Monday Volume 594 23 March 2015 No. 130

HOUSE OF COMMONS OFFICIAL REPORT

PARLIAMENTARY DEBATES (HANSARD)

Monday 23 March 2015

£5·00 © Parliamentary Copyright House of Commons 2015 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 1097 23 MARCH 2015 1098

190,000. Rather than all this waffle, why will she not House of Commons finally admit that her record at the Home Office is one of complete failure in that area and a series of broken Monday 23 March 2015 promises? Mrs May: As I said in response to the hon. Member The House met at half-past Two o’clock for Stockton North (Alex Cunningham), I fully accept that we have not met the net migration target that we set, but we have tightened every route into the United PRAYERS Kingdom from outside the European Union, and we have said clearly what a Conservative Government would [MR SPEAKER in the Chair] do to deal with free movement from the European Union. I say once again that it ill behoves the Labour party to make such comments, because in government it presided over uncontrolled mass immigration that had Oral Answers to Questions the impact of keeping incomes at the lower end of the scale down and was identified by its own policy guru as a 21st century wages and incomes policy.

HOME DEPARTMENT Philip Davies (Shipley) (Con): The public certainly want immigration to be properly controlled, and far The Secretary of State was asked— better controlled than it is at the moment, but they also want some honestly about immigration. Is not the fact Migration of the matter that while we remain in the EU with free movement of people we cannot guarantee how many 1. Alex Cunningham (Stockton North) (Lab): What people will come to this country, so we should not be her policy is on the net migration target; and if she will making promises that we are in no position to keep? Is make a statement. [908227] not the fact of the matter that we cannot control the number of people coming to this country while we 9. Mr John Spellar (Warley) (Lab): What her policy is remain in the EU? on the net migration target; and if she will make a statement. [908236] Mrs May: My hon. Friend is right to identify the significant increase in the number of people coming to The Secretary of State for the Home Department this country from inside the European Union as the key (Mrs Theresa May): Uncontrolled mass immigration reason we have failed to meet our net migration target. increases pressure on public services and can drive However, crucially, not only has the coalition already down wages for people on low incomes. That is why we taken steps to tighten up on movement from inside the are committed to reducing net migration. Where we can European Union—for example, by reducing access to control immigration, our policies are working; we have benefits—but the Conservative party has clearly set out reduced non-EU immigration, raised the standards required what we would do in government after the election to come here and clamped down on abuse. Without our to deal with free movement and tighten up further to efforts, met migration would have been far higher. reduce migration from inside the European Union.

Alex Cunningham: But net migration is much higher Mr David Nuttall (Bury North) (Con): Does the now than it was when the Conservatives came to power— Home Secretary recognise the sense of grievance felt by 54,000 higher. It now stands at more than 300,000, citizens of Commonwealth countries who for years which is more than double their target. Is the Home have abided by the rules when trying to get into this Secretary trying to take the public for fools by suggesting country as immigrants, only to see EU citizens being that her party will repeat its broken promise to cut able simply to walk in and out of the country at will? migration drastically? Mrs May: My hon. Friend makes a point about Mrs May: I have been very clear that of course we Commonwealth citizens, many of whom have come to have not met the net migration target we set, but I have the United Kingdom and contributed greatly. We are to say to the hon. Gentleman that this Government clear that we want to tighten the rules on people coming have clamped down on abuse—860 bogus colleges can from inside the European Union, particularly in relation no longer bring in overseas students—and tightened to the ability to claim benefits, which I believe will have every route into the UK from outside the EU, and we an impact on the number of people coming here, but in have set out clear plans for what a Conservative Government order to do that we need a Conservative Government to would do to deal with free movement. We on the be elected on 7 May. Government Benches will take no lessons from a Labour party that allowed uncontrolled mass immigration. Mr David Hanson (Delyn) (Lab): Could the Home Secretary bring herself to say the words, “Net migration Mr Spellar: Contrary to that reply, is not the reality is 54,000 higher than when Labour left office”? Could that the Home Secretary is leaving office with net migration she stand at the Dispatch Box and say that today—not higher than when she arrived, because it now stands at tens of thousands, as she promised—and could she say 298,000? She claims she has cut migration from outside to the House with no ifs and no buts that she has the EU, and that is true: it is down from 196,000 to broken her promise made at the election? 1099 Oral Answers23 MARCH 2015 Oral Answers 1100

Mrs May: The right hon. Gentleman’s question is the James Brokenshire: This Government have invested third that I am answering from Labour Members. In heavily in capabilities to deal with cybercrime through response to the first two, I said clearly that the Government the establishment of the new cybercrime unit in the have not met their net migration target. I am not trying National Crime Agency and the work of police forces to claim that we have; I am very clear about the fact throughout the country to ensure that we have the that we have not met our net migration target, but digital forensics—the digital information to fight the this Government have recognised the significance of new crime types. The hon. Gentleman clearly does not immigration as an issue, and the impact that it has on recognise the important achievements of this Government public services and wages at the lower end of the in cutting crime, at a time of having to save money to income scale, and it is this Government who are doing deal with the deficit that we inherited from Labour. something about it. Anti-radicalisation Programmes Communications Data 3. Mr Jim Cunningham (Coventry South) (Lab): If 2. Justin Tomlinson (North Swindon) (Con): What she will conduct a review of the effectiveness of assessment she has made of the risks to the UK from anti-radicalisation programmes. [908230] gaps in communications data capability. [908229] The Secretary of State for the Home Department The Minister for Security and Immigration (James (Mrs Theresa May): We continually monitor and evaluate Brokenshire): Our law enforcement and intelligence agencies the Channel programme to ensure its effectiveness. Through continue to face a decline in their ability to obtain the the Counter-Terrorism and Security Act 2015 we have communications data they need. This is caused by the placed the programme on a statutory basis. The duty use of modern technology and changes in the way in aims to secure local co-operation and delivery in all which people communicate. We believe that further areas and we, of course, work closely with international changes to the law are needed to maintain capabilities. partners to make sure that we are sharing expertise and We cannot let cyberspace become a haven for terrorists best practice in tackling extremism and radicalisation. I and criminals. have today published the latest annual report on our counter-terrorism strategy, Contest, alongside the annual report on the serious and organised crime strategy, and Justin Tomlinson: Can my hon. Friend assure me copies of both reports will be made available in the Vote that the next Conservative Government will introduce Office. the appropriate legislation to restore our declining communications data capability? Mr Cunningham: How many people returning from Syria have gone through the deradicalisation programme, James Brokenshire: It is very clear that although this and how many people in total have gone through that Government have taken some steps to close the gap, programme? significant gaps remain. The Joint Committee on the draft Communications Data Bill identified that, but we Mrs May: More than 2,000 people have gone through have not been able to bring those measures through in Channel since it was rolled out nationally in 2012, and this Parliament. We need to remedy that. Given that hundreds have been offered support. This is dealt with about 95% of serious crime cases involve the use of case by case. It is not appropriate for everybody to be communications data, those measures are an essential put into the Channel programme, but it has been effective tool in fighting crime, and we are determined to take and we are seeing significant numbers of people referred further action to close the gap and make sure that our to it. police and security agencies have the powers they need. Crispin Blunt (Reigate) (Con): I welcome my right Mr Frank Roy (Motherwell and Wishaw) (Lab): What hon. Friend bringing clarity about what is and what is discussions has the Minister had with the Scottish not acceptable in the context of radicalisation and Government in relation to the risk and responsibility extremism. In an environment where our press and for communications data? media are prone to hysterics and have the capacity to achieve the objectives of the enemies of our society by James Brokenshire: On issues of national security, sowing fear and anxiety where none needs exist, will she there are reserved powers. We therefore retain that continue to proceed calmly and on the basis of the focus on ensuring that security is assured. Clearly, evidence? communications data and other measures play an important part. I am sure that discussions with others, including Mrs May: My hon. Friend makes a very important devolved Administrations, will take place in future, but point about proceeding on the basis of the evidence. I ultimately this is a matter for the UK Government. am grateful for his comments about remarks that I made earlier today about the necessity for us to develop Mr Barry Sheerman (Huddersfield) (Lab/Co-op): The a wider partnership to counter extremism across its Minister and his boss must be aware that our police, broadest spectrum so that we can deal with the hateful under-resourced as they now are, are still in a mode of beliefs that the extremists are propagating. fighting traditional crime. Cybercrime, as we all know, has been the great challenge. Throughout the country Keith Vaz (Leicester East) (Lab): I too welcome the we are unequipped to deal with it, and it is what most Home Secretary’s comments in her speech this morning. citizens will face in the form of fraud and other criminal Only by working with communities are we able to tackle activity. this problem. I also commend the Metropolitan police 1101 Oral Answers23 MARCH 2015 Oral Answers 1102 and Turkish authorities for bringing back to London The Minister for Crime Prevention (Lynne Featherstone): the three young men from Brent. It is sad that we missed Domestic abuse is an appalling crime, and this Government the opportunity of doing this with the four young girls are determined that the police response is the best it can from Bethnal Green. What is the message to families to be. The Home Secretary commissioned Her Majesty’s get them to report areas of concern so that they do not inspectorate of constabulary to review the response to feel stigmatised if they do so? domestic abuse across police forces in England and Wales. We are driving change through a national oversight Mrs May: I am grateful to the right hon. Gentleman group. All 43 forces have action plans on domestic for his comments about my speech. He is right. As I abuse. In November, HMIC highlighted the commitment made clear in that speech, Government cannot deal of forces to improving their response. with this alone; we need to work with families, communities and civil society. The message that the Government Mr Slaughter: This Government have a truly terrible have given to families consistently in relation to those record on tackling domestic abuse, whether it is closing who might be travelling to Syria to get involved in specialist courts, restricting legal aid, or failing to prosecute. terrorist-related activity, or to be with terrorist groups, There is a rising number of offences, but since they is that the sooner they can give information to the came into office there have been 4,000 fewer prosecutions. authorities, the easier it is to work with them to ensure What are they going to do about that? that their young people are not put into that danger. Lynne Featherstone: I totally refute the hon. Gentleman’s Stuart Andrew (Pudsey) (Con): In the all-party group assertions. This Government have a record to be proud on Islamophobia we have heard countless times of the of in the work we have done on domestic abuse, not just need to offer more support to the mothers of young the ring-fencing of stable funding of £40 million but the Muslims who fear that their children might be in danger introduction of new laws, protection orders, and measures of being radicalised. What specific efforts are being on stalking abuses. We have done more in the five years made to support the mothers who are tackling this we have been here than the Labour Government before issue? us did in all their 13 years. What is more, I seem to recall that Labour Members are not proposing to reverse any Mrs May: My hon. Friend makes a very important of the legal aid cuts, and we have preserved legal aid for point. I am pleased to have been involved with two civil cases in which domestic abuse plays a part. society organisations that have been working with families—particularly, in one case, with women. FAST— Meg Hillier (Hackney South and Shoreditch) (Lab/ Families Against Stress and Trauma—is giving support Co-op): On legal aid for victims of domestic violence, I to families whose young people may have travelled and and other colleagues have come across women who are helping them to prevent young people from travelling. victims but who have had to fork out from their own Inspire’s “Making A Stand” programme is about Muslim pockets, and some have just given in after spending too women up and down this country saying that radicalisation much, moving too often and finding that the system is not taking place in their name, and working together does not work. Surely the Minister must acknowledge as Muslim women to ensure that their young people are that there is a problem. What is she going to do about it? not radicalised. Lynne Featherstone: I reiterate that the £2 billion Diana Johnson (Kingston upon Hull North) (Lab): annual cost of legal aid, combined with the economic The Home Secretary said this morning, and has just circumstances left by Labour, meant that hard choices reiterated, that she wants a new partnership on Prevent had to be made. Labour was also committed to reducing between communities, individuals, civil society and legal aid. We have retained legal aid in key areas impacting Government. When she came into government, she on women, particularly with regard to injunctions to inherited 93 Prevent areas, which she cut to 23 and then protect victims from domestic abuse and in private put up to 30. She now says she wants 50, and they might family law cases where domestic abuse is a feature. go up to 90, so we are going back to where we started five years ago. Why the rollercoaster in such an important Extremism area for this country? 5. Rehman Chishti (Gillingham and Rainham) (Con): Mrs May: No, we are not going back to where we What steps her Department is taking to tackle started. First, the hon. Lady has made a fundamental extremism. [908232] mistake in her question in saying that my speech this morning related to Prevent. It did not; it related to the new counter-extremism strategy that the Government 6. Daniel Kawczynski (Shrewsbury and Atcham) (Con): are introducing. Secondly, when we came into government What steps her Department is taking to tackle extremism. we found that the Labour Government were funding [908233] extremist organisations, and members of the Labour party were standing on platforms embracing extremist The Secretary of State for the Home Department hate preachers. Government Members take a very different (Mrs Theresa May): Today I delivered a speech on the view. challenge of extremism in which I set out the need to develop a better understanding of the threat from Domestic Abuse: Police Response extremism; to promote more assertively our values and the proposition that everybody living in this country is 4. Mr Andy Slaughter (Hammersmith) (Lab): What equal and free to lead their lives as they see fit; to ensure assessment she has made of the effectiveness of the an effective response from the state; and to build up the police response to domestic abuse. [908231] capacity of civil society to identify, challenge and defeat 1103 Oral Answers23 MARCH 2015 Oral Answers 1104 extremism. I made it clear that the challenge to the The Parliamentary Under-Secretary of State for the extremists must be centred on a new partnership consisting Home Department (Karen Bradley): The Government of every single person and organisation in our country are committed to tackling the threat of serious and that wants to defeat extremism. organised crime. In 2013 we launched a comprehensive new strategy and a powerful new crime-fighting Rehman Chishti: In the light of recent incidents, organisation—the National Crime Agency—which are including that of the three young London girls who already making a difference. We continue to strengthen travelled to Syria, does the Secretary of State have any our response through the Serious Crime Act 2015, the plans to set up a hotline for parents concerned about Modern Slavery Bill and strategy, and the anti-corruption extremism, so that they can seek professional advice if plan. We have also forged new collaborative relationships they believe their children could be at risk, as is the case with the private sector to tackle money laundering and in Australia? to combat online child sexual exploitation.

Mrs May: There are a number of opportunities available to families to report concern, including the anti-terrorist Sir Tony Baldry: The National Crime Agency has hotline. The Metropolitan police also made a further clearly had a good start, with 300 convictions in just the call to families last week to encourage them to report as first six months. Will my hon. Friend confirm that the early as possible, and organisations such as Families Serious Crime Act 2015 will ensure that the National Against Stress and Trauma are actively working in Crime Agency continues to have the resources and communities to help people understand what they need powers to address serious and organised crime? to do when they are concerned about their children. Karen Bradley: I thank my right hon. Friend for his Daniel Kawczynski: Will my right hon. Friend assure question. He is right that the National Crime Agency me that the next Conservative Government will introduce has made a good start. We have looked carefully at new powers to tackle extremists and groups that spread where powers are needed to increase the weapons that it hate but do not break existing laws? has in its arsenal, and the Serious Crime Act really assists the National Crime Agency and other police Mrs May: My hon. Friend raises an important point. forces in making sure that they can tackle particularly We have looked at addressing the issue of those people criminal finances to stop the Mr Bigs keeping hold of and groups who act in a way that does not meet the their money. current proscription threshold, and we will, indeed, introduce extremist banning orders and extremist disruption Seema Malhotra (Feltham and Heston) (Lab/Co-op): offers, which will do exactly what my hon. Friend says. One of the most serious forms of organised crime is child sexual exploitation. The National Crime Agency Fiona Mactaggart (Slough) (Lab): In her response to was given information over a year ago about 20,000 people the hon. Member for Gillingham and Rainham (Rehman who had downloaded abusive images of children. Twelve Chishti), the Home Secretary referred to the three girls months later, only 2% have been fully investigated or from Bethnal Green academy. When the first girl left in charged. What has happened to the other 98%? With December, what specific assistance was given to the that kind of backlog of CSE cases, does the Home school by the Home Office? Secretary really think that this is the right time to cut thousands more police? Mrs May: Following the first girl leaving in December, assistance was given to the school by the local Prevent co-ordinator and the local authority’s schools officer, Karen Bradley: The hon. Lady disappoints me. We who went into the school to make arrangements for have had this conversation on several occasions. The extra training to be given. fact of the matter is that the National Crime Agency, through Operation Notarise and others, has protected Kate Green (Stretford and Urmston) (Lab): What more children from abuse than any other agency, and it steps is the Home Secretary taking to encourage police is ensuring that children at risk of abuse are looked forces to record accurately and comprehensively incidences after and protected in a way that has never happened of Islamophobia and hate crimes against Muslim victims, before. which Greater Manchester police is already doing? Damian Green (Ashford) (Con): Does my hon. Friend Mrs May: The hon. Lady raises a very important agree that one of the signal successes of the NCA is that point. The approach to recording hate crime has developed it has made more than 600 arrests in dealing with online over the past five years and I am pleased that we are child sexual exploitation through the operation that she now able to see much more clearly what is happening. I has just mentioned? Will she assure the House that this was very clear in my speech today that this is an issue will continue to be a high priority, not just for the NCA for a future Government, but a future Conservative but for each individual local force? Government would require the police to record anti-Muslim incidents as well as anti-Semitic incidents. Karen Bradley: My right hon. Friend, who has considerable experience in this area, will know full well Organised Crime that the National Crime Agency and local police take this issue incredibly seriously. Bringing the Child 7. Sir Tony Baldry (Banbury) (Con): What steps her Exploitation and Online Protection Centre into the Department is taking to tackle organised crime. National Crime Agency, as a command within it, has [908234] increased both capability and capacity to consider such 1105 Oral Answers23 MARCH 2015 Oral Answers 1106 crime and to make sure that we find those criminals it published the latest crime figures, that it had found who want to hurt our children and prevent them from that although there may have been some movement by doing so. criminals into fraud and cybercrime, it certainly had not been enough to offset the substantial falls in traditional Crime Rates crimes, such as burglary and vehicle theft, over the past 20 years. Action Fraud’s reporting is up. That is a 8. Mr Dominic Raab (Esher and Walton) (Con): specialist reporting agency. We are acting on fraud. What steps she is taking to reduce crime rates. [908235] Early Intervention Programmes The Minister for Crime Prevention (Lynne Featherstone): Police reform is working, and crime is down by more 10. Mr Graham Allen (Nottingham North) (Lab): than a fifth under this Government, according to the What steps she is taking to encourage police and crime crime survey for England and Wales. We are taking commissioners to support early intervention programmes. decisive action to cut crime and protect the public, [908237] including through working with the National Crime Agency. We are tackling the drivers of crime, including through our drug and alcohol strategies, and we have The Minister for Crime Prevention (Lynne Featherstone): intensified our focus on issues such as violence against As part of the work of the Home Office crime prevention women and girls, gangs and sexual exploitation. panel, the Early Intervention Foundation and the College of Policing recently launched new guidance to help front-line police support early intervention. The police Mr Raab: I thank the Minister for that answer. While and crime commissioners from Dorset, Lancashire and police funding has been cut by about a fifth, police-recorded Staffordshire were involved in the development of the crime has fallen by 14%, and by 28% across Elmbridge guidance. in my constituency. Will she join me in commending front-line officers in Surrey and across the country for the great job they are doing? Does that fall not demonstrate Mr Allen: May I ask the Minister to do something how vital reform is, and that public services cannot be very practical? We are grateful that she launched the judged only by the amount of money going in? report, but will she ensure that every single police and crime commissioner and every single chief constable Lynne Featherstone: I am happy to join my hon. gets a copy of it so that they can not only reduce crime Friend in commending front-line officers in Surrey, and by cutting down dysfunction in the population early on I congratulate all police forces that, with their police in life, but save the taxpayer a lot of money through not and crime commissioners, are rising to the challenge of having to invest money late on through late intervention? driving efficiency and cutting crime. Effective policing plays a key part in reducing crime, and PCCs are Lynne Featherstone: The early intervention guidance ensuring that forces focus on the issues that matter most for police will provide invaluable support in stopping to local people. My hon. Friend is right that money is potential criminals before they commit crimes, which not the only thing that we need in order to cut crime; will save the police a great deal of work in the long dedicated officers are our greatest resource. term. The guidance is already available online. We encourage all police officers, police community support officers, Dan Jarvis (Barnsley Central) (Lab): There is no chief constables and PCCs to read it. I am happy to doubt that the huge increase in the use of so-called legal take up his suggestion if I have time, because the more highs has an impact on crime rates. I have seen that in officers have access to it, the better. I am sure that we my constituency. The Government have agreed to ban can get it done before Thursday. legal highs, but have not yet acted to do so. Will the Minister tell the House whether the Government will Police Budgets take action in this Parliament, and if not, why not?

Lynne Featherstone: Given that this Government have 11. Kerry McCarthy (Bristol East) (Lab): What actually banned and outlawed 500 legal highs, I do not recent discussions she has had with police unions and think it is accurate to say that we have taken no action. associations on the effect of changes to police budgets We obviously want to move to a general ban on legal on frontline staff. [908238] highs—lethal highs, as I call them—and that is on the shelf, ready for the new Government. The Minister for Policing, Criminal Justice and Victims (Mike Penning): The Home Secretary and I hold regular Mr Steve Reed (Croydon North) (Lab): There is a bilateral meetings with police work force representatives. glaring difference between the Government’s complacency I have said since day one as the police Minister that my and the City of London police commissioner’s view door is always open to those representatives. that online crime is growing exponentially. Does the Minister agree with the Office for National Statistics Kerry McCarthy: The Minister will know, then, what that if all bank and credit card fraud were included, the pressure front-line policing is under. The Government statistics would show that overall crime was up by 50%? promised to protect and even increase front-line policing numbers, yet 8,000 front-line jobs have gone. Why will Lynne Featherstone: I am having a lot of disagreements the Home Office not look at alternative ways of saving with the Labour party today. The ONS is working to money, such as introducing better procurement practices incorporate measures of cybercrime in the main crime or scrapping police and crime commissioners, rather survey. It looked at this issue specifically and said, when than pursuing plans to axe yet another 20,000 officers? 1107 Oral Answers23 MARCH 2015 Oral Answers 1108

Mike Penning: I would have thought that the hon. sponsor to demonstrate that they have secured permanent Lady would have praised the work that is being done by employment on such a salary, and not have a situation Avon and Somerset police, rather than following the where several months have to pass with someone providing party line. In her constituency there has actually been a bank statements to show their income, during which 5% increase in front-line officers, who are not doing time their partner is separated from them? back-room work, and a 21% cut in crime. James Brokenshire: Migrant partners with an appropriate Mr David Heath (Somerton and Frome) (LD): Avon job offer can apply to come to the UK under tier 2 of and Somerset police have indeed done very well. However, the points-based system, and those using the family an understandable operational response to difficult budgets route to come to the UK must be capable of being is to withdraw policing from rural areas, which empirically independently supported by their sponsor, their joint have a lower level of crime. That is understandable, but savings, or non-employment income. We have considered wrong. Will the Minister reassure me that he will tell all the issue in an appropriate way to ensure that people are police forces that they have a duty to people who live in not a burden on the taxpayer, and I underline again that rural areas? Those people must not think that they are the system has been tested and upheld in the courts. being exposed to crime or abandoned by the forces of law and order. John Cryer (Leyton and Wanstead) (Lab): Has the Mike Penning: I assure my right hon. Friend that Minister made any assessment of the minimum age of each time I go into any force I say to anybody who sponsors as well as minimum income, because the two listens to me not only that it is their duty to address factors often relate to each other? rural crime—my constituency has large rural areas—but that all crime, no matter where it is, needs to be detected James Brokenshire: The hon. Gentleman will no doubt and prosecuted. be aware that the minimum age for spouse visa applicants and sponsors was increased to 21 in 2008, and the Visas: Income Threshold Government defended that position. The Supreme Court found in 2011 that although the Secretary of 12. Richard Burden (Birmingham, Northfield) (Lab): State was pursuing a legitimate and rational aim in What her policy is on the minimum income threshold seeking to address the problem of forced marriages requirement for people wishing to sponsor their —the hon. Gentleman will know that such issues partner’s visa to settle in the UK. [908239] exist—increasing the minimum marriage visa age from 18 to 21 disproportionately interfered with the The Minister for Security and Immigration (James right to a family life under article 8 of the European Brokenshire): The minimum income threshold of £18,600 convention of human rights. We keep such issues under for sponsoring a partner under the family immigration close review, but they are complex. rules ensures that couples who wish to establish their family life in the UK can stand on their own feet Jeremy Corbyn (Islington North) (Lab): Will the financially. The requirement prevents burdens on the Minister think again about this whole policy? It is cruel taxpayer and promotes integration. It has been upheld on children who are denied the right to live with their by the Court of Appeal and is helping to restore public parents, contrary to the principles of the conventions confidence in the immigration system. on human rights, and really not necessary. Its only Richard Burden: The Minister has just asserted that effect is that of hurting the very people who should not the purpose of the minimum income threshold is to be hurt because of it. ensure that a spouse from overseas who comes to live here is not a burden on the taxpayer. However, at James Brokenshire: While ensuring sufficient resources £18,600, the threshold is more than £3,000 higher than so that those arriving are supported at reasonable levels, the living wage. Does he not think that it should be the minimum income threshold is also intended to reviewed to ensure that the original purpose of the ensure that family migrants can participate sufficiently minimum income threshold is what counts and that it in every-day life to facilitate their integration into British does not discriminate against those on the living wage society. That is one of the fundamental purposes of the or below, or against people who happen to live in the policy, and I think that is right. wrong part of the country? Post-study Work Visas James Brokenshire: As the hon. Gentleman knows, the income threshold was set on the basis of advice given to the Government by the Migration Advisory 13. Mike Crockart (Edinburgh West) (LD): What Committee, which considered this issue in great detail discussions she has had with the Secretary of State for to assess the appropriate level. Perhaps he will find Scotland on the potential introduction of a scheme to interesting the fact that the 2014 annual survey of hours allow international students graduating from Scottish and earnings for the Office for National Statistics showed further and higher education institutions to remain in that median earnings of those in full-time employment Scotland to work for a defined period of time. [908240] were appreciably higher than £18,600 in all parts of the UK. The Parliamentary Under-Secretary of State for the Home Department (Karen Bradley): My right hon. Friend Duncan Hames (Chippenham) (LD): In practice, the the Home Secretary meets colleagues regularly for length of time in which a sponsor is required to demonstrate discussions on a range of issues, including how we can that they have met the minimum income threshold is continue to attract the brightest and best to study here driving families apart. Would it be sufficient for a while bearing down on abuse. 1109 Oral Answers23 MARCH 2015 Oral Answers 1110

Mike Crockart: The recommendation comes as part Her Majesty’s inspectorate of constabulary has reported of the Smith agreement. It recognises that the higher that forces up and down the country are reducing education sector is a multi-billion pound industry, and crime and protecting communities, while balancing their Edinburgh university is one of the most successful books. participants in that. More than 10,000 foreign students are now studying at Edinburgh, generating some of the Rosie Cooper: Since 2010, Lancashire police has lost highest quality research in the UK. Does the Minister 700 posts and 11 police stations have been closed due to agree that keeping more of those excellent students in £60 million-worth cuts, with more to come. Offences the UK while their research is commercialised would be such as burglary, theft and violence are all on the rise. of enormous benefit, not just to the Scottish economy The Lancashire Police Federation says that the police but to the UK as a whole? are at breaking point. Will the Minister please apologise to the people of West Lancashire for failing to honour Karen Bradley: My hon. Friend will know that the his promise to protect front-line policing? Russell Group of universities, of which Edinburgh is a member, has seen a 30% increase in the number of Mike Penning: I like the hon. Lady—I get on with her applications from overseas students since 2010, showing really well—but she should apologise to her constituents that studying in the United Kingdom is an attractive for not mentioning that crime is down by 9% in her offer to students. There is no cap on the number of constituency and across Lancashire, something we should students who can stay in the UK after completing their all be very proud of. degree, provided they have a graduate-level job, get an internship or become a graduate entrepreneur. Tim Loughton (East Worthing and Shoreham) (Con): On Friday night, I went out with the very impressive Pete Wishart (Perth and North Perthshire) (SNP): section 136 team at Worthing police. The initiative, The Minister will have seen the Scottish Government’s under which community psychiatric nurses go out on post-study work working group, which recommends patrol with the police, is being piloted in Sussex. Given that a post-work study visa is reinstated for a wide that up to two thirds of police call-outs are estimated to range of people, including businesses, education and relate to mental health and substance abuse problems, student representatives. Will the Minister consider that this has the potential to free up a lot of police time and or will she ignore it again? What can the Scottish people save a lot of money. These pilots really work, so will do to progress that agenda and ensure that our economy they be rolled out across the whole country? and higher education institutions benefit? Mike Penning: That pilot and other pilots around the country are working. I have seen them myself. It is our Karen Bradley: What the Scottish people can do is intention to continue to roll them out. We are working clear: stay part of the Union. I repeat that there is no enormously closely in particular with the mental health cap on the number of graduates who can stay on after team in the Department of Health. I have seen dramatic their studies, provided they have a graduate job, an changes not only in my constituency but around the internship or a graduate entrepreneurship. country. There are people who should not be in cells and should not be arrested. They should be in a place of Ann McKechin (Glasgow North) (Lab): The Minister care, where they need to be. That is what we expect to will be aware of the reduction in the number of students happen. from the Indian subcontinent. One of the major reasons for that is that they are unable to remain in the United Andrew Gwynne (Denton and Reddish) (Lab): My Kingdom for a few years to work and to pay off their Greater Manchester police force has had to make savings fees. This policy, therefore, discriminates against those of £145 million in the five years to 2015, and has lost who come from poorer nations, rather than those from more than 1,300 police officers as a result. Across the richer families. country, the picture is pretty similar. Will the Minister say whether, as a result of the changes to police forces, Karen Bradley: I repeat that since 2010 there has been response times have improved or got worse on his watch? an increase in the number of visa applications from overseas students. It is difficult to say what the drivers Mike Penning: What has happened on the Home are for our seeing more students from some countries Secretary’s watch and on my watch is that crime in the and fewer from others. For example, we are seeing a hon. Gentleman’s constituency is down by 20%, something significant increase in the number of students from that is always forgotten every time Labour Members China, which indicates that it is not the reforms that are stand up in this House. stopping people from coming. Police Numbers: Lancashire Police Forces: Finance 15. Mr Nigel Evans (Ribble Valley) (Con): What assessment she has made of the adequacy of the 14. Rosie Cooper (West Lancashire) (Lab): What number of police officers in Lancashire. [908242] assessment she has made of the financial condition of police forces in England and Wales. [908241] The Minister for Policing, Criminal Justice and Victims (Mike Penning): Crime has fallen by a fifth across the The Minister for Policing, Criminal Justice and Victims country and by 9% in my right hon. Friend’s constituency. (Mike Penning): The Home Secretary and I have made That is because we have proved that more can be done it clear that there is no question but that the police with less. We should be very proud of police forces will have the resources to do their important work. across the country, particularly in Lancashire. 1111 Oral Answers23 MARCH 2015 Oral Answers 1112

Mr Evans: Unlike the hon. Member for West Lancashire Mr Hollobone: We are blessed in Northamptonshire (Rosie Cooper), I want to praise the work of the Lancashire with excellent and hard-working policemen and women, constabulary in my county, where crime has gone down and it is marvellous that crime has fallen. Given that we by 19% since 2011. Antisocial behaviour is down by were told by Her Majesty’s loyal Opposition that crime 35.8% and robbery in the past 12 months is down by would rise because of the police budget cuts, why does 47%, which is a remarkable figure. Will the Minister my right hon. Friend think it has actually come down? assure the House that the Lancashire constabulary will, under a Conservative Government, have sufficient resources Lynne Featherstone: I congratulate my hon. Friend to carry on doing its great work in the next five years? on his work as a police special constable. He rightly says that the Opposition doubted our ability to bring down Mike Penning: Not only will we guarantee that, we crime. However, our police forces have proved that will continue to roll out the specialist equipment that is where there is a will there is a way, and they have cut helping the police day in, day out, especially body-worn crime by more than 20% this Parliament, according to cameras. They are ensuring that more people in the the crime survey. We should be very proud of them. community are protected, the officers are protected and we get more convictions, something I expect to see in Topical Questions Lancashire, as well as in the rest of the country. T1. [908217] Maria Miller (Basingstoke) (Con): If she Sham Marriages will make a statement on her departmental responsibilities. The Secretary of State for the Home Department 16. Stephen Hammond (Wimbledon) (Con): What (Mrs Theresa May): For too long, thousands of people recent steps she has taken to tackle sham marriages. have been on bail for months or even years, with no [908243] independent oversight of the police’s investigation. To put a stop to this, I announced to the House in December The Minister for Security and Immigration (James that I was consulting on the introduction of statutory Brokenshire): This month, the Government introduced time limits for pre-charge bail. That consultation closed a new scheme to tackle sham marriages and sham civil on 8 February, and I am grateful to the 300 individuals partnerships allowing the Home Office to investigate and organisations that responded. I have today placed suspected sham cases under an extended 70-day notice in the Library of the House and on the gov.uk website a period. Since April 2014, we have intervened in more summary of the consultation responses and the than 2,000 suspected sham marriages, and last year Government’s response. 30 organised crime groups involved in arranging sham On the key point of independent review, it is apparent marriages were disrupted, with many receiving long from the consultation that the model where all extensions custodial sentences. of bail past 28 days would be done in court would not be viable, as there is unlikely to be sufficient capacity in Stephen Hammond: Will my hon. Friend update the the magistrates courts. I have therefore decided to adopt House on the number of people he expects this country the model endorsed by the consultation under which to protect itself against following the introduction of pre-charge bail is initially limited to 28 days. In complex these new powers? cases, an extension of up to three months could be authorised by a senior police officer, and in exceptional James Brokenshire: This has been a priority for me circumstances, the police will have to apply to the courts since I took on the immigration responsibilities last for an extension beyond three months to be approved year. We will take strong action, including prosecution by a magistrate. This will introduce judicial oversight of and seizure of assets. As for an update, this financial the pre-charge bail process for the first time, increasing year we have undertaken more than 2,000 operations, accountability and scrutiny in a way that is manageable resulting in 1,200 arrests and more than 430 removals, for the courts. which compares with 327 sham marriage operations, resulting in 67 arrests in 2010, showing that, unlike the Mr Speaker: We are all now very fully informed. last Government, this Government are committed to this issue. Maria Miller: I recently visited Hampshire’s cyber-crime unit and spoke to officers detecting online crime, particularly Crime (Northamptonshire) child abuse. I am sure the Home Secretary will want to join me in commending those officers for their dedication. Does she agree that we need to do everything we can to 17. Mr Philip Hollobone (Kettering) (Con): What the help police in this work and, in particular, to ensure that level of crime was in Northamptonshire in (a) May social media and other websites verify the identity of 2010 and (b) March 2015. [908244] UK residents using their sites?

The Minister for Crime Prevention (Lynne Featherstone): Mrs May: First, may I take up the point that my right Police reform is working and crime is down by more hon. Friend made about the work of police officers in than one fifth under this Government, according to the police forces, the Child Exploitation and Online Protection independent crime survey for England and Wales. Centre and the National Crime Agency more widely in According to the latest figures published by the Office dealing with child abuse cases? These are not easy for National Statistics, police recorded crime in issues, and they do a very valuable job. Over the period Northamptonshire fell by 18% between June 2010 and of this Government, we have invested £86 million in September 2014. dealing with cybercrime, and the creation of the national 1113 Oral Answers23 MARCH 2015 Oral Answers 1114 cyber crime unit at the NCA is, I believe, an important rant show once again, I am afraid, that she is not paying element in dealing with cybercrime. We expect social attention to what is actually happening. What is happening media companies to make it easy for users to choose is the exact opposite of what she and her colleagues said not to receive anonymous posts, to have simple mechanisms five years ago. She said crime would go up, but crime for reporting abuse and to take action promptly when has gone down under this Government. abuse is reported. T3. [908219] Robert Halfon (Harlow) (Con): My right Yvette Cooper (Normanton, Pontefract and Castleford) hon. Friend will be aware that we in Harlow have had (Lab): The Office for Budget Responsibility says that more than 109 illegal and unauthorised encampments the Chancellor is planning cuts that are much more over the past 15 months, and there is now a town-wide severe than anything we have seen over the last five injunction banning anyone from setting up unauthorised years. The Institute for Fiscal Studies has said that the or illegal encampments. Will my right hon. Friend look cuts will be twice the size of any year’s cuts over this at how we can strengthen the law, possibly following the Parliament. That means a real-terms cut for the Home Irish example of making trespass a criminal rather than Office under the right hon. Lady’s plans over the next a civil offence? few years alone of 23% and the loss of 20,000 more police officers on top of those who have already gone. The Minister for Policing, Criminal Justice and Victims When the terror threat is growing, when more child (Mike Penning): I pay tribute to my hon. Friend for the abuse cases are coming forward, when recorded violent campaigning and work he has done on behalf of his crime is up and when chief constables say that constituents whose lives have been blighted by these neighbourhood policing cannot be sustained, is she illegal camps. When we are back in government after really saying to communities across the country that she the election, we will look at the law—I can assure you of and the Tories are prepared to cut 20,000 more police that, Mr Speaker—but we must also make sure that the officers? police use the powers they have and are not frightened of using them, as appears to have happened in certain Mrs May: The right hon. Lady knows full well that parts of the country, including in my hon. Friend’s part the funding for counter-terrorism policing has been of Essex. protected and that this Government are putting more money into dealing with child sexual exploitation. When T7. [908223] Meg Munn (Sheffield, Heeley) (Lab/Co-op): she comes to deal with this issue, perhaps she could I am concerned about a recommendation in a recent remind people why it is that this Government have had Home Affairs Committee report that those arrested on to deal with budget cuts across the public sector: it is sexual offences charges should be given anonymity. because the last Labour Government left us with the Does the Home Secretary agree that in these worst budget deficit in our peacetime history. circumstances, these prosecutions are extraordinarily difficult, and that the decision should be made carefully Yvette Cooper: But the right hon. Lady has not by the police? Will she ask the independent panel managed even to meet her deficit plan, and we have inquiry also to look at this issue? already seen the police cut across the country. Her plans mean going further in the scale of police cuts, with Mrs May: The hon. Lady raises an important issue. 20,000 further police officers going across the country As she will be aware, there was a significant debate at a time when recorded rapes are up 30%, but fewer about this very thing early on in this Parliament. The rapists are being arrested; when recorded violent crime Government have not yet responded to the Home Affairs is up 16%, but fewer violent criminals are being convicted; Committee report—for understandable reasons, given when online fraud is through the roof, yet fewer fraud that it has only just come out—but I was asked about proceedings are going up; and when recorded child the matter when I was in front of the Home Affairs abuse is up 33%, yet 13% fewer paedophiles are being Committee last week. This issue has to be dealt with on prosecuted. On her watch, 999 waits are up, the police a case-by-case basis. I think that an assumption of cannot keep up with extremists on the streets and more anonymity on arrest is right in general, but there will be criminals are walking free. Is she really saying she is cases when it is right for the police to ensure that the going to go around the country, campaigning with all name is put out so that other people can come forward her Back Benchers, saying she is content for 20,000 to report crimes by the same perpetrator. more police officers to go—because we’re not, and we won’t? T4. [908220] Andrew Jones (Harrogate and Knaresborough) (Con): The use of legal highs is a significant problem Mrs May: The right hon. Lady mentioned that reports all over the country, and it is certainly a problem in of child sexual abuse have increased, and yes they have. Harrogate and Knaresborough. Such drugs can have In a sense, that is to be welcomed, because more people devastating consequences. The papers covering my feel that they can now come forward and report their area, the Harrogate Advertiser and The Knaresborough abuse, which means that those issues can be investigated Post, have run a very good campaign highlighting the and the cases looked into. She talked about the figures scale of the local problem. What progress has been for rape and domestic abuse, but I have to say that the made in tackling these dangerous drugs? volume of domestic abuse referrals from the police rose in 2013-14 to the highest level ever: 70% of those The Minister for Crime Prevention (Lynne Featherstone): referrals were charged, which was the highest volume It is very helpful when the local media join the campaign and proportion ever; there has been a rise in charged against what I term “lethal highs”. As I said earlier, the defendants from 2012-13; and conviction rates have Government are drawing up proposals for a general ban risen since 2010-11. The figures on which she bases her on the supply of new psychoactive substances throughout 1115 Oral Answers23 MARCH 2015 Oral Answers 1116 the United Kingdom, with a view to introducing legislation system to 211,000 now. As the hon. Lady knows, Action at the earliest opportunity. Obviously there is not enough Fraud is also embarking on an improvement plan. It time left for us to legislate in the current Parliament. has resulted in a reduction in the number of complaints, However, we have already banned more than 500 new which should be welcomed, but we are still keen to drugs, created a forensic early warning system to identify ensure that local police forces in particular treat and new psychoactive substances in the UK, and supported correspond with victims in a way that enables them to law enforcement with the latest intelligence on new understand the action that is being taken to deal with substances, and we are taking a number of actions in these crimes. relation to health, prevention and treatment. T6. [908222] Sir Edward Leigh (Gainsborough) (Con): T8. [908224] Kerry McCarthy (Bristol East) (Lab): The Yesterday huge crowds turned out in our most multicultural Minister told me a moment ago that there were more city, Leicester, to celebrate English history. Did not that front-line police officers in Avon and Somerset. celebration of monarchy and continuity provide a fine However, a report by Her Majesty’s inspectorate of example of British values, and should we not learn from constabulary tells me that the number is down by 10%, that example of history that it is not a good idea to get from 2,937 in March 2010 to 2,651 in March 2015. In on politically by bumping off one’s close relations? what way is that “more”? Mrs May: We could have an interesting debate about Mike Penning: I apologise if I misled the hon. Lady, my hon. Friend’s last comment, and I am grateful to but I am sure I said that we were taking staff out of the him for not suggesting that the princes in the tower is an back rooms and putting more on the front line. There historic case that the police should take up today. The are more officers serving on the front line today than point he made about those in Leicester coming together there were when the Labour Government left office. yesterday from all parts of the community and celebrating British values is an important one. It is exactly what I T5. [908221] Sarah Teather (Brent Central) (LD): I was speaking about this morning, when I said that we understand that the Home Secretary has asked officials need a partnership of individuals, communities, families to carry out a detailed piece of work on the future and Government, going across Government and including requirements of the immigration detention estate, in other agencies, to promote our British values and what conjunction with her decision to halt the expansion of it is to live here in the United Kingdom and to be part Campsfield. What is the remit for that work, what is the of our British society. timetable for it, and will it be made public? Will the Home Secretary direct the officials to look at the Paul Blomfield (Sheffield Central) (Lab): The Home international evidence that was presented in our cross-party Secretary will know that one of her former Cabinet report on the immigration detention system, which colleagues and a former chief inspector of prisons were suggests that we could substantially reduce our need for among those of us from all parties and both Houses on detention places? the recent inquiry into immigration detention which recommended that the Government learn from best practice abroad where alternatives to detention not only The Minister for Security and Immigration (James allow individuals to live in the community, but are more Brokenshire): Let me take this opportunity to wish the effective in securing compliance, and at a much lower hon. Lady well for the future, as that was probably the cost to the public purse. Will she respond positively to last Home Office question she will ask before she leaves our recommendations? the House. We will certainly look at the all-party parliamentary James Brokenshire: I have already indicated that we group report, and I intend to write to the hon. Lady are examining the points made in the recent all-party about it before the House rises on Thursday. We are parliamentary group report, but I have to say to the examining the issue of the detention estate internally, hon. Gentleman that there is a need for detention in but our work will be informed by Stephen Shaw’s review terms of managing immigration and ensuring that we of the welfare aspects. It is important to ensure that we can remove people safely and appropriately. It is also are providing a humane environment for people who worth underlining that we cannot detain people indefinitely. are being detained. This is about the perspective of ensuring that there is the ability to remove, and that is the way in which the Julie Hilling (Bolton West) (Lab): Crime rose by 6% Government operate the rules. in Greater Manchester last year. Will the Minister update us on her improvement plan with Action Fraud, and T9. [908225] Miss Anne McIntosh (Thirsk and Malton) can she assure me that the defrauding of my constituents (Con): Does the Home Secretary agree that until such will be investigated and they will be kept up to date with time as front-line resources and targets are set for rural the progress of that investigation? crime, these crimes will not be taken seriously in rural constituencies? Will she give an edict from the Dispatch The Parliamentary Under-Secretary of State for the Box today that Travellers who are on rural land Home Department (Karen Bradley): The hon. Lady and illegally will be removed forthwith? I have had several discussions about Action Fraud. Let me bring her up to date with the latest figures from the Mike Penning: The police already have powers. As I organisation. As we have established in earlier discussions, indicated to my hon. Friend the Member for Harlow fraud is historically an under-reported crime. The number (Robert Halfon) earlier, the police often have the powers of recorded offences has almost trebled, from 72,000 before in respect of illegal Traveller sites. Crime in rural areas the introduction of Action Fraud’s centralised reporting is a very serious issue and we should all take it seriously. 1117 Oral Answers23 MARCH 2015 Oral Answers 1118

While crime is down 16% in the part of the world of my extremism as well as violent extremism, but we also said hon. Friend the Member for Thirsk and Malton (Miss that the part of the Prevent programme that was about McIntosh), any crime is bad. the integration of communities came better under the Department for Communities and Local Government Barry Gardiner (Brent North) (Lab): Yesterday I than under the Home Office, because people were looking spoke to community leaders at one of my mosques at this as people effectively spying on them rather than a about the young men who had been educated at schools in Brent North and who have now been returned from proper integration of communities. What we are doing Syria. They expressed to me their deep concern about now is standing back and recognising that we need to the lack of community facilities for some of the community deal with extremism across a broader spectrum, because groups and the way in which this was tending to lead to Prevent has always been cast in terms of counter-terrorism. radicalisation of the young men. Does the Home Secretary That is why in my speech today I talked about the regret the cuts to the Prevent programme? broader partnership with Government, other agencies, communities, families and individuals to deal with Mrs May: The changes we made to the Prevent extremism and give a very clear message to the extremists programme are very simple. We did two things when we that they will not divide us. came into office: we said Prevent should look at non-violent 1119 23 MARCH 2015 1120

Speaker’s Statement European Council

3.33 pm 3.35 pm Mr Speaker: I have a short statement to make. Under The Prime Minister (Mr David Cameron): I know that the chairmanship of the right hon. Member for Blackburn the whole House will join me in welcoming David (Mr Straw), the Select Committee on the Governance of Natzler as the new Clerk of the House. Mr Speaker, you the House of Commons recommended, and the House went to the ends of the earth in search of the best agreed on 22 January, that the roles of Clerk of the candidate, but I am glad that we found the right answer House and Chief Executive should henceforth be split. right here in Britain. It invited the House of Commons Commission to make Before turning to the main focus of the Council, arrangements to select a new Clerk and thereafter to which was the situation in the eurozone, let me say a begin to recruit for a separate role of Director General word about the discussions on Tunisia and Libya, on of the House of Commons. Accordingly, a trawl for the the situation in Ukraine and on the nuclear talks with vacant post of Clerk of the House of Commons was Iran. I am sure the whole House will join me in sending held. Four applicants were interviewed by a panel chaired our deepest condolences to the friends and family of by me and also including the Leader of the House, the Sally Adey, a British holidaymaker who was among at shadow Leader of the House, the Chairman of the least 20 tourists and two Tunisians brutally murdered in Finance and Services Committee and Liz McMeikan, the terrorist attack at the Bardo museum last week. I an independent assessor. The unanimous recommendation have written to President Essebsi to assure him that of the panel was that Mr David Natzler, at present Britain will stand with the people of Tunisia as they acting Clerk of the House, should be recommended for seek to defeat the terrorists and build a peaceful and appointment. I am glad to be able to tell the House that prosperous future. The EU has agreed to offer practical Her Majesty the Queen has approved the appointment. assistance, and Britain will play its part, deploying I am sure that the House will join me in warmly SO15 and military counter-terrorism experts and continuing congratulating David. to provide assistance in aviation security and tourist I have further to report to the House that the deadline resort protection. for applications for the separate position of Director The suggestion that some of the terrorists involved General of the House of Commons has passed and that had been trained in Libya is the latest evidence of the the selection process is under way. In keeping with the very difficult situation in that country. The Council recommendation of the Straw Committee, it is expected agreed on the need for a political solution, supporting that this recruitment process will be completed very UN-led efforts to bring the different parties in Libya early in the next Parliament. together to agree a national unity Government. Britain has provided Libya with aid and military training, and we will continue to do all that we can to assist. I know that some people are looking at this situation and asking whether Britain, France and America were right to act to stop Colonel Gaddafi when we did. We should be clear that the answer is yes. Gaddafi was on the brink of massacring his own people in Benghazi, and we prevented what would have been a wide-scale, brutal, murderous assault. It was the right thing to do, and we should be very proud of the British servicemen and women who carried out that vital task. Turning to the situation in eastern Ukraine, the Council welcomed the significant reduction in fighting and the progress on the withdrawal of heavy weapons. But as President Obama, President Hollande, Chancellor Merkel and I agreed earlier this month, it is essential to send a clear signal that sanctions will not be eased until Russia delivers on its promises and the Minsk agreements are fully implemented. The European Council did exactly that. The conclusions say that “the duration of the restrictive measures...should be clearly linked to the complete implementation of the Minsk Agreements.” The conclusions also underline our readiness to take further measures if required. One of the best things we can do to help Russia’s neighbours is to help them to fight corruption and strengthen their democracies. Just as the Know-How fund, set up by Margaret Thatcher, did a great job of helping eastern European countries after the fall of the Berlin wall, so we need the same approach today. At the Council, I announced a good governance fund with an initial £20 million to support reforms in countries in the eastern neighbourhood and the western Balkans. This will complement support from other donors, accelerating 1121 European Council23 MARCH 2015 European Council 1122 efforts to fight corruption, strengthening the rule of we have worked together with our European partners to law, reforming the police and justice systems and supporting get things done and keep our people safe, on matters free markets by liberalising key sectors such as energy ranging from sanctions on Russia and Iran, and practical and banking. The fund will be up and running by the assistance to help countries in north Africa fight terrorism, summer. As well as covering Ukraine, it will initially to international action to help those in desperate need cover Georgia, Moldova, Serbia, and Bosnia and around the world, including in west Africa, where British Herzegovina. aid workers are risking their lives, helping to stop the Turning to Iran, I met Chancellor Merkel and President spread of Ebola. Hollande in the margins of the Council to discuss In the coming two years, we have the opportunity to progress in the vital talks on Iran’s nuclear programme. reform the EU and fundamentally change Britain’s We are absolutely clear and united in our purpose. Iran relationship with it. We have the opportunity to build a must never be allowed to develop a nuclear weapon. But European Union that is more competitive, more flexible there is a peaceful path to civil nuclear energy, and we and more accountable to the people, where powers flow believe that a comprehensive, durable and verifiable back to member states, not just away from them, and deal is possible, but only if Iran shows greater flexibility where freedom of movement is no longer an unqualified and takes some tough decisions during the talks this right. And for the first time in 40 years, we have the week. We also discussed proposals for co-ordinating opportunity to give the British people their say on Europe’s energy policy, ensuring transparency of gas Britain’s place in Europe with an in-out referendum. If supply agreements and that Europe’s energy policies are I am Prime Minister, that is what I will do. Those who consistent with reaching the vital deal at the climate would refuse to give the British people their say should change summit in Paris this December. explain themselves to this House and to the country. Turning to the eurozone, the Council welcomed the I commend this statement to the House. agreement between Greece and the euro area to extend their programme. Let me say again—this is the last of 3.43 pm these statements in this Parliament and I have probably Edward Miliband (Doncaster North) (Lab): May I uttered this sentence 11 times: Britain is not in the thank the Prime Minister for his statement? He is eurozone and we are not going to join the eurozone. But obviously getting in his preparations for opposition we do need the eurozone to work properly. A disorderly now. Let me also join him in congratulating David Greek exit from the euro remains a major threat to Natzler on his appointment, which is a very well-deserved Europe’s economic stability and it could be very damaging appointment. to the British economy. Protecting our economy from I also wish to join the Prime Minister in condemning these wider risks in the eurozone means sticking to this the appalling terrorist attack in Tunisia last week. Our Government’s long-term economic plan. Five years ago, thoughts go out to the family and friends of Sally Adey Britain’s economy was close to the edge. We had the and all the victims who were involved in the attacks. biggest budget deficit in our peacetime history. We had This despicable act of terrorism once again reinforces a deficit that was forecast to be bigger than that of our determination to stand united across Europe. Greece or of any other developed country on the planet. Five years on, the deficit has been halved and our Before turning to other matters, I also want to note national debt is falling as a share of GDP; we have the that since the last European Council we have had the fastest growth of any major western economy; we have Israeli elections, although they do not appear to have 1.89 million more people in work; and we have more been discussed at the European Council. Let me say jobs created in Yorkshire than in the whole of France, that there is now one overriding priority, which is restarting and more jobs created in the UK than in the rest of the negotiations towards a two-state solution: a secure Israel European Union put together. We need to stay on this alongside a viable Palestinian state. Can the Prime path, not abandon it just as it is leading our country to Minister, when he replies, say whether he agrees that we prosperity. must put pressure on both sides now to restart negotiations? Just as we are acting in our national interest at home, In the light of Prime Minister Netanyahu’s comments so we have acted to protect our national interest in in the run-up to the election, has our Prime Minister Europe, too: we have cut the EU budget for the first sought reassurances about his continuing commitment time in its history; we got Britain out of the euro to a two-state solution? bail-out schemes; we vetoed a treaty that was not in our On Iran, we support the talks. We cannot allow an national interest; we stopped attempts to discriminate Iran with nuclear weapons. It is vital that we secure a against EU countries outside the eurozone, not least successful outcome and we will support the EU in with our successful legal challenge last month; we have seeking to bring that about. Let me also echo the Prime made vital progress on cutting red tape and completing Minister’s words on Libya. We supported the military the single market; at our G8 in Lough Erne, we kick-started action—it was the right thing to do—and we support the talks on what will be the biggest bilateral trade deal the call for an immediate and unconditional ceasefire. in history, between the EU and the US; we have put However, the Prime Minister needs to tell the country power back in the hands of our fishermen so they can why things have gone so wrong in Libya. Are people not sell what they catch; we have negotiated a new single entitled to conclude that the international community European patent that will reduce cost for entrepreneurs, did not adequately plan for the aftermath of the conflict, and part of that patent court will be based right here in and what does he realistically believe can be done now? London; we have ensured new safeguards to protect our On Greece, rather than recycling his failing election vital financial services industry; we have returned over slogans, can the Prime Minister tell us what the prospects 100 powers from Brussels to Britain, giving us more are for a long-term agreement with Greece? That agreement control over our borders, policing and security; we have is in the interests of Greece, the eurozone, and the clamped down on benefit tourism; and in foreign policy, United Kingdom. 1123 European Council23 MARCH 2015 European Council 1124

[Edward Miliband] I thought that Government Members wanted to talk about Europe—not any more. He cannot tell us what he Turning to the situation in Ukraine, it is vital that the is negotiating for. He has no strategy for achieving international community stands united in ensuring that change and he cannot even tell us whether he will vote the Minsk agreement is implemented in full. We welcome yes or no in a referendum. A Prime Minister who the commitment, which the Prime Minister reiterated, cannot tell us whether he wants to be in Europe or out that EU sanctions on Russia should be eased only in the of Europe is a weak Prime Minister. He cannot provide event of the full implementation of that agreement. the leadership that our country needs. For that, Britain Given that the current situation on the ground is not needs a Labour Government. showing signs of getting better, will the Prime Minister tell us whether discussions took place during the summit The Prime Minister: I had not been counting, but I about increasing further the pressure on Russia, particularly think that reporting back to the House 29 times is quite on the so-called tier 3 sanctions on specific sectors? an impressive record—too many.The right hon. Gentleman It is clear that the security dimension of the EU is does have one thing in common with Tom Cruise: every becoming more and more important. That has been policy he touches self-destructs in five seconds—tuition particularly apparent over the past year. It demands fees, spending, the deficit, taxes; it is all the same. common action, resolve and a clear commitment to our Let me deal with the right hon. Gentleman’s questions. continuing place in the European Union—a commitment On the very important matter of the Israeli elections, I that the Prime Minister is incapable of delivering. As am sure that we will all want to congratulate Prime this is his 29th and last European statement, I had Minister Netanyahu on his election victory. I agree with hoped that he might do what he has failed to do in the the Leader of the Opposition that we must put pressure past 28 and spell out his negotiating strategy. All we had on both sides to ensure that talks on a two-state solution was the same empty rhetoric. Perhaps he can now get going. I will be talking with Prime Minister Netanyahu specifically tell us what the non-negotiable reforms are this evening, and I will make it very clear that I support that he is seeking in Europe. Is he seeking treaty change? a two-state solution. I think that is in the long-term Would he countenance voting for “out”in a referendum— interests of not only the Palestinians, but the Israelis, [Interruption] Oh, the Minister for Europe says no and Britain’s policy on that will not change. from a sedentary position; he would not countenance I thank the right hon. Gentleman for what he said in supporting “out”. Perhaps, when the Prime Minister support of the Government’s position on Iran and on replies, he can confirm that the Minister for Europe said Libya. He asked why we have seen the difficulties after from a sedentary position that, under no circumstances, the fall of Gaddafi. One of the things that we have to be would he countenance an out vote in a referendum—the clear about is that the Libyan people and the Libyan Minister knows that the national interest lies in staying Government did not want some occupying force; they in. Those are the questions to which the country deserves did not want to be remotely controlled by others. They answers. were given opportunities to opt for a more unified Was the Prime Minister disappointed last week when future, but so far they have not taken them, so we have the President of the European Council, who is supposedly to do everything we can to keep putting those options an ally of Britain, described his position as “mission on the table, not least through a national unity Government. impossible”? With the typical modesty that we have The right hon. Gentleman asked about Greece and come to expect from the Prime Minister, he then compared the prospects for a long-term agreement. I still think himself to Tom Cruise. [Interruption.] I am coming to that the prospects are quite worrying, because on one that; he will enjoy it. To be fair, he did admit to one hand we have the creditor nations that want to see crucial difference. He said, “He’s a little bit smaller than Greece fulfil its programme, and on the other hand we me.” I have to say to the Prime Minister that I am not have a Greek Government who do not seem at the sure that that is the main difference that comes to mind. moment to be coming up with reforms that give their One has a consistent and relatively coherent approach creditors confidence. One of the lessons that needs to be to international affairs and the other is the Prime Minister learned—the right hon. Gentleman needs to learn this—is of Britain. that government involves difficult decisions, and the The Prime Minister mentioned his achievements. Let Greeks still have to make difficult decisions. [Interruption.] us remind ourselves of them. He talked about his veto Yes, he was in government. I remember, because he of the treaty, but the treaty went ahead. He did not completely crashed the economy, as a member of the mention the stand he took against President Juncker; he Government who left this country in hopeless amounts lost that 26 votes to two. He did not mention either the of debt. £1.7 billion bill from Brussels. His attitude to that was: can’t pay, won’t pay, oh, all right, we will pay. But let me The right hon. Gentleman asked a very specific question relay my personal favourite over the past five years. on the Minsk agreement: will there be more sanctions if Who can forget his phrase that in this town, you need to there is more destabilisation? The answer is yes. We should be prepared to consider more sanctions if the “lock and load and have one up the spout.” situation deteriorates. The key point about the Minsk Up the spout is exactly where his European policy agreement is that the difficult decisions for Russia will is—not so much Tom Cruise, more David Brent. He come at the end of the process, which is why it is so cannot tell us what he is negotiating for— important to keep the sanctions right to the end. The Prime Minister rose— The right hon. Gentleman wants to know why we want to renegotiate in Europe, and I will tell him why: Edward Miliband: No, I have not quite finished. The we want to get out of ever-closer union; we do not want Prime Minister cannot tell us what he is negotiating for; that to apply to Britain; we want control of our welfare he has no strategy for achieving change—[Interruption.] system; we want safeguards for the single market; we 1125 European Council23 MARCH 2015 European Council 1126 want powers to flow back to Britain. Let me ask him The Prime Minister: First, just in case it is the last this: if those are the things that we want, what is it that time I look at the right hon. Gentleman across the he wants? The answer, when it comes to Europe, is Floor of the House of Commons and he does not catch absolutely nothing. He told us that he does not think the Speaker’s eye at the last Prime Minister’s questions that Brussels has too much power. He refuses to rule on Wednesday, may I pay tribute to him for all the work out joining the euro because, as he said, “It depends that he has done in government and in opposition, how long I’m Prime Minister for”, so that is a hopeful including in some very senior roles at some very difficult message. He has made it clear that he will never give the times for this country? The one pledge I make him is British people a say in a referendum. that if he continues to live where he does, his constituency Frankly, I will compare my record on Europe with his MP will always stand up for him in this House of party’s every day of the week. They gave away £7 billion Commons and make sure that he receives a premium of the rebate; we have protected the rebate. They gave service. away our ability to veto what is not in our national The two points that the right hon. Gentleman makes interest; we vetoed a treaty that was not in our national about Israel are right and they are points that I will be interest. They signed Britain up to being in the euro happy to make. They are linked: if there is no two-state bail-out fund; we got Britain out of the euro bail-out solution, the situation ends up moving towards a one-state fund. The truth is that we on the Government side of solution, which I think will be disastrous for the Jewish the House stand up for Britain in Europe and the people in Israel, so I really do believe in the two-state Labour party just sells us out. solution. We are very much opposed to the settlement building that has taken place. We have been very clear Sir William Cash (Stone) (Con): I commend my right about that and will continue to be clear about that. It hon. Friend for what he has just said, and for stating makes a two-state solution more difficult and that, in unequivocally in his Bloomberg speech that it is our turn, will make Israel less stable, rather than more national Parliament that is the root of our democracy, stable. for which people fought and died, but in what specific respects will he repatriate the powers of the British Sir Richard Ottaway (Croydon South) (Con): In his people to govern themselves and return the powers of Bloomberg speech the Prime Minister set out five core sovereignty to this Parliament so that we can govern principles for a 21st-century EU. If he has had a chance this country as we wish? to look at the current European Commission work programme, he will have seen that, contrary to what the The Prime Minister: My hon. Friend makes an important Leader of the Opposition has just said, there has now point. We have already returned a power to Britain by been significant movement towards these principles, getting out of the bail-out fund. We have returned particularly on migration and the single market. Does 100 specific powers as a result of the opt-out on justice my right hon. Friend agree that we do not have to and home affairs. I have been very specific that when it demand a renegotiation before a referendum? Europe is comes to the free movement of people, and particularly already offering us one. its interaction with our welfare system, we need powers to be returned to this country. Specifically, I have said that people coming from European Union countries to The Prime Minister: My right hon. Friend is right. It Britain should not be allowed to claim unemployment is because we have been clear about the things that need benefit, that they should have to leave after six months to change that the European Commission is already if they do not have a job, that they should have to pay in looking at the sorts of changes that could be made. This for four years before getting anything out of the tax is an organisation that responds not simply to pressure, credits system and that they should not be able to send but to political realities, so we have to make sure that child benefit or other child tax payments to families the political reality after the next election is someone back home. Those things require serious change in walking into the Berlaymont building or the European Europe, including treaty change, and that is what we Council building and demanding change, rather than will secure, and what a contrast with the Labour party, someone wandering in and just saying, “Relax—there’s which will do absolutely zip. nothing you need to do. We don’t have to have a referendum. We don’t need a renegotiation. One day Mr Jack Straw (Blackburn) (Ind): May I add my own we’ll join the single currency.”All the pressure would be congratulations to Mr Natzler as Clerk, and say how off and, yes, some in Brussels would breathe a sigh of pleased I am personally that the cross-party process of relief, because it would be business as usual with Labour the Governance Committee has led to one of many and probably the Scottish National party too. important decisions that have been made following it? When the Prime Minister speaks to Mr Netanyahu Mr Peter Hain (Neath) (Lab): I endorse the Prime this evening, will he underline two things—first, that in Minister’s welcome to our excellent new chief Clerk. I respect of the negotiations with Iran, a deal which is also welcome the fact, Mr Speaker, that you are proceeding acceptable and honourable on both sides is more likely speedily to the appointment of the post that will carry to help guarantee Israel’s security, as well as that of out the chief executive duties, the director general. That others, than no deal at all? Secondly, will he emphasise is very important. to Mr Netanyahu that what his party and Government On Greece, may I suggest to the Prime Minister that have been involved in is trying to change the reality on simply repeating the same dose of austerity on the the ground through settlement building, so that if it Greek people and their Government will not achieve goes on, it will be impossible for there to be a separate the objective any more than the last dose did? National state of Palestine, and that if he carries on like this, the debt went up in Greece as a result of the austerity patience of this House and of Europe will run out? programme. Of course, the Greek Government have to 1127 European Council23 MARCH 2015 European Council 1128

[Mr Peter Hain] “Public services are always exempted—there is no problem about exemption. The argument is abused in your country for reform to collect their taxes and to get rid of corruption, political reasons but it has no grounds.” and the Government have volunteered to do that, but The point I would make, though, is that it is local NHS going down the same austerity road is not going to commissioners who make decisions about who delivers revive the Greek economy or enable it to repay its debts. services. One of the things that is being done with TTIP Those must be rescheduled and the reforms around that is that people or countries who want to raise concerns, must ensure that Greece is capable of repaying its debts, like over the investor protection mechanisms, are asking not being strangled with austerity. for more things to be put in the treaty, which in the end we will have to pay a price for; and if they are not The Prime Minister: I do not entirely disagree with necessary and there is not a problem, why are we the right hon. Gentleman. The problem is, though, that creating one? With the investor protection mechanisms, the people who have lent the money to Greece want the country that was raising this problem was Austria, their money back, and they believe that Greece should which has 60 of these agreements and has never, ever carry out a series of reforms before they give it any lost a case. Of course let us have the robust negotiation more money. He or I can take a different view and argue and seek any safeguards we might need, but let us not as I would, although he would not, that Greece should raise problems that do not really exist. never have joined the eurozone in the first place. That is not the right hon. Gentleman’s view because he is a Mr James Clappison (Hertsmere) (Con): Is my right fanatic about the eurozone. None the less, as we have hon. Friend aware that in contradistinction to the views not lent money to Greece, we are not in that position. If expressed by the Leader of the Opposition, there are he had been at the European Council he would have millions of ordinary voters in this country who want heard, whether from the Germans, the Dutch and the their say on whether Britain should remain part of the Scandinavian countries, or from the Spanish, the Portuguese European Union—a say that is long overdue? Is it not and the Irish, who have all been through these painful absolutely crystal clear that they will get that say only if processes, that there is very little appetite to cut Greece my right hon. Friend continues to occupy Downing a lot of slack. street after the election and is in a position to deliver on that promise? Martin Horwood (Cheltenham) (LD): On behalf of the Liberal Democrats, I echo the Prime Minister’s The Prime Minister: I think there are millions of congratulations to Mr Natzler. I welcome the Prime people in our country who want to have that say. We Minister’s remarks on Tunisia and Libya, where we have not had a referendum since 1975. We cannot must all still hope that the promise of the Arab awakening remain in these organisations without the full-hearted will be fulfilled and sympathise about the fact that consent of the British people behind us. So it is time to uniting the Tory party on Europe really is “mission have the referendum, but let us have it on the basis of a impossible”? On the Transatlantic Trade and Investment renegotiation. My hon. Friend is absolutely right: there Partnership, does he agree that the UK should never is only one way to get that referendum, and that is to ratify a treaty that would undermine the NHS? make sure that there is a Conservative majority and a Conservative Prime Minister after the next election.

