{"id":13490,"date":"2013-05-31T14:50:47","date_gmt":"2013-05-31T14:50:47","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=64093f478ee000446f918b740dc5fb44"},"modified":"2013-05-30T18:30:00","modified_gmt":"2013-05-30T18:30:00","slug":"speech-chief-secretary-to-the-treasurys-speech-to-the-greater-manchester-chamber-of-commerce","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=13490","title":{"rendered":"Speech: Chief Secretary to the Treasury&#8217;s speech to the Greater Manchester Chamber of Commerce"},"content":{"rendered":"<div class=\"govspeak\">\n<p>It is my aim to build a stronger economy in a fairer society, where everyone can get on in life.<\/p>\n<p>That\u2019s what I came into politics to achieve.<\/p>\n<p>It\u2019s the idea I took into the coalition negotiations; and it\u2019s the idea which \u2013 as a coalition government \u2013 we are working hard to deliver.<\/p>\n<p>Today \u2013 three years to the month since the coalition was formed, [almost] three years to the day since I was appointed Chief Secretary \u2013 is a good chance to reflect on the progress we\u2019ve made, and to look at what more we have to do to achieve those objectives over the next two years.<\/p>\n<p>As one of the architects of the coalition, let me reassure you that this government is totally focussed on fixing the economy, and will remain so every day until the election in 2015.<\/p>\n<p>Whatever you read, there is absolutely no prospect of the coalition breaking up early, or losing that focus.<\/p>\n<p>Back in 2010, when we first came to office, we didn\u2019t just face an unprecedented and unsustainable deficit in the government\u2019s finances.<\/p>\n<p>We faced a highly unbalanced economy, skewed by years of political obsession with the City of London.<\/p>\n<p>We faced a deficit in competitiveness, from too much time regulating and constraining business, and not enough time enabling the private sector and promoting British exports \u2013 especially in new markets. <\/p>\n<p>And of course, we faced an uncertain political outlook, especially in the Eurozone.<\/p>\n<p>We had to act swiftly to put in place a balanced and rational response:<\/p>\n<ul>\n<li>\n<p>A response that was unflinching \u2013 but not unthinking \u2013 on the nation\u2019s finances, taking tough action on the deficit and so helping keep interest rates low.<\/p>\n<\/li>\n<li>\n<p>A response that reformed planning, regulation, infrastructure and taxation to make all parts of Britain more competitive.<\/p>\n<\/li>\n<li>\n<p>And a response that enabled an active monetary policy to support the economy.<\/p>\n<\/li>\n<\/ul>\n<p>We\u2019ve made good progress. <\/p>\n<p>We\u2019ve seen the deficit reduced by a third.<\/p>\n<p>We\u2019ve seen an increase of over 1 million jobs \u2013 and counting \u2013 in the private sector. <\/p>\n<p>Interest rates are at near-record lows.<\/p>\n<p>And more recently there are some signs of momentum starting to return to our economy:<\/p>\n<p>The UK economy grew by 0.3% in the first quarter of this year, more than was forecast by the OBR at budget.<\/p>\n<p>Last year we became a net exporter of cars for the first time since 1975.<\/p>\n<p>And British exports of goods to emerging economies have increased since the coalition came to power.<\/p>\n<p>Despite this, some say that now is the time to change course; that we should even borrow more; that there is somehow an easy or quick fix to the deep problems we have to resolve.<\/p>\n<p>But the truth is that we are on a long road, and we are making progress.<\/p>\n<p>Nothing could be worse for this country right now than starting again from scratch. <\/p>\n<p>We won\u2019t do it. <\/p>\n<p>We will stick to the path we are on. <\/p>\n<p>And we will continue to show flexibility wherever it is needed, and to shift resources wherever we can to support economic growth.<\/p>\n<p>We\u2019ve allowed the automatic stabilisers to operate in full, picking up slack when it is needed.<\/p>\n<p>We\u2019ve shifted revenues from lower value spending to capital investment \u2013 with an extra \u00a3 10bn announced over the last two Autumn Statements, and another \u00a33bn a year from 2015\/16 announced in the recent Budget.<\/p>\n<p>But we know that more must be done, and further savings must be found;and we are taking responsible steps to manage that process.<\/p>\n<p>You may have read that in next month\u2019s spending round we are going to find a further \u00a311.5bn of savings for the year 2015\/16. And these savings will be essential as we continue our steady progress as a country towards living within our means again.<\/p>\n<p>We will deliver these savings entirely from reductions in Whitehall budgets. <\/p>\n<p>Some may complain that this is a lot of money. But put into perspective, in that same year we are forecast to spend \u00a357bn servicing the interest on our debt.<\/p>\n<p>And that \u2013 quite frankly \u2013 is neither desirable nor sustainable.