Friday Volume 542 23 March 2012 No. 285

HOUSE OF COMMONS OFFICIAL REPORT

PARLIAMENTARY DEBATES (HANSARD)

Friday 23 March 2012

£5·00 © Parliamentary Copyright House of Commons 2012 This publication may be reproduced under the terms of the Parliamentary Click-Use Licence, available online through The National Archives website at www.nationalarchives.gov.uk/information-management/our-services/parliamentary-licence-information.htm Enquiries to The National Archives, Kew, Richmond, Surrey TW9 4DU; e-mail: [email protected] 1045 23 MARCH 2012 Budget Resolutions and Economic 1046 Situation This Government ultimately have a laser focus on House of Commons making Britain the best place in the world to start, finance and grow a business.

Friday 23 March 2012 Mr Stewart Jackson (Peterborough) (Con): On the subject of Labour waste and profligacy, is my right hon. Friend aware that the Institute for Fiscal Studies says The House met at half-past Nine o’clock that had Labour been re-elected, it would have borrowed an extra £200 billion, which would have had a huge PRAYERS impact on interest rates, in particular, and, given the debt legacy in households, a calamitous impact on the [MR SPEAKER in the Chair] economy generally?

Ways and Means Justine Greening: My hon. Friend is absolutely right. Labour Members have learned nothing from the mess Budget Resolutions and Economic they handed over to us. They see us in a debt crisis and Situation their solution is to keep on borrowing—keep on digging— and we all know who would pick up that bill.

AMENDMENT OF THE LAW Mr Russell Brown (Dumfries and Galloway) (Lab) Debate resumed (Order, 22 March). rose— Question again proposed, (1) That it is expedient to amend the law with respect to the Owen Smith (Pontypridd) (Lab) rose— National Debt and the public revenue and to make further provision in connection with Justine Greening: I will not give way; I am still replying finance. to an intervention. The worst thing that Britain could (2) This Resolution does not extend to the making of any do right now is to listen to the siren voices of the amendment with respect Opposition. They are very good at criticising, but they to value added tax so as to provide— have absolutely no credible alternative, and that is probably (a) for zero-rating or exempting a supply, acquisition or importation, the key message that will come across to the public who (b) for refunding an amount of tax, are watching this debate. (c) for any relief, other than a relief that— From easing access to credit and bringing down the (i) so far as it is applicable to goods, applies to goods of every cost of borrowing for small businesses, to cutting description, and corporation tax and reforming the planning system, the (ii) so far as it is applicable to services, applies to services of measures set out in this Budget will help to get growth every description. back into our economy. They will also help to rebalance 9.34 am the economy by supporting our companies—wealth creators shifting UK plc from a spend-and-borrow path The Secretary of State for Transport (Justine Greening): under the previous Government to a make-and-sell It is a great pleasure to be able to resume the debate on future under this one. the Budget today. This is the coalition Government’s third Budget. It is a Budget that helps Britain to earn its Owen Smith: Will the Minister confirm that the Office way in the world, rewards working families, backs business, for Budget Responsibility tells us that next year the and sticks to our course of clearing up the economic volume of investment by British companies in the UK mess that the previous Government left us. This Budget, will go down by 0.7%—that is, 7% down on the previous like the last two, cannot be divorced from the urgent year’s estimate? Is that right? need to deal with Labour’s debts. Let us remember the crisis that we inherited less than two years ago. The Justine Greening: If the hon. Gentleman reads the state was borrowing one in four of every pound it spent whole OBR report, he will realise that Britain is an and spending £120 million a day on debt interest alone. economy that operates in a global marketplace. Of The country was taken to the brink of bankruptcy by a course, his solution to the challenges faced in that profligate Labour Government, leaving our people with global marketplace is to go and join all the countries the biggest deficit in the developed world. that are facing problems, not to tackle our own economic This Budget marks another step on the road to a crisis that his party left us. I assume that most, if not all strong and stable economy, and that is why we are the interventions that I get from Labour Members will sticking to our deficit reduction plan, winning credibility be cherry-picked statistics that offer no alternative solutions in the markets and keeping interest rates low. to the challenges facing Britain. Mike Gapes (Ilford South) (Lab/Co-op): Will the right hon. Lady explain why this Government are going Mr Russell Brown rose— to add £150 billion to total borrowing? Is that a sign of success? Justine Greening: I wonder whether the hon. Gentleman has an alternative. Justine Greening: Many people who see that the hon. Gentleman’s party’s strategy is to borrow in the middle Mr Brown: I am not about to cherry-pick a statistic, of a debt crisis will wonder why he is asking that but let me give the Secretary of State some facts. I appreciate question. I presume it is because he thinks that borrowing that she was not here at the time, but when the Labour is not high enough. Government came into power in 1997, the servicing of 1047 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1048 Situation Situation [Mr Russell Brown] Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab): I find the Secretary of State’s emphasis the debt that was left behind amounted to more than on infrastructure appealing, because infrastructure is was being spent on transport and defence combined. needed. Unfortunately, the Office for Budget Responsibility That was a major task to be handled by the incoming has put the majority of growth for the foreseeable Labour Government, so everything was not rosy in the future down to personal consumption. Last Budget, it garden. said that 12.5% of growth would come from private consumption. It now says that the figure is 37.5%. That Justine Greening: The previous Conservative Government is the very growth that the Government have now handed over a golden economic legacy. It was the condemned. Labour party that handed over a Britain loaded up with Justine Greening: I am not sure that the hon. Gentleman’s debt, costing us £120 million a day in debt interest, and intervention made much sense. I agree that infrastructure that left unemployment higher than when it came to is critical. The key part of the OBR report, which he office, like every single Labour Government we have ought to focus on, states that we are on course to meet ever had. I will take no lectures from the party opposite our fiscal mandate and to get our public finances back on economic management, and neither will the British in order. I am sure that he welcomes the OBR’s assessment people. that we will see the net creation of 1 million jobs in this country over the coming year. Matthew Hancock (West Suffolk) (Con): On the question of investment from overseas, is my right hon. Friend Helen Goodman (Bishop Auckland) (Lab): To explain aware that some Labour shadow Cabinet Ministers further the point made by my hon. Friend the Member have said that they would reverse the corporation tax for Middlesbrough South and East Cleveland (Tom cut, which was cited by GlaxoSmithKline yesterday Blenkinsop), if the Secretary of State turns to table D.1 when it announced 1,000 new jobs in this country? in the Red Book, which shows the detailed summary of the OBR’s central forecast, and looks along the line for “Fixed investment” by “General government”, she will Justine Greening: Ultimately, Labour Members seem see that it falls in 2011, falls in 2012 and falls in 2013. to know nothing about how business runs. It may be That is the point that my hon. Friend was making. The that none of them has ever worked in business. Keeping right hon. Lady clearly has not looked at the Red Book. our corporation tax rate low is critical in re-establishing our economic credibility and our tax competitiveness. Justine Greening: This Government are investing more Those are fundamental building blocks in getting the money in capital spend than was planned by the previous investment that we are seeing. I wholeheartedly welcome Government. If the hon. Lady is complaining about the steps that the Chancellor has taken. those numbers, she would be complaining even more if As my right hon. Friend the Prime Minister has said, we had the misfortune of having her party in office. the infrastructure deficit that we inherited is just as This Government are investing in infrastructure and serious as the budget deficit for our future productivity putting unprecedented levels of investment into the and the country’s ability to be successful. Infrastructure railways, as I am sure she is well aware, even though she matters because it makes possible our journeys to work, prefers to score a political point. delivers light when we flick on the switch and provides The Government are rightly taking action to make it the connections that have created the communications easier for people and businesses to go about their daily revolution. Whether it is the congestion on our roads, business. We are cutting commuting times and speeding our ageing power stations or the slow speed of our up journeys; getting people and products moving faster broadband connections, we face massive challenges to and more reliably; and ensuring that Britain is plugged ensure that we have the infrastructure that we need to into the global marketplace. Of course, the easy choice, put Britain at the head of the competitiveness curve, faced with Labour’s debt and deficit, would have been not just in the next four to five years, but in the next four to cut capital spending and major infrastructure projects. to five decades. We are not doing that. Instead, we have taken a deliberate My remarks will focus on transport, because the decision to invest in our transport infrastructure, from Budget sends a clear message about how crucial the relatively small interventions that make a big difference Government and I believe our transport infrastructure such as hard-shoulder running on motorways, to huge is to our economic future. That reflects what business is projects such as Thameslink and Crossrail. telling us. The CBI states: I am delighted that we have a London Mayor who is “There are large amounts of business capital waiting to be committed, alongside the Government, to driving forward unlocked if the Government achieves a step-change on transport”. projects such as Crossrail, which are vital to our capital’s future prosperity. It is vital that we continue to have a The Institute of Directors says that it is Mayor who is passionate and successful in campaigning “essential to provide more and better transport infrastructure in on London’s behalf at the heart of the Government; a order to sustain the UK’s competitiveness.” Mayor who refuses, unlike his opponent, to make empty The British Chambers of Commerce rightly states: spending promises based on imaginary pots of money; and a Mayor who will be the best possible advocate for “Infrastructure is the lifeblood of British business.” London’s economic success when he welcomes the Olympic I could not agree more. The last Government delivered tourists and athletes in the summer. the biggest boom and the biggest bust. As we chart our way back to economic recovery, what companies and Gavin Shuker (Luton South) (Lab/Co-op): I am extremely firms up and down the country rightly want to see is a grateful to the Secretary of State for giving way after Government taking action. that party political broadcast to re-endorse the London 1049 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1050 Situation Situation Mayor. Turning to a point of substance, may I ask her In addition, the Chancellor has announced that the what her policy is on airport expansion in the south-east? rail industry will benefit from £130 million of funding The Government were keen to show a bit of leg in that from Network Rail to improve rail connectivity in the regard, but have ruled out a third runway at Heathrow. north of England by giving the go-ahead to further parts of the northern hub project. That will include Justine Greening: The hon. Gentleman will be delighted increasing line speed and capacity on the Sheffield to to know that I will come on to that matter shortly. After Manchester Hope Valley line, and reducing journey all, this is a speech on infrastructure. I hope that when times on the Manchester to Bradford via Rochdale and the Opposition spokesman responds, he will take the Halifax line and the Manchester to Preston via Bolton time to set out some kind of alternative plan. That line. We are linking up the great counties of Yorkshire would be of real interest to us all. of Lancashire in the way that they have always wanted Five months into this job, I could reel off a long list to be linked. That all adds up to passengers enjoying of the transport investments that we are making. We are better connections, faster services and more seats. electrifying the trans-Pennine railway and the Great Our national road network is also a key part of our Western line from London to Cardiff, far surpassing the national infrastructure. The strategic road network carries 39 miles of electrification that happened under the two thirds of all the freight on Britain’s roads, and it is previous Government. That would not even stretch vital for all types of business from mail order retailers from Cardiff to Swansea, let alone from London to to industrial parks and shopping centres. We have already Cardiff. We are upgrading the Tyne and Wear metro. announced, in last year’s growth review, £1 billion of There are 45 local authority major schemes to improve additional investment in the nation’s strategic roads, on connectivity across the country. We are finally progressing top of the £2.3 billion planned investment in major with the first parts of the northern hub project, which is improvements announced in the spending review. However, so important to many Members. as the Budget makes clear, we want to go further and I could continue, Mr Speaker, but we are investing in examine the opportunities for more private investment so many projects that you would probably call me out of in the road network in future. We want to consider order for speaking for too long. Therefore, let me summarise. where we can learn lessons from other industries, and The spending review set out more than £30 billion of we want to build on the proposals in Alan Cook’s investment for road, rail and local transport projects report on the Highways Agency. across the country. On our roads, we are investing billions to unlock extra capacity and ease congestion. John Woodcock (Barrow and Furness) (Lab/Co-op): We have set up the £560 million local sustainable transport Will the Secretary of State spell out what will constitute fund, which gives local communities more power to a capacity improvement that could lead to extra tolling design and deliver local transport systems. We have put on existing roads? That is unclear. in place the Growing Places fund to kick-start infrastructure projects. Justine Greening: The hon. Gentleman will be aware We have given the green light to High Speed 2, a of the work on how we can improve the A14, for national high-speed rail network that will radically improve example, and some of the options being considered the connections between our great cities and, by doing could include tolling. If he is interested in finding out so, help to create jobs and generate growth and prosperity. more about how the on approaching the issue, he can That sits alongside our unprecedented investment in the meet up with people who are involved in the A14 existing railway network, from new stations and rolling challenge. That programme of improvements will deliver stock to line electrification, which will help to decarbonise for the community in that region in a way that his the industry. That amounts to the biggest modernisation party’s Government failed to in 13 years. programme since Victorian times. The hon. Gentleman is looking at the sky and shaking Hand in hand with additional resources for our railways his head, but I have a very, very long list of investments goes the reform of our railways. The rail Command that the Government are making, whereas the Labour Paper sets out our vision for an efficient, effective and party delivered precious little. The biggest irony, of value-for-money rail industry. Our reforms will put the course, is that we ended up with all this debt, but what customer first and allow us to end the era of inflation- did it get spent on? Not the things that would have busting regulated fares increases once the vital savings made a real difference to Britain—not roads, not trains. are made. Labour frittered it away and wasted it on an unprecedented scale. Building on all those investments, the Chancellor announced further measures on Wednesday to improve This Government understand that Britain is not just our country’s transport links. He announced a £323 million an island nation but a trading nation, so our ports must package that includes a range of projects. There is an be world-class global gateways. That is why we are extra £150 million contribution towards the Growing backing major container port developments such as Places fund, which will facilitate the economic growth, Liverpool, Bathside Bay, Felixstowe South, London jobs and house building that our country needs so Gateway, Teesport and the port of Bristol. It is also why badly. There is £15 million for cycle safety in London, we want to see a successful and sustainable future for which will enable the innovative redesign of some of the that other crucial global gateway, our aviation industry. capital’s most dangerous junctions for cyclists. There is We should remember that our country and our capital £11 million more for low-carbon buses, which is part of are right up there with the very best when it comes to the £101 million bus investment package that the Under- international connections. Only China and the USA Secretary of State for Transport, my hon. Friend the have aviation networks more extensive than ours. We Member for Lewes (Norman Baker) is announcing are directly connected to 356 international destinations, today. and no European country can match our connections 1051 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1052 Situation Situation [Justine Greening] 10 people will now be subject to 5% VAT. That is unalloyed good news, and I am sure Government Members to the world’s great commercial centres. There are more will think it is a clear sign of a Chancellor with his than 9,000 flights every year to New York, 3,000 to finger on the pulse of the lives of hard-working families Hong Kong, 2,500 to Singapore—I could go on. To up and down the country. If people travel to work by each of those important destinations and many others, cable car, they are laughing, but if they are among the Britain is the world leader. millions of motorists and train passengers squeezed as Nevertheless, if we are to maintain that status, we never before, facing the prospect of whole new charges have to take on the tough challenges facing the industry, in future, they are definitely not laughing. whether it is improving the passenger experience or enhancing capacity and connectivity, while tackling the Gavin Shuker: My hon. Friend is extremely well informed industry’s impact on climate change and the local on cable-based transportation systems. Are any cable-based environment. We are determined to look at those difficult transportation systems proposed in Luton South, where issues. As the Budget makes clear, we will set out our families are feeling the squeeze of the Budget? thinking on aviation capacity and a sustainable aviation framework this summer. We are determined to ensure John Woodcock: I am not aware of any, but my hon. that we retain our aviation competitiveness and hub Friend might make proposals as a result of that excellent status in the decades to come. tax cut. An economy built on success requires investment in Yes, there are tough choices to be made, and the infrastructure that is built to last. That is why we need Opposition have set out the choices that we would have to invest in, reform and modernise our transport networks made. Of the £9 billion of cuts and efficiencies being to make them the very best that they can be at not just made by the Department for Transport, we have accepted national but local level. This Budget helps to lay those more than £6 billion. foundations for Britain’s future economic success. We will not follow the Labour party’s advice to spend more, borrow more and put our economic credibility at Helen Goodman: I am sorry to take my hon. Friend risk. We will hold our course to cut Labour’s deficit, back to the issue of cable transport, but I have a cable rebalance our economy and forge a path to sustainable lift in my constituency on Mickle fell. I wonder whether growth. We will make the investment decisions needed people who use it will benefit from the Chancellor’s to ensure that our economy is well placed to compete in generosity. the decades ahead. Tackling today’s challenges and investing in tomorrow’s future—that is what this Budget John Woodcock: I am sure that businesses will now is about and what this Government are about, and we see a great opportunity to set up offices at the top of will build a country that we can be proud of again. Mickle fell as a result of this great tax cut. Ministers are making decisions that will make our Several hon. Members rose— economy more fragile and that expose where their true Mr Speaker: Order. I must thank the Secretary of priorities lie. State for such a succinct speech. A lot of colleagues want to contribute, and it was helpful to the House. Justine Greening: The hon. Gentleman said that he supported £6 billion of the £9 billion of spending cuts 9.55 am in the Department. Which £6 billion does he support? Will he give us a summary? John Woodcock (Barrow and Furness) (Lab/Co-op): I begin by passing on the apologies of my hon. Friend the Member for Garston and Halewood (Maria Eagle), John Woodcock: I will be happy to, within the constraints the shadow Secretary of State for Transport, for not of time, but I want to try to keep to the same time as the being present today. It turns out that Ministers were on Secretary of State took. If you will allow me to go to something when they refused the offer to speak at the slightly over that time, Mr Speaker, I can do so. TUC’s railway event earlier this week. Conservative We have not opposed £3.36 billion being taken from Members often seem to think that our brothers and the Highways Agency’s budget, out of the total reduction sisters in the trade unions must be contagious, but on of £3.86 billion. We have not opposed £1.73 billion this occasion there is no getting around it—I am afraid being taken from the Transport for London budget, they made my hon. Friend ill. which represents the full reduction. [Interruption.] The It therefore falls to me to point out what the Secretary Secretary of State looks surprised. If she had paid a of State already knows—that over the past 48 hours, little more attention to what we have been saying over the Chancellor’s Budget has unravelled at astonishing the past several months, she might not have had to ask speed. We now know that it will inflict pain on the the question now. millions, so that millionaires can be spared. On the We have not opposed £794 million of the road subject of transport, the Secretary of State has shown maintenance budget out of total reductions of £1.23 billion that she and the Chancellor are wedded to a platform of or £528 million of cuts from the Network Rail passenger pain today and more pain in the future, with woefully budget out of total reductions of £1.29 billion. We have little to return to the country the jobs and growth that not opposed the efficiencies that are being made to the we so desperately need. Crossrail budget, or the £231 million from the local We must not be unfair, for action has been taken to authority major transport teams out of a total reduction ease transport costs in at least one area. Fares on of £731 million. The Secretary of State asked for the list cable-based transportation systems carrying fewer than and has got it. I hope she is happy. 1053 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1054 Situation Situation Matthew Hancock: Will the hon. Gentleman give Mr Speaker: Order. In response to the Minister, who way? inquired whether the use of the term “diddly squat” was parliamentary, I would say to the hon. Lady and the John Woodcock: I will not give way on that point, House that it is matter of taste rather than of order. because I want to make progress. I am afraid that the priorities the Government and John Woodcock: Thank you, Mr Speaker. I shall take Secretary of State have set out are not— that as a lesson. Faced with record and rising fuel prices, the Secretary Justine Greening: Will the hon. Gentleman give way? of State set her face against all calls for relief, including the Opposition call for a temporary VAT cut. John Woodcock: As the right hon. Lady is the Secretary of State, I will give way once more, but I want to make a Charlie Elphicke: I remind the hon. Gentleman that little more progress. this April petrol duty will be a full 10p lower than it would have been under the previous Government’s plans. That will save the average family £144 and be a massive Justine Greening: So where does this £3 billion come benefit—a far greater benefit than if Labour had remained from? in office.