The Prime Minister: Of course. But I do believe that Keith Vaz (Leicester East) (Lab): The crisis in Libya is all of us in this House who support free trade and want having catastrophic consequences. Prime Minister Matteo to see Britain as a success story in international markets Renzi has said that of the 170,000 people who entered should really get behind TTIP rather than listening to Italy illegally last year, 92% did so from Libya, and the some non-governmental organisations that are raising figures for this year show a 64% increase. Does the entirely false fears about it. There is no way that TTIP Prime Minister agree that it is not enough to give more can in any way undermine our NHS. Our NHS is resources to Frontex—we also have to deal with the determined by the policies we pass here in this House. source countries to help them stop migrants putting One of the things that was so striking about the European their lives at risk or being profited from by traffickers? Council was countries worrying about the so-called investor protection mechanisms, even though Britain The Prime Minister: The right hon. Gentleman is has 94 of these things and we have never lost a case. absolutely right. We will not solve the problem simply There is an awful lot of scaremongering about TTIP. by more sea patrols—nor, indeed, by returning to the Any of us who want to see a successful British economy Mare Nostrum policy, which sounded humanitarianly should get behind what could be a real jobs boost for sound, but deaths at sea during the period of its operation our country. increased fourfold. So there is no alternative to trying to stabilise these countries and deal with the problem at Ms Gisela Stuart (Birmingham, Edgbaston) (Lab): If source. We are able to use our aid and other budgets, the Prime Minister is so certain that TTIP will not with European partners, to do that, and we should undermine the NHS, does he have assurances in the certainly do so. treaty that specifically mention the NHS and therefore make it absolutely clear that what some of us fear might Mr Peter Bone (Wellingborough) (Con): A few weeks happen will not happen? ago I went to No. 10, along with my hon. Friend the Member for Kettering (Mr Hollobone) and Tom Pursglove, The Prime Minister: There is this very powerful quote, the excellent Eurosceptic Conservative candidate for which I think I have read out in the House of Commons Corby, to deliver the results of the north Northamptonshire before, where the previous Trade Commissioner said: referendum, in which 81% of the people of north 1129 European Council23 MARCH 2015 European Council 1130

Northamptonshire voted to come out of the EU. —I was sitting somewhere on the Opposition Benches—and Unfortunately, when we knocked, the Prime Minister saying with respect to the European constitution, “Let was not in, but he kindly wrote to me stating, rather battle be joined,” and making a great pledge. He could importantly, that, if it was at all possible, he would be have held a referendum, but he did not. That is one of delighted to bring forward the EU referendum. I think the things that has poisoned the well in this country and there is a misunderstanding that it has to be held at the that makes a referendum even more important today. end of 2017, so will the Prime Minister confirm that it could take place earlier? Mr Frank Roy (Motherwell and Wishaw) (Lab): During discussions on the middle east with his European The Prime Minister: First, may I apologise for not counterparts, did the Prime Minister explain why the being in? It is not that I have an adverse reaction when I United Kingdom has allowed only 140 refugees from see the men in grey suits approaching Downing street, Syria to come into this country? but I obviously was not there on the right day and I am very sorry about that. What I have said is that the The Prime Minister: We have spent about £800 million referendum must take place by the end of 2017, but if helping refugees in Syria, which makes us the second it is possible to complete the renegotiation and hold it largest bilateral donor to the programme. We have earlier, no one would be more delighted than me. I think taken 140 people under the vulnerable persons relocation it would be—[Interruption.] The Leader of the Opposition scheme, and it is right that we have done that, but we complains from a sedentary position, but there would have to be frank with ourselves and with the public. In a be no referendum or choice with Labour. They would refugee crisis of this scale, which runs into millions of literally just turn up in Brussels and say, “Tell me how people, the idea that even a small part of the solution much to spend. Where do I sign? No renegotiation or is for our country to take in hundreds or thousands is referendum.” It is absolutely clear that there is only one completely wrong. way to give the British people a choice, and that is to make sure I am at this Dispatch Box after the next Neil Carmichael (Stroud) (Con): Does the Prime election. Minister agree that inward investment from the European Union, including Sartorius Stedim investing in my Kate Hoey (Vauxhall) (Lab): Does the Prime Minister constituency, is a sign that Europeans believe in a accept that thousands of small and medium-sized businesses reformed European Union and that we have a large and companies throughout the United Kingdom would number of allies in Europe who want to reform the EU love, and are desperate to see, a different relationship in a constructive way, ready for a referendum? with the European Union? Does he accept that promising a referendum is a better way of getting that ultimate The Prime Minister: My hon. Friend makes the important change? point that Britain is a magnet for inward investment. In fact, we are getting 50% more inward investment than The Prime Minister: I agree with the hon. Lady and either France or Germany, the next two biggest recipients wish she could talk some sense into her Front-Bench of such investment. The interesting point is that, since I colleagues. She is absolutely right. By holding a made my Bloomberg speech and that referendum —[Interruption.] The Leader of the Opposition says commitment, there has been no sign of change in the that the hon. Lady does not agree with me, but she just inward investment from countries in the rest of the stood up and made the case for a referendum rather world coming into the United Kingdom, because they better than I did. I will take careful note of what she know that it is right to hold that renegotiation and that said. The point is that, by having this pledge and referendum. renegotiation, we can get things done for businesses large and small. Mike Gapes (Ilford South) (Lab/Co-op): We can all wish for a political solution and a national unity Sir Edward Leigh (Gainsborough) (Con): We are all Government in Libya, but the reality is that it is not being a bit unfair on the Labour party. After all, 40 happening and an al-Qaeda or ISIL-linked state is years ago it was the Labour party that gave us a being established on parts of the coast, which is a referendum and, to be fair to the Liberals, they promised serious threat to our country and the rest of Europe. one in the last Parliament, although I do not understand What are we going to do about the situation in Libya, why they have gone wobbly on trusting the people. rather than just wishing for a change? Perhaps it is because the people may give the wrong answer. Is not the answer to the Leader of the Opposition The Prime Minister: It is not a question of simply that every single person in this country, no matter how wishing for a change; we are working with our allies to important they are—whether they are the Prime Minister, help to bring one about. The aim so far has been to the Deputy Prime Minister or the Leader of the produce a national unity Government by bringing together Opposition—gets one vote? Will my right hon. Friend the different parties that there are in Libya. We have not therefore give a categorical assurance that any Government taken the approach that some in the region have taken of which he is Prime Minister will deliver this choice to of trying to pick sides and creating conflict between the the British people? various parties. I accept, however, that as we see the growth of ISIL in Libya, we are going to have to The Prime Minister: I have been absolutely clear: I challenge all those who could take part in a national will not be Prime Minister in a Government that do not unity Government to oppose ISIL and any formation it hold a referendum. I could not be more clear about it. is able to achieve in Libya. That will be an important My hon. Friend makes an important point. I remember part of the stability that we seek not just for the sake of Tony Blair standing at this Dispatch Box as Prime Minister the Libyan people, but for that of our own. 1131 European Council23 MARCH 2015 European Council 1132

Mr Andrew Robathan (South Leicestershire) (Con): The Prime Minister: I would say to my hon. Friend, In my last week as a Member of Parliament, may I who I know cares passionately about this issue, as I do, commend my right hon. Friend not just for his statement, that we are one of the few countries in Europe to meet but for his work over the past five years in re-establishing 2%. We have met it through this Parliament, and we are the United Kingdom as a serious and respected player meeting it this year and next year. He has very specific in international affairs? guarantees about a full replacement for Trident, a Turning specifically to the good governance fund £160 billion equipment programme that will go up in that he mentioned with regard to Ukraine and eastern real terms each year and no further reductions in regular Europe, will the Prime Minister look at the money that personnel in our armed forces. I think those are bankable has been transferred to this country, particularly from assurances, which will resonate on the doorsteps as he Russia? Oligarchs and others seem to have thought that goes house to house. here and western Europe were good places to put their money, most of which was looted from the good people Kelvin Hopkins (Luton North) (Lab): Even at this of Russia. Part of the reason why there is a problem in late stage, I think that the Prime Minister might thank Russia is that money has been taken out of Russia and my right hon. Friend the Member for Kirkcaldy and placed here. Cowdenbeath (Mr Brown) for keeping us out of the euro. As he knows, the euro has been sinking like a stone in recent weeks and there are terrible stresses The Prime Minister: First, may I thank my right hon. inside the eurozone, arising from the rigidities of the Friend for the valuable work that he has done for his euro. Is not the only serious solution to dissolve the constituents in this House, but also as part of the euro and recreate national currencies? Is he not in a Government both in Northern Ireland and at the Ministry strong position to say that? of Defence? He has played an absolutely crucial role, and he will be missed. The Prime Minister: I believe strongly in maintaining On the issue of Russian money, we have some of the our national currency, but it is not a realistic option to toughest controls anywhere in the world in terms of tell all other countries in Europe which currency they money laundering and other such issues. I would make should use. Many of them are hugely enthusiastic about the point that Britain has very much been in the vanguard the euro. However misguided I feel that is, arguing that of arguing for sanctions on Russia and Russian individuals, they should all break up their currency is not a viable even though it could be argued that this might in some option. Obviously, being in the euro and not being able way disadvantage investment coming into the United to devalue have damaged Greece’s ability to respond to Kingdom. We have put the interests of Europe and the the problems, but we cannot lay all the problems with interests of the Ukrainian people first. the Greek economy at the door of the euro. Greece has a long history of not making structural reforms, having Mr Barry Sheerman (Huddersfield) (Lab/Co-op): Is ludicrously early retirement ages—[Interruption.]—having the Prime Minister aware that many of us on the problems with its working practices and all the rest of Labour Benches who are pro-European want what our it. The hon. Member for Bolsover (Mr Skinner) asks allies want, which is a strong Britain in a strong Europe? what is wrong with ludicrously early retirement ages. He Yes, we want a reformed Europe—all of us are in favour has enjoyed making such comments from a sedentary of reform in Europe—but we are not in favour of position for many, many years and I am sure that he will weakness and vacillation, which manufacturers and do so for many years to come. There is a slight irony exporters in my constituency say will damage this country there. over the next three years while we wait for a referendum. Robert Halfon (Harlow) (Con): Did my right hon. Friend have any discussions at the European Council The Prime Minister: The hon. Gentleman says that he about the jobs miracle in this country, in that there are is in favour of reform, but I have not heard one single more people employed here than at any time in our proposal from the Labour party about anything it wants islands’ history? Did he ask members of the European to reform. He is presumably standing on his leader’s Council to come and see that miracle at first hand in ticket, but I do not know whether he has his picture on Harlow, where unemployment has halved, youth his leaflets. When I met my Labour opponent in Chipping unemployment is down by nearly 60% and apprenticeships Norton market square this week, I had a look at his are up by 116%? leaflet, and there was not a dicky-bird when it came to the Leader of the Opposition. It could have been from a The Prime Minister: I am grateful to my hon. Friend totally different party. There are plenty of pictures of for his question. We discussed the employment situation me. The Leader of the Opposition has said: across Europe and I was able to give a very strong “I don’t think Brussels has got too much power”. report on what is happening in Britain: the 1,000 jobs that are being created every day and the plummeting That is the official position of the Labour party: it is levels of unemployment and youth unemployment. I not for reform, but for the status quo. said that that is evidence of the combination of long-term structural changes and economic recovery. There are Dr Julian Lewis (New Forest East) (Con): As the only European countries with very high structural rates of major party leader to trust the British people with an unemployment that need to take action to deal with in/out referendum on EU membership, my right hon. that. Friend has certainly reassured the patriotic British electorate. Will he now go the whole way by reassuring them that Pete Wishart (Perth and North Perthshire) (SNP): throughout the next Parliament, when he is Prime Minister, My party heartily congratulates David Natzler on his Britain will not fall below the NATO recommended appointment. There could be no one more suitable and minimum of 2% of GDP on defence? appropriate for this role in the House of Commons. 1133 European Council23 MARCH 2015 European Council 1134

On the Tory European referendum, what will happen that it will not apply, because by opening up the NHS to if the UK votes to leave the European Union, but market tendering and market forces in the way he did Scotland votes to remain within it? Should the Scottish with the Health and Social Care Act 2012, he has people just put up with being yanked out of Europe opened the door to treaties such as TTIP applying to against their will? Would it not be better if all the the national health service. That is the problem he needs siblings in the Prime Minister’s family of nations agreed to protect the NHS against. individually before they were taken out of Europe? The Prime Minister: I am baffled by Labour’s position The Prime Minister: What I want to know is, where on this as I thought it was a party that believed in free are the rest of the Scot nats? They are preparing for trade and backing Britain’s exporters. There are so power and writing Labour’s Budget. They are obviously many areas where we are disadvantaged in our trade very busy. What I would say about referendums is that with America and where we could be creating jobs and the hon. Gentleman lost the first one and he will lose growth, but instead Labour Members want to read out the next one. a script handed to them by the trade unions to oppose the trade deal. It makes you weep for the time when the Chris Heaton-Harris (Daventry) (Con): You will have Labour party was in favour of progress and trade. noticed, Mr Speaker, that my hon. Friend the Member for Wellingborough (Mr Bone) no longer talks about Michael Ellis (Northampton North) (Con): At the his wife, but about the excellent Conservative parliamentary Council did anyone raise the treatment of journalists? candidate in Corby, Thomas Pursglove. I believe that Does my right hon. Friend agree that the witch hunt that is because Mrs Bone is going to become a councillor that has seen several journalists from The Sun,for in my constituency and so has been talking to me. She example, put through three years of hell and cases that regrets the fact that the Liberal Democrats have not juries keep throwing out is un-British, in that the Crown allowed the Government to negotiate formally on a Prosecution Service is seeking to neuter the abilities of renegotiation in Europe, but she wonders whether the journalists to obtain information in the public interest? Prime Minister has taken advantage of his meetings on Should there be a rethink of CPS policies for similar the sidelines of the European Council to talk about our prosecutions, because that reflects across the whole of renegotiation with our European partners. Europe?

The Prime Minister: I must say, I did not know that The Prime Minister: That issue was not raised with those sorts of things happened in Northamptonshire. me or at the press conference. Obviously, the CPS is They are obviously very exciting events. I congratulate independent in our country, as it should be, but my hon. Mrs Bone on trying to become a councillor. I am sure Friend is right to say that justice delayed is justice that she will make a great contribution, as she did to the denied and these things should always be resolved as film about this place. Of course I have had discussions speedily as possible. with our European partners about what Britain wants Nia Griffith (Llanelli) (Lab): Many jobs in my to see renegotiated and I will continue to do so. constituency depend on continued investment by leading manufacturing companies that also have companies on Valerie Vaz (Walsall South) (Lab): The Prime Minister mainland Europe. Labour Members can say that a is keen to extol the virtues of a referendum and the Labour Government would give them a categorical benefits of Europe, so will he say whether he would lead reassurance that the UK will remain in the EU. What the yes camp or the no camp? would the Prime Minister say to those companies if his shilly-shallying over Europe about some sort of referendum The Prime Minister: I have been absolutely clear: I were to drive them to invest elsewhere? want Britain to stay in a reformed European Union. That is the aim I have and I am confident I will achieve The Prime Minister: Interestingly, at the conference it. of the British Chambers of Commerce—probably the biggest business trade body in Britain—it supported my Mr David Nuttall (Bury North) (Con): Does the approach of a renegotiation and referendum, and did Prime Minister agree that this Government’s great progress not support the alternative of just meekly going along in turning round the British economy has been achieved with whatever the European Union is doing today. despite the eurozone and not because of it? Business is on the side of the changes I am putting forward. The Prime Minister: Although my hon. Friend and I do not always see eye to eye on issues European, he is Simon Kirby (Brighton, Kemptown) (Con): I am a making a strong point. We have not seen much of a big fan of the public sector. Does my right hon. Friend boost to the British economy from the eurozone because agree that Greece teaches us a lesson that we can have a it has been relatively stagnant. We have had to achieve strong public sector only if we have a strong economy? economic recovery by selling to other parts of the world and getting our own economy moving. If we do see a The Prime Minister: My hon. Friend is absolutely recovery in the eurozone—which we hope to—that will right. If we look at what happened in Greece with the obviously be very good news for Britain. economic difficulties it has had, we see that it had to make sweeping cuts to its national health service because Clive Efford (Eltham) (Lab): If we ask a group of it was in so much economic trouble. That underlines the lawyers their opinion on whether TTIP would apply to point that we will make every day from now and for the the NHS, we will get as many answers as there are next 45 days, which is that if we want a strong NHS, lawyers. The Prime Minister cannot get away with saying schools and policing, we must have a strong economy. 1135 European Council23 MARCH 2015 European Council 1136

Ian Lucas (Wrexham) (Lab): In his statement the wheel of progress, so that, with others, we will help to Prime Minister said that he wanted a European Union ensure that the sort of mitigation that they will need in where freedom of movement was not an unqualified their countries goes ahead. right. If he does not secure an exemption from freedom of movement by the time of the referendum in 2017, Henry Smith (Crawley) (Con): In his statement, the will he be voting no? Prime Minister spoke about opportunity. Does my right hon. Friend agree that people will have an opportunity The Prime Minister: I am very confident that we will to reform the EU and have an in/out referendum on this get the changes we need, not least on the operation of country’s membership of the EU only by voting our welfare system. Back in European history, there Conservative, and that voting for any other party will was a time when freedom of movement was about kill that opportunity? accepting a job that had been offered, rather than simply the freedom to move to look for work. I have The Prime Minister: My hon. Friend is right. Voting been clear, and we will be clear on the doorsteps, for another party is really opening the back door to a including in the hon. Gentleman’s constituency: no Labour Government, who would not renegotiate or unemployment benefit for visiting EU migrants; after have a referendum. It would just lead to a sigh of relief six months if someone has no job they have to go home; in the corridors of Brussels that none of those changes someone must work for four years before they get was necessary. If people are serious about wanting in-work benefits; and no sending home of child benefit. reform and a referendum, there is only one box they can Those are things that I suspect each and every one of put their cross in. the hon. Gentleman’s constituents wants put in place. Rehman Chishti (Gillingham and Rainham) (Con): On foreign policy, did the European Council look at the Dr Matthew Offord (Hendon) (Con): With regard to coup in Yemen against the legitimate Government of the Iranian nuclear deal, may I urge great caution on President Hadi? Taking into account the words of the the part of the Prime Minister and, indeed, other members Yemeni Foreign Minister in today asking for Gulf of Europe? The road between a civil nuclear energy Iran Co-operation Council countries to send in their forces and a military nuclear Iran is a very short one. Contrary to avoid civil war, the Saudis have asked their ambassador to what at least one of my right hon. Friend’s constituents to operate from Aden to show support for the legitimate has said, it would be better for the middle east to have Government. Will we be doing the same? no deal than a bad deal. The Prime Minister: We did not discuss Yemenspecifically The Prime Minister: I absolutely understand and at the Council because we were very focused on Tunisia, share the concerns that people right across the world, Libya, Ukraine, energy union and the eurozone crisis, including in Israel, have about the prospect of a nuclear- but my hon. Friend is absolutely right that what is armed Iran. The deal should keep Iran away from happening in Yemen is deeply worrying. It is extremely having a nuclear weapon, with proper inspection and unstable. We still, obviously, support and believe that verification so that if there were any changes to those President Hadi is the legitimate power. Frankly, what is circumstances, they could be seen. Obviously, we should needed in that country is what is needed in so many not do a deal at any price, but the alternatives to doing a other troubled countries in the middle east, which is deal are not attractive. Frankly, they are not attractive inclusive government that includes representatives of all for Iran. The sanctions we put in place—Britain led the the people of that country, so there can be some sort of charge in Europe—have done such damage in Iran that progress. it is in its interests to conclude a deal. Andrew Bridgen (North West Leicestershire) (Con): Despite yet another eurozone crisis, the UK economy Andrew Stephenson (Pendle) (Con): Earlier this month, continues to grow strongly, creating more jobs than the I met a group of talented young people at John Fisher rest of Europe added together. Does the Prime Minister and Thomas More Roman Catholic high school in agree that it would have been a huge error of judgment, Colne, who, through CAFOD, are helping to raise the especially by someone who aspired to be Prime Minister, profile of climate change. They have all made their own to have backed Francois Hollande’s failed socialist policies climate change pledges, which they presented to me. when he should have been backing our long-term economic Will the Prime Minister say more about his discussions plan? on energy policy and the prospects of our reaching a long-term agreement in Paris this December? The Prime Minister: We all remember what the Leader of the Opposition said. He stood on the steps of the The Prime Minister: I am very grateful to my hon. Élysée and said he wanted Britain to follow the French Friend for that question. I think the prospects are good, course. If we had done that, unemployment would be because of the deal Britain helped to broker at the twice as high as it is and growth would be one seventh of previous EU Council. It shows that the European Union what we have achieved, so I am sure that when it comes will be making a very serious contribution to reducing to the choice at the election, people will recognise that carbon emissions. We obviously had to allow some we should follow not the French course but the British countries, such as Poland, some flexibility, but the overall course, which means voting Conservative. numbers for Europe are impressive. Now what we need to do, with the movement by the Americans and the Mr Speaker: Before I call the Minister for the Cabinet Chinese, is discuss the matter with all the countries Office and Paymaster General to make his statement to which might, if we are not careful, put a spoke in the the House, it might be helpful to colleagues to know 1137 European Council 23 MARCH 2015 1138 that the final day’s debate on the Budget is very heavily Government Efficiency and Reform subscribed, with no fewer than 38 colleagues seeking to catch the eye of the Chair. As a consequence, it will be important to be very pithy in the statement now, both 4.30 pm from the Back Benches and the Front Bench. We will The Minister for the Cabinet Office and Paymaster then proceed with the main business of the day. General (Mr Francis Maude): With permission, I would like to make a statement on Government savings from efficiency and reform. Since May 2010, my Department has led a cross- Government programme, working closely with the Treasury, to ensure that taxpayers’ money is focused on front-line services. With rising public expectations for high-quality services, coupled with the huge budget deficit we inherited in 2010, the coalition faced a huge challenge to do more—and better—for less. Over this Parliament, we have secured unprecedented levels of savings, delivering for successive years £3.75 billion, £5.5 billion, and £10 billion, compared with spending in Labour’s last year. For 2013-14, we saved £14.3 billion, against a 2009-10 baseline. That is testament to the hard work of civil servants across Whitehall and the strong support of my right hon. Friends the Chancellor and the Chief Secretary and other Treasury colleagues. Last July, the Comptroller and Auditor General recognised the pace and priority we had injected into the efficiency agenda. We started this with the introduction of tight spending controls just days after we entered government, and these controls have delivered the largest share of savings. Since 2010, we have negotiated billions of pounds off expensive legacy contracts and cut central Government spending on consultants and interim workers by over half. Like for like, the civil service is 21% smaller. I publish today our annual “State of the Estate” report, which shows that we have exited in aggregate more than one building every day since May 2010, reducing the total size of our estate by 20%. As part of our long-term economic plan, our aim was to save £20 billion from central Government efficiency and reform for the last year of this Parliament, including by reducing losses to the public purse through fraud, error and uncollected debt. I can tell the House that we are on course to meet and indeed exceed this target. Up to January 2015, we have already identified £11 billion of efficiency and reform savings—over a third up on the same point last year—with the largest savings coming in the final quarter every year so far. With fraud, error and debt benefits still to be counted, we are well on the way to the £20 billion target. The full year’s savings will need to be confirmed by independent audit, and, as in previous years, we will invite the National Audit Office to undertake this. We have made significant progress in transforming government and cutting costs, but this is only the beginning. At the autumn statement, we published, with the Treasury, a document entitled “Efficiency and reform in the next Parliament”, which set out our intention to save a further £10 billion for 2017-18 and £15 billion to £20 billion for 2019-20 compared with the current year. We now set out our next steps. We will implement a new approach to land and property, based on central ownership and management of assets and Departments paying market-level rents. This will provide greater incentives for Departments to rationalise space, as well as releasing land and property for productive use—for example, for up to 150,000 homes. To do this successfully will mean working even more 1139 Government Efficiency and Reform23 MARCH 2015 Government Efficiency and Reform 1140

[Mr Francis Maude] campaign? Perhaps his and his colleagues’ time would have been better spent today deploring the despicable closely with local government, including through our actions of the Tory candidate for Dudley North or by One Public Estate programme, which now operates explaining to the public where the axe will fall, following across 32 local authorities. last week’s confirmation of the Chancellor’s extreme The UK is now a world leader in digital government, spending cuts in the next Parliament. and we will work with local government to take this The Minister has carried out his job in government of transformative approach into the wider public sector. identifying efficiency savings with zeal and his work to Digital services improve the citizen experience, while reduce the cost of government bureaucracy is welcome. being significantly cheaper to provide. We will continue While I might disagree with him on occasion, I do not to reduce the cost of technology in government, as question his motives to reduce costs. I also commend extravagantly expensive legacy IT contracts fall in over the civil service for its work on the shared agenda. the coming years. To that end, I have signed an innovative The Minister for the Cabinet Office thanked the deal to create a joint venture for data hosting that will Chancellor for his support on this agenda, but I have to save up to £100 million. say to the right hon. Gentleman that it really should be All of this work has been driven by an increasingly the other way around. It is clear from the Office for strong corporate centre, supporting and challenging Budget Responsibility and the Institute for Fiscal Studies Departments to work together to maximise efficiencies that after the Chancellor’s Budget last week, unprotected and improve services. We are strengthening central Departments will face huge and colossal cuts to meet leadership across 10 key cross- departmental functions, his spending plans and unfunded tax cuts. With all due including commercial, digital and technology, project respect to the Minister, no amount of back-office efficiencies management, legal and human resources. Later this will save front-line police, armed forces or social care week, we will publish our functional leadership model. services, or working families from the Government’s The chief executive of the civil service will lead the secret VAT plans. Only so much can be got from efficiency build-out of this strengthened model, under which the savings and even with his savings in this Parliament, the Treasury and the Cabinet Office will work together as Government are still only halfway to their own deficit the corporate centre to support Departments to continue reduction targets. That is why, even with his savings, their programme of reform and to deliver future spending public services would face even bigger cuts in the next consolidations. Spending controls will remain in place Parliament than they have in this one. Opposition Members and evolve in time to strong functional standards, while have a better plan. We will balance the books in a fair Departments will need to own more of the transformation way, ensuring a recovery for the many, not just for the agenda. As part of this, we are recruiting 25 commercial privileged few. directors across government and launching a new project We broadly support the approach to land and property leadership programme at Cranfield university. This that the Minister has outlined. On digital government, I programme will help to build project management skills am pleased to see that he has been reading our independent in parallel to our successful major projects leadership review on this topic. Just weeks ago, he was saying that academy. the Government Digital Service could not work with I am grateful for the collaborative way in which the councils to improve services and save money. Now he is shadow Cabinet Office Minister has approached this championing this, and I welcome his conversion today. important programme, which continues that of her We agree that stronger functional skills in the civil predecessor, the hon. Member for Barnsley East (Michael service are important, and we will examine in detail the Dugher), and also for the support of the Chair of the Minister’s plans for new commercial directors and a Public Accounts Committee and its members, who have new project leadership programme. seen the point of what we are seeking to do and given Any new Government will have to think about how significant support to it. we can provide better and more responsive public services We have made substantial and long-overdue with less, but with just a few weeks to go, the country improvements to the way government operates, but faces a clear choice at the election. No amount of much more lies ahead. We have shown that we can drive spinning on efficiency savings will hide the Tories’ true down the cost of government while improving the quality agenda of cutting front-line public services and hitting of services. We have shown that we can get more and families with a rise in VAT. better for less, and that we have a long-term plan to deliver it. I commend the statement to the House. Mr Maude: I am very sorry that the hon. Lady has been so mean-minded about this. She has cast some unworthy aspersions on the reasons for my statement. 4.37 pm The historic purpose of the House is to vote Supply and Lucy Powell (Manchester Central) (Lab/Co-op): I scrutinise the way in which Governments spend their thank the right hon. Gentleman for advance sight of his money. I am astonished that, when I come to the House statement. His statement today has a little bit more to explain how this Government have delivered savings content than his empty statement of two weeks ago, but running into tens of billions of pounds, and have protected only a little bit more. One has to wonder again why it is front-line services by taking out the cost of government, that I keep being called to this House for his statements. the hon. Lady should trivialise something that is at the Is it perhaps because he wants to continue his very long core of the historic mission of the House of Commons. career of public office in the other place after May and She has done no honour to her position. is using Hansard to scrub up his CV? Or is it, more The hon. Lady should reflect on the fact that the seriously, to distract me and this place from the disarray Office for National Statistics, which began its series on that is now besetting the Conservative party’s election public sector productivity in 1997, has shown that during 1141 Government Efficiency and Reform23 MARCH 2015 Government Efficiency and Reform 1142 the years of the Labour Government, up to 2010, amount of tax being collected has risen. We can do productivity in that sector remained flat, while productivity things differently and we can do things better—we have in the nearest analogue, the private services sector, rose already shown that that is the case—but if the hon. by nearly 30%. She should reflect on the difference that Gentleman thinks that the only problem with the public could have been made to the deficit of historic proportions finances is that we are not taxing enough and not that her party bequeathed to the coalition. raising enough taxes, I am afraid that he and I differ. I The hon. Lady talked about the future, and about the think that we must cut our costs first, which is what we contribution that could be made by what she described are doing and will continue to do. as back-office efficiencies. We are talking about much more than back-office efficiencies; we are talking about Nick Herbert (Arundel and South Downs) (Con): the introduction of very different and improved ways of May I congratulate my right hon. Friend and parliamentary delivering public services. That can be done, and we neighbour, who has done a superb job in driving these have shown that it can be done. The public’s expectations savings and thereby ensuring front-line services can be in terms of the quality of public services are, properly, protected? He has done a fine job behind the scenes and rising; the demand in terms of the quantity of public will be much missed from this place, but I hope he will services is also rising as people—happily—live longer; be able to continue in some way in this important public and the amount of money that is available to support service. Does he agree that the key part of his statement those public services is less, thanks to the deficit that we was that these savings have been achieved as a result of inherited. a strong corporate centre—a central drive for efficiency— We therefore must do more, and do it better, with less and is it not the case that that centre will have to be money. We have shown over the last five years that that strengthened further if significant additional savings can be done, and we have also shown that it needs to be are to be achieved? done again. There should never be an end to efficiencies. The most efficient organisations in the world always Mr Maude: I am grateful for my right hon. Friend’s look for further efficiency savings every year, and that is kind comments, and I also hugely appreciate that he what this Government, under a Conservative leadership, and the right hon. Member for Wentworth and Dearne will do in the next Parliament. (John Healey) have done in leading the work of GovernUp, which has made the case very powerfully, as indeed has Sir Alan Beith (Berwick-upon-Tweed) (LD): Why has the Public Accounts Committee, for a strong corporate the rigorous challenge that the coalition Government centre in Government that can drive these sorts of have had to make to the way in which money is spent in changes. When we examined this, we found that, in many Departments not been applied to the criminal almost all cross-government functions, the historical justice system? Having a larger prison population than position of the British Government is to have an nearly all the other European countries is not necessarily extraordinarily weak centre. That is part of the reason the most cost-effective way of keeping people safe. Will why it has been proved in the past to be so difficult to the Minister look at the American states that are trying drive these sorts of efficiency savings, but we are changing to reverse that trend in order to spend the taxpayer’s that. dollar in the way that is most likely to keep the taxpayer safe? John Healey (Wentworth and Dearne) (Lab): This was a swansong statement, if I may say so, which largely Mr Maude: Let me say to my right hon. Friend, as we looked backwards rather than forwards. Nevertheless, both enter our last week in the House of Commons, what the Minister has announced today about stronger that, as he knows, the reason our prison population is central leadership within Whitehall, clearer professional so large is the rate of reoffending. I know that he will standards right across the Departments and more power support, as I do, the rehabilitation revolution, led by to the elbow of the new chief executive of the civil our right hon. Friend the Lord Chancellor, which is service are welcome on all sides. The right hon. Gentleman committed to a radical reduction in the rate of reoffending over five years has made something of a start in ensuring that is the sole reason why our prison population is so we get better and more for less, but his statement this much higher than those of comparable countries. afternoon is clearly passing the baton for the next five years to this side of the House and my hon. Friend the Kelvin Hopkins (Luton North) (Lab): The Treasury’s Member for Manchester Central (Lucy Powell) on our problems are, above all, about income, not expenditure. Front Bench. There is a gap of £120 billion a year between the tax that should be paid and the tax that is actually paid. Mr Maude: I agree with every part of what the right However, the Government have presided over tens of hon. Gentleman says except the last part, but I am thousands of job cuts in Her Majesty’s Revenue and grateful for what he says and the work he has done on Customs, where senior staff collect 20 times their own this issue. He is a very experienced former Minister salaries and junior staff 10 times theirs. Are the Government himself and he has seen very vividly how we can do not shooting themselves in the foot? these things better. We have made a start but there is much, much more to be done. Mr Maude: The hon. Gentleman is completely mistaken if he believes that there is a direct linear relationship Andrew Bridgen (North West Leicestershire) (Con): between the number of HMRC officials and the amount As my right hon. Friend has stated, public sector of tax that is being collected. There is absolutely no productivity flatlined between 1997 and 2010, but what evidence of that. The size of HMRC, in terms of assessment has he made of improvements in civil service headcount, was falling before the 2010 election, and the productivity since 2010? 1143 Government Efficiency and Reform23 MARCH 2015 Government Efficiency and Reform 1144

Mr Maude: Productivity has improved dramatically. honourable way. He might just occasionally shrug Like for like, the civil service is 21% smaller, yet I do not off that carapace of cynicism and give due credit to think anyone would say the civil service is doing less. It the public servants in this House as well as to those is not; if anything, in some places it is doing more. outside it. Productivity has markedly improved and I pay a very warm and genuine tribute to those hundreds of thousands Richard Benyon (Newbury) (Con): My right hon. of civil servants who do a fantastic job, often in very Friend can leave the House knowing that he has done difficult circumstances. All of us in this House should an outstanding job in reforming our public services, be warm in our tribute to them. and it would have been nice to hear a little more humble pie from the hon. Member for Manchester Central Wayne David (Caerphilly) (Lab): I agree with what (Lucy Powell). On the question of getting better digital the Minister has said about extending digitisation in coverage across our country, does he agree that the government, but what is he doing to ensure millions of public estate should be made more available for things people are not excluded from the process of digitisation? such as mobile phone masts if we are to have a 21st-century digital economy? What more can be done to encourage Mr Maude: That is a very good point. When the now the public sector estate to make up for the absence of Baroness Lane-Fox reported to me at the very beginning support from the private sector estate in getting greater of this Parliament when she introduced the concept, digital coverage? which we warmly adopted, of digital by default—if a service can be delivered online, it should be delivered Mr Maude: My hon. Friend makes a really good only online—she made the point, which again we strongly point, and there is much more that we can do. For supported, that there must always be an assisted digital example, we will make available public sector Government- option, which ideally can be used to help people who owned land and buildings for the siting of mobile are currently digitally excluded to become full participants phone masts, which will be beneficial in lots of ways. It in the online world—so, for example, older people can will provide locations for the masts as well as income for more easily communicate with distant family members. the Government. We have now also published the second There is a big programme here that we are strongly iteration of our map of the publicly funded digital promoting. infrastructure. This includes the many thousands of miles of fibre that have been paid for by the taxpayer Mrs Anne Main (St Albans) (Con): I am so pleased to but which are massively underused and under-exploited. hear that we are protecting public services while cutting If that network can be mobilised to support the roll-out down the cost of government, but does my right hon. of mobile coverage and rural broadband, it could accelerate Friend share my concern that we have been prevented the programme to which my hon. Friend and I are both from delivering one of the bigger cuts—namely, cutting deeply committed. the number of Members of Parliament by delivering our proposed boundary changes? Does he agree that Duncan Hames (Chippenham) (LD): It is three years although the Opposition refer to fairer cuts, they give to the day since the Minister took up my invitation to no indication of what those cuts would be, and that the visit Ark Data Centres in Corsham with me, and I am public therefore cannot trust anything they have to say? delighted to hear that the taxpayer stands to benefit to the tune of £100 million from the Crown hosting joint Mr Maude: Aneurin Bevan once said: venture with the company. Does he agree, however, that the benefits of digital services extend much further than “Why look into the crystal ball when you can read the book?” that, in that they allow a total redesign of the processes The last Government did nothing to drive the sort of that underpin our public services? efficiency savings that we have achieved, so when it comes to making cuts in public spending, we can only Mr Maude: My hon. Friend is completely right. The fear that they would cut the services, whereas we are digitisation of services is sometimes seen as just a pretty cutting the costs, which is the better way to go. front end on a website, but this goes much deeper. It is about a fundamental redesign of the way in which Paul Flynn (Newport West) (Lab): Why has there services are delivered, with the processes being designed been no reform of the continuing parliamentary scandals and built around the needs of the citizen instead of of cash for access to politicians and cash to buy peerages? around the convenience of the Government, which has Why has there been no brake on the revolving door that far too often been the case in the past. allows retiring Ministers to prostitute their insider knowledge to the highest bidder, and why are there no Andrew Stephenson (Pendle) (Con): As this is probably controls over lobbyists who are still free to buy influence my right hon. Friend’s last statement in the House, may and privilege in this House? Is not the Minister ashamed I thank him for the numerous visits he has made to that, after his Government have been in office for five Pendle over the past few years and for recently meeting years, the reputation of politics remains firmly in the Training 2000 in the Cabinet Office to discuss its plans gutter? to set up a cyber-security institute in my constituency? Will he say more about public service mutuals, the Mr Maude: I cannot imagine a greater contribution increase in their number under this Government and to that reputation than the hon. Gentleman going on how they can benefit productivity? about it all the time. As he above all people ought to know, most people come into this particular form of Mr Maude: I am grateful to my hon. Friend. The public service, known as politics, for high reasons and public service mutuals programme is important. There with high motivation, and they do their job in an are now more than 100 of them, whereas there were 1145 Government Efficiency and Reform23 MARCH 2015 Government Efficiency and Reform 1146 fewer than 10 when the coalition Government were within central Government. We have cut the cost of the formed. More than 35,000 members of staff have joined subsidies to trade unions significantly over that time, public service mutuals, which are delivering public services bringing into these things a proper sense of proportion. to the value of more than £1.5 billion. Most of them choose to be not-for-profit, and have seen an extraordinary Mr David Nuttall (Bury North) (Con): I thank my improvement in productivity by bringing together: right hon. Friend for his statement and for the work he entrepreneurial leadership, of which there is much more has done, saving taxpayers billions of pounds. Does he in the public sector than is generally thought; staff who agree that by merging Departments even greater efficiencies are liberated from bureaucratic constraints; hard-edged and savings could be made? commercial discipline; and the public service ethos. Those four factors, brought together, are an extraordinarily Mr Maude: I understand what my hon. Friend says. powerful driver of improved productivity and value. The studies that have been done on machinery of government changes do not always indicate that they Mr Andrew Robathan (South Leicestershire) (Con): pay for themselves, but there are undoubtedly ways in In my right hon. Friend’s swansong—I commend him which we can organise government to yield—in addition for it and for his five years’ work, saving money for the to what we have already done—significant improvements. public purse—I wonder whether I might pick up on one specific issue of government efficiency reform, which is the trade unions training fund. It was set up a dozen or Dr Matthew Offord (Hendon) (Con): I congratulate so years ago by the previous Government; some £10 million my right hon. Friend on his statement. Many of us to £12 million was given to trade unions’ training and, recall my hon. Friend the Member for Cannock Chase lo and behold, £12 million came back as a bung to the (Mr Burley) making his suggestions to the House at the Labour party. Will he update the House on what has beginning of this Parliament and being vilified by some happened to that? Opposition Members. May I say how resolutely and quietly the Minister has gone about this work? Not only Mr Maude: My right hon. Friend should not assume has he made the savings, but he has taken the civil that this is my swansong. Although it is my last week in service with him to improve the public services of this the House of Commons, I am answering oral questions country. on Wednesday and I am looking forward to that— [Interruption.] I am looking forward to engaging with Mr Maude: I am grateful to my hon. Friend. This has the hon. Member for Manchester Central (Lucy Powell) been a long process and it is fair to say that the further on that occasion. It is very nice to see my right hon. we have gone, we have discovered a deep appetite for Friend the Chief Secretary to the Treasury here, as he reform and change within the civil service, particularly has been my comrade in arms as we have driven forward among its younger members, who often get frustrated. these efficiency savings over that period. My right hon. They are the people who complain most about bureaucracy, Friend the Member for South Leicestershire (Mr Robathan) and they have welcomed the fact that Ministers have will know that I made a statement, either last week or taken a real interest in driving out bureaucracy and the week before, about the reform of trade unions speeding things up. 1147 23 MARCH 2015 Tobacco Manufacturers’ Producer 1148 Responsibility Tobacco Manufacturers’ Producer course have some public health benefits, as price increases Responsibility are known to be the single most effective policy lever in reducing smoking prevalence. However, the potential Motion for leave to bring in a Bill (Standing Order benefits to public health can be fully realised only if the No. 23) levy is used to fund tobacco control action, which is designed to increase the rate of quitting tobacco use 4.59 pm over and above what might otherwise be expected as a Paul Burstow (Sutton and Cheam) (LD): I beg to result of price rises. move, I strongly believe that at least some of the funds That leave be given to bring in a Bill to require the Secretary of raised should be directed towards actions to reduce State to undertake a programme of research into the costs and the harm caused by tobacco consumption. A research benefits of introducing an annual levy on sales to be paid by paper by the economist Mr Howard Reed suggests that tobacco manufacturers, with the proceeds to be used to support tobacco control measures, to discourage young people from starting £500 million could be raised without much difficulty to smoke tobacco, to help existing tobacco smokers to stop every year from a levy based on sales data. If the smoking; and for connected purposes. programme of research proposed in this Bill were carried This Bill is about establishing the principle that the out, it would show that the recurring cost of tobacco tobacco industry, which has done so much to harm our control activity at every level—local, regional and society, should pay more than it does now to help national—could be met from the proceeds of the levy. reduce the harm that it might do in the future. Like the Indeed, it is likely to generate a fund sufficient to majority of Members in this House, I warmly welcomed support these activities as well as assisting deficit reduction. the announcement by the Chancellor last autumn—it That would include national action through Public was in the autumn statement—that he would consider a Health England and regional strategy through regional levy on tobacco manufacturers and importers. I strongly offices and any future regional governance structures, agreed with him that: and tobacco control work by local authorities and in “Smoking imposes costs on society and the Government believe the third sector. The funding would cover: stop smoking that it is therefore fair to ask the tobacco industry to make a services, mass media and public education campaigns greater contribution.” and research, and efforts to tackle illicit trade at local I welcomed the announcement by the Leader of the and regional level. It could also fund new initiatives Opposition that his party was also committed to such a such as a positive retail licensing scheme to help ensure levy. It is right in principle that the tobacco industry that retailers do not face any new costs. I also note with should pay for the damage that its addictive and lethal interest that the Communities and Local Government products cause. The industry is one of the most profitable Committee has recommended that some levy proceeds on earth. The two largest tobacco firms in the UK be used to help clear up the litter and environmental market, Imperial and Japan Tobacco International, hold problems caused by discarded cigarettes. around four fifths of the UK market and achieve joint Local stop smoking services play an essential role in profits of about £1 billion a year. Charging those firms helping people to quit. However, following the transfer to help clean up the damage their products cause is a of the public health function to local authorities, which rational and justified extension of the “polluter pays” I support, those services are vulnerable, because of the principle to public health policy. financial strains placed on local authorities and the In the United States, the tobacco industry is required, difficult choices that they have to make. under the Family Smoking Prevention and Tobacco Control Act 2009, to pay an annual “user fee” to the There are already grounds for concern about how Food and Drug Administration to fund tobacco regulation many people are being reached by stop smoking services. and wider tobacco control activity. In effect, that fee is Indeed, the Health and Social Care Information Centre independent of the wider US fiscal regime, and the reported in 2013-14 that the number of people quitting proceeds are controlled directly by the FDA. had fallen relative to the previous year. Although stop smoking services are demonstrably highly cost-effective As of 31 March 2014, the US Food and Drug and greatly benefit the whole of society, the direct Administration had collected $1.88 billion in manufacturer savings they deliver go mainly to the NHS and not to user fees, of which it spent $1.48 billion. About half a the local authorities that pay for them. That applies also billion dollars went on public education, and another to local action by trading standards officers and others, half billion went on scientific research projects to support for example when it comes to reducing the scale of illicit additional FDA regulations on tobacco products. tobacco trade. The Exchequer benefits financially from In the UK, there is a policy parallel in the energy that action, not the local authorities. companies obligation, which places a legal requirement on the energy industry to invest in energy efficiency and I draw the House’s attention to NHS England’s “Five- related measures, especially for poor and vulnerable Year Forward View”, published in October of last year. households. That leads us to a key problem with both This includes a section entitled, “Getting serious about the Chancellor’s and the official Opposition’s approach prevention”, which states: to the levy. The Treasury consultation on the levy, “The future health of millions of children, the sustainability of which was announced in the Budget but is still ongoing, the NHS, and the economic prosperity of Britain all now depend does not include any commitments on how the money on a radical upgrade in prevention and public health.” raised should be spent. Instead, it seems that the levy Those words will remain simply a pious hope if we do will be used simply to go to the Exchequer. not find new ways of financing public health policy and If a tobacco levy is introduced, the tobacco industry that would in turn mean that the chances of bridging will have to decide whether to pass on to consumers the £30 billion NHS funding gap identified in the forward some, or all, of the cost in higher prices. That would of view forecast will not be achieved. 1149 Tobacco Manufacturers’ Producer 23 MARCH 2015 Tobacco Manufacturers’ Producer 1150 Responsibility Responsibility The Bill also proposes that research should be conducted absolutely fantastic because all of a sudden cigarettes into how the levy could be assessed and collected. I would not appeal to young people and children and that would favour basing it on sales data made public by would close the gateway into tobacco use. The whole manufacturers at a local and regional level as well as a policy was based on that premise. national level. That would allow resources to be focused That policy has not even been implemented and on the areas with the greatest sales and the greatest already the right hon. Gentleman is saying, “Actually, prevalence rates, better targeting tobacco control in the that was all a load of tripe. It won’t make any difference future. whatsoever. What we need now is a levy on the tobacco Like most of us in this House, I was delighted when industry so that we can do some research to find out the former Health Secretary, the right hon. Member for why young people smoke and then try to stop them South Cambridgeshire (Mr Lansley), said that he wanted smoking.” Well, what on earth was the plain packaging the tobacco industry to have no business in this country. campaign about, if not that? I am grateful to him for Smoking still causes hundreds of thousands of premature letting the cat out of the bag by telling us that the whole deaths across the UK every year and for every death premise behind plain packaging was a complete load of caused by smoking, 20 smokers suffer from smoking-related old codswallop. Unfortunately, the Government idiotically disability. That is a terrible toll of death, disease and accepted that codswallop in a mindless fashion without disability. It is why we must carry on seeking ways to even thinking it through, because they, too, are in the improve public health measures to tackle smoking. A pocket of ASH and, rather than making up their own tobacco levy could provide vital funds for that purpose policies based on evidence, just want gleefully to accept and I am confident that the programme of research anything ASH tells them. proposed in the Bill would show just that. I therefore If we want to raise more money from the tobacco commend the Bill to the House and hope that Members industry, there is one great way of doing so: by clamping will support it. down on the illicit trade in tobacco, which would raise 5.6 pm far more than the right hon. Gentleman’s levy ever would. Yet the Government are pursuing policies, such Philip Davies (Shipley) (Con): I shall speak only as plain packaging, that will reduce the amount of briefly. I should say at the start that I do not intend revenue from the industry and increase the illicit trade. to divide the House, as I know that many people wish to Why he says that he wants to raise more funds from the speak in the forthcoming debate, but I could not allow tobacco industry but supports measures that will do this Bill to stand without any opposition whatsoever. It exactly the reverse is absolutely beyond me. takes the typical Lib Dem populist approach, trying to The point is that this is just the latest campaign from attack the tobacco industry without any evidence ASH. Every time it advocates the introduction of another whatsoever, probably just because the right hon. Member measure, it tells us that that is what the Government for Sutton and Cheam (Paul Burstow) thinks that he need to do to tackle tobacco, but as soon as it is might be able to extract four extra votes from it in his implemented we are told that actually it was a load of constituency at the general election. old cobblers and now we need something else. It is like The right hon. Gentleman made big play of wanting those companies that tell us their washing powder is the tobacco industry to pay its fair share. I have never absolutely magnificent, only to bring out a new one a met anyone who would disagree with that sentiment, couple of years later and tell us that the previous one but he failed to mention one thing. I received a briefing was actually terrible and that really we need to buy the note from Action on Smoking and Health—I see that new one. ASH cannot now hand over the keys to the the right hon. Gentleman is putting himself up as the company car; it has to keep going and justifying its role. spokesman for ASH, as it is its campaign that he is It will keep coming up with new, innovative solutions to advocating—and it estimates that the cost of smoking try to keep its jobs, which no doubt the Government to the NHS is about £2.7 billion a year. That figure will accept, because they do not have a mind of their comes from ASH, the deadliest opponent of the tobacco own and just have to do what ASH tells them to do. industry, yet tobacco excise and VAT already raise I just hope that we can start thinking these things about £12 billion a year in revenue according to Her through, rather than simply accepting all the nonsense Majesty’s Revenue and Customs. How on earth the that comes from ASH, the Liberal Democrats and right hon. Gentleman has come to the conclusion that other hon. Members on these subjects. The right hon. the fair share is not being raised from the tobacco Gentleman wants the tobacco industry to pay its fair industry is beyond me. The industry is clearly paying share. I want the tobacco industry to pay its fair share. well above the cost of smoking to the NHS and even if It is already raising far more in taxes and duties than it he wants to add on the cost of cleaning up cigarette ever cost the NHS, according to ASH’s own figures. If butts, fires and all the other things that ASH tries to we want to get more money, let us stop the illicit trade, add on, it comes nowhere near £12 billion. and the best way to do that is not by having a levy, but I particularly wanted to oppose the Bill because the by getting rid of the ridiculous plain packaging policy. right hon. Gentleman has done us all a great service. He Question put (Standing Order No. 23) and agreed to. has let the cat out of the bag. Of course, the Government have already accepted ASH’s campaigning on banning Ordered, smoking in cars where there are children, which is That Paul Burstow, Kevin Barron, Bob Blackman, completely unenforceable. They have also accepted the Dr Julian Huppert, Alex Cunningham, Martin Horwood, plain packaging of tobacco, which is completely idiotic. Nick Smith, Sheila Gilmore, Sir Alan Beith, John Robertson Of course, the Government accepted those policies and Dr Sarah Wollaston present the Bill. because ASH told them that if they did so the amount Paul Burstow accordingly presented the Bill. of smoking in the country would plummet. We were Bill read the First time; to be read a Second time on told that if we introduced plain packaging it would be Friday 27 March, and to be printed (Bill 192). 1151 23 MARCH 2015 Budget Resolutions and Economic 1152 Situation and perhaps most importantly, the most households in Ways and Means social housing in work since records began. That is arguably the most important of all the figures. Budget Resolutions and Economic Situation Wayne David (Caerphilly) (Lab): Will the right hon. Gentleman give way?

