The Economy

Neil Carmichael Excerpts

Wednesday 26th November 2014 Commons Chamber

[Neil Carmichael (Stroud) (Con)]

This debate has been fascinating, because there seems to be a parallel universe—Labour’s imagined panacea of brilliance when they were last in power, which they have failed to connect to reality. We are filling the gap by dealing with the deficit, the skills deficit and the infrastructure challenges. I want to concentrate on the last two points.

First and most importantly, it is only through skills that we will deal with the cost of living crisis; it is only by empowering people to better themselves that they will generate the necessary additional productivity and earn the higher wages and salaries they need and want, and that is most likely to happen through manufacturing and engineering, as is proved by the facts. While the economy is growing by about 3%, manufacturing is growing by 1.3% or more per quarter, so we should be focusing our skills on that sector.

If we do not rise to the challenge of advancing our manufacturing, turning ideas into deliverable products and always being at the cutting edge of technology, we will fall back. To ensure that we move forward, we need to encourage the Aerospace Technology Institute, for example, which has invested millions of pounds in Airbus, prompting Airbus itself to invest millions more, yielding 791 new orders for aircraft. This Government have encouraged such developments, and I salute them for that.

The other element of the skills strategy concerns schools and colleges. We have heard about university technical colleges already. I say yes to them because they are exactly what we need in our communities: young people continuing with academic study while spending two days a week doing something really useful and learning about engineering. I have been to a few and I want one in my constituency, because I know they will deliver.

The second point concerns infrastructure. In 13 years, Labour only managed to electrify nine miles of rail track, whereas we will have accomplished 880 miles. It is a fabulous achievement and a boost to the economy in terms of activity and investment, and the movement of people and resources. With such projects, the Government have found a way to invest in infrastructure and in doing so have signalled that we are ready for business and investment—and that investment is coming—and that we are upskilling and creating areas of expertise where there were previously none. That is happening not only in the north of England, but in my constituency, where £5 million has converted a decommissioned power station into a centre of excellence for energy and engineering training. That is great, and it is what we need to do.

I want to finish by mentioning the festival of manufacturing and engineering that I run in my constituency. I run it over a week because I know that people need to be clear about the opportunities that engineering and manufacturing provide. There are many firms in my constituency, such as Renishaw, Delphi, Airbus, Lister Shearing—I cannot name them all because I am running out of time—and they understand that message; we must as well.

Infrastructure Investment (Stroud)

Neil Carmichael Excerpts

Tuesday 21st October 2014 Westminster Hall

[Neil Carmichael (Stroud) (Con)]

It is a pleasure to serve under your chairmanship, Mr Hollobone, and to see the Economic Secretary to the Treasury in her place. I will raise a number of infrastructure-related issues involving my constituency.

In 13 years, the Labour Government were effectively unable to find funding for the necessary redoubling of the Stroud to Swindon railway line. Just last week, finally and quite properly, we formally opened that redoubled line with the Princess Royal, as a result of the coalition Government’s delivery of £45 million. The project will make it possible for my constituents to get to London faster, for tourists to get to Stroud more easily and for further works on other lines to take place while the redoubled line is used as a relief route. That is exceptionally good news for the valleys and vale, and it clearly demonstrates that the coalition Government are delivering more investment in our rail network. To put it in context, we will have electrified 880 miles of railway line by the next general election, whereas Labour, in their entire 13 years in government, electrified just nine. The contrast between our commitment to infrastructure investment in railways and that of the previous Labour Government is stark.

The second big project for which I have been campaigning successfully is £5 million of investment in the GREEN—Gloucestershire Renewable Energy, Engineering and Nuclear—Skills Centre at Berkeley, a training centre for renewable and nuclear energy and engineering. The great triumph is that the project will be housed in the former Magnox engineering works for the Berkeley power station, which is being decommissioned. The process is effectively complete. It is a useful project for my constituency, in terms of providing opportunities for young people in the key areas of energy and engineering. It has been spearheaded by Stroud college, now merged with Filton college, and it is yet another example of our focus on delivering opportunities for young people by ensuring that further education can develop, and by providing facilities, such as through the infrastructure investment of £5 million at Berkeley.

