Oral Answers to Questions

Debate between Geraint Davies and Danny Alexander

Tuesday 10th March 2015 Commons Chamber

[Danny Alexander]

The hon. Gentleman is absolutely right in both things that he says. The Financial Secretary’s announcement represented very important further progress, but if we look back over the past five years, we see that the relentlessness of our pursuit of measures to crack down on avoidance, be it the general anti-abuse rule in the tax system, the disclosure of tax avoidance schemes regime, the monitoring regime that we are putting in place or the measures to increase prosecutions for tax evasion, has made it clear that there is absolutely no tolerance for aggressive tax avoidance and tax evasion in this country.

[Geraint Davies (Swansea West) (Lab/Co-op)]

The Chief Secretary will know that 10% of UK wealth is held in offshore bank accounts, which is a much higher proportion than in the United States, so why is he not focusing on that tax avoidance and evasion, at a time when 65% of people on jobseeker’s allowance in Swansea have been sanctioned and are living on a pittance? It is a disgrace.

[Danny Alexander]

The hon. Gentleman clearly was not listening to my first answer, because we have put in place something unprecedented: working with our colleagues in other countries, the common reporting standard will mean that more than 90 countries will be automatically exchanging information on offshore accounts, so that HMRC has the information it needs to find and pursue offshore tax evaders successfully. We need to make further progress on how we deal with organisations that encourage, promote or facilitate tax evasion. I have said I want to see further work done on that, and I am sure we will be hearing more about it soon.

Oral Answers to Questions

Debate between Geraint Davies and Danny Alexander

Tuesday 9th December 2014 Commons Chamber

[Danny Alexander]

My hon. Friend is right. It is a fact that the United Kingdom has created more jobs than all the other countries in the European Union put together. That shows the success we have had in delivering economic growth by working through the balanced careful plan that we put in place at the start of this Parliament. She could also have mentioned the fact that female employment, at 73%, is at its highest-ever level.

[Geraint Davies (Swansea West) (Lab/Co-op)]

A couple with two children who are both working—the woman in part-time work on £10,000 and the man on £25,000—will have lost £9,417 in withdrawn tax credits in the autumn statement. The Chief Secretary talks about putting up the threshold, but he gets much more back from the poorest. When will he pursue a progressive policy that makes work pay for the poorest?

[Danny Alexander]

I beg to differ with the hon. Gentleman. The policy of increasing the income tax threshold to £10,600, which was put on the table by my party the Liberal Democrats back in 2010, is putting £825 back into the pockets of 26 million working people on low and middle incomes. Improving work incentives and earnings for people in work is something he should celebrate and everyone in the House should welcome.

Oral Answers to Questions

Debate between Geraint Davies and Danny Alexander

Tuesday 10th December 2013 Commons Chamber

[Danny Alexander]

My hon. Friend makes an important point. The shale gas industry has the potential to bring jobs and growth to communities across the country. In addition, the industry will give £100,000 to communities in which fracking is taking place, as well as 1% of all production revenues. However, we will of course listen to any suggestions from my hon. Friend about how that regime could be improved.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Does the Chief Secretary to the Treasury accept that, since the financial crash, productivity in the UK has fallen 5% but has gone up 8% in the United States, and that lending to business is down 13% and lending to mortgages is at 2008 levels? What is he doing about this? It is too little, too late.

[Danny Alexander]

The hon. Gentleman is right in his description of the fall in productivity in this country. That is related to the fact that this country was hit the hardest of almost any country in the world by the financial crisis, precisely because of the unpreparedness of his party. On the whole, however, the fact that a significant number of jobs have been created in our economy in recent years, even at the cost of falling productivity, represents a preferable balance from a welfare point of view.

National Infrastructure Plan

Debate between Geraint Davies and Danny Alexander

Wednesday 4th December 2013 Commons Chamber

[Danny Alexander]

That is a good question, and I suggest that the hon. Gentleman raise it at Culture, Media and Sport questions.