AMENDMENT OF THE LAW Mr Duncan Smith: In a moment. Debate resumed (Order, 20 March). Importantly, and contrary to the myths that the Question again proposed, Opposition promulgate, of this rise in employment since That,— 2010—I want to make this clear, as I suspect the hon. (1) It is expedient to amend the law with respect to the Gentleman may ask about this—80% is full-time work National Debt and the public revenue and to make further and 80% is permanent. Three fifths has come from provision in connection with finance. managerial, professional and associate professional jobs, (2) This Resolution does not extend to the making of any 70% of private sector jobs have been outside London, amendment with respect to value added tax so as to provide– and two thirds of jobs have gone to UK nationals, (a) for zero-rating or exempting a supply, acquisition or reversing the damaging trend under the previous importation; Government when more than half went to foreign (b) for refunding an amount of tax; nationals. (c) for any relief, other than a relief that– (i) so far as it is applicable to goods, applies to goods of Wayne David: Will the Secretary of State kindly tell every description, and the House how many of those new jobs were on low (ii) so far as it is applicable to services, applies to pay? services of every description. Mr Duncan Smith: I think I have just told the House. 5.14 pm It is always good to ask another question when I have The Secretary of State for Work and Pensions (Mr Iain just answered it. The jobs that we are providing are paid Duncan Smith): It is a pleasure to open the debate, well. We have seen a rise of 2.1% in private sector pay possibly for the last time, and to welcome this final against inflation of 0.3% now, and a rise in public sector pay of 0.7%—somewhat over and above inflation. Budget—[HON.MEMBERS: “Hear, hear.”] I knew that I would draw support from different parts of the House, So we have seen unemployment fall to pre-recession and I am pleased to hear that I draw it from the levels. The number of out of work benefits has fallen to Opposition Front Bench as well. Last week the Chancellor its lowest for a generation, and the number of workless reiterated the Government’s commitment to our long-term households has fallen to the lowest on record. economic plan—even the previous Chancellor, the right hon. Member for Edinburgh South West (Mr Darling), Mr Geoffrey Robinson (Coventry North West) (Lab): slightly smiled at that one—restoring the public finances Precisely on employment at record levels and the other and supporting businesses while providing security and boasts that the right hon. Gentleman has made, why stability for Britain’s families. then are national insurance and tax receipts way below At the start of this Parliament we inherited an economy budget and employment above budget? Does that not that had suffered a greater collapse than almost any reflect the quality and level of the employment that is other country, with £112 billion wiped off our GDP being offered—1.8 million zero-hours contracts, for and 750,000 people losing their jobs, contributing to a example? welfare bill that had risen by 60% in real terms under the previous Government. Over the past year, however, Mr Duncan Smith: I respect the hon. Gentleman and Britain has grown faster than any other major advanced I am glad he asked me that, because it allows me to economy, with the Office for Budget Responsibility’s point out something that I was going to come to later. future growth forecast revised up. Britain has had the We have raised the thresholds on taxation. It is not best performing labour market in the G7, with employment surprising, therefore, that some of the insurance levels forecasts revised up too, and unemployment revised are low. I am proud of that. I am proud that my right down. We are on the path, therefore, from austerity to hon. Friend the Chief Secretary is also proud of the fact prosperity. The deficit has been cut in half. The fiscal that we are raising the point at which people pay tax for mandate has been met in the target year. National debt the first time. The real reason behind all these facts and is set to fall in the coming year. A surplus of £7 billion is any other issues that the hon. Gentleman raises in this forecast by the end of the next Parliament. Welfare regard is the fact that the previous Government saw the spending is down in real terms for the first time in economy go over the edge of a cliff, and we have been 16 years and is below its 2010 level as a share of GDP. picking it up ever since. If the question is why it is not Underpinning this recovery is the remarkable perfect yet, the answer is that we still have some way to performance of our labour market, with the highest go, but we are making progress and going in the right employment rate that Britain has ever seen, at 73.3%. direction. The rise in youth employment in the UK over the year is Through this Government’s employment programme larger than the rest of Europe combined, and there are we are ensuring a jobs recovery for all. I want to point now more people in private sector jobs than ever before, out some of the figures: 2 million apprenticeship starts more women in work than ever before, more lone parents since the beginning of this Government; over 1 million in work than ever before, more older workers than ever claimant commitments signed—as people go in to sign before, more disabled entrepreneurs than ever before, on to jobseeker’s allowance, setting out and reinforcing 1153 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1154 Situation Situation people’s obligations; work experience for 250,000 young The hon. Member for Leeds West (Rachel Reeves) people; 60,000 start-up businesses through the new made this comment about Jobs Growth Wales: enterprise allowance; and the Work programme helping “I went to see a scheme very similar to this in Wales last week more long-term unemployed people back into work and...that’s what we would aim to do across the UK”. than any other programme before. If that is what she thinks she is going to do, let us deal with what Jobs Growth Wales actually produces. It has Mr Jim Cunningham (Coventry South) (Lab) rose— been revealed to be an expensive exercise in cherry-picking the best-quality people who want to go back to work. Mr Duncan Smith: I will come back to the hon. Far from being a guarantee for all, which I understood Gentleman. I want to make a little progress, as I know was her policy, the hardest to help are not eligible for that others want to speak. the programme, and only one in three applicants has The Work programme is continually improving. Nearly got a place on it. A success rate of 80%, at a cost of 1.1 million people have spent time off benefits, 680,000 £6,000 per place, is trumpeted, yet that compares with have got a job, 400,000 have found lasting work, and job the 90% success rate of all—not some of—the eligible outcomes after 12 months are nearly twice as high as people in Wales who apply, who move off jobseeker’s with the early cohorts, including the new employment allowance within nine months anyway. The reality is and support allowance claimants. Compared with the that this programme, on top of already successful previous back-to-work programmes—the flexible new programmes getting people into work, is less successful deal, for example—the Work programme has helped than the programme that it seeks to replace. Apparently, more than twice as many people into work in the first this is the programme that the Opposition want to copy two years than the flexible new deal, with nearly three and turn into a national programme in government, times as many people in jobs for six months. This is not and it is all a rehash of the future jobs fund. just getting people into work but ensuring that they stay In the public sector, this Government have achieved there—that is the critical element. the same success as the future jobs fund achieved through work experience in the private sector, but—here is the I will give way to the hon. Member for Coventry key—at a twentieth of the cost of what it cost Labour South (Mr Cunningham) and then make some progress. to provide jobs in the public sector. That is the problem with this make-work scheme. Mr Cunningham: The Secretary of State said that when the present Government took over, the economy Mr Barry Sheerman (Huddersfield) (Lab/Co-op): While was on a knife edge. I remember the previous Conservative the right hon. Gentleman goes on mudslinging about Chancellor claiming credit when we were in power for party policies, he is skimming over the fact that what is the handling of the economy. More importantly, the wrong with our economy and the jobs being created Secretary of State has not mentioned the fact that is that over the past five years we have had a terrible recently the purchasing power of wages has dropped by deficiency of highly skilled workers. We are still churning 6%. Wages might have gone up by 2% in the private out apprentices from short-term apprenticeships of a sector, but their overall purchasing power has dropped year, on average. That is not meeting the real need. by 6%. When is he going to address that? If he does not do so, he will never solve the problem of low productivity. Mr Duncan Smith: I am a little bit lost. I am not sure whether the hon. Gentleman is saying that the previous Mr Duncan Smith: I agree with the hon. Gentleman Prime Minister was claiming credit when he was Chancellor that that was the situation we inherited. As I said in the previous—[Interruption.] If he is referring to my earlier, under this Government there have been 2 million right hon. and learned Friend the Member for Rushcliffe new apprenticeships aimed at getting people the necessary (Mr Clarke), it is difficult for the previous Labour skills. There are also more people going to university Government to claim credit when their Chief Secretary and studying science. The reality is that it is not possible left a letter on the desk saying, “There’s no money left.” to turn around in a few years the problem mentioned by If the hon. Gentleman wants to claim credit for that, the hon. Gentleman, which followed 13 years of Labour I will certainly allow him to intervene. Government. We have set in train all of the right While the Budget proposed new measures to boost measures for the medium and long term to get more growth and support private sector job creation, in turn skilled people back into work. Before the hon. Gentleman increasing employment, the Opposition’s only alternative, sneers a little too much about people going back to the jobs guarantee, it now turns out, is more like a work, I want to say that they are far better off in work no-jobs guarantee—a make-work scheme that the Institute and working towards full-time pay than sitting on benefits of Directors has said is being depressed and worried. “not the source of sustainable jobs”. It is the kind of scheme that, for the past 20 years, the Mr Sheerman indicated assent. OECD has demonstrated is expensive and counter- productive in the long term. It says that large deadweight Mr Duncan Smith: The hon. Gentleman agrees with losses, displacement and substitution effects are of little me. The key point is that we want to get people into success in helping unemployed people to get permanent work, including skilled work, and for them to develop jobs in the open labour market. We got rid of the skills not only while they are in work, but as they come Opposition’s last scheme, which did not work, and this through apprenticeships and university. one will fare no better. Labour’s flagship programme is I want to return to the make-work scheme, because I just a rehash of the failed make-work schemes that have a feeling in my bones that the Opposition are seem to be its solution almost every time. beginning to slide away from it. They have failed to 1155 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1156 Situation Situation [Mr Duncan Smith] Given that the shadow Work and Pensions Secretary has herself declared that answer a number of questions. We have asked them “we need to make sure that the sums add up”, time and again how many private businesses have signed it is right that we do the maths, starting with the cost of up to the jobs guarantee, but we have never had an the jobs guarantee, an estimation of which was done by answer. We have been told endlessly that there is a lot of Treasury officials in January. The cost of the jobs interest, but we have never heard any examples. guarantee for 2015-16 is forecast to be £1.54 billion for I heard the shadow Chancellor on, I think, a Radio 4 over-25s and £540 million for under-25s. That is £2 billion programme and he seemed rather scared and unusually in total in one year alone, which is far more than the unable to be coherent. [Interruption.] All right, I will Labour estimate. Taking the small print of the document drop the “unusually”. He was unable to list the vast we found, even if the figure in it is halved, as the Labour number of private sector companies taking part. When U-turn seems to make clear that it will be, it is more asked how many there were, he seemed to lose his nerve than three times the £300 million a year that Labour and said: says it will cost, at close on £1 billion a year. “But if not, you can do it through the voluntary sector. If not, When the hon. Lady gets up to speak, I hope that she you have to have a final backstop: a public work scheme.” will explain how Labour will fund the jobs guarantee. If The shadow Chancellor has pretty much made it clear she is going to use the bankers’ bonus tax again, I must that the scheme is going to be about jobs created not in tell her that it has been spent 11 times over. Here are the the private sector, but in the public sector. [Interruption.] things on which it has been spent: reversing the VAT Oh no, it will not: the right hon. Member for East Ham increase—£12.75 billion; reversing the tax credit savings— (Stephen Timms) knows that to be the case. In other £5.8 billion; more housing—£1.2 billion; reversing the words, the Opposition would repeat the mistakes of the child benefit savings—£3.1 billion; more capital spending— past. £5.8 billion; child care—£800 million; and there are more. The last Chancellor, the right hon. Member for I hope that the hon. Member for Leeds West will Edinburgh South West, said that he did not think it answer another question we have asked the Opposition would be feasible to repeat the one-off bankers’ bonus time and again: how long will the guarantee last? Back tax, but the reality is that Labour will repeat it to pay in 2011, we heard about a 12-month guarantee for again and again for other things. young people unemployed for one year. By 2013, the Another announcement in the Budget was the excellent proposal had morphed into a six-month guarantee—half decision to reduce the tax-free lifetime allowance. It had the time previously advertised—for those unemployed already been reduced from the £1.8 million inherited for two years. Even that is not enough, for as Labour from Labour to £1.25 million, and it will now fall to begins to see what a disaster the policy is and the £1 million. The latest change will save about £600 million shadow Chancellor begins to wind away from it—there a year. Importantly, it will affect only 4% of those is no interest in it from private sector firms and it has no approaching retirement. That is in stark contrast to traction with business—they seem to be beginning to Labour’s proposal to reduce the tax-free annual allowance, realise that it is not worth all the money they are talking which would plunder the pension pots of moderately about spending. paid, long-serving public servants such as police officers, I had a look at the Labour website when it launched teachers, nurses and others. With the Government already its tuition fee policy. Interestingly, buried in the relevant taking effective steps to curb the size of the very largest document—I would like to say it was in the small print, pension pots—my right hon. Friend the Minister for although the print was pretty small anyway—I found Pensions has been involved in that—Labour’s proposed that the scope of the flagship jobs guarantee had been pension tax relief changes will be left null and void. halved again. This announcement was made without Despite the fact that Labour has committed the money fanfare and without anyone taking to the airwaves to for the purpose of increasing working and child tax tell everybody what a wonderful scheme it was going to credits and, very recently, to pay for the £3.1 billion cost be. Labour now proposes “a six-month job”—remember of lower tuition fees, it will apparently be used only to it was for a year originally— fund the jobs guarantee. As for Labour’s final funding “for any more 18-24 year olds who find themselves claiming proposal, restricting pension tax relief for those with Jobseeker’s Allowance for a year”. incomes of more than £150,000, it would not come in for a further three years. It also proposes “a three-month job”—it used to be for six months— Barbara Keeley (Worsley and Eccles South) (Lab): “for the over 25s out of work for two years”, Will the Secretary of State give way? not one year. In other words, Labour is edging back, killing off its policy bit by bit, and I suspect that Mr Duncan Smith: Not yet. I will finish this particular eventually it will let it go altogether. point before I move on to the rest of the stuff in the Following a Budget in which the Chancellor once Budget. again pledged that no spending commitments would be In this key area, the Opposition have absolutely no unfunded, the final and most significant unanswered idea what they will do. They do not have the money, question—I hope the hon. Lady will answer it, because they are losing interest in the very policy that they said this is her last opportunity to do so—is: how will the was at the heart of their policies and the rest has just jobs guarantee be paid for? That is a legitimate question, become smoke and mirrors. It is as simple as that. There for the Budget punched a hole in Labour’s two proposals we have it: the cobbled-together nonsense of Labour’s with two new measures: the first to levy funding from jobs guarantee is destined to fail as wholly unfunded. the banks and the second to restrict pensions tax relief. Yet we should not be surprised by that from a party 1157 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1158 Situation Situation which built an entire economy on debt, with policies accommodation? Why does she not apologise for paid for by more borrowing and higher taxes. Under leaving so many people, when Labour left office, in Labour, Britain accumulated personal debt of a record overcrowded— high, reaching some £1.5 trillion, while the level of household saving fell to a 50-year low. Barbara Keeley rose— Mr Ronnie Campbell (Blyth Valley) (Lab): Will the Secretary of State give way? Mr Duncan Smith: No, she has had her word. Why does she not apologise for leaving so many people in Barbara Keeley: Will the Secretary of State give way? overcrowded accommodation? Labour Members do not apologise for that. The answer is that they have no policy on that. Social house building under the Labour Mr Duncan Smith: In a minute. Government fell to the lowest level since the 1920s. She This Government are restoring stability in our economy, should get up and apologise for that. with no unfunded spending and no extra borrowing; instead, aspiration, responsibility and security will pave the way for a better future. The principle behind the Barbara Keeley: I thank the Secretary of State for Budget is to restore a Britain built on savings and giving way, eventually. Perhaps he would like to look at investment, and that will be done with three new measures. the case of the couple in Sefton—the disabled person There is a radical, more flexible individual savings account, and her carer—who have fought their case through to with the complete freedom to withdraw money from a the Supreme Court. The Prime Minister was unable to cash ISA and pay it back later in the year without losing give an answer about that couple. It is not a question of any of the £15,000 tax-free entitlement. There is the such couples giving up their home or their spare room brand-new Help to Buy ISA: we are working hand in to anybody else. Carers find those rooms essential. That hand with first-time buyers to help them to save for a couple found their room essential. The Prime Minister home—£3,000 will be provided by the Government for could not answer. Will the Secretary of State answer? every £12,000 saved—which is an excellent idea. There is a new personal savings allowance, with up to £1,000 Mr Duncan Smith: That is exactly the reason why we interest-free. It will take 17 million taxpayers out of gave £380 million to local authorities to deal with savings tax, not just cutting but abolishing that tax for individual cases. The courts have supported us in this. 95% of people. Again, the hon. Lady did not get up and apologise for On pensions, the Government have already reversed the mess Labour left social housing in: overcrowded the decade-long decline in pension saving, rolling out accommodation, people who could not find the right automatic enrolment to make saving the norm and houses, people on huge waiting lists for accommodation introducing the new state pension, while reducing the and the lowest level of house building on record since means test and creating a solid foundation on which to the 1920s. That is the shame of the 13 years of the last save. We are returning to people who build up their Labour Government. pension pots the freedom to use that money as they see I spoke a moment ago about the pension freedoms fit. In last year’s Budget, the Chancellor announced that have been provided. The last pension freedom that radical changes to abolish the prescriptive rules that has been provided by my right hon. Friend the Chancellor dictated how and when people could use their pension is to allow 5 million annuity holders to access their savings. That means that from April, 320,000 people a existing annuities. I pay tribute to my right hon. Friend year will be able to choose what to do with their pension the Minister for Pensions because that was originally savings on turning 55. In last week’s Budget, he went his idea. It shows that the coalition is working at all further still by allowing 5 million annuity holders to levels. access their existing annuities. He has extended the It pays to save and, through our welfare changes, this freedom to give those people greater control over their Government have ensured that it pays to work. We have finances, which is an excellent idea. undertaken the most significant reforms in living memory, which span not only pensions but job-seeking benefits, Barbara Keeley: One group of people who do not disability benefits, child maintenance and more. They have much chance to accumulate pension pots is unpaid have been opposed at every turn by the Opposition. We family carers, many of whom have to give up work in are delivering a welfare state fit for the 21st century. order to care. Will he say, at the end of this Parliament, whether he regrets forcing 60,000 unpaid family carers Universal credit is rolling out nationally. It is already to pay the bedroom tax, meaning that not only can they in 150 areas and is set to be in every jobcentre by this not acquire pensions, but many of them are having to time next year. The earliest claimants are spending cut back on food and heating to pay it? more time looking for work, are moving into work quicker, are working more and are earning more than Mr Duncan Smith: The spare room subsidy policy those on jobseeker’s allowance. It will bring economic that we introduced has been assisted by some £380 million benefits of up to £35 billion over 10 years, as the Public that we have given to local government to ensure that Accounts Committee agrees. anybody in the local community is supported and The benefit cap has ended the something-for-nothing aided, as necessary. I do not regret that policy. I think it culture. Capped households are 41% more likely to will bring fairness to social housing. Why does the hon. move into work and 12,500 have done so. Housing Lady not get up one time and answer this question: benefit is capped too. There has been the first real-terms does she not feel ashamed about leaving so many fall in housing benefit spending in a decade and it is set people—7 million people—on long waiting lists for to carry on falling in real terms up to 2020. Our reforms 1159 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1160 Situation Situation [Mr Duncan Smith] People are putting in the hours at work but still falling behind with the rent and the bills; they are desperate to are restoring fairness and mean that we are making work and earn, but are not getting the support they better use of Britain’s housing stock as we build more need to find a job. People who cannot work because houses. they are sick or disabled are forced to turn to food Over this Parliament, the increase in welfare spending banks because the safety net is being pulled away from has been the lowest since the creation of the welfare them. state at 0.5% a year compared with the 3.5% increase in The people of our country have been put through five Labour’s last Parliament in office. Total welfare spending years of hardship by this out-of-touch Government, is below what we inherited in 2010 as a proportion of and they are still waiting to feel the benefits of what has GDP. In the coming year, out-of-work benefit spending been the weakest recovery in more than 100 years. Five will be back to pre-recession levels. Welfare reforms are wasted years in which working people have put in the set to have saved nearly £50 billion cumulatively, all hours, day after day, year after year, only to find themselves while departmental baseline spending is down—I say £1,600 a year worse off than when the Government this to the Chief Secretary to the Treasury—by some took office. Five wasted years in which families have £2 billion a year. He can say “well done” if he likes. We been hit by tax and benefit changes that cost the average are doing more, and we are doing more efficiently as a household more than £1,100 a year, only to find that the result. Government have borrowed £200 billion more than As we come to the end of this Parliament, I am proud they said they would and have totally failed to deliver of the work we have done with my right hon. and hon. on their central promise to balance the books. Five Friends in this House. I pay tribute to some of my wasted years in which people have been told “We are all previous Ministers, including my right hon. Friends the in this together”, while the Government prioritised tax Members for Epsom and Ewell (Chris Grayling), for cuts for millionaires and came back time and again to Basingstoke (Maria Miller) and for Hemel Hempstead take money from the poorest. Five wasted years in (Mike Penning), and my hon. Friend the Member for which a Secretary of State for Work and Pensions has Fareham (Mr Hoban), as well as to current Ministers, waxed lyrical about his grand scheme for welfare reform, including the Minister for Employment, who has done but all he has delivered is delays, backlogs, write-offs brilliantly in her job, and the Minister for Disabled People, and overspends—a record of Tory welfare waste that who is doing brilliantly in his. I pay particular tribute to we cannot stand for another five years. an hon. Friend who is unsung and unfairly traduced by Let us remind ourselves of the backdrop to this the Labour party: my good friend Lord Freud. He has Budget and of the complacent and self-congratulatory worked tirelessly for two different Governments, determined speech we have just heard from the Secretary of State. only on one thing, which is to improve the quality of life The Chancellor promised in 2010, for people in Britain. I am also proud of my working “we will bring down the benefits bill.” relationship and what has been achieved with the Minister Since then we have had five years of cruel and unfair for Pensions. We have worked well together and achieved policies: taking money from the pockets of disabled good things, and we have also worked closely with the people through the bedroom tax; taking money from Chief Secretary to the Treasury on many subjects. working families with restrictions to tax credits; driving The last five years have often been hard and difficult, hundreds of thousands of people to food banks to feed but always rewarding. We took a system that was bloated their families; and increasing the number of children in and unfair, and which under the previous Government absolute poverty by 500,000. And yet, at the beginning seemed to penalise those who tried and rewarded those of this year, the Institute for Fiscal Studies confirmed who did not. The last Government left us a system that that measured only the amount put in and not the results “Real terms benefit spending…is forecast to be almost exactly obtained, and it trapped many in dependence. We took the same in 2015–16 as it was in 2010–11”. that system and changed it for the better, leaving a positive legacy: the deficit down, unemployment down, Why is that, we may ask, after the Government have youth unemployment down, long-term unemployment inflicted so much hardship on so many people who have down, employment up, private sector work up, working the least? It is because, the IFS explains, these harsh and households up, growth up. That is a legacy of which any unfair policies have been cancelled out by upward pressure Government of any stripe should be proud. This Budget on the benefits bill resulting from is key to that legacy, and I commend it to the House. “weak wage growth and rising private rents”. Meanwhile, it says, most of the major structural changes, 5.41 pm such as universal credit, have run into problems and are yet to be delivered. This is the reason why, in the past Rachel Reeves (Leeds West) (Lab): I thank the Secretary five years, the Government have spent £25 billion more of State for his valedictory address this afternoon, and I on social security than they said they would in 2010. It hope that this will be my last speech from the Opposition is why, yet again, the small print of the Budget reveals Benches. another £600 million overspend this year against last The last five years have been a tragic and terrible year’s forecasts. waste for working people in this country, and a shocking record of Tory welfare waste at the Department for Stephen Doughty (Cardiff South and Penarth) (Lab/ Work and Pensions. What a wasted opportunity this Co-op): My hon. Friend is making some incredibly Budget was to put in place the better plan that we need. strong points. On low wage growth, does she agree that People in my constituency—and in every constituency we have seen particular challenges in very low paid around the country—have been let down yet again. sectors, such as care? Not only are carers struggling to 1161 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1162 Situation Situation get by on very low wages and struggling with the cost of soaring spending on in-work benefits because of this living, we are seeing the minimum wage being undermined Government’s failure to build an economy that actually and some companies possibly not even paying it. Allegations rewards hard work. have been made this week about MiHomeCare in Penarth in my constituency. The Government are failing to Mr Duncan Smith: The hon. Lady talks about what enforce the minimum wage. she calls soaring benefit costs. Does she accept that under her Government not only did in-work benefits Rachel Reeves: We know that still too many people rise by more than 50%, but housing benefit for those are not even paid the minimum wage, and we know that out of work rose by 70%? In other words, both in-work the number of people paid less than the living wage has and out-of-work housing benefit claims rose dramatically increased from 3.4 million to 4.9 million in the past few under her Government. years. It is also true that we need to do more to ensure the minimum wage is always enforced, which is why we Rachel Reeves: Under the last two Conservative have said we would increase fines for non-payment to Governments, unemployment reached 2.5 million. There £50,000 and why we would give more powers to local was a global financial crisis during the period of the last authorities to ensure that the minimum wage is always Labour Government, and as a result, unemployment paid. rose, but it has risen even further under this Government, from 1.5 million, when Labour left office, to 1.7 million Mr Robinson: Will my hon. Friend confirm what the in February 2012. The OBR’s Budget forecast last week Secretary of State failed to confirm? What she has showed a £600 million increase in the forecast for social clearly exposed this afternoon, supported by an earlier security spending in just one year, and since 2010, the intervention, is that there have been 1.8 million zero-hours Government have spent £25 billion more on social contracts in the past five years. As a consequence, security than they set out to spend. tax and national insurance receipts are, cumulatively, Under the Government, the number of people paid £100 billion below the Government’s own projections. less than the living wage has soared by 44%, while house That is at the heart of the problem. building has fallen to its lowest levels since the 1920s. It is for those reasons that housing benefit spending—the Rachel Reeves: My hon. Friend is right. Income tax second-largest area of DWP spending, after pensions—was and national insurance receipts have fallen short of more than £2 billion higher in 2014-15 than in 2009-10. forecasts by a staggering £97 billion in the life of this It was due largely to the rocketing numbers of working Parliament. As he makes clear, too many people are people not paid enough to cover their rent. In this working on zero-hours contracts or in very low-paid Parliament, the Secretary of State has spent £1.8 billion jobs where they just cannot make ends meet. more than he planned on housing benefit for working people and, on current Government forecasts, the cost of working people’s rising reliance on housing benefit Mr Sheerman: As a fellow Yorkshire Member of to pay their rent will reach £14 billion by the end of the Parliament, does my hon. Friend share my anger that decade, if left unchecked—£488 for every household in despite all this bland talk about the success of the the country. economy and the success of the welfare system when it is actually being destroyed, in my town—and probably Miss Anne McIntosh (Thirsk and Malton) (Con): I in hers—30% of people working are on low wages? It is think there is some common ground behind us, particularly women and families with children who are being particularly on zero-hours contracts for women who choose to work hard hit. part time, but could the hon. Lady not congratulate the Government on regulating part-time zero-hours contracts, Rachel Reeves: My hon. Friend is right to talk about especially given that the Office for National Statistics the experience of people in his Huddersfield constituency. has knocked the figures Labour used? This is often People in Huddersfield, Yorkshire and around the country something that working mothers choose. will, I think, be slightly shocked by the degree of complacency from the Secretary of State today and Rachel Reeves: According to the ONS, the number of from the Chancellor last week, when for them and their zero-hours contracts has increased from 1.4 million to families things are very often getting harder, not easier. 1.8 million in the last year. This is a huge challenge for The Government have failed to control social security working mothers and others. We want to ban the spending, as they promised they would, because they exploitative use of zero-hours contracts so that if someone have failed to tackle the true causes of rising welfare does regular hours, they will be offered a regular contract spending, such as low pay and the lack of affordable and so that their hours cannot be cancelled at the last housing, and because they have failed to deliver the minute without compensation. If we make those changes, flagship reforms the Secretary of State made such great I hope we can stem the increase in the number of claims for five years ago. What a tragic waste of time, zero-hours contracts, giving more people the security of talent and taxpayers’ money: wasting the precious time paid work they know will happen week after week. of sick and disabled people forced to wait for months on end for the support they so desperately need; wasting Barbara Keeley: I want to give an example from the the talents of people who are not getting the help they social care sector to add to that given by my hon. Friend need to get into work, or who are stuck in low-paid the Member for Cardiff South and Penarth (Stephen insecure jobs that my hon. Friends have spoken of that Doughty). I recently spoke to a constituent working in do not make the most of their potential; and wasting the care sector whose job decayed over the years after money on IT systems that do not work, assessment and an agency took over the firm she worked for, to the appeals procedures that have descended into chaos, and point where, instead of working the 35 to 40 hours a 1163 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1164 Situation Situation [Barbara Keeley] “revised down the savings associated with tax credits operational measures. These increase spending by £0.2 billion a year between week she wanted, she was lucky if she got 20 hours a 2015-16 and 2019-20”; week, and the agency constantly cancelled at short notice. and more of the “good news” culture on welfare reform, She could not manage from week to week with that. with the OBR noting on page 192 that Sadly that is the care industry these days. “we have noted a history of optimism bias relating to reforms to incapacity benefits, disability benefits and universal credit.” Rachel Reeves: My hon. Friend speaks powerfully “Optimism bias” is a polite way of saying that we about something she knows a lot about. The number of cannot trust a word the Government say. zero-hours contracts in the social care sector, and more In a moment of optimism bias, the Secretary of State widely across the economy, has grown. It is incredibly promised that 1 million people would be on universal difficult to plan from week to week if someone does not credit by April 2014, but one year on, fewer than 41,000 know how much money they will take home or whether people are claiming it. In another moment of optimism they can afford to pay the rent and bills and put food on bias, he promised that universal credit would be on time the table. That is why more people in work are having to and on budget, but with delay after delay and millions rely on food banks to make ends meet. of pounds written off, everyone knows that it is neither I move now to key reforms that have spun out of on time nor on budget. In yet another case of the control under the Government. Universal credit was Government’s optimism bias, they promised to back supposed to cut fraud and make work pay, but after five carers but then forced 60,000 households with carers to wasted years of this Government and more than half a pay the bedroom tax, as my hon. Friend the Member billion pounds of taxpayers’ money spent, it is being for Worsley and Eccles South (Barbara Keeley) mentioned. paid to just 41,000 of the 1 million people who were Was it not optimism bias that led the Chancellor to supposed to be receiving it last April. The National promise to reduce the benefit bill, only for the Government Audit Office has identified a fortress mentality and a to spend £25 billion more on social security than they “good news” reporting culture in the Department as set out to spend? And perhaps optimism bias is why the key factors behind this fiasco. Last summer, the Secretary Chancellor broke his promise to clear the deficit by of State promised an accelerated roll-out plan, but we the end of this Parliament. have yet to see much evidence of it—things could not be going much slower. Christopher Pincher (Tamworth) (Con): Is the hon. The Work programme—another failed programme—was Lady’s muddled jobs guarantee an example of optimism the Government’s belated and inadequate replacement bias? for the future jobs fund they scrapped, but it has failed to tackle long-term unemployment. Indeed, the number Rachel Reeves: Labour’s jobs guarantee would help of long-term unemployed people has risen by a staggering 150,000 people get into work in the first year of a 49% since 2010. It still sends more people back to sign Labour Government. I am optimistic that we can transform on at the jobcentre after two years than it places in a job the lives of young people and the long-term unemployed, and has made no impact on the disadvantaged and unlike this Government, who have left them on benefits. high-risk unemployment faced by over-50s and disabled Funded by a repeat of the bank bonus tax they abolished people. The introduction of personal independence and by restricting pensions tax relief to 20% for people payments has also been a complete and utter shambles, earning more than £150,000 a year, our compulsory leaving sick and disabled people waiting months on end jobs guarantee will help young people who have been for support, while total spending has gone over budget unemployed for a year and older people out of work for by more than £2 billion. The roll-out of employment two years. Should that not be our priority, rather than and support allowance was supposed to deliver big tax cuts for bankers? savings by helping more disabled people into work, but just 8% of people on ESA have been helped into work The Budget also reforms the rules governing pensions by the Work programme. Furthermore, analysis by the and annuities. The Opposition have long called on the House of Commons Library shows that the Secretary Government to sort out the failing pensions and annuities of State has spent £8.6 billion more than he said he markets, which result in too many hard-working savers would on ESA. What a mess and what a waste—five finding their retirement pots eroded by excessive fees years of Tory welfare waste we needed this Budget to and poor-value products. So we welcome more freedom put an end to. for savers to choose how to access their money and plan their retirement. Just as with last year’s announcement, The Budget was a wasted opportunity. We needed a we find the same failure to ensure that savers and better plan to make work pay and get social security pensioners have the support and protection they need spending under control, but instead the report of the to secure a decent and reliable income and to avoid the independent OBR confirmed that all we could expect rip-offs that are already threatening to create another from the Government in the future was more of the mis-selling crisis. same: more unplanned spending on social security and more failure to deliver promised savings on disability Just this weekend, we learned that with fewer than and sickness benefits, with the OBR noting on page 143 two weeks before the reforms announced in last year’s that Budget come into effect, there is still no telephone number for the promised advice service, Pension Wise, “projected spending on incapacity benefits, DLA and PIP is up leaving hundreds of thousands of savers exposed to by £0.2 billion a year on average between 2014-15 and 2019-20”; scams that could have a devastating effect on their more failure to deliver promised savings on fraud, with retirement plans. Instead, we have the ridiculous spectacle the OBR reporting on page 191 that it had of the Pensions Minister trying to wash his hands of the 1165 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1166 Situation Situation responsibility by warning of the rip-offs that will result— —1.5 million fewer, two thirds of them women. That is without doing a single thing properly to protect people a real lost opportunity to ensure that those people who from those risks. should be saving are actually saving. What this Secretary of State and the Government he Ms Gisela Stuart (Birmingham, Edgbaston) (Lab): speaks for simply do not understand is that their failure Any decisions about annuities are extremely complex to make work pay and to deliver a recovery that raises decisions to take. Failing to get the advice lines up and living standards for all is the root cause of their failure running is not just a fault on the part of this Government, to control social security spending and balance the it is negligent. It is negligent to allow people this freedom books as they promised. They have spent £25 billion without providing them with any back-up to help them more than they planned and their receipts from income make the right decision. What is more, there is no tax and national insurance have, as has been pointed thought given to the remedies if the decision they take is out, fallen short of forecasts by a staggering £97 billion wrong. over the life of this Parliament. It is because of that failure that, in order to deliver his Rachel Reeves: When the Chancellor spoke in the objective of a large surplus in the next Parliament, the 2014 Budget he said that people would be given “advice”, Chancellor has now committed to even deeper spending which was then watered down to “guidance”. Now, cuts over the next three years than we have seen over the with two weeks to go, we know that nobody has received past five years. The Office for Budget Responsibility this guidance, yet people will be making irreversible confirms that these plans will mean decisions about their retirement income. “a much sharper squeeze on real spending in 2016-17 and 2017-18 This Budget has been more of the same from the than anything seen over the past five years”, same old Tories: more overspends, delays and missed and targets on social security; and more big promises for savers and pensioners that are not backed up with the “a sharp acceleration in the pace of implied real cuts to day-to-day support and the protections we need to make these spending on public services”. reforms work. My right hon. Friend the Member for Morley and Outwood (Ed Balls)and my hon. Friend the Member The Minister for Pensions (Steve Webb): The hon. for Nottingham East (Chris Leslie) have highlighted the Lady is concerned, as we are, to make sure that consumers threat this poses to police, defence and social care. Is it get good value. She has proposed a cap on charges for not the truth that the Chancellor’s extreme fiscal plan these new pension products. Presumably, she thinks the can be delivered only by putting our NHS at risk or cap should come in straight away. What should it be? imposing yet another Tory rise in VAT? Although it is hard to see how this Government can make the extra £12 billion-worth of cuts to social security spending Rachel Reeves: We have said that there should be a when they have failed to deliver any savings in social cap on fees and charges—not just for the annuities security so far, these cuts could not be delivered without products, but for the new drawdown products. We think inflicting unimaginable hardship on low-paid workers, it should be at the same level as the Government have children in poverty, disabled people or carers. set out, but then reduced over time. In that way, we will ensure that savers get value for money. Unless we do So for this Government, this empty Budget will be a that, more people will be ripped off. Unfortunately, fitting epitaph. What of this Secretary of State who despite all the Government’s rhetoric, they have not wanted to take his place in history as the compassionate taken action to protect people’s retirement incomes. Conservative who reformed welfare? His time is up and his record is clear: major reforms undelivered or descending What we have heard from the Secretary of State into costly chaos; food banks in every town and child today is the same complacency and self-congratulation. poverty back on the rise; more and more spending on Yes, of course we welcome any fall in unemployment, in-work benefits as more and more working people find but it was this Government who allowed unemployment their wages do not cover the rent. No wonder the OBR to soar to record levels in the first place, peaking three says that the Government are guilty of “optimism bias”. years ago in February 2012 at 1.7 million. Under this Government, the number of long-term unemployed, abandoned to a life on the dole, has risen by 49%. That Mr Jim Cunningham: One important factor in looking is why Labour will have a compulsory jobs guarantee. at low pay, child poverty and similar issues is that many people’s employment rights are eroded. We need only to look at City Link in Coventry to see that more than Richard Graham (Gloucester) (Con): The hon. Lady 1,000 people could not even get any redundancy pay made a number of comments about the prices and because of the erosion of employment laws under this charges that should be levied on pensions. Will she Government. That only adds to the poverty. confirm that the price cap that has been levied on auto- enrolment pensions is, in fact, half that of the amount levied on stakeholder pensions when her Government Rachel Reeves: I thank my hon. Friend for that were in power? intervention. Of course, this Government have made it harder for people to access justice, too, through the cuts Rachel Reeves: We introduced a cap on charges for they have made there. stakeholder pensions and the automatic enrolment brought We have had five years of Tory welfare waste—and it in policies for which Labour had already legislated. We is high time we put it behind us. The Secretary of State are proud of automatic enrolment, but we disagree with wanted universal credit to be his legacy, but it is being the changes that this Government introduced, which paid to less than 4% of those who were supposed to be mean fewer people are benefiting from automatic enrolment receiving it a year ago. Instead, this Secretary of State 1167 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1168 Situation Situation [Rachel Reeves] I also congratulate the Treasury team on the type of Budget that we have been given. I am relieved and will be remembered for the hundreds of thousands of delighted that it was not a gimmicky Budget, and that disabled people hit by the bedroom tax; for the 1 million we did not see one of those foolish attempts to start people forced to resort to a food bank to feed their buying votes with populist measures. Chancellors who families last year; for the 3 million low-paid working are facing elections are always besieged with requests families who have been hit by this Government’s cuts to for them to do unbelievably silly things in the belief that tax credits. We cannot afford another five years of this the public will respond by voting for them, but the Tory Government. public are usually far more sensible than most of the This could have been a Budget to make work pay, journalists and most of the politicians, and have never with a plan to raise the national minimum wage to £8 an responded to such measures in the past. Admittedly, hour and measures to promote and incentivise the both the right hon. Member for Edinburgh South West living wage. This could have been a Budget for mums (Mr Darling) and I eschewed that type of Budget, and dads who want to work and earn more, with because we were producing the last Budgets for 25 hours a week of free child care for all working Governments who on any sensible view were doomed to parents of three and four-year-olds and guaranteed be defeated at the next election, but we did what has wrap-around care for those with children at primary been done on this occasion. It is not a question of the school. This could have been a Budget that gave relief electoral purpose; it is a question of the national interest. to working families on low incomes, by scrapping the A sensible, competent, prudent Budget is in the national ill-conceived and unfair married couples tax allowance interest, and gives us the best opportunity to deliver and using the money to introduce a 10p starting rate of what we hope to deliver over the next five years. income tax instead. This could have been a Budget to create more of the productive, well-paid jobs we need Sir Edward Leigh (Gainsborough) (Con): In her by backing entrepreneurs, small businesses and the peroration, the hon. Member for Leeds West (Rachel growth industries of the future, with a cut to business Reeves) produced a great, long shopping list of things rates, a proper British investment bank, and new powers that could have been done in the Budget. “It could have devolved to every city and county region across the been a Budget” for this, that and the other. Would not country. the best response to the hon. Lady be “It could have been a Budget to bankrupt Britain if Labour were in This could have been a Budget to secure our NHS for charge”? the future, with a tax on properties worth more than £2 million to pay for the thousands more doctors, Mr Clarke: I think that it would. Blatantly going nurses, midwives and home care workers that our health around telling people that their pay will go up and that service desperately needs. This could have been a Budget expenditure will be increased in a number of instantly that began to right the wrongs of the past five years, by popular ways, along with Labour’s earlier promises to tackling the tax loopholes and reversing the tax giveaways start ordering companies to reduce the prices of sensitive that have benefited a few and by cancelling the cruel products in highly volatile markets, is totally irresponsible. and unfair bedroom tax that is hitting disabled people I hope that, were the population so foolish as to return a so hard. All that is not just the Budget that this could Labour Government in six weeks’ time, their policies have been; it is the Labour Budget that we can have and would be hastily abandoned when they found themselves the Labour Budget that we will have if we elect a confronted with the realities of power. Labour Government in just 45 days’ time. In basic terms, this is a fiscally neutral Budget, which Several hon. Members rose— is plainly what was required. During Budget debates, we used to spend more time discussing the Budget judgment, Mr Deputy Speaker (Mr Lindsay Hoyle): Order. Due and on this occasion that judgment was “fiscally neutral”, to the large number of right hon. and hon. Members which I think has been widely applauded. That does not who wish to speak, there will be a time-limit for all mean that the Budget is devoid of significant measures, Back-Bench speeches. There will be 10 minutes for the including measures that will have a considerable impact first two Back Benchers and five minutes for each on the rest of the human race—the ordinary men and remaining speech thereafter. women out there who have ordinary, moderate incomes. I am rather surprised that so little attention has been paid to the wider impact of another rise in personal 6.9 pm allowances, which will not only have the welcome effect Mr Kenneth Clarke (Rushcliffe) (Con): I congratulate of taking the very low paid out of tax altogether, but my right hon. Friend the Chancellor, the Chief Secretary will have a big impact on the great bulk of the population and the rest of the Treasury team on the Budget. I also who are receiving perfectly ordinary pay. Some 27 million congratulate them, even more emphatically, on the people will benefit, and average taxpayers will be better extraordinary record of the last five years which enabled off by £900 million a year. a Budget of this kind to be presented. I think it must be However, so that the Budget could remain fiscally acknowledged that we took over a worse situation in neutral, that easing of the problems of the ordinary 2010 than any Chancellor had taken over since the war. population has been balanced and financed by a rather It was even worse than the winter of discontent in 1979. eye-watering increase in the bank levy—which I think is I have not looked up the debate on that first Budget, but a perfectly sensible way of raising money now that the I believe that our present position would then have been banks are on their way to recovery—and a further beyond the wildest dreams of most Members on either reduction in tax relief on the pension contributions of side of the House. That is why this Budget gives us such not the very wealthy, but the better off. They can build a firm foundation for making further progress. up a pension pot of £1 million, which is not to be 1169 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1170 Situation Situation sneezed at; they have secure jobs, are making contributions, The hon. Member for Leeds West keeps criticising and have plans for their retirement. How that measure the Chancellor for not succeeding in eliminating the can be characterised—as the activities of this Government deficit entirely in the last five years. I am very glad that often are—as helping the rich at the expense of the poor he did not do so. It is the same with all forecasts— and ignoring the demands of the ordinary man, I [Interruption.] It is not possible to find a Chancellor cannot imagine. It is the banks and the better off whose who has produced forecasts that are three, four or five taxation has been raised, and the ordinary man and years out and which resemble what actually happened. woman whose income tax has been lowered. That shows It is necessary to take account of what is happening in that free-market economics can be combined with a the real world. Macro-economic policy has to be pragmatic. social conscience, which I have always believed is the I cannot tell what will happen over the next five years, best guiding principle for the Conservative party when and nor can any Opposition Member. Will China actually it is running the macro-economic affairs of the country. have a soft landing? What will happen to the oil market? There are also further measures—which, again, will Is the recovery in the United States really sustainable? not create pleasure among all the rich—to deal with tax Will the eurozone begin to achieve a bit more growth avoidance, of which a great deal has been made. On this this year and beyond? What about difficult emerging occasion, they mostly involve corporate tax avoidance. markets like Brazil? The fact is that we are part of a My right hon. Friend the Chancellor has set a very globalised economy—quite apart from the impossibility ambitious target for the future—he is aiming to get of forecasting with exactitude what will happen here. another £5 billion out of tax avoidance—but he has already introduced a general tax avoidance measure in The Chancellor has cut the deficit substantially, and the Finance Act 2012, which has had an enormous has moved nearer to getting it under control. Had he impact on what we can do. We have agreements in the moved at a faster pace, heaven knows where we would G20 and with Switzerland and Liechtenstein, and it is be now, but we would be in a very difficult situation. now impossible to hide money in the way that caused a Actually, I do not know whether the Labour party scandal recently, when it was discovered that in 2007, thinks that he should have moved faster or more slowly, under the last Government, thousands of British taxpayers but I am sure that it is not capable of maintaining were finding it easy to evade tax abroad. That is not progress. I hope that we can achieve a surplus in the favouring the rich. The present Government have done next Parliament—and so, obviously, does the Chancellor— far more to tackle tax avoidance and evasion, and to but that will depend, again, on whether circumstances make the raising of revenue more efficient, than any of permit us to do so. In five years’ time, we shall find out their predecessors for 20 years or more, including the whereweare. Government in which I served. Looking back, I have to Meanwhile, having that kind of responsibility is an concede that. essential precondition to raising our educational standards I do not have time to go into all the other measures and continuing to tackle the skills shortages which that have been introduced, but ending the annuities always slow up the British economy—we are making racket and giving more flexibility to those who are great progress with apprenticeships, and we have much saving for their retirement and their old age, so that they further to go. At last we are beginning to see business can make more use of their own resources, is a major investment come through, with more confidence and, I social reform, on which I congratulate the Government hope, improved credit for businesses. That should pave and the Pensions Minister in particular. All that has the way for the productivity growth that we desperately been taken further in the Budget, together with our require. We need infrastructure investment, which the drive to help business. That is very important: we have Government are pressing on with. We need the EU to be pro-business. We are trying to revive the economy reforms, which the Prime Minister was talking about through lower corporate taxation and more extension earlier. If we can complete the single market—if we can of investment allowances, and by easing the tax burden extend it to services, if we can have a common energy on North sea oil. This Budget is an extremely responsible market, if we can have a common market for the digital package, and it bodes well for the future if we are economy, if we can have an EU-US trade agreement—all returned to office. that will reinforce the efforts of the Government to put this country in a much better position than any other to The debate has been dominated by extraordinary look optimistically to the future. arguments about deficits: the size of deficits in the past, the size of deficits now, and where the deficit will go in If we were in the world of traditional politics of 30 or future. Most of those arguments are based on strange 40 years ago, this Government would be on a walkover interpretations of statistics or wild over-reliance on in this election, producing figures to die for after taking forecasts that are at least five years out, which has over a disaster. We still have to rise above the cynical reduced the debate to a rather simplistic level. I agree— comedy of today’s protest politics. This Budget shows indeed, it is absolutely fundamental—that tackling the that a competent Conservative Government can finish problems of debt and deficit is an essential pre-condition the job— of putting the disasters of 10 years ago, and since, behind us, and paving the way for a modern, competitive Mr Deputy Speaker (Mr Lindsay Hoyle): Order. economy in future.