That is the background to my submission for other investments in the valleys and vale in the forthcoming years. Following the success of getting £45 million for the redoubling of the Stroud-Kemble railway line, £5 million for the GREEN project at Berkeley and a load of other additional moneys, I want to set out the case for more investment in the valleys and vale.

I start with my campaign for a university technical college in Berkeley. When we have the buildings for the GREEN Skills Centre, it will make sense to have a UTC, so that we can focus on engineering and provide appropriate skills for our growing manufacturing sector, particularly in advanced manufacturing, an area in which Stroud already has an excellent reputation. Firms such as Renishaw, Delphi, Dairy Crest, Omega Resource Group and others contribute to an exceptional level of growth and huge opportunities for young people.

That is why we currently enjoy just 1.2% unemployment, a huge change from what I inherited back in 2010, when more than 1,400 people were unemployed. That number is now 630, largely because the real economy has taken off. We are not only translating that into jobs for hard-working families, improving their chances of avoiding poverty, as the Minister of State, Department for Work and Pensions, my hon. Friend the Member for Forest of Dean (Mr Harper), said in the previous debate; we are also seeing some growth in wages and salaries. That is really impressive, and it is exactly what I want to bring about.

The second project that I will discuss is investment in Stonehouse. It is absurd that people from Stroud and Stonehouse must go via Gloucester or Swindon to get to Bristol. It is not good for growth or for individuals seeking opportunities in Bristol or elsewhere. I want a railway station in Stonehouse, so people can get from there to Bristol easily and swiftly. It is appropriate because the business case stacks up. There is substantial growth in the business parks in Stonehouse, and there is also a case for ensuring that commuters can get to Bristol and Birmingham more easily. The project would be easily facilitated if we could get agreement from various stakeholders, and if it were consistent with the electrification of the line, which is targeted for 2020.

I believe that infrastructure can produce growth in areas that have been a bit isolated. Sharpness is a good example. At one point, it was connected to the Forest of Dean by a bridge over the Severn. There is a case for doing so again. Not only do the communities like to be together—they would like to be reunited—but Sharpness has a huge amount of growth potential, with a thriving port and many industries around it. Connecting it to the Forest of Dean would bring more growth and ease congestion around the A40 and A38.

One project that deserves special mention is tackling the A417 bottleneck. It is bang in the middle of Gloucestershire, and it has a terrible record of road accidents; deaths are all too frequent. We must end the congestion that it causes. Gloucestershire county council has made a strong case for something to be done. I am keen for the Minister to recognise the strength of that case, so that we can deliver for Gloucestershire a solution to a long-term issue that has caused problems for not just the people of Gloucestershire but people going through the area, the industries, supply chains and everything that depends on decent connections.

It is also critical to consider the M5. That is more of a long-term project, but junction 14 is a source of difficulty for commuters and hauliers due to the peculiar traffic arrangement there. It is also important to recognise the need to improve access from Dursley through Cam to the M5. I have not yet made up my mind whether that will involve reconstructing junction 14 or building a new junction, because that is properly a matter for civil engineers to explore, but we need to get that debate on the table.

Essentially, I have set out infrastructure projects for the future of the valleys and vale that make a huge amount of sense in terms of economic growth. There is a good case for each of the projects, and taken together, they will provide opportunities for our young people and businesses to thrive and prosper, which is exactly what we want. I set up a commission to look into those matters, which is why I can use so much evidence and so many facts to support each case. I thank the various members of my commission, including Councillor Penny Wride, John Stanton and Robert Evans. They and many others have contributed powerfully to the discussion on these issues.

I ought to mention that infrastructure is about not just roads and rail, although they are important, but protecting the valleys and vale, so reference needs to be made to the tremendous work that the Government have done to ensure that we are properly protected against flooding. The Environment Agency has done a huge amount, having received funding for various projects, and I am off to Lapper Ditch on Friday to see the results of the £700,000 being spent on a significant flood defence project there. That work is all about recognising that the area I represent has huge value, needs to be protected and has people who make massive contributions to our economy and who need to be supported. I am pleased, therefore, that we have made so much progress in improving flood defences. Of course, there is more to do and I will constantly ensure that flood defences are maintained and, where necessary, improved. We need to be vigilant, but I want to put on the record my thanks to the Government for contributing so much additional money in recognition of the need to defend our beautiful part of England, which is the valleys and vale.