[Geraint Davies (Swansea West) (Lab/Co-op)]

The Chief Secretary knows that 80% of the money in the infrastructure plan is being spent in London and the south-east to shore up the Tory vote, but is that also why the company behind the Atlantic array has ditched its plans for offshore energy off Swansea? If not, what is the explanation?

[Danny Alexander]

The hon. Gentleman will have to talk to the project developer about that. I completely refute his allegation with regard to where the infrastructure projects are taking place. One of the most important projects in the plan is High Speed 2, which will benefit the whole country, including, potentially, north Wales with regard to rail access. We have also made announcements about the M4 and borrowing powers for the Welsh Government. The largest single project where there is progress today is the Wylfa nuclear power station, which the hon. Member for Ynys Môn (Albert Owen) welcomed, and I should hope the hon. Member for Swansea West (Geraint Davies) would, too.

Investing in Britain’s Future

Debate between Geraint Davies and Danny Alexander

Thursday 27th June 2013 Commons Chamber

[Danny Alexander]

I certainly agree with the hon. Gentleman that the innovative UTC model offers real benefits to the Government’s strategy on raising educational standards across the whole schools system. That is why we have invested in more UTCs, and I am delighted to hear that the one in his constituency is working so well.

[Geraint Davies (Swansea West) (Lab/Co-op)]

The vast majority—some 80%—of investment announced is in London and the south-east, and there was virtually no mention of Wales. Why is there no investment in an M4 relief road, a high-speed rail link to Wales, superconnectivity status for Swansea or a reduction in the Severn bridge toll, so we are not taxed for our infrastructure in Wales, or more money for the Welsh Government? Where is the cash for Wales?

[Danny Alexander]

There are projects and programmes announced today, including on energy and broadband, which will be of huge benefit to the hon. Gentleman’s constituents, and I hope that he would welcome them, as well as the new prison in north Wales, which his hon. Friend the Member for Ynys Môn (Albert Owen) welcomed just a moment ago—[Interruption.] A prison for English people? I am sure there will be some Welsh people in there too, if that is what the hon. Member for Swansea West (Geraint Davies) would like. As for the M4, this is closely connected to the discussions, which are in their final stages, on our response to the Silk report, which we will publish very shortly. I hope that he will, in due course, have news that he will wish to welcome.

Economic Growth

Debate between Geraint Davies and Danny Alexander

Wednesday 15th May 2013 Commons Chamber

[Danny Alexander]

I have to say to the hon. Lady that I think the fact that we inherited a welfare system where for too many people it did not pay to work is one of the greatest scandals of Labour’s time in government, so I make no apology whatever for reforming the welfare system and putting in place a universal credit where everybody on benefits knows they would be better off in work. That is the right thing for the country, and I am happy to support it.

The measures in the Queen’s Speech will also help all those workers who want to get on and plan for their futures. Our changes to the single-tier pension will provide millions of people—particularly women with broken work records, the low paid and the self-employed—with a firm foundation to support their saving for retirement. The single tier will be implemented from April 2016, and I am sure Members will join me in congratulating the Minister of State, Department for Work and Pensions, my hon. Friend the Member for Thornbury and Yate (Steve Webb), on his excellent work in bringing this policy forward to this stage.

The Queen’s Speech recognises that if we want our economy to succeed in the 21st century, we need to make significant changes to our business environment. We will not succeed in the 21st century if our businesses are slowed down by regulation, which is why we are taking steps through the deregulation Bill to remove excessive red tape from small businesses and to repeal legislation that no longer serves a practical use.

[Geraint Davies]

Will the right hon. Gentleman give way?

[Danny Alexander]

I want to make some progress, as I have a few further things to say.