Mr Jack Straw (Blackburn) (Ind): Will the right hon. 6.21 pm and learned Gentleman give way? Mr Alistair Darling (Edinburgh South West) (Lab): I Mr Clarke: No, I will not, because, with great respect continue to admire the humour and chutzpah of the to the right hon. Gentleman, it would not be fair to the right hon. and learned Member for Rushcliffe (Mr Clarke) 30-odd other Members who wish to speak. in delivering that speech. 1171 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1172 Situation Situation [Mr Alistair Darling] could safely and realistically do. The Chancellor—the shadow Chancellor at that time—said that that was Thank you, Mr Deputy Speaker, for allowing me to woefully inadequate. But what was woefully inadequate make what I am pretty certain will be my last speech in five years ago was announced as a personal triumph last this House; I am very grateful to you for that. I will not week. He has managed to do what I said we could do, follow on from the comments of the right hon. and but he somehow says it is a great triumph on his part learned Gentleman, although I will return to some of and something we should be grateful to him for. the points he made, and nor will I follow on from what Let us look at what the Chancellor has actually done the Secretary of State for Work and Pensions said, in relation to borrowing. He announced last week that except by saying this: I agree very much with what my at long last borrowing was on a downward curve. Every hon. Friend the Member for Leeds West (Rachel Reeves) Budget he has ever presented shows borrowing on a said in relation to annuities. Here we are, days away downward curve. The difference between this Budget in from people being able to choose what they do with 2015 and the Budget in 2010 is that it is on a downward their annuities, yet we hear that we are still to recruit the curve all right, but he is borrowing three times more people who are going to be giving the advice—let alone than he expected to borrow in 2010 because the economy training them and let alone members of the public slowed down so badly in 2011-12. being able to access that advice. The only thing the Secretary of State did was lay off some of the blame on As for debt, we all expected that it would be shown to his Liberal Democrat colleague—so when the inevitable that we were not going to hit the Chancellor’s original inquiry starts as to why these things were mis-sold, we target of debt reducing as a share of national income by know where the blame will be apportioned. 2015, and that was what was expected from his autumn statement in December, yet, lo and behold, last week I draw the House’s attention to my entry in the suddenly he was meeting his target, by a minuscule Register of Members’ Financial Interests, but I want to amount—coming from 80.4% to 80.2% of GDP. Why focus on the Budget as a whole. The most notable thing was that? It was not because of some economic miracle. in the report by the OBR—it has done a very good job It was because he looked around the Treasury cellars over the last five years—is in the second paragraph, and found assets he could sell, one of them being a where it says that the Budget is not expected to have any thing called Granite, which is an absolute monster of material impact on the economy. Call me old-fashioned, financial alchemy. Northern Rock produced it, into but I thought that was what Budgets were for. which it fed sub-prime mortgages, and the more sub-prime The reason why the economy was growing in 2010—and they became, the more mortgages had to be fed into this it was growing in 2010—was because of the measures thing to keep it going. After five years it is, of course, we put in place in 2008 and 2009 to stop a recession possible to manage these things and get them to come becoming a depression. The Chancellor last week and right, and that is why the debt is coming down—because the Secretary of State today implied that nothing particular he is selling off this asset—yet even the OBR says it is had happened at that time, but we came within hours of highly uncertain whether or not this target will actually the banking system collapsing. That is why we were be met. So when we look at what the Chancellor said on facing such a difficult set of economic circumstances by the causes of where we are now and what he has done 2008-09, and it took a Government committed to doing over the last five years, I have to say his credibility and something about it—our Government—to make sure track record are not as great as he would have us believe. our economy was growing again in 2010. Sadly, what On the public expenditure figures of last week, the happened after that was that the economy slowed down, OBR has described the Chancellor’s spending profile as to a large extent because of the rhetoric and the fact a rollercoaster. If we want to go on a rollercoaster, we that the current Government chose to trash what was go to Disneyland, not the British economy. Anybody happening and mendaciously claim we were like Greece, else whose plans had been described as a rollercoaster and as a result the Chancellor’s public spending figures would have hung their head in shame. What sort of are now way off what he planned in 2010. planning can people put in place when they have no idea what is going to be spent? We have the absurd Mr Straw: Does my right hon. Friend agree that, situation where the Ministry of Defence may have to lay contrary to the myths peddled on the Government off armed services personnel in 2016-17 because of the Benches, up until the financial collapse the Conservatives steep decline in public spending, only to say, “It’s all backed our spending plan and our debt levels were right. We’ll be able to re-engage you in two years’ time.” significantly lower than those of most other countries, How can universities plan for research and development including the US? when we have such a steep decrease in public spending Mr Darling: My right hon. Friend is right. Our debt now, with the promise of perhaps something in the next levels were the second highest of the G7 group of few years? economies in 1997, but 10 years later they were the The former Chancellor the right hon. and learned second lowest. On public spending, last week the Chancellor Member for Rushcliffe knows as well as I do that when blamed all our woes on our alleged overspending. How we look at spending profiles for four or five years, the was it that the Conservatives were supporting our public last two years are pretty doubtful. spending plans right up until December 2008? As for the Liberal Democrats, they were in a different stratosphere Mr Kenneth Clarke indicated assent. from the rest of us when it came to calling for more public spending. Mr Darling: The right hon. and learned Gentleman At the last election five years ago the essential argument nods. They are pretty doubtful for one of two reasons: between us was whether we could halve the deficit in a one is that a lot can change in that time, and the other is five-year period, which was my judgment as to what we that the person presenting them has every intention of 1173 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1174 Situation Situation changing them as and when we get to that time. I do not are decreasing, corporation tax is proving more and believe for one moment that the Chancellor has changed more difficult to get, and the Government’s ability to his philosophy or beliefs from when he told the House collect money through fuel duties is steadily diminishing. last year that he wanted to reduce public spending to This is all going to put more pressure on measures such the lowest share in modern times—certainly since the as VAT. All Governments are going to have to face these welfare state and the national health service were introduced. facts, and the fall in oil prices brings them into sharp All that has changed is that that was a political focus. embarrassment last year, so he has simply shoved up the The current low levels of productivity are a matter of numbers at the end of the spending profile to be able to great concern. The Chancellor had a lot of fun comparing say, “Look, I’m not going to cause you any difficulties; Yorkshire and France, but French workers are in fact public spending is going to rise, not decrease.” That is more productive. That is not because our workers are nonsense; the Tory view of public spending has not lazy, or anything like that; it is simply because French changed one jot. firms have invested more. That is why certainty in Where I part company with many Government Members public spending is important. It is also important that is that I do not think public spending is almost de facto the Government should do those things that the private a bad thing. It is extremely helpful to an economy in sector is not going to do. For example, I have increasing education and research and development, never mind doubts about the ability of the private sector to provide the things an advanced economy demands in relation to us single handed with the energy generation that we are the welfare state and pensions. So when we look at that going to need. I am in favour of replacing our nuclear profile, it is not credible, and I think it also conceals power plants, but the proposals for the next nuclear what the Conservatives would really like to do. power station are heavily dependent on the French and I want to say one thing about oil. I welcome what has Chinese Governments, and I worry about that. I speak been proposed. It is very sensible, because the oil taxation as an advocate of the mixed economy, but I believe that regime had to change, but I just remark in passing—and we now need to ask ourselves whether we have reached I am sorry only one nationalist has turned up to the a stage at which it might be cheaper and more effective debate—that the OBR forecasts are 47% below what it for the Government to be doing more in that regard, proposed just a year ago. North sea oil revenues are a rather than leaving it to the private sector. 10th of what the nationalists told us they would have if On transport infrastructure, it will, I hope, be for the they had an independent Scotland. This is another next Government finally to make a decision on additional example of where pooling and sharing resources across expansion, whether at Heathrow or elsewhere in the the United Kingdom makes a massive difference. If south-east. Actually, none of those arguments has changed Scotland had been independent today, it would have in the 10 years since the last White Paper was published been faced with cuts that would make the austerity that on the subject. I also hope that the next Government is now being visited on the economy look like a Sunday will take advantage of the present ability to borrow very afternoon tea party. They would have been substantial cheaply by borrowing to invest. I personally would and damaging to the people of Scotland. That is why spend more time on HS3 than on HS2, but I recognise the nationalists have nothing to say about this; they that I might be in a minority in holding that view, on my have no one to blame for this problem but themselves. own side and in the House as a whole. To be honest, there would be much more benefit, particularly to the Dr Eilidh Whiteford (Banff and Buchan) (SNP): Will northern part of England, in spending more money on the right hon. Gentleman give way? the transport links there than in building a fast link between Birmingham and London. However, that is Mr Darling: I have never actually met the hon. Lady, something that the next Government are going to have but I will certainly give way to her. to deal with. I speak as a former Secretary of State for Transport. The Department for Transport’s record on Dr Whiteford: I am grateful to the right hon. Gentleman announcing such plans is pretty good, but it is not quite for giving way. Would he accept that, over the past so good when it comes to delivering. Indeed, many 30 years, oil revenues have contributed billions of pounds announcements were made last week, but I distinctly that have consistently bailed out Westminster’s bad remember announcing the same things myself 10 years economic management? Would he also accept that oil ago. Perhaps that illustrates the problem that all prices go up as well as down, and that the long-term Governments face. trajectory of oil revenues is an upward one? One of the profound issues that needs to be discussed as we go into the next election is what people expect the Mr Darling: I agree that oil prices go up and down, Government to do in regard to the provision of services but when I said that last year during the referendum such as education, health and pensions and what sort of campaign, I was told that I was scaremongering, that I society we want to live in. However, this Budget does was talking Scotland down and that that could not not begin to address those questions, which is why I possibly happen. The hon. Lady should listen to her shall have no hesitation in supporting my hon. and right former leader. He told us that the oil price would never hon. Friends in the Division Lobby tonight. drop below $113 a barrel, but look what happened a few months later. Several hon. Members rose— In relation to the oil price, I would like to say in passing that whoever is Chancellor in the future will increasingly face a structural problem in the economy. Mr Deputy Speaker (Mr Lindsay Hoyle): Order. I North sea oil revenues are not going to return to where suggest that we now move to a time limit of six minutes, they have been for the past 30 years, income tax revenues as we have had a few withdrawals. 1175 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1176 Situation Situation 6.33 pm mucked about over the last few months as they have struggled to get to work and to get back on time to see Sir Nicholas Soames (Mid Sussex) (Con): I congratulate their families. the former Chancellor, the right hon. Member for May I enter one more piece of special pleading, Edinburgh South West (Mr Darling), on his speech. I which endorses a point made by the former Chancellor, always admired his Olympian calm when he was under the right hon. Member for Edinburgh South West? My great pressure in the past few years. I know that the constituency is part of the powerhouse of the south-east House will miss him very much indeed. [HON.MEMBERS: but I must tell my right hon. Friends on the Treasury “Hear, hear!”] Bench that it is constantly held back by the lack of good I warmly welcome the Budget, and I congratulate my infrastructure. I am of course pleased with the plans for right hon. Friend the Chancellor on a truly formidable the A27, but the pressure of housing and growth is achievement in accomplishing a huge turnaround in the leaving towns such as East Grinstead and Haywards financial fortunes of our country and our people after Heath without the proper infrastructure to enable them the catastrophic failures of the last Labour Government to cope. As the right hon. Gentleman said, money is left our economy in such a very bad place. The United cheap at the moment, and this is the time for the Kingdom now has one of the fastest-growing economies Government to borrow and to spread some largesse in the world. The extraordinary rate of the growth in among the towns that never see any infrastructure spending. new jobs is truly exceptional. In my constituency of The housing situation in my constituency cannot improve Mid Sussex, we have the fourth lowest unemployment without better infrastructure, and of course, if Gatwick of any constituency in the land. In Yorkshire, business were to get a second runway, the position locally would and enterprise have created more jobs in a year than be truly catastrophic. were created in the whole of France. That is indeed a Thanks to the determination of the Chancellor and superb record. the Government to stick with their long-term economic Mid Sussex has a vibrant economy with many small plan, this country is in a position in which our businesses and medium-sized businesses, all of which will warmly can invest and our people can benefit from the extraordinary welcome the Chancellor’s review of business rates, which global flow of ideas, innovation and new market are clearly in need of far-reaching reform. It would be opportunities. I hope that these improvements will lead good, for example, to see increased help for the independent to major increases in productivity, which is increasingly shops in East Grinstead, Burgess Hill and Haywards the fundamental key to growth and, above all, to a Heath and in the villages so that they can compete with higher-wage economy. the enormous challenge of online business. I continue to remain anxious about the level of skills Many of my constituents will welcome the new required as our economy responds to changes in technology arrangement for ISAs which will enable first-time buyers and globalisation. I am disappointed to see that we are to have a tax-free way of saving for their first homes. not producing nearly enough engineers, and I welcome This is a hugely significant and very welcome step. the steps the Government are taking to support vital There is also a warm welcome for the Chancellor’s help skills training. I share the Chancellor’s view about the for hard-working people and their families by raising huge potential for our country and about the opportunities tax allowances and increasing the amount that people that exist for our young people, but it remains the case can earn without paying income tax. As my right hon. that, in this astonishingly networked world in which our and learned Friend the Member for Rushcliffe (Mr Clarke) country now has to make her way, we continue to be said, an enormous number of people will feel significant unprepared for these challenges. I applaud the Government’s advantages as a result of this Budget, with 27 million people determination to put that right. having their taxes cut and another 4 million people on low wages being taken out of the income tax system 6.39 pm altogether—and so they should be. Also, the freezing of Mr David Blunkett (Sheffield, Brightside and fuel duty has made an enormous difference to people’s Hillsborough) (Lab): First, I congratulate my right hon. disposable income. All these steps are most welcome in Friend the Member for Edinburgh South West (Mr Darling) the south-east of England and particularly in my on not just an excellent speech, but the tremendous constituency. work he did in those difficult three years alongside I note that my hon. Friend the Financial Secretary to the then Prime Minister. When the world gathered in the Treasury has now left the Chamber, but there are April 2009, applauding the then Prime Minister and still Treasury Ministers on the Front Bench. May I enter then Chancellor for the work they had done on pulling a special plea to them? The rail services on the Brighton people together, no one could have thought that the line and to East Grinstead are of immeasurable importance absurdity would exist where the last Labour Government to commuters in my constituency, but they have been were blamed for the sub-prime mortgage collapse in the truly appalling since the works at London Bridge started. United States and the collapse of the financial institutions Given the extraordinarily high price of tickets, these across the world. inconveniences are wholly unacceptable and have gone For 30 seconds, I just want to pay tribute to those on for too long. The Under-Secretary of State for who have been instrumental in anything that I have Transport, my hon. Friend the Member for Devizes been able to do in my public life and in this House, (Claire Perry) has been very helpful in working with starting with my wonderful family and my closest friends. Network Rail and with Southern, for both of which the They were somewhere in the Gallery when I made my concept of a rail passenger service appears still to be in maiden speech, and two are here from Canada in the a formative state. I ask my right hon. Friends on the Gallery tonight. Without our family and friends we Treasury Bench urgently to consider the question of could never do what we achieve, and so often they take compensation for my constituents, who have been terribly the brunt of the rough and not the smooth in politics. 1177 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1178 Situation Situation I, of course, want to thank the workers, who are often Minister has announced it. We know about the enormous forgotten in our democracy but who make it possible cuts already in the pipeline in further education, with a for us to be here in our political parties, for their 24% cut in adult skills funding. We know about the dedicated work. I thank the voters and the people of proposed budget changes already for welfare. We know Brightside, of Hillsborough and of Sheffield. I also what is happening in local government, with the most wish to pay tribute to my colleagues in the House, deprived areas taking the biggest hit. We know that if including my right hon. Friends the Members for Edinburgh these austerity measures go any further, there will be South West and for Blackburn (Mr Straw), who served massive hit on those least able to take it. This is a crucial in Cabinet with me. My right hon. Friend gave 36 years moment, when we decide whether we go backwards or of dedicated service in and out of this House, and he forwards to a Britain we are proud of. deserves a great deal of credit for it. My first Budget was Nigel Lawson’s of March 1988 and it was seminal in my life because my dog, Ted, was 6.45 pm violently sick halfway through. My hon. Friend the Miss Anne McIntosh (Thirsk and Malton) (Con): It is Member for Bolsover (Mr Skinner), in a very loud a privilege to be called in this debate, Mr Deputy voice, in only the way he could, pronounced, “Someone Speaker, and, in particular, to follow the right hon. should clear up this dog’s breakfast.” I was not sure Member for Sheffield, Brightside and Hillsborough whether he was referring to what the dog or the Chancellor (Mr Blunkett). I pay tribute to his lengthy service in the had delivered. That Budget certainly had a detrimental House and his major achievements. He will be greatly impact which I hope this Budget will not achieve. missed, not just in the House, but in Yorkshire. I wish to make three quick points. I have already I welcome this Budget, which is good for individuals, commended my right hon. Friend the Member for families, businesses, pensioners and farmers. Obviously, Edinburgh South West for what he said about what the best news is that more jobs are being created in happened through those difficult times. We do not just Yorkshire than in France, as the Chancellor mentioned. have to believe him; we can believe what Mark Carney, I wish to make a special plea on behalf of one category: the Governor of the Bank of England, said in a speech older women who are too young to retire but who may made on 28 January in Dublin. In his second point see too few opportunities to work. I recognise the help about why our economy had managed to come through being given in this Budget to farmers and make a plea and bounce back, he said that we had a fiscal system that the particularly welcome rule enabling self-employed that allowed budget deficits to rise during a downturn. farmers to spread their average earnings over five years It is self-evident that that is the case and it needs to be be introduced this month, before Dissolution. Farming done, but it is not self-evident, in all the rhetoric we and fisheries are the two most dangerous industries, so have heard over the past five years, that anyone on the may I also make a plea that we need better mobile Government Benches has fully understood what saved phone coverage in rural areas, to reduce the risk of us from complete calamity—it certainly was not austerity. accidents on farms away from the house? It has not been austerity in Greece, Spain, France or Let me dwell for a moment on the reform of the Italy that has saved those countries; what has been common agricultural policy fiasco in 2005, which led to instrumental has been what was implemented by the huge fines and penalties in the European Union for late Federal Reserve in the United States and by the Bank of payments. I welcome the fact that common sense has England here: quantitative easing—printing money, as broken out and that in this month we will revert to my mother called it. It eased the unfortunate—in the paper applications, with only initial registration online. long term—bubble in house prices, rather than the I ask that digital by default be laid to rest this year and investment in business for which it was intended, but it that we press forward to make sure that the mapping is did make a significant difference in terms of allowing us easier in future years. to return to growth and to have sufficient money in the economy. I ask that the vouchers the Government are going to make available in urban areas for upgrading to superfast Paradoxically, the payment protection insurance mis- broadband also be made available in rural areas. Too selling scheme also did that. The PPI repayments have few farms and rural businesses yet have the benefits of a amounted to £20 billion of money going into families decent speed and a stable connection for broadband. and into local economies that people have spent. If a It is not acceptable that farms and rural businesses political party had announced that it was going to give, have only the basic legal entitlement of 5 megabits in a Budget, just before an election, £20 billion to and subsidised satellite services, and that the promise of selected families across the country, people would have 100 megabits will not reach the farms. Will we therefore had a fit. Yet that has made a significant impact on see the vouchers extended to rural areas? what has happened. I ask the Minister who is summing up to address the We will not and cannot allow a doubling of the pain issue of the costly failure— £155 million—of the Rural in the next Parliament to take us backwards, with the Payments Agency computer. It raises a wider issue unthinkable becoming the unachievable. That is clearly relating to contracts under successive Governments: what would happen if the unfair changes and the unfair why do we see failures in areas such as the Child further additional austerity measures were to be Support Agency and, more recently, the RPA? When implemented—and, of course, we do not know about Governments can supply that big a contract, what are many of them. Should the Conservatives be the lead or we doing wrong? Can we also make sure that the majority party, they will be implementing further cuts, spectacle of disallowance and EU fines will become a on top of the 50%-plus of austerity measures that the thing of the past? Will the Government confirm tonight coalition has already signed up to. We know about the that the additional extension of one month offered by 10% cut in the budgets in schools, because the Prime the European Commission for basic farm payments will 1179 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1180 Situation Situation [Miss Anne McIntosh] The situation has been getting progressively worse in the top end of the valleys. Lower down the valleys, there be accepted and agreed? Will we ensure that payments are also pockets of deprivation. Lansbury Park in the are made on time? The extension to 15 June is welcomed centre of Caerphilly is now the worst off ward in any by the farmers. part of Wales. It was tipped over the edge by the I welcome the fact that this Budget is good news for introduction of the bedroom tax. In my constituency, savers. The individual savings accounts—ISAs—will more than 1,000 households have been hit hard by that encourage savings and investments, and the review of tax. In the past, I have referred to specific cases as capital investment allowance will be welcome. This is a examples, one of which I will refer to again. Mr and prudent and responsible Budget, setting a steady course Mrs Goodwin live in the Caerphilly borough in Blackwood. to cut our debt, reduce the deficit and, in the words of Both of them are registered blind. After living in their my right hon. and learned Friend the Member for council house for 30 years, they now have to pay a Rushcliffe (Mr Clarke), achieve a surplus by 2017-18. massive surcharge because two of their rooms are deemed to be surplus rooms. That has hit their quality of life This is probably the last contribution that I will make and standard of living extremely hard. What is true of to any formal debate in this House. It has been an them is true of so many other people the length and enormous privilege to have served 18 years here. I have breadth of this country. Some 57% of those people who spent five years as MP for Thirsk, Malton and Filey; have been hit by the bedroom tax have disabilities. What 13 years as the MP for the Vale of York, for which I was can people like Mr and Mrs Goodwin look forward to? the first and last Member; and for 10 years before that Let us be clear about what will happen if the Conservatives I was a Member of the European Parliament. win the election. The Office for Budget Responsibility The icing on the cake was being elected by colleagues, has said that it anticipates a rollercoaster profile for from across the House, to chair the Environment, Food and implied public services spending, with Rural Affairs Committee, which so perfectly reflects the “a much sharper squeeze on real spending in 2016-17 and 2017-18”. interests and concerns of those living in Thirsk, Malton and Filey—food, farming, fisheries, the environment, In other words, the cuts, bad though they have been, are the countryside and rural communities. We have been nothing to what they are likely to be over the next few wonderfully served by exceptionally dedicated and extremely years if the Conservatives win the election. People must effective staff led by the Clerks, with superb special not worry though because there will be a massive boost advisers, assistants and others. I have also been blessed in public expenditure as we approach the election after with parliamentary colleagues on the Committee, some this one. of whom are in the Chamber today. Together we have Things will get much, much worse before there is any formed a dedicated team, really pressing for proper chance of improvement, which is why it is so important scrutiny of an extremely important Department, which that we take this opportunity, on the eve of our general I hope will survive and grow bigger in the next Government. election campaign, to recognise that a Labour Government As I face early release, I pay tribute to my predecessors, would offer real hope for people. They would scrap including my right hon. Friend the Leader of the House the bedroom tax, introduce a sensible protection plan, who is also leaving. I wish my successor the very best of increase the minimum wage, end exploitative zero-hours luck. I pay personal thanks to my husband for allowing contracts and, above all else, bring in a different set of me to do this job, to my supporters for standing by me, values that put people first, and that put the many and to my electors locally for returning me at successive before the few. elections. 6.56 pm 6.51 pm Chris White (Warwick and Leamington) (Con): Although Wayne David (Caerphilly) (Lab): I pay tribute to I am pleased to follow the hon. Member for Caerphilly Members on both sides of the House, especially those (Wayne David), I have to say that I offer a more who are stepping down, for the contribution they have optimistic approach. I am happy to say that, in Warwick made to politics; I am sure that we all appreciate their and Leamington, the signs of economic growth are work. strong, not least with the number of jobseeker’s allowance My constituents regard this Budget as a monumental claimants falling by 70% since 2010, and the number of irrelevance. I say that because this Budget has done so claimants aged between 18 and 24 falling by 79% over little for so many people. Over the past few years, the same period. We have also seen a growth in the people’s standard of living has been eroded and their number of businesses that have taken on new employees, quality of life has declined, and this Budget has done with more than 2,700 apprenticeships being created nothing to reverse that trend. since 2010. In Wales, we have seen the publication of the Welsh The Budget contained several welcome measures for Index of Multiple Deprivation and the work of Professor Warwick and Leamington, the first of which was the Steve Fothergill of Sheffield Hallam university. Both support for the creative sector that contributes so much works have underlined just how bad things are in many to our local economy. Leamington Spa is now increasingly south Wales valley communities. Professor Steve Fothergill, referred to as “Silicon Spa” due to the growth in our for example, has focused on the impact that welfare technology and creative industries. As the Budget reform has had on many former mining communities. emphasises, the creative industries deliver both cultural He has estimated that, in some 36 wards in the south and economic benefits to the UK. Wales valleys, at least £800 per adult has been lost. The The tax relief for the video games sector, for which communities as a whole have suffered from that substantial colleagues and I on the all-party group for video games loss of capital. have campaigned, has already significantly benefited 1181 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1182 Situation Situation the video games industry in Leamington. The tax relief Alliance’s site to see what it was doing. We all know what has created confidence in the sector with the local the TPA is: the reserve Tory party, the ones who get industry supporting some 1,200 jobs. paid by big business to tell the Tories what to do. It is I am also delighted that the Chancellor announced talking about ending national bargaining, which means an extension of the Skills Investment Fund, which will another freeze on wages. Another freeze, after five years provide £4 million to ensure that support for training of freezes, with some people getting no increase and and development in the creative industries continues for some people getting only 1% increases. We can see a further two years. Renewed focus and support for a where that is coming from, and that is what the TPA is more traditional, but similarly creative industry, was telling the Tory Government. also announced in the Budget. The west midlands has The TPA wants an end to the triple lock on pensions. long been a hub for manufacturing, but it is now a There we are: it is telling the Tories to end the triple lock resurgent sector of our economy. I was delighted to on pensions. We could go on to benefits, of course. The note that, according to the most recent figures, the TPA wants to freeze benefits for two years, so my manufacturing sector grew by more than 2.5% in 2014 constituents are in for a right surprise if they get them. alone. That is another thing that will happen at the next Since 2010, the Government have invested a great election. Then, of course, there is the £12 billion that deal in the manufacturing sector, including through has to be cut from social security. All that has got to innovation catapults. High-value manufacturing is growing happen, and this is a Budget for happiness? I think that in significance in our region. I was particularly pleased it is a Budget for disaster. to see the one millionth cooker roll off the production Then there is the cutting back. Apparently it is imperative line at Aga Rangemaster, just outside my constituency that the next Government cut back on winter fuel office. allowances and bus passes. Last week, I saw on television Innovation is key to unlocking further potential in that a compassion pill had been invented—someone the manufacturing sector and I am delighted that the could take it and become compassionate. I think £25,000 Government have extended the research and development would give every Tory Member one, to see if we could tax credits, particularly for small and medium-sized get some compassion into their hearts for the people of enterprises. That measure is estimated to benefit some this country, who have suffered for five years. 15,000 businesses. The TPA says that the next Government “need” to As co-chair of the all-party group on manufacturing save £70 billion; that is what it is telling you. It is not and chair of the all-party group on video games, I have telling us, thank God—I hope they are not, mind—but been privileged to watch the regeneration of manufacturing it is telling you, because those people are your people. and the exciting development of the creative industries That is who they are. as a whole. I would like to take this opportunity, however, to make the point that there is still more to be done to Mr Deputy Speaker (Mr Lindsay Hoyle): Order. achieve the potential in these parts of the economy. We Obviously, when Members say “you” they mean me. Do need more support for innovation, more apprenticeships, not worry about it, Mr Campbell. Carry on. not least through the excellent Warwickshire college, a continued focus on research and development and support and encouragement for small businesses wishing to Mr Campbell: I apologise, Mr Deputy Speaker. grow and expand. I believe that we must do all we can to What have we got? We have the pension provisions. support these vital industries, rebalance our economy Okay, that is those people’s money and I suppose they and create additional jobs, but overall the Budget provides are entitled to it, but I can tell Members what happened assurance that the economic plan is working and that a few years ago when the miners were given the chance our economy is back on track. to pull their pensions out of the national mineworkers’ pension fund. I was chairman of the local branch at the 7pm time, not an MP, and I remember the spivs coming in big style. We had nothing to do with them, but they had Mr Ronnie Campbell (Blyth Valley) (Lab): All Members meetings in social clubs and pubs and brought all the look at the Budget and see what is in it for their lads in. The Major Government said at the time that constituents. I did the same last week, for the whole people could take their pension then as long as they got north-east of England. When I got a look at it, I a better deal, the lads thought that they were getting a thought that there was one little chink of hope: I might better deal and, of course, the spivs and speculators all get the Blyth and Tyne rail link reinstated in my came in. The lads all gave up their pension, saying that constituency. I might be lucky, and I know that the they were going to get a better deal, but within a year to county council has put some money aside, but I am not 18 months they had to come back into the pension sure what will come from the Budget. We hope that the scheme. money might be there, but as for everything else, all my constituency is getting are a few crumbs. Some might be That was a scandal waiting to happen, because there getting their pension, which is their own money, of was no advice at all. The miners were finished—it was course, but otherwise a few crumbs have fallen off the after the miners’ strike—and we told them to keep their table that my people have managed to gather and I am pension where it was, but of course the spivs were sure that everybody else is thinking the same. As far as I telling them how wonderful their options were. am concerned, all we are getting in the north-east of England is the usual pie in the sky. Mr Jim Cunningham: I remember exactly what my A lot has been said about what is happening now, but hon. Friend is talking about. Under the Thatcher what will happen after this? What will happen if this lot Government, people were encouraged to come out of get elected again? I went and had a look at the TaxPayers the state earnings-related pension scheme and to go into 1183 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1184 Situation Situation [Mr Jim Cunningham] mental and physical health, crime and sense of security, biodiversity, greenhouse gas emissions and access to private pension schemes. I remember Rolls-Royce spending green space, and education and children’s happiness. a lot of money encouraging people to do that, and look That would be good in setting the context for the main at how that ended up. Budget. There is no doubt that in classical terms, at least, the Mr Campbell: It nearly ended up in a scandal. The economy is looking much stronger. Liberal Democrats Government opened up the mineworkers’ pension scheme and Conservatives have both taken the flak for the again so that people could bring their money out of the difficult decisions made in government that were necessary schemes they had been conned into joining. A lot of to secure those improvements and both parties should miners lost a lot of money, so the warning is there. As share the credit. I am certainly finding that the most has been mentioned in many speeches today, the popular headline policies in the Budget seem to be Government must be very careful that they do not fool those pushed by the Liberal Democrats, such as taking the people. more and more of the lowest paid earners out of income I want to mention the national health service, because tax altogether; providing £1.25 billion over five years 65% of new contracts in the NHS have gone to private for mental health, particularly for children and new companies. I do not know what will happen if the mums; and smaller items that might have passed almost Tories are elected at the next election, but I can tell unnoticed, such as £10 million for new school kitchens Members one thing: in five years 65% of contracts in in support of the provision of free school meals. the NHS have become private and that is a disaster It is on future spending plans, of course, that the waiting to happen. I think that the Tories are waiting coalition parties somewhat part company. The Chancellor for 100% private contracts in the national health service, identified £5 billion from tax avoidance and evasion so that it is totally privatised. The Labour party is and aggressive tax planning to help balance the books, prepared to put in at least 5,000 more doctors and which clearly we would welcome, and perhaps even 20,000 more nurses, and I hope that that is a reality and push further on, but the other £25 billion he identified that we can afford to pay for it. are all from public spending cuts, either in welfare or I have to mention the banks, as they cost the taxpayers unnamed Government Departments. Of course, he wants of this country a lot of money over five years. It is time to carry on cutting, even after the books are balanced, that we started taking a lot more money off the banks and apparently without seeking to raise a penny from than we are taking now. They owe the taxpayers of this those who can afford to pay more. That seems to me to country big time and we should increase the levy and be calculated to damage public services far more than say that they should pay the money back. We should they need to be damaged, to cut more than needs to be not have bailed them out in the first place. cut and to take us towards a less fair society, not a fairer one. 7.7 pm There were a few items in the Budget of particular interest to Cheltenham. I am very pleased that Cheltenham Martin Horwood (Cheltenham) (LD): It is always racecourse got a mention; it is not quite in my constituency, interesting to follow the hon. Member for Blyth Valley but it is economically very important to it. The commitment (Mr Campbell). I am glad that he is such a supporter of to a racing right that guarantees a more secure income the triple lock on pensions. He must remember, of from betting to racing is very much to be welcomed. I course, that it was the Liberal Democrats and not the also welcome the commitment on superfast broadband, Labour party that introduced the triple lock and restored although there are still questions to be asked on exactly the link with earnings broken all those years ago by how that will be implemented, even in urban areas such Mrs Thatcher. as mine. The economy is undoubtedly looking stronger now, I welcome the endorsement for tidal lagoon power, not just according to the headline figures, with although there are a few qualifications around that. I unemployment down, growth up, the deficit cut by a hope that the negotiations on the strike price will be third in absolute terms and half in terms of GDP, negotiated quickly and hopefully concluded before the inflation and interest rates both under control and general election. I hope that they will reflect the fact living standards finally on the rise. It is stronger in a that, unlike the nuclear industry, which receives a huge more subtle way, too. We have invested in infrastructure subsidy, being a 60-year-old mature industry, lagoon and in apprenticeships and skills, and carbon emissions power is a cutting-edge, pioneering feat of engineering are falling even while economic growth is increasing. which has enormous potential for safe and sustainable Renewable energy has nearly tripled. This is a more growth in energy. sustainable economy and has strength in that regard The Budget also included a reference to the intelligence as well. services. The Chancellor made a very welcome commitment I have some sympathy with something that the hon. to right the injustice that has been suffered by the Member for Caerphilly (Wayne David) said. When we widowers, widows and former civil partners of firefighters, think about the performance of the economy, we do not police officers and those in the intelligence services with think enough about quality of life, and it would be a regard to their pension rights. In the Budget documents, good thing to have a well-being Budget as well as a however, the commitment for the intelligence services is classical economic Budget, perhaps delivered by the not quite so cast-iron; they talk about examining the Prime Minister the day before to put the economic possibility of doing the same thing for the intelligence Budget in context. It is important to think about not services. Many of my constituents work tirelessly for just economic growth but our quality of life and the the safety and security of this country. It is fantastic state of the nation’s well-being, as well as to have that the widowers, widows and former civil partners of reported to this House indicators on things such as firefighters and police officers will have their pension 1185 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1186 Situation Situation rights looked at and the injustice remedied, but it would in the taxation system that they helped formulate a year be very unfair if the same right were not extended to the or two before. Years ago our predecessors decided to do intelligence services. That is just one small way in which away with secret treaties. I think that we now need to we could make our society fairer as well as building the do away with secretly formulated taxation. I believe that stronger economy that we can all now celebrate. in future the House of Commons should decide on the principle of a particular tax and then a Committee of the House should summon all the experts before it and 7.12 pm decide on the detailed implementation so that we do not Frank Dobson (Holborn and St Pancras) (Lab): Having have the hole-and-corner fiddling and special pleading been a Member of this House for 36 years, I suspect that has left us open to so much tax evasion and that I have listened to about 45 Budget statements, but avoidance and late payment that people have been I must say that I cannot remember one that was so allowed to get away with. self-congratulatory—the Chancellor of the Exchequer If the House of Commons is to restore its reputation, delivered it almost like a lap of honour. I must concede we need to take our duty to check on the raising of that he can claim one great success: he has been very taxation much more seriously than we have done. If we effective in getting across the idea that the worldwide fail to do that, our reputation will continue to be low, recession was created by the Labour party, not by the because people expect that when Parliament passes a stupidities of the banking system worldwide, and that law, that law will work and it will do what Ministers said the British economy was in decline when this Government it would do. When we pass laws that do not do what took over. The fact is that the economy was actually Ministers said they would do, that undermines all of us, growing when they took over. It then went into decline not just those Ministers. I think that the House of and is only now creeping out. If we are now seeing a Commons has to take its duties in relation to taxation bigger than usual increase in output and growth, that is far more seriously in future, and I hope that it will. because we had fallen so low and are growing our way out of a very deep pit. 7.18 pm One of the things that the Tories promised before the Mr Robin Walker (Worcester) (Con): It is a pleasure previous general election was that there would be no to follow the right hon. Member for Holborn and rise in VAT, but their first Budget did just that. St Pancras (Frank Dobson), and I agree with a great deal of what he said about taxation and the importance Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) of clamping down on tax avoidance, although I gently (SNP): Will the right hon. Gentleman give way? point out that this Government, having closed the tax gap and, as my right hon. and learned Friend the Frank Dobson: No, because that would take up other Member for Rushcliffe (Mr Clarke) pointed out, made Members’ time. our tax system more progressive, have a better record The Tories also promised to clear the deficit. The right than their predecessor. hon. and learned Member for Rushcliffe (Mr Clarke) I welcome the Budget, which is about securing this said that nobody can forecast that. Well, perhaps they Government’s legacy of growth, jobs and recovery in cannot forecast it, but they did make that promise and the economy. It is about delivering on a plan, and a plan they have not kept it; they have reduced the deficit by a that is working. To see that, we need only look back at third. They promised to reduce the national debt but, as where we have come from. After the previous Government my right hon. Friend the Member for Edinburgh South left the biggest peacetime deficit in our nation’s long West (Mr Darling) pointed out, they have managed to history, the deficit has been halved and we have started reduce it by a fraction only by fiddling the books—that to pay down the debt as a percentage of GDP. We are is as good a way of describing it as any. They said that achieving record employment against Labour’s legacy they would rebalance the economy, but they have no of mass unemployment, and growth against its record- more done that than the Liverpool captain rebalanced breaking recession. The number of apprenticeships has the membership of his team the other night. Then there doubled, youth unemployment has been slashed, businesses is the claim that we are all in it together. Well, a lot of are confident to invest and people are beginning to be people have been dropped in it together, and they are confident to save once again. not the rich people. Under the previous Government, many people were I would like to deal with something that, in a sense, afraid to go to the bank in case they could not get their has nothing directly to do with the Budget: taxation. money out. We took over in a crisis situation and at The fact of the matter is that the House of Commons the end of five years of difficult decisions we will leave has had a pathetic record over the past 50 or 60 years the country emerging into the sun. I remember, under when it comes to determining what the levels of taxation the previous Government, walking down streets in should be and how they should be applied. Time and Worcester where every third door displayed a repossession again we have come up with a system that helps tax notice. Those streets now show none. I remember seeing evasion and avoidance and lets people get away with unemployment in Worcester above the national average— late payment. It is no good simply blaming the civil well above 2,500 people. Now it is below a falling service, because there has been a failure to deliver what national average, more than halved since the general every Government have said about people avoiding tax. election, and long-term unemployment has fallen for The problem is that the details of all taxation are each of the past 11 months in my constituency. formulated in secret with Treasury officials plus some The number of people in work nationally is at its experts, many of whom return to their day jobs in the highest ever level and around 80% of the new jobs private sector afterwards to pursue what they call “tax created have been full time. Opposition Members like to efficiency”. In other words, they exploit the loopholes talk about zero-hours contracts and part-time work. 1187 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1188 Situation Situation [Mr Robin Walker] I also welcome the continuing focus on investing in skills and helping businesses to do so. The Budget saw Both increased hugely in the latter years of their the launch of apprenticeship vouchers for businesses to Government, but they chose to do nothing about them. manage their own schemes, and businesses such as This Government have acted to ban exclusive use of Worcester Bosch, Yamazaki Mazak, Titania cyber security, zero-hours contracts and increased full-time jobs by Comco and Green Lighting, which I visited during national well over 1 million. Labour Members also talk about a apprenticeship week, will welcome the Government’s cost of living crisis, and it is true that over a long period focus on this aspect. wages failed to keep pace with inflation. This was the One of the best things about this Budget is its support consequence of our economy being £112 billion smaller for saving. As chairman of the all-party group on credit on their watch, more people being in competition for unions, I warmly welcome both the £1,000 tax-free fewer jobs as a result of the 2009 crash, and the inflation allowance for savings and the administrative changes caused by higher energy costs. that will remove a burden from savings organisations, including credit unions. Last week I attended my local rose— Ms Gisela Stuart hospital to see the launch of a payroll saving scheme Mr Walker: I shall not give way. I am sorry; I want to from the Castle and Crystal credit union, which expanded keep time for other Members. into Worcestershire at my invitation. Such schemes will benefit from the Chancellor’s efforts to make saving However, this Government have presided over falling more attractive. inflation, which is now at its lowest level on record, more jobs and, in the current year, above-inflation In an age where saving for the deposit on a first home increases not just in the minimum wage, but in average has become ever more challenging, I particularly welcome wages and take-home pay. The crucial decision to cut the launch of the Help to Buy ISA. My late father income tax for the lowest paid contrasts starkly with pioneered the policy of right to buy which helped Labour’s decisions while in power to scrap the 10p rate thousands of people to own their first home in the and to push up employers’ national insurance. Instead 1980s, and I am hopeful that Help to Buy, combined of driving up the cost of employment and taking more with this innovative savings scheme, can help thousands of people’s wages in tax, we have helped businesses to more to enjoy the security of owning their own home in create more jobs and, crucially, let people in the lowest the 21st century.Help to Buy has already helped 184 families paid jobs—part-time workers and those on the minimum in Worcester and more than 900 in Worcestershire to get wage—keep more of what they earn. on the housing ladder. With the Help to Buy ISA I hope we can make a difference for hundreds more. As the Chancellor set out, families are £900 a year better off than they were in 2010 and the official figures I welcome this Budget continuing the increase in the showing this are borne out by independent research, basic state pension. On the doorsteps of Worcester I which Opposition Members used to quote when it often hear from pensioners who are very concerned suited their arguments. The latest figures from the Asda about the fact that they may be paying income tax on a income tracker show average family discretionary spending small pension inherited from a deceased partner. The power at £185 per week—the first time since its records move to increase the income tax threshold to £12,500 in began in January 2009 that that figure has risen above the future will take thousands of those pensioners out £180, and an increase of £16 per week since the same of income tax altogether, which will be an extremely time a year ago. In April 2010, before the general positive reform. election, the equivalent was £172. As a member of the Business, Innovation and Skills 7.24 pm Committee I welcome the fact that this Budget delivers further for business by cutting corporation tax to one of Hazel Blears (Salford and Eccles) (Lab): It is a pleasure the most competitive rates anywhere in the world, to follow the hon. Member for Worcester (Mr Walker). incentivising the employment of young people and Perhaps he has caught a bit of the virus of optimism apprentices through further changes to employers’ national bias this evening, but it was a pleasure to hear what he insurance liabilities, and launching the long-awaited had to say. reform of business rates. I welcome the extension of This is probably my last chance to speak in Parliament. small business rates relief and the high street discount, I am sorry that it sounds to colleagues like a series of as well as progress with the valuation system review but, valedictory speeches, but we are all taking our opportunity, as the Committee’s high streets inquiry concluded: which I want to use to talk about an issue close to my “The short-term tweaking of the Business Rates system is heart, and it is what brought me into politics more than building up problems for the future and, instead, the....system 30 years ago. needs fundamental reform.” Poverty in Salford was all around me—poor housing, I look forward to supporting the case for fundamental no jobs, but above all at that time a sense of hopelessness reform. We need to look for a system that removes the and a belief that things could never be different. I was bias against our high streets and town centres and brought up by parents who both left school at 14. They rewards businesses that invest and expand. Business had no chance to stay on, but they were determined that rates are currently the only area of taxation where there their children would have the chance to do well and get is not only no incentive, but a positive disincentive to on in life. I think my mum thought of the phrase, take more people on, and this needs to change. I know “Education, education, education”long before the former that the British Retail Consortium and the Federation Prime Minister ever dreamed of it. Education was then of Small Businesses have warmly welcomed the and is now the key to progress and success, not just for commitment to reform, and I hope that both will be individuals, but for our economy and our country as a extensively consulted on how it can best be delivered. whole. Social mobility is at the heart of that. 1189 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1190 Situation Situation I shall start by saying a few words of thanks and We have the RECLAIM project, which is a two-year congratulations—do not worry, it will not all be this leadership programme, again for young people, men nice—to the Chancellor and to the Chief Secretary to and women, who would never get a chance to do such the Treasury, in particular for finding £200,000 a year work. It aims to inspire, challenge and develop people for the next couple of years to support the Speaker’s to become true leaders for the future. A young woman parliamentary placement scheme, which has been such called Jaimeel, a local girl, who has been through the a success and has changed the lives of so many young project, says: people over the past four years. I set it up because I was “When I started RECLAIM I had very little idea about who very worried about the fact that so many of our leading I was, who I wanted to be or where I wanted to go. Due to Members of Parliament and our Ministers came from RECLAIM I have completed several work experience placements, what I called the transmission belt—being a special including a project to design a gym. I am a member of a music adviser, working for a Minister, getting a safe seat and collective. I have had a work experience placement with the Co-op being fast-tracked into the Cabinet. In 1979 only 3% of and with Investec Specialist Banking.” all MPs took that route. At the last election the figure She is now on the second year of an accountancy degree was 25% and rising. at Birmingham university. Her life has been changed by Our scheme aimed to bring working-class young the RECLAIM project. people to work in Parliament—people who would never The thing that concerns me most is that in real terms have got a foot in the door. They included Kay Nuttall in the next period, education spending will fall by 7% from Salford, who had a fantastic experience here, went and the widening participation budget has been slashed back to Salford, got a great job and stood to be a parent from £130 million to £67 million. This a false economy. governor at her child’s school—a contested election All the examples I have given show that our young that she won, and she is Labour. It is amazing. Another people have talent. If we give them hope, encouragement participant was Siraj Odedra, who stayed in Parliament and support, they will have the same chances that and is working for my right hon. Friend the Member for people like me have had. I hope that the next Government Slough (Fiona Mactaggart). He no doubt will have a will take that on and make it a reality. long and, I hope, successful career in politics as well. Thanks very much for taking that step. I thank all the Members of Parliament who helped me establish the 7.30 pm scheme and those from all parties who have agreed to take it on. I hope we will have a long-lasting scheme Christopher Pincher (Tamworth) (Con): During most that gives young people the sense that they come here of her speech, the right hon. Member for Salford and and can make a difference to politics. Eccles (Hazel Blears) spoke of optimism, a word that might have been coined for her. She is never knowingly I thank Alan Milburn for his work on the Social under-optimistic, and we will certainly miss her sunny Mobility and Child Poverty Commission. In his recent disposition. report, “Fair Access”, he said: “Unpaid internships clearly disadvantage those from less affluent Five years ago, like the right hon. Lady, I was canvassing backgrounds who cannot afford to work for free for any length of for election. At that time, Tamworth was a town in time…Given their centrality to young people’s career prospects, trouble. Unemployment was climbing to 6%, businesses, internships should no longer be treated as part of the informal including well-known names such as Woolworths, were economy.” going to the wall and people were losing hope. If you That means that we should introduce proper terms and walked from the great city of Worcester to Tamworth, conditions, including remuneration. I am pleased to say and then down Glascote road, you would see in window that long-term unpaid internships are virtually a thing after window repossession notices as banks took possession of the past in Parliament. When I came here, they were of people’s homes. The grisly legacy of the previous widespread. Unfortunately, they still exist in the media, Labour Government was that people were not just fashion, culture and the creative industries. That means losing their jobs or their shops, but losing their homes that unless young people have the bank of mum and as well. Walk around Tamworth today and you will see dad, they cannot make that first step in life. a town that is rebuilding. Just 427 people in the working-age I thank the Social Mobility Foundation and Victor population—fewer than 1%—are claiming jobseeker’s Blank, the chairman, and David Johnston, the chief allowance. Unemployment is falling faster in Tamworth executive officer, who have done so much to remedy that than anywhere else in the country: the BBC tells us so. It situation. The Institute for Fiscal Studies has just done also tells us that wages are outstripping inflation. Since an evaluation of the Social Mobility Foundation’s work. 2010, 105 new businesses have been created in the town. It found that those programmes give people the kind of New jobs and new skills are being created, and with back-up they would get if they had had a private school those new jobs and new skills comes new hope. Jobs are education or a good family background, which means transforming people’s lives, and this Budget was a Budget that among those who go to university, the Social for jobs. Mobility Foundation projects increase the likelihood of I should like to speak about some of the more detailed attending a Russell Group institution by between 17% elements of the Red Book that will help people and and 27%, compared with those with similar attainment their jobs in Tamworth. Every year, I hold an export from similar backgrounds who do not participate in the conference at Drayton Manor to help small and medium- SMF programme. It is making a real change to hundreds sized enterprises in my constituency to build the knowledge and thousands of young people’s opportunities in the and confidence to export their goods and services. I am future. especially pleased that the Chancellor announced The final thing I want to highlight is a local project, £3.5 million of new funding to help our trade with that because for all my political career, I have been extremely great, unfathomable market—China. I mention that proud of the things that happen in my constituency. particularly because Birmingham airport has just extended 1191 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1192 Situation Situation [Christopher Pincher] threshold at which national insurance is paid would be much more targeted at low-paid workers and enable its runway and it is now possible to travel long-haul them to keep much more of their income, and I am directly to China, sending business folk to that place to disappointed that that was not in the Budget. do better business with it. Let us move on to the unexplained £12 billion saving I hope that when the Chancellor considers that in the social security budget. From where—or rather investment, he also remembers the £7.5 million that he from whom—will this come? Will it be low-paid families has given to the northern powerhouse to aid its overseas who are claiming in-work benefits? They have already trade delegations. In his next Budget, I hope that he will been hard hit by this Government. Will it be people consider matching that funding to create a midlands with disabilities? They have already been hard hit by powerhouse. Although we have in this Budget the this Government. Will it be children in poverty or £60 million invested in the Energy Research Accelerator young people? They have already been hard hit by this in the midlands, Birmingham and surrounding areas Government. I suggest that people have a look at Real could benefit from a midlands powerhouse strategy to Life Reform’s reports to see the real stories of those help our economy to grow and prosper. I trust that the who have been hit by this Government’s welfare changes. Chancellor will take that on board. Also buried deeply Those people are certainly not feeling any optimism. In in the Red Book is the determination to build up a fact, one of its most recent reports says that at least 75% study of regeneration on our larger estates in the midlands. of them were feeling “not at all” or “not very” optimistic That is welcome, but I hope that the Government, in about their chances for the future. Will this £12 billion their determination to look at the challenges that we saving be clarified before the election so that people face on big estates in Birmingham and Coventry, will know exactly what they are voting for and exactly who also recognise that smaller towns in Staffordshire, such they are voting for to be hard hit even further? as Tamworth, Burton and Cannock, have smaller estates “Northern powerhouse” is easy to say, and I would that face challenges and also require study and investment. love us to have one, but what is actually being delivered I hope that the study that the Chancellor is considering to councils in the north by this Tory-Liberal Democrat will look at those smaller estates as well. coalition is cuts of 75% more than in the rest of the I end with a plea for a business in my constituency country. Simply devolving responsibility and cutting that benefits from the Budget. It is called Invotec, and it budgets will not empower anybody. exports electronic circuit boards around the world—very It is good that savings are not double-taxed, but I successfully so. It employs 250 people in Tamworth and regret the level being set at £1,000 of interest. Most of in Telford in Shropshire. However, while this Government my constituents can only dream of £1,000 in total and this Budget tear up more and more red tape, there is savings. The Chancellor’s figures are predicated on an still a problem with exporting those circuit boards unprecedented rise in household debt. Surely we should because they are used for defence purposes. No other be looking at ways of preventing that. It seems that debt country in the EU applies a licence regime for every for the country is bad, but debt for the individual is circuit board that is exported. As a result, Invotec faces welcomed. We should at least be looking to provide difficulty in selling to its clients. BIS undertook to help for those who fall into unmanageable debt. It is review the situation, but the report that was due to worth remembering that an extra 0.5% of interest on a resolve it has not been published. I encourage those on rising mortgage rate will put a further 600,000 people at the Treasury Bench to find the time to encourage BIS to risk of losing their homes. Where is the help for low-income publish that report and that resolution so that Invotec savers to build a small pot for a rainy day, keeping them can export its wares around the world and compete with out of the clutches of the payday lenders and rent-to-own our European competitors. companies like BrightHouse? This Budget will be welcomed in the boardrooms and Talking of exploitation, what extra protection are the in the living rooms of Tamworth. It is a Budget for Government putting in place to prevent the most vulnerable jobs—jobs that pay the mortgage, pay for the foreign from being ripped off by companies offering to help holiday, and pay the taxes that pay for the schools and unlock their pension pot? This is Money spent one hour hospitals that we all want and need, and that must be fit and £100 to set up a fake website that popped up on for purpose in the 21st century. Google alongside the Government’s own site when a search was done for Pension Wise. We already know 7.36 pm that this happens in many other areas. For example, there are many sites offering to help people get the Yvonne Fovargue (Makerfield) (Lab): This Budget European health card for a fee of £49, even though it is was summed up by the chief executive of Citizens free. Con artists are already looking at this as a great Advice as a disappointment because opportunity to make a fast buck. What is being done to “People on the lowest income and those without savings benefit protect people who are Googling for information on least”. who can help? The helpline is not yet up and running, “But what about the increase in the personal allowance?”, so what is being done to help those people now? I may hear those on the Government Benches say. The Budget has been called a “rollercoaster” by the There are two issues with that for the lowest-paid. First, Office for Budget Responsibility, but I would rather there is the relationship with the benefits system. The describe it as a game of snakes and ladders. Unfortunately, lowest earners claiming housing benefit and council tax the ladders appear to be targeted at the rich, while the benefit lose 79p in every £1 that they gain through the snakes are for the poorest and most vulnerable. Let us increase in the personal allowance. Secondly, once they stop playing games with people’s lives and make the are out of tax, they are out of tax—they cannot gain next Budget a Labour Budget, with a strong economic any more for being even more out of tax. Raising the foundation that delivers a fairer recovery for all. 1193 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1194 Situation Situation 7.41 pm is absolutely brilliant, because we need high-tech modern businesses with plans to invest and the ability to translate Neil Carmichael (Stroud) (Con): It is a great pleasure research and development into products and services to participate in this debate. This is a good Budget not that people want. only because it is fiscally neutral, as my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke) I salute the overall approach the Chancellor has been has said, but because it underlines the fact that the at pains to take over the past five years. The real long-term economic plan is producing solid results. It problem is that we inherited an economy that was has been endorsed by none other than President Obama, swamped by debt, which does nothing for investors, who has pointed out that the UK and US economies hard-working families, the unemployed or people who are the only two that are really growing, so we must be need proper care. The challenge was, “Where is the doing something right. It has also been endorsed by the money going to come from and what are we going to do OECD, which has noted the solid performance of our solve the problem of debt?” The Government have done strategy and suggests that we should not turn away something about that. from it. The Institute for Fiscal Studies has also pointed out that living costs are now becoming more favourable. Mr MacNeil: Will the hon. Gentleman give way? That is the overall background. Neil Carmichael: I am not going to give way, because The plan is good for another set of reasons. First, it is a lot of Members want to speak and it would be unfair making sure that getting a job is a good thing, which is to do so. what we want to see. I inherited 1,488 unemployed people in my constituency, but we have got the figure We have to make sure that we deal with our debt. We down to 551. That is fantastic and exactly the direction are on the right course. of travel we should be taking. It is part of the strategy The point I want to leave Members with is that it is we have pursued, and that was underlined in last week’s essential that we continue to make our economy work Budget. for families, pensioners and people who need assistance, We need more savings and we need to turn the because that is how we will generate the capacity to pay economy into a saving economy rather than one of for all the things we need. That is why the growth rate of debt. The actions taken to encourage not only pensioners 2.6% is very welcome: it is sustainable and reliable and to save, but young people to save for mortgages, are we should embed it. The long-term economic plan absolutely fabulous. Our course is absolutely right and should be saluted and cheered at every opportunity. we can only conclude that we have cause to celebrate. The Budget is also about rebalancing the economy 7.47 pm and creating a real economy that actually makes and Meg Munn (Sheffield, Heeley) (Lab/Co-op): I am sells things. We need infrastructure not only to enable pleased to speak in my final Budget debate. In his our manufacturers and engineers to operate, but to Budget speech, the Chancellor said: promote and save the environment. That is why I was “Future economic success depends on future scientific success”.— really pleased that the Chancellor recognised the need [Official Report, 18 March 2015; Vol. 594, c. 776.] for more investment in my constituency to defend our I agree entirely, but this Budget does not do enough to land and houses against flooding. That is appropriate unlock the potential of our science, engineering and because it is both a real economy activity and worth technology industries, which have the capacity to grow while. and to invent and develop new products that will create Training and education is another big area. I have jobs and wealth. Research by EngineeringUK shows been campaigning for some time for a university technical that simply filling the demand for new engineering jobs college in my constituency and we are going to get one could generate an additional £27 billion a year for the on the site of the old Berkeley power station. This UK economy from 2022. Government are committed to training, because it makes The Government claim that 8% of jobs created while it possible for people to get jobs that last and that are they have been in power have been in skilled occupations, high skilled and worth while. That is exactly what the but the large demand for more skilled people is not Secretary of State for Work and Pensions said earlier: being met. We need more engineers. Companies need 80% of all new jobs are full time and 80% are high 182,000 people with relevant engineering skills per year. skilled. That is what we want to see, and that is what I am seeing in my constituency. The situation has been Mr Jim Murphy (East Renfrewshire) (Lab): I think I buttressed by the performance of our economy and speak on behalf of the whole House when I say that we strengthened by the Budget. regret that this is my hon. Friend’s last ever speech in a I have also been campaigning for action to make it Budget debate. On the need for more engineers and easier for road hauliers to recruit and train drivers. The qualified people, will she reflect on the particular need Chancellor has helpfully responded by signalling in the for more women in engineering roles? Budget that that is exactly what is going to happen. Not only have I successfully campaigned for a university Meg Munn: My right hon. Friend may know that I technical college in my constituency; I have also been at have been banging on about that for years; I will come pains to make sure that manufacturing and engineering to it shortly. are put under the spotlight and that schools and colleges There is currently an annual shortfall of about 55,000 work with business to make it a reality. We have to skilled workers. The Chancellor’s commitment for financial continue to attract investment, so what has the Chancellor support for PhD and research masters degrees will done? He has made it easier and more attractive for certainly help, but to keep up with demand we need to businesses from afar to come to my constituency. That nearly double the number of engineering graduates. We 1195 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1196 Situation Situation [Meg Munn] enabling people to live full, independent lives. By contrast, the Budget will do little or nothing to contribute to need action on a much larger scale. We should be these services. slashing tuition fees for engineering courses and providing When I was first elected 14 years ago, my constituents bursaries to help students with living costs. were seeing the start of the investment in the public The Government tried using a programme to increase realm that characterised the Labour years—new schools, the number of skilled women engineers, but it was a hospitals and health centres and improved roads all led complete failure. The employee ownership fund had to better lives. This year, the revenue support grant for £10 million to develop women engineers, but just £104,000 my local authority will have been cut by 50% compared has been allocated. Unfortunately, despite me and the with 2010. Local government cannot continue to absorb Women’s Engineering Society—of which I am a patron— such pressures. It is no wonder that the people of my pressing them, the Government have refused to reinvest city have little time for the Tories. This Budget did not the unspent funds into schemes specifically aimed at try to tackle the real issues at local level or to provide women. solutions to real problems, and it will do little to improve the lives of the constituents whom it has been my Public services have been neglected not only in the privilege to represent for the past 14 years. Budget speech, but in reality. The Chancellor tried to give the impression that the Budget devolves resources to northern cities. He also claimed that 7.53 pm “the quality of public services has not gone down—it has gone Jeremy Lefroy (Stafford) (Con): It is a great honour up.”—[Official Report, 18 March 2015; Vol. 594, c. 770.] to follow the hon. Member for Sheffield, Heeley (Meg Munn). I entirely agree with her on two matters. The However, the reality is that our front-line services have first is the need for more engineers, particularly women been cut to the bone. The fundamental question is: how engineers. I saw that when I visited Alstom in my they will be funded in the future? The silence from the constituency recently and met women engineers, all of Government Benches is deafening. whom came from outside the UK. They are very welcome In the next 10 years, there will be a 27% increase in there, but with one exception, there were no British the number of those aged 80 or over in Sheffield. female engineers. The second is her call for a new model Without a new funding settlement, social care services for health and social care funding, which the next will be severely affected, with more and more of my Parliament will have to look at. At the moment, what constituents unable to receive the preventative, joined-up we have from most—in fact, all—of the major parties is services they need, and some will receive no support at a sort of patchwork of funding for health and social all. How much longer are the Government going to spin care, but that is not enough to meet the demographic the better care fund as a fund? They claim that my local needs of the future. authority will revive £37.8 million, but that figure represents In May 2010, the number of jobseeker’s allowance the total amount of pooled budget shared with the claimants in my constituency was 1,530, but it is now NHS: they are top-slicing existing resources. Not well below 600, the lowest figure since the current series surprisingly, decimating social care puts more pressure of records began. However, there is absolutely no room on the NHS. I am not surprised that Sheffield Teaching for complacency. Not only are we working for full Hospitals NHS Foundation Trust has rejected the employment in Stafford, we want wage levels to rise in Government’s most recent offer on budget cuts, under real terms. I will give a few examples of where the which it would have had to find an additional £40 million additional jobs have come from. in savings. Enough is enough. On Friday, I visited Turner Construction, which In recent months, reports of child sexual abuse have specialises in civil engineering works, house building been widespread, but a recent Ofsted report concluded and fitting. It plans to more than treble its turnover and that three quarters of councils do not deliver children’s work force between now and 2018, having already trebled social care to a good enough standard. The Public its work force since 2009. That reflects two things: one is Accounts Committee has found that there has been people’s increasing confidence in the performance of little or no improvement in outcomes for children in the economy, which means that they are investing in foster and residential care, nor in how well they are extensions and new kitchens; and the other is that house looked after. It highlighted the abject failure of the building is picking up again. Figures from the National Department for Education to take any responsibility House Building Council show that the number of homes for driving up standards. Let us not underestimate the started in my constituency has increased from 317 in effect of the downward pressures on local authority 2013—compared with a national average of 188—to budgets in contributing to these issues. The College of 473 last year. That includes a welcome increase in social Social Work has called on the Government to allow real house building, particularly through Stafford and Rural social work to thrive and to invest in the service. It is Homes. The increase is partly owing to the arrival of hugely disappointing that the Government have again 1,000 servicemen and women and their families from failed to make extra funding available to protect children this year. That has brought Stafford an investment of from sexual abuse. £150 million in military facilities and homes, and should Social workers are often the glue that holds integrated provide a permanent boost of at least £15 million services together. They possess the skills and expertise annually to the local economy, as well contributing to lead multi-disciplinary teams and to provide help, greatly to community life. care and, where necessary, protection. As such, the Last month, I attended the opening of the Risual profession plays a key role in reducing delayed discharge, academy at Stafford college. Risual is an IT business, bringing mental health services into the mainstream, which was established in 2006, and now employs 120 people, preventing emergency admissions, and supporting and with much of its increase having come in the past 1197 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1198 Situation Situation three years. It, too, intends to expand its staff considerably opportunity. The Government had a chance to move in the coming years, but it has run up against a skills away from a cuts agenda that has stifled recovery, but shortage, as other hon. Members have mentioned. That they failed to take it. Instead, Scotland alone is looking is why it has decided to work together with the local at a further £12 billion of cuts over the next four years, college to train young people to take up such positions. which will hamper our economic recovery, damage our If businesses are to expand or modernise, they need public services and harm our poorest communities and the space to do so. That is why Staffordshire county families. council has invested in a new business park to the north Everyone welcomes the fact that finally the economy of Stafford. The wisdom of doing so was shown when is recovering and unemployment is falling, but it has Alstom announced in late 2014 that it would build its been a painfully slow process. It is the slowest recovery new world-class research and manufacturing facility for from recession in history. The OBR does not expect real automation at Redhill, despite the fact that, as an wages to return to 2008 levels until the second quarter international company, it could have chosen to go elsewhere. of 2016. On the most recent figures, the UK’s GDP per Its large transformer factory, which is the only one in capita is still 1.8% below pre-recession levels and the the UK, has a full order book, almost all for exports. current account deficit—a measure of our trade and The Perkins engine plant in Stafford has also invested in income flows with the rest of the world—is worse than the past few years, both in plant and in apprentices, and at any point in the UK’s history. it too makes a considerable contribution to the UK’s In 2010, the Chancellor said that the UK would run a balance of payments. surplus of £5 billion in the current structural budget If we are to continue that story of successful job this financial year. Instead, he now expects a structural creation and investment, there is much we need to do. current deficit of over £45 billion. In the six years to First, we need to improve careers guidance and advice. March 2016, the Chancellor’s borrowing target from That issue has been raised with me by students and 2010 is set to be missed by £150 billion. The austerity employers, and it is part of the manifesto of the Institute programme simply has not worked in the way he led us of Chartered Accountants in England and Wales, of to expect. which I am a member. Secondly, the increase in If austerity has failed in economic terms, it has been apprenticeships during this Parliament to more than a disaster for people, especially people on the lower half 2 million needs to be maintained. I welcome the pledge of the income spectrum. When we look at the cumulative to increase the number of apprenticeships to 3 million, winners and losers from the changes to the tax and but we need to work continuously to improve their benefits system over the past five years, we see that quality.Thirdly, we have to continue to increase investment those who are trying to raise children have taken some in infrastructure. Fourthly, we need to improve productivity. of the heaviest hits to their incomes and living standards. As hon. Members have mentioned, we still lag well The distributional analysis by the Institute for Fiscal behind our competitors. There is no simple solution: Studies demonstrates that in every income group, better training, more spending on research and development households with children have lost relative to those and greater investment in plant and equipment will all without children. help, but education about work and working effectively Given the rapid growth of child poverty levels, we at school are also essential. Finally, we need to maintain should be particularly concerned about those in the the drive to improve exports. UK Export Finance has lowest-income households. The Child Poverty Action been expanded, and the UK’s diplomatic network has Group points out that almost two thirds of the children been put at the service of exporters, but we need to do who are growing up in poverty in the UK today have at far more if we are to reach our target of £1 trillion of least one parent in work. I have said before in the House exports by 2020. that in-work poverty is one of the greatest challenges we In conclusion, I want to address the opportunities in face. The Budget offers little that will help those families. the heath sector. In Stafford, we are very aware of the Indeed, measures such as the increase in the personal importance of our national health service. We have allowance tend to benefit higher-paid workers and higher- been through extremely difficult times, but we have rate taxpayers far more than those in low-paid work. worked together as a community to ensure that we That is symptomatic of the wrong priorities that we retain an excellent district general hospital with an have seen from this Government. On the Government’s accident and emergency department, when some people own figures, the poorest 20% of households will be told us that it would be closed or privatised, or would worse off by an equivalent of £466 a year. I am fortunate become a cottage hospital. We are still campaigning for to represent a constituency in Aberdeenshire where a return to 24/7 A and E with paediatrics and consultant-led unemployment is extremely low, yet in parts of Banff maternity, and we will continue to fight. At the same and Buchan, one in four children is growing up in time, however, I welcome the investment being made in poverty. refurbished wards, operating theatres, the expanded A and E department, chemotherapy and dialysis. In Stafford, Mr MacNeil: Does my hon. Friend agree that the we are building the district general hospital of the increase in VAT, which was proposed by the Liberals future, with an emphasis on acute care for the frail and and the Tories, certainly did not help poor people, and elderly, alongside first-class general services for children that it is unforgiveable that Labour abstained on that and adults. I am determined to work with everybody to vote? make that dream a reality. Dr Whiteford: I agree with my hon. Friend that 7.59 pm regressive taxation has played an important part in Dr Eilidh Whiteford (Banff and Buchan) (SNP): The driving up child poverty. The pernicious combination of thematic focus on jobs in this debate helps us to get to low pay and cuts to tax credits and child benefit has the heart of why last week’s Budget was a huge missed been the main driver of child poverty in our communities 1199 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1200 Situation Situation [Dr Whiteford] 8.5 pm Richard Graham (Gloucester) (Con): Today’s debate and of the increased pressure on parents to comply with focuses on work and pensions—the two issues that are the sometimes quite unreasonable and disproportionate at the heart of this Government’s mission to ensure that conditionality in the system. everyone is better off working and everyone is better off Child poverty has long-term consequences for the saving. Neither of those things was remotely true in health, education and life chances of those who experience 2010 and both are much closer to being true today. It is it. That is why it is short-sighted of the Government to vital that Britain allows this Government to finish the short-change families and inflict yet more financial job of making both those crucial philosophies true. pain on those who are already carrying the can for the financial collapse. The first part is about ensuring that universal credit is rolled out and implemented effectively everywhere. That I do not want to leave the topic of jobs without means that, finally, the tax credits that have prevented acknowledging the significance of the Budget so many people from working for longer than 15 hours announcements on the North sea fiscal regime. Many will no longer prevent people from doing so and that of the better-paid jobs in my constituency are in the many of my constituents will have the chance to benefit energy sector. However, it is not just those who work from having full-time jobs. directly in the oil and gas sector and its supply chain who depend on the industry, but myriad large and small At the same time, we need to get the spirit of the local businesses, including retailers, hoteliers and service triple lock, which has brought security so effectively providers. The Government’s U-turn on the fiscal regime to those on the basic state pension by giving everyone in the North sea, at long last, is very welcome, but it £950 more than they were getting in 2010, into the could have been done months ago when problems started world of annuities, which have been liberated, so that appearing on the horizon—some of them predating the those who need and want them can have them, but fall in oil prices. It has taken the Chancellor four years those who do not want them do not have them. The to reverse the tax increases he has imposed on the sector small income that many of my constituents generate since 2011. from their savings should not be taxed, so that there is Will the Chief Secretary, who is back in his place, an incentive to save. The means-tested pension prevented now accept that his supplementary charge was a mistake many people from saving, because they could see that that has had a detrimental impact on our offshore their neighbour was better off not saving. We must not energy sector and on the people who work in the allow that world to continue. industry, onshore and offshore? Will the Government That is our mission. It is what my right hon. and provide assurances that their poor stewardship of our learned Friend the Member for Rushcliffe (Mr Clarke) oil and gas resources will give way to a period of fiscal called free market economics with a social conscience. stability for the sector? Over the past five years, the one In my words, it is getting the economy right in order to consistent chorus that I have heard from every part of improve lives. That is the mission that this Government the industry has been, “Stop shifting the goalposts on have been on for the past five years and it must continue. tax.” While we are still seeing announcements of job How does it feel on the ground in my Gloucester losses in the north-east, it is more important than ever constituency? Youth unemployment went up by 40% that the industry can plan ahead with confidence. under the previous Government and it has gone down There has been a cosy consensus around austerity by almost 60% under this Government, from 760 to that implies that it is inevitable, necessary and unavoidable, 345. There were too many families with two generations, but there is nothing inevitable about it. The Chancellor if not three, in which no one was working, meaning that had headroom in the Budget to make small increases in there was no role model. Some 2 million children across public spending, while still bringing down the deficit the country were growing up in those households. and debt. Such small increases would help to protect Today, we have 5,900 new apprenticeships in Gloucester, our public services and our social fabric, which has which is more than double the pace under the previous never looked so worn and fragile. Professor Simon Government. That is not about statistics, but about Wren-Lewis of Oxford university argues that the opportunities for individuals. People who come from Government’s austerity programme may have cost the backgrounds that meant that they never imagined they UK economic growth equivalent to 5% of GDP. No would be able to get a job and that they faced a future doubt economists will argue the toss on the detail, but on benefits are getting the skills that they need for a the huge loss of potential tax revenues that that represents lifetime of opportunities. In terms of social justice, helps to explain why the OBR’s 2010 forecasts on public there is no better individual story than that of Beauty—a borrowing have been £150 billion out over the past six Nigerian woman who was trafficked to this country and years. who, with help from a number of us, was given the An alternative approach to deficit reduction could chance to stay in this country and is now training to be benefit the economy and expand the tax base, bringing a nurse in a hospital in Gloucestershire. That is the real and sustainable economic growth. The benefits of mission. that are simply not reflected in the Treasury’s modelling. The SNP leader, Nicola Sturgeon, has set out an alternative Interestingly, only today, I read the best indicator I to the austerity agenda to support jobs and public have come across of business confidence in the south-west services. I hope that in a few weeks’ time, an enhanced of England. It stated: group of MPs will sit on these Benches and make that “Turnover and profit growth are expected to remain steady”. case. We will be a strong voice not just for the people of It said that there were good prospects for jobs. However, Scotland, but for everyone in the UK who wants a there was a but: the prospect of a new Government progressive alternative to this failed austerity project makes many business leaders nervous about their long-term and this failed coalition Government. prospects. It is no surprise that businesses are nervous. 1201 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1202 Situation Situation They should be, and so should parents because the As a starting point, I will again look to Scotland. shadow Business Secretary announced recently that the During the recent debate surrounding the future of Labour party would axe the level 2 national vocational the UK, Scottish nationalists sought deliberately to qualification from being considered an apprenticeship. conflate the entire concept of England with Toryism. That would be a disastrous blow for the many people That is and was a knowingly false claim. The insinuation who leave school at 16 or 17, start with a level 2 and go beneath the lie was that the English are content with on to improve the level of their apprenticeship. London’s dominance of the national economy and We need a Government who are fiscally responsible—as with how Westminster functions, but nothing could be the Budget was—and who produce specific instances of further from the truth. In cities such as Liverpool, improving the lives of our constituents. I was delighted Manchester, Newcastle and Leeds, dissatisfaction with with the encouragement for tidal lagoon power and its how London runs the show and how Westminster functions first historic opportunity to develop marine energy is about to erupt. People are dissatisfied all over the from Swansea bay. The company is headquartered in country, so I will talk about regional growth policy for Gloucester and is a £1 billion project. Opportunities in England. the future with three or four further tidal lagoons will Regional devolution is a necessity, but it is only the offer thousands of jobs in south Wales and around beginning of what England requires. Beyond our great Gloucestershire. There was also encouragement for my cities, the nation building that England needs will be plan for the redevelopment of Gloucester railway station. much more difficult, and the Government must begin to That was confirmed by the announcement this morning concentrate their efforts in the peripheral areas outside by the Department for Transport that we will be getting our major conurbations. England is beset by a toxic a new station car park with up to 240 new places and a disconnection between the governed and the governors, new entrance to our station on Great Western road, and that problem is central to the proposition of regional linking our hospital and the station directly for the first economic growth in our country. Nowhere is that time. That will come in 2016. disconnection more keenly felt than in that forgotten I also welcome the announcement by the Chancellor—we England, largely ignored by the political mainstream await the full details—that the campaign that I and my and the national media—those places people have heard hon. Friend the Member for Winchester (Steve Brine) of but have never been to. In our rugby league towns have been running for justice for police widows has and our lower-league football cities, a crisis is taking been accepted by the Government. That is a good grip that the Budget did nothing to address. Right now, example of where a stronger economy allows for social England’s peripheral economies are experiencing a collapse justice and for the Government to make decisions that in their reserves of “social capital”. improve the lives of those who, through no fault of Social capital can be defined as those people with their own, were victims of an historical injustice. “talent”: literate, numerate, ambitious, financially adept Some things remain to be done, and we await the and engaged with civic society. Successful regional details of the retirement guidance on savings. That is economies are built on that class, which oxygenates critical and we must work to ensure that it is good. We local economies and acts as the arteries of local and must continue with auto-enrolment and to reverse the regional civic life, including in health care, local government decline of those with pensions and savings. We might and commerce. In short, the Government’s task in those consider a new ISA for care. Yes to 3 million apprenticeships areas should be to create nothing short of a vibrant, —deeper, broader and perhaps more for the over 50s. thriving, mercantile class. Whatever public investments The hon. Member for Leeds West (Rachel Reeves) said those areas might receive, without the software of social there have been five wasted years, but they were not capital, new hardware will be largely pointless. We have wasted. We must now build on those years to ensure seen that in a blunt and unsophisticated way through that we go forward with an even better, stronger economy, our foreign policy efforts in “nation building”. It is now helping those who have less. time for nation building in England. 8.11 pm In many places, driven by austerity, the community fabric is being destroyed and the pillars of local society Mr Jamie Reed (Copeland) (Lab): It my solemn duty and community are disappearing. Therefore, when the to inform the House that outside this Chamber the Chancellor presents a Budget in which the takeaway Prime Minister has informed the BBC that he will not message is that “the worst is yet to come”, those areas seek a third term as Prime Minister. I think this is a understandably wince. Such communities are used to constitutional first. It is the first time in our history that dealing with the consequences of factory closures, but a a Prime Minister who has yet to win a general election— new challenge is on the horizon. What happens to these let alone contest a second one—has ruled out serving communities when the Government pull out? It is a a third term as Prime Minister. We are all grateful, vital question and left unanswered by the Budget. At Mr Speaker. the centre of attempts to drive regional economic growth As the MP who represents England’s most remote is the essential question about the role of the state. and least accessible constituency from Westminster, I What size should it be? Should it command more or less was disappointed but not surprised by the Budget. The resource? Should those resources be spread more thinly, job of any Government, particularly in the wake of performing more functions, or should they be concentrated the Scottish referendum, must now be to facilitate the by performing less? Away from that debate, austerity is ambitions of the English regions. A new constitutional not just crucifying the public and private sectors in settlement for Scotland also compels a new constitutional these peripheral areas; it is also causing the social settlement for the other nations of the United Kingdom. capital to flee. Life outside the premier league is tough, Difficult? Yes, but inescapable, and the Budget ducked as figures released today by the Industrial Communities that challenge. Alliance demonstrate perfectly. 1203 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1204 Situation Situation [Mr Jamie Reed] have constantly attacked our public services in an attempt to balance the books. Under the coalition we have seen For my constituents, the Budget provided precious the erosion of pay and conditions for teachers, the little in the way of encouragement for our ambitions—those police and firefighters, despite campaigns to demonstrate ambitions are likely to be achieved despite, not because clearly that those workers have a case. To add insult to of, anything the Government are likely to do. After injury, the 1% pay rise announced by the Chancellor 10 years of work, Copeland and west Cumbria—Britain’s last year did not apply across the board, with some energy coast—is on the verge of a transformative era workers—particularly nurses—scandalously missing out that will see billions of pounds of investment, tens of on that below-inflation increase. thousands of new jobs, and the emergence of our area This year in the Chancellor’s Budget, civil servants as a world leader in high-skilled engineering, manufacturing will lose any remaining contractual pay progression. and research and development. Moreover, the announcement of a further £30 billion of We are about to witness investment on an Olympic cuts to come will not only be an attack on the most scale, and the Government should have used the Budget vulnerable in society, who have no choice but to rely on to ensure that we have the tools we need to deliver on the welfare system, but will mean public servants facing our ambitions after five years of savage cuts to our area, the threat of further job losses, further cuts to their pay but that has not happened. We needed more investment and conditions, and for those who keep their jobs, more in developing skills for local people and our young pressure in the workplace. people, to ensure that we can truly benefit from the The Public and Commercial Services Union points work we have put into developing Britain’s energy coast out that in the past few years public sector workers have after the last 10 years. In west Cumbria our local suffered a loss in real wages of up to 20% because of the secondary schools require significant investment after pay freeze and pay cap, as well as higher pension the Government withdrew the Building Schools for the contributions. Many workers in the civil service are on Future money—almost £70 million—allocated by the low pay. Ironically, the very workers who will be previous Government. Along with local head teachers, administering universal credit will be eligible to receive businesses and Cumbria county council, I am developing it themselves. a plan for secondary school investment in my constituency, but the Government must contribute to that. Their The Government have made big play of the fact that record so far has been shameful, and if they cannot or they want to tackle tax evasion and avoidance. However, will not fund new secondary schools, they should at with proposals afoot to reduce the number of Her least help to enable and expedite such schemes. Majesty’s Revenue and Customs staff by 10,000, the Chancellor will be hard pressed to collect the £5 billion I would have liked the Chancellor to have supported target he has set, which falls far short of the tens of my call for improvements to the A595, and for more to billions actually lost to the Treasury every year. HMRC have gone into our health service. I would have liked the is stretched to the limit and the team responsible for the money that was taken from hospitals in Millom, Maryport, enforcement of the minimum wage has fewer than Keswick and elsewhere immediately after the last general 200 staff across the country. In fact, HMRC needs election to have been addressed, but it was not. It is a 100 more compliance officers to ensure that workers matter of record and frankly weird that the Chancellor can get what they are due. How can the Chancellor spoke about the battle of Agincourt more than he claim that living standards are on the rise when the vast mentioned the NHS in his Budget statement, and he majority of ordinary people working for Government could have done a lot more to ensure that local government Departments across the land have seen their living was given the type of settlement it needs. standards and job security fall year on year under this William Cobbett, the radical Tory, left a chequered coalition? Poor growth and poor pay will do nothing to legacy that was in part contemptible. He also wrote boost our economy. It is no wonder the Chancellor has “Rural Rides”, which was published in 1830 after touring not been able to clear the deficit as he promised he England on horseback to discover for himself the condition would do by this year. of England. He famously wrote: I would like to raise another important employment “I defy you to agitate a man on a full stomach”. issue. I listened attentively to what the Chancellor had The Chancellor and the Prime Minister should saddle to say about helping the oil and gas industry. His words up, get around England and see for themselves in the were good news for the industry, which has been hit so 21st century the agitation in the country at large. hard by the fall in oil and gas prices. That is all fine, but, while the measures will help operating oil and gas companies, there is nothing to ensure that in return for 8.17 pm concessions there will be an expectation that UK fabricators Mrs Mary Glindon (North Tyneside) (Lab): It is an will be given the opportunity to tender for related honour to follow my hon. Friend the Member for contracts. In the past five years, the majority of North Copeland (Mr Reed) who is such an advocate for the sea fabrication contracts have gone overseas. The north and particularly his area. Government could do a lot more for the fabrication When I made my maiden speech in June 2010, I paid industry without breaching either EU or World Trade tribute to former colleagues working in the Child Organisation regulations. Companies such as OGN in Maintenance and Enforcement Commission at North Tyneside have a track record of supporting thousands Longbenton, and said to Members that we as fellow of jobs when they win these contracts, instead of companies public servants should do all we can to protect our from other countries which benefit directly at the expense colleagues across the public sector from harsh Government of the British taxpayer. cuts. My words obviously fell on deaf ears as far as the In conclusion, people in North Tyneside, whether Government are concerned, because since then they they work in the public sector or the private sector, have 1205 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1206 Situation Situation little hope for a better future with this Budget. The Tory Whitehall mandarin will tell the Chancellor is a crazy, Chancellor has let the people of North Tyneside down not to say utterly irresponsible, way to manage public yet again. services. He claimed that national debt will begin to fall in 2019-20, but that is only because he is planning to 8.22 pm pocket the £20 billion windfall from selling off the proceeds of bank privatisation, not because there has Mr Michael Meacher (Oldham West and Royton) been any change in the fundamentals of debt inflation. (Lab): The Chancellor did not deliver a Budget last The Chancellor complimented himself on a nationwide week; he delivered a party political broadcast on behalf recovery. The truth is that London and the south-east of the Tory party. The macro-economic state of our continue to pull away from the rest of the country. country, which is the real purpose of a Budget statement, Manufacturing and construction still badly lag behind was almost entirely absent. His speech had two purposes: the financial sector. He claimed that Britain stood tall first, to give the impression that the worst of austerity and was now beginning to pay its way in the world. The was now over and that the sunny uplands now beckon if truth is exactly the opposite: the OBR is predicting that only we vote Tory at the election; and, secondly, to in 2014 Britain had its biggest current account deficit shoot as many Labour foxes as he could squeeze into an since 1845. I repeat that: not 1945, but 1845—nearly hour on his feet. I want to show that he failed on both 200 years ago. counts. The Chancellor claimed that with rising real wages, The Chancellor claimed that factors such as lower albeit by a fraction and only because of the collapse in inflation enabled him to ease up on austerity by pulling oil prices, prosperity was now returning to British back his target of a £23 billion surplus after the elimination households. The truth is that real wages are still nearly of the structural deficit to a mere £7 billion. The fact is, 8% below their pre-crash level, while at the top inequality however, that the pathway by which he might meet even marches on relentlessly. The ratio between the average this more modest target of a £7 billion cutback is, FTSE chief executive’s remuneration and median pay in frankly, pure cloud cuckoo land. The rate at which the those companies is now on average more than 140:1. deficit has been cut by this Chancellor has averaged so The Sunday Times rich list shows that the richest 1,000 far about £7 billion a year. The deficit still stands at people in the UK have actually doubled their wealth in £90 billion. Yet according to page 23 of the Treasury the past five years, from a staggering £250 billion to an Red Book, the deficit will supposedly go down by almost unimaginable £500 billion. I think the conclusion £15 billion next year, then by a whopping £36 billion the from all this is unavoidable: the real problems of the year after that, then by £27 billion and then by £18 billion economy have not been addressed, we are investing far in 2018-19. These are, frankly, confetti figures. They too little, productivity has collapsed and the UK continues have been manufactured and thrown about simply to to run up debts at an unsustainable rate. produce a political feel-good factor that somehow austerity is easing off. This is the most enormous con being perpetrated on the British people. Either those figures 8.28 pm are wildly wrong and will never remotely happen, or, if Mr Jim Cunningham (Coventry South) (Lab): The the Chancellor does choose to push them through, they Government parties are trying to brainwash us into will mean cuts in benefits and departmental expenditure thinking they have an economic plan, when in actual on a scale of up to three to four times anything that has fact it is an economic puzzle, given some of the measures previously been experienced. I suggest that the nation announced. will never stand for that. If he does press them, I think The Government have to be challenged over their there will be an explosion on the streets. allegation that the Labour Government created the The Chancellor also failed to shoot Labour’s fox that economic situation in 2010. I think the Conservatives he is still determined to take the British state back to the have forgotten that in opposition they said they would 1930s. That was the cat he let out of the bag in his match our Budget pound for pound—in fact, they said autumn statement three months ago. Page 75 of the we were not spending enough. That does not suggest Office for Budget Responsibility report on the Budget any economic foresight on the part of the Chancellor gives the lie to any idea that he has backtracked when it when he was shadow Chancellor. Moreover, the previous states that Government expenditure under the Chancellor’s Governor of the Bank of England, who was an adviser latest twiddling of the figures to the then Chancellor and Prime Minister, said it was “would be the joint lowest level in consistent National Accounts not the Labour Government’s fault. It actually started going back to 1948”. in America with Fannie Mae and Lehman Brothers—the The truth is that almost all the vainglorious boasts bankers—and the housing crash. In other words, the the Chancellor made are either seriously misleading or Government have become apologists for the bankers, not supported by the evidence. He claimed that the rather than holding them to account for what they did deficit was being cut this year, when in fact that is only to this country and the international community in due to the exceptional delaying of tax payments until 2008. the end of the fiscal year by the super-rich to take We should also remind the Government that we kept advantage of the reduction in the top income tax rate to interest rates down to help young people, in particular, 45%. Without that, which of course will not be repeated, deal with negative equity. We introduced the quantitative the deficit would have risen this year, and on present easing that the Government are still carrying out today policies, it will rise in future years. and persuaded George Bush—funnily enough, a The Chancellor promised the biggest increase in real Conservative American President—to pump more than spending for a decade in 2019-20. As others have said, $200 billion into the American economy, and when however, that is only because of the rollercoaster boom Obama came in a month later, he saved the motor car and bust after massive cuts in 2016-18, which any industry, which helped this country. If we had not 1207 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1208 Situation Situation [Mr Jim Cunningham] Chancellor proved to us all just how out of touch and deluded he and his Government are. Apparently, people bailed out the banks, some Ministers would be losing in my South Shields constituency have better living not just their houses but their pensions. We bailed out standards than they did in 2010, despite weekly pay the banks partly because we knew that otherwise the across the north-east being the lowest in the country ordinary person—the pensioner, the saver, the young and dropping again just last week, prices continuing to person saving for a mortgage—would have gone under, rise, public sector jobs being shed at the rate of over but it also helped to rejuvenate industry. 1,000 a month since 2010 and having 28,000 people in As far as we know, the Chancellor needs to make the north-east stuck on exploitative zero-hours contracts. another £30 billion of cuts, but we do not know if that At the same time as the Chancellor was making his means more cuts to the police. We know there will be statement, one of my local food banks moved to larger benefits cuts, but we do not know where they will come premises to cope with the increase in the working poor from, and defence cuts, but we do not know whether they feed. That is hardly a record that any Chancellor there will be further cuts to the NHS. I am not should be proud of. When he boasts about full-time scaremongering. Unless the Government tell us exactly employment, what he fails to mention is that this includes where the cuts will be, it will be open to speculation. those who are self-employed. The reality for many of They have emasculated local government financially—is the self-employed I have spoken to is that they are low local government facing further cuts? Is that part of the paid: some do not even take a wage themselves and plan? In Coventry, at least 1,000 jobs will go over the many do not work full time. It is worth noting the next three years, and the city council has to find £75 million correlation between high levels of self-employment, low in cuts, which will affect basic services. Today I attended pay and poverty. We need look only at other EU countries a school where children were trying to save their local where self-employment is high—Greece, Spain and library. The council has granted a reprieve, but there is Portugal, which are countries where working people are another area where the council might find itself in struggling. difficulty—care in the community. There has been bed On hearing the Chancellor’s speech, people in Shields blocking at the university hospital in Coventry because will have concluded either that he does not know their we do not have enough social workers to discharge pain or that he does not want to know. I bet he does people back into their own homes. Labour will certainly know that many of the people taken out of the put that right. unemployment figures in Shields have not found People in the public sector have not been appreciated employment at all, but have been unfairly sanctioned or and have had their wage increases held at 1% for the last ushered into meaningless training courses just so they three or four years. The Government can say what they do not show up in the stats. If so, the Chancellor is like about wages rising by about 2%, but purchasing painting a picture he knows does not match up with power has dropped by 6%. They say we are back to 2010 what is really happening in our country—a picture that wage levels—well, that is one heck of a cut over the past my constituents are far too smart to fall for: they will four or five years. We have also had cuts to the legal aid see right through it. budget, meaning that people cannot get social justice. It was not only on living standards that the Chancellor’s We have 1.6 million people on low-wage zero-hours hype did not match the reality. What about his so-called contracts, yet the Government have the effrontery to northern powerhouse? We were told to expect big hand back £6 billion in tax cuts to their friends. The announcements, but in our part of the north, there were Chancellor proposes to cut £12 billion by reducing next to no announcements at all. He mentioned the welfare spending and £13 billion by reducing departmental north-east once in his speech and for every five projects spending. Where is this coming from? Only £2 billion of announced in London and the south-east, he announced cuts have been announced, so where might these cuts one for the north-east. come from? I have already indicated some areas where Looking more closely at the Chancellor’s plans for they might fall. our region, it appears that they are totally vacuous and The NHS is due to have increased funding in line simply an afterthought. The northern transport strategy with Simon Stevens’ proposals, which the Government document re-announced a number of projects, some of are supposed to be in favour of. Similarly, the education which are still not under way. There was no announcement budget is supposed to be protected, as is overseas on business rates. Talks about reopening a ferry route to development assistance. As I just mentioned, the Norway were “welcomed”, but without a commitment Government have promised £6 billion in personal tax that the Government would do anything to make any of cuts, without bothering to inform us how they will be these things happen. costed. We should also consider the NATO commitment I have been a Member of this House for just under to spend 2% of GDP on defence, which the Prime two years. Prior to that, I lived and worked under this Minister recently advocated. If they do not achieve this, Government, and I am telling the House now that will we see more cuts and job losses in the defence things were tough—at times, really tough. Life beyond industry? The Government have also promised to ring this place has got tougher for the people of this country. fence universal benefits and the state pension triple I wanted to be here to give a voice to the people in my lock. So it comes down to this: where do they plan to constituency who have suffered under this Government, make the cuts and why will they not open up and tell us? and to fight for a Labour Government because Labour has a different way—a fairer and more balanced way. 8.34 pm We know from the Office for Budget Responsibility that another five years of this Government will bring a Mrs Emma Lewell-Buck (South Shields) (Lab): It is level of pain that will be nothing like the pain people a pleasure to follow my hon. Friend the Member for have already seen. People have a choice. They can opt Coventry South (Mr Cunningham). Last week, the for cuts to the vulnerable on a faster and crueller pace, 1209 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1210 Situation Situation deep and damaging cuts to our police, defence and is the fact that we are not building enough homes. I find social care budgets and total decimation of our NHS the Secretary of State’s bare-faced cheek extraordinary, coupled with VAT rises. On the other hand, they can given that his Government have delivered the lowest choose Labour’s plans to make work pay and bring the level of house building since the 1920s. During the deficit down in a more responsible way, while protecting run-up to the great crash, Labour were delivering 200,000 vital services like our NHS. homes a year. This Government’s record of building I conclude with the observation that the sun is certainly new and affordable social rented housing is abysmal, not shining yet, but come May, it will be—when we have and enormous pressure has been imposed on the private a Labour Government. rented sector, pushing up rents. The Government cannot duck the evidence. The UK 8.39 pm Housing Review and the live tables of the Department Alison Seabeck (Plymouth, Moor View) (Lab): I place for Communities and Local Government give clear on record my indirect interests in the register entry for figures for social rented housing starts and completions. my right hon. Friend the Member for Greenwich and The Chief Secretary may wish to listen, because he got Woolwich (Mr Raynsford). the figures wrong in the Chamber the other day. In 2009-10, there were 39,492 starts and 30,939 completions. The Chancellor had a throwaway line in the Red In 2013-14, the last full year, there were a meagre 3,961 Book referring to a review he plans to undertake if he is starts and 7,759 completions. That is a massive drop in re-elected and in government about whether the airport the number of homes available for social rent. It is also in Plymouth is needed and should be reopened. Let me a further indication that the rise in rents that has point him in the first instance to the report produced for resulted from people being given no option but to rent Viable, the group that has tenaciously kept the issue on in the private sector, and the increasing number of the boil, and the report of some 146 pages produced for so-called affordable rents, have contributed to the inexorable the city council at the end of 2014. I ask him to use rise of the housing benefit bill. those as a starting point rather than to delay the process by seeking a brand-new report covering the same ground. The Budget contains no measures to boost social In its Plymouth Plan, the city council has already housing numbers. Indeed, the Conservatives are now made clear its intention of protecting the airport site. talking about introducing a right to buy for housing We also know that at last, as part of its bargaining tool association residents, which would reduce the stock to persuade the Government to back its expansion further and leave people with low incomes facing the plans, Heathrow is considering offering slots or cash to pressures of the private rented sector with little hope of smaller regional airports, and it will be interesting to see finding homes that they could afford without recourse whether Gatwick follows suit. Governments of all to housing benefit. Successive Housing Ministers have complexions have missed a trick in relation to regional promised that their enhanced right-to-buy scheme, offering growth by not consistently supporting airports such as up to £77,000 per unit, would lead to a one-for-one Plymouth. Plymouth should be receiving the sort of replacement, but that scheme has failed dismally. Analysis help that Dundee has received, which I think could be shows that only one home has been built for every provided by the Government or one of the London 21 that have been sold. That is not solving the problem. bids. The Government are pushing more and more housing The inclusion of Plymouth’s enterprise zone bid says associations to become developers, building homes for a great deal about the quality of the offer, and I congratulate market sale rather than to meet social need. They will the Labour city council on making such a strong case, not be able to cross-subsidise from the market sales alongside the local enterprise partnership and businesses. sufficiently to cover the loss of units from a potential Chancellors do not throw money away so close to a right-to-buy option. That idea, floated by the Prime general election if they do not believe that doing so will Minister, is yet another reason why people should vote bring about a positive outcome. Plymouth, under Labour, Labour at the election. The hopes of home ownership delivers. aspirants can already be fulfilled through existing shared ownership schemes and other low-cost home ownership One of the Government’s biggest failures has been initiatives. their inability to keep the level of housing benefit down. Over the past five years, they have spent about £1.8 billion There has been a dramatic and deliberate reduction more than they planned to spend on housing benefit for in the amount of social housing, and a further right to people in work because they have depended on it to buy would have a devastating effect. The slashing of the meet the cost of the otherwise higher rents that they social housing grant has already led to a reduction in have imposed through “affordable rents” or the private the number of units that it has been possible to build. sector. That has happened notwithstanding the earlier David Orr, the chief executive of the National Housing mantra from, in particular, the then Housing Minister, Federation, has said that this is the right hon. Member for Welwyn Hatfield (Grant “not a budget to end the housing crisis.” Shapps), who made a number of rash promises virtually He did not mince his words, and he was right. Sadly, it is all of which, unsurprisingly, proved to be inaccurate or not a Budget that matches the reality of most people’s undeliverable. Since the election of this Government, lives, and it will not help them to deal with the pressures the number of working people who are forced to claim that they face. housing benefit to pay their rents has risen by more than 50%, and the Budget does nothing for them. 8.44 pm The Budget is very light on anything specific to the delivery of much-needed social rented housing. There is Graeme Morrice (Livingston) (Lab): Like the Chancellor’s the offer of an individual savings account for first-time previous five Budgets, this one does nothing to recognise buyers, but that will not solve the main problem, which or address the problems faced by my constituents and 1211 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1212 Situation Situation [Graeme Morrice] high, with 743,000 young people currently out of a job. In my constituency, youth unemployment remains above many others across the country. It is a Budget that yet the national average, with 3.6% of young people in West again demonstrates how out of touch this Government Lothian unemployed. Even when our young people do are. get jobs, many of them are insecure zero-hours contract The Chancellor talks of a national recovery and an jobs. There was nothing in the Budget to address any of economic plan that is working. However, the reality is these problems, and that once again demonstrates how that thousands of hard-working people in my constituency this Government have written off our young people. continue to experience low pay and in-work poverty. Young people need a Government who will listen to The Joseph Rowntree Foundation is right to say: their concerns and ensure they have a better future. “There was little in today’s Budget to enable those on the They need a Labour Government who will introduce a lowest incomes to be part of an economic recovery.” jobs guarantee scheme for all young people out of work Indeed, about 18,000 of my constituents currently earn for a year and over 25-year-olds out of work for two less than the living wage. years, and I have no doubt that this scheme will be of The Chancellor’s announcement of a 20p increase in enormous benefit to all young people in my constituency. the minimum wage will mean very little to my constituents. My constituents cannot afford another five years of It is yet another example of a broken promise from a the Tories, but it is clear that there would be further Chancellor who, over a year ago, promised to increase pain to come if they were to form the next Government. the minimum wage to £7 per hour. People in my Indeed, the Office for Budget Responsibility has warned constituency and across the country deserve better and that there is to be it is clear that more needs to be done to help those on “a sharp acceleration in the pace of implied real cuts”. the lowest incomes. It was a Labour Government who We need a Labour Government to ensure that that does introduced the minimum wage and it will be a Labour not happen. We need a Labour Government with a plan Government who go further and increase it to £8, for working people and their families and for our young because that is what people deserve. people. We need a Labour Government who will stand up for the whole of my constituency and for the whole Adam Afriyie (Windsor) (Con): I have been listening of our country. very carefully to the hon. Gentleman’s words. Will the Labour party raise it to £8 even if it should be higher than that? 8.50 pm Graeme Morrice: I think that is a possibility, and I am Ms Gisela Stuart (Birmingham, Edgbaston) (Lab): It glad the hon. Gentleman acknowledges we will have a is great to follow my hon. Friend the Member for Labour Government on 7 May. Livingston (Graeme Morrice), who has reminded me that when Labour introduced the minimum wage, it was Throughout the past five years, people have come to fiercely opposed by the Conservatives, who said it would my surgery to tell me that their benefits have stopped or bring about the end of the universe as we knew it. Also, that they are struggling to pay their bills, and what is unless I am much mistaken, that was when we had our clear is that, month after month, people are worse off last all-night sitting in the House. We kept the debate under the Tories, as the prices of food, heating and going until 8 o’clock in the morning, with a full house travel rise faster than wages. Given the continued struggle on the Labour side all waving their Order Papers as we faced by my constituents and many others over the last brought in the minimum wage. That was one of our five years, it raises the question: who is this Budget for? proudest achievements, and one that we should never The answer is that this is a Budget made by the rich for forget. We should never take any lectures from the the rich. Conservatives on that subject. The bedroom tax continues and so do zero-hours contracts, and retail energy bills do not reflect the fall in Today, I want to talk about the dog that did not wholesale costs. There can be no getting away from the bark—the thing that was not mentioned in the Budget. fact that working people are £1,600 a year worse off According to the latest news from Asda Mumdex, 70% after five years of the Tories. Indeed, the Institute for of women think that it is the most important factor Fiscal Studies is right to say that affecting their lives. It is called the NHS. I am not sure whether its omission from the Budget was the logical “the poorest have seen the biggest proportionate losses”. extension of the Government’s trying to take politics The Budget offered nothing to help families with out of the NHS, which the right hon. Member for children, who have borne over 70% of the impact of this South Cambridgeshire (Mr Lansley) tried to do with Tory Government’s changes to tax credits and benefits. dubious success. However, to try to do that now would The Chancellor said they “choose families” but it is be to deny the fact that the NHS is deeply political clear from the Budget that they choose millionaires. because it is a service that is dependent on an annual The Budget also offers nothing to help our young decision on what percentage of the tax take we should people. It speaks volumes that there was hardly any spend on it. mention in the Chancellor’s Budget speech of any real If do not know whether the Conservatives want to commitment to help our young people and their future take politics out of the NHS by moving to an insurance prospects. Our young people are the key to the future model, for example, but if they do, I would have to warn success of our country, and our young people deserve them about making comparisons with what is happening the chance of a secure job with decent pay. in the United States of America. The US spends 16.9% I know from speaking to young people in my constituency of its GDP on health but produces only 3.1 hospital that many feel a sense of hopelessness about their beds per 1,000 of population, whereas we spend 9.3% of situation. Indeed, nationally youth unemployment remains our GDP on health and produce three hospital beds per 1213 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1214 Situation Situation 1,000 people. So ours is an extremely efficient system. party, and I want to debunk some of them. The first is My constituency has some of the best in NHS provision, the suggestion that, somehow, the global financial crisis as well as the second largest number of doctors and life was caused by the Labour party. [Laughter.] The second sciences professionals in the country. If something cannot is that, somehow, that was because we had a light touch be done in Edgbaston, in the University Hospitals in our regulation of the banks. The third is that, somehow, Birmingham NHS Foundation Trust, then it cannot be our party is anti-business. Conservative Members started done. laughing when I mentioned the global crisis, but they I have set up an NHS tracker service for my constituents, perhaps need to be reminded that when Labour came to and in the past month, 400 of them have come forward office in 1997 the national debt to GDP ratio was 43% with responses which show that 17% said that either but by 2002, five years later, it was down to 30% under they or a member of their immediate family had been to Labour. So let us not have any lectures about our accident and emergency in the previous month, of whom financial prudence. only 78% were seen in under four hours, with 16% The banking crisis occurred later—I expect more waiting longer to be seen. Also, 67% of the respondents laughter—but Conservative Members should stop laughing said that either they or a family member had seen a GP because if the banking crisis was our fault, why were the in the previous month, with 34% being seen on the same USA, Japan and the entire world having the same day and 24% being seen in one or two days. However, problem? That is why it was called the global financial 11% had to wait more than a week to be seen, and 8% crisis. It was not the UK’s financial crisis; it was the waited more than two weeks. This tells us that the global financial crisis, which we know started with the service is being stretched to the limit. sub-prime mortgages in the USA, the collapse of Lehman We also know that the Government have tried to Brothers and the other things that happened. So it is delay a number of decisions until after 7 May. For wrong for the Government to have said what they have example, when Monitor tried to arrange the tariffs for said for the past five years, and I hope that the British specialised hospitals, the University Hospitals Birmingham people, who know the truth, will reject them at the NHS Foundation Trust faced a potential deficit of forthcoming election. £60 million because of the funding structure, but when We keep hearing about our light-touch regulation, a number of hospitals objected, all that happened was with people saying, “You took your eyes off the banks that Monitor delayed the decisions. We will now have to and you regulated them too lightly.” Yet this Chancellor wait until the end of May or early June and hope that and this Prime Minister were saying up until 2010 that the problem will go away. the Labour party was far too stringent on the regulation; The problem will not go away, however, because the we were being accused of stifling business and of over- botched £3 billion reorganisation that the Tories and regulating the banks. So which way do Conservative the Lib Dems saw through not only cost us a lot of Members want to play this: were we overly light or too money but created unnecessary structures. We now have strong? I would say that we regulated the banks properly. something like 440 new bodies and administrative layers. Again, the Government have collective amnesia and They have not improved patient care, but they have they need to be reminded. diluted accountability and made it even more difficult The current national debt is £1.36 trillion, whereas to find out who is actually in charge. when Labour left power in 2010 it was £0.76 trillion, In addition, there has been an increased reliance on about half what it is now. The national debt to GDP agency staff in our hospitals, and people have been ratio is about 95% now, so we need take no lectures made redundant only to be rehired. We have ended up from Conservative Members about financial management with a Tory Government who are trying to make us and fiscal prudence. The reason there remains such a believe that the NHS is fine and things are working, but high debt, much bigger than when we left office, is even in the best areas, such as mine, things are about to because the Chancellor’s austerity measures meant he be stretched beyond their limits. The dismantling of was not able to get the revenue receipts he needed to some of the state structures that has taken place over close the deficit. the past few years will become worse if there is another Tory Government. In three areas—local government, Although jobs have been created, which we welcome, education and the health service—state structures have most are on zero-hours contracts, part-time jobs and been being dismantled in a way that makes some services poorly paid jobs. Many people still have to rely on simply undeliverable. working tax credits to make ends meet. It is worth remembering that, in 2007, the Labour Government So what I want in my patch in the NHS is: a return of borrowed £37.7 billion, but spent £28.3 billion on big the 48-hour GP guarantee; a stop to the closures of the projects, such as building hospitals and schools, which walk-in centres, because the ones we have are being helped the economy. By contrast, when this Government used; and a better use of our pharmacists. Above all, I borrowed £91.5 billion in 2013, they invested only do not just want an extra 20,000 nurses and 8,000 extra £23.7 billion. The rest was used to bring down the doctors to be recruited—I want more of them to be budget deficit, so there has been no economic miracle. trained. Although the Chancellor forgot to mention the NHS, it is still extremely important. However, it is Today’s debate is about jobs. We are told by Government currently not funded and structured in a way that is Members that we are the party that is against business. sustainable, and that is one of the most important Well, since 2010, it is Labour that has constantly urged omissions of this Budget. the Government to fulfil the infrastructure projects that we pushed for and it took years for the legislation to be 8.56 pm passed so that they could go ahead. We called for a Yasmin Qureshi (Bolton South East) (Lab): Since this reduction in VAT and in national insurance to help Government were elected five years ago, three mantras small businesses. We called on the Government to reduce have been quoted by the Con Dems against the Labour business rates to enable start-ups and to allow local 1215 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1216 Situation Situation [Yasmin Qureshi] Liz McInnes: My hon. Friend makes a good point about the amount of money NHS trusts are having to authorities to help small businesses. We have constantly pay for agency workers. It is scandalous that NHS staff argued that the banks were not lending enough money are being made redundant and the spaces created are to small and medium-sized enterprises. We are the party having to be filled by agency workers. The problem is that said we would build 200,000 new homes. We are the also caused by the stress that is now caused to NHS party that said that all 18 to 24 year olds who qualify staff, as so many NHS staff are off sick with stress that would get apprenticeships, which is about 1 million yet again the gaps are having to be filled by agency young people. We are the party that said that it would workers. create 20,000 more nurses training places and 8,000 more To get back to Heywood and Middleton, none of my doctor and GP training contracts. constituents is coming to see me to tell me how much better off they are now than they were in 2010—quite Adam Afriyie: The hon. Lady is saying that Labour is the opposite, in fact. As TUC general secretary Frances the party for all sorts of things, but was it not also the O’Grady said, party that did nothing about zero-hours contracts when “The Chancellor’s Britain, where happy people skip to their it was in power? secure jobs to celebrate their rising living standards, is not one that many will recognise.” Yasmin Qureshi: When zero-hours contracts are properly Last week, the Prime Minister was falling over himself used, which is rare, they are fine—I am talking about to tell me that the claimant count in Heywood and students who work part time—but we now have 1.5 million Middleton was down, in answer to a question I had not people on them.[Interruption.] I am sorry; I thought asked. The reality that he does not see is that constituents that the hon. Gentleman wanted to intervene again. come to see me in dire financial straits because of benefits sanctions when their benefits are withdrawn for Adam Afriyie: I am happy to intervene. minor reasons, such as being a few minutes late for an interview. That leaves them penniless and forced to seek Yasmin Qureshi: No, no. To say that we are a party help from one of the biggest growth industries under that does not believe in business or enterprise is wrong. this Government—food banks. Yes, the food banks do We are a party with a social conscience. Some years ago, wonderful work and I for one am very grateful that when my right hon. Friend the Leader of the Opposition so many people give freely of their time and energy to talked about producers and predators, he was said to be help those less fortunate than themselves, but I have anti-business; he was not. We are the party that believes yet to talk to a single volunteer at a food bank who in fairness. We are the party that believes that if a does not express regret that such a thing should have person does a day’s work, they should be properly to exist. remunerated. We are the party that spent many hours in Cuts to taxes on savings do not mean much when the previous Parliament arguing for the minimum wage there is no money to save. In my constituency, 40% of when everyone in the Conservative party were trying to local workers are paid less than the living wage, with argue against it. We have a record of which we should women workers particularly badly affected. Sadly, my be proud. constituency features in the top 10 worst areas of the UK for payment of the living wage. When I asked the 9.3 pm Prime Minister about those figures he responded on the subject of the minimum wage, yet the minimum Liz McInnes (Heywood and Middleton) (Lab): Last wage has risen by just 70p under this Government and week, we had the Budget announcement and the eclipse. is set to rise by 20p in October. Those meagre sums will One plunged the nation into darkness and the other one go nowhere near far enough to meet the Government’s was a rare and important astronomical event. objective of ending in-work poverty. [Interruption.] I got one laugh, thank you. Enforcement of the minimum wage is lacking in The Chancellor claimed that Britain was walking tall resources and the HMRC team responsible comprises again, giving the impression that our economy was fewer than 200 staff across the whole country. At least booming, that well-paid jobs were being created, and 100 more national minimum wage compliance officers that voters were better off now than they were in 2010. are needed to ensure that workers get what they are due. But are voters really better off, because that is not what Although workers have an alternative means of pursuing they are telling me in Heywood and Middleton? the minimum wage by applying to a tribunal, the imposition Many of my constituents work in the public sector of fees for applications to employment tribunals mean where they have seen their pay frozen since 2010 or have that workers who might have taken that route will been subjected to below-inflation pay rises. Some NHS approach HMRC instead, generating yet more work for workers have seen their pay fall by as much as 30% an already under-resourced work force. through the withdrawal of recruitment and retention Today, we have the evidence of five years of Tory-led premiums and reductions in out-of-hours pay on top of austerity, with wages driven down, damaged public flatlining basic wages, not to mention additional pension services and devastated lives. In the Budget, the Chancellor contributions. has reminded us that he is either incapable of or uninterested in building an economy that works for the good of all. Ms Gisela Stuart: At the same time as people on Perhaps only the cuts to beer, cider and spirits will be of regular employment contracts are undermined, our comfort to public sector workers, who might want to hospitals are spending extraordinary sums on agency drown their sorrows at the prospect of even more cuts payments, destabilising the labour market even more. in their living standards to come. 1217 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1218 Situation Situation 9.9 pm sector, on which Northern Ireland is very dependent, and nothing to relieve the pressures faced by our private Mark Durkan (Foyle) (SDLP): I rise not to make any sector. party political points on the Budget, with regard to parties formerly or currently in government, but to The Chancellor referred to the Government’s moves respond to a Budget statement that was full of smuggery in relation to corporation tax for Northern Ireland and spin. It seems to me that the Chancellor was and the Corporation Tax (Northern Ireland) Bill, claiming circumstantial credit for things such as low which we welcome. We recognise that the Chancellor commodity prices and low inflation and using that made it clear that he is committed, if he is returned to context to set out a Budget stall that was very much that position, to go on reducing the headline rate of about making an election statement. However, I need to corporation tax for the whole of the UK, so the differential look at such a Budget and ask what the implications that we will achieve for Northern Ireland will not be really are for the next spending period and for my as marked as it was when people first sought the constituency. devolution of corporation tax. We also know that the Government are saying that the commencement of Beyond some of the measures that the Chancellor the devolution of corporation tax in 2017 will only be announced, not all of which I disagree with—indeed, on the basis that the Treasury is satisfied at that point some of them no one would disagree with—it is quite that Northern Ireland has a balanced and sustainable clear that he has locked in further heavy cuts for the budget. next spending period, not least in welfare. I represent a We see this year that the Government set out pre- constituency that is consistently ranked as having the conditions for the introduction of the corporation tax highest level of unemployment anywhere in the UK, Bill, such as that the Assembly had to deliver welfare and the problem is genuinely lack of work, not lack of reform measures in terms that it might have preferred work ethic. It is also a border constituency. We must not to. The question arises whether the Executive and therefore judge the measures in the Budget and in what the Assembly will similarly be told in 2017 that what is promised for the next spending review, courtesy of will then be the corporation tax powers Act will be the previous autumn statement, in terms of the implications activated only on the basis of decisions then made, such for our economy and our services. as the welfare cuts to be imposed at that time. We know It is not the case that the Budget has little to do with that £12 billion of welfare cuts are foreseen in the next the circumstances in a place such as Derry because all spending review period, so again we have to ask where the key service decisions are devolved. Many of those that is going to leave the Executive in Northern Ireland decisions are rightly devolved, and I want to see more and, more importantly, people in my constituency. decisions made at that level, but of course the spending power of the devolved Executive is determined here, 9.16 pm and of course the working circumstances for many of our businesses as well as our services are still determined Stephen Twigg (Liverpool, West Derby) (Lab/Co-op): by the Chancellor’s Budget statement. It is a pleasure to follow my hon. Friend the Member The hon. Member for Birmingham, Edgbaston for Foyle (Mark Durkan), who spoke with characteristic (Ms Stuart) pointed out that the Chancellor said nothing passion on behalf of his constituents in Foyle and more in his statement about the health service. I agree with broadly in Northern Ireland. her, but actually he said very little about the public In his speech last week, the Chancellor of the Exchequer services at all, and in circumstances in which he was said that using a degree of spin and a few wheelie turns to try to “the north grew faster than the south”.—[Official Report, say that austerity was coming to an end earlier and that 18 March 2015; Vol. 594, c. 767.] an easing was in sight. Nothing was offered to the However, when we scratch beneath the surface, the people in key public services who have endured pay Chancellor’s headline figures do not match the reality restraint after pay restraint, even as their work loads on the ground. In the region where my constituency is have increased. As payrolls have decreased and work situated, the north-west, it is true to say that in a single loads have increased, the pressures on them have gone year, 2012-13, the north-west was the fastest growing up and the rewards have gone down. With the exception region in the country, and that is welcome, but if we of what they can find in the changes in the personal tax look at the first three years of this Government, 2010 to allowance, absolutely nothing—not relief or respite—was 2013, the overall figures for the north-west show that we offered to them. Instead, they are being offered more of have grown more slowly than any region other than the cuts that will affect the circumstances in which they Northern Ireland. So yes, there is welcome news in that are working very hard to provide those services. one year, but taking the three years as a whole, the It must be remembered that the private sector in picture is not quite the one that the Chancellor set out. Northern Ireland, and certainly in my border constituency, I welcome the fact that unemployment is down. In is very dependent on selling across the border, and in my constituency in Liverpool, the memories of jobless circumstances in which our trade is affected, so our economic recoveries of the past are very real, especially retail sector and those selling services to households are the impact of the Thatcherite policies of the 1980s. losing out because, with the current exchange rate, trade Unemployment can leave a scar on communities that is going across the border and people are purchasing may last for generations. As we all know, the evidence across the border, rather than locally. For those who shows that once people are out of work, it can be very export, much of their business is in the south, and hard for them to get back into it. In my constituency obviously the continuing pressures in the eurozone many people are managing to find work. Over the past and the high exchange rate affect those markets. The year the claimant count is down by 28%. Work is a good Budget therefore contains no great news for our public thing, but the quality of jobs is surely critical as well. 1219 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1220 Situation Situation [Stephen Twigg] to go to university. It is welcome that fewer young people are unemployed, but our youth unemployment Once again, the story is more complicated than that set rates are still significantly higher than those of countries out by the Chancellor last week or the Secretary of such as Germany, Austria and Norway that have invested State earlier this afternoon. in high-quality technical, vocational and practical education Too many of the jobs in Liverpool are insecure, low that breaks down the barriers between different sorts of paid jobs. The growth in agency work lies behind a large learning. part of the fall in unemployment in my constituency. We need to strengthen devolution within England. Recently, I met two local people, one of them a constituent, That is why the Andrew Adonis review recommended who worked at a factory in Liverpool. They had worked an English devolution Act, a central plank of which there for several years. However, they are paid and would be to devolve powers and funding for skills, and technically employed not by the company that runs the commission 19-plus further education provision based factory, but by one of the biggest agencies and suppliers on local decision making. On top of this, city and of contract labour. They do the same work as regular county authorities should have the power to commission staff, but are paid £2 an hour less, and the supply of the Work programme in order to get the long-term hours is sporadic and uncertain. Their holiday and sick unemployed back to work. I pay tribute to Liverpool’s pay entitlements are far worse, and scandalously, one of mayor, Joe Anderson, and to Liverpool city council for them told me that when he suffered an injury at work, the extraordinary work they have done to promote the medical centre at the factory turned him away apprenticeship and work opportunities for people of all because technically he was not an employee. Surely such ages, but particularly young people. working arrangements are unfair and wrong. Ben Gummer (Ipswich) (Con): The hon. Gentleman Julie Elliott (Sunderland Central) (Lab): However is making a speech of characteristic subtlety, which is bad those contracts are, does my hon. Friend accept why he is no longer on the Opposition Front Bench. He that the explosion of zero-hours contracts, which are is making some good points about apprenticeships. even worse than agency contracts, has occurred under Does he not regret that the Leader of the Opposition this Government because of the tightening of some has pledged to end all level 2 apprenticeships across the regulations to try to stop the abuse of agency worker country on a blanket determination, which will do more regulations? damage to people’s ability to learn good skills than any other policy that anyone is proposing in this House? Stephen Twigg: I am grateful to my hon. Friend, who is absolutely right to make that point as we seek to Stephen Twigg: That is not what the Leader of the understand the reasons for that and find solutions. Opposition has said. I worked on that policy. We want I will come to that next. to ensure that apprenticeships are high quality, learning from the countries I mentioned that have a great track I pay tribute to the employment, enterprise and skills record in this area. Our policy is not the policy to which select committee of Liverpool city council and its chair, the hon. Gentleman referred. Councillor Barry Kushner, for undertaking painstaking research that shows the extent of this problem. Their I appear not to have received the extra minute for the work has revealed that there are currently about 6,500 intervention that I think I should have had, Mr Speaker. vacancies in Liverpool, over half of which are agency Should I have that extra minute? jobs. The council has identified the Swedish derogation as a major cause of the increase in exploitation. This Mr Speaker: Yes. I would not want the hon. Gentleman derogation allows for agencies to employ staff directly to be denied, and I think that in the interim the appropriate and the eventual engager—the employer—to treat workers adjustment has been made. I am glad that he is alert to less fairly than their directly employed workers. Without his rights. the derogation, the system would still allow for the use of agency workers, which can still be of real use in Stephen Twigg: I am immensely grateful to you, various sectors, but the engager would be obliged to Mr Speaker. give the agency workers the same rates of pay as their To get this right, we need to give priority to spending permanent staff after a 12-week period in employment. on education. That is why the commitment that the The two local people I met who have been working for Labour party has made to protect the entire budget of years at the same factory, but are paid less than the the Department for Education, including early years colleagues they are working alongside, feel like second-class and 16 to 19, is so important. That contrasts significantly citizens. Reforming this area would make a real difference with the Conservative policy, which does not protect for them. That is why I am delighted that my hon. early years and 16 to 19. Those are precisely the areas Friend the shadow Business Secretary has promised that have faced the biggest cuts over the past five years, that a Labour Government would end the Swedish and they would face even bigger cuts were the Conservatives derogation for agency regulations—a change that cannot to win again. Investment in education and fairness in come soon enough. the jobs market should be features of a Budget, but they Other long-term changes need to be made. To tackle were not features of this one. the structural problems of a low-pay, low-skilled job market, we need to ensure that entrants to that market 9.24 pm have the appropriate skills. As a country, we have failed for far too long in this respect. My right hon. Friend the Chris Leslie (Nottingham East) (Lab/Co-op): May I Leader of the Opposition has talked about the “forgotten first take the opportunity to note the many valedictory 50%”—the young people who do not get the opportunity speeches by right hon. and hon. Members who have 1221 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1222 Situation Situation chosen to step down at the forthcoming general election? It was not supposed to be like that, as my hon. Friend They brought back many good memories of my time the Member for Caerphilly (Wayne David) has pointed working with them. out, and this is not where the Chief Secretary’s party My right hon. Friend the Member for Edinburgh wanted to be, either. The Budget spectacle over the past South West (Mr Darling) reminded us of the necessary few days has been not of a responsible Government steps he took after the global banking crisis, which, of focused on the economy, but of an out-of-touch Chancellor course, the Conservative party wants to airbrush from in denial and focused on political survival and a Chief our recent economic history. I am glad we managed to Secretary counting down the hours and living out his keep the cash machines working, but the recklessness of own fantasy, which even his own leader could not bear the banks left a dreadful legacy and deficit that has to sit through. stayed with us to this day. The reality is that we have had one and a half Budgets in two days from two parties that had nothing to offer My right hon. Friend the Member for Sheffield, the majority of people in this country. Those two parties Brightside and Hillsborough (Mr Blunkett) spoke are basing decisions on party political interests and passionately. He has been a good friend to many Members their perceived electoral advantage, rather than on what on both sides of the House and he will be an enormous is in Britain’s best interests. The Chancellor’s Budget loss to Parliament. He is such an impressive individual was a Budget that could not be believed, and the Chief and one of the great parliamentarians whose capability Secretary’s statement was just unbelievable—a Budget is incomparable. not for public services, not for working people, not for My right hon. Friend the Member for Salford and families and not for the NHS. Eccles (Hazel Blears) spoke passionately about her advocacy of getting young people involved in politics. Her Andrew Gwynne (Denton and Reddish) (Lab): Will achievements will be seen for many decades to come. my hon. Friend give way? My hon. Friend the Member for Sheffield, Heeley (Meg Munn) and my right hon. Friend the Member for Chris Leslie: I will certainly give way to my hon. Holborn and St Pancras (Frank Dobson) also talked Friend. about their belief in public service and the need to invest in public services, and they told us that we should Andrew Gwynne: Now that the dust has settled from never forget the need to regulate the banking sector and Thursday’s Liberal Democrat statement, has my hon. make sure that the dreadful activities we have seen are Friend had the chance to scrutinise the document— never repeated. Those were fine valedictory remarks. I published online, rather than available in the Vote Office— do not have time, in the final moments of several days and if so, may I draw his attention to table 2.A on the of debate on the Budget, to congratulate and thank my scenario input assumptions? Did he notice, as I did, many other colleagues who spoke passionately today. that the source for the assumptions was not authoritative This is the coalition’s last Budget. The final verdict is bodies such as the ONS, the OBR or the IFS, but none in. There are no more opportunities to pull rabbits out other than the Chief Secretary to the Treasury? of the Government’s Budget boxes, whether they be red or yellow. For all the Chancellor’s complacency about Chris Leslie: I commend to Conservative Members, walking tall and how we have never had it so good, the who should have a good read of it, this very authoritative residual legacy of last Wednesday was confirmation document with very carefully crafted figures: that, if the Government parties get their way with their “Source: Chief Secretary to the Treasury”. proposed public investment in vital public services, the rollercoaster will be pushed over a precipice. It was a classic. My hon. Friend knows that the real Budget was in the Red Book. Shall I pass it to him? The Chancellor tried every trick in the book to distract Perhaps not. from the Government’s plan for extreme cuts, and he The Chancellor told us in the Budget that everything hoped that the public would not notice his record of was sunshine and roses, but in coalition Britain, 900,000 failure on living standards and borrowing. Every target people use food banks, 600,000 people are affected by he has set has been missed and every promise broken. the bedroom tax, the typical working person is £1,600 a In 2010, the Chancellor told us that the structural year worse off and the NHS is in crisis. The Chancellor deficit would be eradicated in time for this Budget—it tried to find the best statistic, however obscure, to would all be gone—yet we are still borrowing £90 billion muddy the waters and deny what most working people this year, which is only a 5% fall from last year’s deficit. know, which is that their wages have eroded year after Tax receipts should have been strong and tax credit year as we have experienced the longest period of prices costs significantly lower by now, but in the low-wage exceeding income since the 1920s. He did that by relying economy that this Chancellor has fostered—with an on a forecast for this year, rather than real data, and by epidemic of job insecurity and zero-hours contracts up adding university and charitable income, as well as what 20% in this past year alone—revenues have stagnated are known as imputed rents from homes even if they are and the Government are spending £25 billion more on not actually rented. That was basically designed to say, social security than the Secretary of State for Work and “If you stand on one leg and squint a little, there you Pensions and the Chancellor had expected. We were are—you’re back to 2010 levels of affluence and incomes.” meant to have an export-led recovery, heading towards Even on that statistical measure, from election date to £1 trillion-worth of exports by 2020, but we have already election date—rather than the start of the calendar fallen a little bit behind that target—about £300 billion year, as the Chancellor tried to use—people are still behind it. Moreover, our triple A rating, which was worse off than they were. Of course, all that does once this Chancellor’s litmus test of economic credibility, nothing to change the burden of higher taxes and lower was, of course, downgraded. tax credits that have seen families worse off by more 1223 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1224 Situation Situation [Chris Leslie] and “a sharp acceleration in the pace of implied real cuts to day-to-day than £1,000 a year. As ever, the Chancellor may give a spending on public services”. little with one hand, but he takes away much more with That will create what the OBR calls the other. “a rollercoaster profile for implied public services spending through By the way, now that the Chancellor has taken the the next Parliament”. time to enter the Chamber, it would be interesting to We remain with a path of public spending that is based know whether he has spotted the Prime Minister’s on ideology and political game playing, rather than a announcement this afternoon. I understand that the Budget for our public services based on what the economy Prime Minister has indicated that he will not stand for requires and what our country needs. election again after this general election. He has said tonight that he is likely to be gone in a couple of years’ I ask my hon. Friends to imagine the impact these time, so what will the country be voting for at the next extreme plans will have, especially on the public services election? I can see the poster now—“Vote Cameron, get that the Government say are unprotected—the police, Osborne”—and all the right-wing agenda that would bus and rail services, the Army and our defences—and go with it. A Prime Minister who did not win his first on all those who depend on tax credits to make ends election, and had not won a second election, would be meet. I encourage my hon. Friends to take a moment to saying that he would not win a third. look at exactly what those extreme cuts will mean. They are not just statistics in the Red Book; they will have Of course there were a few give-away measures in the real consequences for real people’s lives. Budget, and we welcome anything that helps those on lower and middle incomes. Why, however, does the To take social care as an example, in the past five Chancellor still stand by the biggest give-away of them years, the number of vulnerable people who receive all? His tax cut for the wealthiest 1%—those earning social care support has fallen by 500,000 and the number £150,000—means that someone earning £1 million each of home-delivered meals—meals on wheels—has fallen year gets an annual tax cut of £42,000. That is simply by 59%. Of course, there has also been a rise in the unfair and unacceptable, and that is why we will vote peremptory 15-minute visits. That is just what has happened against those income tax plans this evening. We will so far, before the Government tip social care over vote against the Government’s Budget plans for public the precipice of the rollercoaster. Just imagine what the services and public investment, because although we next three years could bring. Care cuts like this are must balance the books as soon as possible in the next health service cuts. As my hon. Friend the Member for Parliament, going so far beyond that—with cuts over Birmingham, Edgbaston (Ms Stuart) said, our health the next three years that are twice as deep as those of services will be placed in real jeopardy in that scenario. the past three years—means extreme cuts to services on It says everything one needs to know about this Chancellor a scale not experienced for generations. [Interruption.] that the battle of Agincourt got twice as many references in the Budget speech as the NHS. When I look at the Government’s Budget, it is not so much “Henry V” that Mr Speaker: Order. There is a most discourteous comes to mind as “The Comedy of Errors”. exchange taking place between those on the two Front Benches while the hon. Gentleman the shadow Chief This path of spending—extreme and unnecessary, Secretary is addressing the House. Modesty forbids me going way beyond tackling the deficit—is why we will from naming the errant Members, but I feel sure that vote against the Budget resolutions tonight. This is a they will correct their behaviour at once. Budget that delivered little, but revealed much. It revealed the Conservatives’ ideological obsession with shrinking public services in preparation for a privatised society. Chris Leslie: Perhaps we can ask Hansard for a transcript There is no support for those struggling on low incomes later. I would certainly be interested to read that. and in insecure work, no credible action to tackle tax When we look at the Chancellor’s plans—and those avoidance and close the tax gap, nothing to reverse their of the Secretary of State for Work and Pensions—we tax cut for millionaires and no help for the NHS. We see that he is thinking about cutting for the next three have a Chancellor who is full of spin but is fooling no years at twice the level we have seen over the past three one, and a Chief Secretary who is enjoying his final years. The Chancellor realised how toxic his plans were days in office but not in power. shortly after the autumn statement, when he published What we need is a Labour Government who will put the trajectory that showed he would take Britain back the interests of the British people first; who will balance to 1930s levels of public investment as a share of the books in a fair way; who will help small businesses national income. In the days running up to the Budget, with a cut in business rates, rather than simply helping we were therefore told that he had had a change of the largest corporations; who will raise living standards heart on public spending—coincidentally, it was just by raising the minimum wage and expanding free child weeks before an election campaign. Sure enough, the care; and who will govern for the many and not for the figures for 2019-20 were shuffled around in the Budget. few, because Britain succeeds when working people However, in the end, he just could not fight his gut succeed. That would be a better plan and a better instinct, so all he did was to front-load the cuts on to the Budget. That is why I urge my hon. Friends to reject the first three years of the next Parliament and hope that Budget of this failing Government. nobody would notice. Unfortunately for the Chancellor, the Office for Budget Responsibility did notice. It said that his plans will 9.39 pm mean The Chief Secretary to the Treasury (Danny Alexander): “a much sharper squeeze on real spending in 2016-17 and 2017-18 We have had a good debate with distinguished contributions than anything seen over the past five years” from Members across the House, and like the shadow 1225 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1226 Situation Situation Chief Secretary I particularly wish to recognise the improvements to the quality of job creation, and the contributions of those who are not seeking re-election measures that the Government announced in the Budget, to this House. A number of hon. Members said that as well as the creation of more than 2 million their speech would be their final contribution here, apprenticeships during this Parliament, will help to including the hon. Members for Sheffield, Heeley (Meg support the agenda he described. Munn) and for Thirsk and Malton (Miss McIntosh), We also heard distinguished contributions from two the right hon. Members for Holborn and St Pancras former Chancellors of the Exchequer. My right hon. and (Frank Dobson), for Sheffield, Brightside and Hillsborough learned Friend the Member for Rushcliffe (Mr Clarke) (Mr Blunkett), for Salford and Eccles (Hazel Blears) provided distinguished service in government during and for Edinburgh South West (Mr Darling). I am sure this Parliament, and indeed for many, many decades the House will agree that in their different ways they before that—[Laughter.] I know he is standing again; I have all made a significant contribution to British public am not citing him as a Member who is stepping down. life, and the whole House will be grateful for their He is an immortal in this House as far as many of us are service to their country. concerned. In his remarks he gave strong support for a The right hon. Member for Salford and Eccles spoke balanced, fiscally neutral Budget, and responsible measures movingly about the circumstances in which she grew up from the coalition Government. He rightly celebrated and the commitment to social mobility that that imbued the rise in the income tax personal allowance, a matter in her—a commitment I strongly share. I am grateful to which I will return. I am bound to say, however, that for her kind words about the Government’s decision to his customary generosity deserted him when describing support the Speaker’s parliamentary placement scheme, the political heritage of this particular policy commitment. which as the House will know provides opportunities My hon. Friend the Member for Cheltenham corrected for many young people from disadvantaged backgrounds the balance of the ledger in that respect, when he made to work in this House. Credit should go to the right clear that this policy emerged from the 2010 Liberal hon. Lady, and to you, Mr Speaker, for promoting that Democrat manifesto. It is making a huge difference to scheme. In her remarks she gave some examples of 27 million people. young people who have benefited from the scheme that she promoted, and many hon. Members will have Mr Kenneth Clarke: I cannot remember whether I encountered young people who have gained apprenticeships raised personal allowances once or twice in my Budgets, through it. but once certainly, so it does have slightly older antecedents. My hon. Friend the Member for Thirsk and Malton I always thought it was a good idea. I was unfortunately spoke about her rural constituency, and drew attention discouraged by the then Prime Minister who told me to the issues facing rural communities and the need for that he thought there were no votes in it. broadband. As a Member who represents a very rural constituency, I share that concern. I draw her attention Danny Alexander: It is fair to say that the current to the supplementary document that was published Prime Minister also discouraged this policy. In the alongside the Budget which included the strategy for television leaders debates in 2010 he said it could not be superfast broadband, and indeed for moving to ultrafast— done and could not be afforded. We have shown in this [Interruption.] The shadow Chief Secretary is muttering, Parliament that we can afford it. The difficult decisions but I will come to that point. The supplementary document we on the Government Benches have been willing to on the move to ultrafast broadband set out a new and make in other areas have meant that we have been able ambitious strategy for this country, including moves to deliver the largest income tax cuts for working people towards superfast broadband for 95% of households in a generation. That is something of which I am very through the BT scheme, the roll-out of 4G broadband proud indeed. to 98% of households, and the availability of a vouchers My right hon. and learned Friend also rightly highlighted scheme for the most remote households to gain satellite how much progress we have made in tackling tax avoidance connections. I hope that that answers her point, which I during the course of this Parliament. He was humble am sure is an important issue for many hon. Members. enough to admit that progress had not always been as Other strong contributions included the one from my strong during his time as Chancellor. There were many hon. Friend the Member for Cheltenham (Martin measures in the Budget to tackle tax avoidance and Horwood)—I do not know whether he is in his place. evasion. He made an important point about the decision in the We then had a contribution from the right hon. Budget to extend the pension changes to police and fire Member for Edinburgh South West. It is fair to say that service widows and widowers where someone has lost there were many things in the Budget that he was not their life in the line of duty. We made clear in the very keen on. He certainly made that clear. He did not Budget that we also intend to extend that change to like the rollercoaster, as he described it, of the public apply to members of the security services who have lost finances. I have set out my own alternative scenario on their lives in the line of duty. That pension change is not that. He did not mention the big dipper that the public yet fully worked out, but we intend to make it along the finances had been on during his time in office. same lines as the measure announced for police officers The right hon. Gentleman rightly welcomed the package and members of the fire service who lose their lives in of measures to support the oil and gas sector, which was the line of duty. a very strong feature of the Budget. The measures will The hon. Member for Liverpool, West Derby (Stephen ensure that the sector, which is suffering from a dramatic Twigg) made a balanced speech—I think he was the fall in the oil price, has some confidence in the future. only Labour Member to welcome the strong record of He welcomed those measures, but he rightly pointed job creation we have seen since 2010, and I credit him out that the oil revenues in the OBR forecast at this for that. He also—fairly, I think—called for further Budget were a little more than a 10th of those predicted 1227 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1228 Situation Situation [Danny Alexander] damaging, and will he confirm that he does not support the depth of the cuts to our public services over the next by the nationalists in the recent Scottish referendum. three years? He made the point that had Scotland voted for independence and experienced the fall in oil prices, the Danny Alexander: It really is not that confusing. Even difficult decisions made in this Parliament—I think I the shadow Chief Secretary ought to understand that quote him correctly—would have seemed like a school two different parties in a coalition Government will picnic in comparison. have different views about the future direction of policy The right hon. Gentleman was too modest to remind in this country. I would say—[Interruption.] If the the House of the service he rendered to his country with hecklers would silence themselves, I would say that the leadership he showed in the Better Together campaign. Labour signed up to £30 billion of deficit reduction in I hope that Members on all sides of the House express the first three years of the next Parliament when they their appreciation for that. It was certainly something I voted for the charter for budget responsibility. I am sure experienced first hand. It was immensely important in you remember the occasion, Mr Speaker. It was an ensuring that the people of Scotland voted the right important debate in the House, and one to which the way in the referendum. The experience of working with country should be paying great attention. It is fair to him on that campaign, although we may have disagreed say that all parties in the House have different views on many other matters over the years and will no doubt about how to achieve that £30 billion of cuts, and I set continue to do so, is one I will always remember. He out my view to the House on Thursday. showed himself to be a man of the greatest statesmanship in his conduct of that campaign. Andrew Gwynne: Tell us! Before I respond to some of the other points, I want to respond to the jibes from the shadow Chief Secretary— Danny Alexander: If the hon. Member for Denton [Interruption.] It certainly is not—there are another and Reddish (Andrew Gwynne) had not been cavorting 10 minutes to go. The shadow Chancellor, the shadow so loudly, the shadow Chief Secretary might have been chunterer, is in his place chuntering as usual. He able to listen to my speech on that occasion. doesn’t have many policies, but he sure does like to chunter. Sir Nicholas Soames: Inexplicably, my right hon. The Budget, as set out in the Red Book, was agreed Friend seems to have failed to mention the excellent by Conservatives and Liberal Democrats working together points I made about my constituency, particularly the in the coalition Government. There is no policy measure need for more spending on infrastructure in Mid Sussex in the Budget which Liberal Democrat Ministers did and compensation for passengers being grievously delayed not sign off. Are there differences in the way the two by improvements on the railway line. Will he look into parties in the coalition would approach the task of these matters and let me have an answer before 6 May? deficit reduction in the next Parliament? Yes, of course there are. I have made clear in this House and outside Danny Alexander: My right hon. Friend made his that there is another way we can meet the fiscal mandate points so powerfully I did not see the need to repeat that all parties signed up to when we voted for the them, but I will certainly look into the matters he raises charter for budget responsibility in January. Opposition and respond to him. However, the Government have a Front Benchers appear to have forgotten about that, very good record of investment in infrastructure, including but we can do it in a more responsible and stable way. the largest programme of rail investment since Victorian For that reason, last week I published and set out an times; the largest programme of rail investment since alternative fiscal scenario for the next five years—a plan the 1970s; and a huge investment programme in broadband to borrow less than Labour and cut less than the infrastructure. Conservatives, a plan to give the UK a brighter future This is a Budget for fiscal responsibility that meets without sacrificing financial prudence. As the independent the supplementary target for debt as a share of GDP OBR mentioned in its economic and financial outlook, that the Government set in 2010. The deficit has fallen this profile of public expenditure by a half over the Parliament, and every year we have “is driven by a medium-term fiscal assumption”, borrowed less than set out in the autumn statement. This is a Budget, too, for a strong economy. The UK is but the fastest-growing major economy in the G7. We have “both parties have said that they would pursue different policies if record numbers of people in work and the highest they were to govern alone.” employment rate in our country’s history. It is very The Budget that my right hon. Friend the Chancellor different from the predictions we heard from Labour presented last week is a coalition Budget that reflects Members, who said that jobs would be lost this Parliament. the hard work the coalition Government have carried Instead, nearly 2 million jobs net have been created. out over the past five years to turn the country around Astonishingly, more jobs have been created in the UK from the mess we inherited from Labour and to set us since 2010 than in the whole of the rest of the EU on a path back to prosperity. I do not hesitate, therefore, combined. That is a truly extraordinary record. to speak in favour of it. There were measures in the Budget to support job creation and key sectors in the economy. I have mentioned Chris Leslie: This is very confusing. So the right hon. the measures to support the oil and gas sector, which Gentleman supports the Budget, but he opposes the have been widely welcomed by Oil & Gas UK, Sir Ian Government. He wants to be a Minister, but he does not Wood, who authored the Wood review, and many other want to be a Minister. Will he at least agree that the cuts figures in the oil and gas sector who see the package as for the next three years are extreme and would be one that will increase confidence in the sector. 1229 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1230 Situation Situation I could mention the measures we took on alcohol Chris Leslie rose— duties, which were particularly warmly welcomed by the Scotch Whisky Association, as I discovered at its reception Danny Alexander: No, I will not give way. Opposition at the Scottish Liberal Democrat conference in Aberdeen Members do not like to hear about tax cuts for working on Friday evening. We also announced radical new people because they did not deliver those cuts themselves. measures to pilot full retention of business rate increments If they cared about cutting taxes for working people, in Manchester and Cambridge, and a number of hon. they would be welcoming and celebrating the fact that Members have welcomed the wide review we announced 3.7 million working people on the lowest incomes no of the way in which the business rate system operates. longer have to pay any income tax at all. That is This is a Budget that delivered on several key Liberal something that Government Members would celebrate; Democrat party priorities. I particularly note the package Opposition Members should be celebrating it, too. of measures to support mental health. The hon. Member When a Government lose control of the public finances, for Birmingham, Edgbaston (Ms Stuart) wrongly said it is the poorest who are hardest hit. That is why that the Budget did not mention the national health imposing fiscal discipline was such a priority for us in service. In fact, it contained a full package of measures 2010. We created the stability necessary to deliver growth, to help fund additional support for people suffering jobs and investment. Last year, the shadow Chancellor from mental ill health. I pay tribute to the Minister of channelled Ronald Reagan and asked, “Are you better State, Department of Health, my right hon. Friend the off than you were in 2010?”On Thursday, the independent Member for North Norfolk (Norman Lamb), who worked Institute for Fiscal Studies confirmed that families are very hard to devise this package. It is a £1.25 billion set to be £900 better off in 2015 than they were in 2010. package that provides measures for children’s mental Compared with five years ago, we have lower inequality; health services, perinatal mental health services, and to child poverty is down; pensioner poverty is at record improve support for the mental health of people who lows; the gender pay gap is smaller than ever; and the are out of work. Worth more than £1 billion over the number of students at university from disadvantaged next five years, we will be able to start new access backgrounds is at an all-time high. Some 1.9 million standards and see 110,000 more children cared for over new people are in work, which is 1,000 new jobs a day, the next Parliament. Some £118 million will be invested four fifths of them full time and four fifths in skilled over the next four years to complete the roll-out of the occupations. This is a record to be proud of, and I am children and young people’s increasing access to proud of these achievements. I am proud of the role my psychological therapies programme. The measures to party has played in achieving them. support mental health in this Budget mark a radical departure and a radical change. It is perhaps not surprising Responsible government does not mean standing on that some hon. Members said that the national health the sidelines and complaining about how long other service was not mentioned in the Budget—so weakly people are taking to clean up the mess they created. has mental health been accorded its proper status under Responsible government is about stepping up to the previous Governments. Because of the Liberal Democrat challenges and not flinching from taking the tough but involvement in this Government, that particular thing necessary decisions. That is what we have done since has changed. 2010. We have created a stronger economy, we have created a fairer society, and we have delivered for the The Budget included further big increases in the people of the United Kingdom. I commend the Budget income tax personal allowance, increasing the tax-free to the House. allowance to—[Interruption.] Question put. Sheila Gilmore (Edinburgh East) (Lab) rose— The House divided: Ayes 334, Noes 250. Danny Alexander: No, I am not giving way. I am Division No. 179] [9.59 pm going to make some progress. The hon. Lady was not here for the debate, so I am certainly not giving way AYES to her. Adams, Nigel Bingham, Andrew Afriyie, Adam Binley, Mr Brian Chris Leslie rose— Aldous, Peter Blackman, Bob Alexander, rh Danny Blackwood, Nicola Danny Alexander: No, I am not giving way. I am Amess, Sir David Blunt, Crispin going to finish. Andrew, Stuart Boles, Nick The income tax personal allowance will increase to Arbuthnot, rh Mr James Bone, Mr Peter £10,800 in 2016-17 and— Bacon, Mr Richard Bottomley, Sir Peter Baker, rh Norman Bradley, Karen Chris Leslie: Will the right hon. Gentleman give way? Baker, Steve Brady, Mr Graham Danny Alexander: No, I will not. Baldry, rh Sir Tony Brazier, Mr Julian Baldwin, Harriett Bridgen, Andrew This is the most significant tax cut for working people Barclay, Stephen Brine, Steve in a generation. As a result of the increases to the Barker, rh Gregory Brokenshire, James personal allowance, a typical basic rate taxpayer will be Baron, Mr John Browne, Mr Jeremy £905 a year better off in 2017-18, and 27.2 million Barwell, Gavin Bruce, Fiona individuals will have benefited from increases to the Bebb, Guto Bruce, rh Sir Malcolm personal allowance since 2010. As a result of these Beith, rh Sir Alan Buckland, Mr Robert changes, over 3.7 million people—[Interruption.] Bellingham, Mr Henry Burley, Mr Aidan Opposition Members do not like to hear about tax cuts Benyon, Richard Burns, Conor for working people, Mr Speaker. Berry, Jake Burns, rh Mr Simon 1231 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1232 Situation Situation Burrowes, Mr David Grayling, rh Chris Lidington, rh Mr David Robertson, Mr Laurence Burstow, rh Paul Green, rh Damian Lilley, rh Mr Peter Rosindell, Andrew Burt, rh Alistair Greening, rh Justine Lloyd, Stephen Rudd, Amber Burt, Lorely Grieve, rh Mr Dominic Lopresti, Jack Ruffley, Mr David Byles, Dan Griffiths, Andrew Loughton, Tim Russell, Sir Bob Cable, rh Vince Gummer, Ben Luff, Sir Peter Rutley, David Cairns, Alun Gyimah, Mr Sam Lumley, Karen Sanders, Mr Adrian Campbell, rh Sir Menzies Hague, rh Mr William Macleod, Mary Sandys, Laura Carmichael, rh Mr Alistair Halfon, Robert Main, Mrs Anne Scott, Mr Lee Carmichael, Neil Hammond, Stephen Maude, rh Mr Francis Selous, Andrew Carswell, Douglas Hancock, rh Matthew May, rh Mrs Theresa Shapps, rh Grant Cash, Sir William Hancock, Mr Mike Maynard, Paul Sharma, Alok Chishti, Rehman Hands, rh Greg McCartney, Jason Shelbrooke, Alec Chope, Mr Christopher Harper, Mr Mark McIntosh, Miss Anne Simmonds, rh Mark Clappison, Mr James Harrington, Richard McLoughlin, rh Mr Patrick Simpson, rh Mr Keith Clark, rh Greg Harris, Rebecca McPartland, Stephen Skidmore, Chris Clarke, rh Mr Kenneth Hart, Simon McVey, rh Esther Smith, Chloe Clifton-Brown, Geoffrey Harvey, Sir Nick Menzies, Mark Smith, Henry Coffey, Dr Thérèse Haselhurst, rh Sir Alan Metcalfe, Stephen Smith, Julian Collins, Damian Hayes, rh Mr John Miller, rh Maria Smith, Sir Robert Colvile, Oliver Heald, Sir Oliver Mills, Nigel Soames, rh Sir Nicholas Cox, Mr Geoffrey Heath, rh Mr David Milton, rh Anne Soubry, Anna Crabb, rh Stephen Heaton-Harris, Chris Mitchell, rh Mr Andrew Spelman, rh Mrs Caroline Crouch, Tracey Hemming, John Moore, rh Michael Spencer, Mr Mark Davey, rh Mr Edward Henderson, Gordon Mordaunt, Penny Stanley, rh Sir John Davies, David T. C. Hendry, rh Charles Morgan, rh Nicky Stephenson, Andrew (Monmouth) Herbert, rh Nick Morris, Anne Marie Stevenson, John Davies, Glyn Hinds, Damian Morris, David Stewart, Bob Davies, Philip Hoban, Mr Mark Morris, James Stewart, Iain Davis, rh Mr David Hollingbery, George Mosley, Stephen Stewart, Rory de Bois, Nick Hollobone, Mr Philip Mowat, David Streeter, Mr Gary Dinenage, Caroline Holloway, Mr Adam Mundell, rh David Stride, Mel Djanogly, Mr Jonathan Hopkins, Kris Munt, Tessa Stuart, Mr Graham Dorrell, rh Mr Stephen Horwood, Martin Murray, Sheryll Stunell, rh Sir Andrew Doyle-Price, Jackie Howarth, Sir Gerald Murrison, Dr Andrew Sturdy, Julian Drax, Richard Howell, John Neill, Robert Swales, Ian Duddridge, James Hughes, rh Simon Newmark, Mr Brooks Swayne, rh Mr Desmond Duncan, rh Sir Alan Hunt, rh Mr Jeremy Newton, Sarah Swinson, Jo Duncan Smith, rh Mr Iain Hunter, Mark Nokes, Caroline Swire, rh Mr Hugo Dunne, Mr Philip Huppert, Dr Julian Norman, Jesse Syms, Mr Robert Ellis, Michael Hurd, Mr Nick Nuttall, Mr David Tapsell, rh Sir Peter Ellison, Jane Jackson, Mr Stewart O’Brien, rh Mr Stephen Teather, Sarah Ellwood, Mr Tobias James, Margot Offord, Dr Matthew Thornton, Mike Elphicke, Charlie Javid, rh Sajid Ollerenshaw, Eric Thurso, rh John Eustice, George Jenkin, Mr Bernard Opperman, Guy Timpson, Mr Edward Evans, Graham Jenrick, Robert Osborne, rh Mr George Tomlinson, Justin Evans, Jonathan Johnson, Gareth Ottaway, rh Sir Richard Tredinnick, David Evans, Mr Nigel Johnson, Joseph Paice, rh Sir James Truss, rh Elizabeth Evennett, rh Mr David Jones, Andrew Parish, Neil Turner, Mr Andrew Fabricant, Michael Jones, rh Mr David Patel, Priti Tyrie, Mr Andrew Fallon, rh Michael Jones, Mr Marcus Paterson, rh Mr Owen Uppal, Paul Farron, Tim Kawczynski, Daniel Pawsey, Mark Vaizey, Mr Edward Featherstone, rh Lynne Kelly, Chris Penning, rh Mike Vara, Mr Shailesh Field, rh Mark Kennedy, rh Mr Charles Penrose, John Vickers, Martin Foster, rh Mr Don Kirby, Simon Percy, Andrew Villiers, rh Mrs Theresa Fox,rhDrLiam Knight, rh Sir Greg Perry, Claire Walker, Mr Charles Francois, rh Mr Mark Kwarteng, Kwasi Phillips, Stephen Walker, Mr Robin Freeman, George Lamb, rh Norman Pickles, rh Mr Eric Weatherley, Mike Freer, Mike Lancaster, Mark Pincher, Christopher Webb, rh Steve Fuller, Richard Latham, Pauline Poulter, Dr Daniel Wharton, James Garnier, rh Sir Edward Laws, rh Mr David Prisk, Mr Mark Wheeler, Heather Garnier, Mark Leadsom, Andrea Pritchard, Mark White, Chris Gauke, Mr David Lee, Jessica Raab, Mr Dominic Whittaker, Craig George, Andrew Lee, Dr Phillip Randall, rh Sir John Whittingdale, Mr John Gibb, Mr Nick Leech, Mr John Reckless, Mark Wiggin, Bill Gillan, rh Mrs Cheryl Lefroy, Jeremy Redwood, rh Mr John Willetts, rh Mr David Glen, John Leigh, Sir Edward Rees-Mogg, Jacob Williams, Roger Goldsmith, Zac Leslie, Charlotte Reevell, Simon Williams, Stephen Goodwill, Mr Robert Letwin, rh Mr Oliver Reid, Mr Alan Williamson, Gavin Graham, Richard Lewis, Brandon Rifkind, rh Sir Malcolm Willott, rh Jenny Grant, Mrs Helen Lewis, rh Dr Julian Robathan, rh Mr Andrew Wilson, Mr Rob Gray, Mr James Liddell-Grainger, Mr Ian Robertson, rh Sir Hugh Wollaston, Dr Sarah 1233 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1234 Situation Situation Wright, rh Jeremy Zahawi, Nadhim Jones, Susan Elan Reeves, Rachel Wright, Simon Tellers for the Ayes: Jowell, rh Dame Tessa Reynolds, Emma Yeo, Mr Tim Tom Brake and Kane, Mike Reynolds, Jonathan Young, rh Sir George Mr Ben Wallace Keeley, Barbara Ritchie, Ms Margaret Kendall, Liz Robertson, Angus Khan, rh Sadiq Robertson, John NOES Lavery, Ian Robinson, Mr Geoffrey Abbott, Ms Diane De Piero, Gloria Lazarowicz, Mark Rotheram, Steve Abrahams, Debbie Denham, rh Mr John Leslie, Chris Roy, Mr Frank Ainsworth, rh Mr Bob Dobson, rh Frank Lewell-Buck, Mrs Emma Roy, Lindsay Alexander, rh Mr Douglas Docherty, Thomas Lewis, Mr Ivan Ruane, Chris Ali, Rushanara Donaldson, rh Mr Jeffrey M. Llwyd, rh Mr Elfyn Ruddock, rh Dame Joan Allen, Mr Graham Donohoe, Mr Brian H. Long, Naomi Sarwar, Anas Anderson, Mr David Doran, Mr Frank Love, Mr Andrew Sawford, Andy Ashworth, Jonathan Doughty, Stephen Lucas, Caroline Seabeck, Alison Austin, Ian Dowd, Jim Lucas, Ian Shannon, Jim Bailey, Mr Adrian Doyle, Gemma MacNeil, Mr Angus Brendan Sharma, Mr Virendra Bain, Mr William Dromey, Jack Mactaggart, rh Fiona Sheerman, Mr Barry Balls, rh Ed Dugher, Michael Mahmood, Mr Khalid Sheridan, Jim Banks, Gordon Durkan, Mark Mahmood, Shabana Shuker, Gavin Barron, rh Kevin Eagle, Ms Angela Malhotra, Seema Simpson, David Bayley, Sir Hugh Eagle, Maria Mann, John Skinner, Mr Dennis Beckett, rh Margaret Edwards, Jonathan Marsden, Mr Gordon Slaughter, Mr Andy Begg, Dame Anne Efford, Clive McCabe, Steve Smith, rh Mr Andrew Benn, rh Hilary Elliott, Julie McCann, Mr Michael Smith, Angela Benton, Mr Joe Ellman, Mrs Louise McCarthy, Kerry Smith, Nick Berger, Luciana Engel, Natascha McClymont, Gregg Smith, Owen Betts, Mr Clive Esterson, Bill McCrea, Dr William Spellar, rh Mr John Blackman-Woods, Roberta Evans, Chris McDonald, Andy Straw, rh Mr Jack Blears, rh Hazel Farrelly, Paul McFadden, rh Mr Pat Stringer, Graham Blenkinsop, Tom Fitzpatrick, Jim McGovern, Alison Stuart, Ms Gisela Blomfield, Paul Flello, Robert McGovern, Jim Sutcliffe, Mr Gerry Blunkett, rh Mr David Flint, rh Caroline McGuire, rh Dame Anne Tami, Mark Bradshaw, rh Mr Ben Flynn, Paul McInnes, Liz Thomas, Mr Gareth Brennan, Kevin Fovargue, Yvonne McKechin, Ann Thornberry, Emily Brown, Lyn Francis, Dr Hywel McKenzie, Mr Iain Timms, rh Stephen Meacher, rh Mr Michael Brown, rh Mr Nicholas Gapes, Mike Trickett, Jon Brown, Mr Russell Gardiner, Barry Meale, Sir Alan Turner, Karl Bryant, Chris Gilmore, Sheila Mearns, Ian Twigg, Derek Buck, Ms Karen Glindon, Mrs Mary Miliband, rh Edward Twigg, Stephen Burden, Richard Godsiff, Mr Roger Miller, Andrew Umunna, Mr Chuka Burnham, rh Andy Goodman, Helen Mitchell, Austin Campbell, rh Mr Alan Greatrex, Tom Morden, Jessica Vaz, Valerie Campbell, Mr Gregory Green, Kate Morrice, Graeme (Livingston) Walley, Joan Campbell, Mr Ronnie Greenwood, Lilian Morris, Grahame M. Watson, Mr Tom Caton, Martin Griffith, Nia (Easington) Watts, Mr Dave Champion, Sarah Gwynne, Andrew Mudie, Mr George Weir, Mr Mike Chapman, Jenny Hain, rh Mr Peter Munn, Meg Whiteford, Dr Eilidh Clark, Katy Hamilton, Mr David Murphy, rh Mr Jim Whitehead, Dr Alan Clarke, rh Mr Tom Hamilton, Fabian Murphy, rh Paul Williams, Hywel Clwyd, rh Ann Hanson, rh Mr David Murray, Ian Wilson, Phil Coaker, Vernon Harman, rh Ms Harriet Nash, Pamela Wilson, Sammy Coffey, Ann Harris, Mr Tom O’Donnell, Fiona Winnick, Mr David Connarty, Michael Havard, Mr Dai Osborne, Sandra Winterton, rh Ms Rosie Cooper, Rosie Healey, rh John Owen, Albert Wishart, Pete Cooper, rh Yvette Hepburn, Mr Stephen Pearce, Teresa Woodcock, John Corbyn, Jeremy Heyes, David Perkins, Toby Woodward, rh Mr Shaun Pound, Stephen Crausby, Mr David Hillier, Meg Wright, David Creagh, Mary Hilling, Julie Powell, Lucy Wright, Mr Iain Creasy, Stella Hoey, Kate Qureshi, Yasmin Cruddas, Jon Hopkins, Kelvin Raynsford, rh Mr Nick Tellers for the Noes: Cryer, John Hosie, Stewart Reed, Mr Jamie Heidi Alexander and Cunningham, Alex Howarth, rh Mr George Reed, Mr Steve Bridget Phillipson Cunningham, Mr Jim Hunt, Tristram Cunningham, Sir Tony Irranca-Davies, Huw Question accordingly agreed to. Curran, Margaret Jamieson, Cathy Resolved, Dakin, Nic Jarvis, Dan Danczuk, Simon Johnson, rh Alan (1) That it is expedient to amend the law with respect to the Darling, rh Mr Alistair Johnson, Diana National Debt and the public revenue and to make further David, Wayne Jones, Graham provision in connection with finance. Davidson, Mr Ian Jones, Helen (2) This Resolution does not extend to the making of any Davies, Geraint Jones, Mr Kevan amendment with respect to value added tax so as to provide— 1235 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1236 Situation Situation (a) for zero-rating or exempting a supply, acquisition or Drax, Richard Howell, John importation; Duddridge, James Hughes, rh Simon (b) for refunding an amount of tax; Duncan, rh Sir Alan Hunt, rh Mr Jeremy Duncan Smith, rh Mr Iain Hunter, Mark (c) for any relief, other than a relief that— Dunne, Mr Philip Huppert, Dr Julian (i) so far as it is applicable to goods, applies to goods of Ellis, Michael Hurd, Mr Nick every description, and Ellison, Jane Jackson, Mr Stewart (ii) so far as it is applicable to services, applies to services Ellwood, Mr Tobias James, Margot of every description. Elphicke, Charlie Javid, rh Sajid The Speaker put forthwith the Questions necessary to Eustice, George Jenkin, Mr Bernard dispose of the motions made in the name of the Chancellor Evans, Graham Jenrick, Robert of the Exchequer (Standing Order No. 51(3). Evans, Jonathan Johnson, Gareth Evans, Mr Nigel Johnson, Joseph Evennett, rh Mr David Jones, Andrew 2. INCOME TAX (CHARGE AND MAIN RATES) Fabricant, Michael Jones, rh Mr David Question put, Fallon, rh Michael Jones, Mr Marcus Farron, Tim Kawczynski, Daniel That— Featherstone, rh Lynne Kelly, Chris (1) Income tax is charged for the tax year 2015-16. Field, rh Mark Kennedy, rh Mr Charles (2) For that tax year— Foster, rh Mr Don Kirby, Simon (a) the basic rate is 20%, Fox,rhDrLiam Knight, rh Sir Greg (b) the higher rate is 40%, and Francois, rh Mr Mark Kwarteng, Kwasi Freeman, George Lamb, rh Norman (c) the additional rate is 45%. Freer, Mike Lancaster, Mark And it is declared that it is expedient in the public interest Fuller, Richard Latham, Pauline that this Resolution should have statutory effect Garnier, rh Sir Edward Laws, rh Mr David under the provisions of the Provisional Collection of Garnier, Mark Leadsom, Andrea Taxes Act 1968. Gauke, Mr David Lee, Jessica The House divided: Ayes 340, Noes 244. George, Andrew Lee, Dr Phillip Division No. 180] [10.15 pm Gibb, Mr Nick Leech, Mr John Gillan, rh Mrs Cheryl Lefroy, Jeremy Glen, John Leigh, Sir Edward AYES Goldsmith, Zac Leslie, Charlotte Adams, Nigel Burns, Conor Goodwill, Mr Robert Letwin, rh Mr Oliver Afriyie, Adam Burns, rh Mr Simon Graham, Richard Lewis, Brandon Aldous, Peter Burrowes, Mr David Grant, Mrs Helen Lewis, rh Dr Julian Alexander, rh Danny Burstow, rh Paul Gray, Mr James Liddell-Grainger, Mr Ian Amess, Sir David Burt, rh Alistair Grayling, rh Chris Lidington, rh Mr David Andrew, Stuart Burt, Lorely Green, rh Damian Lilley, rh Mr Peter Arbuthnot, rh Mr James Byles, Dan Greening, rh Justine Lloyd, Stephen Bacon, Mr Richard Cable, rh Vince Grieve, rh Mr Dominic Lopresti, Jack Baker, rh Norman Cairns, Alun Griffiths, Andrew Loughton, Tim Baker, Steve Campbell, Mr Gregory Gummer, Ben Luff, Sir Peter Baldry, rh Sir Tony Campbell, rh Sir Menzies Gyimah, Mr Sam Lumley, Karen Baldwin, Harriett Carmichael, rh Mr Alistair Hague, rh Mr William Macleod, Mary Barclay, Stephen Carmichael, Neil Halfon, Robert Main, Mrs Anne Barker, rh Gregory Carswell, Douglas Hammond, Stephen Maude, rh Mr Francis Baron, Mr John Cash, Sir William Hancock, rh Matthew May, rh Mrs Theresa Bebb, Guto Chishti, Rehman Hancock, Mr Mike Maynard, Paul Beith, rh Sir Alan Chope, Mr Christopher Hands, rh Greg McCartney, Jason Bellingham, Mr Henry Clappison, Mr James Harper, Mr Mark McCrea, Dr William Benyon, Richard Clark, rh Greg Harrington, Richard McIntosh, Miss Anne Berry, Jake Clarke, rh Mr Kenneth Harris, Rebecca McLoughlin, rh Mr Patrick Bingham, Andrew Clifton-Brown, Geoffrey Hart, Simon McPartland, Stephen Binley, Mr Brian Coffey, Dr Thérèse Harvey, Sir Nick McVey, rh Esther Blackman, Bob Collins, Damian Haselhurst, rh Sir Alan Menzies, Mark Blackwood, Nicola Colvile, Oliver Hayes, rh Mr John Metcalfe, Stephen Blunt, Crispin Cox, Mr Geoffrey Heald, Sir Oliver Miller, rh Maria Boles, Nick Crabb, rh Stephen Heath, rh Mr David Mills, Nigel Bone, Mr Peter Crouch, Tracey Heaton-Harris, Chris Milton, rh Anne Bottomley, Sir Peter Davey, rh Mr Edward Hemming, John Mitchell, rh Mr Andrew Bradley, Karen Davies, David T. C. Henderson, Gordon Moore, rh Michael Brady, Mr Graham (Monmouth) Hendry, rh Charles Mordaunt, Penny Brazier, Mr Julian Davies, Glyn Herbert, rh Nick Morgan, rh Nicky Bridgen, Andrew Davies, Philip Hinds, Damian Morris, Anne Marie Brine, Steve Davis, rh Mr David Hoban, Mr Mark Morris, David Brokenshire, James de Bois, Nick Hollingbery, George Morris, James Browne, Mr Jeremy Dinenage, Caroline Hollobone, Mr Philip Mosley, Stephen Bruce, Fiona Djanogly, Mr Jonathan Holloway, Mr Adam Mowat, David Bruce, rh Sir Malcolm Donaldson, rh Mr Jeffrey M. Hopkins, Kris Mundell, rh David Buckland, Mr Robert Dorrell, rh Mr Stephen Horwood, Martin Munt, Tessa Burley, Mr Aidan Doyle-Price, Jackie Howarth, Sir Gerald Murray, Sheryll 1237 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1238 Situation Situation Murrison, Dr Andrew Soubry, Anna Begg, Dame Anne Flint, rh Caroline Neill, Robert Spelman, rh Mrs Caroline Benn, rh Hilary Flynn, Paul Newmark, Mr Brooks Spencer, Mr Mark Benton, Mr Joe Fovargue, Yvonne Newton, Sarah Stanley, rh Sir John Berger, Luciana Francis, Dr Hywel Nokes, Caroline Stephenson, Andrew Betts, Mr Clive Gapes, Mike Norman, Jesse Stevenson, John Blackman-Woods, Roberta Gardiner, Barry Nuttall, Mr David Stewart, Bob Blears, rh Hazel Gilmore, Sheila O’Brien, rh Mr Stephen Stewart, Iain Blenkinsop, Tom Glindon, Mrs Mary Offord, Dr Matthew Stewart, Rory Blomfield, Paul Godsiff, Mr Roger Ollerenshaw, Eric Streeter, Mr Gary Blunkett, rh Mr David Goodman, Helen Opperman, Guy Stride, Mel Bradshaw, rh Mr Ben Greatrex, Tom Osborne, rh Mr George Stuart, Mr Graham Brennan, Kevin Green, Kate Ottaway, rh Sir Richard Stunell, rh Sir Andrew Brown, Lyn Greenwood, Lilian Paice, rh Sir James Sturdy, Julian Brown, rh Mr Nicholas Griffith, Nia Parish, Neil Swales, Ian Brown, Mr Russell Gwynne, Andrew Patel, Priti Swayne, rh Mr Desmond Bryant, Chris Hain, rh Mr Peter Paterson, rh Mr Owen Swinson, Jo Buck, Ms Karen Hamilton, Mr David Pawsey, Mark Swire, rh Mr Hugo Burden, Richard Hamilton, Fabian Penning, rh Mike Syms, Mr Robert Burnham, rh Andy Hanson, rh Mr David Penrose, John Tapsell, rh Sir Peter Campbell, rh Mr Alan Harman, rh Ms Harriet Percy, Andrew Teather, Sarah Campbell, Mr Ronnie Harris, Mr Tom Perry, Claire Thornton, Mike Caton, Martin Havard, Mr Dai Phillips, Stephen Thurso, rh John Champion, Sarah Healey, rh John Pickles, rh Mr Eric Timpson, Mr Edward Chapman, Jenny Hepburn, Mr Stephen Pincher, Christopher Tomlinson, Justin Clark, Katy Heyes, David Poulter, Dr Daniel Tredinnick, David Clarke, rh Mr Tom Hillier, Meg Prisk, Mr Mark Truss, rh Elizabeth Clwyd, rh Ann Hilling, Julie Pritchard, Mark Turner, Mr Andrew Coaker, Vernon Hoey, Kate Raab, Mr Dominic Tyrie, Mr Andrew Coffey, Ann Hopkins, Kelvin Randall, rh Sir John Uppal, Paul Connarty, Michael Hosie, Stewart Reckless, Mark Vaizey, Mr Edward Cooper, Rosie Howarth, rh Mr George Redwood, rh Mr John Vara, Mr Shailesh Cooper, rh Yvette Hunt, Tristram Rees-Mogg, Jacob Vickers, Martin Corbyn, Jeremy Irranca-Davies, Huw Reevell, Simon Walker, Mr Charles Crausby, Mr David Jamieson, Cathy Reid, Mr Alan Walker, Mr Robin Creagh, Mary Jarvis, Dan Rifkind, rh Sir Malcolm Wallace, Mr Ben Creasy, Stella Johnson, rh Alan Robathan, rh Mr Andrew Weatherley, Mike Cruddas, Jon Johnson, Diana Robertson, rh Sir Hugh Webb, rh Steve Cryer, John Jones, Graham Robertson, Mr Laurence Wharton, James Cunningham, Alex Jones, Helen Rosindell, Andrew Wheeler, Heather Cunningham, Mr Jim Jones, Mr Kevan Rudd, Amber White, Chris Cunningham, Sir Tony Jones, Susan Elan Ruffley, Mr David Whittaker, Craig Curran, Margaret Jowell, rh Dame Tessa Russell, Sir Bob Whittingdale, Mr John Dakin, Nic Kane, Mike Rutley, David Wiggin, Bill Danczuk, Simon Keeley, Barbara Sanders, Mr Adrian Willetts, rh Mr David Darling, rh Mr Alistair Kendall, Liz Sandys, Laura Williams, Roger David, Wayne Khan, rh Sadiq Scott, Mr Lee Williams, Stephen Davidson, Mr Ian Lavery, Ian Selous, Andrew Williamson, Gavin Davies, Geraint Lazarowicz, Mark Shannon, Jim Willott, rh Jenny De Piero, Gloria Leslie, Chris Shapps, rh Grant Wilson, Mr Rob Denham, rh Mr John Lewell-Buck, Mrs Emma Sharma, Alok Wilson, Sammy Dobson, rh Frank Lewis, Mr Ivan Shelbrooke, Alec Wollaston, Dr Sarah Docherty, Thomas Llwyd, rh Mr Elfyn Simmonds, rh Mark Wright, rh Jeremy Donohoe, Mr Brian H. Long, Naomi Simpson, David Wright, Simon Doran, Mr Frank Love, Mr Andrew Doughty, Stephen Lucas, Caroline Simpson, rh Mr Keith Yeo, Mr Tim Skidmore, Chris Dowd, Jim Lucas, Ian Young, rh Sir George Smith, Chloe Doyle, Gemma MacNeil, Mr Angus Brendan Zahawi, Nadhim Smith, Henry Dromey, Jack Mactaggart, rh Fiona Smith, Julian Tellers for the Ayes: Dugher, Michael Mahmood, Mr Khalid Smith, Sir Robert Tom Brake and Durkan, Mark Mahmood, Shabana Soames, rh Sir Nicholas Gavin Barwell Eagle, Ms Angela Malhotra, Seema Eagle, Maria Mann, John NOES Edwards, Jonathan Marsden, Mr Gordon Efford, Clive McCabe, Steve Abbott, Ms Diane Austin, Ian Elliott, Julie McCann, Mr Michael Abrahams, Debbie Bailey, Mr Adrian Ellman, Mrs Louise McCarthy, Kerry Ainsworth, rh Mr Bob Bain, Mr William Engel, Natascha McClymont, Gregg Alexander, rh Mr Douglas Balls, rh Ed Esterson, Bill McDonald, Andy Ali, Rushanara Banks, Gordon Evans, Chris McFadden, rh Mr Pat Allen, Mr Graham Barron, rh Kevin Farrelly, Paul McGovern, Alison Anderson, Mr David Bayley, Sir Hugh Fitzpatrick, Jim McGovern, Jim Ashworth, Jonathan Beckett, rh Margaret Flello, Robert McGuire, rh Dame Anne 1239 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1240 Situation Situation McInnes, Liz Sharma, Mr Virendra and civil partnerships on or after 5 December 2005 McKechin, Ann Sheerman, Mr Barry where spouse or civil partner is 75 or over) is replaced McKenzie, Mr Iain Sheridan, Jim with “£8,355”, and Meacher, rh Mr Michael Shuker, Gavin (g) the amount specified in section 46(4) of that Act Meale, Sir Alan Skinner, Mr Dennis (income limit for calculating allowance in relation to Mearns, Ian Slaughter, Mr Andy marriages and civil partnerships on or after 5 December Miliband, rh Edward Smith, rh Mr Andrew 2005) is replaced with Miller, Andrew Smith, Angela “£27,700”. Mitchell, Austin Smith, Nick (2) Accordingly, for that tax year, section 57 of that Act Morden, Jessica Smith, Owen (indexation of allowances), so far as relating to the amounts Morrice, Graeme (Livingston) Spellar, rh Mr John specified in sections 37(2), 38(1), 43, 45(3)(a), 45(4), 46(3)(a) and Morris, Grahame M. Straw, rh Mr Jack 46(4) of that Act, does not apply. (Easington) Stringer, Graham And it is declared that it is expedient in the public interest that Munn, Meg Stuart, Ms Gisela this Resolution should have statutory effect under the provisions Murphy, rh Mr Jim Sutcliffe, Mr Gerry of the Provisional Collection of Taxes Act 1968. Murphy, rh Paul Tami, Mark Murray, Ian Thomas, Mr Gareth Nash, Pamela Thornberry, Emily 4. PERSONAL ALLOWANCES FOR 2015-2016 O’Donnell, Fiona Timms, rh Stephen Resolved, Osborne, Sandra Trickett, Jon Owen, Albert Turner, Karl That— Pearce, Teresa Twigg, Derek (1) Section 2 of the Finance Act 2014 (basic rate limit for Perkins, Toby Twigg, Stephen 2015-16 and personal allowances from 2015) is amended as set Pound, Stephen Umunna, Mr Chuka out in paragraphs (2) and (3). Powell, Lucy Vaz, Valerie (2) In subsection (1)(b) (amount specified for 2015-16 in Qureshi, Yasmin Walley, Joan section 35(1) of the Income Tax Act 2007 (personal allowance for Raynsford, rh Mr Nick Watson, Mr Tom those born after 5 April 1938)), for ““£10,500”” substitute Reed, Mr Jamie Watts, Mr Dave ““£10,600””. Reed, Mr Steve Weir, Mr Mike (3) In subsection (8) (amendments of section 57 of the Income Reeves, Rachel Whiteford, Dr Eilidh Tax Act 2007), omit the “and” at the end of paragraph (a) and Reynolds, Emma Whitehead, Dr Alan after that paragraph insert— Reynolds, Jonathan Williams, Hywel “(aa) in subsection (1)(h), omit “36(2),”, and”. Ritchie, Ms Margaret Wilson, Phil (4) In section 55B(4)(a) of the Income Tax Act 2007 Robertson, Angus Winnick, Mr David (transferable tax allowance for married couples and civil Robertson, John Winterton, rh Ms Rosie partners: entitlement to tax reduction), for “£1,050” substitute Robinson, Mr Geoffrey Wishart, Pete “£1,060”. Rotheram, Steve Woodcock, John (5) The amendments made by paragraphs (3) and (4) have Roy, Mr Frank Woodward, rh Mr Shaun Roy, Lindsay effect for the tax year 2015-16 and subsequent tax years. Wright, David Ruane, Chris And it is declared that it is expedient in the public interest that Wright, Mr Iain Ruddock, rh Dame Joan this Resolution should have statutory effect under the provisions Sarwar, Anas Tellers for the Noes: of the Provisional Collection of Taxes Act 1968. Sawford, Andy Bridget Phillipson and Seabeck, Alison Heidi Alexander 5. CORPORATION TAX (CHARGE FOR FINANCIAL YEAR 2016) Question accordingly agreed to. Question put, 3. INCOME TAX (LIMITS AND ALLOWANCES) That— Resolved, (1) Corporation tax is charged for the financial year 2016. That— (2) For that year the main rate of corporation tax is 20%. (1) For the tax year 2015-16— The House divided: Ayes 337, Noes 240. (a) the amount specified in section 37(2) of the Income Division No. 181] [10.29 pm Tax Act 2007 (income limit for personal allowance for those born before 6 April 1938) is replaced with “£27,700”, AYES (b) the amount specified in section 38(1) of that Act (blind Adams, Nigel Bebb, Guto person’s allowance) is replaced with “£2,290”, Afriyie, Adam Beith, rh Sir Alan (c) the amount specified in section 43 of that Act Aldous, Peter Bellingham, Mr Henry (“minimum amount” for calculating tax reductions Alexander, rh Danny Benyon, Richard for married couples and civil partners) is replaced Amess, Sir David Berry, Jake with “£3,220”, Andrew, Stuart Bingham, Andrew (d) the amount specified in section 45(3)(a) of that Act Arbuthnot, rh Mr James Binley, Mr Brian (amount for calculating allowance in relation to Bacon, Mr Richard Blackman, Bob marriages before 5 December 2005 where spouse is 75 Baker, rh Norman Blackwood, Nicola or over) is replaced with “£8,355”, Baker, Steve Blunt, Crispin (e) the amount specified in section 45(4) of that Act Baldry, rh Sir Tony Boles, Nick (income limit for calculating allowance in relation to Baldwin, Harriett Bone, Mr Peter marriages before 5 December 2005) is replaced with Barclay, Stephen Bottomley, Sir Peter “£27,700”, Barker, rh Gregory Bradley, Karen (f) the amount specified in section 46(3)(a) of that Act Baron, Mr John Brady, Mr Graham (amount for calculating allowance in relation to marriages Barwell, Gavin Brazier, Mr Julian 1241 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1242 Situation Situation Bridgen, Andrew Garnier, Mark Leadsom, Andrea Poulter, Dr Daniel Brine, Steve Gauke, Mr David Lee, Jessica Prisk, Mr Mark Brokenshire, James George, Andrew Lee, Dr Phillip Pritchard, Mark Browne, Mr Jeremy Gibb, Mr Nick Leech, Mr John Raab, Mr Dominic Bruce, Fiona Gillan, rh Mrs Cheryl Lefroy, Jeremy Reckless, Mark Bruce, rh Sir Malcolm Glen, John Leigh, Sir Edward Redwood, rh Mr John Buckland, Mr Robert Goldsmith, Zac Leslie, Charlotte Rees-Mogg, Jacob Burns, Conor Goodwill, Mr Robert Letwin, rh Mr Oliver Reevell, Simon Burns, rh Mr Simon Graham, Richard Lewis, Brandon Reid, Mr Alan Burrowes, Mr David Grant, Mrs Helen Lewis, rh Dr Julian Robathan, rh Mr Andrew Burstow, rh Paul Gray, Mr James Liddell-Grainger, Mr Ian Robertson, rh Sir Hugh Burt, rh Alistair Grayling, rh Chris Lidington, rh Mr David Robertson, Mr Laurence Burt, Lorely Green, rh Damian Lilley, rh Mr Peter Rosindell, Andrew Byles, Dan Greening, rh Justine Lloyd, Stephen Rudd, Amber Cable, rh Vince Grieve, rh Mr Dominic Long, Naomi Ruffley, Mr David Cairns, Alun Griffiths, Andrew Lopresti, Jack Russell, Sir Bob Campbell, Mr Gregory Gummer, Ben Loughton, Tim Rutley, David Campbell, rh Sir Menzies Gyimah, Mr Sam Luff, Sir Peter Sanders, Mr Adrian Carmichael, rh Mr Alistair Hague, rh Mr William Lumley, Karen Sandys, Laura Carmichael, Neil Halfon, Robert Macleod, Mary Scott, Mr Lee Carswell, Douglas Hammond, Stephen Main, Mrs Anne Selous, Andrew Cash, Sir William Hancock, rh Matthew Maude, rh Mr Francis Shannon, Jim Chishti, Rehman Hancock, Mr Mike May, rh Mrs Theresa Shapps, rh Grant Chope, Mr Christopher Hands, rh Greg Maynard, Paul Sharma, Alok Clappison, Mr James Harper, Mr Mark McCartney, Jason Shelbrooke, Alec Clark, rh Greg Harrington, Richard McCrea, Dr William Simmonds, rh Mark Clarke, rh Mr Kenneth Harris, Rebecca McIntosh, Miss Anne Simpson, David Clifton-Brown, Geoffrey Hart, Simon McLoughlin, rh Mr Patrick Simpson, rh Mr Keith Coffey, Dr Thérèse Harvey, Sir Nick McPartland, Stephen Skidmore, Chris Collins, Damian Haselhurst, rh Sir Alan McVey, rh Esther Smith, Chloe Colvile, Oliver Hayes, rh Mr John Menzies, Mark Smith, Henry Cox, Mr Geoffrey Heald, Sir Oliver Metcalfe, Stephen Smith, Julian Crabb, rh Stephen Heath, rh Mr David Miller, rh Maria Smith, Sir Robert Crouch, Tracey Heaton-Harris, Chris Mills, Nigel Soames, rh Sir Nicholas Davey, rh Mr Edward Hemming, John Milton, rh Anne Soubry, Anna Davies, David T. C. Henderson, Gordon Mitchell, rh Mr Andrew Spelman, rh Mrs Caroline (Monmouth) Hendry, rh Charles Moore, rh Michael Spencer, Mr Mark Davies, Glyn Herbert, rh Nick Mordaunt, Penny Stanley, rh Sir John Davies, Philip Hinds, Damian Morgan, rh Nicky Stephenson, Andrew Davis, rh Mr David Hoban, Mr Mark Morris, Anne Marie Stevenson, John de Bois, Nick Hollingbery, George Morris, David Stewart, Bob Dinenage, Caroline Hollobone, Mr Philip Morris, James Stewart, Iain Djanogly, Mr Jonathan Holloway, Mr Adam Mosley, Stephen Stewart, Rory Donaldson, rh Mr Jeffrey M. Hopkins, Kris Mowat, David Streeter, Mr Gary Dorrell, rh Mr Stephen Horwood, Martin Mundell, rh David Stride, Mel Doyle-Price, Jackie Howarth, Sir Gerald Munt, Tessa Stuart, Mr Graham Drax, Richard Howell, John Murray, Sheryll Stunell, rh Sir Andrew Duddridge, James Hughes, rh Simon Murrison, Dr Andrew Sturdy, Julian Duncan, rh Sir Alan Hunt, rh Mr Jeremy Neill, Robert Swales, Ian Duncan Smith, rh Mr Iain Hunter, Mark Newmark, Mr Brooks Swayne, rh Mr Desmond Dunne, Mr Philip Huppert, Dr Julian Newton, Sarah Swinson, Jo Ellis, Michael Hurd, Mr Nick Nokes, Caroline Swire, rh Mr Hugo Ellison, Jane Jackson, Mr Stewart Norman, Jesse Syms, Mr Robert Ellwood, Mr Tobias James, Margot Nuttall, Mr David Teather, Sarah Elphicke, Charlie Javid, rh Sajid O’Brien, rh Mr Stephen Thornton, Mike Eustice, George Jenkin, Mr Bernard Offord, Dr Matthew Thurso, rh John Evans, Graham Jenrick, Robert Ollerenshaw, Eric Timpson, Mr Edward Evans, Jonathan Johnson, Gareth Opperman, Guy Tomlinson, Justin Evans, Mr Nigel Johnson, Joseph Osborne, rh Mr George Tredinnick, David Evennett, rh Mr David Jones, Andrew Ottaway, rh Sir Richard Truss, rh Elizabeth Fabricant, Michael Jones, rh Mr David Paice, rh Sir James Turner, Mr Andrew Fallon, rh Michael Jones, Mr Marcus Parish, Neil Tyrie, Mr Andrew Farron, Tim Kawczynski, Daniel Patel, Priti Uppal, Paul Featherstone, rh Lynne Kelly, Chris Paterson, rh Mr Owen Vaizey, Mr Edward Field, rh Mark Kennedy, rh Mr Charles Pawsey, Mark Vara, Mr Shailesh Foster, rh Mr Don Kirby, Simon Penning, rh Mike Vickers, Martin Fox,rhDrLiam Knight, rh Sir Greg Penrose, John Villiers, rh Mrs Theresa Francois, rh Mr Mark Kwarteng, Kwasi Percy, Andrew Walker, Mr Charles Freeman, George Lamb, rh Norman Perry, Claire Walker, Mr Robin Freer, Mike Lancaster, Mark Phillips, Stephen Weatherley, Mike Fuller, Richard Latham, Pauline Pickles, rh Mr Eric Webb, rh Steve Garnier, rh Sir Edward Laws, rh Mr David Pincher, Christopher Wharton, James 1243 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1244 Situation Situation Wheeler, Heather Wilson, Sammy Hillier, Meg Pearce, Teresa White, Chris Wollaston, Dr Sarah Hilling, Julie Perkins, Toby Whittaker, Craig Wright, rh Jeremy Hoey, Kate Pound, Stephen Whittingdale, Mr John Wright, Simon Hopkins, Kelvin Powell, Lucy Wiggin, Bill Yeo, Mr Tim Hosie, Stewart Qureshi, Yasmin Willetts, rh Mr David Young, rh Sir George Howarth, rh Mr George Raynsford, rh Mr Nick Williams, Roger Zahawi, Nadhim Hunt, Tristram Reed, Mr Jamie Williams, Stephen Irranca-Davies, Huw Reed, Mr Steve Williamson, Gavin Tellers for the Ayes: Jamieson, Cathy Reeves, Rachel Willott, rh Jenny Tom Brake and Jarvis, Dan Reynolds, Emma Wilson, Mr Rob Mr Ben Wallace Johnson, rh Alan Reynolds, Jonathan Johnson, Diana Robertson, Angus NOES Jones, Graham Robertson, John Jones, Helen Robinson, Mr Geoffrey Abbott, Ms Diane Cunningham, Sir Tony Jones, Mr Kevan Rotheram, Steve Abrahams, Debbie Curran, Margaret Jones, Susan Elan Roy, Mr Frank Ainsworth, rh Mr Bob Dakin, Nic Jowell, rh Dame Tessa Roy, Lindsay Alexander, rh Mr Douglas Danczuk, Simon Kane, Mike Ruane, Chris Ali, Rushanara Darling, rh Mr Alistair Keeley, Barbara Ruddock, rh Dame Joan Allen, Mr Graham David, Wayne Kendall, Liz Sarwar, Anas Anderson, Mr David Davidson, Mr Ian Khan, rh Sadiq Sawford, Andy Ashworth, Jonathan Davies, Geraint Lavery, Ian Seabeck, Alison Austin, Ian De Piero, Gloria Lazarowicz, Mark Sharma, Mr Virendra Bailey, Mr Adrian Denham, rh Mr John Leslie, Chris Sheerman, Mr Barry Bain, Mr William Dobson, rh Frank Lewell-Buck, Mrs Emma Sheridan, Jim Balls, rh Ed Docherty, Thomas Lewis, Mr Ivan Shuker, Gavin Banks, Gordon Donohoe, Mr Brian H. Llwyd, rh Mr Elfyn Skinner, Mr Dennis Barron, rh Kevin Doran, Mr Frank Love, Mr Andrew Slaughter, Mr Andy Lucas, Caroline Smith, rh Mr Andrew Bayley, Sir Hugh Doughty, Stephen Lucas, Ian Smith, Angela Beckett, rh Margaret Dowd, Jim MacNeil, Mr Angus Brendan Smith, Nick Begg, Dame Anne Doyle, Gemma Mactaggart, rh Fiona Smith, Owen Benn, rh Hilary Dromey, Jack Mahmood, Mr Khalid Spellar, rh Mr John Benton, Mr Joe Dugher, Michael Mahmood, Shabana Straw, rh Mr Jack Berger, Luciana Eagle, Ms Angela Malhotra, Seema Stringer, Graham Betts, Mr Clive Eagle, Maria Mann, John Stuart, Ms Gisela Blackman-Woods, Roberta Edwards, Jonathan Marsden, Mr Gordon Sutcliffe, Mr Gerry Blears, rh Hazel Efford, Clive McCabe, Steve Tami, Mark Blenkinsop, Tom Elliott, Julie McCann, Mr Michael Thomas, Mr Gareth Blomfield, Paul Ellman, Mrs Louise McCarthy, Kerry Thornberry, Emily Blunkett, rh Mr David Engel, Natascha McClymont, Gregg Timms, rh Stephen Bradshaw, rh Mr Ben Esterson, Bill McDonald, Andy Trickett, Jon Brennan, Kevin Evans, Chris McFadden, rh Mr Pat Turner, Karl Brown, Lyn Farrelly, Paul McGovern, Alison Twigg, Derek Brown, rh Mr Nicholas Fitzpatrick, Jim McGovern, Jim Twigg, Stephen Brown, Mr Russell Flello, Robert McGuire, rh Dame Anne Umunna, Mr Chuka Bryant, Chris Flint, rh Caroline McInnes, Liz Vaz, Valerie Buck, Ms Karen Flynn, Paul McKechin, Ann Walley, Joan Burden, Richard Fovargue, Yvonne McKenzie, Mr Iain Meacher, rh Mr Michael Watson, Mr Tom Burnham, rh Andy Francis, Dr Hywel Meale, Sir Alan Watts, Mr Dave Campbell, rh Mr Alan Gapes, Mike Mearns, Ian Weir, Mr Mike Campbell, Mr Ronnie Gardiner, Barry Miliband, rh Edward Whiteford, Dr Eilidh Caton, Martin Gilmore, Sheila Miller, Andrew Whitehead, Dr Alan Champion, Sarah Glindon, Mrs Mary Mitchell, Austin Williams, Hywel Chapman, Jenny Godsiff, Mr Roger Morden, Jessica Wilson, Phil Clark, Katy Goodman, Helen Morrice, Graeme (Livingston) Winnick, Mr David Clarke, rh Mr Tom Greatrex, Tom Morris, Grahame M. Winterton, rh Ms Rosie Clwyd, rh Ann Green, Kate (Easington) Wishart, Pete Coaker, Vernon Greenwood, Lilian Munn, Meg Woodcock, John Coffey, Ann Griffith, Nia Murphy, rh Mr Jim Woodward, rh Mr Shaun Connarty, Michael Gwynne, Andrew Murphy, rh Paul Wright, David Cooper, Rosie Hain, rh Mr Peter Murray, Ian Wright, Mr Iain Cooper, rh Yvette Hamilton, Mr David Nash, Pamela Corbyn, Jeremy Hamilton, Fabian O’Donnell, Fiona Tellers for the Noes: Crausby, Mr David Hanson, rh Mr David Osborne, Sandra Heidi Alexander and Creagh, Mary Harman, rh Ms Harriet Owen, Albert Bridget Phillipson Creasy, Stella Harris, Mr Tom Cruddas, Jon Havard, Mr Dai Question accordingly agreed to. Cryer, John Healey, rh John Cunningham, Alex Hepburn, Mr Stephen Mr Speaker: With the leave of the House, I will put Cunningham, Mr Jim Heyes, David the remaining motions together. 1245 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1246 Situation Situation 6. TAXABLE BENEFITS (DIESEL CARS) 10. INCOME TAX (PAYE) Resolved, Resolved, That— That provision may be made as to the matters that (1) In section 141(2) of the Income Tax (Earnings and may be provided for by regulations under section 684 of Pensions) Act 2003 (diesel cars: the appropriate percentage), in the Income Tax (Earnings and Pensions) Act 2003. Step 3, for “35%” substitute “37%”. (2) The amendment made by paragraph (1) has effect for the tax year 2015-16. 11. DISTRIBUTIONS And it is declared that it is expedient in the public interest that Resolved, this Resolution should have statutory effect under the provisions That provision may be made amending Chapter 3 of of the Provisional Collection of Taxes Act 1968. Part 4 of the Income Tax (Trading and Other Income) Act 2005. 7. TAXABLE BENEFITS (VANS) Resolved, 12. DISGUISED INVESTMENT MANAGEMENT That— FEES (1) The Income Tax (Earnings and Pensions) Act 2003 is Resolved, amended as follows. That provision may be made about sums arising to (2) In section 155 (cash equivalent of the benefit of a van), for individuals who perform investment management services. subsections (1) and (2) substitute— “(1) The cash equivalent of the benefit of a van for a tax year is calculated as follows. 13. LOSSES FROM MISCELLANEOUS TRANSACTIONS (1A) If the restricted private use condition is met in relation to the van for the tax year, the cash equivalent is nil. Resolved, (1B) If that condition is not met in relation to the van for the That provision (including provision having retrospective tax year— effect) may be made amending Chapter 7 of Part 4 of (a) if the van cannot in any circumstances emit CO2 by the Income Tax Act 2007. being driven and the tax year is any of the tax years 2015-16 to 2019-20, the cash equivalent is the appropriate percentage of £3,150, and 14. REMITTANCE BASIS OF TAXATION (b) in any other case, the cash equivalent is £3,150. That provision may be made increasing the remittance (1C) The appropriate percentage for the purposes of basis charge. subsection (1B)(a) is— (a) 20% for the tax year 2015-16, 15. LOAN RELATIONSHIPS (b) 40% for the tax year 2016-17, Resolved, (c) 60% for the tax year 2017-18, That provision (including provision having retrospective (d) 80% for the tax year 2018-19, and effect) may be made amending Part 5 of the Corporation (e) 90% for the tax year 2019-20.” Tax Act 2009. (3) In section 156(1) (reduction for periods when van unavailable), for “155(1)” substitute “155”. 16. INTANGIBLE FIXED ASSETS (4) In section 158(1) (reduction for payments for private use), for “155(1)” substitute “155”. Resolved, (5) In section 160(1)(c) (benefit of fuel treated as earnings), for That provision (including provision having retrospective “section 155(1)(b)” substitute “section 155(1B)(b)”. effect) may be made amending Part 8 of the Corporation (6) In section 170 (orders etc relating to Chapter 6 of Part 3), Tax Act 2009. for subsection (1A) substitute— “(1A) The Treasury may by order substitute a different 17. EXPENDITURE ON RESEARCH AND amount for the amount for the time DEVELOPMENT being specified in— Resolved, (a) section 155(1A) (cash equivalent where van subject only to restricted private use by That provision may be made about tax relief for expenditure on research and development. employee), (b) section 155(1B)(a) (cash equivalent for zero-emission van), and 18. DEDUCTIONS FOR CARRIED-FORWARD (c) section 155(1B)(b) (cash equivalent in other cases).” LOSSES (7) Article 3 of the Van Benefit and Car and Van Fuel Benefit Resolved, Order 2014 (S.I. 2014/2896) is revoked. That provision (including provision having retrospective (8) The amendments made by this Resolution have effect for effect) may be made for and in connection with restricting the tax year 2015-16 and subsequent tax years. the deductions that may be made by companies in And it is declared that it is expedient in the public interest that respect of losses carried forward from earlier accounting this Resolution should have statutory effect under the provisions periods when calculating their profits for the purposes of the Provisional Collection of Taxes Act 1968. of corporation tax. 1247 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1248 Situation Situation 19. PENSIONS (iii) nominee’s flexi-access drawdown fund, or Resolved, (iv) successor’s flexi-access drawdown fund, That provision may be made in connection with the in respect of the arrangement, or taxation of pensions. (b) they arise, or (directly or indirectly) derive, from undrawn funds under paragraph (a) or from sums or assets which so arise or derive.” 20. PENSION FLEXIBILITY (BENEFICIARIES’ (8) In section 216(1) (benefit crystallisation events and ANNUITIES ETC) amounts crystallised) the table is amended as follows. Resolved, (9) In the second column of the entry relating to benefit crystallisation event 4, after “any related dependants’ annuity” That— insert “and any related nominees’ annuity”. (1) Part 4 of the Finance Act 2004 is amended as follows. (10) After the entry relating to benefit crystallisation event 5C (2) Section 167(1) (the pension death benefit rules) is amended insert— as follows. (3) In pension death benefit rule 3A (payments that may, by “5D. A person becoming entitled, The aggregate of— way of exception, be made to a nominee) after “other than” on or after 6 April 2015 but before (a) the amount of such of the insert “a nominees’ annuity in respect of a money purchase the end of the relevant two-year sums, and arrangement or”. period, to a dependants’ annuity (b) the market value of such of or nominees’ annuity in respect the assets, applied to purchase (4) In pension death benefit rule 3B (payments that may, by of the individual if— the annuity as are relevant unused way of exception, be made to a successor) after “other than” (a) the annuity is purchased using uncrystallised funds” insert “a successors’ annuity in respect of a money purchase (whether or not exclusively) relevant arrangement or”. unused uncrystallised funds, and (5) Part 2 of Schedule 28 (interpretation of the pension death (b) the individual died on or after benefit rules) is amended as follows. 3 December 2014 (6) After paragraph 27A insert— (11) Section 217 (persons liable to lifetime allowance charge) is “Nominees’ annuity amended as follows. 27AA(1) For the purposes of this Part an annuity payable (12) In subsection (2A) (cases where dependant or nominee to a nominee is a nominees’ annuity if— liable) after “event 5C,” insert “or by reason of a person (a) either— becoming entitled to an annuity as mentioned in the description of benefit crystallisation event 5D,”. (i) it is purchased together with a lifetime annuity payable to the member and the (13) In subsection (4A) (events 5C and 7 are “relevant member becomes entitled to that lifetime annuity on or post-death” events) after “benefit crystallisation event 5C” insert after 6 April 2015, or “, 5D”. (ii) it is purchased after the member’s death, the member (14) In section 219(7A) (events 5C and 7 are “relevant dies on or after 3 December post-death” events) after “benefit crystallisation event 5C” insert “, 5D”. 2014 and the nominee becomes entitled to the annuity on or after 6 April 2015, (15) In Schedule 32 (supplementary provisions about benefit (b) it is payable by an insurance company, and crystallisation events)— (c) it is payable until the nominee’s death or until the (a) in paragraph 1 (meaning of “the relevant pension earliest of the nominee’s marrying, entering into a schemes”: in certain cases means schemes of which civil partnership or dying. the individual was a member immediately before death) after “5C” insert “or 5D”, (2) For the purposes of sub-paragraph (1)(a) a nominees’ annuity is purchased together with a lifetime annuity (b) in paragraph 4(1) (further provision about benefit if the nominees’ annuity is related to the lifetime crystallisation event 4) for the words from “if” to annuity.” “purchased” substitute “if— (7) After paragraph 27F insert— (a) the lifetime annuity or a related dependants’ annuity or a related nominees’ annuity is, or “Successors’ annuity (b) the lifetime annuity and a related dependants’ annuity 27FA (1) For the purposes of this Part an annuity payable are, or to a successor is a successors’ annuity if— (c) the lifetime annuity and a related nominees’ annuity (a) the successor becomes entitled to it on or after 6 April are, or 2015, (d) a related dependants’ annuity and a related nominees’ (b) it is payable by an insurance company, annuity are, or (c) it is payable until the successor’s death or until the (e) the lifetime annuity and a related dependants’ annuity earliest of the successor’s marrying, entering into a and a related nominees’ annuity are, purchased”, civil partnership or dying, (c) in paragraph 14B (event 5C: meaning of “relevant (d) it is purchased after the death of a dependant, nominee two-year period”), and in the italic heading before or successor of the member (“the beneficiary”), that paragraph, for “event 5C” substitute “events 5C (e) it is purchased using undrawn funds, and and 5D”, and (f) the beneficiary dies on or after 3 December 2014. (d) in paragraph 14C(1) (event 5C: meaning of “relevant (2) For the purposes of sub-paragraph (1)(e), sums or unused uncrystallised funds”), and in the italic assets held for the purposes of an arrangement after heading before paragraph 14C, for “event 5C” the beneficiary’s death are undrawn funds if— substitute “events 5C and 5D”. (a) immediately before the beneficiary’s death, they were (16) In section 172(6A)(b) (“benefit” in section 172 includes held for the purposes of the arrangement and, as the rights to payments under certain annuities) after “lifetime case may be, represented (alone or with other sums or annuity or dependants’ annuity” insert “, or nominees’ annuity or assets) the beneficiary’s— successors’ annuity,”. (i) dependant’s flexi-access drawdown fund, (17) Section 172A (surrenders of benefits and rights) is (ii) dependant’s drawdown pension fund, amended as follows. 1249 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1250 Situation Situation (18) In subsection (1)(aa) (surrender of rights to payments “(4B) For the purposes of this Part a nominees’ annuity is under certain annuities triggers operation of subsection (2)) after related to a lifetime annuity payable to a member of a “lifetime annuity or dependants’ annuity” insert “, or nominees’ registered pension scheme— annuity or successors’ annuity,”. (a) if they are purchased either in the form of a joint life (19) In subsection (9A)(b) (references to benefits include annuity or separately in circumstances in which the references to rights to payments under certain annuities) after day on which the one is purchased is no earlier than “lifetime annuity or dependants’ annuity” insert “, or nominees’ seven days before, and no later than seven days after, annuity or successors’ annuity,”. the day on which the other is purchased, and (20) Section 172B (increase of rights of connected person on (b) the nominees’ annuity will be payable to a nominee of death) is amended as follows. the member.” (21) In subsection (2)(aa) (relevant member includes person (34) In sub-paragraph (5) (deductions in calculating applicable who has rights to payments under certain annuities) after amount) after “any related dependants’ annuity”, in both places, “lifetime annuity or dependants’ annuity” insert “, or nominees’ insert “or any related nominees’ annuity”. annuity or successors’ annuity,”. (35) In paragraph 15(2)(a) of Schedule 29 (uncrystallised (22) In subsection (7A) (section does not apply to certain funds lump sum death benefit is sum paid in respect of funds not increases in rights) after “dependants’ annuity”, in both places, spent on certain annuities and other pensions) after “lifetime insert “, nominees’ annuity, successors’ annuity”. annuity,” insert “a nominees’ annuity,”. (23) In subsection (7B)(b) (“benefit” in section 172B includes And it is declared that it is expedient in the public interest that rights to payments under certain annuities) after “lifetime this Resolution should have statutory effect under the provisions annuity or dependants’ annuity” insert “, or nominees’ annuity or of the Provisional Collection of Taxes Act 1968. successors’ annuity,”. (24) In section 273B(1) (power of trustees or managers to make certain payments) after paragraph (f) insert— 21. ENTERPRISE INVESTMENT SCHEME “(fa) paid to purchase a nominees’ annuity, Resolved, (fb) paid to purchase a successors’ annuity,”. That provision may be made about the enterprise (25) Schedule 28 (interpretation of the pension rules and the investment scheme. pension death benefit rules) is amended as follows. (26) In paragraph 3(2B)(a) (power to make regulations about cases where lifetime annuity ceases to be payable by insurance 22. VENTURE CAPITAL TRUSTS company) after “dependants’ annuity” insert “, nominees’ annuity”. Resolved, (27) In paragraph 6(1B)(a) (power to make regulations about That provision may be made about venture capital cases where short-term annuity ceases to be payable by insurance trusts. company) after “dependants’ annuity” insert “, nominees’ annuity”. (28) In paragraph 27E(3) (meaning of “unused drawdown 23. INVESTMENT RELIEFS (SOCIAL funds”)— INVESTMENTS) (a) in paragraph (b), for “derive.” substitute “derive,”, and Resolved, (b) after paragraph (b) (but not as part of it) insert— That provision (including provision having retrospective “and since the member’s death they have not been designated effect) may be made for amending the categories of as available for the payment of dependants’ drawdown excluded activities for the purposes of tax relief for pension, not been designated as available for the social investments. payment of nominees’ drawdown pension, not been applied towards the provision of a dependants’ annuity, not been applied towards the provision of a nominees’ annuity and not been applied towards the provision 24. CHARGEABLE GAINS of a dependants’ scheme pension.” Resolved, (29) In paragraph 27E(4)(b) and (5) (meaning of “unused That provision (including provision having retrospective uncrystallised funds”) after “not been applied towards the effect) may be made amending, or making amendments provision of a dependants’ annuity” insert “, not been applied connected with, the Taxation of Chargeable Gains towards the provision of a nominees’ annuity”. Act 1992. (30) In paragraph 27K(3) (meaning of “unused drawdown funds of the beneficiary’s”)— (a) in paragraph (b) for “derive.” substitute “derive,”, and 25. CAPITAL ALLOWANCES (b) after paragraph (b) (but not as part of it) insert— Resolved, “and since the beneficiary’s death they have not been That provision (including provision having retrospective designated as available for the payment of successors’ effect) may be made about capital allowances. drawdown pension and not been applied towards the provision of a successors’ annuity.” (31) Paragraph 3 of Schedule 29 (interpretation of the lump sum rule: meaning of “the applicable amount”) is amended as 26. ALLOWANCES RELATING TO OIL follows. ACTIVITIES (32) In sub-paragraph (4) (amount applied to purchase certain Resolved, annuities) after “any related dependants’ annuity” insert “and That provision (including provision having retrospective any related nominees’ annuity”. effect) may be made about the allowances that reduce (33) After sub-paragraph (4A) (when a dependants’ annuity is adjusted ring fence profits under Part 8 of the Corporation related to a lifetime annuity) insert— Tax Act 2010. 1251 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1252 Situation Situation 27. ALCOHOLIC LIQUOR DUTIES (RATES) “TABLE 1 Resolved, RATES PAYABLE ON FIRST VEHICLE LICENCE FOR VEHICLE That— (1) The Alcoholic Liquor Duties Act 1979 is amended as CO emissions figure Rate follows. 2 (1) (2) (3) (4) (2) In section 5 (rate of duty on spirits), for “£28.22” substitute Exceeding Not Exceeding Reduced Rate Standard Rate “£27.66”. g/km g/km £ £ (3) In section 36(1AA) (rates of general beer duty)— (a) in paragraph (za) (rate of duty on lower strength beer), for 130 140 120 130 “£8.62” substitute “£8.10”, and 140 150 135 145 (b) in paragraph (a) (standard rate of duty on beer), for 150 165 170 180 “£18.74” substitute “£18.37”. 165 175 285 295 (4) In section 37(4) (rate of high strength beer duty), for 175 185 340 350 “£5.29” substitute “£5.48”. 185 200 480 490 (5) In section 62(1A) (rates of duty on cider)— 200 225 630 640 (a) in paragraph (b) (cider of strength exceeding 7.5% which is 225 255 860 870 not sparkling cider) for “£59.52” substitute “£58.75”, and 255 — 1090 1100 (b) in paragraph (c) (other cider), for “£39.66” substitute TABLE 2 “£38.87”. RATES PAYABLE ON ANY OTHER VEHICLE LICENCE (6) For Part 2 of the table in Schedule 1 substitute— FOR VEHICLE “PART 2

