Department for Business, Innovation and Skills (Performance) Debate
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Vince Cable
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Department for Business, Innovation and Skills (Performance)
Vince Cable Excerpts(13 years, 10 months ago)
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The Secretary of State for Business, Innovation and Skills (Vince Cable)
I welcome this opportunity to have a serious debate on economic growth and jobs, but listening to the right hon. Member for Southampton, Itchen (Mr Denham) giving us a lecture on economic growth was a little like being offered a lesson on seamanship by someone who was on the bridge of a ship that, despite innumerable warnings, was driven at full speed into an iceberg. That was the experience of the British economy over the past few years.
I sat on the Opposition Benches for 12 years, and twice a year the then Chancellor of the Exchequer would come along and tell us that the British economy had achieved the most impressive growth performance since the days of the Hanoverians. One thing that the previous Government could never be criticised for was a lack of reports or plans. Members who were around at the time will remember the documents that we used to get twice a year, telling us how growth had been achieved and how neoclassical endogenous growth theory had been translated into reality. It all came to a shuddering halt, however, because of a combination of massive personal debt, a housing bubble, a structural deficit in the budget and an overweight banking system that collapsed.
If we want judgments on the experience, which we have now inherited and are trying to sort out—[Interruption.] I am not looking for political comment—[Interruption.] I will take interventions later. I do not know how many Opposition Members read the speech that the Governor of the Bank of England made last week. He explained why there is a growth problem in the UK, and I will read out the relevant extracts. He said:
“The economy as a whole must deal with the legacy of extraordinarily high debt levels built up prior to the crisis…The indebtedness of the financial system doubled, from 3½ times GDP in 1998—already high by international standards—to over 7 times GDP in 2008. To appreciate the scale of that increase, even if the financial sector were to cap its debt at today’s level, it would take more than a decade for growth in the economy to return indebtedness relative to GDP to its 1998 ratio.”
That spells out the extremity of the problem that we inherited and the time scale that will be required to restore sustainable growth.
Vince Cable
I will finish this point before I take an intervention.
The Governor of the Bank of England calls in aid the former director-general of the CBI, who has made some strong criticisms. We have, of course, listened to those criticisms and treat them with respect. It is worth going back to what the director-general said. In the opening part of his speech, he described the fundamental problem facing the UK economy, which we are now trying to deal with. It is worth reading that part of his speech at a little length, because it encapsulates what this whole growth debate is about. He said:
“This coalition Government has been single-minded—some might even say ruthless—in its approach to spending cuts. Very unpopular decisions are being driven through on the argument that they are essential to the long-term stability of the economy. That policy is strongly supported by business, on the grounds that sound public finances are an essential foundation for a sound economy.”
[Interruption.] In case this gentleman becomes an icon for the Labour party, let me quote what he said next. He said that there were “two reasons” why the public finances were in a mess:
“One is that the tax and spending policies of the last Government created a substantial structural deficit—a hole in the budget that had to be tackled irrespective of what happened to the economic cycle.
That’s what made substantial spending cuts inevitable, irrespective of who won the last election.”
That is the position we are in.
Chris Leslie (Nottingham East) (Lab/Co-op)
I am grateful to the Secretary of State for giving way, but his professorial picking through of a variety of quotes is quite pitiful. Can he tell us where his growth plan is? Where is it?
Vince Cable
I will describe in detail the various steps being taken to sustain growth. If there were a silver bullet, the right hon. Member for Southampton, Itchen and his hon. Friends would have found it—but they did not.
Mr David Hanson (Delyn) (Lab)
The right hon. Gentleman says that he is concerned about the approach of business to the deficit issue. Does business support the VAT increase, which the right hon. Gentleman himself opposed during the general election?
Vince Cable
Business—the CBI and all other businesses —has made it absolutely clear that it supports the tough action necessary for debt reduction. What Sir Richard Lambert went on to say was:
“Spending cuts do less damage to employment and growth…than do tax increases.”
I think that provides a very convincing answer to the right hon. Gentleman.
Vince Cable
I will proceed.
