Oral Answers to Questions

Tony Lloyd Excerpts

Tuesday 13th July 2010 Commons Chamber

[Mr Gauke]

My hon. Friend is right. We cannot rely on the public sector for growth, simply because we have run out of money.

[Tony Lloyd (Manchester Central) (Lab)]

How many businesses—perhaps the Minister could name them given that there are so few—will do better because of the national insurance cut and will not suffer because of the VAT increase and the cutback in demand, which will be disastrous for businesses in the north-west?

[Mr Gauke]

The fact is that businesses would much rather we focus on dealing with the jobs tax, which our predecessors brought in. We recognise that we have to reduce the deficit and that tax has to play a role in that, but what we can do to create jobs in the private sector is reduce the burden from national insurance contributions. This particular policy, directed at areas where the public sector is largest and where we need a stronger private sector, has to be the way forward.