WINE OR MADE-WINE OF A STRENGHT EXCEEDING CO2 emissions figure Rate 22 PER CENT (1) (2) (3) (4) Exceeding Not Exceeding Reduced Rate Standard Rate Description of wine or made-wine Rates of duty per litre of alcohol g/km g/km £ £ in wine or made-wine £ Wine or made-wine of a strength 27.66”. 100 110 10 20 exceeding 22 per cent 110 120 20 30 120 130 100 110 (7) The amendments made by this Resolution come into force on 23 March 2015. 130 140 120 130 And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions CO2 emissions figure Rate of the Provisional Collection of Taxes Act 1968. (1) (2) (3) (4) Exceeding Not Exceeding Reduced Rate Standard Rate 28. TOBACCO PRODUCTS DUTY (RATES) g/km g/km £ £ Resolved, 140 150 135 145 150 165 170 180 That— 165 175 195 205 (1) For the table in Schedule 1 to the Tobacco Products Duty 175 185 215 225 Act 1979 substitute— 185 200 255 265 “TABLE 200 225 280 290 225 255 480 490 1. Cigarettes An amount equal to 16.5 per cent of the retail price plus 255 — 495 505”; £189.49 per thousand cigarettes (b) in the sentence immediately following the tables, for 2. Cigars £236.37 per kilogram paragraphs (a) and (b) substitute— 3. Hand-rolling tobacco £185.74 per kilogram “(a) in column (3), in the last two rows, “280” were 4. Other smoking tobacco and £103.91 per kilogram”. substituted for “480” and “495”, and chewing tobacco (b) in column (4), in the last two rows, “290” were (2) The amendments made by this Resolution come into force at substituted for “490” and “505”.” 6 pm on 18 March 2015. (3) In paragraph 2(1) (VED rates for motorcycles)— And it is declared that it is expedient in the public interest that (a) in paragraph (c), for “£58” substitute “£59”, and this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968. (b) in paragraph (d), for “£80” substitute “£81”. (4) The amendments made by this Resolution have effect in relation to licences taken out on or after 1 April 2015. 30. VEHICLE EXCISE DUTY (RATES FOR LIGHT PASSENGER VEHICLES ETC) And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions Resolved, of the Provisional Collection of Taxes Act 1968. That— (1) Schedule 1 to the Vehicle Excise and Registration Act 1994 31. CLIMATE CHANGE LEVY (RATES) (annual rates of duty) is amended as follows. (2) In paragraph 1B (graduated rates of duty for light Resolved, passenger vehicles)— That provision may be made about the rates of climate change (a) for the tables substitute— levy. 1253 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1254 Situation Situation 32. CLIMATE CHANGE LEVY (COMBINED 34. LANDFILL TAX (MATERIALS CONSISTING HEAT AND POWER STATIONS) OF FINES) Resolved, Resolved, That— That— (1) Schedule 6 to the Finance Act 2000 (climate change levy) is (1) Part 3 of the Finance Act 1996 (landfill tax) is amended as amended as follows. follows. (2) In paragraph 24B (deemed taxable supply: commodities to (2) Section 42 (amount of tax charged on a taxable disposal) is be used in combined heat and power station)— amended as follows. (3) In subsection (2), after “qualifying material” insert “or (a) in sub-paragraph (2), at the end insert “to which qualifying fines”. sub-paragraph (2A) does not apply”, (4) After subsection (3) insert— (b) after that sub-paragraph insert— “(3A) Qualifying fines are a mixture of— “(2A) This sub-paragraph applies to electricity so far as— (a) fines that consist of such qualifying material as is (a) it is included in the CHP Qualifying Power Output of prescribed by order, and the combined heat and power station’s CHPQA (b) fines that consist of material that is not qualifying scheme, and material, that satisfies all the requirements prescribed (b) either condition A or B is met. in an order. (3B) An order under subsection (3A) relating to the (2B) Condition A is that the producer of the electricity mixture of fines may require, in particular— makes no supply of it to another person, but causes it to be consumed in the United Kingdom. (a) that fines that consist of material that is not qualifying material do not exceed a prescribed proportion; (2C) Condition B is that the electricity is supplied (within (b) that the mixture of fines does not include prescribed the meaning of Part 1 of the Electricity Act 1989 (see materials or prescribed descriptions of materials; section 64 of that Act)) by a person who is an exempt unlicensed electricity supplier.”, (c) that the mixture of fines is such that, if subjected to a prescribed test, it would give a prescribed result; (c) in sub-paragraph (3), after “electricity” insert “to (d) that the mixture of fines originates, or does not which sub-paragraph (2A) does not apply”, and originate, in a prescribed way.” (d) for sub-paragraph (7) substitute— (5) In subsection (4)(a), after “listed” insert “or what fines are “(7) For the purposes of this paragraph— to be qualifying fines”. “CHP Qualifying Power Output” has the meaning given (6) In subsection (6), after “listed,” insert “or what fines are to by section 4 of the Combined Heat and Power be qualifying fines,”. Quality Assurance Standard, Issue 5 (November (7) In section 63 (qualifying material: special provisions), after 2013), prepared by the Department of Energy and subsection (4) insert— Climate Change or, if that issue of the Standard has “(4A) Subsections (2) to (4) do not apply where the been replaced by another issue, by the current issue material disposed of consists of qualifying fines.” of the Standard (taking account, in either case, of any amendment which has been made to the issue); (8) After section 63 insert— “63A Qualifying fines: special provisions “CHPQA scheme”, in relation to a combined heat and power station, means the scheme in relation to which (1) This section applies for the purposes of section 42. the station’s CHPQA certificate was issued; (2) An order may provide that fines must not be treated as “CHPQA site”, in relation to a fully exempt combined qualifying fines unless prescribed conditions are met. heat and power station or a partly exempt combined (3) A condition may relate to any matter the Treasury think fit. heat and power station, means the site of the (4) The conditions may include conditions making provision CHPQA scheme.” about— (3) In paragraph 24C (initial determination under paragraph (a) the production of a document which includes a 24B(3) superseded by later determination), in sub-paragraph statement of the nature of the fines; (1)— (b) carrying out a specified test on fines proposed to be (a) in paragraph (a), at the end insert “to which paragraph disposed of as qualifying fines; 24B(2A) does not apply”, and (c) the frequency with which tests are to be carried out on (b) in paragraph (c)(i), after “electricity” insert “to which any fines proposed to be disposed of as qualifying paragraph 24B(2A) does not apply”. fines; (d) the frequency with which tests are to be carried out on (4) In paragraph 62 (tax credits), in sub-paragraph (1)(bb), any fines that come from a particular source and are after “electricity”, in both places, insert “to which paragraph proposed to be disposed of as qualifying fines; 24B(2A) does not apply”. (e) the steps to be taken by operators of landfill sites in (5) The amendments made by this Resolution have effect in relation to persons sending fines to be disposed of as relation to carbon price support rate commodities brought onto, qualifying fines. or arriving at, a CHPQA site of a combined heat and power station in Great Britain on or after 1 April 2015. (5) The conditions may enable provision to be made by notices issued by the Commissioners in accordance with such provision And it is declared that it is expedient in the public interest that as is made in the conditions. this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968. (6) A notice issued as described in subsection (5) may be revoked by a notice issued in the same way. (7) If an order includes provision falling within subsection (4)(b), the Commissioners may direct a person to carry out such 33. LANDFILL TAX (RATES) a test in relation to any fines proposed to be disposed of as Resolved, qualifying fines. That provision may be made about the rates of landfill tax. (8) In this section “specified” means specified in— 1255 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1256 Situation Situation (a) a condition prescribed under subsection (2), or And it is declared that it is expedient in the public interest that (b) a notice issued as described in subsection (5).” this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968. (9) In section 70(1) (interpretation), at the appropriate place insert— ““fines” means particles produced by a waste treatment 35. VALUE ADDED TAX (REFUNDS TO process that involves an element of mechanical treatment;”. CERTAIN CHARITIES) (10) In section 71 (orders and regulations), subsection (7) is Resolved, amended as follows. That provision may be made for refunding value added tax (11) After paragraph (a) insert— to— “(aa) an order under section 42(3A) providing for fines (a) charities that provide palliative care to people with a which would otherwise be qualifying fines not to be terminal illness, qualifying fines;”. (b) charities that provide air ambulance services, (12) After paragraph (c) insert— (c) charities whose activities relate to searching for, and “(cza) an order under section 63A(2) other than one which rescuing, people who are, or may be, at risk of death provides only that an earlier order under section 63A(2) or serious injury, and is not to apply to fines;”. (d) charities whose activities relate to the transportation of (13) Schedule 5 (provision about information etc) is amended items intended for use for medical purposes. as follows. (14) In the heading to Part 1, after “Information” insert “and 36. VALUE ADDED TAX (REFUNDS TO samples”. STRATEGIC HIGHWAYS COMPANIES) (15) After paragraph 2A insert— Resolved, “Information qualifying fines That provision may be made for refunding value added tax to 2B (1) Regulations may make provision about giving the strategic highways companies. Commissioners information about fines proposed to be disposed of, or disposed of, as qualifying fines. (2) Regulations under this paragraph may require a person 37. ANNUAL TAX ON ENVELOPED DWELLINGS to notify the Commissioners if the result of a test (ANNUAL CHARGEABLE AMOUNTS) carried out on fines indicates that the fines are not Resolved, qualifying fines. That— Samples: qualifying fines (1) In section 99 of the Finance Act 2013 (amount of tax 2C (1) Regulations may require persons— chargeable), in the table in subsection (4), for the last four entries (a) where a sample is taken from a quantity of fines in substitute— order to carry out a test on the fines, to retain a prescribed amount of that sample; “£23,350 More than £2 million but not (b) to preserve fines retained under paragraph (a) for such more than £5 million. period not exceeding three months as may be £54,450 More than £5 million but not specified in the regulations. more than £10 million. (2) A duty under regulations under this paragraph to £109,050 More than £10 million but not preserve fines may be discharged by taking such steps more than £20 million. to preserve them as the Commissioners may specify £218,200 More than £20 million.” in writing.” (16) In paragraph 10 (power to take samples), after (2) The amendment made by this Resolution has effect for the sub-paragraph (1) insert— chargeable period beginning on 1 April 2015 and, subject to section 101 of the Finance Act 2013, for subsequent chargeable “(1A) An authorised person, if it appears to the person periods. necessary for the protection of the revenue against mistake or fraud, may at any time take, from material (3) Section 101(1) of the Finance Act 2013 does not apply in which the person has reasonable cause to believe is an relation to the chargeable period beginning on 1 April 2015. amount of fines retained under paragraph 2C(1)(a), (4) Accordingly, the Treasury is not required to make an order such samples as the person may require with a view under section 101(5) of the Finance Act 2013 in respect of that to determining how the fines tested ought to be or to period. have been treated for the purposes of tax.” And it is declared that it is expedient in the public interest that (17) In paragraph 12 (information)— this Resolution should have statutory effect under the provisions (a) in sub-paragraph (1)(b), after “2” insert “or 2A”; of the Provisional Collection of Taxes Act 1968. (b) in sub-paragraph (3), for the words from “who” to “liable” substitute “who— 38. ANNUAL TAX ON ENVELOPED DWELLINGS (a) fails to preserve records in compliance with any (5-YEARLY VALUATIONS) provision of regulations made under paragraph 2 (read with that paragraph and any direction given Resolved, under the regulations), or That provision may be made amending section 102 of the (b) fails to preserve records in compliance with any Finance Act 2013. provision of regulations made under paragraph 2A (read with that paragraph and any direction given under the regulations), 39. ANNUAL TAX ON ENVELOPED DWELLINGS is liable”. (INTERESTS HELD BY CONNECTED PERSONS) (18) The amendments made by this Resolution have effect in Resolved, relation to disposals that are— That— (a) made in England and Wales or Northern Ireland, and (1) Section 110 of the Finance Act 2013 (interests held by (b) made (or treated as made) on or after 1 April 2015. connected persons) is amended as follows. 1257 Budget Resolutions and Economic 23 MARCH 2015 Budget Resolutions and Economic 1258 Situation Situation (2) In subsection (1), after “If on any day” insert “(“the (c) provision for corporation tax to be charged for the relevant day”)”. financial year 2016, (3) In subsection (2)— (d) provision about the tax treatment of certain employment- (a) omit “on the day in question”; related expenses and benefits, (b) after “P’s single dwelling interest” insert “on the (e) provision amending the description of vehicles which are relevant day”; exempt vehicles for the purposes of the Vehicle Excise and (c) for “£500,000” substitute “£250,000”. Registration Act 1994, (4) After subsection (2) insert— (f) provision about the rates of climate change levy, “(2A) Subsection (2B) applies in any case where— (g) provision about the rates of landfill tax, and (a) C would (without subsection (2B)) be treated, as a (h) provision about the taxable value of single-dwelling result of subsection (1) (read with section 109), as interests for the purposes of the annual tax on enveloped entitled to a single-dwelling interest with a taxable dwellings. value (on the relevant day) of more than £2 million, but (b) C would not be so treated if the value specified in PROCEDURE (TELEVISION TAX RELIEF) subsection (2) were £500,000 (instead of £250,000). Resolved, (2B) Subsection (2) has effect as if the value specified in it were That, notwithstanding anything to the contrary in the practice £500,000 (instead of £250,000).” of the House relating to the matters that may be included in (5) The amendments made by this Resolution have effect in Finance Bills, any Finance Bill of the present Session may contain relation to chargeable periods beginning on or after 1 April 2015. provision for tax credits to be paid to television production companies in respect of expenditure or losses on television production And it is declared that it is expedient in the public interest that activities in connection with further descriptions of programmes. this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968. PROCEDURE (WHOLESALERS OF ALCOHOL) 40. BANK LEVY (RATES) Resolved, Resolved, That, notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in That provision may be made about the rates of the bank levy. Finance Bills, any Finance Bill of the present Session may make provision for the approval and registration of wholesalers of 41. DIVERTED PROFITS TAX alcohol. Resolved, That provision may be made for and in connection with the PROCEDURE (COUNTRY-BY-COUNTRY imposition of a new tax on profits arising to a company. REPORTING) Resolved, 42. ACCELERATED PAYMENTS That, notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Resolved, Finance Bills, any Finance Bill of the present Session may contain That provision may be made amending Part 4 of the Finance provision enabling the implementation of the guidance on country- Act 2014. by-country reporting contained in the OECD’s Guidance on Transfer Pricing Documentation and Country-by-Country Reporting, published in 2014 (or any other document replacing that Guidance). 43. RELIEF FROM TAX (INCIDENTAL AND CONSEQUENTIAL CHARGES) FINANCE (MONEY) Resolved, Queen’s recommendation signified. That it is expedient to authorise any incidental or consequential charges to any duty or tax (including charges having retrospective Resolved, effect) that may arise from provisions designed in general to That, for the purposes of any Act of the present Session afford relief from taxation. relating to finance, it is expedient to authorise— (a) the payment out of money provided by Parliament of Mr Speaker: With the leave of the House I will put expenditure incurred by the Commissioners for Her Majesty’s the four procedure motions together. The House will be Revenue and Customs in connection with the approval and intimately conscious that I am referring to the motions registration of wholesalers of alcohol, and on future taxation, television tax relief, wholesalers of (b) the payment out of the National Loans Fund or the alcohol and country-by-country reporting referred to Consolidated Fund of sums required to redeem, or to meet on page 21 of the Budget resolutions. expenses incurred in connection with the redemption of, government stock.

