Living Standards

Priti Patel Excerpts

Monday 5th March 2012 Commons Chamber

[Mr Gauke]

I will happily re-fight the 2010 general election with the hon. Gentleman any time. He will remember how well his party did on that occasion. The fact is that the UK had the worst deficit of any major economy.

[Priti Patel (Witham) (Con)]

This debate is about living standards, and central to good living standards in our country are job creation and economic growth. Does my hon. Friend agree that the role of the private sector is central to creating jobs, to make up for Labour’s failure to rebalance the economy and provide job creation?

[Mr Gauke]

My hon. Friend is absolutely right. The recovery that this country requires will be driven by the private sector. It cannot be driven by more borrowing and more debt, which is the policy of the Opposition.

--- Later in debate ---

[Priti Patel (Witham) (Con)]

I welcome the opportunity to speak in this debate, because from what I have heard thus far it seems to be a chance to draw a contrast between the policies that this Government are pursuing to support jobs, growth and living standards and the record of economic failure that hangs like a millstone around the necks of Labour Members. Few things would be more damaging to the living standards of all our constituents than the introduction of the Labour party’s discredited policies.

I should like to focus on three areas in which the Government are making a real, positive difference to living standards despite the challenging economic circumstances and the appalling state of the public finances inherited from the previous Government. The first is business and growth.

Supporting jobs and growth is essential to maintaining good living standards, and the Government are putting Britain on the right track. The commitment to a lower main rate of corporation tax of 23% will boost Britain’s competitiveness, and I emphasise that that will mean more jobs being created and better living standards for all our constituents. Importantly, that pledge rules out a financial transaction tax and gives great stability to the City of London and the financial markets, which are key to the triple A rating that provides the financial stability underpinning our economy.

The Government have also cut the small profits rate to 20%, which is a welcome step forward to support growth. That, of course, helps to stimulate economic activity, particularly among small businesses. In my constituency, 83% of jobs depend on small businesses, compared with the national average of 68%. Few things would have been more damaging to business men, entrepreneurs and wealth creators looking to invest more and create jobs than the previous Government’s plan to increase the small profits rate to 22%. Jobs and growth are fundamental to our living standards, and it is a shame that the previous Prime Minister, who did so much to damage our economy and undermine our triple A credit rating, is not in the Chamber today to listen to the debate and account for the previous Government’s failures.

I should also like to touch on support for pensioners, which is central to living standards. The Government deserve great praise for the action that is being taken to support our pensioners. Council tax freezes in particular are a welcome way to keep more money in the pockets of all our constituents, including pensioners, whereas the Labour party doubled council tax when it was in government. That hit pensioners the hardest. We have also protected the winter fuel allowance and made cold weather payments permanent. The triple lock on pensions, which has been mentioned, has led to a record increase of £5.30 in the state pension, which will benefit about 13 million people and of course have an impact on living standards.

In the time that I have left I wish to refer to the reform of public services. Only last week, we learned that 17 million adults—about half the working-age population—have the numeracy skills of primary school pupils. Having a work force unable to do the basics in maths and arithmetic is naturally detrimental to our living standards. The Labour Government have much to account for on that front, as well.

The Government are investing a great deal in education and reforming public services. Frankly, after the previous Government left the country with an unprecedented scale of economic and social problems—

[Madam Deputy Speaker (Dawn Primarolo)]

Order.