. I was following the normal practice that had been established in the Chancellor’s private office. Despite having been on the wrong end of that for three years, I note his complaints about the very first statement, and I will look into that.

Let me answer directly the right hon. Gentleman’s question, towards the end of his remarks, about the fiscal mandate. It will be set in the Budget. There is no credible fiscal mandate in place in Britain because we have inherited from the previous Government a commitment, which most of the rest of world does not believe is a serious and credible effort to reduce the deficit. The fiscal rules never amounted to very much either when the crisis came, but we will put in place new fiscal architecture.

The right hon. Gentleman talks about borrowing and economic growth. I remind him that the whole point about the structural deficit is that it is not the part of the deficit that reduces as growth returns. According to the OBR report, it is increasing above the estimates that were given in the March Budget. That is striking given that the out-turn for borrowing last year was, indeed, lower than the Chancellor forecast just three or four weeks, as far as I can tell, before he received the out-turn numbers. He gave a figure in the Budget and out-turn numbers were lower. It is therefore all the more striking that the structural deficit—the crucial part of the numbers: the black hole in the public finances—is higher by a significant amount than he forecast. Of course, we are all concerned about the situation in the eurozone, but 28 out of 30 independent bodies that look at the British economy did not believe that the figures that he gave in the March Budget were accurate. Indeed, we pointed that out at the time. [Hon. Members: “You haven’t answered a single question.”] I did not think that the right hon. Gentleman asked many questions; I have answered both of them.

The right hon. Gentleman makes a point about spending cuts and so on. He pencilled in £44 billion of spending cuts. Until a single member of the Opposition provides us with a clue as to how they would even have begun to achieve those £44 billion of cuts, they will not be taken seriously. The leadership contenders are busily taking their party leftwards into the margins of British politics. They are not addressing the central issue about their fiscal plans, which were not credible. Where would the spending cuts have come from? We are prepared to answer that question. Until they do, they are not contenders for being taken seriously in British politics.

Let me remind the right hon. Gentleman of what one of his Ministers, Paul Myners, said. This was the man whom he appointed—or at least agreed to have appointed—to the Treasury, and the man who sat with him in all those meetings over the years. He said:

“There is nothing progressive about a Government who consistently spend more than they can raise in taxation, and certainly nothing progressive that endows generations to come with the liabilities incurred by the current generation.”—[Official Report, House of Lords, 8 June 2010; Vol. 719, c. 625.]

That is the truth about the Labour party’s position.

The right hon. Gentleman says, “Apologise”. He is the person who should apologise. More to the point, the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown), wherever he is, should come here and apologise for the complete economic mess in which he left the country.

[Margot James (Stourbridge) (Con)]

May I congratulate my right hon. Friend on this unprecedented increase in transparency and openness on economic forecasting? Is it not the case that the increase in the structural deficit as a percentage of gross domestic product means that a robust deficit reduction plan is needed now more than ever?