4. What steps the Government plan to take to ensure a stable economic environment for businesses in Scotland. (60311)
12. What steps the Government plan to take to ensure a stable economic environment for businesses in Scotland. (60319)
“The Plan for Growth” published in the March Budget set out a programme of reforms to create the right conditions for private sector-led growth. This month the Government launched the next stage of the growth review with the central purpose of creating the right conditions for businesses to be established, to invest, to grow and to create jobs.
At a time when the Treasury is bringing about stability to the banking sector and banking regulation, does my right hon. Friend agree that the SNP’s drive for further independence in Scotland could destabilise Scotland’s financial markets?
There is no question but that uncertainty over the nature, number and timing of the questions that will be asked about independence will be no good for the Scottish economy.
In Scotland and across the United Kingdom, small and medium-sized companies are vital engines of growth and job creation, for which improving access to funding is a vital priority. Will my right hon. Friend tell the House what steps he is taking to address the challenge and whether those steps include working with organisations such as the Federation of Small Businesses in Scotland?
My right hon. Friend is absolutely right to highlight the critical issue of access to finance. Unless we get enough lending to small and medium-sized businesses, among others, we will not get the economy growing again. That is why creating the conditions in which businesses start, grow and invest appropriately is central to “The Plan for Growth”, and it is why Project Merlin sets out very tough targets for lending to businesses across the UK.
Does the Secretary of State agree that businesses’ access to fast broadband is also essential for business growth? Does he share my concern that many constituencies in Scotland, such as mine, do not have such access? What discussions has he had with the Scottish Government regarding that?
That was one of the key issues that the hon. Lady wanted to raise when I met her a week or so ago to discuss the economy in Ayrshire. As a Government, we are committed to the implementation of superfast broadband across the United Kingdom, and we are in discussions with the Scottish Government on how they should go about that in Scotland. Such provision is vital in Ayrshire, the borders and all parts of the country. I am happy to work with her and others, including the Scottish Government, to ensure that we achieve it.
Has the Secretary of State had an opportunity to read the Government expenditure and revenue study published this morning, which shows that the Scottish economy is outperforming that of the UK and carrying a lower deficit? Will he take the opportunity to congratulate the Scottish Government on their efforts to promote stability through economic growth and recovery?
That is a typically interesting interpretation of the figures in this morning’s report, which show that, on pretty well every measure, Scotland is running at a deficit. That highlights the volatility and difficulties associated with the different measures. It is vital that we get Scotland’s economy back on the right footing. That is why, as a Government, we are cutting corporation tax, keeping interest rates low and reducing the burden on national insurance. I am happy to work with the Scottish Government, who have fantastic powers at their disposal to ensure that the economy grows. We need to work in partnership.