To reinforce my case, I have surveyed a large number of people in my constituency about which infrastructure projects they think are important. They have saluted the projects that have already been delivered, to which I have referred. Indeed, almost all the projects I have announced have attracted considerable support in the survey. It is a real piece of evidence that needs to be taken into account. People understand what we are trying to do and why, and therefore they support our efforts.

I have received a huge amount of advice, and it is critical that I demonstrate that it has underpinned so much of the efforts that I have talked about. For example, the Institution of Civil Engineers has been a really interesting source of advice, in terms of the value that it attaches to infrastructure investment. Closer to home, the local enterprise partnership has been powerful in articulating the case for these projects. In fact, in its former guise, as Gloucestershire First, it was pivotal in helping to secure the £45 million of funding from the Government, and it has also helped to promote the case for the GREEN project at Berkeley through its strategic economic plan.

Gloucestershire county council—and indeed Stroud district council, although it is Labour-led—has been quite good at advancing the case for investment. Stroud district council has, in its plan, the idea for a bridge from Sharpness to the Forest of Dean, and it recognises that Stonehouse railway station needs to be upgraded or moved. I can therefore say that a large number of stakeholders have contributed to this discussion, and I am really pleased to make that point to the Minister as further evidence of the strength of the case I am making.

With the economy growing in the Stroud valleys and vale, there are some pressures. One of them, slightly paradoxically given my emphasis on road transport, is a shortage of lorry drivers, newly trained lorry drivers in particular. I want to put on the record the need for us to encourage young people to consider that career as a possibility, because if we do not deal with logistical challenges, we might find that growth does not happen as quickly as we would like, or in the way that we would like. I make a plea to anyone listening to this debate: consider encouraging young people to move into haulage.

My last point is that for three years I have been running a festival of manufacturing and engineering. I have attracted support from a wide range of businesses, and I have made sure that schools and colleges understand and support the idea that young people can have a future in manufacturing and engineering. If we consider that in the context of how our real economy can grow, it is our responsibility to put in place the infrastructure for that growth to happen unhindered. That is why it is important for us to have better links with London, through rail; why we need improvements to roads through Gloucestershire, such as the A417; why we need facilities to train young people in engineering and the energy industries; and why we need to take the whole package together and consider what we can do next for the Stroud valleys and vale, to ensure that any growth is not only sustained but increases.

Oral Answers to Questions

Neil Carmichael Excerpts

Thursday 3rd July 2014 Commons Chamber

[Mr Vaizey]

I am very pleased to have that question from the right hon. Gentleman. Although we obviously welcome investment from the west coast of America, particularly yesterday’s announcement by Warner Bros. that it will be filming J. K. Rowling’s “Fantastic Beasts”, it is important to remember that Bollywood is bigger than Hollywood, and we need also to encourage Indian film makers to make films in this country with our excellent crew and casts.

[Neil Carmichael (Stroud) (Con)]

T10. To reinforce points already made this morning, what assurance can the Minister give my constituents in Stroud valleys and vale that they will have access to broadband so that their businesses and lifestyles can thrive?

[Mr Vaizey]

We are putting more than £1 billion into broadband roll-out. We continue to invest to take it to 95%. I will happily work with any Member to ensure that the broadband rural programme goes smoothly in their constituency.

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The Ministers for Women and Equalities were asked—

[Neil Carmichael (Stroud) (Con)]

1. What recent discussions she has had with her counterparts overseas on protecting the rights of women and girls internationally.

[The Minister for Women (Nicky Morgan)]

The Government are committed to the protection and promotion of women’s rights in the UK and internationally. I met many of my overseas counterparts at the global summit to end sexual violence in conflict last month, which brought together 128 country delegations, UN agencies and civil society. We discussed how best to achieve that aim, including providing opportunities for international collaboration and the exchange of best practices.

[Neil Carmichael]

I thank the Minister for that answer. What can the Government do to help prevent distressing cases such as that of Mariam Ibrahim which arose simply because she was a Christian?

[Nicky Morgan]

I am grateful to my hon. Friend for raising this case, and pleased that Mariam Ibrahim and her family have now been released. They are currently staying at the US embassy in Khartoum. The British embassy in Khartoum continues to follow the case closely and is in close contact with the defence team. We continue to raise our concerns about this case and the broader human rights situation in Sudan with the Sudanese authorities, including with a recent delegation of Sudanese female MPs whom I met. We will continue to work bilaterally and in international forums such as the UN to tackle violence and all forms of discrimination against women.

