Debate on the Address

Debate between John Redwood and Stephen Mosley

Wednesday 4th June 2014 Commons Chamber

[Mr Redwood]

I think that is churlish. As the Prime Minister has pointed out, using constituency after constituency as examples, people are getting back into work. Some are not in the jobs they would like or for which they are being paid nearly enough, but the way to work on that problem is to get behind the economic recovery.

The Gracious Speech promoted three big things that are important in that connection. I am glad that Labour now agrees with many of us that the opportunity and right to own one’s own home is one of the most important things. Many people have that ambition and all too many of them are not able to afford it at the moment, so measures in the Gracious Speech and elsewhere that can help create more opportunities for young people in particular to buy their first home and for others to improve their home, or even to have their first home in later life, will be very welcome.

Part of the answer is sensible rates of building, which in turn produces opportunities. I visited a construction site in my constituency, where the Prime Minister will be pleased to hear a lot of houses are being built. Not all my constituents are delighted about that, but those seeking a home are. We are already seeing many more jobs for plumbers, bricklayers and carpenters, and wage rates are going up, because those people are in demand. That means that they have a better living standard after the period towards the end of the last decade and the earliest part of this decade in which their wage rates were very badly cut or squeezed.

[Stephen Mosley (City of Chester) (Con)]

Is it not true that by controlling Government borrowing, keeping interest rates low and keeping mortgage rates low, we are giving more people opportunities to buy and own their own properties, to pay lower mortgages and to live the dream of having their own home?

[Mr Redwood]

Indeed. That is part of the strategy and, as we can see, it is beginning to work, with more house building now being undertaken and more people being able to afford a home.

The next thing we need is more domestically supplied energy and cheaper energy. The two go together, felicitously, so if we can get a bigger energy sector extracting oil and gas in Britain—onshore and offshore—we will have more jobs, some of which will be higher-paid jobs, but also access to cheaper energy. I am very pleased that the Government are going to get behind the shale gas revolution. It is already transforming the American economy, creating higher living standards for many and producing the much lower gas prices that are pricing Americans back into competitive jobs in industry vis-à-vis Europe and Asia, where the price of energy is high. We need the same here.

We need to make sure that all people setting up their own business, or who have already set up their own business but have not taken on many or any employees and are now thinking of doing so, should feel that that is possible and feasible. If we have too much regulation and control—much of it well intentioned, no doubt—the very bright or able can still run a business, because they know how to handle that regulation and control and can get proper advice, but other people find it far more difficult. They are put off, thinking, “I really do not understand all this. I don’t know what it’s all about.” Anything that my right hon. Friend the Prime Minister can do to make it much easier for people to start their first business and then to take on their first employee will be extremely welcome and will promote the recovery.