The Economy and Living Standards

Neil Carmichael Excerpts

Thursday 12th June 2014 Commons Chamber

[Neil Carmichael (Stroud) (Con)]

It is a great pleasure to speak in this debate about the economy and the cost of living, which are central to the Government’s mission, as expressed by the long-term economic plan, which includes a number of factors that are critical to the long-term plans of this country as a whole. One is, obviously, reducing the deficit; another is making sure we have more skills and more infrastructure, along with the overall aim of rebalancing the economy.

That is of great importance for my constituency in Stroud valleys and vale, because we have more than 9,000 people working in manufacturing and engineering. That is one of the reasons why I have launched the festival of engineering and manufacturing, to put a focus on that heritage and the prospects of the sector as a whole. It is also critical to ensuring that young people have opportunities and make themselves aware of the examinations and other processes that they might like to pursue to benefit their careers.

But there is more to do, and that is one of this Government’s missions, now and after the next general election. For one thing, we need an infrastructure that enables people to get out and about and to work. In my constituency, that means improving connections with other parts of Gloucestershire—for example, by moving the railway stations to ensure that people can get to Bristol from Stroud and so forth. These are useful ideas that add up to a strengthening of an already vibrant economy that is ready for the next challenges.

The other thing we need to do is strengthen our provision of skills. Again, we have some plans in my constituency. We want to establish, in effect, a unit in a now disused part of Berkeley Magnox power station—which is now decommissioned—to provide skills for green technology for renewables and also nuclear technology. That is all good news for young people who want jobs and want to do well.

I drew the attention of the Prime Minister to the third issue I want to raise when I took him to Renishaw—a really powerful firm in my constituency, employing nearly 4,000 people, with hugely innovative and impressive products. It is a kind of Mittelstand type of firm. We need to see more of them in this country—certainly in the valleys and vale—and we need to encourage them to grow and seek to introduce even more research and development.

There are two areas worth thinking about here. The first is the taxation system, and we need to enable people to think long term without being bedevilled by short-term planning systems in taxation. They need to think beyond the horizon, which is something that our competitors, notably Germany, are often able to do. We need to adjust our taxation system to enable Mittelstand-type firms to thrive. So, too, we need to see measures to improve access to capital. That is why I am so pleased with the proposed Bill to achieve that, which we shall debate in due course.

The other big issue is ensuring that our supply chain is responsive enough to deal with the continuity of growth. We have already established centres to promote the aerospace sector and the automotive sector, all of which is good.

In conclusion, if we want to increase living standards, the answer is increased productivity. The issues I have highlighted—part of the long-term plan as an overall strategy—are precisely the tools to do the job, and the Government are continuing to work on them.