Economic Growth
Debate between Karl Turner and Danny Alexander(11 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Chief Secretary to the Treasury (Danny Alexander)
This has been an interesting and, at times, informed debate. Some very good contributions were made in support of the Queen’s Speech, particularly by the hon. Member for Crawley (Henry Smith), my hon. Friends the Members for Eastleigh (Mike Thornton) and for Redcar (Ian Swales), and the hon. Members for Stourbridge (Margot James) and for Croydon South (Richard Ottaway). They were a pleasure to listen to on my 41st birthday—and I am grateful to the shadow Financial Secretary for his good wishes. Many Opposition Members spoke against the Queen’s Speech, notably the hon. Members for Glasgow North East (Mr Bain), for Huddersfield (Mr Sheerman) and for Birmingham, Erdington (Jack Dromey), who presented their arguments passionately.
The debate was opened by my right hon. Friend the Chancellor of the Exchequer—[Interruption.] Of course it was opened by the shadow Chancellor; the Chancellor opened it on behalf of the Government. How could I forget the “busted flush”?
The Chancellor of the Exchequer referred to the welcome improvements in United Kingdom growth in the first quarter of the year, noting the contrast with today’s very unwelcome first-quarter figures in France and Germany. Labour Members certainly talk a great deal less than they did a year ago about their French connection. Perhaps they are worried about the fact that “FCUK” is now thought to be an anagram of their economic policy.
A few of the shadow Chancellor’s colleagues certainly seem to think that he should move on. One senior figure recently said “Balls is a busted flush when it comes to economic credibility.” Given a cost of £28 billion in extra borrowing, the Opposition’s alternative Queen’s Speech is certainly not economically credible, and I urge the House to reject their amendment.
This Queen’s Speech was motivated by the Government’s wish to create a stronger economy in a fair society, in which everyone can get on in life—
Karl Turner
I suspect the right hon. Gentleman remembers that he visited my constituency last year to see the plans for a major new facility for Siemens to manufacture offshore wind turbines. Will he advise his Back-Bench Tory colleagues whether he thinks an in/out referendum would encourage Siemens to say yes or no?
Danny Alexander
I certainly do remember that visit, and I commend the hon. Gentleman for his work to secure that investment, along with many members of the Government, not least my right hon. Friend the Secretary of State for Energy and Climate Change. The Prime Minister has also worked very closely with Siemens in relation to that. My answer to the question is no, I do not think an in/out referendum or campaigning for Britain to leave the EU is particularly helpful in attracting inward investment of the sort the hon. Gentleman describes.
The Queen’s Speech contained a number of measures that will help people who want to get on, because the best way of increasing employment, increasing output and increasing growth is by creating a system that helps those who want to offer work and those who want to find work. Our new national insurance allowance will reduce the costs of employment for employers, and especially for small businesses looking to hire their first member of staff or expand their work force. We estimate that the £2,000 allowance in the Bill in question will benefit 1.25 million businesses, most of them small businesses. Our new tax-free arrangements on child care will reduce the cost of employment for employees, putting money back into the pockets of hard-working families and ensuring that it makes financial sense for parents to go out and seek work. The continuation of our reforms on trainees and apprenticeships will go a long way towards addressing employers’ concerns that some young people lack the right skills, attitudes or experience when applying for work. Alongside our much-needed welfare reforms through the introduction of the universal credit, these changes demonstrate that we are creating a society where it pays to find work, and where the Government will help all who want to do so.