§ 2. Mr. Beaumont-Darkasked the Chancellor of the Exchequer if he will take into account the problems of west midlands industry in framing his Budget.
§ The Chancellor of the Exchequer (Sir Geoffrey Howe)I shall of course take them into account, but I cannot anticipate my Budget statement.
§ Mr. Beaumont-DarkDoes my right hon. and learned Friend agree that industry and its work force have made huge efforts to cut costs and therefore make themselves more competitive? Does he therefore agree that the coming Budget gives him a great opportunity to help industry more and so help unemployment in the west midlands by giving all the help possible to reduce industry's costs? Furthermore, does he agree that it is more important to cut unemployment than to cut the standard rate of tax for those who are already in jobs?
§ Sir Geoffrey HoweAs I said, I cannot anticipate my Budget statement, but I endorse my hon. Friend's opening remarks about the tremendous efforts made by industry. I also point out that substantial relief has been brought to industry by successive Budgets. I agree with him about the importance of industry, particularly the motor industry, to the west midlands. I have been pleased to note the 1039 substantial improvements that have taken place recently in sales by Austin Rover, sales of Metros, and the output of Sherpa vans by Freight Rover. I hope that that performance will continue to improve.
§ Mr. Geoffrey RobinsonIs the Chancellor aware that his last remark revealed a total misunderstanding of the gravity of the position in the west midlands? Will he confirm that, regionally and nationally, investments, output, profits and plant utilisation are at a post-war record low? Is that not a disgraceful record? When will he frame policies designed to reverse those trends?
§ Sir Geoffrey HoweThe west midlands, having had so much of its activity concentrated on the motor industry, which has been through substantial difficulties in recent years, as he well knows, has therefore faced a surprising and unaccustomed portion of the economic storms that have been raging around the world. However, it is important to emphasise the improvements that are taking place and to underline the greater wisdom affecting local authorities in the region this year than last. There is a substantial contrast between the huge rate increases imposed on Birmingham by a Labour council last year and the substantial rate reductions under a Conservative council this year.
§ Mr. BudgenDoes my right hon. and learned Friend agree that what the west midlands needs most is a reduction in the costs of employment, which could best be achieved by his cutting substantially the national insurance surcharge?
§ Sir Geoffrey HoweI agree with my hon. Friend. That is manifest by the substantial reductions that we have already made in that tax on jobs imposed by the Labour party.
§ Mr. ShoreAfter those incredible, complacent remarks, does the Chancellor not realise that last year he presented a budget for industry, the heart of much of which is in the west midlands? Is he not aware that the latest figures for industrial production showed that, overall, industry was producing 0.6 per cent. less in the last quarter than it was a year ago? When he, comes to construct his Budget, will he take account of his grievous errors of judgment last year, do something this time to lift British industry out of the pit into which it has fallen, and do something for the prosperity of the heart areas and industries of this country?
§ Sir Geoffrey HoweThe right hon. Gentleman has an astonishing capacity to disregard the extent to which many of industry's problems are the consequence of policies pursued over many years by the Labour party. He should acknowledge that total national output is already one and a half times higher than it was in the trough at the beginning of 1981. There is a prospect for growth in the year ahead, in some cases ahead of many our international competitors.