John Woodcock: I am glad the Secretary of State asks John Woodcock: That shows just how out of touch me that. I would expect a little more humility from the the hon. Gentleman and Government Members are. Government given that on their own plans they are set I would like to see him go to the forecourt in his to borrow £150 billion more. We strongly believe that constituency, or any forecourt around the country, and the cuts we do not accept represent a false economy that say, “Let’s welcome the further rise in fuel taxation that will act as a drag on the nation’s growth and stop us you’re getting this week. What a great job the Government returning to the prosperity that this country desperately are doing in keeping fuel prices down!” needs. Families in Britain, worried by energy bills, clobbered The Government’s priorities are not with the family by spiralling rail fares and made poorer by cuts to tax who are struggling to make ends meet, with the small credits, are, thanks to this Secretary of State’s inaction, business that wants to create more jobs or with the once again being squeezed even harder at the fuel employee who wants to be able to afford to turn up to pump. There is pain today and pain tomorrow. The work in the morning. ultimate victim is jobs and growth, and the nation’s return to prosperity. What is the Chancellor offering Charlie Elphicke (Dover) (Con): Will the hon. Gentleman motorists in return for their growing fuel bills? He is give way? offering only vague promises, which might well turn out to be yet another ratchet with precious little reward. John Woodcock: I am not going to give way at the The National Audit Office has warned the Government moment because the Secretary of State has taken up the that they are creating a vicious cycle of deteriorating hon. Gentleman’s time. roads and higher long-term costs. A plague of potholes is making our road network less safe for all users, less On all those counts, Wednesday’s Budget was a great green and more congested. The road network is a brake disappointment. I will give the Secretary of State one on, and not an agent of, jobs and growth. There is no thing: at least she is consistent. When we dig beneath movement on the cuts already set for local roads—that her unrealistic claims that everything will be peachy, we is good news on potholes but bad news for everyone see that she is not gearing up to deliver jam tomorrow else—but what about our trunk roads, which the Secretary after the pain today. Instead, with the Budget the of State mentioned? We need long-term strategic investment Government set out this week, motorists, train passengers in the road network, and we also need to look at how we and bus users will be squeezed today, tomorrow and for lever in that investment, but Britain’s drivers and cyclists years into the future. The effect will be a decade-long will have little confidence after seeing Ministers tying drag on jobs and growth, with the prospect of drivers themselves in knots in recent days. and commuters being priced out of getting to work, or left stranded at a bus stop wondering why the service Before the Prime Minister’s speech on infrastructure has been axed. on Monday, those pesky anonymous briefers, who seem to be everywhere in this Government—good luck in The Chancellor offered nothing to hard-pressed motorists trying to catch them, Mr Speaker—said that tolling this week. In fact, he has made things worse. He has would be considered only for brand new roads. However, raised the prospect of finding new ways to make things in the speech, “new roads” became “new capacity”. We harder in future. Even from the comfort of No. 11 now know for certain that charging is being considered Downing street, the Chancellor cannot have failed to when improvements take place on existing roads because hear the growing calls for some relief on fuel taxation. the Budget document confirms it. We are told that the If he refused to listen, it was the Secretary of State’s job shortlist of options include “widening some sections” to prise open his ears and tell him just how hard it is for of the A14, Britain’s motorists. In the Budget negotiations, however, she secured diddly squat—[Interruption.] Instead, faced “rationalising access to the route, and improving the route of the with rising and record petrol prices, she set her face southern bypass for Huntingdon.” against calls for relief in fuel tax, including the call for a In other words, the A14 will be not a new road, but the temporary—[Interruption.] existing one with added tolling. 1055 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1056 Situation Situation [John Woodcock] John Woodcock: Well, you know. [Laughter.] Iam here all week. Britain’s motorists, already squeezed to breaking point, The Chancellor told us on Wednesday that the country demand plain speaking from the Government, so I will must confront the lack of airport capacity in the south-east. give the Secretary of State another opportunity. Will He is right, but his words would carry more weight had she tell us what will constitute a capacity improvement the Government not spent the past two years dithering on an existing road that could lead to tolling? Will that and delaying on producing any sort of aviation strategy. include an extra lane, a contra flow, a new slip road, a What did we actually get this week? We got not one but roundabout or a bollard? Motorists deserve to know two further delays. First, the Chancellor announced what the Government have in mind. that the strategy that the Department for Transport’s business plan told us to expect in March will now Matthew Hancock: As the A14 runs through my appear late this summer; and now the Secretary of State constituency and is rather a long way from Barrow, may seems to have put back the date even further to this I point out to the hon. Gentleman that adding extra winter or next spring—more dithering, more delay, capacity, even if it is tolled, will help all those who go on while competitor hubs in continental Europe get on the free bit of the road, because they will be able to get with providing new capacity that could transform their home faster? That is why the proposal is supported economies. locally, even if there is opportunistic opposition from Labour. Charlie Elphicke: Will the hon. Gentleman give way?

