Industrial Strategy

Debate between Kwasi Kwarteng and Norman Lamb

Wednesday 18th April 2018 Commons Chamber

[Kwasi Kwarteng]

The hon. Gentleman talks about predictions, but let us look at the past. We have cut corporation tax in every single year since 2010, but revenues from that tax have gone up. That shows exactly that the Government’s strategy is right.

Let us consider ideas about investment in our people and their education. When I go around schools in my constituency, I am struck by the fact that everyone is talking about STEM subjects—science, technology, engineering and maths. These subjects are being fostered and encouraged by the Government. The message is very much going out, right through the educational establishment and across schools, and it is very encouraging that that is happening. In my constituency, a number of schools are looking in particular to increase STEM participation among female students, which is very exciting. All these things are part of an industrial strategy. All these things will make the country more prosperous and more productive—they will drive future productivity growth. The Government are to be commended for taking an unusually medium to long-term view of the UK economy. Far too often in this House, we sling insults, with lots of abuse and all that, and we are very focused on the short term. It is exciting that in this industrial strategy we can think in terms of the medium and longer term.

On that note, infrastructure spending is very dear to my heart, as the Member for Spelthorne. Heathrow—the “H” word—is something that this Parliament will have to decide on, hopefully in the next few months, but certainly in the next couple of years. I have always been clear about my support for the third runway—or rather, I should say, the expansion of Heathrow. That is vital to drive forward the economy, productivity growth and prosperity, so we will have to tackle that.

On the broad range of infrastructure issues, investment in human capital with regard to STEM subjects, and research and development—

[Norman Lamb (North Norfolk) (LD)]

I absolutely welcome the increased investment in research and development to which the hon. Gentleman refers, but does he agree that aiming to get to the OECD average in 10 years is not exactly ambitious for this country?

[Kwasi Kwarteng]

There are a huge number of ambitious initiatives in the industrial strategy. We are very good in this House—Opposition Members certainly are—at running the country down and pointing out shortfalls. However, as my hon. Friend the Member for Walsall North (Eddie Hughes) pointed out, we have some of the best universities in the world, and we have the best talent, as the Secretary of State mentioned. The trick, and the ambition, is to try to marry some of that talent with commercial productivity, and that is what the Government are trying to do. That is an exciting development. When we look at world-beating innovation and scientific research, we see that this country is right at the top of any list. We should celebrate that and try to improve on it, and I fully accept the remarks that have been made about that.

I am delighted that we are debating this issue because, as far as I can recall, it has been a very long time since we have talked about industrial strategy, certainly in this House. We are putting to bed a lot of the ghosts of the 1970s. I know that the Labour party does not necessarily want me to talk about the 1970s, but they were a disastrous era, when the so-called industrial strategy collapsed into a slightly absurd game of trying to pick winners and of backing industries that were totally failing. It is a real relief to hear a plan from the Secretary of State that moves away from some of those old ideas. Anyone who thinks we will drive innovation, R&D and talent by nationalising vast swathes of the British economy—anyone who thinks that is a viable option—deserves some sort of break or respite, because they are clearly not thinking particularly straight. I do not think it is right to confront this country with threats of nationalisation and confiscatory taxation. I do not think that helps the investment climate, and it is not a good form of industrial strategy. I am delighted that we are discussing this, and I look forward to contributions from Opposition Members that will be made in a more constructive spirit than the speech we heard just a few minutes ago.

NHS Pay

Debate between Kwasi Kwarteng and Norman Lamb

Wednesday 13th September 2017 Commons Chamber

[Kwasi Kwarteng]

That was a fair intervention, but I completely disagree with the hon. Lady’s point. The deficit had nothing to do with the then Secretary of State for Health. It was not the previous Secretary of State for Health who caused the £160 billion deficit the Government inherited in 2010. Naturally, when running a huge deficit—I think it was something like 12% of GDP—one has to find savings in the budget. The question I pose to Labour Members is, how would they find the extra money? There are only two ways to do that: the Government can either raise the money through taxation, or the Chancellor has to borrow the money. It is very unclear to me what the Labour party proposes to do to increase the pay of public sector workers. No doubt it will have a plan to increase it by 5% or 10%—I do not know by exactly how much it wants to put up public sector pay—but it would have to fund that. I looked at the Labour election manifesto and I think it spent the tax on people earning over £80,000 about 10 times over to fund their various projects and policies.

We cannot go on kidding ourselves and kidding the British people. I very much like the point made by the right hon. Member for North Norfolk about the fact that we have to be serious about how we are going to fund the NHS and social care provision. He described the current model as—his word—unsustainable. I do not share that view—I think we can fund the NHS adequately for the rest of the Parliament—but his general message was right. It does not make any sense for Labour Members to scream, holler and shout about Tory cuts without having a serious proposal.

[Norman Lamb]

To work together in a constructive, rational and mature way requires the Government to agree to do it. We are still waiting. I met the Prime Minister in February. Please make a decision.

[Kwasi Kwarteng]

I am not privy to the conversations the right hon. Gentleman has had with the Prime Minister—that is something he might wish to take up with her—but this is a serious debate. As he said, we cannot be honest with people on this issue if we are simply screaming and shouting across the Dispatch Box.

Conservative and Opposition Members have made the point that we have extremely impressive professionals across the public services. The level of public service provision here in Britain is right at the top of the global rankings. I have spent time in Europe, Africa and across the middle east. The public services we have in Britain are really world class and we must never lose sight of that in these discussions. The nature of the debate has been very fruitful and we have had a measure of courtesy, but it does not make sense simply to holler “Tory cuts.” That is what I have heard in seven years of trying to address what are very serious problems.