Office for Budget Responsibility (Manifesto Audits)

Neil Carmichael Excerpts

Wednesday 25th June 2014 Commons Chamber

[Ed Balls]

I will make a little progress before giving way again.

In addition to primary legislation, which we need, and a timetable, because there is still time, the third issue is resources and modalities. In particular, who would the reform apply to? The head of the OBR is rightly concerned to ensure that this is a manageable process and that the resource implications can be taken into account. I have proposed that it should apply to governing parties and prospective governing parties. To that end, the legislation I delivered to the Chancellor in October proposed that the OBR should provide independent scrutiny and certification of the policy costings of any political party that has at least 5% of seats in the House of Commons, at the request of that party and subject to receiving sufficient information from it.

I should emphasise that my view has always been that that should be voluntary and that no party should be forced down that road, and that remains my view. Let me be clear that tough, rigorous and independent scrutiny of Labour’s election manifesto is important. I believe that it should be important for Conservative and Liberal Democrat manifestos, too. In tough times we must all ensure that all our policies are properly costed and funded, because people rightly want to know that the sums add up.

[Neil Carmichael (Stroud) (Con)]

Would this new-found desire for consensus not be strengthened if the shadow Chancellor and the rest of his Front-Bench colleagues admitted that the previous Labour Government played a central role in causing the problem we are dealing with?

[Ed Balls]

We are trying to have a discussion about an important reform for the future. There have been moments in the life of this House when consensuses have been formed. The Conservatives voted against Bank of England independence in 1998, but in the end they joined the consensus. They voted against the move from self-regulation to statutory regulation in our financial services, but in the end they joined the consensus. I think that there is now a consensus that we should not join the euro, but I wish there was a consensus that we should stay in the European Union, which would be a good thing. On this matter, however, we should be able to form a consensus.

I can agree that regulation of financial services under the previous Government was not tough enough, but I also say that, if he were here, the Chancellor of the Exchequer would agree that he criticised me at every stage, as did the Exchequer Secretary, for being much too tough on financial regulation, rather than too soft. The issue is whether we can form a consensus for the future.

Oral Answers to Questions

Neil Carmichael Excerpts

Tuesday 24th June 2014 Commons Chamber

[Neil Carmichael (Stroud) (Con)]

T10. With manufacturing growing at an impressive rate, as I saw on my recent visit to ABB in my constituency, what steps is the Chancellor taking to ensure that manufacturing growth remains sustainable?

[Mr Osborne]

We are taking steps to reduce business taxes, when others would put them up. We are also taking steps to ensure that energy costs for manufacturers are lower; we set out a package in the Budget. Above all, we are creating a country in which people want to invest and create jobs because they have confidence in our long-term economic plan.

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.

Oral Answers to Questions

Neil Carmichael Excerpts

Tuesday 29th April 2014 Commons Chamber

[Danny Alexander]

The hon. Lady will know that the OBR forecasts earnings to grow more rapidly than inflation throughout the forecast period—that is the answer to the question. I have to say that the hon. Lady seems to have been listening to the shadow Chancellor rather too closely. I notice his recent quote:

“I had no awareness at all that there had been any damage”.

He was referring to his car rather than to the British economy, but it is about time that the Labour party apologised for the mess that it made of the latter.

[Neil Carmichael (Stroud) (Con)]

7. What fiscal steps he has taken to encourage manufacturing in the UK.

[The Financial Secretary to the Treasury (Nicky Morgan)]

The Government are committed to strong and sustainable economic growth that is balanced across the economy. The manufacturing sector, as my right hon. Friend the Chancellor has already said, is a vital part of it. In the recent Budget, the Government announced a package of measures to reduce energy bills for manufacturers and improve their competitiveness, for example, by capping the carbon price floor. Earlier this month, the Government announced a £100 million extension to the advanced manufacturing supply chain initiative.

[Neil Carmichael]

I echo the Chancellor’s welcome to the excellent GDP numbers. Despite the fact that the Labour party continues to wallow in its own failed predictions of doom, manufacturing has actually increased by 1.3%. That is very obvious in my constituency. With the long-term economic plan in mind, what more can we do to promote British manufacturing?