John Woodcock: The hon. Gentleman seems to have John Woodcock: I will not give way any more because more information about how the scheme will work than I am running on and I want to give other Members time either me or the Secretary of State, who does not seem to speak. to know how exactly motorists will be clobbered with The Government came to power with just one policy tolls. on aviation capacity—to abandon the Heathrow third Who, if anyone, will police tolls? Will contracts stipulate runway. Since the election, the Government have come that tolls must be removed when improvements have up with no practical thinking on alternatives. Instead, been paid for? How will we avoid people being driven they seem to have outsourced their aviation strategy off the motorways and dual carriageways and back into down the river to a Mayor who is more interested in the communities and road networks that the toll roads trying to grab attention than in finding a plan that will were built to relieve? work. That is no way to treat a vital economic driver that is critical to the country’s future growth. In addition to the fear of massively increased tolling, there could be a further, lasting sting in the tail for As the Secretary of State is well aware, the plans for motorists from this Budget. Buried on page 70 of the an airport in the Thames estuary are being met with a Red Book are plans for what can be described only as a barrage of opposition from the area, including from her new stealth tax hike on motorists. The Government say own party’s MPs and councillors. She would be even they will consider reforming—by which they clearly clearer on that if, like my hon. Friend the shadow mean “increasing”—vehicle excise duty. Ministers need Secretary of State, she had been to north Kent and to come clean on how much extra they plan to squeeze talked to local people in the areas affected. The idea of out of motorists through that new stealth tax increase. building a new airport from scratch in the Thames They also need to say what it will mean for motorists estuary is a huge distraction from the real need for who behave responsibly and opt for fuel-efficient vehicles. airport capacity here and now. It is obvious why so many people, but apparently not the Secretary of State, On a less testing note on the subject of sustainable see an estuary airport as a complete non-starter—there road travel, let me say that the Opposition welcome the is the impact on local communities, the destruction of £15 million the Chancellor has found to help to make internationally important habitats, the safety threat from London’s roads safer for cyclists. The spate of injuries explosive-laden wrecks, a liquefied petroleum gas terminal and deaths in the capital has been truly appalling, and and a huge offshore wind farm. the Opposition fully support the campaign, led by The Times, for significant change. As the Secretary of State Mike Gapes: Does my hon. Friend agree that the will know, however, the Budget contained only this reason the Government have not yet come out explicitly one-off grant for London—the fact that there is an on these issues is that they do not want to damage upcoming mayoral election is a complete coincidence, I Boris’s chances in the mayoral election and undermine am sure. Labour has committed to reserving a portion his fantasy island proposal? The reality is that this of the roads budget to dedicated cycle facilities on proposal is completely opposed by whole sectors not roads across the country, not just in the capital. Will she just in Kent but north of the River Thames, including in make a similar commitment? my constituency. If transport on the ground is up in the air with the uncertainties created by the Government, transport in John Woodcock: My hon. Friend makes a good point. the air, aviation, remains at serious risk of being Frankly, Britain deserves better. grounded—if Members follow me. On aviation capacity, The overwhelming majority of the aviation industry the Government still do not know—and we still do not agrees that Heathrow would struggle to continue in its know after the Secretary of State’s speech—whether she current form alongside an estuary airport, placing at is taking off or landing. least 140,000 jobs in west London and the M4 corridor under threat. I hope, then, that when the Secretary of Justine Greening: What? State finally publishes her thinking, she will choose a 1057 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1058 Situation Situation sensible course based on providing additional capacity At the end of his statement on Wednesday, the Chancellor at existing airports, not a strategy based on a pie-in-the-sky boasted that he had estuary airport. “not settled for a do-nothing Budget.”—[Official Report, 21 March 2012; Vol. 542, c. 807.] Mr Tobias Ellwood (Bournemouth East) (Con): Will But to motorists, businesses, and the millions who rely the hon. Gentleman give way? on public transport across the country, that is exactly what he has done. On rail fares, he has done nothing; on John Woodcock: I will not at this stage, if the hon. the crisis facing our buses, nothing; on aviation capacity, Gentleman does not mind. nothing; and on fuel costs, well, he has done something—he has made them even higher. In defending the Budget, My hon. Friend the shadow Secretary of State is still the Secretary of State and her Ministers need to explain waiting for a response to her letter offering cross-party whether they do not understand or simply are not talks on tackling capacity at existing airports. Perhaps bothered about the damage they are doing to family the Secretary of State could pop her reply in a “get well budgets and the impact it is having on Britain’s ability soon” card and send it over with a nice bunch of grapes. to get moving again. I am running out of suggestions to make her agree to this proposal, which seems eminently sensible to Opposition Several hon. Members rose— Members. The aviation industry, businesses and passengers need certainty to guarantee investment, and we are Mr Speaker: Order. Colleagues will be conscious of offering to help her achieve that. the fact that there is a seven-minute limit on Back-Bench On the railways, we strongly welcome a number of speeches, reflecting the level of interest. That limit the investment decisions made in the Budget, particularly applies with immediate effect. the Secretary of State’s support for the vital northern hub project. I pay tribute to the hard work put in by 10.18 pm colleagues on both sides of the House from across the north of England on ensuring that support for the hub Mark Garnier (Wyre Forest) (Con): Like all Members, transferred from the last Government to this one. We I am frequently visited by members of my community need clarity, however. In the Budget, the Chancellor asking for many things that the Government can do to announced £130 million of support for a £500 million help their businesses or special interest groups. I have project, but we need details of what remains to be recently taken to asking them what they would do if funded. they were Chancellor of the Exchequer for the day. I ask them to come up with three ideas, and invariably Although that infrastructure investment, when it arrives, they come up with a whole load of ideas, and after a few will be welcome, the Secretary of State knows that with minutes I have to say to them, “I’m terribly sorry, but no help on Wednesday for rail passengers struggling you’re Chancellor for the day, not Father Christmas.” with fares that for some have already risen by up to 11% Once they have been told, people realise that when our this year, there was nothing to reassure commuters that back is against the wall, it is vital that any budget has to the next two years of RPI-plus-three increases will not be balanced. Anybody who knows how to run a business be going ahead, and nothing to change the franchises knows that they simply cannot carry on borrowing to about to be awarded by her Department that will allow stimulate that business. Cuts have to happen, and it is for 15 years of fares increasing by up to 8% every year. important that we all share the burden of those cuts. All over the country, families are finding themselves Labour is keen to ask those on this side of the House paying more for their journey to work than for their how we will be affected by them and what our interest in rent or their mortgage. They will not welcome this them is. inaction on fares. These sky-high increases price people out of jobs, stunt growth and discourage sustainable Kelvin Hopkins (Luton North) (Lab): The hon. travel choices. Gentleman says that businesses cannot live on borrowing, Britain’s bus users, too, who are already being hit by but they have to borrow in the short term, and surely reduced services and rising fares, will have noticed that part of the problem is that the banks will not lend to they warranted no mention at all in the Budget, and them. there was only a passing reference in the Secretary of State’s speech today to a paper to be produced later Mark Garnier: That is a slightly wider point, but the today. From next month, bus operators are being hit by fact is that when someone has run out of credit on their a 20% cut in the bus service operators grant. In my credit card, they can use the debt that they already have, constituency, like those of many hon. Members, that is but they cannot increase it. threatening to lead to more services being taken off the Many of us on this side of the House have a vested road and a hike in fares for those who remain. interest in the cuts. I declare an interest, in that I shall be Buses are the backbone of our transport network £2,450 a year worse off as a result of child tax credit and essential to ensuring that many people—especially cuts, but the other side of the coin has to involve young people—can access jobs and training. Labour is stimulating economic growth. The problem is that the calling on bus companies to set up a free travel scheme Chancellor does not have a volume knob on the economy for 16 to 18-year-olds in return for the financial support that he can easily turn up. He has to use a number of they receive. Let us compare that to the approach by different measures. There is no simpler way to generate Ministers, who seem content to wash their hands of the quick economic growth than to import investment from entire sector. When they could be helping tackle youth overseas, but to do that we need to demonstrate that we unemployment, they risk making a bad situation even are open for business and competitive. We need a tax worse. regime that attracts inward investment. That is why I 1059 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1060 Situation Situation [Mark Garnier] support from the top. That can be illustrated by the fact that the recently announced Kidderminster college tie-up see the combination of the accelerated fall in corporation with Birmingham Metropolitan college to provide high-tech tax to 22% by April 2014 and the cut in the top rate of courses in the video, animation and gaming arena will income tax to 45p as crucial to the opportunity that we benefit hugely from the announcement yesterday of tax offer to international companies and entrepreneurs looking reliefs in that industry. I should declare an interest as I to set up their businesses in the UK. am a governor of Kidderminster college. Cutting red I cannot overstate the importance of that international tape for micro-businesses, giving research and development competitiveness. Brintons carpets in my constituency credits above the line, introducing measures to make the has recently been reviewing its operations. It is absolutely UK a centre for technology for Europe, and other committed to Kidderminster, but it has received overtures measures will help to create opportunities for a whole from the Portuguese Government, who are offering free raft of small businesses to start up and develop. loans and grants for it to move its carpet looms to Mr Speaker, you will note that I am an enthusiast for Portugal to increase manufacturing there. This is a real this Budget. I am absolutely convinced of its pro-business threat to UK manufacturing and to my constituency, credentials and I broadly welcome them, but I have one but that threat is significantly diminished when the or two points that I would like to raise. I am pleased to corporation tax differential is increased to 7 percentage see the Secretary of State for Transport in her place. points. The top rate of income tax in Portugal is 46.5%. The High Speed 2 project will certainly bring benefits to In other words, Brintons would have a 33% higher Birmingham, the main city of the west midlands and corporation tax bill by moving to Portugal. The managing the second city of this country. I urge the Secretary of director of Brintons assured me last night that this was State to look into the possibility of building a new absolutely a pro-business Budget. regional hub airport in Birmingham to reinforce the Those two tax measures represent an important step important link that HS2 will provide between Birmingham towards achieving the relatively quick fix of attracting and London. A hub airport would certainly be of huge inward investment, and making it harder to justify benefit to the economy of the west midlands, and leaving the country, but it is incredibly important that indeed of the midlands as a whole. we support this with home-grown prosperity that will I also want to sound a note of caution about the provide opportunities for local entrepreneurs. The regionalisation of pay scales. I completely agree with Government have already introduced measures to help the logic that the private sector will be unable to compete small and medium-sized enterprises, as well as announcing with the public sector on pay when the public sector the business enterprise zones. pays as much as 18% more for equivalent jobs in the I must confess to being disappointed that my constituency regions. was not granted such a zone, but it is a credit to the local enterprise partnership and Wyre Forest district Sheila Gilmore (Edinburgh East) (Lab): The areas in council that the South Kidderminster business park which public sector pay tends to be higher than that in continues to be a reality. We have just had a planning the private sector also have extremely high unemployment. application submitted for a new development of 27 hectares I am therefore puzzled by the idea that high public of mixed use, including a 4 hectare employment sector pay is preventing job vacancies from being filled, development, retail, hotels, a restaurant and a café, care or that there are any such vacancies as a result of this and crèche facilities, a railway halt for the Severn valley so-called problem. That does not appear to be the case, heritage railway, and up to 250 new homes. That planning given that there are so many people chasing each job. application demonstrates a strong commitment to my constituency by a far-sighted investor, and follows on from two significant investments in local businesses— Mark Garnier: If I may, I shall develop my point. £36 million in Brintons carpets and £15 million in I am not entirely unsympathetic to the hon. Lady’s Sealine yachts—and precedes a further planning application point, but the important point is that private sector pay to create a 250-room conference facility at the West is not set on a national basis— Midlands Safari Park that will be the premier facility in the county. In addition, a brand new Premier Inn hotel Helen Goodman: Some of it is. is opening today in Kidderminster. I am not trying to pretend that everything is entirely Mark Garnier: Not all of it. Small businesses do not rosy, but it is important to balance negative news with set their pay on a national basis. It makes complete all the positives, and there is a lot of positive news sense that public sector pay should be treated likewise, about. It is also worth remembering that unemployment, and in the broadest sense I welcome the freeze on although too high in Wyre Forest, has remained flat regional public sector pay awards, but I have one caveat. since 2010, having doubled in the years between 2005 Moving public sector jobs around the country—especially and 2010. A strong local will to make a difference is in Government Departments such as vehicle licensing, incredibly important and, if I may, I will use this which went to Swansea—brings cash to a local economy. opportunity to plug my jobs fair, which is being held in That cash can provide economic activity and liquidity Kidderminster next Thursday. It will try to match those that supports jobs in the local private sector that might who are looking for jobs with businesses that are hoping otherwise struggle. While the public sector regional pay to expand. adjustment is going on, I urge the Government to take The key point, however, is that an enthusiasm to do careful note of what is going on locally, to ensure that well locally and to run with initiatives—from something the proper efforts to reduce the crowding-out of the as simple as a jobs fair to something as strategic as private sector by the public sector do not unwittingly significant local investment—has to be balanced by starve the private sector of much-needed local liquidity. 1061 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1062 Situation Situation I also worry about the rising cost of fuel for our however many courses people take, however much work constituents. This is a huge burden on families and experience they get and however many boxes are ticked, although the increase in tax-free allowances is welcome, what really matters is how many real jobs are out the rising cost of fuel is an issue for rural and semi-rural there—jobs that create prosperity and purchasing power, constituencies such as mine. I welcome the help that the jobs that are for personal fulfilment and challenge, jobs Government have given—we are 10p better off than we to promote well-being and cohesion in our communities. would otherwise have been—but there are two further Yes, purchasing power is vital in all this. What did issues to consider. The first is that fuel companies construction companies think when the Government charge consumers what they can get away with locally. swooped up the VAT rates? Let us remember the VAT Prices in Kidderminster are around 5p dearer than they tax bombshell—I mean the real one that happened on 4 are in the constituency of my hon. Friend the Member January 2011. The builders and tradesmen in small and for Bromsgrove (Sajid Javid), for example. On writing medium-sized enterprises certainly remember it because to the chief executives of Tesco, Sainsbury and Texaco, it had a major effect on their businesses. I was told that prices were set locally. When I contacted the local managers, they told me that the prices were set The Minister spoke about people with business regionally. Whatever the method of price setting, the experience, so I will provide her with an example. Mike fuel companies are ripping off my constituents in Wyre Learmond, regional organiser for the North Wales and Forest and I want them to stop. Chester Federation of Small Businesses, put it like this at the time: When we compare the price of oil to pre-tax profits over the years, we see that the oil companies are simply “Small firms will be hit hard by the rise in VAT, as unlike big businesses they can’t absorb the increase. Thus small firms will not passing on extra profits to consumers. Indeed, they have to pass the full cost on to customers, reduce stock levels or are making extra profits from consumers. Of course find cost savings elsewhere—potentially costing jobs and undermining duty and VAT are part of the price of oil, as is the the Government’s private sector led recovery.” dollar-sterling exchange rate, but the underlying commodity Well, 1,811 people in my constituency know exactly price at the pump is the key component, and any means what he meant by that. by which the Government could persuade the oil companies to pass on their profits to consumers would be gratefully In a Westminster Hall debate on micro-businesses in received. January this year, I was most interested when a Conservative Member with clear expertise in this area, the hon. Member for Newton Abbot (Anne Marie Morris), made 10.28 pm this very thoughtful point about VAT: Susan Elan Jones (Clwyd South) (Lab): I am most “We have on a number of occasions talked about the possibility grateful to you for calling me to speak in the Budget of reducing rates for restoration and repair of houses, bringing debate, Mr Speaker. I do not propose to retread old the rate down to 5% rather than the full 20%. It seems to me that, ground, and I shall confine my remarks to how the given the pressure on the Government to increase the available Budget will affect my constituents. The backdrop to my housing stock, now is the time to look at that again.”—[Official observations is the fact that unemployment has gone up Report, 25 January 2012; Vol. 539, c. 137WH.] by 12% since May 2010, according to the claimant I agree with her totally and am heartened that my own count figures from the Office for National Statistics. party has pledged itself to a one- year VAT cut to 5% on The latest figures show that 1,811 people in my constituency home improvements, repairs and maintenance to help were unemployed in February 2012. Those same statistics home owners and small businesses. In the interests of show that unemployment has risen for 15 of the past small and medium-sized businesses, enterprise and support 21 months, and job losses have included 150 highly for the work ethic, I am bitterly disappointed that the skilled jobs at Tetrapak. Chancellor has not used the opportunity of the Budget A major supermarket is opening in Cefn Mawr in my to do that, as he could have done. constituency next Monday, and I welcome that. I welcome On purchasing power, I am at a loss to understand the fact that about 100 new jobs will be created, although quite how this Government’s apparent embrace of regional most will be part time. What I do not welcome is the pay, which means pay cuts to my constituents and the news that 11 people were chasing every single one of people of Wales more widely, is supposed to create an those job vacancies. That is the sort of economic climate environment in which private sector businesses will people in my home area are facing. It is why it is living flourish. There is also, of course, a deeply moral issue. in cloud cuckoo land to think that the our 41 local If a policeman or woman in my constituency is serving Remploy staff will wander straight out of the factory the public—whether it be in my constituency or elsewhere, that the Government want to shut into a land of milk, as when they travelled down to London in vans to honey and stable new jobs. That is deeply wrong, unjust support the Met police during last summer’s riots—it is and immoral, and if the Tory-Lib Dem double act in right that those servants of the public be paid the same Westminster will not do anything to put it right, it is rates. [Interruption.] I wonder whether there will be a vital that they play ball and devolve it to a Labour real intervention. Perhaps not. In many ways, there will Government in Wales who will. be rightful anger and disappointment at the missed What people in my home area know all too well is opportunities of this Budget. that we need more of the wealth that private sector jobs create. There is a strong work ethic in our area, which Dr Thérèse Coffey (Suffolk Coastal) (Con) rose— runs deep in our twin industrial and agricultural heritage. We do not expect something for nothing, and these Susan Elan Jones: Oh, it looks as though there is strong cohesive communities are very cross—rightly going to be an intervention. No? Yes, please. No, okay. so—when anyone says we do. This is why we are so [Interruption.] I thought we were going to have an concerned about unemployment, and why we know that intervention, but—[Interruption.] 1063 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1064 Situation Situation Dr Coffey: I had assumed that the hon. Lady would Are we really asking the public to believe that a net resume her seat if she had accepted my intervention. 6.8% reduction in public expenditure over the She might want to consider the fact that London police comprehensive spending review period is enough to officers already receive London weighting, as do other rebalance the economy when we saw a 53% real-terms public officials. I remind her, too, that it was her Government growth in public expenditure between 2000 and 2010? who introduced regionalised pay for the Court Service; We were spending £450 billion just 10 years ago on the last Labour Government started it. public services, and we are now spending £702 billion. Are we getting value for money for our constituents and Susan Elan Jones: It is a great pity that the hon. Lady our taxpayers? has been so interested in following the Conservative Of course, Conservative Members will not let the party’s crib sheet that she has not read about what electorate forget the disastrous and poisonous economic happened. The circumstances were very different with legacy left to us by the Labour party—to the extent that the court system, and 50 local rates were reduced to we have to pay £120 million a day in debt interest and five—it was totally different and it standardised the pay are £47.6 billion a year in debt this year. As I said earlier far more. [Interruption.] Oh dear, I fear that the hon. to my right hon. Friend the Transport Secretary, had Lady will have to wait a little longer to be promoted to a Labour remained in office, they would have had to Parliamentary Private Secretary. borrow another £200 billion. They left us a structural As I was saying, I believe that there will be rightful debt in a period of economic growth. They left us a anger and disappointment at the missed opportunities situation in which individual net borrowing doubled in of this Budget. About 14,000 millionaires—we saw just six years, while we have massive sectoral imbalances some of them on the Front Bench the other day; it looks and a systemic dependency on debt. That was Labour’s as though the servants on duty today—will be rubbing legacy. their hands with glee at the £40,000 tax cuts they are Labour Members still have no economic credibility; receiving, while small and medium-sized entrepreneurs, if they were a party with a cogent and coherent narrative teachers, nurses, police, families and pensioners are on the economy, they would pledge to reinstate the 50p collectively faced with a £3 billion stealth tax, and are tax rate and reverse the policy on freezing age-related adversely affected. The 1,811 unemployed people in allowances. They do neither because they are opportunistic Clwyd South will rightly feel let down this week by a and they know that if they were elected to government, Tory Government, aided and abetted by those spectacularly they would need the money. useless Orange Book Lib Dems. Let us hope that, even at this late hour, this Government will put working families and those who want to work ahead of their Charlie Elphicke: My hon. Friend is being far too ultra-rich cronies. generous in saying the Opposition are being opportunistic. They are going back to the 1970s class warfare old Labour that they used to be, and they have forgotten all 10.36 pm the modernisation they achieved in 1997. Mr Stewart Jackson (Peterborough) (Con): I believe that this is a courageous Budget. It is innovative and Mr Jackson: My hon. Friend is absolutely right. The ingenious, notable for the steady stewardship of the Labour party will not make progress with the electorate Chancellor of the Exchequer. We need to take a strategic until it does two things: apologise for the debt millstone overview. The recession from which we have emerged is they left to our children and grandchildren, and develop a deleveraging recession, a paying down debt rather a policy that is not written on the back of a fag packet. than a destocking recession, so some of the normal policy prescriptions on fiscal and monetary policy have I welcome the cut in corporation tax, which gives us proved useless in the face of that. That makes the the fourth lowest such tax rate in the G20. I welcome imperatives of long-term reform of the public services, the reduction in the top rate of income tax from 50p to particularly education and welfare, tax cuts and supply-side 45p, too, as the 50p rate was damaging competitiveness reforms, including the reduction in taxes and the regulatory and not collecting the sums it should have collected, burden, even more important. and was an impediment to entrepreneurial activity and business growth in our country. Dr Coffey: My hon. Friend is making a strong point Let us nail the myth about taking poorer working about deregulation. I would point to paragraph 2.238 of people out of tax. It is a Conservative policy, enunciated the Red Book, which shows that the Government are by Lord Forsyth in the tax commission in 2005, and committed to scrapping or improving 84% of health restated by Lords Saatchi and Tebbit. It is a Conservative and safety regulation. Does my hon. Friend agree that policy to boost people’s incomes because we trust them this is the right approach—focusing on what is most to spend their money wisely. risky as opposed to applying all sorts of regulations I also support the policy on age-related allowances. that are no longer necessary, valid or helpful? There is consensus on the issue of generational fairness— even the hon. Member for Pontypridd (Owen Smith) Mr Jackson: My hon. Friend makes a very good will agree with me about that—and this Government point, which explains why this Budget has had consensus have a very good record on provision for pensioners, support and been viewed from a positive perspective by including the largest ever cash rise in the basic state business organisations across the country. pension from April this year, the uprating of the pension We should be talking a paradigm that involves tax credit guarantee, and the help with fuel bills for poorer and spending, not just tax. There has been too much pensioners. We have a much better story to tell on that focus in the last few months on cutting or increasing than the last Labour Government had, with their ridiculous taxes, when we should be talking about expenditure. and insulting 75p pension rise in 2000. 1065 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1066 Situation Situation Owen Smith: Does the hon. Gentleman agree, however, of building a great Britain and a strong economy falls that the 4.7 million pensioners who will be impacted by to a Conservative Government, and I believe that this the age-related allowances policy will not be pleased to Chancellor has proved he is up to the task. learn that the House of Commons Library note on the Budget concludes that they will be between £80 and £280 worse off in real terms as a result of its provisions? 10.45 am Helen Goodman (Bishop Auckland) (Lab): It is always Mr Jackson: The independent Institute for Fiscal a pleasure to follow the hon. Member for Peterborough Studies disagrees profoundly with the hon. Gentleman, (Mr Jackson), who has a particular perspective on and believes that the proposals are both morally and things. financially right and progressive. The hon. Gentleman I want to focus on two themes: jobs and justice. The will therefore have to try again later. overall state of the economy is as follows: the Budget deficit is £121 billion; interest rates are 0.5%; and the I support the planning regime reforms and the Bank of England has undertaken £325 billion in liberalisation of the national planning policy framework. quantitative easing. Yet the economy is in a depressed I was delighted to hear about the regional policy and state, with GDP below its peak and its potential. The the expansion of airports in the south-east as well. We worst consequence of that is that 2.67 million people are currently losing our competitive advantage to Schiphol, are unemployed, including 1,000 young people in my Frankfurt and Charles de Gaulle. I am delighted, too, constituency. that the Chancellor resisted the temptation to limit further tax relief on higher-rate pension contributions. What are the Government doing to tackle that? Given That would have been an attack on thrift and prudence. the fiscal squeeze on households, it is clear that what is We in Cambridgeshire are very pleased with the news needed is an increase in business investment and exports, about the A14 and the Get Britain Building and Growing but that is not what we are getting. According to the Places funding. Moreover, I have been campaigning for Office for Budget Responsibility forecasts, the increase quite some time for residential estate investment trusts in business investment has been pushed back from 2012 for social housing, and the previous Government did to 2013, and the unemployment peak has also been nothing about that in 13 years. pushed back. In the north-east, the chamber of commerce says that investment is particularly weak. Shockingly, it It would be wrong to say that I am happy with every has been negative since 2008, and the figure currently measure in the Budget. There were some missed stands at minus 6.3. That means that, in contrast to opportunities and missed steps. Fuel duty is an issue what the hon. Member for Peterborough said, the capital that will return—as it would do for any Chancellor and stock is shrinking. Government. I understand why changes were not made this time, but my constituents’ petrol bills are hurting, Why is investment so low, given that The Daily Telegraph and using a car is a necessity, not a luxury. Air passenger tells us that corporate balance sheets are “brimming duty must be looked at again, too. It has increased with cash”and the Bank of England reports that dividends 360% in the last seven years. Because of the major are at record levels? It is because there is a lack of impact on transportation and tourism, I hope that the confidence. Have the Government done anything to Chancellor will revisit that issue. I should declare an strengthen business confidence? What little growth that interest: Thomas Cook has a headquarters in my is forecast will be fuelled by consumer borrowing. Although constituency. Government Members inveigh against household indebtedness, over the forecast period, that is predicted The House will know that I had very serious concerns to rise from £1.5 trillion to £2 trillion. about the child benefit policy, but the Chancellor has listened and taken them on board. We have addressed Richard Harrington (Watford) (Con): The hon. Lady the cliff-edge issue, although there is still the anomaly of is an expert in Treasury and economic matters, so I was the two earners as opposed to the one earner; we should surprised that she stressed that confidence was so important, regard that as a work in progress. My constituents are because does she truly think that the Labour alternative also asking why our European Union contribution has policy of borrowing more money would give businesses increased between the pre-Budget report and this Budget. more confidence to invest? It may be a function of reduced co-payment of funds for EU projects. If we are all in this together, however, Helen Goodman: The fact of the matter is that Ministers that should include the European Union, so we must have overshot on their borrowing. Their borrowing is look at that issue. £147 billion higher than they were planning a year ago, I was very disappointed that, once again, the Budget and the credit rating agencies have put a watch on our did not contain a policy to recognise marriage in the tax creditworthiness. Government Members should not be system. For probably as little as £800 million—less than quite so confident about where their Ministers are a third of the £3 billion we spent on taking people out taking the British economy. of lower rate tax, in order to appease, as it were, our Turning to growth in the enterprise sector, there is to Liberal Democrat friends—we could have given a tax be a measly £25 million for aerodynamics and another break to married couples with children under 3. I am measly £25 million for science, which is crucial to sorry that that did not happen. modernising our manufacturing. Under the last Labour Things will be tough over the next few years. Restoring Government, science spending rose by £1 billion; a economic health after the 13 years of the last Labour £25-million investment will not get us anywhere. Government—years of waste, profligacy and creating a Let us discuss what the Government are doing on client state—was never going to be easy. Once again, the corporation tax. They have trumpeted a cut in the main job of getting the finances of this country straight and rate, but the reductions in the allowances mean that the 1067 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1068 Situation Situation [Helen Goodman] If the Liberal Democrats look at the measures in the Red Book to combat tax avoidance, they will see that six net support to industry overall is £200 million. No of them will be legislated for in the 2013 Finance Bill wonder investment at home is so flat. Government instead of the 2012 Finance Bill. If they look at table Members claim that GlaxoSmithKline took its investment 2.1 in the Red Book, they will see that the forestalling of decisions in response to the Budget, but that is patently the additional rate reduction and the cap on unlimited ridiculous. GSK has been planning its investments for tax reliefs—that is the new phraseology for the tycoon the past two years, in response to the patent box changes tax—adds up to £2.4 billion this year. In other words, announced by the previous Government before the this coalition Government have given their wealthy general election. Everything this Government have done friends one last chance to avoid tax, and that avoidance this time has been swamped by the cuts to capital will be worth £2.4 billion. That is equivalent to all the allowances that they made in their first Budget, which cuts imposed in the June 2010 Budget on lone parents, took £1.5 billion from the private sector. on working parents and on the disabled.

