Jobs and Growth

Karl Turner Excerpts

Thursday 17th May 2012 Commons Chamber

[Mr Ellwood]

I remind the right hon. Gentleman that the recession that lasted for five quarters, for which he was directly responsible, gave us a GDP growth figure of minus 2.3%. The figures that we are dealing with now are minus 0.3% and minus 0.2%. That means that we are heading in the right direction. It might technically be a recession of two quarters, but Labour is talking down the economy, which is not what the British electorate want to hear.

It is thanks to the measures that this Government are implementing that our economy is growing faster than that of the eurozone, twice as fast as Germany’s and three times as fast as that of France. Our borrowing costs have fallen to record lows, and thanks to the management of the deficit, we are able to retain our triple A rating. And yet, Labour are keen to peddle the idea that there is no plan for a recovery. That argument has just been put forward by the hon. Member for Leeds East (Mr Mudie).

I will give some examples of what the plan is. I have mentioned how we are managing the deficit so that borrowing costs are low. We are also creating one of the most competitive business tax systems in the developed world; cutting red tape by scrapping unnecessary and out-of-date regulations, which are costing UK businesses more than £350 million; and creating one of the most educated and flexible work forces in Europe by creating apprenticeship schemes and energising our schools system through the academy programme. Of course, we are also boosting investment and exports to rebalance the economy by setting up enterprise zones across the country, developing regional growth funds and replacing the regional development agencies with the more effective local enterprise partnerships. I certainly welcome the one that has just been launched in Dorset, which is already starting to release faster broadband and upgrade the county’s infrastructure.

[Karl Turner (Kingston upon Hull East) (Lab)]

What does the hon. Gentleman think the imposition of VAT on static caravans will do for jobs, growth and exports?

[Mr Ellwood]

Again, the hon. Gentleman is repeating a point that has been made by Labour and that the Chancellor has already heard.

To be fair to other Members who want to get in, I will conclude by saying that we need to remain firm on our plan. We need to focus on where we want to be in 2015. It was courageous of the Government to set out a plan for growth and I commend it to the House.

--- Later in debate ---

[Eric Ollerenshaw]

I would love to, but I have less than three minutes. I am sorry.

This Government are committed to: an M6 link road around Lancaster, which has been on the stocks since 1948 but nothing was done about it in 13 years of the Labour Government; the northern hub investment, which will improve connectively between the northern cities and enable them to compete; and investment in broadband through Broadband Delivery UK. People talk about superfast broadband, but a third of my constituents do not have access to normal broadband, and that is the failure of real investment over the past 13 years. I believe that the Government are now doing something about that and that things are happening to build that environment and infrastructure so that the north can compete like any other region of the country. Labour Members talk about a lack of vision, but the vision came from the coalition in the very first months. The commitment from my right hon. Friend the Chancellor was that we deal with the deficit but, at the same time, attempt to restructure and rebalance the country not only between sectors, but between regions. That is the vision of the coalition.

[Karl Turner]

Will the hon. Gentleman give way?

[Eric Ollerenshaw]

I have no time to give way.

Members have talked about the regional growth fund, which is now committed to making the majority of its spend in the north. That will add to the balancing out through real jobs for real factories. At the same time, while the Government are listening, I suggest that too much of the regional growth fund is still concentrated on metropolitan areas. There is a lot more to the north-west than Greater Manchester and Merseyside, and many businesses need to access the fund, so I hope that it will increase as it develops.

I also look forward to the Local Government Finance Bill returning to the House, because I believe that the freedoms that that will give local authorities through business rate retention will be a truly local way of improving investment and contributing to businesses. I welcome the commitment that the Local Government Association and my county council have made to looking at local government bonds as a way of raising investment for local businesses. The key is to unleash the regions and give them the infrastructure to compete not only on the national stage, but on the international stage, and that means superfast broadband and the ability to use our own money to invest in our own business. I congratulate the Government on what they have done about this so far.