The Government’s approach to raising productivity is to deliver macro-economic stability through a combination of monetary activism and fiscal restraint, while implementing a programme of long-term structural change through the industrial strategy. This is giving firms and individuals the confidence they need to invest.

The Government’s approach to raising productivity is to deliver macro-economic stability through a combination of monetary activism and fiscal restraint, while implementing a programme of long-term structural change through the industrial strategy. This is giving firms and individuals the confidence they need to invest.

In my constituency, we have several modern and forward-thinking firms, such as Renishaw, Delphi and ABB, which are all keen to make sure that they can recruit skilled engineers and a skilled work force—[Interruption.] The Secretary of State has sat down now. Does he agree that the long-term economic plan is pivotal because it deals with the need to make sure there is a pipeline of well educated young people entering the labour market?

In my constituency, we have several modern and forward-thinking firms, such as Renishaw, Delphi and ABB, which are all keen to make sure that they can recruit skilled engineers and a skilled work force—[Interruption.] The Secretary of State has sat down now. Does he agree that the long-term economic plan is pivotal because it deals with the need to make sure there is a pipeline of well educated young people entering the labour market?

I apologise for remaining standing; I was so gripped by the question, I could not tear myself away.

I commend my hon. Friend on establishing what I think he calls the Carmichael commission in his constituency to look at ways to improve growth. He is right that having a pipeline of skilled staff is essential. I am familiar with Renishaw and I shall see the company tomorrow at the MACH exhibition in Birmingham. The crucial requirement is a long-term train of apprenticeship, at graduate and sub-graduate levels.

I apologise for remaining standing; I was so gripped by the question, I could not tear myself away.

I commend my hon. Friend on establishing what I think he calls the Carmichael commission in his constituency to look at ways to improve growth. He is right that having a pipeline of skilled staff is essential. I am familiar with Renishaw and I shall see the company tomorrow at the MACH exhibition in Birmingham. The crucial requirement is a long-term train of apprenticeship, at graduate and sub-graduate levels.

Is the Secretary of State at all worried that the current economic picture is being driven so much by consumer spending, and why does our productivity remain so poor?

Is the Secretary of State at all worried that the current economic picture is being driven so much by consumer spending, and why does our productivity remain so poor?

The Office for Budget Responsibility forecast for 2014 is that business investment will rise by 8%. Given the depth of the crisis to which we have had to respond, this is a slow process, but business investment is now overtaking consumer spending as the driver of the recovery.

The Office for Budget Responsibility forecast for 2014 is that business investment will rise by 8%. Given the depth of the crisis to which we have had to respond, this is a slow process, but business investment is now overtaking consumer spending as the driver of the recovery.

With the excellent news that manufacturing output year-on-year has increased by 3.8%, and with export week in mind, what steps is the Secretary of State taking to improve productivity so that we can further enhance the innovation of cutting-edge products and penetrate new export markets?

With the excellent news that manufacturing output year-on-year has increased by 3.8%, and with export week in mind, what steps is the Secretary of State taking to improve productivity so that we can further enhance the innovation of cutting-edge products and penetrate new export markets?

That is a suitable rejoinder to the hon. Gentleman’s earlier question. The key point he made in his earlier question is that to drive productivity we need an adequate supply of trained people. I would add to that the emphasis we are placing on innovation and the establishment of the Catapult centres across the country. This is a new approach based largely on the German model and it is succeeding admirably.

That is a suitable rejoinder to the hon. Gentleman’s earlier question. The key point he made in his earlier question is that to drive productivity we need an adequate supply of trained people. I would add to that the emphasis we are placing on innovation and the establishment of the Catapult centres across the country. This is a new approach based largely on the German model and it is succeeding admirably.

What steps he is taking to improve productivity.

What steps he is taking to improve productivity.

My hon. Friend is, of course, right. One of the most interesting aspects of recent years is that, notwithstanding assertions—not least by the Labour party—that the flexible labour markets that are so important to our economic prosperity would simply enable employers to lay people off, it is because we have...

My hon. Friend is, of course, right. One of the most interesting aspects of recent years is that, notwithstanding assertions—not least by the Labour party—that the flexible labour markets that are so important to our economic prosperity would simply enable employers to lay people off, it is because we have...