Tom Blenkinsop: Government Members are keen to 10.55 am take the credit on GSK, but they do not want to take the credit for what has happened at Rio Tinto Alcan or Richard Harrington (Watford) (Con): I am conscious the 3,000 job losses at BAE Systems. Does my hon. of the fact that our speeches are limited to seven minutes. Friend find the juxtaposition interesting? I have so much to say in the Budget debate but, first, I shall just answer something that the hon. Member for Bishop Auckland (Helen Goodman) said. One moment Helen Goodman: My hon. Friend is absolutely right. she was talking about the importance, in her experience, Government Members are completely unrealistic about of confidence in business and among those who do what business needs and simply do not understand that business, and I perfectly understand that, but the next what is needed is a co-operative approach between the moment she was pouring scorn on attempts to reduce public and the private sectors, and long-term investment. the taxation for those people. I must ask her something, The North East Chamber of Commerce told us that its which she does not need to answer now but perhaps she checklist for the Budget was an increase in capital will consider: what gives people confidence? They need allowances and the industrial buildings allowance; a lower interest rates, which they have got because of the reduction in employer national insurance contributions prudent things that this coalition Government have for young people; and more support for apprenticeships. done to reduce debt; they need stability and the possibility None of that appeared in the Budget this week. of obtaining funds for investment, and the Government The Government simply have no strategy for jobs or have done such a lot on that; and, above all, they need growth. to know that if they work hard to set up a business, with We have heard a lot from Government Members all the hassle and aggravation that mortgaging their about the benefits of cutting the 50p rate, but even the house and creating jobs involves, and they are successful, Chancellor of the Exchequer does not have the gall to they will keep the majority of what they earn. We must put cutting the top rate of tax into the “enterprise and not forget that that is what growth is about and what growth” section of his Budget. The distribution effects confidence is about. We cannot therefore pour scorn on of this Budget are shocking. It is grotesque to give a reducing this top rate of tax, which does not work, as millionaire an extra £40,000 while cutting the tax credits has been empirically proven in the figures that have of those on the minimum wage who work 16 hours a come out. People in business do all this grafting and week by £4,000. That is a complete disgrace. As the striving to do what they do, and nothing knocks their Leader of the Opposition pointed out on Wednesday confidence more than the fear that the majority—more afternoon, 300,000 people will benefit from the cut in than 50%, if employers’ national insurance is included—of the 50p rate, by an average of £10,000, whereas only what they earn will be taken away. 4,000 people will pay the higher stamp duty on properties worth more than £25 million. The Chancellor’s estimate Helen Goodman: I am interested in the hon. Gentleman’s that the loss in revenue from cutting the 50p rate is description of setting up a business. When my husband £100 million is risible. It is absurd to suggest that set up a business, he took a salary cut. I do not believe £2.9 billion more tax will be collected because of behavioural that what motivates people is just what they are going to changes—that would be an unprecedented impact on earn and how much money they are going to put in people’s behaviour. their back pocket; it is about being confident that they Before I leave the issue of tax avoidance, I wish to can sell whatever it is they are selling and that there is a discuss the great contribution to the Budget made by long-term market for what they are doing. The cuts in the Liberal Democrats. They seem pleased with securing domestic consumption are what is killing business a crackdown on tax avoidance in return for succumbing confidence in this country. to the Tory desire for a cut in the 50p rate. In fact, the Institute for Fiscal Studies says this morning that there Richard Harrington: I thank the hon. Lady for those is less action on tackling tax avoidance in this Budget comments. I remind her that I said that the rate of than there has been in previous years. taxation was one of a package of things that gives confidence. I have started and owned a business, and I did not draw a salary for two or three years as a result. Tessa Munt (Wells) (LD) rose— I drove minicabs and ran a market stall at weekends in order to pay my way, so I know what it is like, as I have Helen Goodman: I am sorry, but I will not give way, as experience in that field. I do not feel it is appropriate to I have used up my intervention time. take lectures from people who perhaps have not done 1069 Budget Resolutions and Economic 23 MARCH 2012 1070 Situation that themselves. I am talking not about the hon. Lady, Alcohol Strategy but about many other people who have mentioned these things. 11 am Matthew Hancock: Should we not base our approach The Secretary of State for the Home Department on evidence? Given that the evidence, supported by the (Mrs Theresa May): With permission, Mr. Speaker, I Office for Budget Responsibility, shows that there are would like to make a statement on the new cross- behavioural effects that lose revenue, does this not show Government alcohol strategy. Most people have no why the Labour party got us into such a mess? That problem with alcohol. They enjoy a drink and it is one party ignores and is positively disdainful of the impact of life’s pleasures, but we all know there is a significant of taxes on people’s behaviour. minority in this country who drink dangerously and who cause disproportionate harm. Almost 1 million Richard Harrington: I absolutely agree with my hon. violent crimes and 1.2 million hospital admissions each Friend. I hear a lot from people from all parts of the year are alcohol-related. Just under half of all violent spectrum in my constituency, as other hon. Members crime is connected to alcohol and drunken brawls and do in theirs. In my judgment, people are very realistic, disorder have made many town centres no-go areas for because they realise that the mess we got into was law-abiding citizens. caused by chronic overspending and a budget that was completely out of control under the previous The effects of such dangerous drinking on crime, Administration. I believe that the polling on who got us communities, children and families are clear, but it need into this mess is consistent on that point. So it is clear not be like this. Alcohol can be consumed responsibly, a that no matter which party people are going to vote for drink can be enjoyable, not dangerous, and a thriving in the future, they do not want this to happen again; night-time economy can be built on the basis of a they do not want overspending to take place and they sensible drinking culture. In Durham, a “Best Bar None” do not believe that spending more money and borrowing accreditation scheme promotes responsible pub more money is the solution to this country’s economic management. Licensed premises must meet minimum problems. This is the first time in my adult life, from standards, for example on the skills and knowledge of reading the papers and taking part in politics, that I can their bar staff, to gain approval. They are encouraged recall this important lesson having got into the public’s not to serve beer to drunks and to build a good relationship consciousness. That is sensible, because people can relate with the police and local agencies. After three years, to it in their own household earnings and the budgets licensees reported a 75% increase in trade, a 50% increase that they make for themselves. in city centre footfall and an 87% reduction in violent crime. Experiences like that show that city centres can Let me move on to the growth area of the Budget. become more attractive places to visit at night if they The focus is on economic growth and infrastructure allow sensible drinking rather than a licensing free-for-all. and that is important because the future growth of this country is the most significant thing that the Budget is Such schemes should be encouraged, but any progress about. Rather than talking about— will for ever be overshadowed unless we stop the flow of Proceedings interrupted (Standing Order No. 11(4)). cheap alcohol. In some shops and supermarkets, drinks are now so heavily discounted that it is possible to buy a can of lager for as little as 20p or a two-litre bottle of cider for just £1.69. That means that many people now drink excessively at home and that many pre-load before they go out. Two thirds of 17 to 30-year-olds recently arrested in one city said they had pre-loaded before going out, and pre-loaders are estimated to be two-and- a-half times more likely to be involved in violence than other drinkers. So we need to deal with the dangerous drinkers, crack down on the irresponsible businesses and stem the tide of cheap alcohol. That means providing punishment and treatment for those who have shown that they cannot drink sensibly, tightening our licensing laws and cracking down on those who sell alcohol to children or drunks. It also means, for the first time, putting a sensible price on alcohol. Those who have a particular problem with alcohol need specialist help to change their behaviour, so we will provide better treatment for dependent drinkers. We will develop alcohol interventions in prisons and will make alcohol treatment requirements imposed by the courts more effective. Dangerous drinkers who are convicted of alcohol-related crimes will have their unqualified right to drink removed through piloted sobriety schemes. These schemes will involve breathalysers and specialist electronic tags to monitor offenders’ alcohol levels and ensure they remain sober. From April, pilots using conditional cautions will launch in five areas—Westminster, St Helens, Hull, Plymouth and Cardiff. Further pilots 1071 Alcohol Strategy23 MARCH 2012 Alcohol Strategy 1072

