Amendment of the Law

Margot James Excerpts

Monday 26th March 2012 Commons Chamber

[Margot James (Stourbridge) (Con)]

This is a Budget for long-term growth set out in extremely difficult economic conditions. The lowering of the corporation tax main rate to 24% and of the small profits rate to 20% will give us one the lowest rates of corporation tax in the OECD. Combined with the reduction in the top rate of income tax to 45p, that presents the UK as a lower tax country that rewards enterprise and will attract the sort of investment we saw just last week from Nissan and GlaxoSmithKline.

There has been much talk recently of the need for an industrial strategy. Lord Heseltine wrote in The Times today on this subject. Industrial strategy got a bad name in Britain because of the damage that such policies wreaked in the ’60s and ’70s, but the world is a different place now, and I believe that the risks of getting industrial policy wrong are much reduced. The quality and extent of real-time information on the performance and prospects of different sectors of the economy is far superior to what it was. Multinational companies have replaced nationalised industries. As large employers, they are far more mobile, and the UK is now in competition, for export markets and inward investment, with many more countries falling over themselves to be open for business. The status of Singapore, with its state-of-the-art education system and infrastructure built around the needs of global companies, such as GSK, has shown that it is capable of becoming a science hub for the whole of south-east Asia in less than 20 years. That is an example of what the UK is up against.

I was delighted, therefore, that my right hon. Friend the Chancellor announced new finance packages in the Budget to promote trade and exports. Until recently, UK Export Finance, formerly the Export Credits Guarantee Department, was focused on larger companies, mostly in the defence and aerospace sectors. That changed with last year’s relaunch, and the organisation, now known as UK Export Finance, has a brief to support smaller companies. Export insurance policy is being widened to cover all products and services, including contract bond support for small and medium-sized enterprises, and it is vital that we now promote awareness of these new services among medium-sized companies in our constituencies.

We are making huge progress in this regard. The west midlands saw the largest increase in the number of exporters in the final quarter of 2011 compared with a year earlier. That followed a number of months in which the west midlands had experienced decreases in the number of exports. The improvement is most welcome. It is excellent that so many local firms are looking to sell to new markets outside the EU. Some 55% of west midlands exports are now going to non-EU countries. That must extend beyond the BRICs, as outlined by my hon. Friend the Member for Wolverhampton South West (Paul Uppal), to the next 11 countries, such as Bangladesh and Nigeria, which have huge growth rates. I am delighted that many companies in the west midlands and the black country are taking advantage of those opportunities.