We will not succeed in the 21st century if our businesses are slowed down by an outdated infrastructure. That is why we are increasing capital investment plans by £3 billion a year from 2015-16, meaning public investment will be higher on average over this Parliament than it was under our predecessors. That investment will help to improve our digital networks and our road and rail networks. We want to connect our biggest cities in a manner fit for modern business needs, and our investment in High Speed 2 will be a crucial investment for British jobs and prosperity. The hon. Member for North East Derbyshire (Natascha Engel) spoke against HS2 partly on the basis that there had been a decline in wedding bookings at an important venue in her constituency. I hope very much the progress of the equal marriage Bill will help raise demand at that venue.

In a debate focused on jobs and growth, a lot of Members have talked about the subject of Europe, and I have to say that I do not think contemplating British exit from the EU is helpful in supporting jobs and growth in this country. So I would like to remind the House of some of the economic opportunities that we gain from our membership of the European Union. Our EU membership supports UK jobs, prosperity and growth through increased trade, both inside the single market and outside, through free trade agreements. One in 10 jobs in this country—3.5 million jobs—are linked to that trade with the European Union. If we want to win the global race, we need to be part of a strong team.

Oral Answers to Questions

Debate between Geraint Davies and Danny Alexander

Tuesday 14th May 2013 Commons Chamber

[Danny Alexander]

I am grateful to my hon. Friend, who raises an important issue. We are all aware of the continuing difficulties of small firms in getting access to the finance they need. The business bank, which is being taken forward by the Secretary of State for Business, Innovation and Skills, is acting to address gaps in the financial offering for small firms. The funding for lending scheme is substantially expanding lending to small businesses, which is one of its objectives. The business finance partnership is investing £87 million through non-bank channels, such as peer-to-peer platforms, that can reach SMEs in a different way.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Does the Chief Secretary agree that an EU-US free trade agreement would help private sector job creation and that the noise about EU exit is undermining such an agreement? We would get no benefit from such an agreement if we were out of the EU, so why don’t they shut up?

[Danny Alexander]

I agree, as do the entire Government, that an EU-US free trade area would be of substantial benefit to the United Kingdom and to the whole of the EU. I welcome the fact that the Prime Minister is in Washington this week precisely to advance that agenda.

Oral Answers to Questions

Debate between Geraint Davies and Danny Alexander

Tuesday 29th January 2013 Commons Chamber

[Danny Alexander]

My hon. Friend makes an important point. We have provided funding to local authorities to enable the council tax freeze to be delivered. Of course, councillors in those areas will be answerable to their constituents if they fail to deliver the substantial financial benefit that that offers. He is right to say that council tax doubled during the Labour party’s time in office.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Does the right hon. Gentleman accept that the cost of living increases have hit the poorest hardest, including the man I mentioned last week in Prime Minister’s questions? Should we not therefore follow the US in taxing the top 2% more, having net investment and generating an extra 1% growth, rather than hitting the poor hardest?

[Danny Alexander]

In that case, I am sure that the hon. Gentleman will welcome the fact that the wealthiest in society are paying more in every year of this Government’s time in office than they ever did under the Labour party.

Oral Answers to Questions

Debate between Geraint Davies and Danny Alexander

Tuesday 11th December 2012 Commons Chamber

[Danny Alexander]

Ensuring, through increases in the personal allowance, that low and middle-income workers in particular can keep more of the money that they earn rather than handing it over to the Exchequer helps those people to deal with pressures related to the cost of living. I can certainly assure my hon. Friend that I will continue to push that policy, along with my Liberal Democrat and Conservative colleagues. At the time of the last general election I made a key promise to lift the income tax threshold to £10,000, and I intend to deliver that promise as soon as possible. [Hon. Members:“ Like the promise about tuition fees?”]

[Geraint Davies (Swansea West) (Lab/Co-op)]

The—

[Geraint Davies]

The incomes of the top 10% in Britain have risen by 11% in the last two years, but we heard in the autumn statement that they would be cut by only 0.5%. Does Chief Secretary not agree that those people are in a fantastic position to take on increases in the cost of living, unlike the poorest 40%, who are being unnecessarily smashed by this Government?