[Mrs Theresa May] This will ensure for the first time that alcohol can be sold only at a sensible and responsible price, stopping will be launched shortly to tackle more serious offenders the deep discounting and bargain basement sales that using community orders. We will legislate to support drive binge drinking. We will consult over the coming the roll-out of these schemes nationwide should they months on the level of the minimum unit price and will prove successful. seek to introduce legislation as soon as possible. We do As well as tackling irresponsible drinkers, we must not now intend to go ahead with the proposed ban on also help local areas to tackle irresponsible businesses the sale of alcohol below the cost of duty and VAT. by giving them greater powers over licensing. The Most drinks will not be affected by minimum unit Government’s reforms to policing, health and the criminal pricing, but the cheap vodka, super-strength cider and justice system will help to put power in the hands of special brew lagers will go up in price. The dangerous local people, but we also want to give local areas specific drinks will become more expensive but the price of a powers to deal with alcohol-related problems. New normal pint in the local pub will not increase by a single powers in the Police Reform and Social Responsibility penny. We will also consult on introducing a ban on Act 2011 will come into force on 25 April. They include multi-buy promotions in shops, such as “buy one, get powers to make it easier for local agencies to refuse, one free” deals that push people to buy more alcohol revoke or impose conditions on a licence and to close than they want. We do not intend to apply this ban to down premises that sell alcohol to children or contribute pubs, bars and restaurants, which, as I have already to crime and disorder. They will double to £20,000 the said, offer a more controlled drinking environment. We maximum fine for persistently selling alcohol to children, want to encourage these premises to survive and thrive. and anyone with an interest will be able to object to new This strategy is targeted explicitly at dangerous drinkers, licensing applications no matter where they live. Later problem pubs, irresponsible shops and harmful drinks. this year, new early morning alcohol restriction orders Those who enjoy a quiet drink or two have nothing to will give local areas the power to stop alcohol sales late fear from our proposals. The local pub has nothing to at night if they are causing problems by restricting fear and the responsible off-licence has nothing to fear. opening and closing hours, and we will introduce powers We will help to tackle problem drinkers, we will help for local areas to control the density of licensed premises. local areas to deal with local licensing problems, we will We will also bring in powers to allow local areas to encourage the alcohol industry to act responsibly and place a new late-night levy on businesses that sell alcohol we will put a stop to the easy availability of cheap booze late into the night so that businesses that benefit from that has blighted Britain for too long. This is a late-night drinking will contribute towards the cost of comprehensive strategy to take back our town centres late-night policing. from the drunken thugs and restore them to the law-abiding The alcohol industry also has an important role to majority. I commend this statement to the House. play. This strategy promises to support and free up businesses that are acting responsibly. Most British 11.9 am pubs promote a good drinking environment and are the Yvette Cooper (Normanton, Pontefract and Castleford) safest and friendliest places to have a drink, so we will (Lab): This announcement about the alcohol strategy is build on the existing responsibility deal to drive greater extremely important, but the way in which it has been industry action to prevent alcohol misuse. For example, done is a complete shambles. It has been rushed out on 35 leading drinks companies are today launching a a Friday morning when many of our colleagues have pledge to give consumers a wider choice of lower-strength engagements in their constituencies and without notifying products and smaller servings with the aim of taking the Select Committee on Home Affairs. So, despite the 1 billion units of alcohol out of the market by 2015. many pieces of work the Committee has done on this Individual, local and industry actions are all important issue, its members do not have the chance to be here in to dealing with problem drinkers and problem pubs, but Parliament to scrutinise the strategy. dealing with problem pricing can be done only by Why are we debating it today rather than on Monday, central Government. We know that the availability of as was previously planned? It cannot be to ensure that cheap alcohol helps to fuel binge drinking. Strong evidence Parliament hears the details first, because we have had from a number of studies conducted in the UK, Europe, the chance to read them in the Daily Mail, The Guardian America, Canada, New Zealand and elsewhere shows and The Daily Telegraph, and all the other newspapers that alcohol consumption is closely linked to the price that were given the details yesterday. I even have the of alcohol. Those studies also showed that increasing press pack, complete with questions and answers, which the price of the very cheapest alcohol does the most to was given to the media yesterday and not to the House. reduce heavy drinking. There is also evidence that young It includes considerable additional information that has people are particularly sensitive to changes in price. not been given to the House as part of the Home Increasing alcohol prices lowers their alcohol consumption. Secretary’s statement today. Nor can the reason be for That is why we have already taken action to tackle the Parliament to debate the statement, when only two availability of cheap alcohol. We have stopped high-strength hours’ notice has been given of a statement on a Friday. white ciders from qualifying for lower rates of duty, we I take this opportunity, Mr Speaker, to apologise to the have introduced a new higher rate of duty for high-strength students I was due to meet in Pontefract at lunch time beers and we have brought in a new lower rate for and have had to let down. Many of our colleagues will lower-strength beers. be in the same position. Those significant steps forward will help better to The only reason we are sitting on Friday is so that the match prices to alcoholic strength, but the problem is Budget debate could take place today rather than next now so acute that we need to go further. We will week, Parliament could finish 10 days early and the therefore introduce a minimum unit price for alcohol. Prime Minister would not have to answer Prime Minister’s 1073 Alcohol Strategy23 MARCH 2012 Alcohol Strategy 1074 questions next week. There is no precedent for handling cavalier fashion in the announcements made to the a long-awaited consultation document in this way, on a House? Does she agree that the Government are wrong Friday morning, with no notice. Over the past 10 years, to use a serious alcohol strategy as a cover for their there have been only three Government statements on a chaotic confusion over their dreadful Budget? Will she Friday: on the Iraq war, on swine flu and on Libya—all treat the issue with the seriousness it deserves? We will of them involving serious issues around national give it proper support, if she will do so for the future. emergencies. What is the national emergency today? What is the national emergency that prompted a Mrs May: That was the usual response from the right decision to be made late yesterday afternoon to brief an hon. Lady—bluster and political point scoring. One important and serious strategy to the newspapers which thing was missing. After the disaster of Labour’s Licensing meant that a decision was made this morning to interrupt Act 2003, after election text messages saying, “Couldn’t the debate and make an oral statement? The only emergency give a XXXX for closing time,” and after all that is that the Prime Minister and the Chancellor have gone drink-fuelled violence and disorder, there was not even wobbly over the coverage of their Budget. Their Budget a hint of apology from the right hon. Lady. has gone wrong because pensioners are furious about I suggest that the right hon. Lady speaks to the the granny tax, middle earners are shocked to discover previous Home Secretary, the right hon. Member for they will be paying the higher rate and everyone else is Kingston upon Hull West and Hessle (Alan Johnson), furious that the Government are bringing in a £10,000 who said that he regrets not doing more during his time tax break for the highest earners in the country, including, in office to tackle the problems caused by binge drinking. we discover, half the Cabinet. This is not about a 40p It is a shame that she cannot bring herself to be as frank minimum price; it is about their failings on the 40p tax. about her party’s record in office. The Home Secretary is being used as a human shield for the Chancellor and the Prime Minister, and she should It was difficult to decipher the right hon. Lady’s have said no. questions about the actual statement on alcohol strategy. I think she raised two points. She asked about ensuring The issue is extremely serious. The Home Secretary is that the minimum unit price did not lead to a cash right: 1 million violent crimes each year are linked to windfall for supermarkets. I do not believe it will, alcohol. Nearly 9,000 people die each year as a result of because the supermarket industry is highly competitive; alcohol abuse. Many people—indeed, most people—drink it has small margins on its goods and I expect money moderately and responsibly, and we enjoy it. The Home made through higher alcohol prices to be passed on Secretary is right to say that responsible drinkers should through lower prices for other goods. When the cost of not be penalised, but we cannot stand by and ignore the living is an issue, I should have thought that the right serious problem of dangerous alcohol abuse. Many hon. Lady would welcome that. policies have been tried already, including linking duty to strength and giving the police stronger powers to The right hon. Lady asked about health bodies. They clamp down on alcohol-related antisocial behaviour, will of course be in a position to contribute to local but she is right: they have not solved the problem. licensing decisions; indeed, the new public health and wellbeing bodies will be able to participate, alongside The Home Secretary is also right to say that more the police and local authorities, in setting strategies to now needs to be done. Many of her policies are sensible deal with alcohol in their local area. The right hon. and we will support them. I agree that this is the right Lady now takes an interest in health bodies having a time to try minimum pricing. There are serious questions role, although sadly she and her party opposed the Bill that she should answer—and the House should have the that enabled them to be set up. opportunity to debate—about how we ensure that supermarkets do not simply get a huge windfall, and I recognise that the right hon. Member for Leicester what safeguards there should be for pubs. I agree, too, East (Keith Vaz), the Chairman of the Home Affairs that we should explore the issue of sobriety orders, but Committee, is not in the Chamber, but last year he said: these are serious questions that the House should have “May I welcome the Government’s proposals for a minimum the chance to debate, to make sure they are not used price for alcohol? They are of course in keeping with the wrongly for domestic violence cases and do not tackle recommendations that the Home Affairs Committee made last the seriousness of the abuse. year.”—[Official Report, 24 January 2011; Vol. 522, c. 3.] I agree too that licensing is important. I hope the In 2008, the Home Affairs Committee talked about the Home Secretary will now support our proposals to put cheap availability of alcohol, recommending that public health in the terms for licensing decisions. More “the Government establish as soon as possible a legal basis for needs to be done on prevention, which had little mention banning the use of loss-leading by supermarkets and setting a in the statement—little wonder perhaps, when alcohol minimum price for the sale of alcohol.” education is being watered down in schools. These are What I think I deciphered from the right hon. Lady’s all extremely serious issues and we should have the bluster is that the Opposition actually support the idea opportunity to debate them properly in Parliament; but of an alcohol strategy and what the Government are we do not have the opportunity for many MPs to ask doing. If I am correct, I welcome that. questions today and to intervene and discuss the issues with the Home Secretary. Nigel Mills (Amber Valley) (Con): I think the whole Will the Home Secretary tell us when the decision House welcomes what the Home Secretary is trying to was taken to make the statement today? Will she agree achieve with the policy, and we certainly wish it every to come back to the House and properly debate the success. Could she comment on how we can tackle a strategy, giving the Home Affairs Committee and others possible increase in the black market—the smuggling of the proper chance to ask questions? Does she agree that cheap booze from abroad? We do not want the she is wrong to treat something so serious in such a reinstatement of the booze cruise to France. 1075 Alcohol Strategy23 MARCH 2012 Alcohol Strategy 1076

Mrs May: My hon. Friend raises an important point. those who deal responsibly with their clients, as many There are still issues about alcohol and other goods, landlords and landladies do, are able to carry on doing such as cigarettes, being imported in ways that avoid so, and that we hit that end of the market that is being paying tax to the Government. Much of that involves fuelled by this very cheap alcohol, often sold by organised crime groups. One of the things the Government supermarkets. are doing is creating the new National Crime Agency, which will strengthen our ability to deal with organised Helen Goodman (Bishop Auckland) (Lab): I went to crime, and the specific border police command will talk to young people in the youth club in Spennymoor strengthen our border security to enable us fight those about exactly this issue. I believe that price does influence problems even better than we are able to do today. young people’s behaviour. What I do not understand is why the Government are having a consultation on this Lyn Brown (West Ham) (Lab): Clearly, the Home issue but did not have a consultation on the granny tax. Secretary has been sent to the House today in a shameful attempt to divert attention from the disastrous Budget, Mrs May: What we are announcing today is an but can she tell me why if somebody is prepared to alcohol strategy that will deal with the problems. It is spend £60 a night in sunny Stratford, they will be interesting that no member of the Opposition has stood diverted from spending an extra pound in the supermarket up and addressed the issue of the problems that were to load up before they go out? caused by Labour’s Licensing Act.

Mrs May: First, I congratulate the Labour Whips on Sarah Newton (Truro and Falmouth) (Con): I so having managed to circulate their questions to their welcome the contents of the statement, especially as it own Whips to stand up on the Back Benches to comment. will spell the end of the dreadful legacy of the Labour What we are doing— party’s so-called café culture of licensing, which has blighted town centres up and down the country and Lyn Brown: There are four Whips behind you because done so much harm to people’s health. I particularly there is no one else in the House. welcome the licensing changes. Could the Secretary of State inform the House a bit more about how the Mrs May: Does the hon. Lady want an answer to her licensing changes could also be applied to supermarkets? question or not? By setting a minimum unit price, we are tackling the cheap alcohol that is sold and the bulk Mrs May: I thank my hon. Friend for that question. discount sales of alcohol, which mean that people “pre- She is absolutely right. We were promised, under Labour’s load” at home. They are often drunk when they leave Licensing Act, a European-style café culture. Nothing home. They go to their town centres and sadly, they could be further from the truth in many of our town create the drunkenness, the brawls, the fighting in the centres on a Friday and a Saturday night, and law-abiding streets, the mayhem that mean several things. It means citizens are suffering as a result. We are looking at that the police have to spend money and deal with those ensuring—in some of the legislation that we have already issues. It means that accident and emergency departments passed, such as the Police Reform and Social Responsibility in our hospitals are having to deal with people in Act 2011, we are ensuring it—that it is easier for local drunkenness; every year, 1.2 million admissions to accident authorities to clamp down on those outlets that are and emergency units are alcohol-fuelled. It also means selling alcohol particularly to children. The fine has that many law-abiding citizens just do not feel able to go been increased. We are also making it easier to revoke into their town centres at night, particularly on Fridays licences where people are persistently caught selling and Saturdays, and I think it is time we did something alcohol to children. about it, and that is what this Government are doing. Caroline Lucas (Brighton, Pavilion) (Green): A minimum Tessa Munt (Wells) (LD): I welcome this consultation price for alcohol is something that I have campaigned as an opportunity to tighten up on irresponsible sales. on, and I am delighted that, on this issue at least, the Does the Secretary of State agree with landlords such Government are listening to the health professionals, as Juliet Watchman of The Bell Inn in Shepton Mallet, who warn that we are losing nearly £3 billion a year on who makes the point that if she behaved as local alcohol-related disease. Without pre-judging the outcome supermarkets did and sold lager for 34 pence per pint of the consultation, will the Home Secretary acknowledge and cider at 48 pence per pint—pocket-money prices—or that the university of Sheffield suggests that a unit price sold to those who are already heavily under the influence of 50p is more effective? Why has her strategy not of alcohol, she would have her licence revoked by the included the really important issue of alcohol advertising? local authority, and that this is a massive opportunity for landlords, the police and hospitals to contribute to Mrs May: I welcome the support that the hon. Lady the consultation? is giving to the thrust of the alcohol strategy. We have based the assumptions that are in the strategy on a Mrs May: I thank my hon. Friend. I commend the minimum unit price of 40p. I am aware that there are landlady of The Bell Inn in Shepton Mallet for taking those out there who say that it should be higher. We will that responsible approach to the issue of alcohol. We be consulting, and obviously we will look at the results certainly look forward to receiving responses to the of that consultation when we make a final decision on consultation from people such as her constituent and the unit price. others. There are responsible landlords out there who are running pubs in difficult circumstances. We know; Sajid Javid (Bromsgrove) (Con): I warmly welcome we have all seen many pubs in communities closing. We the statement by my right hon. Friend. She has talked want to ensure that those who drink responsibly and about the changes in licensing laws made by the previous 1077 Alcohol Strategy23 MARCH 2012 Alcohol Strategy 1078

Government, which incidentally I think were well reported work only if they are properly enforced. How does the in the press before they were reported to this House. Home Secretary square that with her reductions in Can she perhaps expand on the impact that those policing budgets? licensing changes had on the binge-drinking culture? Mrs May: It ill behoves an Opposition Member, Mrs May: I thank my hon. Friend for that. He is given the extra burden that the police felt as a result of absolutely right. We were promised that the legislation the Licensing Act 2003, to stand up and refer to policing. would suddenly open an era in which people would sit The hon. Lady talked about the strategy being only casually in the streets, drinking responsibly. In fact, about what has already been passed. No, it is not. Of what we saw was an enormously increased burden on course, we have brought together a number of issues, the police, who had to deal with the late-night and some of which we have already legislated for, such as early-hours licences that were allowed as a result of changing local authorities’ powers in relation to the Labour’s Licensing Act—that is why the police welcome 2003 Act, and some of which we have not yet introduced, the steps that we are taking today—and of course that such as minimum unit pricing. Also, we have included just helped to fuel that binge-drinking culture which has more action with industry and on public health, dealing caused so many problems in our town centres and high with health issues related to the harm that can be streets. caused by excessive drinking. This is the first time that I apologise; the hon. Member for Brighton, Pavilion the Government have produced a cross-Government (Caroline Lucas) previously mentioned advertising. In strategy across the board, addressing every way in which fact, we are looking at the issue of advertising and this Government can deal with the problems of alcohol display of alcohol as part of the responsibility deal. which, sadly, we see in too many people in this country.

Owen Smith (Pontypridd) (Lab): I agree that it is a Matthew Hancock (West Suffolk) (Con): Pubs in very important statement that we have before us today, West Suffolk and across the country are not only but it is a shame that it has been snuck out as a economically important but often vital hubs of the diversionary tactic on a Friday. As the Home Secretary local community. Can my right hon. Friend tell me a bit failed to answer the question asked by my right hon. more about what impact this statement will have on Friend the Member for Normanton, Pontefract and pubs, where so much, in many cases mostly, responsible Castleford (Yvette Cooper), can she now tell us when drinking happens? exactly she was instructed to make today’s statement?

Mrs May: The Opposition really need to get their Mrs May: I am grateful to my hon. Friend for making story straight. The hon. Gentleman’s right hon. Friend the point that pubs play a very important role in our stands up and complains that there has been too much communities. Pubs have nothing to fear from the minimum press and media coverage about this, and he claims that unit price that is being introduced today. That will not the statement has been slunk out. have an impact on them. I hope that we will see more people feeling able to go to pubs, particularly those in Mr Stewart Jackson (Peterborough) (Con): I strongly town centres which until now people have often felt support my right hon. Friend’s statement. It is important unable to visit because of the brawling that they see in to make the point that a Conservative-led Government the streets. However, we will be looking very carefully in should be about not just laissez-faire liberalism but a number of areas to ensure that what we are doing is social responsibility and civic duty. How will my right very clearly focused on those outlets that are bulk- hon. Friend ensure—if necessary, by sanction—that discounting cheap alcohol, which enables people to get local authorities properly use the power that she gives drunk before they go out, not affecting the pubs. them, given that they have not chosen to be very prescriptive in their powers under the Licensing Act 2003? Mrs Mary Glindon (North Tyneside) (Lab): Why has the voluntary agreement that the Government said they Mrs May: We obviously had a lot of consultation had with the supermarkets failed? with local authorities when we were putting through the changes in the Police Reform and Social Responsibility Mrs May: I referred to it in my statement, but it has Act 2011, and we saw that they welcomed what we were also been announced today that, as a result of agreement doing, which will give them more freedom to be able to with industry, we will see something like 35 billion exercise powers. One problem was that in some areas units— the Licensing Act was drawn quite rigidly, in terms of what authorities were able to do and how they were able The Secretary of State for Health (Mr Andrew Lansley): to interpret it. They will welcome the extra freedom that A billion units a year. we are giving them, particularly the late-night levy which, as I said in my statement, will defray the costs of late-night policing. Mrs May: Yes, 1 billion units a year will be taken out. Sorry, I was getting ahead—[Interruption.] I wondered Sheila Gilmore (Edinburgh East) (Lab): The Home how long it would take the hon. Member for Rhondda Secretary’s statement repeats an awful lot of things that (Chris Bryant) to start— have already happened, which illustrates that it is has been cobbled together—announcing new powers from Mr Speaker: Order. I apologise for interrupting the an Act that this Parliament has already passed. Further Home Secretary. I am a little concerned about the hon. powers such as heavier fines for those serving Member for Rhondda (Chris Bryant), who I fear is under-age people, which I think is very valuable, will suffering from compulsive chuntering disorder. I know 1079 Alcohol Strategy23 MARCH 2012 Alcohol Strategy 1080