[Nicky Morgan]

I thank my hon. Friend for that question. I understand that he established in his constituency the annual festival of manufacturing and engineering, and that the next event will be held in November 2014. As he said, this morning’s GDP figures show the strongest annual performance for manufacturing for three years—up 3.4%. He asked what more the Government can do. In the Budget last month we announced plans to double UK Export Finance’s direct lending programme and further to increase our support for apprenticeships.

Amendment of the Law

Neil Carmichael Excerpts

Thursday 20th March 2014 Commons Chamber

[Vince Cable]

I believe that about a third of the total number who are classified as “youth unemployed” are, in fact, engaged in full-time study. One of the big changes for which the coalition Government should take credit is the continued expansion in higher education: despite all the doomsday predictions from Opposition Members about the radical higher education reforms, the number of people going into higher education, particularly those from disadvantaged backgrounds, has risen.

[Neil Carmichael (Stroud) (Con)]

Does the Secretary of State agree that the issue of our productivity is linked directly to skills? Is it not rather ironic that the shadow Chancellor, who was Secretary of State for Children, Schools and Families, signally failed to help the nation to secure the right degree of skills—unlike us, with our long-term economic plan?

[Vince Cable]

Yes, indeed. I think that the apprenticeship model which we are now developing and expanding rapidly, in terms of both quality and quantity, is the remedy for the long-standing neglect to which my hon. Friend has rightly drawn attention.

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[Neil Carmichael (Stroud) (Con)]

It is a great honour to follow the hon. Member for Luton South (Gavin Shuker), not least because he and I will be working together on the all-party group on polar regions, which is absolutely fabulous.

The Budget is a staging post in the mission to rescue the British economy. It is an important staging post and it signals some important messages. First, I will introduce some thoughtful points on productivity, which we have discussed from time to time in the Chamber. Increasing productivity is the way to deal with the cost of living crisis, because we need a work force who are skilled to such a level that we can enhance our capacity in manufacturing, engineering and related activities. The importance of ensuring that we have a skilled work force is embedded in our long-term economic strategy and is part of the Budget because, as I have said, it is a staging post.

In my constituency, I have promoted manufacturing and engineering through the festival of manufacturing and engineering, which is designed to ensure that young people are introduced to the advantages of working in manufacturing and the opportunities that are provided by a career in engineering. They will end up dealing with the cost of living crisis by contributing to increased productivity and an economy that blasts forward by competing powerfully not just in the EU, but in the global economic race that we are undoubtedly in.

I am pleased to welcome the changes to pensions, annuities and so forth. Encouraging people to save is a really important part of our strategy, because the savings ratio in this country has never been worse. The Chancellor has recognised that and taken steps to encourage people to save. That is what the changes to pensions and annuities are fundamentally all about. We should welcome them as a huge step in the right direction, not only in ensuring that elderly people have choice but in improving people’s overall capacity and willingness to save. They are great news.

Something else that is important and relevant to my constituency is the framework that we have already created to encourage investment in infrastructure. We really need to do that, and I could mention a lot of projects in my constituency that will need investment in the immediate future. One is a potential new bridge across the Severn to ease congestion on both the Forest of Dean side—my hon. Friend the Member for Forest of Dean (Mr Harper) has made that point several times—and my side, where such a development would enhance economic growth opportunities in an area where they need to be created.

The changes to ensure that firms that are high energy users will benefit is great news for my constituency. We have a lot of companies that have a huge appetite for energy. BPI, a recycling firm, is a case in point. It has sites across the country, which will all benefit from the changes.

We have to ensure that our overall package is continued with, and that is why it is important to talk about the long-term economic plan as frequently as we do. Part of that plan is to reduce the deficit. Of course we are disappointed that the deficit is not as small now as we had hoped, but we are travelling in the right direction and can say that it will be further reduced in significant chunks. That is what the Chancellor has promised and will now deliver. That is the bedrock of our economic plan, because we cannot have sustainable growth if we are constantly threatened with high interest rates and constantly undermined by having one of the largest deficits in the western world. That part of the long-term economic plan must not be forgotten and must be promoted whenever possible. The real economy, which I have been talking about, is the key to delivering jobs, tackling the cost of living and putting Britain back into the competitive place that it should hold globally on the economy and growth.