<\/p>\n<p>So these savings are vital for our long term future.<\/p>\n<p>But less money doesn\u2019t have to mean worse services. If we make sure that our money is spent efficiently and fairly, then we can make sure we achieve the best possible value for the public. <\/p>\n<p>When we first came to office \u2013 for example \u2013 we were warned that cuts to police spending would reduce police effectiveness.<\/p>\n<p>Instead, we\u2019ve seen crime drop to its lowest level in 30 years.<\/p>\n<p>We were warned that cuts in the public sector would lead to nearly half a million job losses in the private sector.<\/p>\n<p>Instead, we\u2019ve seen over a million jobs created in the private sector.<\/p>\n<p>And we were told that cuts to HMRC would reduce tax revenues.<\/p>\n<p>When instead, we\u2019ve seen tax revenues rise nearly 5 per cent compared to this time last year.<\/p>\n<p>I know that savings in local government have been tough for many. <\/p>\n<p>But here in Greater Manchester you have shown that by pooling resources across the public sector, joining up delivery through community budgets you can deliver better public services with less money.<\/p>\n<p>Better results for the most troubled families \u2013 who attract the attention of many public sector bodies, without really being helped by any of them.<\/p>\n<p>We will be taking these lessons from Greater Manchester and the other \u2018community budget\u2019 pilot areas and applying them across the whole of the country in the Spending Round.<\/p>\n<p>Becoming a nation that pays its way again is the right place to start, but I know that if we want to achieve sustainable growth then we need to create the conditions in which businesses like yours can thrive.<\/p>\n<p>On tax, on education, on skills, on regulation, on access to finance, on infrastructure and on Europe we need to ignore the siren voices and focus on ensuring a stable, supportive environment for business to grow and create jobs.<\/p>\n<p>It\u2019s no exaggeration to say that we inherited a tax landscape which offered the worst of all worlds \u2013 high, uncompetitive tax rates, which were poorly enforced.<\/p>\n<p>So we\u2019ve worked hard over the last three years to rebalance that tax regime;<\/p>\n<p>To make our tax system an asset for the country and to ensure that it supports \u2013 rather than hinders \u2013 growth and investment.  <\/p>\n<p>The measures we\u2019ve taken during that time \u2013 cutting Corporation Tax, supporting R&amp;D through tax credits, encouraging scientific innovation through the Patent Box, capital allowances to bring forward investment in plant and machinery \u2013 have been specifically designed to ensure that Britain is the best place in the world to invest and grow a business.<\/p>\n<p>I am proud of the action we have taken to cut taxes on working people. <\/p>\n<p>Lifting the tax free income tax allowance to \u00a310,000 next April means 25 million working people will be paying \u00a3700 less income tax a year.<\/p>\n<p>And the \u00a32,000 employer NICs allowance \u2013 which will be open to all businesses and charities from next April \u2013 will mean that every business is able to employ four full-time workers on the National Minimum Wage, without paying any employer NICs.<\/p>\n<p>So we\u2019re working hard to deliver a tax system that will boost employment, and help families and businesses across the country.<\/p>\n<p>But nothing makes people angrier than the fact there are still some businesses that seem to think they should be able to get away without paying their fair share of tax.<\/p>\n<p>That anger is justified.<\/p>\n<p>When everyone else in this country is making a contribution to dealing with the deficit, our message to the small minority of companies that seek to dodge paying their fair share is clear.<\/p>\n<p>Aggressive tax avoidance and evasion are wrong at the best of times, but in times like this they are totally unacceptable.<\/p>\n<p>And the government, on behalf of the British people, will not tolerate it. <\/p>\n<p>Tackling this problem has been a big priority for me since I joined the Treasury. And we have made a lot of progress. <\/p>\n<p>Closing loopholes, clamping down on offshore havens, investing more in HMRC to raise an extra \u00a39bn a year by 2015. <\/p>\n<p>We have put tougher global rules to counter tax avoidance at the top of the agenda for our G8 presidency this year.<\/p>\n<p>But there is much more to do.<\/p>\n<p>For example, we have discovered that some offshore payroll agents have been deliberately not paying the national insurance for staff employed in the UK.<\/p>\n<p>Such behaviour is completely counter to the spirit of the law. <\/p>\n<p>It\u2019s not fair on the Exchequer;<\/p>\n<p>It\u2019s not fair on the taxpayer.<\/p>\n<p>And it\u2019s not fair on you, the vast majority of businesses who play by the rules.