I referred to the core problem of the Budget. One difficulty we have had in debating this subject with Opposition Members is the state of denial not just about the big problem, but more specifically about the Business, Innovation and Skills budget. Our preoccupation has been to deliver for the coalition our contribution to deficit reduction. That has been our major task over the last year, and we have done that. There was a 25% cut over the spending period in the BIS spend. What makes engagement in debate with Opposition Members difficult is the fact that we know—because of the ring-fencing decisions made by the last Government and because of the Institute for Fiscal Studies analysis—that they also planned to cut the BIS budget by 25%. Whenever we hear these appeals to have more money for industrial support, more money for the regions, more money for universities and science and more money for further education, we ask this simple question: where would the money have come from in the midst of those 25% cuts? Opposition Members have a basic problem, although I am not quite sure what it is. It is either an acute problem of amnesia or one of fundamental economic illiteracy.
Nadhim Zahawi (Stratford-on-Avon) (Con)
Does my right hon. Friend agree that this goes beyond mere deficit denial, as it is political opportunism of the worst kind? It is also irresponsible, because talking down our manufacturing base and all the hard-working businessmen and women in our country does no good in helping us get out of the mess that Labour left behind.
Vince Cable
I will come on to manufacturing in a moment. We are trying to recover from a position in which there was active de-industrialisation for the best part of a decade—[Interruption.] I shall come to the figures shortly.
Vince Cable
I will take more interventions later.
Let me deal with the issue of growth. The right hon. Member for Southampton, Itchen has commented, quite reasonably, that the last quarter’s figures and the flash estimates of gross domestic product growth were negative. Those were not good figures, of course, but let us try to put them in the context of what those data tell us, and what the survey data tell us, about the UK economy. Private sector business investment, which is at the core of the recovery, is 3.73% up on last year’s performance. The OECD, the International Monetary Fund and the European Union all agree that for the first time in many years, trade—exports minus imports—is driving growth after a long period in which we had large importation to feed a consumer boom fed by debt. Crucially, on manufacturing, to deal with the point raised by my hon. Friend the Member for Stratford-on-Avon (Nadhim Zahawi), the Institute for Supply Management manufacturing survey published yesterday corroborated what the Chartered Institute of Purchasing and Supply and others have confirmed: that manufacturing is growing at the fastest pace—more than 5% a year—since records began 20 years ago.
Vince Cable
Let me finish my point about manufacturing and then I will take another intervention. I shall pursue the point I was making in response to my hon. Friend the Member for Stratford-on-Avon about what we have inherited from the previous Government—a decade of remarkable de-industrialisation. Let us go back over the numbers. In 1997 the share of manufacturing in the British economy was about 20%—just a little less than in Germany, Japan and Italy. A decade later it had fallen to 11%, and far more rapidly than in any other industrial country. Manufacturing employment in that period fell from 4.3 million to 2.5 million, so we lost almost 2 million people in the manufacturing sector. The manufacturing trade deficit over that period rose from £7 billion to £53 billion.
Mr Marcus Jones
My right hon. Friend’s argument is compelling. Does he agree that the Labour Government’s record on manufacturing was absolutely despicable, because we lost those 1.8 million manufacturing jobs on their watch? Labour Members seem to forget that.
Vince Cable
The hon. Gentleman is absolutely right: that is the core point. It is a strange irony, because many Labour Members came from industrial Britain and had built their movement on it. In that decade, however, manufacturing industry was substantially devastated, and we are living with the legacy of it now. What we must emphasise—this is the core of our growth strategy, which the hon. Member for Nottingham East (Chris Leslie) asked about—is that manufacturing matters, and we will do everything we can to support it.
Paul Farrelly
The right hon. Gentleman is a respected economist and will know full well that an expansion of exports is to be expected following the decline of sterling. That is not a growth strategy; it is a consequence of the previous economic policy that he used to agree with. Before he gets too carried away in making accusations about amnesia, may I ask him whether he recognises these words, written in 2009 and reprinted this year:
“I have taken the view that in the current circumstances it is on balance right to attempt a fiscal stimulus, recognizing, however, the risks. The alternative—prolonged and deepening slump—would be worse”?
Vince Cable
There are indeed many wise words in that book, which is why it has been reprinted several times—it retains its relevance.
Let me move on from the general picture of de-industrialisation to the specifics. Let me also deal specifically with the Pfizer closure, which is a serious matter and an extremely disappointing development. The implication in the remarks of the right hon. Member for Southampton, Itchen was that the Government had somehow or other failed to head off a closure, which could have been avoided. Let me therefore talk him through the sequence of events, which is also important to many colleagues behind me, and explain what we are doing about the problem.
