Economic Growth

Debate between Margot James and Stephen Williams

Wednesday 15th May 2013 Commons Chamber

[Margot James]

rose—

[Stephen Williams]

rose—

The Economy

Debate between Margot James and Stephen Williams

Wednesday 22nd June 2011 Commons Chamber

[Stephen Williams]

I specifically mentioned Greece, and those who have been following events in Greece from afar will know that the reason why the international community is so concerned about Greece is that it has felt until recently that the Greek Government have simply not got to grips with the plan, or have announced a plan but not adhered to it. That is the key difference. This Government have announced plans—difficult plans—to deal with deficit reduction and we are sticking with them, no matter how painful they might be.

[Margot James]

My hon. Friend mentions the views of the bond market, and the previous speaker talked about what PIMCO thinks. Is he aware that PIMCO said just days ago,

“we think the U.K. is implementing what is probably the best combination of fiscal and monetary policies”?

[Stephen Williams]

I thank my hon. coalition colleague for her intervention, which reinforces my points.

The Government response to the stark situation that we inherited in May 2010 has been to tackle the deficit—the yawning gap—in our public finances, but also to build a business climate that is conducive to growth, because as several hon. Members have said, it is through growth that the economy will provide the resources to get our finances back on track.

Finance Bill

Debate between Margot James and Stephen Williams

Tuesday 20th July 2010 Commons Chamber

[Margot James (Stourbridge) (Con)]

I never cease to be surprised by some of the speeches from the Labour Benches. Some could have been made had the Labour party won the last election, because much of what our Government are doing would have to have been done whichever party had got in. Labour Members’ wholesale opposition to cuts and every single tax increase that has been forced on us is nothing short of astonishing. A BBC journalist to whom I was speaking over the weekend had interviewed all five contenders for the Labour leadership contest and only one had had the courage to admit that the public sector was simply too large and unaffordable. We are merely doing what has to be done.

The Labour party proposed spending cuts before the election; that is well known. It postponed the spending review until after the election, but it was planning 50% reductions in the capital budget and 20% reductions in revenue. However, it would not say where the cuts were coming from. Does it not concern Labour Members that they are so isolated? The OECD, the G20, the Governor of the Bank of England and even past Ministers from their own Government are acknowledging that this Budget is a good one in the circumstances. If they are not concerned by what those global organisations and City opinion leaders think of our Budget, will they be concerned about what the average man and woman in the street thinks of it?

The people whom I represent in Stourbridge, in the black country, have had to make cutbacks in their personal expenditure, as families and individuals, for a long time. They have had to prioritise the paying off of their own debt as individuals. The small businesses for which they work have had to pull their horns in. In the past two years, companies in my constituency have seen their order books fall by 50%. How can they manage such a reduction without resorting to the sort of cuts in their own expenditure that our Government are now courageously proposing as part of the Finance Bill?

The public know that the situation cannot go on. The shadow Chief Secretary to the Treasury was right to say that some of the problems were brought about by the banking crisis that precipitated the global recession. But the public also know that this country was the least prepared on entering that recession. From 2001, the former Prime Minister, as Chancellor, started upping the ante and increasing spending year on year without relief. During the years of growth, he made no provision for rainier days.

[Stephen Williams (Bristol West) (LD)]

My hon. Friend may be interested to learn about what happened when we sat on the Opposition Benches on the other side of the Chamber. Our right hon. Friend the Secretary of State for Business, Innovation and Skills, as Lib Dem shadow Chancellor, warned the former Chancellor of the Exchequer about the credit bubble being built up, but he was jeered and hooted at by Labour MPs, who were on this side of the Chamber at that time.

[Margot James]

I thank my hon. Friend for giving me the benefit of some of the history of the House before I was a Member. Many of the opinions of the Secretary of State were indeed prescient. What my hon. Friend has added to the debate is truly shocking.

The public sector is clearly unaffordable. The restructuring has been inevitable; there has been no choice on our side as far as that is concerned. Yes, we will try to make a virtue of a necessity and seek to rebalance the public and private sectors, which this country has long needed irrespective of the conditions in which we now find ourselves.