<\/p>\n<p>So I can tell you that today we are consulting on the details of how we crack down on these \u2018offshore intermediaries\u2019, who are currently costing the taxpayer up to \u00a3100m a year and rising. <\/p>\n<p>The rule is simple: if you employ people in the UK, you need to pay tax and national insurance in the UK. And we will make sure you do.<\/p>\n<p>A more competitive tax system is helping growth, but we need to invest in our nation\u2019s infrastructure too. <\/p>\n<p>Investment in infrastructure creates jobs in planning and design and construction in the short term.<\/p>\n<p>Good quality roads, railways, broadband and energy networks are absolutely essential for British businesses to compete in a global economy.<\/p>\n<p>If we want a successful economy in the 21st century, then we need an infrastructure fit for the 21st century.<\/p>\n<p>In this Parliament in fact, despite the tough economic times, we are working closely with the private sector, and investing a greater share of our nation\u2019s wealth in infrastructure than over the previous 13 years.<\/p>\n<ul>\n<li>\n<p>We are supporting the largest investment in railways since Victorian times, including improvements in this city.<\/p>\n<\/li>\n<li>\n<p>We are overseeing major upgrades in our vital road networks, with work underway between junctions 25 and 30 on the M62.<\/p>\n<\/li>\n<li>\n<p>We\u2019re rolling out superfast broadband and 4G mobile across the whole country.<\/p>\n<\/li>\n<li>\n<p>We\u2019re putting in place the certainty investors need to support the transformation of our energy infrastructure to a low carbon future, with draft \u2018strike prices\u2019 set out on renewables before the summer recess.<\/p>\n<\/li>\n<li>\n<p>And we\u2019re ensuring better co-ordination through the National Infrastructure Plan, with heads banged together in Whitehall to make things happen via the Cabinet Committee on infrastructure which I Chair.<\/p>\n<\/li>\n<\/ul>\n<p>But we need to do more.<\/p>\n<p>So whereas for most individual Departments our Spending Round next month will only set budgets for the financial year 2015\/16, for key areas of capital expenditure \u2013 like infrastructure \u2013 we intend to make commitments right through to the end of the decade.<\/p>\n<p>We will be taking a zero-based approach throughout \u2013 asking Departments to justify the economic value of every single line of their Capital budgets. <\/p>\n<p>When we took such an approach in 2010, it resulted in the most economically important areas being prioritised.<\/p>\n<p>So investment in transport, for example, was not just protected from cuts \u2013 its budget was actually increased in every year, which has enabled us to commit to crucial projects like High Speed 2.<\/p>\n<p>In fact, I\u2019d like to use this opportunity to thank the Chamber of Commerce for its support on HS2.<\/p>\n<p>We know that this project has caused some political controversy.<\/p>\n<p>But I can reassure you, that delivering HS2 is another of those tough decisions that we will stick to.<\/p>\n<p>It will connect eight of our biggest cities once it opens, re-shaping the UK\u2019s economic geography in the process, and support 100 000 jobs across the nation.<\/p>\n<p>For too long we seemed to only look towards one city for economic growth. <\/p>\n<p>Between 1997 and 2010, the north-south economic gap widened.  <\/p>\n<p>In terms of value added per head, the North West fell from being 11% behind the National Average to 15%, and the North East from 21% to 23%. <\/p>\n<p>This is not to suggest that this trend started in 1997.<\/p>\n<p>Neither is it to suggest that the north \u2013 and in particular this city \u2013 has not excelled in many areas. <\/p>\n<p>Whenever I\u2019ve been here in Greater Manchester, I\u2019ve been struck that this area understands the importance of collaboration and the importance of public private partnerships.<\/p>\n<p>But \u2013 despite the vision and the drive that this city has shown \u2013 more could and should have been done to rebalance the UK economy.<\/p>\n<p>And there is more that this government can and will do. <\/p>\n<p>We\u2019ve established Local Enterprise Partnerships, to bring together business and locally-elected leaders to set a strategy for a local area.<\/p>\n<p>We have set up twenty four Enterprise Zones, areas that will benefit from simplified planning rules, super-fast broadband and tax breaks for businesses.  <\/p>\n<p>Your local Enterprise Zone \u2013 Manchester City Airport Zone \u2013 will bring crucial investment and jobs to the region.<\/p>\n<p>Through the new Regional Growth Fund \u2013 or RGF \u2013 we are supporting other projects and programmes that unlock private sector investment to create economic growth and jobs.<\/p>\n<p>The RGF has so far allocated \u00a32.4 billion to 370 projects and programmes that have pledged to deliver 500,000 jobs and \u00a313 billion of private investment.<\/p>\n<p>It is helping turn the old Manchester Royal Eye Hospital into a site for biomedical businesses.