We were first notified about this at the beginning of last week—on 28 January. The chief executive came to London and briefed the Minister for Universities and Science, who rightly immediately asked what the British Government should do to avert the closure. The answer was that this was not a matter for British Government policy, and that the choice was not made on the basis of whether Britain was an attractive place to do business. Rather, the company was making global closures, including large closures in Dusseldorf in Germany and Massachusetts in the United States. The cycle of the company’s patents was relevant, and it was a purely commercial decision. What happened with Pfizer is offset by what is happening elsewhere in the pharmaceutical industry. Only a few weeks ago GlaxoSmithKline announced a £500 million investment, creating 1,000 new jobs directly—and much else happening in the industry is positive.
The right hon. Member for Southampton, Itchen asked me what we were doing about the situation. First, I have established a taskforce comprising Kent county council, local interests and the Department for Work and Pensions working together to look at the local labour market and what we can do to help. My ministerial colleagues are involved in the process. The Minister for Universities and Science is working with the Secretary of State for Health to see how we can relocate scientists from those research facilities into the rest of the pharmaceutical industries. We may well establish a model based on the relative success so far of Allan Cook’s efforts in the defence industry to see how best to pursue the relocation policy. However, the decision was not based on the investment climate in the United Kingdom. It was a commercial decision, and we are acting promptly in doing whatever we can to help the people who are caught up in that difficulty.
Simon Hughes (Bermondsey and Old Southwark) (LD)
Many of us who have been in the House for a while know that this country often suffers as a result of decisions involving local businesses which are made elsewhere in Europe—or, as was the case when the Peek Frean factory in my constituency was closed, in Idaho. However, all my experience since May, both in my constituency and around the country, suggests that people are desperate to see manufacturing back on its feet, and desperate for the skills and apprenticeships that will allow it to perform. That is the great demand out there in relation to Government economic policy, and my right hon. Friend is going in absolutely the right direction by making it a priority.
Vince Cable
My right hon. Friend is right. It was suggested a few moments ago that the process of manufacturing recovery that we are beginning to see was driven entirely by exchange rates. That is, of course, a major factor, and it is something for which neither the last Government nor this one claim credit.
Vince Cable
I will take interventions later.
What I think we can claim credit for is establishing a climate of confidence in which businesses can invest, and taking concrete action in specific areas—
Vince Cable
I will take interventions in a few moments.
I think that we can claim credit for specific actions that have made a real difference in terms of manufacturing skills.
I believe that the right hon. Member for Southampton, Itchen said that apprenticeships were in decline. It is worth reading out the latest quarterly figures, because they are directly relevant to the intervention of my right hon. Friend the Member for Bermondsey and Old Southwark (Simon Hughes) and those of Labour Members.
A year ago there were 63,400 level 2 apprenticeships; now there are 76,300. A year ago there were 35,200 advanced apprenticeships at level 3; now there are 42,300. The number of higher-level apprenticeships has risen from 700 to 1,200. That is a direct consequence of our intervention during the spending review, when we had to make tough choices. We chose to concentrate on supporting the apprenticeships that are the backbone of British industry.
James Morris (Halesowen and Rowley Regis) (Con)
The Secretary of State is making a very good point. It is particularly applicable to the economy of the west midlands and the black country, where manufacturing still plays a very important role. The creation of a local enterprise partnership to focus specifically on manufacturing skills will directly benefit the local economy. It would be madness to pursue the policies of the previous Government, which failed to create the private sector jobs that we need in the west midlands.
Vince Cable
I thank the hon. Gentleman for his support. He makes the point extremely well. Local enterprise partnerships will achieve a great deal, at a far lower cost than the Labour party’s £21 billion investment in regional development agencies. They are already beginning to make their mark.
Angela Smith (Penistone and Stocksbridge) (Lab)
Steel manufacturers’ confidence would increase if the Secretary of State could demonstrate that he was prepared to invest in steel, which he failed to do in the case of Sheffield Forgemasters, and if he came clean on whether his party supports the new generation of nuclear power stations that would create so much work for those manufacturers.
Vince Cable
As it happens, 10 days ago I talked to representatives of British Steel’s successor, Tata Steel in India, about its plans for investment in the United Kingdom. I made it absolutely clear that we stood behind it, and would do all we could to support it. My colleague at the Department of Energy and Climate Change has already made it clear that we support investment in nuclear power, provided that it is not accompanied by a state subsidy. I also met the largest investor in that industry in order to support his activities.