[Danny Alexander]

The hon. Gentleman should recognise that the top 10% make up the part of the population that is contributing most to dealing with the financial problems caused by the Labour party—the mess that we are trying to clean up—both in cash terms and in terms of a share of their incomes. He should welcome the fact that this Government are doing more than any previous Government to ensure that the wealthiest in society contribute most to sorting out the financial problems that he and his colleagues created.

Oral Answers to Questions

Debate between Geraint Davies and Danny Alexander

Tuesday 6th November 2012 Commons Chamber

[Danny Alexander]

My hon. Friend is right to say that the Labour party’s record on encouraging the private sector was at its most catastrophic in the west midlands, for which the figures he gave are absolutely correct. That is why another £124 million of funding for projects in the west midlands was announced in round three of the regional growth fund and why we are providing additional support for the automotive sector, which is so important in his constituency and region. Of course the improved climate for business, the removal of regulations and the funding for apprenticeships will benefit businesses in the west midlands, as well as in the rest of the country.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Yesterday, a report from the Welsh Government showed that scrapping tolls on the Severn bridge would increase the value of the Welsh economy by £107 million. Will the right hon. Gentleman commission a report to show how quickly the cost of reducing and getting rid of the tolls would be offset by the increase in income tax resulting from more jobs created in Wales?

[Danny Alexander]

The hon. Gentleman mentions finance in Wales, so I would have thought he might have started by welcoming the announcement I made two weeks ago on a new funding settlement for Wales and the commitment, in principle, for the first time ever—this was never made by the Labour party when it was in government—to borrowing powers for the Welsh Government. That is a major step forward. We will hear shortly from the Silk commission, which is examining revenue-raising powers. I will certainly consider the matter the hon. Gentleman raises in response to the Silk commission.

Infrastructure (Financial Assistance) Bill

Debate between Geraint Davies and Danny Alexander

Monday 17th September 2012 Commons Chamber

[Danny Alexander]

I did see that survey. I note that it was conducted before the Government announced the guarantees plan. However, a subsequent snap-shot poll showed a widespread welcome from the business community for the Bill. My hon. Friend will know that we have made significant changes to the planning system, including in the announcements last week, that relate directly to the threshold for infrastructure projects. Those will allow more projects of a slightly smaller scale to go through the national process, rather than getting tied up in local processes.

[Geraint Davies (Swansea West) (Lab/Co-op)]

rose—

[Danny Alexander]

I will take one more intervention, then I will make some progress.

[Geraint Davies]

The right hon. Gentleman will know that there are schemes in America where, with the support of pension funds, the private sector builds houses on land provided by the public sector. That provides a mixed asset with social and private housing, and a revenue stream for the public sector at no cost to it. When such schemes are available, why are the Government instead saying to the private sector, “Forget about social housing for a while. Just build private sector housing”? That will have a long-term impact on the demography of an area.

[Danny Alexander]

The hon. Gentleman, with the greatest of respect, has misunderstood the Government’s message. Part of the guarantee programme will extend the benefit of Government guarantees to housing associations, to enable an additional 15,000 affordable properties to be built. That is why it has been welcomed by the National Housing Federation, which speaks for housing associations in this country. Housing associations recognise that they will benefit from the guarantee, because it will reduce the cost of finance and help them to build many more homes for the sadly limited amount of money that is available to this country at the moment.

The plans are also supported by the Home Builders Federation, which said:

“Government now clearly understands the constraints on delivery and has outlined action to address them.”

The Government are committed to delivering a sustainable, private sector-led recovery that is balanced across industrial sectors and geographical regions; to moving away from an economy focused exclusively on the south-east of England, which is reliant on financial services and unsustainable debt, towards an economy supported by a wide variety of industries across the United Kingdom; and to making the UK one of the best places in the world to do business, attracting foreign investment and promoting our exports. To achieve that vision, the Government are committed to delivering world-class infrastructure, thereby giving firms access to the communication and transport networks that they need, wherever in the UK they happen to be.

--- Later in debate ---

[Danny Alexander]

I must make some progress, but I will give way again later.