[Mr Speaker] Charlie Elphicke (Dover) (Con): In the town of Deal that I represent, residents are beset in the early hours of that he will now calm himself, and we look forward to the morning by drunks returning home, smashing up hearing from him eloquently and possibly at length on property and fights breaking out. The district council other occasions. says that there is nothing it can do because of the rules brought in by Labour’s 24-hour drinking culture. In Mrs May: Thank you, Mr Speaker. As I was saying to changing the rules, will the Home Secretary give real the hon. Member for North Tyneside (Mrs Glindon), power and discretion to the district councils? we have already been working with the industry to ensure that changes can take place. My right hon. Mrs May: My hon. Friend is right. We are changing Friend the Secretary of State for Health has done a lot the law on the powers of the licensing authorities, and I of work on that. It will lead to 1 billion units of alcohol am sure that Deal and other towns and cities will find being taken out by 2015, and 35 companies have signed very helpful the early morning restriction orders, which up to that deal. will be introduced later this year and will enable local authorities to restrict licensed premises’ ability to open Mr Tobias Ellwood (Bournemouth East) (Con): This between midnight and 6 am. is an important issue for Bournemouth. We have a vibrant and popular town centre as part of the local Tom Blenkinsop (Middlesbrough South and East economy, but it has suffered because of the previous Cleveland) (Lab): Does the Health Secretary agree with Government and their reckless Licensing Act, which the policy? has been very costly to the town centre. The residents are concerned that there are simply too many pubs and Mrs May: Yes. clubs there. Will my right hon. Friend expand on her comments on density and powers that might be given to George Eustice (Camborne and Redruth) (Con): Police local authorities? in Camborne in my constituency have recently dusted off the Inebriates Act 1898, which contains a comprehensive Mrs May: My hon. Friend is absolutely right. Sadly, package of measures to deal with habitual drunks. As many towns and cities across the country have felt the well as the new measures that the Home Secretary has impact of Labour’s Licensing Act in the same way as introduced today, will she ensure that the police are Bournemouth. We will enable local authorities to take making proper use of existing powers? into account the density of licensed premises in a town centre when they are determining applications. One of Mrs May: My hon. Friend makes a fair point. We the problems in Maidenhead in my constituency was want to ensure that existing powers that should be used, that application after application was given permission. particularly on dealing with premises that continue to Many residents felt that things started to go wrong sell alcohol to people who are drunk, are exercised. through that. All too often, the sort of bars to which However, I am sure that responsible landlords will problem drinkers went were in our town centres. welcome the statement. Indeed, the chief executive of Greene King said today that he strongly believes that Kelvin Hopkins (Luton North) (Lab): As a former the Government’s intention to introduce a minimum chair of the all-party group on alcohol misuse, I think unit price for alcohol is an important step. that I was the first Member to table an early-day motion raising the problem of cheap alcohol and its impact on Mr Russell Brown (Dumfries and Galloway) (Lab): our society. However, the Home Secretary has not This is undoubtedly a problem, but it is disappointing mentioned the more than 6,000 babies every year who that the Home Secretary makes some of our town and are born damaged by alcohol consumed by their mothers city centres at weekends sound like the wild west. Alcohol during pregnancy. In America, every drink canister and is a health issue, and the figures clearly show that. bottle has a label warning pregnant women about drinking. Earlier this week, figures published on liver disease were Will the Home Secretary take that into account in her extremely worrying. The Home Secretary says that there consultation? is a consultation, yet she is determined to introduce a minimum price, even if the results of the consultation Mrs May: We do indeed. The hon. Gentleman will go against that. Pricing is only one tool in the box that find that we refer in the alcohol strategy to the issue of needs to be considered. Young people may laugh at the pregnant women drinking and the impact on the foetus Home Secretary’s comment this morning that they are and therefore on the babies when they are born. The particularly sensitive to changes in price—many are drinks industry—for example, Diageo—has taken several not. initiatives on research and other aspects of the problem. The hon. Gentleman and I do not often agree on issues, Mrs May: The hon. Gentleman makes a valid point but I am very happy to agree with him on the importance about the health aspect. There has been a 25% increase of the matter that he raised. in liver disease between 2001 and 2009. As he said, figures on that came out earlier this week. That is why Several hon. Members rose— the document is a comprehensive strategy. It deals with alcohol pricing, health, relationship with the industry Mr Speaker: Order. I am happy to take a few more and the powers for licensing authorities. It is a cross- questions but extreme brevity is required because there Government strategy, which brings all those issues together, is extensive interest in the Budget debate, to which I to deal with what I hope Members of all parties recognise know the House will wish shortly to return. as a problem that has not been tackled for too long. 1081 Alcohol Strategy23 MARCH 2012 Alcohol Strategy 1082

Dr Thérèse Coffey (Suffolk Coastal) (Con): Many Pat Glass (North West Durham) (Lab) rose— nurses, doctors and other hospital staff will welcome the moves to improve zero tolerance towards drunks Mr Speaker: Order. The two remaining Members being abusive. However, will my right hon. Friend be who wish to ask a question could compete with each careful that she is not, with the multi-buy option, harming other to see which is the briefer. families that budget carefully during the week when they purchase alcohol? Martin Vickers: The people of Cleethorpes will broadly support the announcement. However, there will be concerns Mrs May: My hon. Friend is right to say that we need that, once again, the law-abiding majority are being to implement the strategy so that it has the impact that penalised. Will the Home Secretary assure me that the we want on the cheap alcohol and bulk discounts that police will use existing and new powers to the maximum, lead to the sort of behaviours that I described earlier. and that courts will ensure a robust approach? When we consult about dealing with bulk discounts, I am sure that the very point that she makes will be Mrs May: I absolutely reassure my hon. Friend of raised. Obviously, we will consider that carefully. that. The law-abiding majority have nothing to fear from these proposals. Roberta Blackman-Woods (City of Durham) (Lab): I point out to the Home Secretary that part of the success Pat Glass (North West Durham) (Lab): I thank the of the Durham Best Bar None scheme was effective Home Secretary for the positive remarks that have been policing, which is now being put at risk because of cuts made this morning about Durham constabulary and to Durham constabulary’s budget. We all want responsible about the Best Bar None scheme. I recently spent some pricing of alcohol, and there is much that I welcome in time with Durham constabulary on a Friday night, the statement. However, the right hon. Lady has not targeting under-age drinking, and I personally poured explained why it was necessary to interrupt the Budget out 11 litres of cheap vodka that was taken from 13 and debate today to make the statement. Many of us are 14-year-olds, having been purchased by older young here to speak for our constituencies and outline how the people and by parents, not necessarily from off-licences, Budget has had a negative impact on them. I have a but from supermarkets. This is an extremely serious specific question. A real problem in Durham is special issue, but I am disappointed by the way the statement promotions by pubs aimed at students and young people. has been rushed out this morning. If it was so important, Will they be able to continue? why was it not brought out properly in the Budget on Wednesday? Mrs May: The hon. Lady made several points. I fully recognise the role that the Durham police played in the Mrs May: This would never have been brought out in work that is being done there. It was a collective operation the Budget because this is a cross-Government strategy through licensees, the police and others. I am very which deals with a variety of issues that are not matters pleased that Chief Constable Jon Stoddart of Durham, for the Budget. The hon. Lady is right to say what an who is the ACPO lead on the matter, has said that he important issue this is. That is why the Government greatly supports the policy. He said that he welcomed have been working across Departments to produce for any new approach the first time a comprehensive strategy which, I hope—it “that will help reduce the availability of cheap alcohol… and is the intention—will deal with the sort of problem that reduce pressure on the police.” she has rightly raised and recognised. That is exactly what the strategy will do. Mr Speaker: Order. I am grateful to the Home Secretary Martin Vickers (Cleethorpes) (Con) rose— and colleagues. We return to the Budget debate. 1083 23 MARCH 2012 Budget Resolutions and Economic 1084 Situation Budget Resolutions and Economic they should keep the majority of what they earn. I hope Situation that when criticising the reduction from 50% to 45%, hon. Members on both sides of the House will bear that Proceedings resumed. in mind. I believe that that ambition is the core of growth in this country and I commend the Chancellor for progress in this respect. 11.41 pm Richard Harrington: This has been like the show, 11.45 pm “Who Wants To Be A Millionaire?”—a question is Gregg McClymont (Cumbernauld, Kilsyth and asked, there is an advert break, and everybody is waiting Kirkintilloch East) (Lab): We have heard quite a lot for the answer. My quiz show might be called, “Who already about the economic situation. The context for used to want to be a millionaire but now is a Member of the Budget is one of economic stagnation. The growth Parliament?” I shall endeavour to continue after the forecast produced last year for this year was for growth commercial break in the spirit in which I started, by of 2.5% in 2012. The OBR’s estimate now of growth in asking hon. Members to consider what growth in the 2012 is just 0.8%. The growth forecast for 2013 is also economy means. 0.8%. That is close to stagnation. As a Johnny-come-lately to professional politics and Unemployment is rising, the cost of living is rising, prior to that having been in business for 30 years in and it is particularly worrying that business investment various ways, successfully and, I have to say, unsuccessfully, appears to be collapsing. The OBR forecasts that business it seems to me that growth often means something investment this year will drop 7%, from an estimate of different to politicians, people who work in think-tanks, 7.7% to 0.7%. That is connected with the OBR’s forecast journalists and people who work in public affairs. For for such meagre growth as there is to be, according to its economists it is easy to consider growth as a statistic—0.5%, estimate. A much larger share of this growth—three 0.8% or negative growth, on which Opposition Members times larger—is to come from private consumption and Government Members take different views. rather than from export-led growth. We have a demand For me, growth is a collective decision by individuals, crisis in the economy. I worry that the Chancellor is whether they are business owners, people who want to putting all his eggs in one basket, rather like Japan did start a business, or the management of a large company. in the 1990s, gambling everything on low interest rates In a capitalist society—there is a general consensus that as a way to stimulate the economy. the profit motive is what drives private enterprise—business people must make the decision to start or expand their Richard Fuller (Bedford) (Con): The hon. Gentleman business. Growth in the economy is the collection of talks about a demand crisis, but does he accept that such decisions. It is Government’s role and the role of some of the responsibility for that comes from the this Budget to facilitate that. policies of the previous Government, which so substantially over-leveraged not just the Government, but the entire Tom Blenkinsop: When? economy?

