Autumn Forecast

Justin Tomlinson Excerpts

Monday 29th November 2010 Commons Chamber

[Mr Osborne]

I completely agree with my hon. Friend, who has been a powerful champion of the east midlands and of her constituency in the few months since her election. I know that she will welcome the announcement by Glaxo, which is because of the decisions that we have taken. Of course, the support for job creation in the east midlands and across the country would not be there if we had a fundamentally unstable economy of the kind that this Government inherited in May.

[Justin Tomlinson (North Swindon) (Con)]

What measures are being taken to maintain the low interest rates that are essential to mortgage holders in my constituency?

[Mr Osborne]

The Bank of England Monetary Policy Committee sets interests rates, and does so independently. The purpose, in part, of the measures that we have taken to reduce the deficit is to give the Monetary Policy Committee the maximum possible flexibility and freedom in setting the appropriate monetary policy to stimulate demand in the economy. I believe that that has enabled it to keep interest rates low, which helps to stimulate the economy.