Balancing the Public Finances

Debate between Neil O'Brien and Chris Evans

Tuesday 11th July 2017 Westminster Hall

[Chris Evans]

I accept that we are not growing at the same rate as we have historically. That is the point I was making. I believe there is an inherent weakness in the economy; it has been over-reliant on monetary policy—quantitative easing, low interest rates. But I do not believe that there has been investment in the real economy. That is the point I am making and that is why productivity is down.

The Prime Minister has mentioned the industrial strategy, but it is still empty words. There is no insight or strategy for how the Government will attract investment.

[Neil O'Brien (Harborough) (Con)]

The hon. Gentleman says that the industrial strategy is empty words. However, the industrial strategy has involved, for example, the biggest increase in research and development and science spending since 1979. How can he possibly say that those are just empty words? Those are real actions that will increase the trend rate of the growth of the economy.

[Chris Evans]

When productivity is down, those things are too little, too late. They should have been thought of after the financial crash, when the Government told us from the very beginning that they were going to rebalance the economy and invest in manufacturing. I remember the former Prime Minister even saying at one point that we were going to invest to become an economy that makes things rather than sells them. That has not happened, so it is a bit late in the day to be talking about this.

In the light of the report by the British Chambers of Commerce, it is so important, now more than ever, that the Government implement a strategy to attract investment and generate the economic growth that we all want to see. That is easier said than done in a globalised world. Too many people have been left behind by globalisation. However, globalisation is here, and that will not change. The financial crash was probably the first crisis of globalisation. The only way to address growth, higher inequality and rising insecurity is to build a globalisation that works for all.

Society has to redistribute some of the gains from new technology. Technology constantly evolves and can lead to rapid changes in production, and therefore reskilling must be a constant. In a job market subject to frequent radical changes, people’s prospects rely solely on lifelong learning, which should be factored in by each and every employer. In the age in which we live, anyone can produce anything, anywhere. Someone sitting in their bedroom right now can broadcast across the world in minutes. They can sell to anyone at any time. We need to harness that entrepreneurial spirit. It should be the Government’s intention to bring that about in a way that equips people with skills for the future.

We live in exciting and changing times. With the right level of investment in our people, the age of austerity can come to an end.