Richard Harrington: Now. Unfortunately that was Gregg McClymont: There is no doubt, and the hon. not the case with the situation we inherited, with a huge Gentleman is right to say, that not everything in the deficit and the economy plummeting. Opposition Members garden was rosy by 2010. That does not take away from should remember what I said—that growth is not a the current Government their responsibility to stimulate statistic. If we are to get growth, it requires a collective the economy. On any metric, growth of 0.8% this year series of decisions by people to expand their businesses and next year is only very limited growth. On current and start other businesses. estimates we will not return to 2007 GPD levels till 2013. That slump will be the longest since the The predecessors of the current Opposition believed 19th century—six years to get back to a previous level in a different type of economy. They believed in a of GDP. That is indeed a slump, and this is a stagnation socialist economy. They believed that Governments, by Budget. nationalising businesses or taking investment decisions themselves, could make a fundamental decision, people would do things because they were told to do so by Mark Garnier: Does that not illustrate the fact that Government and the result would be a growing economy. such an appalling mess was made by the previous Society has taken the decision—and this is the general Government that it resulted in such a long and deep consensus among nearly everyone in the House—that recession? growth will come from private enterprise. If growth comes from private enterprise, we must Gregg McClymont: As the hon. Gentleman knows, accept that that comes from people accepting all the whatever the situation when this Government took aggravation, mortgaging their houses, setting up businesses, office, they are now, by their own estimates, going to employing people and taking very little money out borrow £150 billion more than they estimated, so they during much of the growth period of the business. are adding debt upon debt, with no growth to show What makes them want to do that is the fact that they for it. want to get rich themselves. I am fine with that. If they pay their taxes—I am certainly against tax avoidance Tom Blenkinsop: If it was such a bad period, why are and all the legal and illegal schemes to do that—and if corporates storing £750 billion under the mattress and they employ people who pay their taxes, it is right that not investing? Is that not a demand issue? 1085 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1086 Situation Situation Gregg McClymont: As usual, my hon. Friend hits on We have a crisis of employment—a crisis of youth the apposite point. Corporates do have an enormous unemployment, with 1 million in the UK and one in cash pile, and we have to ask, why are they not investing? four in Scotland now unemployed. What we need are It is because they do not think there is anyone to buy measures to get young people back into work, but how their products; it is as simple as that. long are they meant to wait, to take the argument of Of course, no one is suggesting that this issue is all Government Members? A national insurance holiday about one side, because it is not all about stimulating for small and medium-sized enterprises—that is what demand at the expense of cutting the deficit, but my we need. A bank bonus tax to create 150,000 jobs for and the Opposition’s view is that the Government have young people—that is what we need. A temporary VAT got the balance wrong. Confidence will not be restored cut to stimulate the economy and help out hard-pressed if there is no growth in the economy. motorists—that is what we need. And a VAT cut for home repairs and maintenance to stimulate that important sector of the economy—that is what we need. Richard Harrington: I appreciate the hon. Gentleman giving way, but does he not agree that, actually, it is Then we have the granny tax. Under the guise of hard to say which comes first? He says that confidence simplification the Government have brought in a stealth comes from growth, but I say that growth comes from tax on more than 4 million pensioners. Some 700,000 confidence. I think he has got it the wrong way around. people turning 65 years old will lose more than £300 per year—[Interruption.] Someone shouts, “No one will pay more,” and there is a debate to be had about sharing Gregg McClymont: I thank the hon. Gentleman for burdens. his intervention, which will be the last one I take, given the time constraints. The lessons of history are that, Dr Thérèse Coffey: Will the hon. Gentleman give unless we can make people feel that they have money in way? their pockets to spend and to stimulate growth and the economy, the chances are—the Japanese example is a Gregg McClymont: I am afraid that I have no more perfect illustration of this—that we are unlikely to time to do so. recover to pre-trend levels. There is a debate to be had about sharing burdens At this time of stagnation and austerity, what is the across the generations, but to begin it with a stealth tax Government’s priority? Is it growth, jobs and helping described as a “simplification” is surely not the way to the hard-pressed squeezed middle? No, it is a tax cut for encourage a healthy, long-term debate about that kind millionaires. Some 14,000 millionaires will get a tax cut of distribution. of £40,000 per year. The 300,000 payers of the 50%— [Interruption.] I finish on this point: wrong priorities, wrong values, wrong Government. Madam Deputy Speaker (Dawn Primarolo): Order. Hon. Gentlemen will not shout across the Chamber. 11.55 am The point being made is a matter for debate, and that is George Eustice (Camborne and Redruth) (Con): I what is happening now. They can intervene if the hon. welcome in particular the Budget’s emphasis on business Member for Cumbernauld, Kilsyth and Kirkintilloch and enterprise, because we have to be clear that there East (Gregg McClymont) wants to give way. are no short cuts out of the financial mess left by the previous Government. We need new businesses to set Gregg McClymont: Thank you, Madam Deputy Speaker. up, and existing businesses to expand and export more Hon. Gentlemen on the Conservative Benches are becoming products, in order to create the jobs of the future. rather vexed, and one does not have to wonder why, The hon. Member for Clwyd South (Susan Elan given the message that they are sending out to the Jones) said that there are no jobs for public sector electorate with this tax cut, which will cost more than people to go to, and that those who have been in the £3 billion at a time, as the Government emphasise, of public sector cannot get jobs in the private sector, but austerity. we need those public sector employees to set up their The hon. Member for Watford (Richard Harrington) own businesses, because I see a lot of talent in the suggests that empirical evidence shows that the 50p tax public sector workers whom I meet in Cornwall. Many does not raise any money, but there is no empirical have experience of managing large projects, managing evidence in the document presented by the Government. large teams of people, planning ahead and dealing with There is a series of estimates, based on a view of the public. They have many of the skills that they need behavioural change, itself based on a view of human to set up their own business and to create jobs for other behaviour, which one would have thought would have at people if they only had the confidence to do so. least been challenged by the financial crisis and all that I should also like to discuss the importance of supporting it brought. young people in setting up in business. I remember This Government are taking a gamble that the £3 billion talking about 10 years ago to a businessman who said, that they would have had in the bank—in their coffers—will “There is never a better time to start to run your own be almost cancelled out by millionaires from Monte business than when you are young, when you have just Carlo and Caribbean boltholes rushing back to show left university. You should never put it off and think, their patriotism to this country by paying a slightly ‘Well I will start up my own business later in life’; you lower rate of tax. Those are not my words, but the should get on with it early.” It is therefore particularly words of the Business Secretary in a previous incarnation. important that we encourage enterprise at schools and This tax cut for millionaires is the wrong priority for get schools to engage in the various existing this country at this time. entrepreneurship schemes. 1087 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1088 Situation Situation [George Eustice] is particularly welcome. We must remember, as my hon. Friend the Member for Dover (Charlie Elphicke) pointed The announcement in the Budget to develop the idea out, that fuel tax is currently 10p lower than it would of enterprise loans was particularly welcome, as it builds have been under the Labour party’s plans, which is very on the good work that the Government have already welcome. I am particularly encouraged to see what has started with the enterprise allowances to help small been done to take forward the idea of a fuel price businesses to set up. stabiliser and the pilots that have continued to be rolled out in rural areas with the rural rebate, which is particularly Before the Budget I visited a large manufacturer in important to areas like Cornwall. my constituency, or as large as they come in my constituency, called Teagle Machinery, based just outside Redruth. It Finally, I want to talk a little about the tax thresholds, is a fantastic success story in Cornwall: more than half because the increase in the threshold to £9,200 a year is of everything it produces is exported; the number of its a major boost to areas such as Cornwall where a large employees has more than doubled over the past 10 number of people are on low incomes. It will take more years; it is winning orders in markets from Japan through than 20,000 people in Cornwall out of tax altogether to eastern Europe; and it is even now attempting to and 24 million people across the country will benefit. break into the market in Russia. It is an extraordinary There has been some discussion about the genesis of the success story, almost like Cornwall’s answer to JCB and proposal and which party came up with the idea first. proof that this country can still do traditional, high-quality My hon. Friend the Member for Peterborough manufacturing and engineering, and that we can be (Mr Jackson) touched on that, but I can vouch for the world beaters in that sector. fact that in 2004, when I was working on policy ideas in the Conservative party, it was in fact Lord Saatchi who There are several measures in the Budget that companies strongly pushed the idea of having a £10,000 threshold such as Teagle in my constituency will welcome. There and taking people out of tax altogether. It is a Conservative is the reduction in corporation tax, which my hon. proposal and always has been, and I am delighted that Friend the Member for Wyre Forest (Mark Garnier) our Liberal Democrat colleagues have come around to touched on. It is important that we have a business-friendly our way of thinking. tax system here and encourage businesses that want to invest in Europe to choose the UK, and the reduction to 24% and the further planned reductions to 22% by 2014 12.1 pm will be incredibly welcome. Phil Wilson (Sedgefield) (Lab): This is a landmark The planned national loan guarantee scheme will be Budget, because it has redefined the meaning of a major support for smaller businesses. We all have complacency. The Budget speech, in essence, was nothing many businesses coming to us saying that they have more than a review of the previous week’s press, rather difficulty accessing finance at the moment, and that than a strategy for growth, although we did learn one scheme will bring into the market £20 billion of funding thing: the Conservative party is a one-region party, not that will be affordable for small businesses and give a one-nation party. The Lib Dems—I notice none of lenders the safeguards they need to make the money them is here at the moment—have followed such a available. That, too, is going to be incredibly welcome. crooked path since the general election that I am surprised they can now lie straight in bed. I particularly welcome also the efforts being made to Transport is a very important issue in Sedgefield. In increase export finance and the funding available for it, the south-east corner of the constituency, Durham Tees because Teagle specifically raised that issue with me. It Valley airport is doing its best to continue to serve the gets some support from UK Trade and Investment to Tees valley, even though it has faced difficult times take part in trade fairs, but it would like to do more, and recently. I am pleased that the Minister responsible for this country is quite successful with exports at the aviation has agreed to meet MPs from the area to moment. In the past year, our exports to India have discuss the airport’s future, and I will be pleased to hear risen by 30% and to China by 15%, and our overall the Government’s plans for expanding runway capacity exports during the past couple of years have risen by in the south-east, which would greatly help regional 30%. We have to build on that, because it is through airports. exports, manufacturing and creating wealth that we will get our economy back on its feet. The Hitachi train building facility is due to start construction in my constituency at the back end of this The Secretary of State for Transport touched on year or the beginning of next year, and I hope that one many transport issues, and the Government’s decision day in years to come it will compare with Nissan for the to maintain investment in infrastructure is especially number of private sector jobs it creates. I would like to welcome. In my area, in particular, there is a new link record once again my thanks to the people of Newton between Camborne and Redruth, which will unlock the Aycliffe, Sedgefield and the north-east who campaigned potential of derelict mining land and create 6,000 new to ensure that this Government went ahead with the jobs over the next 20 years, half of them in the next five Labour Government’s plans for investing in new rolling years. Projects like that will also help to get our businesses stock to guarantee the Hitachi investment. back on their feet and moving forward again. Beside the concerns about the future of the airport, A speech about Cornwall would be incomplete if it the other great concern is the state of public transport did not touch on fuel tax. I have argued consistently, in County Durham, especially local bus services. The and continue to do so, that fuel tax can be a regressive lack of a credible bus service in the area, which has been tax and that it hits peripheral areas particularly hard restricted because of the cuts in central Government because their products have to be transported much grant, is counter-productive. The local Jobcentre Plus further. What the Government have done so far on that has informed me that it knows that poor transport in 1089 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1090 Situation Situation the area is making it difficult for people to get to work, Phil Wilson: It will end up increasing the division and it is such a problem that it is thinking about buying between the north and the south in this country. If the bicycles so that people can make the journey to work. Government go forward with this proposal, I believe At present, nine jobseekers in Sedgefield are chasing that it will prove the point that the Conservative party is every vacancy, and there are fewer public sector workers no longer a one-nation party, but a one-region party. in Sedgefield than in the Prime Minister’s constituency. I believe that the proposal would mean that poorer Although the north-east has the highest proportion regions would be starved of talent. Social mobility of public sector workers of any region in England—just would be restricted because of too much variance in under 26%—private sector jobs increased in the north-east pay rates, especially between the north and the south. between 2003 and 2008 by 9.2%, while public sector There are many myths about local pay determination. employment grew by 4.1%. In other words, private For example, last year’s autumn statement said: sector employment in the region was accelerating faster “While private sector pay is set in accordance with local labour than public sector employment was before the international markets, public sector pay is usually set on a national basis.” financial crisis. Therefore, public sector jobs were not The fact is that most large, multi-site private sector crowding out private sector jobs. companies have national pay structures, among them As in other parts of the country, in the north-east retailers, banks and telecom companies. The Government 40% of households with dual incomes include someone give the impression that private sector pay is set by who works in the public sector. The loss of significant myriad individual-level decisions based on specific local public sector jobs and a public sector pay freeze can labour market variations. In reality, large, multi-site, only exacerbate the loss of spending power in the region private sector companies operate with up to four or five if those factors are joined by the localisation of public bands or zones within a national framework. sector pay. I believe that the move in the direction of The Government have put across the idea that there localised public sector pay is driven by ideology, rather is significant regional pay variation outside the south-east than economic facts. It belies the fact that we can have and London, but there is much more similarity than national pay bargaining and still have flexibility within difference. In practice, most retailers and banks that pay structures without hitting regions such as the north-east. operate zonal-type pay systems have national pay structures Concern about the localisation of public sector pay is outside the south-east and London without having to not restricted to people in the public sector and trade set different rates for sites in Durham, Doncaster or unionists. The chairman of the Leighton Group, a Daventry. technology company in the north-east, Mr Paul Callaghan, There is a myth that local labour market and cost-of- has warned: living factors have displaced skill-level qualifications in “I’m very concerned about the negative impact on the North setting pay in the private sector. Even in small private East economy of regional pay rates. Clearly we do not have sector organisations, skills and qualifications will be regional pricing on gas, electricity, petrol and most other goods, key factors, and there is plenty of evidence, according so freezing of regional public sector pay must reduce demand for local goods and services, further dampening an already depressed to Incomes Data Services, that international engineering economy. I have seen no credible research to show that this move companies with regional bases are using international will have anything but a negative impact on both the region’s salary data on skills and qualifications rather than local private and public sector.” data for recruitment purposes. Human resources professionals in the private sector who work for companies with multiple sites around the country would say that Roberta Blackman-Woods (City of Durham) (Lab): national pay structures are important because they Does my hon. Friend agree that taking £78 million out provide simplicity, avoid the costs of duplication, allow of the economy in a time of recession, which is what the better payroll control, create consistency, and avoid TUC estimates regional pay would mean for the north poaching and leapfrogging. east, is simply economic madness? Another myth states that geography is a key factor for determining pay, yet in fact the industrial sector is Phil Wilson: As I have said, I think that it is ideologically the key determinant. In the car industry, with different driven. The facts of the matter have been thought companies working in different locations such as through, so my hon. Friend is quite right. Sunderland, east London, the west midlands, Merseyside, The previous Government turned their back on the Oxford, Derbyshire, north Wales and Swindon, there is wholesale devolution of pay determination at local level a great deal of similarity in pay levels. These manufacturers in 2003. A Treasury guidance note published in the benchmark pay against each other and other successful autumn of 2003 stated: manufacturing companies. Geographical pay differentiation “At the extreme, local pay in theory could mean devolved within the UK is not a major factor for them, although pay...to local bodies. In practice, extremely devolved arrangements global pay differentials can be a factor. Localisation of are not desirable. There are risks of workers being treated differently public sector pay will also open the way to greater cost for no good reason. There could be dangers of leapfrogging and in the public sector, as local management will need to parts of the public sector competing against each other for the expand to handle negotiations and to collate and analyse best staff.” local labour market data. There could be more challenges over equal pay. Gavin Shuker: Does my hon. Friend also agree that Complex localised pay systems are rare because of one of the risks of this approach is that it will have a the resources involved. Official earnings data show that further deflationary effect in areas where money being there is very little difference in earnings outside London spent in the local economy is vital to ensuring proper and the south-east. There are two labour markets in the growth? UK: the south-east and London, and the rest of the 1091 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1092 Situation Situation [Phil Wilson] I should like to spend a couple of minutes on the deficit crisis, inter-generational debt and competitiveness. country. Even zonal pay systems, which may cross regional On the deficit crisis, it is excellent that the Government boundaries, usually equate to the boundaries that I have are looking for fiscal neutrality, but that is different mentioned and extend no further. from considering the overall level of public expenditure I do not believe that public sector jobs are squeezing and public debt. Public expenditure is still going up, in out the private sector. Unemployment is highest in the cash terms and in real terms, and tax receipts are going north-east, with nine jobseekers chasing every vacancy. up—from 35.8% of GDP in 2010-11 to 36.4% of GDP Thousands of jobs have been lost in the public sector, so in 2014-15. We continue to be a high-public-spending, why is not the private sector growing in the way anticipated? high-tax economy. I hope that the Government and the It is because there is a lack of growth and demand in the Chancellor will look at ways in which the overall balance local economy. The Government’s plans for excessive can be brought down so that resources can be moved localisation of public sector pay are misguided and from the Government sector to the more productive ideologically driven, and they should not be implemented. private sector. May I also urge caution on Ministers in the use of quantitative easing? Quantitative easing is a policy to 12.11 pm overcome a credit-driven recession. It should not be a Richard Fuller (Bedford) (Con): It is a great pleasure policy to support excessive public expenditure or the to follow the hon. Member for Sedgefield (Phil Wilson), long-term erosion of the value of savings. It is pertinent who already outshines his predecessor in his integrity to look at the “Debt and reserves management report and sincerity, if not in his fame. 2011-12”, which shows that the Bank of England’s asset purchase facility holds more than 18% of Government I apologise, Madam Deputy Speaker, to you and the gilts. That holding has, at some point, to be unwound, House for the fact that unfortunately, owing to a which will have inflationary consequences. constituency commitment, I will not be able to be here for the closing speeches. That is a great shame, because we have had a very stimulating debate across both sides Mike Gapes: Can I take it that the hon. Gentleman is of the House, with the opening speeches by my right calling for an increase in interest rates? hon. Friend the Secretary of State for Transport and by the shadow Minister, the hon. Member for Barrow and Richard Fuller: No, I am not calling for an increase in Furness (John Woodcock).The hon. Gentleman is standing interest rates. I am calling for the Government to be in for the shadow Secretary of State, the hon. Member clear, which I think they are, about the use of the for Garston and Halewood (Maria Eagle), who became quantitative easing policy. The results of that policy sick at a TUC conference. I think that this is the first will, in a few years, have to be unwound. The level of time that a Labour Front Bencher has issued a health their own gilts that the Government hold will have to be warning on their union paymasters. Let us hope that reduced. When that happens, interest rates will go up. those health warnings will continue. We need to caution the Government to be aware, in I will be going back to the great towns of Bedford setting the level of public expenditure, of what that level and Kempston, whose people know that these are tough will mean. People will need an increase in pay due to the times but wanted to have a Budget that rewarded work, increase in the Government’s cost of borrowing. Foreign and the Chancellor of the Exchequer has delivered holdings have also increased, and are now at 31%. We precisely that. The single most valuable part of this now have the highest spread between five-year and Budget for the people of my constituency is the raising 30-year gilts in terms of the risk premium. All those of the personal allowance by over £1,000 so that the points should caution us about our deficit. first £9,000 of a person’s income will not be liable for Those facts come on the back of a significant level of tax. That is a fantastic encouragement for people who debt in our economy. Opposition Members fail to realise are finding that their budgets are very tight. that we are the most indebted major economy in the Members on both sides of the House have expressed world. That is the legacy of the previous Government concerns about fuel duty, and I echo those concerns, and the previous Chancellor. Those who were here because they duty does have a significant impact on yesterday would have seen the shadow Chancellor give personal budgets and on business. I would have liked an uncharacteristically short speech. He sat down and the Government to do more, but I understand that they people were surprised, because there was more that he were unable to do so. I draw my hon. Friend the could have said. However, I think that his speech could Economic Secretary’s attention to the campaign by my have been shorter. It could have gone thus: “I am sorry. local newspaper, the Times and Citizen, which echoes I am really sorry. I am sorry for my hubris in thinking what my hon. Friend the Member for Wyre Forest that I could end boom and bust. I know now that that (Mark Garnier) said about how petrol prices can vary was achievable only by leveraging up the entire British significantly between different regions. The Times and economy and dumping the debts on our children and Citizen found that in Bedford and Kempston, our fuel grandchildren.” That is the speech that the shadow prices were 4p to 5p per litre higher than in other areas. Chancellor could have given yesterday. He could then If we cannot do anything about fuel duty, will my hon. have sat down, because that sums up what he left us to Friend consider ways in which the Government can sort out. ensure that we do not face monopolistic positions on The shadow Chancellor did not give that speech fuel duty in very localised situations? The Times and yesterday, so perhaps I can give him some advice. The Citizen’s campaign has shown that the people of Bedford next time he goes to a school, instead of looking for a and Kempston care very much about that, and it can, in photo opportunity of him playing football, he could go itself, have as much impact as a cut in fuel duty overall. up to one of the schoolchildren and say, “Hey, I’m sorry. 