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Economic Recovery

The hon. Gentleman makes the point that I am coming to in a moment. We will be living beyond our means, and cuts in public expenditure are inevitable. We need a grown-up debate to decide where they should fall. Increases in taxation will almost certainly also be necessary. The really important thing is to get the recovery going to improve the employment situation. We need employment that comes from sustainable jobs, and such jobs will be grown by business, not created by the Government. The Government’s job is to create the conditions under which business can flourish, but it will be business that actually creates the jobs. As we move to recovery, we need to put in place the mechanisms to assist businesses to grow, and I outlined some of those in the debate on Monday. The creation of mechanisms by which small businesses in particular can obtain access to affordable finance and capital rank at the very top of what is required. The Government have a track record of ineffective schemes for business. Businesses, especially SMEs, want a properly functioning, fair and well-regulated banking system. We would create the fertile conditions that would enable British business to lead us into a secure recovery.