Productivity and Economic Growth: East Midlands Debate
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Rupa Huq
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Productivity and Economic Growth: East Midlands
Rupa Huq Excerpts(1 day, 12 hours ago)
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Several hon. Members rose—
Dr Rupa Huq (in the Chair)
Order. Can everyone who wants to speak stand so that we can calculate the time limit? It is going to be three-minutes, I am afraid. I call Ed Argar to set an exemplary example.
Several hon. Members rose—
Dr Rupa Huq (in the Chair)
Order. One of the displays is defunct, so it may be difficult for Members to see when their three minutes have ended. I will signal 30 seconds before their time runs out.
James Wild
We can trade statistics, but the context for that was the 2009 financial crash, which led to a deficit of 12% to 15%. [Interruption.] The Government who came in were the coalition Government, including our Liberal Democrat colleagues, and it was Danny Alexander, Chief Secretary to the Treasury, who drove those savings in spending, particularly in local government but also in other areas. We had to get the books to balance. That was the context that we had to deal with. People can deny the reality, but that was the situation at the time.
The number of people who are unemployed is forecast to hit 2 million by the end of the year. I expect other Members are particularly worried, as I am, about the impact on young people. Youth unemployment has already moved above 16%, which is higher than the EU average. We are now in the bizarre position in which the Government are having to pay companies to take on young people whom the Government’s own policies have priced out of having jobs. As my right hon. Friend the Member for Melton and Syston (Edward Argar) highlighted, SMEs across—[Interruption.]
Dr Rupa Huq (in the Chair)
Order. Let us not have chuntering from a sedentary position.
James Wild
If hon. Members want to intervene, they are welcome to do so. As my right hon. Friend said, small and medium-sized businesses across the east midlands and beyond are having to cope with those costs, making it harder for them to invest and grow. The Government should listen to them.
Fundamentally, the problems that the east midlands and the UK face in relation to growth are around productivity. Investment has been too low. The UK has trailed the G7 average over the last 30 years, not just the last 14 years. Our infrastructure ambitions are often buried under red tape and excessive costs. Colleagues have spoken about energy costs. The hon. Member for Amber Valley (Linsey Farnsworth) spoke about Denby and the ceramics sector, and we hope that a solution is found for that workforce. But by linking us to the EU emissions trading scheme, the Government will be driving up costs for our industry.
The sparks of business dynamism have dimmed. Office for National Statistics data shows that firm entry and exit rates have reduced, particularly compared with the United States. That leads to a less competitive, dynamic and innovative economy. The east midlands has consistently been ranked among the least productive regions in the UK, but that is not inevitable and nor should it be, because if it stays like that, living standards will not increase.