I was interested to note the recent remarks of the Crawley Labour Group’s leader who claimed that we are “not even close” to returning to the 1.4 percent growth seen since before the previous Government brought the country to the brink of bankruptcy.
I hope, therefore, he will join me in welcoming last week’s ICAEW monitor of business confidence report which estimates an economic growth rate of 1.3 percent in the fourth quarter of this year. In addition, the survey reports that: the UK service sector is growing at its fastest rate since 1997; employers are also hiring people at the fastest rate in 16 years; and a recent economic report by Duport for Crawley highlights a record number of new start-up businesses.
The Labour logic that our nation’s economic prosperity is somehow disconnected from the cost of living is flawed – as the economy picks up so will wages; just as in Crawley: new businesses are starting up or relocating to the town; unemployment continues to fall to 2.7 percent; and through an increase in local apprenticeships by 89 percent more and more young people are securing the skills and experience to get on in life.
Let us not forget that under Labour: the incomes of the poorest fell by nearly 20 per cent; tax doubled for the lowest paid with the scrapping the 10p tax rate; council tax doubled; and fuel duty increased 12 times. During their time in office, unemployment increased by almost half a million and half of newly created jobs went to foreign nationals.
This Government is striving to secure a sustainable, long-term economic recovery for hardworking people. That means sticking to the economic plan - growing the economy, creating jobs and cutting the deficit. By controlling spending to cut the deficit, we can keep mortgage rates low and cut taxes; in contrast Labour’s old short-termist policy of more spending, more borrowing and more debt would mean higher taxes and higher mortgage rates.
The difficult decisions that have been taken to cut spending have meant: the personal income tax allowance can be increased to £10,000, resulting in about 4,300 Crawley residents having been taken out of paying income tax altogether and a further estimated 43,000 local households receiving reduced income tax bills; £3 million in ‘pupil premium’ funding is available to support around 3,000 local disadvantaged children; beer duty has been cut; council tax has been frozen for three years; petrol and diesel prices remain 13 pence per litre (about 60 pence a gallon) cheaper than under the previous Government’s fuel escalator, now scrapped; a triple lock pledge and largest ever cash rise ensuring that the average pensioner is £12,000 better off; and a tax-free childcare scheme helps support families’ cover 20 percent of childcare costs.
Henry Smith MP