Budget Resolutions and Economic Situation

Debate between Sammy Wilson and Brooks Newmark

Wednesday 19th March 2014 Commons Chamber

[Sammy Wilson (East Antrim) (DUP)]

I welcome the announcement that the Chancellor made about the growth figures. In my constituency in Northern Ireland, there has been a 19% fall in unemployment as a result of the increased growth over the past year. That means that 550 individuals are earning money who were not earning money this time last year. That is to be welcomed.

I do not want to take a partisan view of the Budget. Fortunately, we in Northern Ireland do not have to be involved in the competition between the Government parties and the Opposition party here. I want to look objectively at what was said in the Budget.

My first concern is about growth. The Chancellor gave the growth figures, but we must remember that the figures have been revised time and again. Even though it has the imprimatur of the Office for Budget Responsibility, one has to ask what that growth is predicated on and whether it is sustainable. The growth up until now has been determined by consumer expenditure. According to the figures in the Budget, consumer expenditure will not jump dramatically, but, compared with the last two years, we will see a 48-times jump in private investment and a three-times jump in exports. If all the measures that the Government have taken to improve investment, such as the reduction of corporation tax and the enhanced capital allowances that were announced last year, and all the measures that they have taken to improve exports have not worked in the past two years, on what is the Chancellor basing the massive jump in private investment and exports that he is predicting will sustain growth for the next year?

[Mr Brooks Newmark (Braintree) (Con)]

The hon. Gentleman makes a good point, but from a business man’s standpoint, the decision to invest is based on business confidence. When there is growth, they feel confident about investing in their businesses, which, in turn, creates jobs and more growth.

[Sammy Wilson]

I would accept that point if I had not heard Government Members saying for the past three years that businesses are now more confident because there is a firm hand at the helm. We have not seen that come through in the figures to date. That is my first concern. I want growth to be sustained. I want the Chancellor to succeed. It does not matter to me electorally whether he succeeds or fails, but it matters to my constituents.

My second point is about the distribution of growth. Most of the growth has been in the south-east of England. Regions such as Northern Ireland, where there has been growth of 0.3%, have not benefited.