Business of the House

Iain Wright Excerpts

Thursday 12th January 2012 Commons Chamber

[Sir George Young]

My hon. Friend is right—we do look to the small and medium-sized enterprises to be part of the dynamo for growth and reducing unemployment. She will know that we have doubled small business rate relief for two and a half years. Originally, we announced a doubling of that relief for one year, and that was extended in the 2011 Budget, and again in the autumn statement for a further six months from October 2012. There are also other initiatives, such as cutting red tape and the loan guarantee scheme. I hope that all those will be of assistance to SMEs. We all have a role to play in drawing to the attention of SMEs in our constituencies the various schemes the Government have made available to assist them.

[Mr Iain Wright (Hartlepool) (Lab)]

The Leader of the House mentioned rebalancing the economy. Data from the US suggest that its manufacturing sector is expanding strongly and unemployment is at a three-year low. By way of contrast, British manufacturing has suffered the sharpest fall in activity since 2009, unemployment here is at an 18-year high, and yesterday’s trade figures showed that exports to countries outside the EU have declined. Given that next month marks the 200th anniversary of the birth of Charles Dickens, can we have a debate on a tale of two economies, so that this House can debate with Dickensian eloquence why the US seems to be pulling out of the mess but Britain seems to be going ever further into it?

[Sir George Young]

I point out to the hon. Gentleman that the decline in the manufacturing industry did not begin in 2009; there had already been a fairly substantial reduction in employment in manufacturing. One of the things we are seeking to do is to rebalance the economy, and the intervention a few moments ago from my hon. Friend the Member for South Staffordshire (Gavin Williamson) showed the success we are having in promoting, for example, car manufacturing. Also, other sectors of the economy have been doing better, such as pharmaceuticals. However, the hon. Gentleman is right: we want to emphasise growth. My right hon. Friend the Chancellor will be drawing up his Budget, and I hope it will be possible to take further measures to address what the hon. Gentleman calls the tale of two countries. However, the US has not been without its problems: I think I am right in saying that growth in the last quarter in this country was higher than in the US.