Budget debate (day two) and motion for Amendment of the Law. Debate adjourned, to be resumed tomorrow.

Budget debate (day two) and motion for Amendment of the Law. Debate adjourned, to be resumed tomorrow.

Budget debate (second day)

Budget debate (second day)

The low value of the pound has certainly been very helpful, and that is supported by low interest rates. That is indeed a supporting factor for exports. It is not just a question of exchange rates. That is why I introduced the trade White Paper a few weeks ago. We...

The low value of the pound has certainly been very helpful, and that is supported by low interest rates. That is indeed a supporting factor for exports. It is not just a question of exchange rates. That is why I introduced the trade White Paper a few weeks ago. We...

I cannot see how it can be ideological to have a public sector that, by the end of this Parliament, will have a share of GDP comparable to what it was when the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown) became Prime Minister. Whatever criticisms the Opposition might...

I cannot see how it can be ideological to have a public sector that, by the end of this Parliament, will have a share of GDP comparable to what it was when the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown) became Prime Minister. Whatever criticisms the Opposition might...

The claim to be the greenest Government ever has been vindicated in significant part by some of the key announcements in the Budget—of, for instance, the establishment of the carbon floor price, which is the first effective carbon tax system in the world, and the green investment bank, to which...

The claim to be the greenest Government ever has been vindicated in significant part by some of the key announcements in the Budget—of, for instance, the establishment of the carbon floor price, which is the first effective carbon tax system in the world, and the green investment bank, to which...

I have been dealing with a great many interventions from members of the hon. Gentleman's party. I am always happy to do that. I must begin by acknowledging that the task is a massive one, although there are some encouraging signs. Manufacturing is growing at its fastest pace for 16...

I have been dealing with a great many interventions from members of the hon. Gentleman's party. I am always happy to do that. I must begin by acknowledging that the task is a massive one, although there are some encouraging signs. Manufacturing is growing at its fastest pace for 16...

The hon. Lady makes a valid point. I have already spoken to representatives of the steel industry about precisely that issue. The Budget referred to the climate change agreements and to more extensive relief. Energy-intensive industries are an issue, but any Government who are serious about carbon reduction will have...

The hon. Lady makes a valid point. I have already spoken to representatives of the steel industry about precisely that issue. The Budget referred to the climate change agreements and to more extensive relief. Energy-intensive industries are an issue, but any Government who are serious about carbon reduction will have...

Yes, indeed. There is clearly a close link between the level of the budget deficit and interest rates, both long-term interest rates in the markets and short-term interest rates set by the Bank of England. That is why maintaining a monetary policy that is supportive of growth—which is what we...

Yes, indeed. There is clearly a close link between the level of the budget deficit and interest rates, both long-term interest rates in the markets and short-term interest rates set by the Bank of England. That is why maintaining a monetary policy that is supportive of growth—which is what we...

Let me press on a little first, and then I will take an intervention. In future, growth and jobs will come from the private sector, and in particular from small-scale business. Taken in conjunction with the trade White Paper to which I have referred, the Budget's commitment to lower and...

Let me press on a little first, and then I will take an intervention. In future, growth and jobs will come from the private sector, and in particular from small-scale business. Taken in conjunction with the trade White Paper to which I have referred, the Budget's commitment to lower and...

I would have thought that Opposition Members who want the economy to flourish and new jobs in their constituencies would welcome the fact that I and other Ministers spend a lot of our time talking to potential inward investors. That is good not only for them but for the British...

I would have thought that Opposition Members who want the economy to flourish and new jobs in their constituencies would welcome the fact that I and other Ministers spend a lot of our time talking to potential inward investors. That is good not only for them but for the British...

Not at all; we should be proud of lifting regulation from small companies that generate employment, which every Member should be concerned about.

Not at all; we should be proud of lifting regulation from small companies that generate employment, which every Member should be concerned about.

No, I have taken a lot of interventions, and the hon. Gentleman has already made his intervention from a sedentary position. The role of government is not only to get out of the way when they are blocking growth, but to intervene when there is a genuine market failure. Training...

No, I have taken a lot of interventions, and the hon. Gentleman has already made his intervention from a sedentary position. The role of government is not only to get out of the way when they are blocking growth, but to intervene when there is a genuine market failure. Training...

That is right, and I am sure that if we reflected a little we could add further to the list. Let me talk about employment.

That is right, and I am sure that if we reflected a little we could add further to the list. Let me talk about employment.

For six of those 10 years, we were dealing with an artificial boom based on a property bubble, an overweight banking system and, as the shadow Chancellor has acknowledged, gross levels of personal debt. That was why there was rapid growth in the early part of that period. However, if...

For six of those 10 years, we were dealing with an artificial boom based on a property bubble, an overweight banking system and, as the shadow Chancellor has acknowledged, gross levels of personal debt. That was why there was rapid growth in the early part of that period. However, if...

I want to talk about how we progress from the painful but very necessary deficit cuts to achieving growth that is balanced and sustainable. However, I shall start by addressing the shadow Chancellor's attack. His starting point seems to be that the past is another country, and that 2010 was...

I want to talk about how we progress from the painful but very necessary deficit cuts to achieving growth that is balanced and sustainable. However, I shall start by addressing the shadow Chancellor's attack. His starting point seems to be that the past is another country, and that 2010 was...

We are sticking very firmly with plan A, because plan A is right. The hon. Gentleman will know that flexibility is built into economic management, primarily through monetary policy, and that is the mix that we will continue. The shadow Chancellor is right. There is of course concern about a...

We are sticking very firmly with plan A, because plan A is right. The hon. Gentleman will know that flexibility is built into economic management, primarily through monetary policy, and that is the mix that we will continue. The shadow Chancellor is right. There is of course concern about a...

I do not know when the right hon. Gentleman last opened a financial newspaper. If he had done so recently, he would know that all the countries on the periphery of Europe that have been hit by the rising cost of capital are in very acute financial crisis, which we...

I do not know when the right hon. Gentleman last opened a financial newspaper. If he had done so recently, he would know that all the countries on the periphery of Europe that have been hit by the rising cost of capital are in very acute financial crisis, which we...

I really do not know what the right hon. Gentleman is talking about. We started by talking about excessive bonuses in one very large investment bank, and he has now extended that to the whole of the financial services sector. Of course that sector is valuable. Of course the jobs...

I really do not know what the right hon. Gentleman is talking about. We started by talking about excessive bonuses in one very large investment bank, and he has now extended that to the whole of the financial services sector. Of course that sector is valuable. Of course the jobs...

In the earlier part of his comments, the hon. Gentleman was right to acknowledge how important interest rates are. He is also right to say that because of the badly damaged banking system, small companies have an extreme problem with lending. That is why the Chancellor and I have been...

In the earlier part of his comments, the hon. Gentleman was right to acknowledge how important interest rates are. He is also right to say that because of the badly damaged banking system, small companies have an extreme problem with lending. That is why the Chancellor and I have been...

Let me finish this point. One genuine philosophical difference we have with the Opposition is on how best to help those on low and modest pay. The Opposition believe in using targeted means-tested benefits. By contrast, we believe that the best way of doing this is by lifting low earners...

Let me finish this point. One genuine philosophical difference we have with the Opposition is on how best to help those on low and modest pay. The Opposition believe in using targeted means-tested benefits. By contrast, we believe that the best way of doing this is by lifting low earners...