Vince Cable
I will move on now, and take interventions later.
Let me deal with the general complaint that the Department has made wrong choices by considering some of the decisions that we have had to make since coming to office. I will start with the universities. The Minister for Universities and Science will say a little more about fees policy later. It is an issue that we have debated several times.
I vividly recall, within days of beginning my job, having to sign off several key appointments to the Student Loans Company, and then having to make a very quick trip to Glasgow to visit an organisation which had been in a state of collapse and which we had inherited. I remind the right hon. Member for Southampton, Itchen—who, I believe, played a part in establishing that organisation; the Public Accounts Committee is currently reviewing the episode—that during a period at the beginning of the last academic year for which the last Government were responsible, when students were desperately telephoning the company about their finances, 87% of calls were unanswered. Moreover, only 46% of claims were processed. As a result of the decision to firm up the organisation, the percentage rose to 69% in the current academic year. That is still too low, but an organisation that was wholly dysfunctional under the last Government is beginning to be turned round.
Mr David Lammy (Tottenham) (Lab)
The Secretary of State prays in aid the example of the Student Loans Company. He will be aware that an independent review by Sir Deian Hopkin found the board and the chair culpable, which is why they are no longer in the organisation.
Vince Cable
I seem to remember that an independent report established very firmly that responsibility lay with Ministers.
Mr Denham
I am grateful to the Secretary of State for giving way, because he referred to me personally in this connection. I think that he is missing the point. Part of the business of being a Minister, or a Secretary of State, is sorting out problems that arise—[Interruption.] Let me tell Members that things will go wrong for this Government, as they occasionally went wrong for our Government. It is part of a Secretary of State’s job to sort those things out, but this Secretary of State is using that as an excuse for having done nothing about the really big challenges involved in promoting growth. It is no good his telling the House, “We couldn’t do anything about growth because I was sorting out the Student Loans Company.” That is a ridiculous argument.
Vince Cable
I am glad to hear it acknowledged that we began by having to sort out a mess. That is a good starting point for discussion.
Let me now deal with the further education sector, in which I became engaged, with the Minister for Further Education, Skills and Lifelong Learning. We began visiting further education colleges, many of which were utterly demoralised and unable to fulfil their function because their capital work had been stopped as a result of a process of utter incompetence. They had been authorised to spend nine times the amount that was actually available.
Let us examine the underlying trends, to which the motion refers. In the last five years of the Labour Government, adult learning—involving people over 19—fell by 1.1 million to 3.5 million. At a time when Government money was being thrown at problems, the Government’s priorities were such that a key area was neglected and declined. We have sought to refocus that energy on apprenticeships, with the consequences that I have already described.
Mark Tami (Alyn and Deeside) (Lab)
May I return the Secretary of State to the subject of manufacturing? My right hon. Friend the Member for Southampton, Itchen (Mr Denham) raised the issue of Airbus at the Business, Innovation and Skills Committee. There is great concern about the fact that key workers who are vital to the future of the business will be prevented from entering the United Kingdom under tier 2 of the points-based system. I know that the Secretary of State is concerned about that as well, but what is he going to do about it?
Vince Cable
The right hon. Member for Southampton, Itchen made a wholly wrong assertion. The system of immigration for skilled workers was substantially modified to remove intra-company transfers from immigration control. If there are particular cases involving particular companies, I shall be happy to pursue them. As it happens, I met Mr Gallois yesterday and the issue was not raised, but I will happily pursue any specific cases.
Let me now deal with another issue. A few moments ago, I received a challenge. Why, I was asked, did we not move away from some of the messes that we had inherited, and concentrate on the issues relevant to business growth? Let me start with an issue that is absolutely critical but does not merit even a word in the motion—regulation.
