Exports success
Posted by Andrew Jones, MP for Harrogate and Knaresborough, at 15:01, Thu 17 May 2012:
As I write this, the economic news is changing fast. We do not know if the Greeks will be able to form a government. Events there may seem a long way away, but our news is full of the Eurozone crisis again.
There are recessions across Europe, and technically we are back in recession with the economy shrinking for two successive quarters. In reality I think this shows that the economy is flatlining with growth some months and not others – every month being close to the zero line.
It demonstrates the hole much of the global economy – including our own – is in. I don’t think it is credible for the opposition to simply throw their hands up in the air and blame the government. Does anyone seriously believe that if the country didn’t have £1 trillion of public debt and an average £1,800 tax bill per household per year just to pay the interest on the debts that we would be in such difficulty? And does anyone seriously believe that such an enormous level of debt could have been paid off in two years? We may, by the end of this Parliament, be somewhere close to stopping the debt growing but it will take decades to pay off the debt.
Whatever we do, we are not immune to this crisis. If we look at one area of our economy – exports – we see both problem and progress. I have been working to promote UK exporting, as a vital ingredient in our economic recovery. The latest data shows the uncertainty in Europe is hitting British exports, but despite this exporting as a whole is performing well.
UK exports have grown by 23 per cent in the last two years and we have had some notable success stories locally. Knaresborough-based GSPK Circuits Ltd have just won the Queens Award for exporting. The UK automotive sector last year exported just under £30 billion worth of goods – a record. I know that local businesses already have products and services which they are exporting all over the world, something I was personally involved in in my business career here.
And there is action we can take locally to ensure that businesses grow and our area remains economically vibrant.
Just a few weeks ago I held my first Jobs Fair at Harrogate High School. More than 30 local employers, with over 100 vacancies in total, met hundreds of jobseekers. The Council’s Economic Development team spoke to all the employers present about their needs and jobseekers enjoyed masterclasses on apprenticeships, online job hunting and so forth. Already businesses have taken on new employees whom they met at the event.
Later this year I will be running an event promoting exporting from our area. I want to encourage more local businesses to start exporting or to target new markets, perhaps targeting new countries or new products. I hope many local companies will come to this event and there will be details in due course.
Growth does not come from governments, it comes from businesses and entrepreneurs. Government creates the environment for them to grow. That is why, even with the limited amount of money available, many measures have been targeted at helping businesses grow. Corporation tax has been reduced and is set to be reduced further. Entrepreneur tax relief has been increased. Small start-up companies are being given national insurance breaks. Key infrastructure projects – like electrification of the trans-Pennine line – have been prioritised for spending.
Trying to fight our way to sustained growth in the midst of an international economic crisis with the mountain of debt the country has is painful and difficult. Only with thriving businesses and people in jobs will we succeed.
Andrew Jones MP 01423 529614 andrew.jones.mp@parliament.uk
Visit my new website - www.andrewjonesmp.co.uk
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Posted by Michael Price, 21:18, Thu 17 May 2012: (Is this post abusive?) #
Another load of waffle but to be expected. Why won't you make banks lend to businesses. The sooner you get rid of Cameron and bring in David Davis,the man who should have got the job in the first place, you might win the next election. Sort out Europe with a referendum,immigration and law and order. I have voted conservative for 45 years but it will be UKIP for me next. Nigel Farage is the only mp who talks any sense.
Posted by Andrew Jones, 15:36, Tue 22 May 2012: (Is this post abusive?) #
Mr Price, thank you for responding.
Regarding bank lending I do understand that some businesses are finding it difficult to access finance. The government is however taking important steps to improve the situation and I was encouraged to hear that 70 per cent of small firms who seek a loan from their bank are successful.
Of course this is no consolation to the businesses that can’t access finance. To help these firms the government is:
• Introducing the National Loan Guarantee Scheme, a £21 billion scheme designed to make it easier and cheaper for small businesses to borrow;
• Securing from the banks a new Complaints Procedure, with an independent Reviewer investigating appeals; and
• Extending and improving the Enterprise Finance Guarantee, to underpin bank lending.
The Government is also widening the options for small firms by backing the expansion of business angel networks; providing some £200 million to match fund technology venture capital funds; and have extended and improved tax incentives for investors to back growing SME's, notably through the Enterprise Investment Scheme and the new Seed Enterprise Investment Scheme.
You also mention immigration. The Coalition started taking action to bring the numbers entering the UK down as soon as it came into Government. The Government has now implemented or announced radical changes in all the main routes of immigration and as a result of all the actions the Government is taking, it anticipates net migration will come down to the tens of thousands.
The coalition is, amongst other initiatives:
• Capping economic migration from outside the EU. The limit has not been reached in any month since the cap came into effect so the numbers are falling while necessary skilled workers are allowed in.
• Introducing minimum skills requirements so that some occupations are no longer eligible for entry.
• Reforming the student visa system – the largest route of entry. 116 licences to colleges have been revoked and another 179 suspended. The number of Tier 4 student visas issued has fallen by 19 per cent in the second half of 2011, compared to the same period in 2011.