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[Mr Tobias Ellwood (Bournemouth East) (Con)]

It is the afternoon after the day before. The metaphoric bunting has gone, the media have left Westminster Green and the Chamber and, indeed, the Galleries have emptied—but that just might be because I am on my feet. This is the point at which enough time has elapsed to appreciate the full impact of the Red Book. If the newspaper headlines, radio interviews and a very weak Opposition response are anything to go by, this Budget is standing up to scrutiny and is already being recognised as a significant statement of intent, building on this Government’s long-term economic plan of reducing the deficit, creating more jobs and making people more financially secure.

The Chancellor began his speech by reminding us of the scale of the economic mess we inherited, caused by banks lending funds they did not have to people who could not afford it in ways they did not understand. It has taken a new Government completely to reform the regulatory system and to introduce the necessary changes to make Britain competitive again. Unlike the predictions from the Opposition, this was achieved without any double or triple-dip recessions in sight, as my hon. Friend the Member for Gloucester (Richard Graham) said.

The first primary indicator for the economy is employment, and a record number of people are now in work. The figures from my constituency point to the fact that the number of unemployed claimants for last month fell to 1,785, down 487 from a year ago. The shadow Chancellor tried to suggest that youth unemployment had somehow increased. He wants to be Chancellor. He wants to be the person in charge of the numbers, but he fails to mention that the figures include full-time students. I am pleased to say that the number of students at Bournemouth university, the Arts University Bournemouth and Bournemouth and Poole college have increased. They are included and he should know that.

[Neil Carmichael]

The same is true in my constituency. We have falling unemployment and we are looking for more people with engineering skills. Does my hon. Friend agree that the real success of this Government is the way in which they have stimulated the real economy?

[Mr Ellwood]

Absolutely. I concur with my hon. Friend, and that is one reason why more money has gone into apprenticeships as well.

My second point concerns GDP growth. A year ago, the OBR predicted growth for 2013 at just 0.6%. In fact, it came in at three times that level, and the forecast for next year has changed from 1.8% to 2.4%.

Thirdly, inflation now sits at 1.9%, well within the range set by the Bank of England. Fourthly, thanks to our low interest rates, the cost of borrowing by individuals, banks and the Government is low. But, of course, low interest rates are not so welcome to savers, hence this important announcement to end compulsory annuities, making it cheaper and simpler for pensioners to draw down their savings.

Oral Answers to Questions

Neil Carmichael Excerpts

Tuesday 11th March 2014 Commons Chamber

[Neil Carmichael (Stroud) (Con)]

Part of the long-term economic plan is the drive to improve skills, which is relevant to my constituency, where manufacturing is important and growing. Does the Chief Secretary agree that it makes a big contribution to driving up productivity?

[Danny Alexander]

I totally agree with my hon. Friend and I congratulate him on the work he has done in his constituency to promote the take-up of apprenticeships. The fact that there have already been 1.6 million apprenticeship starts during this Parliament compared with about 1 million during the previous Parliament shows the additional emphasis, even in these tough financial times, that this Government are putting on making sure that young people have the right skills for today’s economy.

Pub Companies

Neil Carmichael Excerpts

Tuesday 21st January 2014 Commons Chamber

[Chloe Smith]

My right hon. Friend is absolutely correct. That point will resonate up and down the land in urban, suburban and rural pubs and communities alike.

[Neil Carmichael (Stroud) (Con)]

I am grateful to my hon. Friend for giving me an opportunity to point out that the Red Lion in Arlingham would have been closed by a pubco but is still open and now owned by the community. That is a good example of communities taking charge of their destiny and that of their pubs.

[Chloe Smith]

I am grateful to my hon. Friend for pointing that out. I recently made the acquaintance of another landlord in his constituency who not only runs a good pub, but thinks that my hon. Friend is doing a good job as his local MP, which I think is very important.

The value that pubs can give to their communities has been quantified in various places. I want to mention a few figures which have a bearing on the debate. The industry is said to sustain 900,000 jobs nationally and each pub contributes £100,000 a year to its local economy. Crucially, about 30% of the industry is owned by the pub companies, and it is that segment that we are talking about. I support action to make that segment of the market fairer.