We inherited a system in which five new regulations were introduced every day, at a cost to the business sector that was independently assessed at £80 billion— about 5% of GDP. A few days ago the Minister of State, Cabinet Office discovered a book, only one copy of which is in circulation, of all the regulations that had been accumulated. Some 22,800 were bearing on businesses and adding enormously to their costs—
Vince Cable
I shall finish this point and then give way. What we have done is, first, establish a process to stop the accumulation of regulation. Last week, with the support of the Under-Secretary of State for Business, Innovation and Skills, my hon. Friend the Member for Kingston and Surbiton (Mr Davey), I started attacking an issue that is a particular concern to small business: the problem of tribunals. I believe that there are almost 250,000 such cases a year, many of which are frivolous. They are being brought by people who are not required to pay any fee in order to be heard before the tribunal. We are trying to establish, following a consultation, a level playing field to help small business deal with the problems established by the tribunal system. In future all cases will go through a mediation process before they get into the costly and disruptive process of a tribunal. It is worth remembering that the previous Government tried twice to reform this process, but backed off on both occasions, under pressure from the people who pay their bills.
Alison McGovern (Wirral South) (Lab)
The Secretary of State is talking about regulation, but he began his speech by giving us a history lesson on the financial services sector crash. So will he take this opportunity to explain what he would have done to regulate that sector further and prevent the global financial crash?
Vince Cable
It is a pity that the hon. Lady was not here to hear my speeches on this subject for the five years running up to the crisis, but I shall make two simple points now. The first is that when the financial crisis occurred, I thought and said openly, as I shall repeat now, that the interventions made at that time by the then Chancellor were exactly right and deserved support. What the then Government did not do—this is what we are doing through the Banking Commission—is look at the fundamental issues of overly large banks, concentrations of retail and investment banking, and how to deal with the very complex problems of those two things being locked in the same institution. We are dealing with the fundamental issues behind the banking crash, rather than the superficial aspects of it.
Mr Watts
I am grateful to the Secretary of State for finally giving way. He seems keen on encouraging manufacturing investment, so may I suggest that he restore the grants for business, which actually brought in £3.9 billion of investment and created 70,000 jobs, before he scrapped them?
Vince Cable
No doubt the hon. Gentleman will tell us where that fits on the shopping list. On industrial support, I shall simply say that where the previous Government promoted good schemes, such as the manufacturing advisory service, we are building on them, because we are looking at them on their merits, not doctrinally. However, where schemes were failing and were not cost-efficient, we have reduced them and scrapped them.
Julian Smith
Small businesses across Britain were delighted to hear last week’s announcement by the Government on tribunals. May I encourage the Secretary of State and his excellent employment Minister, the Under-Secretary of State for Business, Innovation and Skills, my hon. Friend the Member for Kingston and Surbiton (Mr Davey), to go further and faster on freeing things up, and freeing small business from Labour’s legacy of red tape?
Vince Cable
I am grateful for my hon. Friend’s encouragement, and the Government intend to do exactly what he suggests. Shortly, we will take a forward look at the pipeline of regulation, and how we plan to reduce regulation and make it proportionate.
Richard Burden
A little earlier, the Secretary of State answered a question about the west midlands, so may I tell him what is worrying people and businesses there? On 28 October he made a statement on local growth, and his answer to everything in terms of industrial and other assistance was, “There will be a regional growth fund.” That fund is oversubscribed and the rules have been changed at the last minute—although the Government have denied that they have done that. In Birmingham and the west midlands, the vital infrastructure projects for Birmingham airport and the regeneration of Longbridge look like being left high and dry. In practical terms, what confidence can he give to people in the west midlands that he will stand by them on such things?
Vince Cable
Rather than prejudge what the first tranche of the regional growth fund will be, let us just wait for the outcome and decide which projects will proceed on the basis of the independent evaluation that they have had.
Vince Cable
I have taken a large number of interventions. I will take one more, from the Chair of the Select Committee, and then move on.
Mr Bailey
The Secretary of State mentioned the manufacturing advisory service, and I welcome his comment that he is going to build on it. However, I had a meeting with a representative of that service who seemed very unsure what its future would be in the context of the new Government policy. Will he take the opportunity to give reassurance to members of that service?
Vince Cable
I can certainly reassure the hon. Gentleman that that organisation has a good record and a good future. If he wants to talk through the details, I am sure that the Minister of State, Department for Business, Innovation and Skills, my hon. Friend the Member for Hertford and Stortford (Mr Prisk) will engage with him on that subject.
I was reviewing some of the areas where the Government inherited major problems and are now trying to deal with them—university administration, further education colleges, apprenticeships and regulations—but let me mention another, which does not even figure in the motion: the appalling history of Royal Mail and the Post Office. One of the things that we have done, which the previous Government were not able to do, is pass through the first stage of parliamentary scrutiny of a process that will eventually get those organisations on a sound footing.
