Economy: Growth

Lord Cormack Excerpts

Wednesday 15th February 2012 Lords Chamber

[Baroness Kramer]

My Lords—

[Lord Cormack]

My Lords—

[Baroness Kramer]

My Lords, I understand the budgetary framework, but does my noble friend agree that staying within that envelope but moving faster towards the target of raising the starting rate of tax to £10,000 would provide a boost to consumer confidence and demand that would stimulate business and growth more rapidly?

--- Later in debate ---

[Baroness Wilcox]

I am sorry that the noble Baroness thinks that we are doing absolutely nothing in the north-east, because we are very aware of areas such as the north-east which have had industries that have closed and all sorts of difficulties to contend with. That is why the national insurance holiday until 5 September 2013 has been announced; it is why the European regional development funds were allocated to the north of England in the current EU finance round of nearly £1 billion; it is why the £1.4 billion of the regional growth fund to support projects and programmes that promote jobs and growth in particular supports areas currently dependent on the public sector, as the north-east has been, to make the transition to private sector-led growth. We are very aware of the difficulties there; we would be a foolish Government if we did not look to see which are the most difficult areas of the country and which need our best help. We are doing our best, and I hope that she will encourage us.

[Lord Cormack]

My Lords, my noble friend will remember that in the 18th century, Edinburgh was referred to in cultural and intellectual terms as the Athens of the north. Would it not be a tragedy if in the 21st century, Edinburgh came to be referred to as the Athens of the north for economic reasons?

[Baroness Wilcox]

It will not be. They are a wily lot up there in Scotland, and it is for the people of Scotland to decide their constitutional future. The Government strongly believe that Scotland is better off as part of the United Kingdom, and I do not think that I can do better than quote an English visitor in 1750, Mr Amyat, the King’s chemist, who famously remarked:

“Here I stand at what is called the Cross of Edinburgh, and can, in a few minutes, take 50 men of genius and learning by the hand”.

We do not want to lose them.