Housing guarantees, alongside a wider package of housing and planning reforms, will contribute to the construction of up to 70,000 homes, including affordable housing, and opportunities for first-time buyers to get on to the housing ladder. That will ease conditions in overcrowded and overpriced residential areas, and will enable people to locate near to jobs.

The steps that we plan to take, and which the Bill enables us to take, will help more companies in a wide range of sectors to grow and flourish, not just in the south-east of England but throughout the UK, and will give more people access to a wider range of opportunities. The benefits will also be felt in Scotland, Wales and Northern Ireland. The UK’s hard-won fiscal credibility should benefit the whole of the UK.

[Geraint Davies]

Will the Minister give way?

[Danny Alexander]

I have a bit more to say. I have been generous with my time, but I must now make some progress. The hon. Gentleman’s Front-Bench colleagues are becoming restless.

The Bill will enable major infrastructure projects to secure finance regardless of where they are based. We will work closely with the Northern Ireland Assembly, the Welsh Assembly Government and the Scottish Government to ensure that the authority conferred on the Treasury or the Secretary of State by the Bill can be used effectively to help to deliver for people in Scotland, Wales and Northern Ireland.

I shall now give way to the hon. Member for Swansea West (Geraint Davies).

[Geraint Davies]

In certain areas of Wales—such as Swansea, part of which I represent—the cost-benefit ratio is not always as strong as it might be. Will the Minister support, for instance, super-connectivity for Swansea, given that it has been granted to Cardiff, and better links to Cardiff airport? Passenger numbers are not great at present, but that is simply because the infrastructure has not been there in the past.

[Danny Alexander]

I hear the case that the hon. Gentleman is making. We have made important announcements recently, particularly in relation to rail links in and to Wales, which I hope he welcomes. I will not support specific projects that may be in gestation, but we will work with the Welsh Assembly Government, who are principally responsible for such proposals. If there are projects for which a guarantee is appropriate, we will consider that very positively in the light of the representations made to us.

As the hon. Gentleman will know, great interest has already been expressed by investors and those involved in projects since the UK guarantees idea was launched six weeks ago. Since then, about 40 companies and project sponsors have come forward, responsible for projects worth well over £5 billion and covering high-priority investment in areas such as energy, transport, water, waste and telecommunications. Detailed discussions are already taking place with, for example, those involved in the Mersey Bridge Gateway project, which is considered to be one of the world’s top 100 infrastructure projects. We have also indicated that we would be willing to consider a guarantee relating to the green deal.

There should be no doubt that the Government are in a position to deliver this policy, and the investment it will unlock, only because of the decisive action that we have taken to reduce the deficit, and the credibility that that has secured for this country. When we came to office, the UK taxpayer was paying interest rates comparable to those of Spain and Italy. Were that still the case, the course of action that we are taking now would be impossible. Because we made tough decisions to regain control of our public finances, we now enjoy interest rates of only about 2%. That is the result of a responsible approach to spending and a credible long-term commitment to regaining control of the public finances.

Despite those tough decisions, we are already spending more on critical transport and communications infrastructure directly as a Government than was spent at the height of the spending boom. We are providing £18 billion-worth of rail investment, supported by the spending review, and a further £9.4 billion of infrastructure enhancements for the rail network was announced in the summer. Ten super-connected cities—the hon. Member for Swansea referred to super-connectivity—will enjoy ultrafast broadband and high-speed wireless connectivity as a result of Government investment, with funding set aside for a further 10. We are also focusing on how we can reduce burdens and keep costs low so that investment, whether public or private, goes as far as possible.

Last week we announced a package of measures to reduce burdens on business still further, including the reform or removal of more than 3,000 regulations to reduce their impact. That constitutes the most ambitious action ever proposed by a modern British Government to set business free. Our spending plans have prioritised capital spending that supports balanced sustainable growth across the country, and our efforts to reduce burdens on businesses mean that investment has gone even further. That approach is producing results despite difficult conditions. More than 1 million private sector jobs have been created under this Government, and this year we rose from 10th to eighth in the World Economic Forum rankings of international competitiveness. The Bill could allow us to unlock even more investment without placing material additional burdens on the public finances, enabling the Treasury to support infrastructure delivery so that we can make better use of private sector finance, skills and incentives, while also managing exposure to the taxpayer.