I welcome the Government’s success so far in creating extra private sector jobs which have increased the number of people in employment to 30 million. I also salute the Chancellor’s commitment to full employment. May we have a debate about the need for increased productivity to tackle both our need...

I welcome the Government’s success so far in creating extra private sector jobs which have increased the number of people in employment to 30 million. I also salute the Chancellor’s commitment to full employment. May we have a debate about the need for increased productivity to tackle both our need...

Lords motion to take note of the economy of the United Kingdom in the light of the Budget Statement. Agreed to on question.

Lords motion to take note of the economy of the United Kingdom in the light of the Budget Statement. Agreed to on question.

My Lords, the UK’s economic recovery has finally taken hold. No major advanced economy grew faster in the fourth quarter of 2013 than the UK’s. Employment is at record levels. Some 1.7 million private sector jobs have been created since early 2010 and over the same period more than four...

My Lords, the UK’s economic recovery has finally taken hold. No major advanced economy grew faster in the fourth quarter of 2013 than the UK’s. Employment is at record levels. Some 1.7 million private sector jobs have been created since early 2010 and over the same period more than four...

My Lords, I want to start with Tommy Cooper. When he was asked to explain how he did his sleight of hand magic, he said, “Watch my hands and ignore what I say”. Of course, that was easier said than done, because Cooper’s patter was utterly hilarious and compelling. Our...

My Lords, I want to start with Tommy Cooper. When he was asked to explain how he did his sleight of hand magic, he said, “Watch my hands and ignore what I say”. Of course, that was easier said than done, because Cooper’s patter was utterly hilarious and compelling. Our...

I find myself agreeing with much of what the noble Lord is saying on energy policy, but how does he reconcile what he is saying with the Official Opposition’s policy to introduce price controls on the energy companies?

I find myself agreeing with much of what the noble Lord is saying on energy policy, but how does he reconcile what he is saying with the Official Opposition’s policy to introduce price controls on the energy companies?

As the noble Lord can see, I am speaking from the Back Benches. The wide-ranging competition policy announced today is welcome, but there is a need for a root-and-branch review of our energy policy.

The Chancellor’s measures to boost saving and to stop pensioners being forced to buy annuities from a...

As the noble Lord can see, I am speaking from the Back Benches. The wide-ranging competition policy announced today is welcome, but there is a need for a root-and-branch review of our energy policy.

The Chancellor’s measures to boost saving and to stop pensioners being forced to buy annuities from a...

My Lords, since the days of Asquith your Lordships’ House has been excluded from any direct influence on the Budget process, but the number of noble Lords who have put their names down to speak in this debate demonstrates how much we appreciate the opportunity to comment on the state...

My Lords, since the days of Asquith your Lordships’ House has been excluded from any direct influence on the Budget process, but the number of noble Lords who have put their names down to speak in this debate demonstrates how much we appreciate the opportunity to comment on the state...

My Lords, we spoke briefly before this debate started about the role of the Civil Service. The Minister probably sits in the same office in the Treasury that I once occupied, and I can imagine the process running up to the Treasury. Indeed, the noble Lord might even have had...

My Lords, we spoke briefly before this debate started about the role of the Civil Service. The Minister probably sits in the same office in the Treasury that I once occupied, and I can imagine the process running up to the Treasury. Indeed, the noble Lord might even have had...

My Lords, the reason that the Bishops sit on the government side of the Chamber, I am told, is the recognition that the task of government is so difficult that the Government need all the help available to them. Managing the economy in recent years has been an enormously difficult...

My Lords, the reason that the Bishops sit on the government side of the Chamber, I am told, is the recognition that the task of government is so difficult that the Government need all the help available to them. Managing the economy in recent years has been an enormously difficult...

My Lords, it is always a pleasure to hear the right reverend Prelate making his remarks in the House. Indeed, it is always a pleasure when there is more than one Bishop on the Benches. Of course, the original purpose of the Bishops being in the House of Lords was...

My Lords, it is always a pleasure to hear the right reverend Prelate making his remarks in the House. Indeed, it is always a pleasure when there is more than one Bishop on the Benches. Of course, the original purpose of the Bishops being in the House of Lords was...