Oral Answers to Questions

Debate between Mark Hoban and Claire Perry

Monday 5th November 2012 Commons Chamber

[Mr Hoban]

We try to do as much as we can to reduce the burden of red tape on businesses. That is why the Government set the red tape challenge and introduced the one in, one out rule. All those measures lift the red tape burden from businesses to help them to focus on what they should be focusing on—creating jobs and wealth.

[Claire Perry (Devizes) (Con)]

22. One great barrier for people in work and indeed for people not in work is the cost of child care. Would the Minister look at allowing people on the new enterprise allowance to deduct the cost of child care from their tax bill? That could be taken out of the profits of their company when it was up and running. Will he meet me to discuss the idea further?

[Mr Hoban]

I know that my hon. Friend is a great champion of the importance of child care when it comes to helping people into work. I would be happy to meet her to discuss that option.

Eurozone Crisis

Debate between Mark Hoban and Claire Perry

Thursday 3rd November 2011 Commons Chamber

[Mr Hoban]

That is a slightly bizarre question from the hon. Gentleman, from whom we expect better. We are engaged in the debates in Europe. We need to make sure we stand up for Britain’s interests in Europe, which is why we are keen that areas of vital national economic interest—such as financial services, the single market and competition—are dealt with by all 27 member states rather than just the eurozone countries.

[Claire Perry (Devizes) (Con)]

I am sure that my hon. Friend is aware that there are only 52 shopping days left before Christmas, so for ordinary Greek families now is a terrible time to be facing such economic uncertainty. Does he agree that Governments must live within their means and deliver stable financial policies for their people?

[Mr Hoban]

My hon. Friend is absolutely right. Fiscally prudent policies that tackle the deficit and get interest rates lower must be implemented across the eurozone, so countries enable their economies to grow.

Oral Answers to Questions

Debate between Mark Hoban and Claire Perry

Tuesday 6th September 2011 Commons Chamber

[Mr Hoban]

It has been very clear, listening to all the international commentators talking about what is happening in the UK economy, that their advice has been to stick to the course and stick to plan A. That is the action that this Government are committed to—[Interruption.] This is interesting. We have one plan; the previous Government seemed to have more plans than they knew what to do with, and that is why they lost their credibility.

[Claire Perry (Devizes) (Con)]

What does the Minister think is more likely to encourage growth: cuts in corporation tax or the increases in national insurance that Labour was proposing?

[Mr Hoban]

In our first Budget we were able to reduce corporation tax and set out a clear path to reduce it over the lifetime of this Parliament. We were also able to reverse Labour’s damaging jobs tax.

Section 5 of the European Communities (Amendment) Act 1993

Debate between Mark Hoban and Claire Perry

Wednesday 27th April 2011 Commons Chamber

[Mr Hoban]

Of course, sanctions are a matter for the eurozone countries. They do not apply to us, as we are outside the eurozone thanks to the opt-out secured under the Maastricht treaty and reiterated in the Lisbon treaty, so that point is not relevant to tonight’s debate. We have ensured, through our opt-outs and our commitment not to join the euro—this addresses the point raised by the hon. Member for Glasgow South West (Mr Davidson)—that Parliament remains sovereign.

The Commission has endorsed the UK’s domestic consolidation plan, which is laid out in the convergence programme. As a result of the measures the Government have taken, the path set for fiscal policy means that the UK is on course to meet the Commission’s recommendations and deadline for dealing with our excessive deficit. We are not doing this to get a gold star—to use the language of the hon. Member for Glasgow South West’s analogy—from Brussels; we are doing it for the UK’s economic health. The plan will tackle our record deficit, with expenditure falling as a share of income in every year of this Parliament and national debt falling as a proportion of gross domestic product by 2014-15.

For those in opposition who question this approach and who would condemn Britain to years of unaffordable and wasteful expenditure, let us look at the facts. In Britain we have a higher budget deficit than both Portugal and Greece. Last year, we also had a similar level of national debt to Ireland, but our market interest rates are a fraction of those countries’ rates. Greece’s currently stand at more than 14% and Portugal’s at more than 9%, while Ireland’s is approaching 10%. Britain’s market interest rates have fallen to 3.6%, our triple A credit rating has been secured and we have avoided the sovereign debt storm that has engulfed our continent. That is a direct result of the decisive action that we have taken.

[Claire Perry (Devizes) (Con)]

Does the Minister agree that it is not only the absolute value of interest rates that is important but the spread over countries such as Germany? Indeed, the spread over German bunds for UK sovereigns has dropped by almost two thirds since the election, confirming the validation of this fiscal convergence programme.

[Mr Hoban]

My hon. Friend makes an important point. Interest rates are low and the spread is narrowing. That is a huge benefit to the British economy. It ensures that mortgage rates for families are kept low and it helps to encourage the economy by reducing the costs faced by businesses that borrow. There is a significant benefit to this country as a consequence of the firm action that we have taken. These actions have shown the world that Britain’s future is now in safe hands, and that this is a Government who know how to manage their finances and who have a credible plan that is delivering stability, certainty and growth.

The independent Office for Budgetary Responsibility has forecast growth in each and every year of this Parliament, with growth of 1.7% forecast for 2011. This is in spite of the rise in world commodity prices and higher than expected inflation. The OBR points out that this effect

“creates scope for slightly stronger growth in later years”

than previously forecast. So although it expects real GDP growth of 2.5% next year, it forecasts that it will then rise to 2.9% in 2013, 2.9% again in 2014 and 2.8% in 2015.

The European Commission last month published its own economic forecasts. These show that the UK will grow more strongly in the coming year than Spain, Italy, France, the average for the eurozone, and the average for the EU.