Under the previous Government, the UK fell in the infrastructure world rankings from seventh in 1998 to 33rd in 2009—behind Namibia, Slovenia and Cyprus. We are now up to 24th and taking the necessary steps to make the further improvement this country needs. There can be no argument with the view that we are delivering far more than under the plans we inherited from our predecessors.

The Bill contains appropriate safeguards and checks to ensure transparency and accountability to Parliament for actions taken under it. It imposes an upper limit on the amount of expenditure that the Treasury and Secretary of State may incur, which can be increased through affirmative resolution. It also requires the Treasury to update the House regularly. In answer to a point that was made earlier, where expenditure is charged on the Consolidated Fund, the Bill requires the Treasury as soon as practicable to lay a report before Parliament specifying the amount paid. Any expenditure or contingent liabilities will be reported in the whole of Government accounts.

Youth Unemployment and Bank Bonuses

Debate between Geraint Davies and Danny Alexander

Monday 23rd January 2012 Commons Chamber

[Geraint Davies (Swansea West) (Lab/Co-op)]

rose—

[Danny Alexander]

I am going to make some progress, and I will give way again shortly.

Across the wider economy we are doing everything we can to foster renewed prosperity, create new jobs across the UK and return the country to sustainable growth. Whether we are talking about regulation, the planning system, reducing corporate taxation, our investment in infrastructure or the tax cuts that we are delivering for low-income workers, we are putting forward ambitious plans—plans that we need in these difficult times.

--- Later in debate ---

[Geraint Davies]

rose—

[Danny Alexander]

I will give way in a moment.

The Opposition do not seem to realise that tackling that deficit is the vital precondition to sustainable growth. It is only by tackling the deficit that we can provide the certainty, stability and low interest rates that are critical to a recovery. The past 18 months have seen sovereign debt downgrades across the Europe, bail-outs of the weakest Eurozone economies, and countries racing to consolidate at the behest of the bond markets.

Public Service Pensions

Debate between Geraint Davies and Danny Alexander

Wednesday 2nd November 2011 Commons Chamber

[Danny Alexander]

I am grateful to my hon. Friend for his welcome and I agree wholeheartedly with his comments. It is precisely the sort of subject on which there should be a cross-party consensus. I think a consensus could be formed around the proposals we have made today. The shadow Chief Secretary says that she wishes to study our proposals. That is fair enough, but I hope that she will see on reflection that the proposals we are putting forward are the right way to go forward on public service pensions both for public sector workers, who are fully entitled to a proper and decent pension, and for the taxpayer as a whole.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Does the Minister agree that the statement consisted of sacrificing long-term pension rights to pay for a short-term failure to stimulate economic growth? What we are seeing, after 13 years of industrial peace, is the return of mass strike action due to Tory economic failure and a threatening, macho approach to negotiation. [Interruption.]

Jobs and Growth

Debate between Geraint Davies and Danny Alexander

Wednesday 12th October 2011 Commons Chamber

[Danny Alexander]

No, the hon. Gentleman should say sorry, and of course we are supporting Airbus, in his part of the country, as part of our strategy for creating jobs.

We have only to look across the eurozone to see the costs of political indecision and the price that comes from consolidating at the behest of the market rather than taking charge of one’s own destiny, as the Government have. We have seen the problems in the eurozone and are working to help, but we already have flexibility in our own plan. By taking the tough decisions that we have on fiscal policy, we have provided the space in which the Bank of England can act. In the Governor’s own words,

“monetary policy is the right way to take the strain of changes in the world economy.”

As we have already said, we are considering credit easing options as a way to inject money directly into the business sector. We will provide further details in the autumn statement, and I am grateful for the welcome given to that policy on both sides of the House.

