Employment: Cuts in Public Expenditure

Lord Razzall Excerpts

Tuesday 9th November 2010 Lords Chamber

[Baroness Wilcox]

Noble Lords may hear that many times, but unfortunately, it is what we have to base all our decisions on. Private sector growth is not just about spending money, it is about creating the right business environment—for example, cutting red tape—and making the United Kingdom an attractive place to do business in comparison to its international competitors.

[Lord Razzall]

My Lords, has the noble Baroness seen the recent statistic that home owners in the north-west have the highest percentage of negative equity of any UK region? Does she accept that that demonstrates the economic problems that could face that area and highlights the importance of attracting private sector jobs, particularly to the north-west?

[Baroness Wilcox]

I think that we are all aware of how difficult the situation is, particularly in the north. Over all these years, the previous Government were not able to bring together prosperity in that area. We believe that the new way of approaching this—moving power from central government down to local government, where people know what their problems are and what they will need—will mean that the regional growth fund will be available to support projects and programmes, which promote jobs and growth, and, in particular, to support areas that are currently dependent on the public sector to make the transition to private-sector-led growth. We hope then that things will improve regarding the ownership of homes.