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Economic Growth

Volume 516: debated on Tuesday 12 October 2010

19. What assessment he has made of the effect on GDP of proposals to increase the level of economic growth in the June 2010 Budget. (16498)

The Government are continuing to do whatever they can to support business. As I said in answer to previous questions, Richard Lambert from the Confederation of British Industry described our emergency Budget as a

“first important step on the long journey back to economic health.”

It is a step that the Labour party unfortunately does not want to take with us.

How do we ensure that everyone benefits from economic growth, particularly pensioners? With interest rates so low, many pensioners in Beckenham are rapidly eating into their life savings.

My hon. Friend raises an important point. Although the emergency Budget was very much about supporting business and creating again the conditions for employment, he is right to mention pensions. That is why another key part of it, which perhaps got less attention than it otherwise would, was our managing to re-establish the earnings link with the state pension. The Labour party failed to do that in 13 years—it promised but, as ever, failed to deliver.