Budget Resolutions and Economic Situation

Part of the debate – in the House of Commons at 6:34 pm on 28 November 1996.

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Photo of Mr Graham Bright Mr Graham Bright , Luton South 6:34, 28 November 1996

I am talking about keeping manufacturing jobs in the south-east. I represent Luton, not the north-east. I am proud to represent Luton and I will continue to represent it for many more years.

Luton is the economic dynamo for Bedfordshire and beyond. It is set to consolidate its current successes and to develop new opportunities for businesses and jobs, because it has all the main ingredients for future success. It has an excellent transport infrastructure. More and more passengers, especially business passengers, are choosing to use our airport. There is access to the M1 and the M25. There is an excellent rail service—and I am looking forward to its being privatised as I am sure that that will improve it even further.

Despite all that, there is much more to come. Luton airport is continuing to develop its services. It will be greatly assisted when the new Parkway station is built. It is to be the new interchange in Luton, financed by the private finance initiative. It will be a huge generator of employment in the area and it will be a magnet for businesses—not only airport-related businesses, but the corporate headquarters that are moving to towns such as Luton. That is good news and it illustrates the stage that Luton has reached and how we are financing our success.

It is not just the excellent transport system that is receiving huge amounts of investment. Prudential Insurance has invested millions of pounds in refurbishing the Arndale centre, which is the main shopping centre. I am pleased to say that it is in the centre of the town, not out of town. That refurbishment has increased the centre's attractiveness to shoppers and has led to new retail outlets setting up there. It is a real success story of private investment.

As I said, Vauxhall has invested its money in Luton, preferring to stay there rather than move to other European locations. The hon. Member for Norwich, South pointed out what was happening in the north of England; I am worried about what is on the other side of the channel. I want to ensure that Luton is an attractive environment. Britain is attracting almost half of all inward investment and I want to ensure that we keep it that way. Companies come to Britain not because they like it, but because it has the right economic environment. That is the only reason why they come here.

Much of our success has been achieved not by the interventionist approach favoured by Labour Members, but through the sort of private investment that is leading Luton into the next century. That private investment is there only because of the climate of enterprise that the Government have generated. Low tax, low inflation, low interest rates, sound public finances, reducing the burdens on business and ensuring high education standards and skill levels—those are the reasons why so many companies are investing in Luton. It is a microcosm of the rest of the country.

Those Government policies have created an economic climate in which businesses can thrive. Successful business means more jobs and more jobs mean better standards of living, both for the people of Luton and for people throughout the rest of the United Kingdom. Luton will play a major part in ensuring that this country becomes the enterprise centre of Europe—and it will do so only because of the Government's successful economic policies, which will continue as a result of the Budget announcements. I congratulate my right hon. and learned Friend the Chancellor on this year's Budget measures. They will build on the solid foundations that have been laid in the past 17 years of Conservative government. The measures lay out the strategy for a prosperous future for all who live in Luton and in the rest of the UK. They should be supported enthusiastically by the House.