<\/p>\n<p>And today, I\u2019m very pleased to announce that the Fund will provide a \u00a32 million boost for research into the development of Gallium Nitride at NXP in Stockport.<\/p>\n<p>For those of you who don\u2019t know what Gallium Nitride is \u2013 and I must confess to having been in that camp until yesterday \u2013 it is a breakthrough raw material which can replace silicon in electronic devices \u2013 such as car systems, mobile phones and communications infrastructure.<\/p>\n<p>And this Regional Growth Funding will support a private sector investment of over \u00a37.5 million, safeguarding nearly 500 existing jobs, creating 100 new positions in Stockport and firmly establishing the UK \u2013 and this region \u2013 as a global research hub for NXP.<\/p>\n<p>So this money is having a real impact in and around this city.<\/p>\n<p>In the autumn, Lord Heseltine proposed that we go even further to put local enterprise partnerships in charge of more local economic levers.<\/p>\n<p>As such \u2013 alongside the Budget \u2013 we announced that we would be creating a Single Local Growth Fund \u2013 building on the success of the Regional Growth Fund and bringing together areas such as housing, transport and skills. <\/p>\n<p>Every part of the country will benefit from the \u2018growth deals\u2019 that Lord Heseltine\u2019s plan will enable \u2013 but those areas with the best plans will get more.  <\/p>\n<p>Details will be set out in the Spending Round next month, and I know Manchester will fully exploit the possibilities it will offer this area.<\/p>\n<p>A competitive tax system, quality infrastructure, more economic levers in local hands \u2013 all of these will help to deliver the sustainable economic growth our country needs. <\/p>\n<p>But all of this good work will be undermined if we allow those who want to cut Britain off from our major export market to succeed.<\/p>\n<p>I don\u2019t need to tell all of you how important EU membership is for British business.<\/p>\n<p>The EU is the largest single market in the world, with 500 million people and a combined GDP of \u00a311 trillion. <\/p>\n<p>Half of our trade is with Europe. In fact, EU countries trade twice as much with each other than they would without the single market \u2013 activity which is worth \u00a33,300 per British household.<\/p>\n<p>Over 3.5 million British jobs are linked to that trade. <\/p>\n<p>Access to European markets is crucial to foreign investors \u2013 and the UK houses more headquarters of non-EU firms than Germany, France, Switzerland and the Netherlands put together.<\/p>\n<p>The European Union isn\u2019t perfect \u2013 far from it. <\/p>\n<p>It needs reform \u2013 not just for Britain, but for every country in Europe. <\/p>\n<p>We need to complete the single market, open up energy markets, make e-commerce borderless within Europe.<\/p>\n<p>And the irony is, Britain has never been in a better position to lead these changes.<\/p>\n<p>The Eurozone crisis has forced many of the countries who used to be the biggest blocks on economic reform to see its advantages. <\/p>\n<p>So, arguing for Britain to leave the EU at this time is not just irresponsible, but damaging to jobs and Britain too.<\/p>\n<p>We shouldn\u2019t be debating leaving the EU, we should be leading it.<\/p>\n<p>That\u2019s what \u2013 as a coalition government \u2013 we will continue to do.<\/p>\n<p>And it\u2019s a reminder of why our government and our politics needs to continue to be anchored in the centre ground during these difficult economic times. <\/p>\n<p>To take the tough decisions needed to steer this country out of the economic crisis, not to allow us to be pulled to either extreme.<\/p>\n<p>The country is emerging from tough economic times.<\/p>\n<p>The road to recovery is long, and at times will be difficult.<\/p>\n<p>And we know that it is your work, your effort, and the growth you provide that is essential to the task of creating a stronger economy here.<\/p>\n<p>But if we continue to pull together; to take the right decisions, even when they aren\u2019t easy; then I believe we will only see our economy continue to grow.<\/p>\n<p>Thank you for listening.<\/p>\n<p>Photo by Eden Photography.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Danny Alexander reaffirms the government\u2019s commitment to \u2018stick to the path we are on\u2019 while focussing spending on high value infrastructure projects.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/13490"}],"collection":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13490"}],"version-history":[{"count":5,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/13490\/revisions"}],"predecessor-version":[{"id":13966,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/13490\/revisions\/13966"}],"wp:attachment":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13490"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13490"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13490"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}