PROCEDURE (FUTURE TAXATION) Resolved, FINANCE (MONEY) That, notwithstanding anything to the contrary in the practice Queen’s recommendation signified. of the House relating to the matters that may be included in Resolved, Finance Bills, any Finance Bill of the present Session may contain That, for the purposes of any Act of the present Session the following provisions taking effect in a future year— relating to finance, it is expedient to authorise— (a) provision about the basic rate limit for the purposes of (a) the payment our of money provided by Parliament of income tax, expenditure incurred by the Commissioners for Her Majesty’s (b) provision about personal allowances for the purposes of Revenue and Customs in connection with the approval and income tax, registration of wholesalers of alcohol, and 1259 23 MARCH 2015 1260

(b) the payment out of the National Loans Fund or the 1915 Armenian Genocide Consolidated Fund of sums required to redeem, or to meet expenses incurred in connection with the redemption of, government Motion made, and Question proposed, That this House stock. do now adjourn.—(Mr Wallace.) Ordered, That a Bill be brought in upon the foregoing Resolutions; 10.44 pm That the Chairman of Ways and Means, the Prime Stephen Pound (Ealing North) (Lab): I am glad that Minister, the Deputy Prime Minister, Mr Chancellor of Members have decided not to leave the Chamber. The the Exchequer, Secretary Vince Cable, Secretary Iain subject of this Adjournment debate is the commemoration Duncan Smith, Secretary Eric Pickles, Danny Alexander, of one of the most appalling, heinous acts that has ever Priti Patel, Andrea Leadsom and Mr David Gauke been committed on this earth: the Armenian genocide bring in the Bill. of 23 and 24 April 1915. May I at the outset put one thing firmly on the FINANCE BILL record? What I have to say tonight is not an attack on Presentation and First Reading the Government of Turkey. I am not criticising the Mr David Gauke accordingly presented a Bill to Government of Turkey. I realise that these debates grant certain duties, to alter other duties and to amend frequently engender much heat and very little light in the law relating to the National Debt and the Public Ankara, but I am talking specifically of the actions of Revenue, and to make further provision in connection the Ottoman empire and particularly the Young Turks, with finance. whom I will mention later, in 1915. Bill read the First time; to be read a Second time I make no apologies for raising this matter. Not only tomorrow, and to be printed (Bill ??) with explanatory are we approaching the 100th anniversary of this appalling notes (Bill 193-EN). crime against humanity, in which 1.5 million people were killed in the most horrendous circumstances and Business without Debate an attempt was made to destroy an entire people—their culture, nationhood and very being and existence. This is also a time when two books have just been published. BUSINESS OF THE HOUSE The first, “An Inconvenient Genocide” by Geoffrey Ordered, Robertson, once and for all proves to those gainsayers That, in respect of the Finance (No.2) Bill, notices of Amendments, who are still out there that the genocide was real and new Clauses and new Schedules to be moved in Committee may that it did happen: the dates, names and times are be accepted by the Clerks at the Table before the Bill has been provided. The other excellent book is “The Fall of the read a second time.—(Mr Wallace.) Ottomans” by Eugene Rogan, which contains a chapter on the annihilation of the Armenians. It is otiose even to ask the question, “Was there genocide?” Yet the question has been asked many times. People have said there was no genocide in 1915, but to a certain extent that was not the only genocide. The Armenians—a people of incredible, intense culture and great sophistication—were assaulted between 1894 and 1896, when 200,000 people were killed. There was the Adana massacre of 1909, in which 20,000 to 30,000 people were killed. In particular, leading up to 1915, after the 1912 Balkan wars, refugees from the Caucasus and Rumelia—they were known as muhacirs—moved from the south Balkans and the Caucasus into Anatolia. That movement into the traditional Armenian land, coupled with the aftermath of the battle of Sarikamish— which took place on 24 December 1914, when the Russians defeated the Ottoman army—led to a completely different situation whereby the peaceful Armenian people suddenly found themselves between different warring factions: on the one hand the Ottoman empire, and on the other people moving into their land, so they were dispossessed. The then War Minister, Enver Pasha, demobilised all Armenians from the army—many of them fought in the Ottoman army—into labour battalions, and the infamous tehcir law, which is known as the deportation law, was passed by Talaat Pasha, the Interior Minister. At that particular time, the YoungTurks had arrived—the Committee of Union and Progress as they were known— and the massacre commenced in Istanbul on the night of 23 April. It is impossible to imagine what it must have been like. Anatolia––western Armenia––was a peaceful country in which the Armenians had succeeded greatly. 1261 1915 Armenian Genocide23 MARCH 2015 1915 Armenian Genocide 1262

They had filled many posts, not just in the army, but in “it is not appropriate for the UK Government to use the term medicine and law. They were a peaceful and prosperous genocide”. people. Just as the upper echelon of Poles at Katyn were However, the briefing states: massacred, similarly the upper echelon of Armenians “The British Government recognises that terrible suffering was were taken to slaughter. inflicted on Armenians living in the Ottoman Empire…and we Did it happen? There were so many eyewitnesses must ensure that the victims of that suffering are not forgotten.” there at the time. American Ambassador Morgenthau I am torn between admiration of the honesty of the gave a detailed account, and Father Grigoris Balakian, ministerial officials and slight horror, because the middle who survived and was in Istanbul when the entente paragraphs are entitled “Bear Traps”—things to watch fleets finally sailed in at the end of the war, gave an out for. It goes on to say what would happen to Anglo- incredible amount of detail. Above all, one of the Turkish relations if the British Government agreed to reasons why we in this House can discuss this matter the term, and it talks about early-day motion 357 and and know about it is the single, definitive volume describing various other debates. the horror of the genocide, namely the famous “Blue The crux of the reason why the Government would Book” by Lord Bryce and Arnold Toynbee. not agree to recognition is that in one debate—I have had three debates on this subject—the then Foreign Jim Shannon (Strangford) (DUP): Obviously, this is Office Minister Geoffrey Hoon said that we could not an important issue for us as parliamentarians. Does the call it the Armenian “genocide” because Raphael Lemkin hon. Gentleman agree that it is past time that the did not invent the word until 1944 or 1945. Let us think Turkish Government not only admitted to the historical about that for a minute. When Cain killed Abel, there genocide of 1.5 million Armenians, but apologised for was no word for fratricide, but Abel was just as dead as the most horrific atrocities they carried out at the time? if there had been such a word. Raphael Lemkin was We cannot ignore the fact that the Turkish Government present in Berlin at the trial of Soghomon Tehlirian, have to apologise for that. one of the members of the Armenian Revolutionary Federation who was part of the Nemesis group that Stephen Pound: I am grateful to the hon. Gentleman assassinated 10 of the 18 perpetrators of the genocide for his intervention, but I am reluctant to go entirely indicted in the military tribunal in Istanbul at the end of down that route. Obviously the Turkish Government the first world war, in what most people think was an should do so, but today I am talking about the attempt to minimise the impact of the treaty of Versailles. commemoration in this House, particularly as we approach Raphael Lemkin, who is accepted as the originator of 24 April. I cannot disagree with him—I surprise myself the word, said that it was his experience of that trial, at how seldom I disagree with him—but we should listening to the evidence of the genocide of the Armenian concentrate on the subject at issue. people, that made him use it. The assassination of One and a half million people were driven to die in Talaat Pasha in Berlin in 1921 clearly precedes the use the burning sands of the Syrian desert in a death march of the word “genocide”, but the same person—the man to two concentration camps, in which the men were who coined the word—was actually at that trial and killed first. The then Interior Minister said, “Kill the referred to it. men, the women and all the children up to the height of We are not entirely sure how many, but 20 or 22 national my knee.” If that is not genocide, I really do not know Parliaments have recognised the Armenian genocide, what is. In Trabzon—or Trebizond—14,000 were killed. including the devolved Assemblies in Scotland, Wales Many of them were put into boats, which were dragged and—I am delighted to say—Northern Ireland. No one into the Black sea and sunk. People were injected with who visits the Genocide museum in Yerevan and sees typhoid or morphine. Experiments took place on children testimony from all around the world, photographs, in a way that presages what happened under the Nazis. cards, letters and books can remain unmoved. No one Incidentally, what happened in Trebizond was witnessed can deny for a moment that something horrible and by the Italian consul general, Gorrini, who started out terrible beyond human imagination took place in western being sceptical, but ended up as horrified as every other Armenia at that time. civilised person. Genocide is a crime that is intended to destroy a It happened: it is incontrovertible that it happened. It people. Genocide denial is a crime that is intended to happened within the memory of some people still living. destroy a people’s memory. The Armenian people will Their grandparents and their great-grandparents died: not have their memory, their culture, their individuality, their bones are still there in the Syrian desert, and their their strength or their national pride destroyed. Many homes are still there in Anatolia, no longer occupied, people have tried; none have ever succeeded, nor ever although their Christian churches have been destroyed. will they. Think of the double agony of those people It is within living memory, so why are we not recognising whose families were massacred, whose culture was it? destroyed, whose homelands have been taken over and One of the joys of the Freedom of Information Act is who are now having that very act denied. That, for me, that we can get hold of copies of confidential briefings is the supreme double cruelty. from the south Caucasus team. Last time this issue was The British Government will be represented in Gallipoli raised by Baroness Cox, that indefatigable friend of on 24 April. By coincidence—I make no comment Armenia—she has visited Nagorno-Karabakh some about that—that is the same day as the international 70 times, not always in a combat role, but frequently recognition of the Armenian genocide. The Gallipoli under fire—she had a debate on 29 March 2010, and I landing is often prayed in aid by those who apologise have been provided with the document, although it is for the Ottoman empire of the time. They say that the partly redacted. The Foreign and Commonwealth Office Gallipoli landing somehow stimulated the action of the position at the time was that Young Turks, who were terrified that some Armenian 1263 1915 Armenian Genocide23 MARCH 2015 1915 Armenian Genocide 1264