Let us remind Labour Members what we inherited: a collapsing post office network, which had declined from 19,400 post offices to 12,000, mostly as a result of a forced planned closure programme; and a Royal Mail that had a negative cash flow in the last financial year of £520 million, an operating loss of £320 million and a pension deficit of almost £10 billion. We are taking the necessary action to solve those problems, whereas the previous Government had an opportunity to do so but walked away from them.
Vince Cable
I am not taking any more interventions, because I have been very generous.
I wish to conclude by discussing some of the other issues that the Government now have to deal with. These are major issues that we have inherited and where major policy is required in order to strengthen growth. The first issue is trade. That is fundamental to recovery, yet does not even merit a word in the Opposition’s long motion. Do they not understand its importance? In the next few days a trade White Paper will: set out a new approach to the Export Credits Guarantee Department, a largely moribund organisation to which we are giving a new suite of products; refocus the activities of UK Trade & Investment; and stress the importance that we attach—I am personally involved in this—to trade liberalisation within the single market, in bilateral agreements with India, Brazil and the European Union, and through multilateral trade.
One of the things that we do, and I do—the Prime Minister has given his personal leadership on this—is ensure that Ministers spend a lot of their time attracting inward investment and opening up the big emerging markets that will be crucial to our growth. The right hon. Member for Southampton, Itchen asked what I had been doing in the past few weeks and months. Most recently I have been to India twice; I have also visited China, Brazil and Russia trying to open up markets and attract inward investment that will provide the growth and the jobs of the future, many of which are now materialising.
The second issue covers finance and the banks, which have been referred to on several occasions. The only reference to it in the motion is a factually incorrect one to tax revenue.
Vince Cable
I shall give way in a moment. The factually incorrect reference is to tax revenue, because in fact the banking levy will result in the Government raising three to four times as much tax revenue from the banks as was going to be raised by the one-off profits levy last year, and that is excluding the effects of getting the major banks to comply with anti-avoidance procedures; the previous Government completely ignored that. There is an issue to address—I am sure that my hon. Friend the Member for Witham (Priti Patel) is intervening to tell me about it—concerning medium-sized and small companies that cannot attract bank lending. That serious problem is continuing because of the massive deleveraging taking place in the banking system. We have extended the system of bank guarantees. We now have a fund of £2 billion, and that process will continue. The Chancellor and I are personally negotiating with the banks to ensure that we deliver a substantially improved flow of funding to viable British companies.
Priti Patel
I have previously raised with the Secretary of State the horrendous time that my constituent, the chocolate maker Amelia Rope, has had in getting finance for her business so that she can make even more of her outstanding chocolate bars. Will the Secretary of State comment further on what he is doing to get more finance to businesses such as hers so that they can thrive and prosper and start doing more trade internationally?
Vince Cable
I know of my hon. Friend’s frustration regarding this particular company and the banks, and I, or the relevant Minister of State, will be happy to meet her and the banks if that will help to get a proper evaluation of what is happening there. One development in that area is that a bank task force has been established, which will have a proper system of investigating complaints when banks behave unreasonably. I am very happy to take her through that, to meet her and to try to expedite that particular business transaction.
Geoffrey Clifton-Brown (The Cotswolds) (Con)
I congratulate my right hon. Friend on what he is doing to increase trade in this country, because the one way that we can help small businesses to grow is through trade. Will he commit to providing more help for small and medium-sized businesses to trade not only with north America and Europe but in the more difficult markets of Asia?
Vince Cable
The hon. Gentleman is exactly right that that is what we are doing, and that is what the trade White Paper will emphasise when we talk about the future tasking of UKTI.
Vince Cable
I have taken a lot of interventions, and I propose to conclude now.
There are many areas in which we have improved, and are improving, policy, but our overriding concern, over which the right hon. Member for Southampton, Itchen and his colleagues seem to have a serious amnesia problem, is sorting out the underlying problem of the public finances. That process will continue for several years. It is worth quoting from an OECD peer group of government that has been looking at our progress. Last week the OECD’s secretary-general said:
“dealing with the deficit is the best way to prepare the ground for growth in the future. In fact, if you don’t deal with the deficit you can be assured that there will not be growth because confidence will not recover.”
That has been the central preoccupation of Government policy. It is painful and difficult but we are going to persist with it, and for that reason we will succeed in restoring stable and balanced growth to the British economy.