Economy: Growth

Lord McFall of Alcluith Excerpts

Tuesday 11th October 2011 Lords Chamber

Asked By

[Lord McFall of Alcluith]

To ask Her Majesty’s Government what plans they have to develop a growth strategy.

[The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Baroness Wilcox)]

My Lords, the simple answer is that this Government already have a strategy. The Plan for Growth, published alongside Budget 2011, set out the Government’s plan to put the UK on a path to sustainable, long-term economic growth. As my right honourable friend the Chancellor of the Exchequer reiterated last week, we have a credible plan to reduce the deficit and tackle our debts. We are creating the right conditions to enable growth which is driven by investment and exports and is more evenly balanced across the UK and the sectors.

[Lord McFall of Alcluith]

My Lords, having witnessed almost zero growth during the 17 months of this Government and with pleas from influential Conservative Back-Benchers and sympathetic industry bodies for a coherent economic plan, is it not time for a radical response from the Government to what the Governor of the Bank of England has described as possibly the worst ever financial crisis by the establishment of a national infrastructure and investment bank to generate jobs and employment in this country? I remind the House that we have a duty to the more than 1 million young people in this country—a record level of unemployment not seen since the 1980s—to help them to inherit a worthy future rather than an economic and social graveyard.

[Baroness Wilcox]

The noble Lord has outlined exactly what we are striving to achieve. Without doubt, we are looking across the whole of the education and skills system to consider how to maximise economic growth and we shall be reporting on that in the autumn. He asks what we have achieved. As I have already said, the Business Secretary, Vince Cable, has today announced a £170 million package to drive future growth in manufacturing; we have reduced the main rate of corporation tax from 28 to 26 per cent and it will go down to 23 per cent; a £2.5 billion business growth fund has been launched; and we have already announced 24 enterprise zones in the country, helping to create thousands of new jobs by 2015, which will attract hundreds of new start-up firms with simplified planning rules, superfast broadband and more than £150 million in tax breaks for new businesses over the next four years. I have a longer list, but I am sure that someone else will wish to ask a question. I hope that the noble Lord feels encouraged by my answer.