[Stephen Pound] the right to our respect and friendship through their contribution to our society. We have an opportunity to fifth column would arise and attack Turkey with the do the right thing not just for the sake of Armenia and Russians. In reality, as we all know, the massacre that the Armenian people, but for the sake of humanity. started the great genocide took place on the night Humanity really needs to recognise what happened in before. To suggest that moving the commemoration of 1915. As long as it is denied, it can happen again. As Gallipoli to the same day, 24 April, as the Turks have long as we say, “It didn’t happen”, we echo the terrible done, is anything other than a provocative act is pushing words that everybody remembers from Hitler in 1939, credulity. when he justified the invasion of Poland by saying, Will the British Government be present? President “Who now remembers the annihilation of the Armenians?” Putin will be there. Francois Hollande will be there. I I think that all decent people, all human beings, have heard that a distinguished colleague of mine, although recognise and remember the annihilation of the Armenians, he might not be from my side of the Chamber, will be and I hope that we are all determined to recognise it and there. I admire that, I respect that and I am proud of ensure that it never happens again. I say to my Armenian that. We will hear from him later. Can we not go the friends, fellow citizens and Armenian brothers and sisters: extra mile? Can we not finally give support and succour we thank you for all you have done for this country, and to the Armenian people whose relatives died? Can we this is our small way of returning that thanks. not say to the Armenian community in this country—one of the most peaceful, law-abiding, hard-working, decent communities that we are proud to have in our country—that 11 pm we, along with 22 other countries of the world, recognise Mr John Whittingdale (Maldon) (Con): I congratulate the genocide that took place? Edinburgh has recognised the hon. Member for Ealing North (Stephen Pound) on it. Many councils have recognised it. Even my own little obtaining this debate and putting with his customary borough of Ealing has done so. We have a strong eloquence the case for why it is important that we in this Armenian apricot tree growing in Ealing soil—British House remember what was one of the first great crimes soil—in commemoration of that event. I would like to of the 20th century. He has worked on behalf of his see a memorial garden in Ealing. constituents from Armenia and the Armenian community I would like to see wider recognition. Is that not fair generally for a long time, and it was a pleasure to be in when a people have suffered, as have the Armenian Yerevan with him just over a year ago. people? In many cases, they have suffered in silence. We It is entirely right that we in this House mark the do not see huge marches through the city or massive centenary of the Armenian genocide. We have protests. The Armenian people are a dignified people. commemorated other genocides here, such as those that The people of Armenian descent in our country concentrate took place in the Balkans and in Rwanda and, of on hard work, on achievement and on preserving their course, the holocaust. As the hon. Gentleman said, the dignity, but they also keep their culture. They have term “genocide”was originally coined by Raphael Lemkin integrated, but they have not been assimilated. To be who, when he came to describe what had happened to Armenian is to be a good citizen, but it is also to be his own people—the Jewish people—initially had the different. That unique, special Armenian quality is worthy experience of hearing about the massacre of the Armenians, of a little recognition. which undoubtedly influenced him. Can we not finally say it in this House—maybe not The hon. Gentleman made a strong case, and I concur tonight, maybe not even before the election, but some that we should use the term “genocide” to describe what time soon? For years it has been our policy to deny that was clearly a deliberate attempt to kill an entire people. the Armenian genocide took place, and yet we have the In a sense, whether we use that word or not there is no FCO briefing here that talks about the suffering of the question but that the massacre of more than 1 million Armenian people. Would it hurt so much? Are we not people—perhaps 1.5 million Armenians who were either straining at the gnat here? Could we not go that last massacred or starved to death—was a horrendous crime. little bit and say, “Yes, it happened.”? Then, hopefully, Both he and I have visited the memorial to the genocide the wave of global condemnation would wash up even in Yerevan and the museum, and anybody who goes across the battlements in Ankara and the Turkish there can be left in no doubt of the true horror of what Government would admit that their predecessors, the occurred. The evidence is overwhelming. Those who try Ottoman Government back in 1915, did commit appalling to dismiss it cannot argue with the records, photographs crimes. and accounts of witnesses, both Armenian and I was in this House, as were you, Mr Speaker, when international, not least those from this country whose the then Prime Minister, Mr Blair, apologised for the testimony is perhaps among the most powerful. As a Irish famine of 1848. He apologised on behalf of this result, it is important that we remember what happened, country for an appalling act that was horrendous in its and renew our determination to ensure that that kind of brutality and in its impact on the Irish people. He felt event never happens again. justified in apologising for that. Some people said that The hon. Gentleman is right to say that this is not he should not have done so. I think that he did so about apportioning blame, certainly not to the present because this country was very much a part of that Turkish Government, and I welcome the fact that the process. I think that Mr Blair did the right thing in Prime Minister of Turkey talked about the shared pain apologising. and offered his condolences a year ago. I hope that that We have an opportunity tonight to do the right thing, provides an opportunity to try to build reconciliation and not just by our Armenian friends, our Armenian between Armenia and Turkey, and to normalise relations brothers and sisters, our Armenian community, our and perhaps in due course to re-open the border between Armenian fellow citizens—those people who have earned those two countries. I hope that can still be achieved. 1265 1915 Armenian Genocide23 MARCH 2015 1915 Armenian Genocide 1266

I was very struck by a speech that I heard not long those who had suffered. As has been said, in this ago by the former Prime Minister of Armenia and centenary year my hon. Friend the Member for Maldon, Armenian ambassador to this country, Dr Armen as chair of the British-Armenian all-party group, and Sarkissian. He said that of course we should remember our ambassador to Yerevan will be present at the Armenian what occurred and commemorate the loss of life, but Government’s commemorations on 24 April in the that more importantly it is an opportunity to celebrate Armenian capital. the survival of a great people and a great country. I am As discussed in today’s debate, for this country and delighted that we have had the chance this evening to the Commonwealth the dates of 24 and 25 April have put that on record in this place, and in four weeks’ time great significance for an additional reason, as the days I shall be honoured to pay my own tribute in Yerevan to we remember the centenary of the allied landings at those who died. Gallipoli. On 24 April, His Royal Highness the Prince of Wales will attend a ceremony in Gallipoli to honour 11.4 pm the memory of all those who died during the campaign, including soldiers from Britain, Ireland, France, Australia, The Minister for Europe (Mr David Lidington): I New Zealand, the Indian subcontinent, Canada and Sri congratulate the hon. Member for Ealing North (Stephen Lanka, as well as the Ottoman soldiers who died defending Pound) on securing the debate. I pay tribute to the the peninsula. Those sombre commemorations in both moving way in which both he and my hon. Friend the Gallipoli and Yerevan should be used to honour the Member for Maldon (Mr Whittingdale) spoke about memory of those who lost their lives, whether soldiers the tragedy that befell the Armenian people just over or civilians, and to reflect carefully on the painful 100 years ago. lessons we have learnt from history and how to prevent It was on 24 April 1915 that about 250 leading such events from happening again. members of the Armenian community in Istanbul were The hon. Member for Ealing North asked me a direct arrested. This marked the beginning of a campaign of question about the Government’s policy on the recognition forced deportations directed against the Ottoman Armenian of the events in Armenia as a genocide. I have to say to community. From 1915 to 1916 during the course of the him that the Government’s policy, indeed the policy of deportations to the Syrian desert, it is estimated that successive Governments, has not changed since 1988 well over 1 million Ottoman Armenians lost their lives when this matter was reviewed. We take the view that as a result of massacres by soldiers or irregulars, forced genocide is not simply an expression of a political marches, starvation and disease. A number of other judgment. It is now a crime, and the British Government minorities, such as the Assyrians, also suffered. recognise as genocide only those events found to be so The British Government of that time robustly condemned by international courts—for example, the holocaust the forced deportations, massacres and other crimes. and the massacres in Srebrenica and Rwanda. We do We continue to endorse that view. British charities, as not exercise a political judgment in ascribing the term we look back, played a major part then in humanitarian “genocide” to a set of events, whether in Armenia, the relief operations. The deaths of more than 1 million Holodomor in Ukraine or the massacres of the Kurds Armenians in the Ottoman empire was an appalling by Saddam Hussein in 1998. civilian loss of life against the backdrop of the first In honouring and reflecting upon the past, it is vital world war, a conflict which itself broke new ground in that we look to the future. The peoples and Governments developing international warfare on an industrial scale. of Turkey and Armenia need to find a way to face their Today, the centenary of those terrible events has huge joint history together and forge a new, more constructive significance, as the hon. Member for Ealing North said, relationship, and part of the role the UK seeks for itself for the people of Armenia and for the worldwide Armenian is to support them in finding this path forward. I will diaspora. As an inseparable part of the tragedy of first not pretend that we from London can provide instant world war, it is entirely appropriate that we in this answers, but we are doing what we can practically to country include this tragedy in our remembrance of the foster people-to-people exchanges and links between first world war to honour the dead, and to draw lessons the two countries to break down stereotypes and barriers. from history and hope for a better future. The British For example, we have just completed a successful exchange Government’s commemorations this year have focused of Turkish and Armenian Chevening alumni who visited on how the first world war shaped society and touched each other’s countries for the first time. lives and communities. The deportation and massacres Ultimately, the Governments of Armenia and Turkey of the Ottoman Armenians, and the role played by the must take the lead in forging and delivering that new UK and other allies in reporting the atrocities and relationship. For that reason, the UK Government strongly helping the survivors, are an indivisible part of that supported the imaginative diplomacy that led to the story. The events and commemorative activities, which Turkish-Armenia protocols in 2009. The protocols envisaged the Armenian community in the UK will organise on opening the border and initiating diplomatic relations 24 April and over the course of this year, will help to without any preconditions, and it is a matter of great illuminate further that period of history for British regret that the ratification process for those protocols people, some of whom may be hearing about it for the has not moved forward. I hope that both sides will first time. continue to consider creative ways to re-set their relations The appalling nature of the events of 1915-16 were and open up new channels for dialogue and co-operation. brought home vividly to me when I visited the This year, we will reflect with sadness on the nature Tsitsernakaberd memorial museum in Yerevan during and horrific scale of the deportations, massacres and my first ministerial visit to Armenia in 2012. When I other crimes in 1915-16 and on the importance of this went back to Armenia last year, I laid a wreath at the centenary for Armenia and Armenians worldwide, but memorial to pay my respects to those who had died and we will also renew our commitment this year to promote 1267 1915 Armenian Genocide23 MARCH 2015 1915 Armenian Genocide 1268

[Mr David Lidington] that we need that recognition now so as to avoid such a situation in the future? I am not criticising Turkey. I am reconciliation between Armenia and Turkey. A genuine talking about the Ottoman empire. step forward along that path to reconciliation would take us towards a more peaceful and secure future for Mr Lidington: I hesitate to get into a legal dispute everyone living in the region. I continue to hope that with the hon. Gentleman, but we take the view, as have both Turkey and Armenia can find a way to look successive British Governments, that international law, together towards a brighter future. including the 1948 protocol on genocide, is not retroactive, and that is part of the explanation for our position. Stephen Pound: I have immense respect for the right That is not to detract from the horror of what took hon. Gentleman—he and I have met the President of place 100 years ago, or to suggest that we will draw back Armenia, and I entirely respect his position—but from our commitment to seek the reconciliation of the immediately after the genocide, the British Navy took peoples of Turkey and Armenia and to strive as hard as 50 of the worst suspects from the Young Turks to Malta we can to bring about that much desired outcome. to try them because it recognised that what had happened Question put and agreed to. was against civilisation. There was not sufficient legislation at the time for the trial to take place so the British took 11.14 pm them back—probably rightly so—but does he not agree House adjourned. 1269 23 MARCH 2015 Mr Speaker’s Ruling 1270

Mr Speaker’s Ruling status as Ministers of the Crown in the course of the (Presentation of Public Petitions House’s proceedings––this would introduce a degree of uncertainty and ambiguity which would be injurious to by Ministers) the clarity of its proceedings. The following Private Ruling given by Mr Speaker is The specific question has been raised with me whether published in accordance with the Speaker’s undertaking a Minister can present a public petition on the Floor of of 5 November 1981 (Official Report, c. 113) the House. The Government cannot present a petition, When a Member of the House accepts appointment and a Minister cannot act as a private Member. I have as a Minister of the Crown, he or she accedes to the therefore ruled that a Minister cannot present a public convention on collective responsibility. petition on the Floor of the House. The procedures of the House depend on its being Ministers are, however, free to present a public petition able to rely on the presumption that whenever a Minister informally (that is, by depositing it in the petitions bag speaks or acts in the course of its proceedings, he or she at any time at which the House is sitting), but the Votes does so on behalf of Her Majesty’s Government. Ministers and Proceedings will not in such cases identify the cannot choose to assume or divest themselves of their Member who deposited the petition.

377WH 23 MARCH 2015 Nurses and Midwives: Fees 378WH

not make money. The question is whether they get value Westminster Hall for money. I am pleased that my hon. Friend the Member for Easington (Grahame M. Morris) is here, and I hope Monday 23 March 2015 that he will talk about the findings of the Select Committee on Health, which published a report a couple of years ago that was—to put it mildly—quite critical of the [MR DAI HAVARD in the Chair] NMC. I will provide some background about what the NMC Nurses and Midwives: Fees stands for, what its objectives are and why it proposed a fee increase. I will explain why the NMC fee increase 4.30 pm was so strongly opposed by the overwhelming majority of nurses and midwives. The reasons for that opposition Mr David Anderson (Blaydon) (Lab): I beg to move, included the NMC’s historically poor financial oversight That this House has considered the e-petition relating to and management, which was highlighted in a damning proposed increase in fees for nurses and midwives. report by the Council for Healthcare Regulatory Excellence It is a great privilege to serve under your chairmanship in July 2012. The council criticised the NMC’s lack of today, Mr Havard. I thank hon. Members for coming to focus on preventive measures to reduce fitness-to-practise this serious debate, and I thank my colleagues on the referrals, the real-terms pay cut imposed by the coalition Backbench Business Committee for agreeing to it. I also Government on hard-working nurses and midwives and thank the various trade unions and representative the catastrophic impact that a fee increase would have organisations in the national health service that have on workplace planning. Finally, I will talk about the provided support and given me background material impact of future fee increases on nurses and midwives for the debate. and on the care that patients will receive. I start by reading out the petition and thanking Despite heavy opposition from professional bodies Mr Stephen Iwasyk and the other 113,795 people who and trade unions representing registrants’ views, the signed it, demonstrating their interest and concern about NMC chose to increase fees, effective from the end of this vital issue. The petition states: last month. I want to talk about how fees could be “We would like the Government to Review the Nursing and reduced, which comes back to the point made by the Midwifery Council (NMC) with regard to the fees charged to hon. Member for South Down (Ms Ritchie). registered nurses and midwives, and the processes through which those fees are decided. The Nursing and Midwifery Council (NMC) recently discussed a further increase in registration fees Grahame M. Morris (Easington) (Lab): I congratulate for Nurses and Midwives from £100 to £120. The fees were my hon. Friend on securing the debate, and I congratulate increased 2 years ago from 76 to 100 following a consultation that those who supported the petition. Does he agree that was overwhelmingly against the rise. The NMC are, of course, one of the fundamental problems is that the Nursing obliged to consult before any further rise. However 96%+ of and Midwifery Council is spending a disproportionate individuals voted against the rise last time. The Health Committee in their report earlier that year said ‘We would urge the NMC to amount of its budget—about 75%—on 1% of the register avoid further fee rises and to consider fee reductions for new through the fitness-to-practise cases? There must be a entrants to the register.’ Approximately 670,000+ Nurses and more cost-effective way for it to carry out its obligations. Midwives contribute £67+ Million annually to the NMC. Please sign the petition to encourage a review of the NMC and the charging of annual fees to Nurses and Midwives.” Mr Anderson: That is the core of the debate. I am I am grateful for the opportunity to debate an important concerned about the fact that more and more cases are issue that faces many of our constituents who are being referred. It appears that there has been a failure nurses and midwives. The petition, which had reached on the part of hospital management or health management 113,796 signatures by the time it closed in February, in general, who are, in some cases, referring nurses and relates to the proposal of the Nursing and Midwifery midwives to the NMC instead of using their own Council to increase registration fees for all 670,000 disciplinary procedures. They are giving away their nurses and midwives by almost 60% in two years. The responsibilities, and in doing so they are adding to the e-petition opposed the proposed fee increase and called cost and the workload of the NMC, which should be for a general review of the NMC, and a review of the dealing with other issues of equal importance. charging of annual fees to nurses and midwives. Believe it or not, the NMC is the world’s largest regulator, with 670,000 nurses and midwives on its Ms Margaret Ritchie (South Down) (SDLP): I register. It is in the unique position of having a guaranteed congratulate my hon. Friend on securing the debate. income of £71 million a year. What other business or Does he agree that there is an urgent need for the organisation has such a luxury nowadays? The NMC’s Government to enter discussions with the Nursing and primary purpose is to protect patients and the public in Midwifery Council with a view to reducing fees, in the UK through effective and proportionate regulation order to sustain the profession and keep people in it? of nurses and midwives. It is required to set and promote standards of education and practice, maintain a register Mr Anderson: That is absolutely what the debate is of people who meet those standards, and take action about. I will point out some glaring worries that have when a nurse or midwife’s fitness to practise is called been described to me about the capability and the into question. By doing so, the NMC seeks to promote effectiveness of the NMC. It is not that people do not public confidence in nurses and midwives, and in the want to pay a subscription fee; people are forced to pay regulation thereof. However, the fee rise has done little a fee to be registered, and if they do not pay it, they or nothing to raise the confidence of the nurses and cannot work. If they cannot work, obviously, they will midwives whom the NMC regulates. Many, including 379WH Nurses and Midwives: Fees23 MARCH 2015 Nurses and Midwives: Fees 380WH

[Mr Anderson] Nurses lose at every level through the way in which the system is run. The review was not just about people some in my own constituency, feel that when they saying, “Please don’t make me pay more money”; it was voiced their opposition to the fee increase, they were about, “Can we have a root and branch investigation opposed or—even more worryingly—completely ignored. into how this organisation is run? Can we make it run For a nurse or midwife to practise in the UK, they better? Can we make it run in everyone’s interest?” must be on the register. They have no choice. It is illegal to work as a nurse or a midwife in the UK without Grahame M. Morris: There is a valid point about being on the NMC’s register. To join and to stay on the nurses and midwives who are returners and working NMC’s register, all nurses and midwives must pay the part time. This burden is falling on the profession at a annual registration fee. time when wages have been cut in real terms by between 8% and 10% over the past five years because of the Ann McKechin (Glasgow North) (Lab): I congratulate Government’s failure to implement the recommendations my hon. Friend on securing the debate, especially as I of the pay review body. This is a double travesty. tried for about three months last year to secure a debate on this subject. Does he agree that, particularly given Mr Anderson: My hon. Friend is right. He will not be the 60% increase in the fee over the past few years, the surprised to learn that I share his view. The Government fact that there is no fee reduction for nurses and midwives are treating nurses and other public sector workers who work part time is becoming a much greater concern appallingly. At the same time as saying, “We will give and is discouraging people from coming back to work you no pay rise,” the Government are saying, “We want part time? 60% more off you, and if you don’t pay it, you won’t be able to work.” As my hon. Friend the Member for Mr Anderson: That is central to the discussion. I have Mansfield (Sir Alan Meale) said, these people are being been struck by the fact that nurses who are relatively pole-axed. well paid and work full time will have to pay exactly the To join and stay on the register, all nurses and midwives same registration fee as those who work short hours. must pay the annual registration fee. The fee is tied to That may make things quite comfortable for the NMC’s their employment contract, which often stipulates that bureaucracy, because the organisation will know exactly anyone who fails to pay the fee will face disciplinary how much money it will have, but it does nothing for action by their employer and a temporary lapse from people who are worried about where the next pay packet the register. Since the NMC was established under the is going to come from. My hon. Friend is right to say Nursing and Midwifery Order 2001 on 1 April 2002, that it is a real problem. there have been a number of increases in the annual registration fee. Historically, nurses joined the register Sir Alan Meale (Mansfield) (Lab): From my hon. for life and there was no annual fee increase. The order Friend’s contribution to the debate so far, it is clear that changed that, however. In 2004 the NMC annual a poll tax model has been adopted in respect of the registration fee was £43, which increased to £76 in gathering of funds for the Professional Standards Authority. August 2007. Doctors and dentists will be paying the same fee as In 2011, the Council for Healthcare Regulatory nurses. Does he not think that that is quite unfair, given Excellence was tasked with investigating the NMC. It the wage structure in the national health service? published a damning report that criticised the NMC’s lack of leadership, poor communication, inadequate Mr Anderson: That seems unfair to me, as it does to governance and poor financial management. A new the nurses. As I will try to bring out in the debate, the chairman and chief executive were appointed and, critically, important thing is not only the money that people are the NMC accepted the report’s findings in full—the paying—for some, that is a real issue—but the value for NMC accepted that it was not doing what it was supposed money that they receive. Two years ago, the Government to have been doing as well as it should have been had to step in and give the NMC £20 million to prevent doing it. a fee increase. Of course, the nurses and midwives In May 2012, the NMC indicated its intent to consult welcomed that, but it means that the taxpayer is subsidising on a 58% fee rise from £76 to £120 a year. Following the NMC because it has failed to do its job properly. pressure from Unison, the Royal College of Midwives My hon. Friend is right to say that there is an imbalance and the Royal College of Nursing, the Government in what it is doing. offered a £20 million grant to the NMC. The Secretary of State for Health agreed to the grant because he Sir Alan Meale: It is about not only the position but was also appalled by the regulator’s poor financial the numbers. There are far more nurses and midwives management—and he would know about poor financial than doctors and dentists. The fee increase is management, given the state into which he has got the disproportionate and quite unfair. health service in general. The result of that grant was that the registration fee was kept down to £100 a year, Mr Anderson: The fee increase is disproportionate, although we should remember that it had gone up to but the numbers of disciplinary and fitness-to-practise £76 only a few years earlier, so there was a big increase cases are also disproportionate. As we will hear, the at a time when people were not receiving pay rises. number of nurses facing fitness-to-practise issues is grossly more than the number of doctors facing such Grahame M. Morris: Is there not an argument for cases. That means there is less money to spend on placing a moral obligation on the Government to make education and training to increase registration standards a contribution in the wake of the Francis report, which for nurses, which is what we all want. identified failings in a number of organisations, including 381WH Nurses and Midwives: Fees23 MARCH 2015 Nurses and Midwives: Fees 382WH the Nursing and Midwifery Council? Surely the mentioned, spent only 56% of its resources on fitness- Government have an obligation to help to meet the to-practise cases involving registered doctors in 2013-14. costs in order to put things right. The people who helped me to secure this debate support my contention that the NMC model is unsustainable Mr Anderson: I am happy to say that, although I do and detrimental to the majority of registrants. not completely agree with my hon. Friend. A review Employers are the largest group making fitness-to- would allow us to have a discussion and get people practise referrals. In 2012-13, however, 40% of fitness- involved. If the Government are too involved, some to-practise referrals were closed during the initial assessment. people will worry whether the NMC will lose the Employers were making referrals that were not fit to be independence of which it should be proud, if it is heard but that had to be heard, and the cost of those running properly. I have no problem in principle with hearings comes directly out of the purses and wallets of the Government helping out in any way they can, nurses and midwives. It has been suggested to me that, because that is part and parcel of ensuring that nurses following the Mid Staffordshire NHS Foundation Trust are able to do the job that we and the public want. public inquiry, employers have become increasingly risk The fee increase was significant because nurses and averse and are using the fitness-to-practise referral process midwives have been subjected to a Government-imposed instead of internal processes and procedures to address pay freeze while, outside in the real world, everyday performance and disciplinary issues. Instead of taking items and household bills are increasing dramatically. cases on themselves, employers are referring them to the As we know, figures from the Labour party and others NMC at unsustainable cost. show that people are £1,600 a year worse off than they were five years ago. It is a double whammy, to put it Inappropriate referrals block the system and add to mildly, for hard-working nurses and midwives to be costs, which is why it is important that the NMC told, “You are going to be worse off—and by the way, assesses whether it is appropriate for employers to refer why don’t you pay more for your registration?” so many cases. The NMC could do that by including employers in reviewing the reasons for the dramatic In May 2014, the NMC consulted again on increasing increase in referrals since 2008. Is there a crisis? Is there the fee from £100 to £120, an increase of almost 60% in a problem? Is there something wrong with the practice? two years. The Government could have offered another If employers sit around the table with the NMC, perhaps bail-out to allow the NMC more time to address the they will get to the bottom of the situation. challenges it faces from fitness-to-practise cases, but they chose not to. The proposed annual registration fee The NMC should also take a more proactive approach increase was heavily opposed by all the professional to the promotion of education and standards as part of bodies and trade unions that represent the views of a preventive measure that could contribute to reducing registrants. Ninety-nine per cent. of respondents to the the number of fitness-to-practise cases referred to the Unison survey opposed the proposed increase to £120 a regulator. There should be an equally strong commitment year. In the RCN survey, the same proportion of to public protection, because that will prevent harm in respondents disagreed with the proposed fee rise. The the first place. anger felt by registrants is demonstrated by the e-petition condemning the proposed fee increase, which was signed I have a quote from a full-time officer from Unison by almost 114,000 people. Their feelings are reasonable about his experience in dealing with NMC cases: and understandable. “The NMC pursue allegations against registrants that have I will now address the NMC’s poor financial little or nothing to do with patient safety and could not be said to have a public interest element. Despite the recommendations of management, which was highlighted in the 2011 report. the Law Commission review and its apparent endorsement by the The fee increase was felt to be inappropriate because it NMC and the Department of Health, the NMC continues to placed too big a burden on individual nurses and midwives bring cases relating solely to inter-employee and other issues to make up for the NMC’s poor management. The wholly unrelated to their nursing practice. In addition the NMC £20 million grant from the Department of Health was insists on taking any cases with an apparent ‘public interest’ to a meant to contribute to the cost of clearing the backlog full hearing or meeting even where the registrant wishes to be of historical fitness-to-practise cases. Despite that help, voluntarily removed from the register. The lack of any clear definition of what is meant by the public interest makes the issue some 50 cases have been outstanding for three years or wholly subjective. longer. The issue was reinforced by the report, and 50 cases have been on the books for the three or four At a recent NMC hearing an NMC panel decided that a years since then. In 2009, the NMC had a relatively registrant’s apparent failure to approve staff applications for small number of such cases, and had it taken appropriate flexible working amounted to serious professional misconduct and was a public interest issue! This hearing lasted 10 days and action at that stage, there would never have been the probably cost well in excess of £30,000. It is absurd that nurses need to increase the registration fee to such a level. and midwives should be asked to foot the bill for such folly with The NMC’s consultation paper on registration fees ever increasing registration fees.” recognised that the key driver of increasing costs is the That is the experience on the front line—that is what massive increase in fitness-to-practise referrals. Since people are paying £120 a year for. 2008, the number of fitness-to-practise referrals has increased by 133%. The NMC holds two and a half In an attempt to convey the affordability of the times as many hearings as all the other regulators proposed fee increases, the NMC consultation paper combined. Last year, the NMC spent £55 million of its compared subscription fees for professional bodies and £71 million budget on fitness-to-practise issues, which those of trade unions with the NMC. However, that is means that 77% of its budget is spent on fewer than 1% not valid comparison. Unlike the NMC, trade unions of registrants. In comparison, the General Medical and professional bodies are organisations that nurses Council, which my hon. Friend the Member for Mansfield and midwives can join voluntarily. 383WH Nurses and Midwives: Fees23 MARCH 2015 Nurses and Midwives: Fees 384WH

[Mr Anderson] Mr Anderson: My hon. Friend is obviously reading my mind, because that is the point that I was going to I would be delighted if the Government said that we come on to next. She is absolutely correct that part-time could have a closed shop for trade unions and professional workers, who are mainly women, are being hit bodies. I am sure that you would agree, Mr Havard, but disproportionately because they are in part-time work, I have got a feeling that they may not be keen. Come 8 and there could well be equality issues around that. May, the next Government will be led by that wonderful The decision to increase fees will have a catastrophic gentleman, my right hon. Friend the Member for Doncaster impact on nurses’ and midwives’ future decisions, which North (Edward Miliband), but I have a feeling that he will have a direct result on work force planning and also might not be too keen on closed shops in the health patient care. At present, 30% of nurses and midwives in service or anywhere else. However, that is what we have practice have protected pension rights, so they are eligible got with the NMC. to retire at 55 with their full pension. Many do that, I understand why that is the way it is, but for the and, after a brief period of absence, return to part-time NMC to pretend that, somehow, a comparison can be practice. That has gone on for decades and is something made with joining trade unions is completely unfair. It that the health service has welcomed and plans for. would be much more suitable to compare the NMC’s I have been told by many people who work in nursing registration fees with Health and Care Professions Council and midwifery that it would not be economic for them registration fees. Under “Agenda for Change”, both to return to work after they retire if registration fees rise regulate professionals in similar pay bands, but when and continue to do so. That was borne out by the we compare a nurse at the top of band 5 with an Unison survey, which found that 51% of respondents occupational therapist on the same band, we see that would not return to practice if fees increased. That the nurse would pay £120 a year in registration fees would be a double whammy for the health service. We while the OT would spend £80. That goes back to the would lose people with experience who were prepared point raised earlier about why on earth part-time workers to come back to work part time; they will not do that and those on different bands should pay the same because of that block put in front of them. subscriptions. We already have a chronic shortage of supply of Although the NMC recognised the economic difficulties nurses and midwives in the UK, which is made worse by nurses and midwives face in its consultation paper, it the Government’s decision to cut the number of nurses proposed the fee increase regardless. Effectively, it ignored and midwives in training. That shortage is demonstrated the reality of how those people are struggling. by the increasing numbers being recruited from Europe. A reduction in those returning to practice will have a Ann McKechin: I was astonished to find that the devastating impact on patient care. It is essential that NMC has not instigated any efficiency programme to service and staff implications are taken into account by try to control costs and those of tribunal hearings in the NMC and the Government. Without that, it will be particular—even things such as booking hotels and impossible for the NHS to plan its work force properly. accommodation for tribunal members—to try to ensure On revalidation, the NMC ignored the heavy opposition the most efficient cost basis, given current restrictions. it received and decided to go ahead with its proposal to Does my hon. Friend agree that, given that the NMC increase fees regardless. For any nurse or midwife whose has a captive audience, it needs to spend more time registration payment is due by the end of February showing that it is getting maximum efficiency for its costs? 2015 or later, the new fee applies. The bodies and unions sought reassurance from the regulator that fees would Mr Anderson: My hon. Friend makes a valid point, not increase further, but the NMC has offered no which again comes back to what the review can look guarantees about coming years. into: whether members are getting value for money. That is what we are talking about here. The NMC might Later this year, the NMC will introduce a new think, “If we need more money, we can get it because revalidation process for registrants, which will place they have got no option other than to pay.” It can hold additional requirements on those who wish to stay on people to ransom and, unfortunately, that is what it is the register and continue to work. I support the work surely doing. That is clear, because it has ignored the on revalidation, and I know colleagues on the Health legitimate claims of those who have said, “Please, give Committee have been critical of the failure to move us some relief here.” It appears that those people were faster on that, but many nurses and midwives are concerned told, “We’re going to ignore you, anyway.” that those changes could result in further fee increases. It is not clear what the cost impact will be. During a time of continued pay restraint for hard- working nurses and midwives and ever-increasing costs of essentials such as child care, household bills and Sir Alan Meale: The papers that I have read make it everyday items, the proposed fee increase left many clear that the NMC gathers most of the PSA’s funds, yet registrants feeling that that was yet another attack on it seems to have little say in its budget. Does my hon. their standard of living. Friend agree that that is probably the main reason for the re-evaluation? Ms Ritchie: My hon. Friend is making a good point. By and large, the NMC’s members are women and some Mr Anderson: Absolutely. I will come on to discuss of them are in part-time employment. Does he agree the PSA before I sit down, which my hon. Friend will be that the disproportionate payment to the Professional glad to hear will not be long now. Standards Authority for Health and Social Care will Professional bodies and trade unions are working have an adverse impact on equality and could infringe hard with the NMC to ensure that the development and equality regulations? introduction of the new process is as successful as 385WH Nurses and Midwives: Fees23 MARCH 2015 Nurses and Midwives: Fees 386WH possible and that lessons are learnt from the pilot sites. on the regulatory bodies should be calculated. Rather That process will be extensive and require significant than saying, “Should we do it?”, they said, “How will efforts from registrants, but it surely cannot lead to we pay for it?” further unjustifiable fee increases for hard-working midwives Professional bodies and trade unions quite rightly and nurses. argued against this levy; it is another hammer blow for The NMC could take measures to prevent future fee the people working in the service. However, their concerns rises for registrants, but it is not the only one that were ignored by the Government who, in their response should beheld responsible. The Government could have to the consultation, decided to determine the fee based taken measures to reduce further fee increases, but they on the number of registrants that a regulator has. chose not to. Again, this unduly disadvantages the NMC, which will First, the NMC has the most unwieldy legislation of bear a disproportionate amount of the cost because, as all regulators despite being the largest. By contrast, the I said earlier, it is the largest regulator in the world. General Medical Council and the Health and Care Based on the current size of the NMC’s register, the Professions Council have more flexible legislation, which first £1.7 million levy to the PSA equates to £2.50 per allows them to be more efficient and cost effective. That registrant. The upcoming fee rise has already resulted in prompts the question: why should midwives and nurses 12.5% of this additional sum effectively going straight be treated differently from doctors and occupational to fund an external organisation, which is doing nothing therapists? to protect the public or to help to educate or protect the staff working in the service. In April 2014, the Law Commission published a draft Because the NMC has no other source of income, regulation of health and social care professionals Bill, these costs will almost inevitably be passed on to registrants, which included reforms that would have helped the who include some of the lowest-paid professionals regulated NMC keep costs down. If implemented, the draft Bill by the health regulators. As I said before, approximately would offer the NMC the opportunity to speed its 90% of the NMC’s registrants are women, so the PSA processes up and give it flexibility to amend rules without levy will have an adverse impact on equality, as the hon. having to seek Parliament’s permission. Member for South Down said. Also, many NMC registrants The Mid Staffordshire NHS Foundation Trust public work in part-time roles, and so frequently they are not inquiry called for regulators to focus on promoting safe, high-income earners. If the NMC is forced to increase compassionate care, rather than intervening only after the annual registration fee in order to pay the PSA, patients have suffered harm. The draft Bill would have which in some respects it already has, that will have an allowed the NMC to focus more resources on education, impact on equality, as those in this group will be financially effective registration and promoting professional standards, worse off. The poorest will pay the most, which is not which would have done exactly what the inquiry called unusual under this Government. for. Currently, it is impossible for the nine health regulators Over the years, all the NMC’s efforts have been to work together: there are nine different pieces of directed at dealing with fitness-to-practise cases. This legislation, nine different codes of conduct and nine has had a detrimental impact on the level of service different fitness-to-practise procedures. It is not clear to provided by the NMC to its registrants. For example, me why we are treating health workers differently when the NMC has failed to provide effective and up-to-date the main objective of all health regulators is surely the guidance on key issues, and there has been a lack of same—pubic protection. professional advice to registrants who have queries or The draft Bill would enable and require regulators to concerns about how to interpret the requirements of or co-operate more closely with each other, which would guidance on the code of conduct. Given the overwhelming, ensure consistency. It would help the NMC and all the and appropriate, focus of professional regulation on regulators to keep their costs down collectively. However, public protection, and the diminution in professional this Government failed to include it in the Queen’s advice, it could be argued that it is unfair to expect Speech, which meant it could not be debated or passed registrants to continue to bear the sole financial burden into law. It would be interesting to hear from the Minister of the NMC’s professional regulation activities. what he thinks of that decision. Furthermore, if the body overseeing the regulators is Registrants should not be punished for the Government’s funded by the regulators, the public will lack confidence. failure in that respect. Likewise, the NMC should not Consequently, the funding arrangement for the PSA, use it to justify or push through any future fee increases. which is based entirely on registrant funding, is flawed. The NMC has joined representatives of patients’ groups, At a time of ongoing financial austerity, the additional nursing and midwifery professional bodies, and trade bureaucracy is undesirable, particularly when there are unions to call on politicians, such as us here today, to already existing mechanisms to scrutinise and hold commit to introducing the draft Bill to reform health regulators to account, for example, the annual accountability care and its professional regulation. hearing by the Health Committee, which enables the In addition, following a review in 2010, the Government people in this building to scrutinise what the regulators decided that the Professional Standards Authority, the are getting up to. body responsible for the oversight of the health professions’ For these reasons, I urge the Government not to regulators, would no longer continue to be funded by implement the levy on the nine health regulators, and the Government and the devolved Administrations. Instead, for the Government and the devolved Administrations the review recommended that the PSA should be funded to continue to fund the PSA until it is included in the through a compulsory levy or fee on the regulatory draft Law Commission Bill. bodies that it oversees. So, rather than consult on whether It is appalling that the NMC decided to increase its there should be a levy or on who should pay it, the fees despite the heavy opposition from hard-working Government decided to consult on how the PSA levy nurses and midwives. It is tough enough to be a nurse or 387WH Nurses and Midwives: Fees23 MARCH 2015 Nurses and Midwives: Fees 388WH

[Mr Anderson] The NMC is subject to parliamentary scrutiny by ourselves and the Health Committee, but we have little midwife without having to be penalised for coming to opportunity to comment on fee rises such as this one. work. They are working in an increasingly difficult We need to get the NMC to work together with the environment, which has been made worse by public employers, the trade unions and the representative bodies, sector cuts, chronic understaffing and continued pay to review what it is doing and to provide a better service restraint that means their pay is lagging well behind cost for all concerned. of living increases. If the NMC’s fees continue to increase, it will result in nurses leaving the profession, exacerbating existing problems in the health system, which is already 5.8 pm struggling to cope. Grahame M. Morris (Easington) (Lab): It is a pleasure To ensure that future fee increases are not made, it is to serve under your chairmanship, Mr Havard; regrettably, essential that the following steps are taken. First, the it may well be for the last time in this Parliament. NMC should undertake a full review of all fitness-to- practise referrals that do not proceed to a full hearing, I congratulate my hon. Friend the Member for Blaydon and use that information to sit down with the employers (Mr Anderson) on securing this debate and the and trade unions to ensure that all referrals to the NMC Backbench Business Committee on allocating the time. are in the interest of patient safety and public protection, It is on an important issue, and the reason I wish to and not just an excuse for employers to carry out participate in it is because I serve on the Health Committee internal disciplinary procedures. That would have a and we have looked at this issue on a number of positive impact by reducing the number of referrals and occasions as part of our annual accountability hearings. the overall cost thereof. Indeed, we produced a report, which my hon. Friend Secondly, the NMC should shift resources into promoting referred to; it was the fifth report of Session 2013-14, awareness and the development of guidance that would and the reference is HC 699. It is an excellent piece of help registrants to understand better how to act within work. The Committee went into some detail, covering the NMC’s code of conduct in their practise. That many issues mentioned by my hon. Friend the Member would help to reduce the number of fitness-to-practise for Blaydon and making recommendations about how referrals, which would be a win-win for everybody best to proceed. concerned. I do not want to repeat the arguments, but it might be Thirdly, the NMC should consider a reduced fee for useful to put into context the report and the concerns new registrants, part-time workers and those nearing that have been raised. Constituents of mine who are retirement age, to reflect better registrants’ income nurses and midwives have written to me individually, throughout their careers. There should be a phased fee quite apart from the petition. I think many hon. Members for all concerned. throughout the country have had similar representations. Fourthly, the Government should not implement the There is an issue about fairness in respect of this PSA levy on regulators and should continue to fund it considerable increase in fees, and about how the increases centrally, at least until it is included in the draft Law have come about. There is also an issue about whether Commission Bill. those who are required, by the nature of their employment, Finally, the draft Law Commission Bill must be given to be registered should be placed into financial hardship, adequate parliamentary time by the next Government as has happened in some cases, particularly with women to be debated and passed, to enable the NMC and other returners who are working limited, part-time hours. We health regulators to reduce costs, in the interests of all all agree with registration, to maintain public confidence concerned. and trust in the nursing profession. However, there is an issue about whether some allowance should be made for We count on nurses and midwives every day. them, in terms of a reduction in their fees. Grahame M. Morris: I wonder if we can get clarification As my hon. Friend indicated, the nursing and midwifery on that last point; perhaps the Minister can provide it. professions are among the oldest established and longest Given the dearth of legislation, especially in the last regulated professions in the United Kingdom, with Session, why was not parliamentary time found for regulation taking many forms over the last century. The something on which there could have been cross-party current regulator, the Nursing and Midwifery Council, consensus, such as a draft Bill based on the Law which has given evidence to the Health Committee, has Commission’s report? been in operation since 2002. As we have heard, it is the statutory regulator for more than 670,000 nurses and midwives. The £67 million figure relating to its income Mr Anderson: My hon. Friend makes a very good is an old one, because it now receives more than £70 million. point, and I am very interested to hear whether the Minister will respond to it when he sums up and say In 2011, the Health Committee began holding annual exactly why we have not been discussing this issue accountability hearings in relation to the Nursing and during the past two or three years, when we have been Midwifery Council. Prior to that, our concentration going home at ludicrous times, such as 5.20 pm on a was essentially on the regulation of the medical profession, Monday, week after week during the past few months. with the General Medical Council. We have since widened We count on nurses and midwives every day. Our the scope of the annual accountability hearings. In its families count on them; the people of this country report on the first annual accountability hearing with count on them. I have heard loud and clear from my the Nursing and Midwifery Council, the Committee constituents that the fee increases are unaffordable and expressed concerns my fear is that people will start to vote with their feet. “about the affordability of the registration fee”. 389WH Nurses and Midwives: Fees23 MARCH 2015 Nurses and Midwives: Fees 390WH

This has not just popped up: we have identified it as a are operating properly and effectively. However, I agree trend since 2011. In that report, the Committee urged with my hon. Friend. There was a ministerial statement the Nursing and Midwifery Council last Thursday regarding untoward practices highlighted “to avoid further fee rises and to consider fee reductions for new in a report, including bullying of staff and so on, in a entrants to the register”. hospital in east London—I think it was the Barts Health However, there have been fee rises since then. When I Trust. If fitness to practise referrals are being used by was first elected, the fees were £76 and they increased to employers in that way, it is reprehensible and is adding £100 in February 2013. The further rise to £120 a to the strains and pressures on the NMC. year—that would probably account for the increase in The latest fee increases are being imposed on nurses revenue—would mean a 52% fee increase, at a time and midwives who were extensively consulted about when nurses and midwives are experiencing severe and them. My hon. Friend mentioned the overwhelming unsustainable pay restraint. These problems are further numbers: 96%—many of us would be over the moon to compounded by the decision of the Government and have that as a vote of confidence in the general election— the Secretary of State for Health to veto the 1% NHS voted against those recommendations. However, it seems pay rise, denying a pay increase to 70% of nursing staff that the consultation served little purpose, other than to and ignoring the view of the independent pay review antagonise nurses and midwives, because the Nursing body. I want to place on record that the incredible work and Midwifery Council has, apparently, taken little or and effort of our nurses and midwives do is of great no regard of the views of NHS staff and has pressed value, and I want to say how much that is appreciated ahead with the fee increase. throughout the country. The Nursing and Midwifery Council has also failed to provide any assurances that the latest increase will Ms Ritchie: My hon. Friend is making a compelling not be followed up by further increases in coming years. case for the career position of nurses and midwives. As my hon. Friend the Member for Mansfield (Sir Alan Does he agree that the Nursing and Midwifery Council, Meale) mentioned earlier, if we are to encourage people as well as the Government, should be encouraging to come back into the profession, they have to know people into the profession, rather than providing that the regulator has a reasonable, cost-effective process disincentives, discouraging them from joining it and in place. The Nursing and Midwifery Council stated in from training for such vital roles that will benefit all evidence to the Health Committee last year that it had within the wider community? introduced an Grahame M. Morris: I agree wholeheartedly. All across “annual formal review of the fee level”, the country—certainly in my area—efforts are made, so it is not necessarily an ongoing commitment. However, and have been made consistently, to recruit good quality we have to ask: why has there been such a huge increase, staff. Often recruitment is done overseas, with adverts of more than 50%, in a relatively short period? being placed in newspapers in countries that train good Clearly the Nursing and Midwifery Council must quality nurses and midwives, but have a surplus. It often meet its statutory obligations. We would expect that as strikes me as bizarre that although we have a reservoir Members of Parliament—and the public would certainly of women returners, we not making it as easy as possible that—for maintaining professional standards. Certainly for them to return. Doing that would be in the interests more needs to be done to remove the constraints it faces of the service and of the country. It would be a false through the fitness to practise process—a number of economy to continue doing what we are doing. hon. Members have highlighted that—which is too costly.Seventy-seven per cent of the Nursing and Midwifery Sir Alan Meale: I am here today because my sister is a Council’s income of more than £70 million is being midwife and has been a nurse all her adult life. This is spent investigating less than 1% of the nurses and not just about times of restraint and restrictions on pay; midwives on the register. That is an incredible sum of there has also been a thorough re-grading of the whole money, and I find it difficult to comprehend how that nursing and midwifery system throughout the UK, can be an efficient use of resources. which has already re-graded many nurses to lower grades than previously. They are experiencing a double whammy, The Nursing and Midwifery Council is making and this is the third time they have been hit with a fee progress—I recognise that, and certainly the Committee rise. We should not approve it. recognised it, although it said it thought the progress was “fragile”. The NMC recognises past failures—not Grahame M. Morris: I am grateful for my hon. Friend’s least in IT systems—and is seeking to overcome some of intervention. That is another excellent point, well made. them, but it is clear that further improvement is required. Pressures are being placed on the NMC, including An assessment by the Professional Standards Authority increases in its costs, that are placing a greater strain for Health and Social Care—the organisation that oversees and burden on nurses and midwives. The Government all the professional regulators—has found that the Nursing have to recognise that. I know that my hon. Friend the and Midwifery Council is failing to meet seven of the Member for Blaydon has reservations about whether 24 standards of good regulation. By any measure, I the Government supporting the NMC with one-off would suggest that there is still a long way to go in grants would impact on its impartiality. I do not think bringing it up to standard. Of those seven failures, two that should necessarily follow. We should recognise the relate to fitness to practise. considerable pressures being placed on it financially, While it is important that improvements continue to not least those arising out of public concerns and the be made, it is wrong to expect nurses and midwives to recommendations of the Francis report. We want the bear the burden of the costs by themselves, particularly public to be confident that the profession is properly when we have seen the value of their pay fall in real regulated and that the fitness to practise procedures terms over the life of this Parliament. The Government 391WH Nurses and Midwives: Fees23 MARCH 2015 Nurses and Midwives: Fees 392WH

[Grahame M. Morris] considerable number of weeks to process. I do not have an issue with PREP as I do keep myself updated”. cannot sit idly by and allow continual increases in fees She told me that last year she not only completed the without taking action or giving some guidance. We hear 35 hours of continuing professional development that Ministers time and again praising the hard work and she should have done, but that she actually did around dedication of nurses, and I hope the Minister will do 100 hours of CPD. We are talking about a responsible that at the conclusion of the debate. Nurses do an member of her profession. Her issue was amazing job in the most difficult circumstances, but “the length of time I will not be working because of the NMC when it comes to pay, pensions or professional fees, the incompetency. I have never received the renewal for registration kind words of Ministers seem to be rarely followed up form…I have received numerous letters from different departments by practical action that would help NHS staff. at the NMC during the periods of October and up until last week”. In conclusion, I hope the Minister will say what steps he is taking to support the Nursing and Midwifery That was when she contacted me. Of even more concern Council to ensure that it can continue to drive through is that she was also informed that the improvements we all want to see without having to “the company I work for could request my wages back from increase the fees and the cost of employment for nurses October as I have not been registered or that they could discipline and midwives. I also hope that he will address the points me. This situation is not my doing. I feel the NMC must have sent letters to the wrong address…why would I not receive some and made by my hon. and right hon. Friends on the need to receive others...I feel totally let down by a board that I have speedily bring forward the law commissioners’ sensible continually adhered to since 1987 without any blot on my career and well thought out proposals on the NMC. I would as both a Nurse and Midwife and now find myself in this be interested if he could explain why they have not been diabolical situation which is not my doing.” brought forward before now. In fact, while my constituent was rather concerned, she continued to work. She needed to work, of course, and sought to correct the NMC’s error by reapplying. 5.22 pm She was told that she would have to make a readmission Fiona Bruce (Congleton) (Con): It is a pleasure to application at the increased fee of £120, which she did. serve under your chairmanship, Mr Havard. I thank the It was only after a number of letters from me and hon. Member for Blaydon (Mr Anderson) for bringing e-mails and calls from my constituent that just last week forward the debate, although I do not agree with everything the NMC confirmed her readmission. She should have he said. With particular reference to the concerns he had her re-registration confirmed and backdated, expressed on NMC registration fees, I will relay to but what she has had is an e-mail from the NMC that Members and the Minister the experience of a constituent states: in Congleton whom I have recently had to assist. “I have reviewed your readmission application, and I can now confirm that your readmission process is complete. As of today you My constituent is a registered general nurse. She are effective on the register with an expiry date of 31 March 2016.” qualified in 1987 and has practised as an RGN for My constituent has been practising under this pressure 27 years. Sadly, the NMC recently nearly barred her for a considerable period. She was readmitted more from practising for a period, through no fault of her than a month after she realised the situation and contacted own. My constituent paid her £100 NMC re-registration me. She is extremely concerned, and so am I. In my fee by automatic bank transfer. The fee was debited constituent’s experience, the registration system has clearly from her account in October last year and she heard lacked what I consider to be basic efficiency. It has nothing more about it. She assumed that her re-registration fallen short of taking a reasonable approach to her. had taken place automatically. How can the NMC see fit to increase its registration By chance, four months later, at the very beginning of fees in just two years from £76 to £120? Before it February, my constituent was checking the NMC register considers another increase, it should put its own house regarding a colleague, and she decided to put in her own in order in respect of its relations with its members. details. The system had no record for her. She contacted the NMC four times in two days, as she was very 5.28 pm concerned. Eventually, she received a response. To her consternation, she was told that her registration had Mark Durkan (Foyle) (SDLP): As other Members lapsed. She was informed that a form had been sent to have said, it is a pleasure to serve under your chairmanship, her home, but had apparently been returned marked Mr Havard. I commend the hon. Member for Blaydon with “No longer resident at this address”, even though (Mr Anderson) on securing this debate. I suppose he is she had lived in the same house for four years and a gamekeeper turned poacher on the Backbench Business continued to receive other correspondence from the Committee. He ensured that the e-petition, which gathered NMC throughout the period between October and a significant number of signatures, would be debated February. Without contacting her or her employer, or before the close of this Parliament. reimbursing her money, the NMC had cut off her It is a pleasure to follow not only the opening speech registration. from the hon. Gentleman, but also the insights from the My constituent e-mailed me at the beginning of February, hon. Member for Easington (Grahame M. Morris). His as she was extremely concerned. She said: teasing out of where some of these issues could go are reinforced by his experience as a member of the Health “I was then informed I would have to re-register”— Committee. It was also a pleasure to hear from the hon. effectively, she had to apply for readmission— Member for Congleton (Fiona Bruce), who talked about “and could not work as I am no longer registered as a nurse and a particular constituency case that has given strong, that sending the initial letters back could take up to 10 days and more than anecdotal evidence that corroborates some that I would also have to do a PREP audit which could take a of the issues raised by other Members on how the NMC 393WH Nurses and Midwives: Fees23 MARCH 2015 Nurses and Midwives: Fees 394WH is having to work, because of the position it is in. It is now be impressionistic evidence that health service important that we consider issues relating not only to management is using fitness-to-practise cases as a crude how the NMC works and whether its cost burdens management tool. Perhaps they allow management to should be alleviated in different ways or apportioned, abscond from some of its more subtle and intelligent but to the Professional Standards Authority, the funding responsibilities by transferring crude enforcement to source and scheme of which seems to be fundamental someone else. The cost in such cases is clearly giving rise to the inequities we are discussing. to what seems to be a completely disproportionate Many people wonder what Parliament’s role is in all working burden on the NMC. this. They think Parliament is meant to oversee the health service and strong public service ethics, but it Mr Anderson: I related to what a trade union appears to wring its hands when these changes come representative told me about taking people through a along but everyone seems powerless to do anything. I fitness-to-practise hearing that lasted 10 days and cost tabled a prayer of annulment against the order that has £30,000. Employers may well be trying to prevent exactly brought about the increase in fees—early-day motion 697 that sort of thing from happening and tying up their if any Members want to scrabble in and sign it before HR staff—all the witnesses and people they have to Dissolution. However, it is only a prayer of annulment. suspend. Instead of taking responsibility, employers are As the hon. Member for Easington said, many people parking such issues with the NMC, which has hugely have written to MPs in all parts of the UK, but they are increased its work load and the related costs. left bemused by the responses they receive. At least now we are having this debate, courtesy of the hon. Member Mark Durkan: I thank the hon. Gentleman for making for Blaydon. I look forward to hearing the Minister that point and for giving colour to the concerns we feel respond to it. when we look at the number of cases, the cost burden, the wider impact on the NMC and the costs faced by The point has been made that those who have to those who have to register with the NMC. We must register with the NMC have faced pay restraint for a remember that the NMC does not only work to service number of years. They are locked into pay freezes, and its members’ professional standing. It is there to safeguard many are coping with the perverse and inequitable not only professional standards but public assurance outcomes of the “Agenda for Change”. That has been and the wider public interest. the case for many professionals in my constituency in Northern Ireland, who have not only questioned where There is a case for asking whether anything can be they are in relation to particular bands and how their done to alleviate and re-profile the NMC’s costs and responsibilities have been correlated with others, but whether those costs can be better shared so that they do found themselves at odds with what has been decided in not fall only on nurses and midwives but are spread neighbouring health trusts. more widely among all of us who rely on the work and good standing of the regulators of such services. If people are already facing so many frustrations relating to their pay and conditions, they are particularly A number of hon. Members mentioned the proposals aggrieved when they are hit with what is essentially a in the offing that might allow some of these issues to be vocational tax. They are being told because that their addressed. It is not a case of some of us just screaming vocation is so important and sensitive and is subject to a against a fee increase and saying, “Something should be registration process that is open to fitness-to-practise done about it”—there have been opportunities. Reference procedures, they have to pay more for the privilege of has been made to the Law Commission’s draft Bill on continuing to work. They are not being paid any more— the regulation of the health and social care professions. they are actually being paid less—but they are having to It is disappointing that that has not been taken forward pay more to register to turn up to work. Surely that is in this Parliament, but it should be soon, because it unfair and inequitable. would provide a context for addressing some of the structural and operational questions about the NMC, The fees have gone up from £76 to £100, and now to as well as other issues of fairness and standards. £120. That is just shy of a 60% increase in a small number of years, and people are rightly aggrieved. If When the hon. Member for Easington referred to that has been the form over a couple of years, they will some of the issues arising from the Francis report, the ask whether it will be sustained—will it project into the hon. Member for Blaydon got sensitive about that, but future? There is a proper question for us to ask in we should recognise that as something else that is Parliament and for Ministers to answer. It is not enough affecting nurses’ and midwives’ morale. As well as facing simply to say, “Well, this is the process we have. The pay restraint and bigger fees, they are facing the wider NMC has to make the decisions and there is nothing we issue of morale relating to their professional reputation, can do about it.” A couple of years ago, because of the what with some of the headlines that have come out of pressure of the number of fitness-to-practise cases, the the Francis report. No doubt the Minister will pay great Government saw fit to use a £20 million subvention to tribute to the work of nurses and midwives, but we must help to relieve the situation, so why could not a further listen to their concerns and worries. That is why so subvention be used? That would at least provide cover many people—not just nurses and midwives—signed while other changes were introduced. the e-petition. They want to hear Parliament speak on this issue, which is why this debate is so welcome. I look There are questions about the PSA’s funding being forward to hearing the Minister’s response. sourced on a per-registrant basis, which seems to line up the NMC for a particularly undue hit in terms of its 5.38 pm source funding to the PSA. I will not go through it all again, but hon. Members asked about the cost burden Andrew Gwynne (Denton and Reddish) (Lab): It is a that will arise and the procedural length of fitness-to-practise pleasure to serve under your chairmanship, Mr Havard. cases. Other hon. Members asked whether there might It is also a pleasure to follow my hon. Friend the 395WH Nurses and Midwives: Fees23 MARCH 2015 Nurses and Midwives: Fees 396WH

[Andrew Gwynne] Andrew Gwynne: At the same time! I do not understand why the Government could not Member for Foyle (Mark Durkan). We recently had the have found time to introduce the measures in the draft pleasure of serving for 13 hours that we will never get Bill. Even the head of the NMC, Jackie Smith, thinks back on the Committee for the National Health Service that the Government have not gone far enough. She has (Amended Duties and Powers) Bill, which my hon. complained that she is fully aware her organisation is Friend the Member for Eltham (Clive Efford) promoted. not resolving cases quickly enough, but that the legislation It is quite a novelty to speak in a health debate in which as it stands does not allow the NMC to do things any hon. Members have actually spoken about health. It quicker. Likewise, the Royal College of Nursing, the feels quite unique after the debates in that Committee. Royal College of Midwives, the Patients Association, As is customary, I place on the record my appreciation the Parliamentary and Health Service Ombudsman, the of and congratulations to the petitioners, who managed Care Quality Commission, Unison, Unite and others to achieve the number of signatures necessary for the have voiced their strong support for the draft Law debate, and my hon. Friend the Member for Blaydon Commission Bill. (Mr Anderson) and the Backbench Business Committee In response to the Francis report, the Prime Minister on getting it on the Floor of Westminster Hall today. I hailed the draft Bill, but then promptly forgot about it. also pay tribute to all who work in our national health It is simply not a priority for the Government. In service, not only the nurses and midwives in particular, response to the draft Bill, they said that they would be but everyone who helps make the NHS the service that it is. We are now only five and a half weeks from the “committed to legislating on this important matter when parliamentary time allows”, next general election and we are in the last full week of the 2010 to 2015 Parliament. Issues such as the one that but we have already heard how, towards the end of this we are debating show the direction in which our health Parliament, it has been dubbed the “zombie Parliament”: service has been heading. we have one-line Whip after one-line Whip and we have finished business earlier than the normal moment of It is totally wrong to impose further charges on interruption on many days. There has been plenty of nurses and midwives, especially when many are facing a time to introduce the measures had the Government cost of living crisis caused by the Government. Wages seen fit to do so. Certainly given the supposed cross-party are falling and prices rising; this is now set to be the first consensus on the measures, they could have reached the time in living memory when people will be worse off at statute book by Dissolution. Judging by the lack of any the end of a Parliament than they were at the beginning. sort of activity in the House in recent months, the Yet the Nursing and Midwifery Council wants to increase Government have had their chance many times over. the burden on the shoulders of registrants. What message Sadly, only a few days of the Parliament now remain. does that send to the nurses, midwives and patients whose interests it is there to protect? I think a pretty It looks to me as if the only people opposed to the poor one. draft Bill were Ministers. To be fair to the Minister present, whom I like, I do not think that that is through We have all had similar cases, but the hon. Member any malice, but that it is rather a result of inertia, or for Congleton (Fiona Bruce) put her constituent’s very perhaps a lack of attention—I do not know. Let me eloquently. I am sure that other Members have such place clearly on the record, however, that Labour supports cases to pursue with Ministers, which highlight the reform and simplification of the legal framework for issues surrounding the debate. We are talking about not regulation. The draft Bill would enable the regulators to only numbers, but real people, and it is right for such work better together and to share functions and, crucially, matters to be raised. Taken together with the 1% pay to make savings and to keep their costs down. The rise—for which, to put it bluntly, nurses had to fight Government’s failure means that they are now leaving tooth and nail after the Government initially indicated the NMC to force nurses and midwives literally to pay that they would not honour their pledge—the move we the price. are discussing today shows what the Government think of public sector workers. When Labour gets into power, We went through the same procedure three years ago: clearly we will have to look carefully at the books, but the NMC announced that it had to put its fees up; it we absolutely will not do what this Government have held the consultation that it is obliged to do; and it done: break every single promise made to NHS staff. promptly increased the fees by one third. In that instance, the consultation showed an overwhelming majority of As we have heard throughout the debate, in particular respondents opposed to the plans. This time it has put from my hon. Friends the Members for Blaydon, for the fees up by another fifth, which means, as we have Easington (Grahame M. Morris) and for Foyle, the heard from other Members, that the fees will have gone Government should have introduced the Law Commission’s up by £44 in three years, an increase of more than 50% draft Bill on the regulation of health and social care on 2011. professionals, which included some good measures. Had the Government introduced it, it would have enabled The e-petition has shown the strength of feeling. As the NMC to increase efficiencies and decrease costs. my hon. Friend the Member for Blaydon stated, 114,000 Instead, the Government have been introducing a swathe signatures is some doing—not many e-petitions make of delegated legislation to form something of a patchwork the 100,000 threshold necessary to be considered for a quilt of reform. Indeed, I seem to remember, Mr Havard, debate in Westminster Hall or in the main Chamber. that you chaired two statutory instrument Committees This e-petition is one of the most modest and reasonable only last week— of the ones to meet the criteria, so I genuinely hope that the Minister will consider it in the few days left to him to be accountable to Members of this House of Mr Dai Havard (in the Chair): At the same time. Commons—after Dissolution there will, of course, be 397WH Nurses and Midwives: Fees23 MARCH 2015 Nurses and Midwives: Fees 398WH no Members of the House of Commons, although the As Members from across the House have pointed Minister will remain in his post until the formation of a out, many nurses and midwives are concerned about the new Government. I want his commitment to give the way in which the Nursing and Midwifery Council has e-petition the full consideration that it deserves. proposed to handle the costs of registration and of I will say a little about the other duties of nurses. fitness-to-practise inquiries. Hon. Members have done Later this year, the NMC will introduce a new process a great service in raising the issue and allowing both me of revalidation for registrants that will place additional and the shadow Minister to respond. requirements on those wishing to stay on the register. It The hon. Member for Blaydon will be aware that the will require significant efforts from registrants. Together NMC is an independent statutory body and is therefore with pay restraint lagging well behind increases in the responsible for determining the level of its annual cost of living and an environment of demand, unrest registration fee. Under statute, it is responsible to Parliament and difficult decisions, it is difficult to see how further rather than to Ministers. However, as the Minister increases in the registration fee would not simply responsible for professional regulation, my hon. Friend demonstrate to nurses that they are not valued. Encouraging the Member for Central Suffolk and North Ipswich staff to leave the NHS is the last thing that we (Dr Poulter), in whose place I am standing today, takes should be doing given the UK’s shortfall in nurses and a keen interest in the performance of the professional midwives. regulators, not least because he is an NHS clinical Furthermore, why would new students decide to go professional himself. He has regular contact with regulators, into nursing and midwifery when the Government are including the NMC, on this and a whole range of other making life even more difficult for graduates? Nurses issues. have been subjected to an effective cut in their pay of It may be helpful to set the scene by providing some between 8% and 10% since 2010, and the latest move is background about the professional regulatory bodies unacceptable. The Labour party seeks to reverse some and how they are structured. They are independent of the trends: we are fully committed to a time to care statutory bodies whose statutory purpose is to protect, fund, which will pay for 20,000 additional nurses and promote and maintain the health and safety of the 3,000 extra midwives, along with 8,000 new doctors and public by setting robust standards for their health care 5,000 extra home care workers over the period of the professionals across the United Kingdom. For the NMC, next Parliament. the health care professionals concerned are nurses and I am sympathetic towards the NMC’s complaint that midwives. it has no room for manoeuvre when it comes to cutting Professional regulatory bodies are held to account by costs. The real shame here is the lack of reform, but the the Professional Standards Authority for Health and NMC has £10 million in its reserves. Now that reform is Social Care, or PSA—an arm’s length body currently clearly not that far away, perhaps it will consider holding funded by the Government. Hon. Members will be off the fee rise. I understand why it has proposed and aware that, following the 2010 review of arm’s length gone ahead with that rise, as under current law the fee is bodies, the Government have taken the decision to almost its sole source of income, and it has a statutory make the PSA self-funding and independent from duty of public protection. However, the increase is not Government, part of a broader change to the way in reasonable under the circumstances, especially when which health care and clinical professionals are regulated, looked at in the light of the fee bump in 2012. given the growing sophistication and expertise of the As far as I am concerned, the blame for this situation various disciplines. The powers to facilitate that change lies at the door of the Ministers who could have made were brought into effect by the Health and Social Care changes. The Minister had his chance to introduce the Act 2012. At its heart, the change reflects the long-standing draft Bill in this Parliament, but it will be left to the next principle that the system of professional regulation in Labour Government to make the changes that are so health care is funded by the professionals themselves. desperately needed. Grahame M. Morris: I cannot argue with the Minister’s quoted definition of the terms of reference of the 5.50 pm professional regulators, and we would all agree that that is completely appropriate; there is no disagreement on The Parliamentary Under-Secretary of State for Business, party lines about that. However, does he accept that, as Innovation and Skills (George Freeman): It is a great a result of recent events—most notably the specific pleasure to serve under your chairmanship, Mr Havard, recommendations of the Francis report—we are placing for what will be the last time in this Parliament. additional burdens and responsibilities on the regulators? I thank the hon. Member for Blaydon (Mr Anderson) Is it not beholden on the Government to recognise that for the opportunity to speak in this debate and for and give due consideration as to where those burdens raising issues that many nurses and midwives want to should fall? have addressed. I congratulate them on securing the debate through the e-petition mechanism. I pay tribute George Freeman: The hon. Gentleman makes an to all nurses and midwives, who do such great work in interesting point. As the challenges for the NMC’s our health service, alongside all the others who keep the members and for it as a professional body change, system going on our behalf 24/7. I also thank the adapt and evolve in the new landscape of greater Backbench Business Committee for selecting the debate, transparency and accountability in the public interest, in the light of the petition on the Government’s e-petition one issue for the NMC as a professional body is how it website asking the Government deals with that internally. Members across the House “to review the Nursing and Midwifery Council…with regard to have raised a number concerns about that, and I will the fees…and the processes through which those fees are decided.” touch on some of those later. 399WH Nurses and Midwives: Fees23 MARCH 2015 Nurses and Midwives: Fees 400WH

[George Freeman] performed the role of holding the NMC to account. Given that the Committee takes the trouble to hold The intention is that in future the PSA will be funded interviews and evidence sessions, and to make specific by a fee raised on the nine professional regulators that recommendations, is it not beholden on the Minister it, in turn, serves. It is important to note that the fee is and Government to act on those recommendations, not raised on the professional regulators—the regulatory least in relation to the Law Commission? bodies—not on registrants. The formula for calculating what contribution each of the nine regulatory bodies George Freeman: The Government take recommendations should pay was subject to consultation. It has been from the Health Committee very seriously—we have based on the number of registrants, simply because it done so on a number of issues. It is interesting to quote was judged that that would most fairly equate the fee to what the Committee has said on this matter: the amount of service that the PSA provides to each “We would urge the NMC to avoid further fee rises and to regulator. consider fee reductions for new entrants to the register.” The NMC has nearly 50% of the total number of My point is that it is the NMC’s responsibility to deal registrants so its contribution to the fee equates to with the issue. It is accountable to Parliament, and the nearly 50% of the overall costs of the PSA. However, it Under-Secretary of State for Health, my hon. Friend is important to remember that the fee per registrant is the Member for Central Suffolk and North Ipswich, likely to be in the region of £3, which represents only observes its recommendations closely.However, its internal 2.5% of the NMC’s overall registrant fee of £120 a year. organisation is a matter for itself.

