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Industry and the Environment

It is a delight to be opening the debate on the Gracious Speech this morning, and to be debating industry and the environment together. Those agendas have sometimes been seen as conflicting, but it has become increasingly clear that they must advance together. Business needs to be greener, and greens need to be more business-oriented, because only through innovation and sustainable development can we ensure that society meets the major challenge of our times—tackling climate change. The prerequisite for industrial success is the strong and stable economy that our country currently enjoys. Our long-term interest rates are around their lowest levels since the 1960s and we are enjoying the longest sustained growth in gross domestic product on record, the longest period of sustained low inflation for 40 years and the highest employment levels in our history. We have narrowed the productivity gap with other leading economies in sectors such as computer, legal, technical and advertising services and we are now, for the first time in generations, as productive as Germany and have overtaken France to become the fourth largest economy in the world. With 2.2 million more people in work since 1987, our employment rate is higher than that of any other G7 country. We have 300,000 more businesses than in 1997, with new companies starting at the rate of more than a thousand every day. Our science base is strong, because we have reversed decades of under-investment. In short, Britain has never worked so productively, created so much wealth and generated so many jobs as in today’s enterprising and innovative economy. All that has not happened through serendipity. It has happened because our workers and businesses have excelled within a supportive economic framework set by this Government, including an independent Bank of England, tough fiscal rules and help for those outside the labour market through the new deal. As a result, Britain has become one of the most favourable environments for starting and growing a business.