Of course, today’s unemployment figures are a reminder of the difficult task that we face. Unemployment is not merely a statistic; it is a high cost for the individuals and families concerned. It is not a price worth paying, and that is why we will be relentless in our pursuit of growth.

[Geraint Davies]

Will the Chief Secretary give way?

Oral Answers to Questions

Debate between Geraint Davies and Danny Alexander

Tuesday 21st June 2011 Commons Chamber

[Danny Alexander]

I am grateful to my hon. Friend for that question, and he makes an important point. This country was running a structural deficit from 2002 onwards, so his analysis is exactly right. However, that was not the only problem with the previous Government’s policy, of course; another was their abject failure to regulate the banks and deal with the financial system. That is a further major cause of the problems we face.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Does the Chief Secretary accept that his and his Government’s macho approach of massive cuts and confronting the unions is reducing consumer confidence, which in turn is reducing investment, and that that is hindering growth and has led to the March deficit forecast being increased by £46 billion, which is almost £1,000 per person in Britain?

[Danny Alexander]

No, I do not. The decisions we have taken on reducing the enormous budget deficit we inherited from Labour were absolutely necessary to restore confidence in this country’s ability to pay its way in the world, and that is helping to deliver the low interest rates that are delivering a significant benefit to our economy. The hon. Gentleman should recognise that, too.

Amendment of the Law

Debate between Geraint Davies and Danny Alexander

Tuesday 29th March 2011 Commons Chamber

[The Chief Secretary to the Treasury (Danny Alexander)]

There has been a good debate today and over the past four days. Today the debate was graced in particular by a contribution from the right hon. Member for Edinburgh South West (Mr Darling), the former Chancellor, who addressed the topic of business confidence and gave the House the benefit of his experience of issues in the world economy. He might have noticed that figures today show that business confidence is rising, but it was good to hear from him in the debate, and also from the right hon. Member for Birkenhead (Mr Field) who, among many other hon. Members, made the point that it was important to hear from the Opposition what they would cut.

This year’s Budget is about reforming the nation’s economy so that we have sustainable growth and jobs in the future. As many hon. Members observed in the debate, none of this would be possible without the difficult decisions that we have already had to take to tackle the enormous budget deficit that we inherited—decisions that have secured our international credit rating and been praised by the OECD, the International Monetary Fund and the World Bank; decisions that have provided the firm platform that we need to build a strong, sustainable and balanced economy; and decisions that have brought about economic stability and confidence in Britain’s ability to pay its way in the world. That stability and confidence would be forfeit if we stepped back from our plan, as some have suggested. To do so would cost jobs and growth and would mean more cuts for more people for longer in the future.

The action that the Government have taken is allowing us to move from rescue to recovery, from a decade of unbalanced, unsustainable policy to the hard road back to prosperity, for this Budget confronts the problems that our predecessors chose to ignore. For the past decade Britain has been losing ground in the world’s economy. While other nations have reduced their business tax rates, ours have increased. While other countries have removed barriers to enterprise, ours have grown higher still. While our competitors have improved their education systems, reformed welfare and increased exports, we have had to endure the opposite. That is the legacy of the Labour Government.

That is why, in the Budget, we have set out the Government’s new vision for growth—a vision that has four key ambitions at its heart. First, Britain should have the most competitive tax system in the G20. Secondly, Britain should be the best place in Europe to start, finance and grow a business. Thirdly, Britain should be a more balanced economy by encouraging exports—

[Geraint Davies]

If the right hon. Gentleman is creating an environment for inward investment and enterprise, how does he explain the fact that when I spoke in Dusseldorf to UK Trade & Investment, which markets Britain abroad, it said that it was generating lots of leads for inward investment, but because the Government had abolished the RDAs, those were not being drawn down and all that inward investment was going elsewhere? Is that not a pathetic indictment of the Government’s failure to generate growth?

[Danny Alexander]

I am grateful for that intervention, but I disagree with the point that the hon. Gentleman makes.