Mr Anderson: I am trying to understand what the [MR PHILIP HOLLOBONE in the Chair] Minister is saying. Is it that the regulators have to pay a fee but the registrants will not, and if they do, it will be Andrew Gwynne: The Minister is correct that the £3? Where else are the organisations going to get the NMC is accountable to Parliament, but it has asked for money from? legislative changes, and the legislative programme is largely under the control of Ministers, so why have the George Freeman: My point is that it is important to Government not acted? understand that the reforms mean that the PSA is funded by the nine regulatory bodies. How the bodies George Freeman: It is a fair question, which I will seek to cover that cost is up to them. In this case, the come to, but it has nothing to do with the importance of NMC has decided to apply it equally across all its getting this right; it is merely a matter of the regrettable members. A number of hon. Members have raised a constraints of parliamentary time. One reason why I number of issues connected to that; the point about very much hope my colleagues and I will be returned in part-time nurses and midwives was an interesting one. May, Mr Hollobone—I was about to call you Mr Havard; There are issues with how the NMC chooses to allocate I welcome you to the Chair—is that we will be able to the cost internally. However, I repeat the key point that get on with that important reform. the fee increase is likely to be in the region of £3 per For the benefit of the House, let me finish summarising registrant. That represents 2.5% of the NMC’s overall some of the important information about the NMC. registrant fee, which covers a whole range of other The NMC’s total income for 2013-14 was £65 million. services. Its fee income was £62 million, which is quite a substantial It may be helpful to the House if I set out some sum. It received a grant of £1.4 million from the Department details about the services that the NMC provides. It is of Health and investment income of £1 million. Its the independent regulator for nurses and midwives in expenditure totals £70 million, with £24.18 million, or the UK. Its primary purpose is to protect patients and 34%, going on staff. Its permanent headcount has been the public through effective and proportionate regulation going up year on year. The average for the year 2014-15 of nurses and midwives. It is accountable to Parliament— was 496. The NMC had 521 permanent staff on the not Ministers—through the Privy Council for the way payroll in March 2014 and 577 in March 2015. The in which it carries out its responsibilities. It sets and permanent headcount for March 2016 is projected to be promotes standards of education and practice, maintains 606. I merely point that out to highlight that the NMC a register of those who meet those standards and takes faces some important considerations in driving productivity action when the fitness to practise of a nurse or midwife and efficiency internally to deliver the service it is is called into question. It also has a role in promoting statutorily required to deliver to its members, who fund public confidence in nurses and midwives and in regulation. it through subscription. Members from all parties would agree that we welcome Let me turn now to the relationship between the PSA the growing sophistication of the role of nurses and and the regulations we have introduced. The proposed midwives and the extra responsibilities reflected in salaries change will be introduced in the Professional Standards and professional standards. That is part of the evolution Authority for Health and Social Care (Fees) Regulations of the professionalisation of standards that we all welcome. 2015—or S.I., 2015, No. 400, with which you will be intimately familiar, Mr Hollobone, as an assiduous Grahame M. Morris: The Minister is setting out an observer of these things—which have already been laid explanation of transparency and accountability that I in Parliament. The NMC’s council meets this week to do not disagree with, but if we follow the line of his decide its policy towards them, so this debate is, again, logic, he is saying that the NMC is responsible not to extremely timely. Ministers but to Parliament in the round. My The NMC has decided to increase its fees for nurses assumption—perhaps he will correct me if I am labouring and midwives from £100 to £120. The rise was effected under a misapprehension—was that the Health Committee through the Nursing and Midwifery Council (Fees) 401WH Nurses and Midwives: Fees23 MARCH 2015 Nurses and Midwives: Fees 402WH

(Amendment) Rules Order of Council 2014, which equivalent to 2.3%. Nursing staff earning up to £40,558 came into force on 1 February. Although the NMC is who are not at the top of their pay band are still eligible an independent statutory agency, the Government have to receive an incremental increase. made it clear that they expect the NMC council to have Let me take issue with the point that the Government clear justification for, and to consider nurses’ and midwives’ are not looking after the lowest paid. The pay offer financial constraints when making, decisions on fees. I specifically makes sure that the increases the system can will say a little more in a moment about that and about afford are targeted at the lowest paid. Those earning the importance of the Bill to modernise the NMC’s more than £56,000 are more able to cope with the constitution. challenges of pay restraint. We are supporting the poorest The NMC has consulted its registrants on the proposed in the system most, and we are making the highest paid fee rise, but I am aware of the strong body of opinion bear more of the burden. Finally, the bottom pay point among those who opposed it, and that has been expressed will be abolished, seeing the lowest pay rise from £14,300 in the debate and in the number of people who have to £15,000, with about 45,000 on the lowest two pay signed the petition. The NMC says that it has not taken points benefiting. its decision lightly and that it has considered the responses to the consultation in detail and carefully listened to the Mr Anderson: I am interested in the average figure the issues raised, and I have no reason to doubt that. Minister cites. Obviously, if he could give us his figures However, I remind hon. Members that the NMC’s first now, I would be happy to look at them, but could he duty must be to deliver its core regulatory functions and also put them in the Library? The average he gave seems to fulfil its statutory duties to ensure public protection, very high, when we are talking about the lowest point and the fee rise must be justified against its core duty. on the scale being £14,500. The average is more than Let me touch now on the Government grant, which is double that—the scale must be heavily loaded at the important. I appreciate that, since the NMC was established top, which is not my experience from working in the in April 2002, there have been a number of increases in public sector. its annual registration fee, and I appreciate the impact that that has had on dedicated nurses and midwives George Freeman: I will happily make those data working long hours in difficult roles to provide excellent available to the hon. Gentleman and put them in the care. That is why, in February 2013—more than 10 years Library. They are from the NHS staff earnings survey’s after the increases started in 2002—the Government provisional statistics by staff group in England. awarded the NMC a substantial, £20 million grant to It is worth noting that UK taxpayers can claim tax ease the pressure. relief via Her Majesty’s Revenue and Customs on professional subscriptions or fees that they must pay to One purpose of that grant was to allow the NMC to carry out a job. That includes the registration fee paid protect nurses and midwives—particularly lower paid to the NMC. Nurses and midwives on a salary of nurses and midwives—from the full impact of a proposed £30,000, confronted with a fee increase of £3, can annual registration fee rise. The grant meant that, in therefore claim tax relief on it. A basic rate taxpayer 2013, the NMC was able to raise its fee from £76 to would be eligible for £24 tax relief on the £120 fee. £100 and not to £120, as originally intended. With a week before Parliament dissolves, the Government have Grahame M. Morris: Could I press the Minister? He no plans to give the NMC a further grant to subsidise suggested that things are tight. We have just had the the 2015 registration fee increase. Given that we continue Budget statement from the Chancellor. We had a list of to have to make tough decisions to put the economy give-aways in Tory marginals—£2.5 million for the RAF back on track, and that we have given the NMC £20 million, museum in Hendon, moneys for projects in Blackpool it now needs to work out internally how best to allocate and a new theatre in Pendle—but would that money not the fee increase, which I should remind hon. Members have been better spent helping to subsidise the registration is equivalent to £3 per member if it is spread equally fees of nurses working part time and of women returners, among them. who earn considerably less than the average figure the I am pleased to say that, as part of the broader Minister cited? package of measures the Government are putting in place to support the lowest paid workers in the NHS, all George Freeman: I note with relish and interest what the major NHS trade unions accepted the Government’s I assume is official Opposition policy—that they do not pay offer on 9 March. It will be implemented from support the Chancellor’s announcement about funding 1 April, giving more than 1 million NHS staff, including for the RAF museum. The point that I am trying to most nurses and midwives, a 1% pay rise, without make is that he already set out in the autumn statement risking front-line jobs or costing the taxpayer more a serious pay commitment to the lowest-paid staff in money. That means our lowest paid staff will receive the the NHS, which I was summarising. biggest rise. I am glad that the hon. Member for Easington (Grahame I want to update hon. Members on the changes, M. Morris) has raised the issue of the Budget. The because they are an important wider consideration against reporting on it has made it clear that for a pre-election which to view the impact of the fees. For the lowest Budget it was, far from making give-aways, surprisingly paid, the 1% rise will mean an increase of up to 5.6%, or light on them, and was very much “steady as she goes”, an extra £800 in their pay packets. I have looked at the continuing to pare down the deficit with fair tax reform. salary figures, and the average, ending March 2014, for The truth is that we have cut income tax for 27 million nurses, midwives and health visitors—the people we are people, and particularly for the lowest-paid nurses and talking about—is £31,000. They will get the 1% rise, midwives. The impact of that is nearly £900 a year from which is an extra £800. Importantly, staff earning between changes to the personal allowance. That is not fashionable £15,000 and £17,000 will get an extra £200, which is stuff that captures the top line in red-top newspapers, 403WH Nurses and Midwives: Fees23 MARCH 2015 Nurses and Midwives: Fees 404WH

[George Freeman] change to reform the way it operates. On 11 December 2014 an order made under section 60 of the Health Act but nurses and midwives do not exist in isolation. They 1999, amending the Nursing and Midwifery Order 2001, have the NHS pay deal but also the important tax came into force. Those changes to the NMC’s governing allowance changes introduced by the Chancellor. The legislation will enable it to introduce more effective Government are taking pressure off the lowest-paid fitness-to-practise processes, while not lessening the public workers in the NHS and elsewhere. Viewed in the round, protection it provides. those changes give us a record that we can be proud of, A key amendment to the NMC’s governing legislation albeit within a difficult set of funding requirements. enables it, through its rules, to delegate the decision-making functions currently exercised by its investigating committee Mr Anderson: Will the Minister give way on that to its officers known as case examiners. The intended point? effect is to speed up and therefore reduce the cost of early-stage fitness-to-practise proceedings, as it will not George Freeman: I really need to make progress. be necessary to convene the full investigating committee to consider every allegation of impairment of fitness to Mr Anderson: We have got an hour and a half. practise. That should result in financial savings to the NMC as well as greater consistency in decision making. George Freeman: I happily give way. I think we would all welcome that. The rules that bring those changes into effect come into force on 9 March. Mr Anderson: The Minister made a point about tax, The section 60 order has helped the NMC by providing and that is welcome, but does he deny the fact that a degree of modernisation of its legislation. However, overall, people, including those we are talking about, there is still much to do and that is why we asked the are worse off under the present Government as a result Law Commission in 2011 to review the whole framework of VAT rises and other rises across the economy? People of legislation underpinning professional regulation. are worse off than when they came to power. The report was published last year and we published the Government response in January. I am aware that George Freeman: I am glad, again, that the hon. the decision not to progress a professional regulation Gentleman raises that, because fortunately the Chancellor Bill to take forward the thinking in the report in the was able to confirm that the Office for Budget Responsibility current parliamentary Session was a disappointment to has confirmed that finally people in this country are the NMC, as it was to us. We want to move on, but better off, after a very difficult period. I am not going to parliamentary time, as you know, Mr Hollobone, is an pretend that it has not been difficult. The reason was eternal constraint on Government’s ability to implement. that we inherited a chronic legacy of debt, deficit and However, that decision provided an opportunity to structural deficit, which was tackled by the previous invest time in getting that important legislative change Government nowhere less than in health care. That right, for the benefit of those who will be affected by it. created a situation in which, despite a growing economy, Of course, it will not restrict the NMC’s ability to we face a huge structural challenge, exacerbated by implement its own internal modernisation and efficiency demographics. programme, or to decide how to deal with the internal This year there are 1 million more pensioners in the allocation of its fee obligations to the PSA. It is free to system—1 million more people needing and generating do that. high health demand. I do not hold the Opposition responsible for that. However, the lack of reform and Andrew Gwynne: The Minister will know that a number the structural issues at the heart of the health service, of the changes and efficiencies that the NMC would which mean that the health structural deficit is growing like to implement require further legislative change. faster than the general economy, have left us with a With those changes, it could free up some of its £10 million challenge. We need to tackle that. reserves, to offset some fee charges. Could we give the As the hon. Member for Blaydon pointed out, the NMC some certainty, on a cross-party basis, that, whoever NMC has stated that there has been a significant rise in forms the next Government, we will bring in those its costs, because of fitness-to-practise referrals, which changes? That would give it the certainty that it could are up more than 100% since 2008-09. Since 2008-09 it use the reserves to offset the fee increases. has raised its fee by only 63%, making up the bulk of the difference in cost through a programme of efficiencies. George Freeman: I am delighted to confirm that the Without those it would have had to scale back its Government remain committed to introducing primary fitness-to-practise activity, or generate additional costs legislation to address those wider reforms to the system earlier. The NMC has provided assurances that it is of professional regulation; and it sounds as though, if committed to continuous improvement in carrying out the hon. Gentleman and I are in our posts then, that its regulatory functions and will continue to deliver may well have cross-party support. That would be an more efficient ways of working to maximise the value of important measure, and our inability to pass it before registration fees and to keep them at the lowest level the end of this Parliament is not a sign of its importance; possible while enabling it to fulfil its statutory duty. The it is merely a function of the challenge of the availability NMC is a £70 million-a-year organisation with substantial of parliamentary time. opportunities to put efficiencies in place, to reduce the It is worth pointing out that the performance of the cost of the £3 extra cost on its members. NMC has been challenged and highlighted by a number As to the need to update the NMC constitution, the of bodies, including the Select Committee, but also by Government have worked with it to make changes to its some of its members—nurses and midwives. It has had legislation. We have made good progress with legislative a troubled past with its performance, which is why 405WH Nurses and Midwives: Fees23 MARCH 2015 Nurses and Midwives: Fees 406WH

Ministers commissioned the predecessor body of the of frustration about the slow pace of basic procedures, Professional Standards Authority, the Council for such as getting registration and coming back to the Healthcare Regulatory Excellence, to undertake a full profession. strategic review in 2012. That review put forward 15 high- My hon. Friend the Member for Congleton (Fiona level recommendations for improvement in the delivery Bruce) cogently and clearly told the story of one of her of the NMC’s regulatory functions, and set an expectation constituents, a nurse, and spoke about the bureaucratic that demonstrable improvements should happen within and clumsy registration processes. There is a common two years. message for the NMC: it has a £70 million budget, so it In 2014, the NMC commissioned KPMG to undertake ought to be able to run a less inefficient, quicker organisation an independent review to assess its progress, and KPMG and direct resources away from bureaucracy and towards concluded that the NMC had made a substantial number dealing with fitness to practise, in which there is likely of improvements, which cumulatively placed it in a to be a growing public interest. It is good that the public much stronger position than in 2012. That improvement want to drive up standards and be clear about patient was recently recognised by the Secretary of State for safety across the professions. Health in his oral statement to the House about the On the issue of revalidation, we believe that nurses Morecambe bay investigation. However, the NMC itself and midwives have some of the most important jobs in recognises that there is still much more to be done, and the NHS. They care for patients every day, so it is so the processes of improvement continue. Ministers crucial to ensure that they are up to speed with the have made it clear that we expect the NMC to work standards that the public and patients expect. We support towards and ensure compliance with the standards of the NMC in its drive to introduce revalidation, which good regulation, and to continue looking for more will improve safety and the quality of care. It will efficient ways to work. reassure patients that nurses remain fit to carry out Hon. Members on both sides have raised points that I their vital work. want to deal with. Several mentioned how the fees of The challenges of the serious debt and structural part-time nurses are dealt with by the NMC, which is an deficit inheritance that we as a society are confronting interesting point. It is not for me to tell the NMC how mean that everyone in our public services has to deliver to deal with it. That is for the NMC to decide, as an more for less within the current financial constraints independent body, but I should have thought that, on and to ensure that standards continue to improve. Across the basis of pure justice and equity, members who do our public services—indeed, across our general economy— not work full time and therefore do not earn the same as there are extraordinary levels of productivity gain day those who do, and who do not generate, even on a pari in, day out. The general economy runs at 2% to 3% passu basis, the same level of exposure to the costs or productivity growth every year with its eyes shut. The their organisation, would not have to pay the challenge is to create in the public sector the right same costs. However, that is of course a matter for the climate and leadership conditions so that our great NMC. public servants can deliver similar productivity. The hon. Member for Blaydon raised several questions, That said, we recognise the importance of the level of including whether the NMC will review its guidelines the NMC registration fee to all its registrants, which is on fitness to practise, and provide guidance on fitness to why the Government have assisted the NMC to introduce practise cases. Those are all matters for the NMC as an rules that will allow registrants to pay their registration independent body, but new legislation means that nurses fee in instalments. Those rules came into effect on can pay fees in instalments, and that fees can reflect 9 March, and they enable the front-line nurses and part-time work. The hon. Gentleman made an important midwives who have to pay the £3 extra fee to schedule point in his speech about part-time nurses. payment of the total £120 annual fee across the whole year. The hon. Gentleman also spoke about revalidation. To maintain the NMC’s independence from the The truth is that the majority of the cost of nurse Government, its registration fee must cover the full revalidation will fall on the employers that will be costs of its regulatory activity. I am sure that nobody in responsible for supporting their staff through revalidation. any corner of the House believes that we should downscale The revalidation drive is an important means of raising or curtail the quality of that regulatory work merely on professional standards, and it will ensure that the public the basis of members’ unwillingness to pay. The principle have faith and confidence that we are raising standards is that health care professionals should fund the regulation for nurses and midwives. of their profession to maintain the confidence of the public and patients. However, it is for the NMC to Grahame M. Morris: The NMC sometimes takes two decide how to meet its statutory functions and protect years to complete some fitness to practise cases. The patients and the public, which is our paramount Select Committee recommended that it should aim to consideration. The NMC recognises that it needs to do complete them all within nine months, which is not an more to maintain the confidence of registrants, patients unreasonable request. That is an incredible amount of and the public in its performance, and to continue to time and resource to spend on those cases. improve its operation, effectiveness and efficiency. I am grateful for the chance to correct the record and George Freeman: The hon. Gentleman makes a clarify that the Government are prioritising the lowest-paid really good point; I was trying to make a similar point workers in the NHS; we applaud and support their myself. We have encouraged the NMC and made it commitment. I want to take this opportunity to reaffirm easier to speed up its processes. Anecdotally, I know the Government’s gratitude, thanks and support for from speaking to nurses and midwives that there is a lot their work. Despite the difficult funding constraints, in 407WH Nurses and Midwives: Fees23 MARCH 2015 Nurses and Midwives: Fees 408WH

[George Freeman] 6.28 pm this Parliament we have consistently supported the lowest- Mr Anderson: Thank you, Mr Hollobone; nothing paid workers in the NHS, rather than the best paid, and would give me greater pleasure than to take the pith we have reflected that in the latest pay settlement. with you any time you like. At the heart of this measure are some important I thank my hon. Friends for speaking in the way they points that need to be reiterated. There is a long-standing have. My hon. Friend the Member for Easington (Grahame convention that health care professionals pay their own M. Morris) is hugely respected across the House, particularly professional registration fees. The reform will increase for his work on the Health Committee. I assure him and the registration fee paid by nurses and midwives, whose the hon. Member for Foyle (Mark Durkan) that when I average salary is £31,000, by £3, against their annual said that I was not sure about accepting Government registration fee of £120. The Government have given money to support the NMC, that was not to say, “Don’t the NMC a £20 million grant to help to offset those do it.” I am not in a position to say it should not be costs. The NMC has made it clear that it is able to pay done; it is down to the professionals to work out what for a substantial element of the increases through its their view is. ongoing efficiency programmes. The principal driver of The intervention from the hon. Member for Congleton cost is the growing public interest in fitness to practise (Fiona Bruce) was absolutely brilliant. She spoke about and the cost of handling such cases. We are helping the the real world. The big issue is not so much about NMC, not least by helping it to deal with those cases people paying the registration fees; it is about what they much more quickly, as the hon. Member for Easington are getting for their money, and the hon. Lady showed (Grahame M. Morris) highlighted. exactly what they are getting. Her constituent was breaking We should not hold back the public’s interest in the law by working without being on the register, in fitness to practise. It is part of a new culture of transparency genuine ignorance. She could have been brought up on and accountability across the system, post the Francis disciplinary or, potentially, legal charges. That is real report, and the Secretary of State and many others the worry: what are people getting for their money? want to encourage it in the modern NHS. The NMC is It is always a great privilege for me to work with the an independent statutory body that is accountable to hon. Member for Foyle, as I have done over almost Parliament, not Ministers. 20 years. Some of the greatest work I did before I came I welcome the chance to inform the debate, particularly into the House was with health service workers in the for NMC workers and for the many nurses and midwives north of Ireland, who really were at the cutting edge at who have taken the time to sign the Government’s some of the worst times in this country’s history. It is e-petition form and, through the Backbench Business brilliant to work with him, and he more than anybody Committee and Members in the Chamber, to bring this else pressurised the Backbench Business Committee to issue to the Floor of the House. We as Ministers are get this debate held today. very aware of the needs of the lowest-paid NHS workers, My hon. Friend the Member for Denton and Reddish who do an extraordinary job for us. That is why, in the (Andrew Gwynne), as always, robustly defended our latest pay deal, we reflected that, with a 5.6% increase NHS and our party’s plans going forward. I thank the for the lowest earners and a 1% pay rise, which equates Minister for his words, but warm words do not put to £300 in the pockets of the nurses and midwives we bread on the table. The health service workers who I are talking about. represent, who I spoke to on the picket lines before The measures in the Budget and the Chancellor’s Christmas, told me that they were organising shoebox wider tax reforms, such as raising the tax threshold for collections for their members in their workplace at the the lowest-paid workers, will take more than 4 million same time as the chief executive of their trust was of the lowest-paid workers out of tax altogether. The getting a 17% pay rise and the foundation trust members lowest-paid nurses and midwives are now £900 a year were getting an 88% increase in their allowances. That is better off as a result of the increase of the personal the real world out there; that is the world where we are allowance to £11,000. That is a substantial sum, compared “all in this together.” with the £3 fee increment. The hon. Members for Denton The Minister said that the regulatory bodies would and Reddish and for Blaydon are eloquent and persuasive have to pay the PSA, but ultimately it would surely be men, but even they cannot suggest that a £3 fee on the registrants who cough up. It is like the brewery health care professionals earning £31,000 represents a saying to the landlord of a pub, “You’re going to have crisis in the NHS. They rightly said that it is important to pay me more for your beer,” and then where does the that the NMC quickly develops its efficiency and upgrades landlord get the money from? Obviously he puts the its internal mechanisms, and they made a number of price on a pot or a pint. Talk about having a “pith up” interesting points about how that can be done to maximise in a brewery—well, this is clearly one of those things. It fairness for the lowest-paid workers. I want to take the is quite clear that the cost will fall on the people on the opportunity to repeat that the Government are absolutely front line. on the side of those workers. I am not sure whether I lost track of the Minister, but I do not believe he answered the question he was asked Mr Philip Hollobone (in the Chair): It was a real treat a number of times about why the Government did not for me to have been in the Chair to hear the Minister’s introduce a Bill. He mentioned that something happened response, but a great misfortune not to have been in the in December, and perhaps that is related—I am quite Chair to have heard the introductory remarks of the happy for him to come back and put us right—but I am hon. Member for Blaydon (Mr Anderson). As recompense, not sure whether what happened in December gave the he now has two or three minutes to pithily sum up the same rights to the NMC to do what it would have done debate, largely for my benefit. if the Bill on the regulation of health and social care 409WH Nurses and Midwives: Fees23 MARCH 2015 Nurses and Midwives: Fees 410WH professionals had gone through. I asked him to reflect calling for the fees to be stopped, but for the system to on that, as did my hon. Friend the Member for Denton be reviewed to make sure that it is working properly. Let and Reddish, but I do not believe that happened. us sort out the fitness to practise issues. Seventy-seven per cent of the time is spent on that, but the problem is I do not want to repeat what the Minister said in his that they are all after-the-event interventions. If the job speech, but it did not address the issues. He said that was done beforehand, that would not only save money, £3 on people’s registration fees is not a crisis—he said but stop incidents that have an impact on the professionals that to me and my hon. Friend the Member for Denton concerned and the people they look after. and Reddish. We did not say that, but I will tell him who did: the 114,000 people who signed the petition; Question put and agreed to. the people out there who are struggling to get by in the health service; the people we all owe a duty to. We 6.32 pm should be putting this right. We are not necessarily Sitting adjourned.

101WS Written Statements23 MARCH 2015 Written Statements 102WS Written Statements TREASURY

Convergence Programme Monday 23 March 2015

The Financial Secretary to the Treasury (Mr David CABINET OFFICE Gauke): Article 121 of the Treaty on the Functioning of the European Union (TFEU) requires the UK to send an annual Convergence Programme to the European Office of the Commissioner for Public Appointments Commission reporting upon its fiscal situation and policies. The UK’s Convergence Programme will be sent to the European Commission by 30 April. This deadline The Minister for the Cabinet Office and Paymaster was set in accordance with the European semester timetable General (Mr Francis Maude): The Government have for both convergence and national reform programmes. asked Sir Gerry Grimstone to lead a review of the The Government support the European semester which Office of the Commissioner for Public Appointments. plays an important role in EU surveillance of economic This will be the first review of the Office’s status and and fiscal policy. role since the role of the Commissioner for Public Section 5 of the European Communities (Amendment) Appointments was created by the Public Appointments Act 1993 requires that the content of the Convergence Order in Council 1995 on 23 November 1995. Although Programme must be drawn from an assessment of the the Office of the Commissioner for Public Appointments UK’s economic and budgetary position which has been is technically not a public body, the review will follow presented to Parliament by the Government for their the guidance on conducting a triennial review. approval. This assessment is based on the Budget 2015 The review’s purpose will be to establish the continuing report and the most recent Office for Budget Responsibility’s need for the Office, and to examine its scope of Economic and Fiscal Outlook and it is this content, not responsibilities. In particular the review will consider the Convergence Programme itself, which requires the the Office’s role in regulating the processes by which approval of the House for the purposes of the Act. Ministers make appointments to the boards of certain Article 121, along with Article 126 of the TFEU, is public bodies and certain statutory offices. The review’s the legal basis for the stability and growth pact, which is terms of reference have been placed in the Library of the co-ordination mechanism for EU fiscal policies and the House. requires member states to avoid excessive Government Sir Gerry will seek input from a wide range of individuals, deficits. Although the UK is bound by the stability and including current and former Ministers, current and growth pact, by virtue of its protocol to the treaty former officials and advisers, the Government’s Non- opting out of the euro, it is only required to “endeavour Executive Directors, the Office of the Commissioner for to avoid” excessive deficits. Unlike the euro area member Public Appointments, Parliament, public bodies and states, the UK is not subject to sanctions at any stage of those who have gone through an appointments process. the European semester process. The review will report in the summer. Subject to the progress of parliamentary business, TERMS OF REFERENCE. The role of the Commissioner debates will be held on 24 March for the House of for Public Appointments was created by the Public Commons and on 25 March for the House of Lords in Appointments Order in Council 1995 on 23 November order for both Houses to approve this assessment before 1995, following recommendations made by the Committee the Convergence Programme is sent to the Commission. on Standards in Public Life (under the chairmanship of While the Convergence Programme itself is not subject Lord Nolan). We are now twenty years on, and this to parliamentary approval or amendment, I have deposited provides a suitable opportunity to review the role of the advanced copies of the document in the Libraries of Commissioner and the processes around public both Houses and copies will be available through the appointments. In the light of the range and diversity of Vote Office and Printed Paper Office. public appointments, it is important to ensure that the The UK’s Convergence Programme will be available procedures are both effective and proportionate. The electronically via HM Treasury’s website after it is sent review will be led by Sir Gerry Grimstone and will to the European Commission. report to the Minister for the Cabinet Office. [HCWS447] [HCWS448]

COMMUNITIES AND LOCAL GOVERNMENT “The State of the Estate in 2013-14” Local Audit The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude): I have today laid before The Secretary of State for Communities and Local Parliament, pursuant to section 86 of the Climate Change Government (Mr Eric Pickles): Today, the final Act 2008, “The State of the Estate in 2013-14”. This commencement order of the Local Audit and report describes the efficiency and sustainability of the Accountability Act 2014 was signed off. This means Government’s civil estate and records the progress that that the residual Audit Commission will close its doors Government have made since the previous year and on 31 March, paving the way for local audit appointment since 2010. The report is published on an annual basis. within a new, leaner framework which, while it retains [HCWS450] the knowledge and expertise of the commission where it 103WS Written Statements23 MARCH 2015 Written Statements 104WS has value, will create more freedom and flexibility for government transparency code requires councils to place local public bodies, replacing top-down inspection with online important local information about spending and local accountability. decisions; we have introduced a lighter-touch transparency Hon. Members will recall that in August 2010, I code to smaller local bodies like parish councils so announced plans to disband the Audit Commission and people can access key spending, governance and meeting refocus audit on helping local people hold local public information; we have changed the law to allow filming bodies to account for their spending decisions. The new and reporting of public council meetings by the press system coming into effect will sweep away the old and public; a new common period next year will allow top-down regime, offering greater responsibility and local ratepayers to inspect councils’ accounts––a right choice for local councils, replacing central bureaucracy more powerful than freedom of information, and it is with local democracy, while upholding the same high our intention to legislate in the next Parliament to allow standards of audit. those local inspection rights to be exercised by members of the press who may not otherwise live or work in the While this quango was borne of good intentions, council area. local government has changed since the 1980s. The commission had become a regulator of local government, I am confident that these reforms will protect taxpayers’ micro-managing local services and imposing excessive money and ensure high standards in local government. red tape, from best value performance indicators, to [HCWS451] comprehensive performance assessment to comprehensive area assessment. Such box-ticking exercises did not champion the public’s interests, as evident by the fact the Audit Commission bullied and cajoled councils into Local Government Update axing weekly rubbish collections in order to meet Whitehall targets set by Labour Ministers. Despite a slogan of “protecting the public purse”, it The Parliamentary Under-Secretary of State for wasted public money on ill-advised spending decisions, Communities and Local Government (Kris Hopkins): I such as a luxury London hotel to house its chief executive, would like to update hon. Members on a number of a best practice audit conference with a string quartet, actions taken by my Department relating to local drinks receptions for its “alumni”, fine dining at the government: most expensive restaurants using corporate credit cards, Updating statutory notices for the 21st Century board dinners in oysters bars (losing the receipt in the Statutory notices are an important way of ensuring process), and hiring lobbyists to “combat the activities that local residents are informed of decisions that affect of Eric Pickles” (arguably, one of the least successful their property and lives. Public bodies must do more lobbying campaigns in history). than provide just ‘an obscure notice’ on the depths of a We therefore abolished the commission’s interfering council website, with local newspapers retaining a key and ineffective inspection regimes in 2010, and in 2012 role. Last year, my Department invited bids for innovative the remaining in-house audit contracts were successfully approaches to be taken to both protect local newspapers outsourced, saving £250 million over five years. The and provide essential information to the public in new Royal Assent of the Local Audit and Accountability ways. Act in January 2014 put the legal framework in place to We have now announced almost £1 million of funding finish the job. Our latest estimates for the savings to for 24 local pilot programmes as part of efforts to help taxpayers have increased to £1.35 billion over 10 years, councils bring their public information requirements with councils pocketing the bulk of the savings. into line with the modern media. We have backed My Department will also this week make the necessary proposals from both councils and local newspaper groups transfer schemes to provide continuity for essential which embrace new technology and innovation to improve roles in the local audit system. The National Audit the provision of vital information to the public. Office will set the standards for public audit and take on The pilots include collaborations between councils responsibility for the code of audit practice, with the and local media organisations, tests of new technology Financial Reporting Council and professional accountancy such as mobile phone applications and social media, bodies monitoring the quality of audit as they already and consultations with local people over how they want do for the private sector. The recent inspection by PwC to receive information. into the London borough of Tower Hamlets illustrates We are committed to supporting an independent free how a private firm can provide robust advice and analysis press, and to ensuring that local taxpayers are better without fear or favour. informed about council decisions that affect their lives. The Cabinet Office will assume responsibility for the We look forward to seeing the results. The pilots will national fraud initiative, joining up its existing anti-fraud run from March 2015 to the end of August 2015. work. Public Sector Audit Appointments Ltd is the Calling time on inflated golden goodbyes transitional locally led body set up to manage the My Department has previously sought the views of existing audit contracts until they expire ahead of full the local government sector on reforms to the legal local appointment of auditors in 2017. This new streamlined minefield that can pressure councils into giving large regime mirrors the framework already used for the pay offs to chief executives they want to dismiss. private sector, while maintaining the high standards of Slow and costly bureaucracy requires councils to public audit. appoint a “designated independent person”, usually a The localisation of audit is complemented by other Queen’s Counsel, to review dismissal and disciplinary transparency reforms to increase local accountability cases for chief executives. Councils seeking to dismiss a and empower an army of armchair auditors. The local chief executive for misconduct or poor performance 105WS Written Statements23 MARCH 2015 Written Statements 106WS have in some cases paid out inflated lump sums to avoid tribunal before any power of entry. It is intended that the cost of taking this bureaucratic route. Local government this will create a considerable road block and check and estimates the review process can cost at least £100,000 balance against use of the power. in legal fees, not counting independent investigation This action builds on steps we have taken to cancel costs and salary for the suspended officer. One previous the last Administration’s plans for a council tax revaluation case cost £420,000 and took 16 months to adjudicate. in England, and terminate the ‘Big Brother’ council tax Ministers believe decisions by full council ensure proper revaluation database being drawn up by the Valuation democratic accountability, without the need for a centrally Office Agency. dictated process. Cutting red tape on councillors We are laying this week the associated secondary Ministers in my Department have agreed with colleagues legislation which will reduce the unnecessary and costly in the Ministry of Justice to take forward steps to bureaucratic process for councils to take decisions about remove the annual fee that many councillors are required disciplinary matters, including dismissal, of the most to pay to register as data controllers under the Data senior staff. Protection Act. Instead, local authorities will undertake They will require such decisions to be taken transparently the notification process itself as part of their local by full council; and when making such a decision, authority-wide registration, and individual councillors require the council to consider any advice from a panel will be exempt from the fee. This will remove an effective of independent persons. These are the independent ‘tax on volunteering’. Ministers have asked officials to persons appointed for the purposes of the members’ draft the necessary secondary legislation in purdah, conduct regime under the Localism Act 2011, and, with a view to laying the amending legislation early in where possible, must be local government electors for the next Parliament. the area concerned; there will be restrictions against I am placing copies of the associated documents in paying inflated expenses for such advice. the Library of the House. The reforms give councils the power to decide on the [HCWS452] best disciplinary process that will deliver value for money for local taxpayers, while retaining independent scrutiny and accountability to local people. EDUCATION My Department will also be shortly be publishing guidance to local government on the use of severance agreements and on ‘off-payroll’ arrangements, reflecting Equality and Human Rights Commission reforms we have introduced at a civil service level to protect taxpayers’ interests. The Parliamentary Under-Secretary of State for Women Protecting local government against cyber threats and Equalities (Jo Swinson): I am today laying before My Department have been working jointly with security Parliament a copy of the Strategic Plan Revision for experts and local government colleagues to develop 2015/16 which has been prepared by the Equality and guidance for local authority leaders and their teams on Human Rights Commission (EHRC), as required by cyber resilience. It is very important, as local people Section 4 of the Equality Act 2006. The Commission increasingly access local service electronically, that they will next revise the Strategic Plan by March 2016.1 am have confidence that their information will be safe and also today placing in the Libraries of both Houses the services they use can be relied upon. We are publishing copies of a revised framework document agreed between guidance this week on the steps that local councils the Government Equalities Office and the EHRC. should take to build resilience. [HCWS446] Review of Arms Length Bodies We are announcing the start of the triennial review of the valuation tribunal service and the valuation tribunal ENERGY AND CLIMATE CHANGE for England. The valuation tribunal considers appeals from council taxpayers and business ratepayers about Oil and Gas Authority: Consultation on Levy Design the levels of council tax and non-domestic (business) rates. The review will examine their role, whether they are operating efficiently, and whether their control and The Secretary of State for Energy and Climate Change governance arrangements continue to meet the recognised (Mr Edward Davey): Today I am launching a consultation principles of good corporate governance. on the design of the levy to fund the new Oil and Gas Reforming council tax and business valuation practices Authority (OGA). Following a statutory consultation, my Department We are working at a great pace to establish and has now published its response and associated secondary empower the OGA to be a strong and influential regulator, legislation on curtailing the powers of entry of the equipped with the necessary powers to regulate and Valuation Office Agency, using powers under the Protection steward the UK continental shelf. of Freedoms Act 2012. This Government believe that To ensure the OGA is sufficiently resourced to deliver the privacy and rights of homeowners and businesses its remit of maximising economic recovery from the should be protected and strengthened wherever possible. UKCS, and in line with the established precedent for These reforms include protection from unnecessary and other regulatory bodies, we have determined that the intrusive visits into a taxpayer’s home or business, and OGA should recover its costs from the companies who introduce a new requirement for consent from a First-tier benefit from its services. 107WS Written Statements23 MARCH 2015 Written Statements 108WS

While the Government have agreed to contribute TRANSPORT £3 million per year for five years starting from April 2016 to ensure the OGA is well funded from the outset, HS2 Update the OGA’s ongoing costs will be met by a combination of the extant fees and charges regime, and a new levy on industry. We agree with industry that it is important that the levy is simple, transparent and cost-reflective. The Secretary of State for Transport (Mr Patrick McLoughlin): Following the publication of”’HS2: On This consultation sets out details of the allocation track”[1] on 12 March which set out the good progress methodology and the proposed levy rates. In line with we have made on HS2 over the last five years, I thought the early focus of the OGA, we have determined that it would be helpful to give an update on the latest initially we will levy only offshore petroleum licence project developments. holders as (in the short term) the OGA will incur costs related to these licence holders. We intend that the The hybrid Bill for the first phase of HS2 is making OGA will begin collecting the levy in October 2015, good progress through Parliament. By the end of today subject to regulations. the High Speed Rail (London-West Midlands) Select Committee will have sat for 76 days and heard almost The consultation will be open for four weeks and will 400 petitions, almost twice as many as the Crossrail conclude on 20 April 2015 and the Government welcome Committee heard in 21 months of sittings. I am sure the views on the proposals and invites comments through whole House will welcome the commitment and seriousness the consultation process. with which the Committee has gone about the very I will be depositing a copy of this consultation in the important task of ensuring that the project strikes the Libraries of the House. right balance between the needs of affected communities [HCWS443] and the environment, and the long-term needs of the country as a whole. We are continuing to develop our plans for the JUSTICE redevelopment of Euston station and are working with the local community to ensure we keep disruption to a Property/affairs: Missing Persons minimum. On 18 March we signed an agreement with the London Borough of Camden that fulfils our pledge to social rented tenants affected by Euston’s redevelopment. The Parliamentary Under-Secretary of State for Justice We have now ensured that replacement housing will be (Mr Shailesh Vara): My noble Friend the Minister of available for all 136 social rented properties in Camden State for Civil Justice and Legal Policy (Lord Faulks affected by HS2. QC) has made the following written statement. On 20 March we published a report on the Northern “I am pleased to announce that following its consideration of Transport Strategy. Developed jointly with Transport the responses to the consultation paper published by the Ministry for the North, the strategy sets out our ambition for a of Justice on 27 August 2014 the Government have decided to world class northern transport system, as well as the create the new legal status of guardian of the property and affairs of a missing person. concrete steps we are taking to get there. The Government have already committed £13 billion of investment to The Government strongly support the creation of the new legal status and will now prepare the necessary primary and improving connectivity across the north. The report set secondary legislation and guidance to enable the proposed scheme out how we will work with Transport for the north to to be implemented as quickly as possible. In this task we will build on this investment, including developing a new continue to work with stakeholders to design a scheme that can be “TransNorth” rail system to slash journey times between implemented at minimum cost and operated with minimum problems. major northern cities and taking immediate action to The timing of the introduction of the legislation will be simplify rail fares across the north. decided by Ministers in the next Parliament. Nonetheless, given In addition to this, I have set out my commitment to the importance of this measure, the strong support to date from get HS2 to the north sooner, delivering benefits to all sides and its own commitment to bringing forward legislation as soon as possible, the Government hope that legislation will be businesses and individuals more quickly.Therefore, subject brought forward without delay in the new Parliament. to further analysis and decisions on the preferred route, The key features of the proposed scheme will be: I intend to prepare a dedicated hybrid Bill to lay during A guardian will be required to act in the best interests of the the next Parliament with a view to bringing HS2 to missing person and in this respect will be subject to duties similar Crewe earlier than planned. to those of a trustee. Finally, we have moved another step forward to realising The guardian will be supervised by the Office of the Public our ambition of creating a world-class railway, with the Guardian and will be required to file accounts in much the same appointment by HS2 Ltd of award winning designer way as a deputy appointed under the Mental Capacity Act 2005. Sadie Morgan as the Chair of an independent design A guardian will be appointed by a court on application by a panel, which will advise on the delivery of the HS2 person with a sufficient interest in the property and affairs of the Design Vision, published today. This will set the bar for missing person. all future HS2 design. The appointment will be for a period of up to four years with I welcome this progress and am pleased to be able to the possibility of applying for an extension for up to another four years. report that the momentum of the HS2 project remains The replies to the consultation are described and analysed in strong to deliver a railway which will be an engine for the response paper published by the Ministry of Justice today. growth in our country. [1] I have placed a copy of the response paper in the Library of Department for Transport (2015), HS2: On track, each House of Parliament. It is also is available at https:// https://www.gov.uk/government/publications/hs2-on- consult.justice.gov.uk.” track [HCWS449] [HCWS445] 109WS Written Statements23 MARCH 2015 Written Statements 110WS

Rail Franchising: Great Western will also support the Government’s commitment to get more people into work by providing an annual fund and training opportunities for young and unemployed people, The Secretary of State for Transport (Mr Patrick as well as providing 85 modern apprenticeships by the McLoughlin): Today I have announced the successful franchise end. conclusion of negotiations for a new directly awarded New passenger satisfaction, punctuality and cleanliness franchise agreement with First Greater Western Limited targets will be introduced on the franchise. We expect (FGW). This deal will see FGW continue to run passenger FGW to continue to provide improving standards for rail services on the Great Western franchise until the its 99 million annual passengers including the provision start of the services on the next competed franchise, of free Wi-Fi on all train fleets. In addition the company which is expected in April 2019. The direct award will deepen its engagement with communities and secures an operator for the franchise for the three and a stakeholders so that all the users of the franchise can half years from September 2015 (with an optional 13 continue to have a real influence in how it can continue period extension at the Secretary of State’s sole discretion); to improve services. through a period of unprecedented change on the franchise Reaching this agreement with FGW marks a new and the most significant upgrade of infrastructure and chapter for the Great Western railway and builds on the rolling stock for a generation. success of my Department’s rail franchising programme; The passenger benefits secured in this direct award working in partnership with the rail industry to deliver are considerable, taking advantage of this Government’s far better services for passengers as well as value for significant investment in new infrastructure, electrification money for the taxpayer. of the route, new intercity express trains on long distance [HCWS442] routes and new high capacity electric trains in the Thames Valley, which will enable the cascade of diesel WORK AND PENSIONS trains to the west and south west of England where additional capacity is badly needed. Office of Nuclear Regulation: Annual Plan The franchise overall will see an increase in capacity of around 25%, or 3 million seats per year as well as significant increases in service frequency and journey The Minister for Disabled People (Mr Mark Harper): time savings. This will include a two trains per hour My noble Friend The Under-Secretary of State for service to the south west of England, an earlier arrival Work and Pensions (Lord Freud) has made the following into Plymouth, and double the number of trains to written statement: Cornwall. My Department will also work with FGW to Later today I will place a copy of the Office for improve the performance and quality of the rolling Nuclear Regulation’s Annual Plan for 2015-2016 in the stock serving the south west of England, particularly Library of the House. The annual plan will also be for intercity services, during this direct award; to published on the ONR’s website. complement the introduction of the IEP trains. I can confirm, in accordance with Schedule 7, Section Other benefits secured by the direct award include 25(3) of the Energy Act 2013, that there have been no investment of £30 million to create 2,000 more car park exclusions to the published document on the grounds of spaces, additional customer information systems, CCTV, national security. ticket gatelines, and a fund of £2.5 million for station It is also available on line at: http://www.parliament.uk/ access improvements, a £3.5 million station development writtenstatements. match fund, as well as extension of station travel plans [HCWS444] at a further 20 main interchange stations. The operator

11P Petitions23 MARCH 2015 Petitions 12P

women with children and instead decide to increase the Petitions offer of such services to nearer 50% of the overall service provided. Monday 23 March 2015 And your Petitioners, as in duty bound, will ever pray, and c.––[Official Report, 21 January 2015; Vol.591, c. 3P.] PRESENTED PETITION [P001427] Petition presented to the House but not read on the Floor Observations from the Secretary of State for Communities and Local Government: Downsizing of UK visa and immigration services in India and Bangladesh The Government acknowledge the important part that such services can play in local communities. We The Petition of residents of the UK, want to see a strong network of children’s centres in Declares that the Government’s decision to downsize place across the country, offering families access to a the Mumbai Deputy High Commission’s visa services wide range of local, flexible services, tackling disadvantage will inconvenience hundreds of thousands of people; and preparing children for life in modern Britain. further that these changes to one of the busiest visa Local authorities have a statutory duty on children’s centres in the world will move the majority of decision- centre sufficiency and should ensure services are accessible making powers to New Delhi; further that in Dhaka in to all families and young children in their area, with the Bangladesh, visa decision-making powers have been revised core purpose setting out a particular focus on removed altogether which deprioritises the importance those families with the greatest needs. of the UK’s relationship with Bangladesh; further that It is up to local authorities to decide how to organise the decision was made under ‘cost-cutting’ measures as and commission services from children’s centres in their it may take longer for decisions on visas for friends and area, which is why we have given local councils, like families of British Indians and Bangladeshis to be made Northamptonshire, the freedom to target their resources and may cause them to encounter numerous problems where they will best support the needs of local communities. and further that a local petition on this matter was Local authorities have the funding to ensure they can signed by 196 residents of Leicester East. meet their statutory duty to provide sufficient children’s The Petitioners therefore request that the House of centres. Commons urges the Government to immediately review the decision to downsize visa and immigration services Closure of the Seven Stars public house in Sedgley in India and Bangladesh. The Petition of residents of the Dudley North constituency, And the Petitioners remain, etc.—[Presented by Keith Declares that the Petitioners are opposed to the proposal Vaz.] to close the Seven Stars public house on Gospel End [P001467] Road in Sedgley and are opposed to the retail development plans for the site. OBSERVATIONS The Petitioners therefore request that the House of Commons urges the Government to encourage Marston’s PLC to reconsider the closure of the Seven Stars public house, Gospel End Road, Sedgley. COMMUNITIES AND LOCAL GOVERNMENT And the Petitioners remain, etc.—[Presented by Ian Austin, Official Report, 4 March 2015; Vol. 593, c. 1046.] Children’s centres in Rushden, Northamptonshire and the surrounding areas [P001446] Observations from the Secretary of State for Communities The Humble Petition of residents of Rushden, and Local Government: Northamptonshire and the surrounding areas, The Secretary of State for Communities and Local Sheweth, Government is aware of the concerns some people have That in Rushden and the surrounding areas, there is a about losing their community pubs, and the Government high proportion of isolated working women with children; have made clear their commitment to protecting those further that this group often suffers post-natal depression pubs that most benefit the community. through their circumstances but as they are often working Through the Community Right to Bid the Government and married, these women are not targeted for support have given people the power to list local buildings as by the local Council; and further that local children’s Assets of Community Value. So far this has included centres currently provide a vital lifeline to these women, over 600 pubs. In addition, the Government have recently offering them access to non-judgemental support networks, introduced new legislation which means that, from 6th other mothers with similar aged children, and the April 2015, the listing of a pub as an Asset of Community reassurance that regular, trained and familiar staff are Value will trigger the disapplication of the permitted keeping an eye on their babies and their mental health. development rights that allow the change of use or Wherefore your Petitioners pray that your Honourable demolition of a pub without the need for planning House urges the Secretary of State for Communities permission. and Local Government to encourage Spurgeons and This will mean that, where a pub is listed as an Asset Northamptonshire County Council to reconsider their of Community Value, planning permission will be required decision to reduce universal access services for working for its change of use or demolition. This will enable the 13P Petitions23 MARCH 2015 Petitions 14P local planning authority to determine the application in considerations indicate otherwise. The adopted plan accordance with its local plan, any neighbourhood plan, will therefore put local communities in the best possible and national policy, and provide an opportunity for place to steer future development in their area. local people to comment on any proposals. It is a fundamental principle of the planning system that authorities must take decisions on planning applications Impact of new housing in Longridge, Clitheroe and as they come before them rather than delay until a Whalley future point in time. It is also now almost three years The Petition of the residents of Longridge, Whittingham since the publication of the Government’s National and the Ribble Valley Parliamentary Constituency, Planning Policy Framework and the Localism Act. To impose a moratorium on decision-taking in respect of Declares that the small rural towns and villages like housing until 90% of plans are adopted would stall Longridge, Clitheroe and Whalley up and down the much needed development; there are pressing national country are under siege from housing developers seeking needs for housing and jobs that would be exacerbated to build excessive numbers of homes to encourage were such an approach adopted. people to migrate from industrial towns and cities to All residents of Longridge, Whittingham and the rural communities. Ribble Valley, have opportunities to express views and The Petitioners therefore request that the House of influence decisions on proposals for future developments. Commons recognises the problems of these communities Upon the submission of any planning application for like Longridge where developers are seeking to build development the council must advertise the application 2,300 houses and amend the National Planning Policy by site notice and on their web-site. At such a time local Framework to: residents may object to the proposal, and the council must take these views into account in reaching a decision. (a) Suspend the operation of clauses 14 and 49 of the National Planning Policy Forum until 90% of local Since the National Planning Policy Framework was authorities have an approved local development plan so introduced, the number of appeals received across England there is no presumption in favour of planning consent has fallen as has the number allowed. The quality of where a local authority does not have an approved local decisions also remains high—99% of decisions are Local Development Plan or 5 years of development made locally with only approximately 1% of planning land and applications overturned on appeal. Housing starts and housing construction are also up, as are permissions for (b) Allow local communities divided by a local government new homes. This means there is more local decision-making, boundary to be treated as one entity for planning and our reforms are supporting badly-needed new homes purposes. within a locally-led planning system. And the Petitioners remain, etc.—[Presented by Mr Nigel The Localism Act 2011 places a legal duty on local Evans, planning authorities, county councils, and public bodies Official Report, 4 November 2014; Vol. 587, c. 796.] to co-operate with their neighbouring authorities on [P001395] strategic planning issues. Councils are required to Observations from the Secretary of State for Communities demonstrate that they have complied with the duty and Local Government: when their local plans are at examination. Failure to demonstrate compliance will mean that a local plan Through our reforms in the Localism Act and National cannot be found sound. Co-operation between local Planning Policy Framework the Government have put authorities should produce effective and deliverable policies local plans at the heart of the planning system. We have on strategic cross boundary matters, and effective planning encouraged and supported all local authorities to get policies will ensure local authorities are in control of up-to-date plans in place as soon as possible as this is their planning issues. the most effective way of managing development within a local area. Local plans help guard against ‘speculative’ or unwanted development by setting the framework in which decisions on particular proposals are taken (whether HEALTH that decision is taken locally or by the Planning Inspectorate at appeal). Radiotherapy facility at Lister Hospital Our policy does not ask that areas deliver more The Petition of residents of the constituency of North development than is needed, but that they plan to meet East Hertfordshire, objectively assessed development needs as far as is consistent with national policy as a whole. National Declares that patients who are residents of Letchworth policy, including the presumption in favour of sustainable Garden City and the surrounding towns and villages development included in the Framework does not mean have to travel to Mount Vernon Hospital in Hillingdon development at any cost. The presumption is clear that to receive radiotherapy treatment and that this journey applications should not be approved if the adverse is long and exacting and often has to be made on impacts would significantly and demonstrably outweigh consecutive days. the benefits; or if specific policies in the Framework The Petitioners therefore request that the House of indicate that development should be restricted. Commons urges the Government to encourage NHS This ensures that important safeguards are respected. England to provide a radiotherapy facility at Lister The Ribble Valley Core Strategy (local plan) was Hospital in Stevenage in order to make the journey for adopted by the Council on 16 December 2014. In radiotherapy treatment much easier for patients who determining planning applications, decisions must be live in Letchworth Garden City and the surrounding taken in line with the local plan unless material towns and villages. 15P Petitions23 MARCH 2015 Petitions 16P

And the Petitioners remain, etc.—[Presented by Sir Oliver phase of work will also take place at a local level shortly Heald, Official Report, 10 March 2015; Vol. 594, c. 266.] and will include the launch of a radiotherapy capacity [P001441] and demand survey. On 12 March 2015, the Public Accounts Committee Observations from the Secretary of State for Health: published “Progress in improving cancer services and Decisions about local services should be made as outcomes in England”. One of the recommendations in close to patients as possible, by those who are best the report is that NHS England should set out how it placed to work with the patients and the public to will ensure a co-ordinated national approach to procuring understand their needs. Because it is a specialised service, replacement radiotherapy equipment so that sufficient radiotherapy is commissioned directly by NHS England. capacity is available in the right places. NHS England has carried out a high-level exercise to NHS England will develop a plan to respond to this assess capacity and demand for External Beam recommendation and the radiotherapy capacity and Radiotherapy generally at a national level. A further demand survey will be the first step in this process. phase of work will also take place at a local level shortly NHS England will continue to review the need for and will include the launch of a radiotherapy capacity additional radiotherapy facilities outside the current and demand survey. centres if it benefits sufficient numbers of patients and On 12 March 2015, the Public Accounts Committee will ensure that any changes are economically viable published “Progress in improving cancer services and and enhance the existing care pathways. outcomes in England”. One of the recommendations in The hon. Member for Stevenage (Stephen McPartland) the report is that NHS England should set out how it and the hon. and learned Member for North East will ensure a co-ordinated national approach to procuring Hertfordshire (Sir Oliver Heald) are meeting NHS England replacement radiotherapy equipment so that sufficient representatives shortly to discuss the provision of capacity is available in the right places. radiotherapy services locally, which is the appropriate NHS England will develop a plan to respond to this course of action. recommendation and the radiotherapy capacity and demand survey will be the first step in this process. NHS England will continue to review the need for additional radiotherapy facilities outside the current JUSTICE centres if it benefits sufficient numbers of patients and UK Petitions to the European Court of Human Rights will ensure that any changes are economically viable and enhance the existing care pathways. The Petition of Jonathan Roger Steinberg, The hon. Member for Stevenage (Stephen McPartland) Declares that the Petitioner is a resident of both and the hon. and learned Member for North East London and New York; further that the Petitioner and Hertfordshire (Sir Oliver Heald) are meeting NHS England his mother were forced to leave their home; further that representatives shortly to discuss the provision of the Petitioner believes that he was deprived of his home radiotherapy services locally, which is the appropriate and assets as a result of a malicious vendetta carried course of action. out by a solicitor in over half a dozen pieces of litigation The Petition of residents of the constituency of Stevenage, concluding with Pritchard Englefield v Steinberg HQ02X01159; further that the Petitioner believes that Declares that patients who are residents of Stevenage each such action over a 15 year period was commenced and the surrounding towns and villages have to travel to in abuse of process by a firm of solicitors acting for Mount Vernon Hospital in Hillingdon to receive their own benefit; further that in that litigation, the radiotherapy treatment and that this journey is long solicitor succeeded by applying to various courts for and exacting and often has to be made on consecutive various ex parte and without notice judgments often by days. presenting falsified evidence and at a time when they The Petitioners therefore request that the House of knew the Petitioner was unable to take part in the Commons urges the Government to encourage NHS litigation for medical reasons; further that the UK England to provide a radiotherapy facility at Lister judge assumed a right to handle the solicitor’s application Hospital in Stevenage in order to make the journey for because he said he had power after a few weeks wait to radiotherapy treatment much easier for patients who “decide the time had come” to dispense with the strictures live in Stevenage and the surrounding towns and villages. of Article 6(1) of the European Convention on Human Rights and pass judgment against a party who could And the Petitioners remain, etc.—[Presented by Stephen not take part in the proceedings for medical reasons and McPartland, Official Report, 10 March 2015; Vol. 594, deprive that party and his family of their home contrary c. 1P.] to Article 8(1) of the Convention without giving that [P001450] party any opportunity to present opposition to such Observations from the Secretary of State for Health: application or applications; further that the Petitioner believes that without any or proper reference to judicial Decisions about local services should be made as staff, the European Court of Human Rights wrongly close to patients as possible, by those who are best struck out the Petitioner’s petition to that court without placed to work with the patients and the public to any hearing and without being able to write any judgment understand their needs. Because it is a specialised service, in the case with the statement that the petition disclosed radiotherapy is commissioned directly by NHS England. no breach of any Convention right; and further that the NHS England has carried out a high-level exercise to Petitioner believes that litigation before courts of the assess capacity and demand for External Beam UK should be properly and fairly disposed and that Radiotherapy generally at a national level. A further applications should not be left undecided for any reason. 17P Petitions23 MARCH 2015 Petitions 18P

The Petitioner therefore requests that the House of need for judgment as against the need to be present at Commons urges the Government to strengthen the the proceedings1. It should be noted that the petitioner procedures for requesting the Master of the Rolls to made two separate applications to the Court of Appeal; review a litigation case under Section 54(4) of the both raising the complaint that judgment was made in Senior Courts Act 1981; further requests that the House his absence2. Both times his applications were dismissed. requests that the Government press the Council of There has been no appeal to the Supreme Court. Europe to review the Petition process of the European As to the issue of the loss of the family home, this is Court of Human Rights to establish whether UK Petitions covered by the findings of Peter Smith J in the possession are properly treated when tested against whether a proceedings3. In effect the sale was ordered so as to violation of rights is alleged and to establish what preserve as much of the value as possible so that there further steps could be taken to strengthen the rights of would be something left over for the petitioner’s mother UK subjects who have Petitions before the European to live on. Had the judge not made the order for sale, Court; and further requests that the House urges the the equity would have been swallowed up in the existing Government to consider whether steps should be taken charging orders and the judgment debt. to strengthen the rights of UK subjects who have Petitions Our legal system, courts, judges and lawyers are wrongly culled from European Court lists without regard admired throughout the world. Judicial independence, for the rights of those UK Petitioners; further requests professionalism and impartiality are the cornerstone of pursuant to the facts and matters set out herein the this. There is nothing that indicates that the cases were House of Commons set up a full inquiry. not tried with the degree of care that one expects from And the Petitioner remains, etc.––[Official Report, United Kingdom judges. 12 February 2015, Vol.592, c. 11P.] In accordance with the principle of subsidiarity, it is [P001437] for domestic courts to ensure that proceedings are conducted compatibly with the right to a fair trial under Article 6 Observations from the Secretary of State for Justice: of the European Convention on Human Rights. It is of The Government have the following Observations to course open to anyone to apply to the European Court make:- of Human Rights in Strasbourg if they believe their In the United Kingdom the separation of powers as rights to have been breached. However, in view of the between the Executive, the Legislature and the Judiciary large number of applications that it receives, it is the is paramount––the judiciary are not subject to review practice of the Strasbourg Court to dismiss an application by the executive, nor indeed Parliament. immediately as manifestly inadmissible if it considers Judges carry out their duties having regard only to that it does not disclose a possible violation of the the facts and arguments which are brought before them Convention, taking note of the consideration that has and it is their task to apply the law in that light. already taken place at national level. Questions about the merits of a case, about the evidence The Government strongly support the implementation that was offered, about the interpretation of that evidence, of the principle of subsidiarity by the Strasbourg Court, or about the decisions that have been made, are not this having been a key part of the reforms cemented by questions on which Parliament has any jurisdiction. the Brighton Declaration under the United Kingdom’s Chairmanship of the Committee of Ministers of the Where someone believes that a court or tribunal has Council of Europe in 2012. been confused and did not properly understand the facts of the case concerned, or has misdirected itself in There is no evidence that applications made against law, the appropriate remedy is to seek to appeal or, the United Kingdom are treated differently by the where appropriate, to apply for judicial review. Strasbourg Court from any others. In any case, as the Government respond to proceedings on behalf of the The judgment of the Court of Appeal in Steinberg, v. United Kingdom, it is not in a position to intercede on Enslefield f20051 EWCA Civ 288 makes clear that the behalf of applicants against it. litigation referred to in the petition was properly conducted. 1 Here Sedley LJ set out the case history and paid specific See para 18 attention to the care that the lower court had taken in 2 [2005] EWCA Civ 824 dealing with the petitioner, especially in balancing the 3 [2004] EWCH 1908 (Ch) ORAL ANSWERS

Monday 23 March 2015

Col. No. Col. No. HOME DEPARTMENT...... 1097 HOME DEPARTMENT—continued Anti-radicalisation Programmes...... 1100 Organised Crime ...... 1103 Communications Data ...... 1099 Police Budgets...... 1106 Crime (Northamptonshire) ...... 1111 Police Forces: Finance...... 1109 Crime Rates ...... 1105 Police Numbers: Lancashire...... 1110 Domestic Abuse: Police Response...... 1101 Post-study Work Visas ...... 1108 Early Intervention Programmes ...... 1106 Sham Marriages...... 1111 Extremism...... 1102 Topical Questions ...... 1112 Migration...... 1097 Visas: Income Threshold...... 1107 WRITTEN STATEMENTS

Monday 23 March 2015

Col. No. Col. No. CABINET OFFICE...... 101WS JUSTICE...... 107WS “The State of the Estate in 2013-14”...... 101WS Property/affairs: Missing Persons...... 107WS Office of the Commissioner for Public Appointments ...... 101WS TRANSPORT ...... 108WS COMMUNITIES AND LOCAL GOVERNMENT.. 102WS HS2 Update ...... 108WS Local Audit...... 102WS Rail Franchising: Great Western ...... 109WS Local Government Update ...... 104WS EDUCATION...... 106WS TREASURY ...... 102WS Equality and Human Rights Commission...... 106WS Convergence Programme ...... 102WS ENERGY AND CLIMATE CHANGE ...... 106WS Oil and Gas Authority: Consultation on Levy WORK AND PENSIONS ...... 110WS Design...... 106WS Office of Nuclear Regulation: Annual Plan ...... 110WS PETITIONS

Monday 23 March 2015

Col. No. Col. No. COMMUNITIES AND LOCAL GOVERNMENT.. 11P JUSTICE...... 16P Children’s centres in Rushden, Northamptonshire UK Petitions to the European Court of Human and the surrounding areas...... 11P Rights ...... 16P Closure of the Seven Stars public house in Sedgley...... 12P Impact of new housing in Longridge, Clitheroe and Whalley...... 13P PRESENTED PETITION ...... 11P Downsizing of UK visa and immigration services HEALTH...... 14P in India and Bangladesh ...... 11P Radiotherapy facility at Lister Hospital ...... 14P Members who wish to have the Daily Report of the Debates forwarded to them should give notice at the Vote Office. No proofs of the Daily Reports can be supplied. Corrections which Members suggest for the Bound Volume should be clearly marked in the Daily Report, but not telephoned, and the copy containing the Corrections must be received at the Editor’s Room, House of Commons,

not later than Monday 30 March 2015

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CONTENTS

Monday 23 March 2015

Oral Answers to Questions [Col. 1097] [see index inside back page] Secretary of State for the Home Department

European Council [Col. 1120] Statement—(The Prime Minister)

Government Efficiency and Reform [Col. 1138] Statement—(Mr Maude)

Tobacco Manufacturers’ Producer Responsibility [Col. 1147] Motion for leave to bring in Bill—(Paul Burstow)—agreed to Bill presented, and read the First time

Budget Resolutions and Economic Situation [Col. 1151] Debate (Fourth day) Resolutions agreed to, some on Divisions

Finance [Col. 1259] Bill presented, and read the First time

1915 Armenian Genocide [Col. 1260] Debate on motion for Adjournment

Mr Speaker’s Ruling [Col. 1269]

Westminster Hall Nurses and Midwives: Fees [Col. 377WH] Debate on motion for Adjournment

Written Statements [Col. 101WS]

Petitions [Col. 11P] Observations

Written Answers to Questions [The written answers can now be found at http://www.parliament.uk/writtenanswers]