Industry (Government Support)

Let me finish my introduction; I will come to specific projects later. In relation to taxation, the right hon. Member for Wolverhampton South East (Mr McFadden) knows that I am not in a position to pre-empt the Budget, but if he reads the Chancellor's speech to the CBI a few weeks ago, he will see that it fully acknowledges that not only do we wish to see lower rates of business tax overall, but we understand the importance of capital allowances in manufacturing. In my days in opposition, I tried to engage constructively and find common ground, and we have approached today's motion in that spirit. It includes some excellent statements, to which we are happy to subscribe. I shall start by working through some of those areas that appear to be common ground. The motion states that the""Government has a crucial role to play in fostering economic growth and in creating a better-balanced economy"." That is absolutely right, and we totally sign up to it—it is exactly what the Government are about—but it pre-empts the obvious question: why is the economy so unbalanced to start with, and who was running the Government who led it to be so unbalanced? By unbalanced, most of us mean that one sector, and one part of the financial services industry—the City and big banks—became too dominant, while the rest of the economy, including trade in goods and services, and in particular manufacturing, was allowed to decline relatively. That is the imbalance we are talking about. It is worth putting that in context, however. My hon. Friend the Member for Burnley (Gordon Birtwistle) made this point from a local context a few moments ago. The share of manufacturing in the British economy shrank from just over 20% in 1997 to just under 12% in 2009. Of course, that is a historical trend, but I remember in the 1980s when people were concerned about deindustrialisation. It is worth noting that the rate of decline in manufacturing over the past decade was three times as fast as it was in the 1980s. Manufacturing employment during the period of the Labour Government, when this imbalance grew, fell by 1.7 million—that is the population of Leeds, Sheffield and Glasgow combined. That demonstrates the decline in manufacturing. Furthermore, the number of manufacturing companies fell by 12% over that period. That was the imbalance created when the right hon. Member for Wolverhampton South East and his colleagues were in government.