1093 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1094 Situation Situation I’m sorry that I shackled your potential with the debts 12.20 pm that my monumentally short-sighted economic strategy created.” That is the truth of what he left behind. Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op): Investment in transport is absolutely essential for the future of our economy, which means that we need Gregg McClymont: Does the hon. Gentleman accept support for transport now and for future projects. I that that is rather a caricature of what happened during regret that no support was announced in the Budget the global financial crisis? It was a global crisis. Surely statement for the maintenance of bus services, which the financial sector, and the banks in particular, have to are often important in getting people to work. Rising take some responsibility for the debt that we face. bus fares are a great burden, and in many cases essential bus services are simply being stopped. Nor was there Richard Fuller: As always, I have a lot in common any short-term relief from ever-rising train fares. I with the hon. Gentleman, but that is not the point. The regret the absence of any measures in those areas, which point is that the damage was already being done in our are so vital to people today. national economy. It was the strategy of the previous Government to not be content with leveraging up their There were some encouraging statements about future own debt; they required the leveraging up of household transport investment. In the short time that I have debt and corporate debt, as well as financial sector debt available, I want to ask some questions about the meaning and Government debt. Debt was the answer in the behind some of those headline statements. They are period when they came up with the statement that they encouraging, but a lot lies behind them. had ended boom and bust. That debt has to be paid for. I first wish to refer to rail. I very much welcome the It is two years since the Labour Government left office increased commitment to rail electrification. I listened and there is not enough time to pay for the 10 years of carefully to what was said about Wales, and we would the growth of debt in our economy. It will take a like to know exactly when rail electrification will come significant amount of time for us to de-leverage the to Swansea, which was not very clear. I also welcome economy in every sector. This Budget is part of that the commitment to more electrification across the north process. of England, and particularly the statement that part of the northern hub had now been agreed to. Phil Wilson: If that is true, why did the Tory Opposition Will the Government give a firm commitment to go along with our spending plans right up until 2008? investing half a billion pounds in the northern hub, which is a major scheme to improve rail services right Richard Fuller: That is a good question, which the across the north, including places such as Liverpool, hon. Gentleman should address to the Chancellor. I was Manchester, Leeds, Sheffield and Newcastle. That not in Parliament at that time and I am not sure that £0.5 billion investment would produce a £4 billion that is what I would have said. boost to northern economies. We are still being told Much has been said about the granny tax. The one that the value-for-money studies are continuing, to thing that grandparents want is what is best for their assess whether the whole scheme can be made available. grandchildren. They understand that in tough times—this I remind the Minister that the Government are quite is because many of them have been through tough rightly investing £15 billion in Crossrail and £5 billion times—they have to give something to ensure that we in Thameslink, yet the proposed £0.5 billion for rail will be stronger in future. That is what this Budget will right across the north is subject to scrutiny that has not deliver, and it is part of getting our economy balanced yet come to a conclusion. I should like to hear a firm and back on the right track. commitment to the northern hub today. Major questions have been raised about the disparities Gavin Shuker: The hon. Gentleman mentioned personal in transport investment in different parts of the country. debt, about which I share a great deal of concern. Is he The passenger transport executive found figures showing aware that under the Government’s plans personal debt that three times as much per head was invested in will rise, not fall, over the coming period? transport in London and the south-east as in the rest of the country. The Institute for Public Policy Research Richard Fuller: I think the hon. Gentleman is referring North, examining the implications for transport investment to unsecured personal debt rather than overall levels of of the autumn statement, in which welcome new investment personal and household debt. There is much for the was announced, found that £2,700 per head was being Government to do, such as examining excessive rises in invested in London and only £5 a head in the north-east. credit card terms and penalties for people who have to I accept that our capital city needs continuing major take on unsecured debt, and I believe they intend to do investment in transport, but given the needs of the it. country as a whole it cannot be right to have such wide disparities. We need to do more about our deficit, and I suggest again that one thing we can do for the sake of general Will the Economic Secretary consider publishing the fairness is consider creating a future fund that takes the impact of spending decisions on transport across pension obligations of our public sector workers and the country and in the different regions? All parts of the puts them into a fully funded scheme. It would take country need investment, but it is simply not right for 20 to 25 years to accomplish that, but Australia, New the interests of the country overall that we continue to Zealand, France and Norway are doing it, and it would have an overheated south-east, while other parts are show that this generation in Parliament understands its without essential transport investment. responsibility to the next generation of Britons. If we The Budget contained announcements on road added that to our fiscal responsibility, we would be investment. More investment in roads—appropriate doing the next generation a great favour. roads—is required. We are told that there will be a 1095 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1096 Situation Situation [Mrs Louise Ellman] know exactly what those headline statements mean. Investment in transport infrastructure is essential for feasibility study on bringing private investment into our the economic future of the country, but that means the road system, but we need to know a great deal more whole country. I hope the Government are committed about what that actually means. We are told that there to doing just that. will not be charges for existing roads, but would the widening of existing roads lead to charges? Is the policy not road charging through the back door, without the 12.28 pm safeguards that were considered in the past when road Martin Vickers (Cleethorpes) (Con): In my speech, I charging as a national policy was under national discussion? should like to give overall support to the general thrust In previous discussions on road charging, it was and direction of my right hon. Friend the Chancellor’s always assumed—and indeed stated—that if road charges Budget. In extremely difficult circumstances, he has were levied, there would be a compensatory reduction produced a package that I believe will stand the test of in road taxation paid by the motorists, but it appears time. Budgets too often unravel in a matter of days. that under the Government’s new plans, that reduction Before I continue, I must apologise to the House and in taxation will go to the private sector investors as an the Minister for not being able to be here for the incentive to them, and will not accrue to the motorist. winding-up speeches, but I have constituency appointments This is a major issue. It has been suggested that bringing that I must honour. more private sector investment into roads by leasing or This is the third day of the debate, and many of the selling our road system would be similar to privatisation points that are made will have been made many times of the water utilities—that is what the Prime Minister over, so I should like in the main to look at the proposals stated. If it is, it could well lead to a great hike in from my constituency perspective. charges. However, the leasing or selling could be more akin to the Railtrack situation, when maintenance in Madam Deputy Speaker (Dawn Primarolo): Order. A infrastructure was severely reduced, with tragic lot of Members have apologised for not being present consequences. to hear the Minister. That is the convention of the House. I sincerely hope that the Minister will be here, Gavin Shuker: My hon. Friend mentions parallels however, because it does not look like any other Members with the water industry.Is she aware—many hon. Members will. may not be—that currently one third of household bills go, in perpetuity, on debt repayments for investment in Martin Vickers: The local economy of my constituency the water sector? is generally a low-paid one, with an average annual salary hovering around the £20,000 mark, so it would Mrs Ellman: I thank my hon. Friend for his be wrong to say that I have been overwhelmed with comment—he makes an very important point and demands for a reduction in the 50p tax rate. To be underlines the importance of looking at the policy in perfectly honest, no one has canvassed me on that, and great detail. We are told that there will be a feasibility that includes two millionaires—but that is an aside. We study, but we do not know exactly when that will take recognise the desirability of expanding an entrepreneurial place, what it will include, or what kind of consultation economy, however, and on balance I think it is the right there will be. Asking the private sector to own, run and decision. lease our road system is a major step, and detailed scrutiny of exactly what it means for the future as well Most of my constituents are far more concerned as the present is essential. about the cost of living—most notably petrol and energy costs—so as an officer of the all-party group on fair I am pleased that the Government have made statements fuel for motorists and hauliers, I am disappointed that on their renewed commitment to aviation. If we are to our recent efforts to persuade the Chancellor to postpone succeed as a country, it is vital that we maintain a the next scheduled increase in petrol duty have not successful hub airport. We cannot continue to lose out borne fruit. I acknowledge that much has been done on to our European rivals. It is essential that we build on this since the election, but household budgets are being the hub and do not allow it to decay. Investment in our severely squeezed by the cost of motoring. Lincolnshire regional airports is also important. They are important is a predominantly rural county with limited public to local areas, but many of them are suffering economically transport, so people have little choice but to use their because of the general economic situation. If the own cars. The FairFuelUK campaign has done much Government are interested in aviation for the future, work to highlight this, and the recent report it commissioned they must look at our regional airports as well as from the Centre for Economics and Business Research maintaining that essential hub airport. provided considerable and compelling evidence of the Hon. Members have been told in the past that there benefits of lowering the burden not just to individuals would be a Government aviation strategy that we could but to the economy. Our campaign will continue. debate and consider. That is mentioned in the statement, Before raising another couple of concerns, I want to but the situation is exceedingly vague. I ask the Minister welcome the increase in the personal allowance to £9,205. please to tell us this: when will the Government publish This is a major step towards achieving the £10,000 their sustainable framework on aviation so that those target and has been warmly welcomed in my constituency, very important issues can be considered and debated? which, as I said, is a low-wage area. I also welcome the In the short time available to me today, I have raised a moves to lighten the burden regarding child benefit. It is number of important issues that need proper consideration. a step in the right direction. It is not entirely what I had I hope the Select Committee on Transport will look at hoped for, but, again, I recognise the pressures on the those matters in detail. The whole House will want to Chancellor. It was interesting to note, in the debate a 1097 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1098 Situation Situation day or two ago, the suggestion made by my hon. Friend In Preston, unemployment has risen month by month. the Member for Gainsborough (Mr Leigh) about a In February 2012, 3,733 people were claiming jobseeker’s possible way forward. allowance, which is double the figure under the Labour It is notable that when the reporter from the local Government. We have seen an increase of 439 from Grimsby Telegraph contacted me just after the Budget February 2011—a 13% increase in a year—and an speech, their first question was not about the 50p tax increase of 169 since January 2012, which represents a rate or the impact on pensioners. Instead, it was, “What’s 5% increase in just one month. The most striking figure in it for regeneration?” Northern Lincolnshire urgently is the increase in long-term youth unemployment, and I needs improvements to its infrastructure and public fear that that will be the hallmark of this Government. realm, and the Government have recognised the area’s Long-term youth unemployment in Preston has tripled bright future with an additional allocation of £6 million in the last year. to the pan-Humber and Greater Lincolnshire enterprise This problem is not unique to my constituency; it is partnerships. endemic across the country. Young people and families are the victims of the Government’s reckless austerity I particularly welcome the forthcoming publication measures, which I fear will lead to a lost generation of of the national planning policy framework speeding up young people. I ask the Minister and other Government the procedure for major applications, and note that the Members how it can be fair that 14,000 people earning Red Book makes specific mention of the Able marine £1 million or more are getting a tax cut of over £40,000 energy park in my constituency, which has been plagued a year when a family with children earning just £20,000 by delay after delay from wildlife directives and a less- will lose £253 a year from this April. That is on top of than-positive approach from some Government agencies. the VAT rise, which is costing families an average of The specific commitment in the Red Book to change £450 per year. The Government’s priorities are clear: the culture of statutory bodies is therefore much needed. tax cuts for the few while others wallow in the mess I also welcome the commitment to changing use class created by the Government. To repeat a comment picked orders and the associated permitted development rights up on by the hon. Member for Cleethorpes (Martin that will make it easier to change the use of buildings. Vickers): these are the same old Tories. Enterprise loans are also a welcome development, This Budget is a tax raid on pensioners. In Preston, particularly those aimed at young people. I was recently there are 5,894 people aged between 60 and 64. A large involved in the small business all-party group’s inquiry proportion of them will be the victims of the Chancellor’s into entrepreneurship. It was notable that every witness decision to freeze personal allowance for pensioners, pointed out the need to encourage the entrepreneurship with those turning 65 next year set to lose up to £322. in our young people that the economy so urgently There are currently 16,622 pensioners in Preston, and a needs. It is also notable that the Federation of Small considerable percentage of them will have to pay this Businesses is broadly supportive of the Budget proposals. granny tax, along with 480,000 other income tax paying As we all know, to a great extent it is small businesses pensioners in the north-west of England. The economy that will be the engine of growth. in the north-west is already suffering. I want to comment briefly on the Opposition’s response The Budget also does nothing to help manufacturing. to the Budget. Despite their playground attitude of The Prime Minister and the Chancellor have made it pointing and calling us “the same old Tories”, it is clear that they envisage the rebalancing of our economy notable that it was those same old Tories who have through manufacturing. For Preston and Lancashire, guided the country through most of its difficult periods. manufacturing is not only our heritage but our future. We also provided the opportunities for working-class As a Lancashire MP, I am proud of the work that BAE people to buy their council homes. We have provided Systems and the BAE work force have done over the the economic conditions for some of the most notable generations. As we know, however, BAE has lost the periods of growth throughout our history. The Labour contest for preferred partner with the Indian Government party’s renewed class warfare just does not wash, especially owing to the lack of activism on the part of this with people like me who come from a working-class Government. In January, it was announced that French background. The fact is that all people, whatever their defence firm Dassault would be the Indian Government’s station in life, benefit from a growing economy, and I preferred partner for the building of their fighter jets, believe that this Budget will do a great deal to bring that instead of BAE Systems with its Typhoon. In the White about. Paper “National Security Through Technology”, the Government have made it clear that they will no longer give British companies preferred status. If the British 12.35 pm Government will not give that preferred status, why Mark Hendrick (Preston) (Lab/Co-op): The Budget should the Indian Government give it to companies was an opportunity to give hope to those who have seen such as BAE? It beggars belief that the Government do their household budgets squeezed and their livelihoods not support British industry, but the Budget illustrates destroyed by the Government’s economic policies. On that fact. Wednesday, however, we saw the Government’s priorities. The Budget shows no plans to support the nuclear They were to help the few, not the many; to help the industry. I hope the Government will look again at millionaires, not the millions. The Government chose providing support to ensure that the Westinghouse AP1000 ideology, not fairness. The impact of the Tory-led nuclear reactor is secured at Wylfa in Anglesey. This Government’s austerity measures is plain to see: with project would not only generate jobs in Anglesey, but rising prices, squeezed living standards and soaring create a Westinghouse service-based business with more unemployment, this is a return to the Thatcher years of than 200 jobs located in central Lancashire. This should the 1980s. have been the Budget for jobs and growth. Instead, it 1099 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1100 Situation Situation [Mark Hendrick] the fiscal situation was dire. Action has been taken over the past two years to deal with our debts, but we also was a battle of pure politics between the coalition need to ensure that we can earn our way in the world. partners, with the winners being the millionaires and Understanding the international context might be the victims the ordinary hard-working people. If this helped by a few facts and figures, showing that we Government were to have any credibility on jobs and cannot any longer rely simply on trading with the old growth, they should have used the Budget to support world to earn our living. Over the latest period, demand companies such as BAE Systems and Westinghouse at for UK exports by the European Union has been falling. the Springfields plant near my constituency. Compared with January last year, the value of our trade The Budget included announcements on transport. with the EU is down £300 million, while exports to Preston is a major hub for Lancashire, connecting France fell by 14% and by 3.5% to Ireland. Those falls Lancashire to Scotland, London, Liverpool and were more than offset by increases in exports to the rest Manchester. I welcome the fact that the Government of the world, however. Exports to the rest of the world are looking to add to the trans-Pennine rail route by are up 16% since January last year. Trade with China is upgrading and electrifying the Manchester to Preston up 30%, and trade to India is up 15%. There have also line. Why, however, are the HS2 plans so timid? The been rises in respect of economies with which we do not Transport Secretary and her team should not be so have much of a history of trade; our trade with South timid in pushing forward HS2, which would provide Korea, for instance, is up 145%. Our trade with our greater capacity and reduce journey times between major Commonwealth partner, South Africa, is up 57%, too. cities. Instead of legislating for the first phase of the It is clear that our international trade patterns are new high-speed line from London to Birmingham, taking changing rapidly, and we can no longer simply rely on forward HS2 as one project, beginning construction in Europe and north America to pull us through. the north as well as the south would have been the answer to solving the nation’s rail problems—instead of Mr Ellwood: My hon. Friend is making a powerful just looking after the south. speech. Will he join me in congratulating both UK Labour Members remember the famous phrase, “We’re Trade and Investment on its work in promoting British all in this together.” With youth unemployment at record industry and the Foreign Office on expanding our embassy highs and pensioners having had their money snatched empire, which had shrunk under the last Government? by the Chancellor, there is nothing to excuse the callous and scandalous closure of the Remploy factory in Preston Matthew Hancock: I compliment UKTI on the and others across the country. Where were the measures turnaround it is undergoing under Lord Green, the in this Budget to help the disabled? The systematic exceptional new trade Minister, who has vast experience attacks on disabled people—whether it be through the and extensive contacts across the world. I commend the removal of benefits or the closure of the Remploy work he is doing both in the Department for Business, factories—show that this Government have no shame Innovation and Skills and with the Foreign Office, about victimising the most vulnerable in our society. which is putting resources into the effort to increase our This Budget provided a chance for a stimulus to jobs trade with the rest of the world, which has languished and growth in our country, and a chance to show the for so long. British people that the Government were on the side of I shall focus now on certain measures that I believe ordinary hard-working families. Yet again, the country should be taken. Some of them might be controversial has been let down. This Budget will be celebrated by the in the short term, but in the long term they will all prove few, but it will hurt the many. to be beneficial and will change views. We must better inform people about the taxes they pay and the effects 12.42 pm of those taxes. We also need a simpler and more attractive tax regime, to ensure that people want to create jobs in Matthew Hancock (West Suffolk) (Con): It is a great our country and international companies want to expand pleasure to serve under your enlightened chairmanship here. of this debate, Mr Deputy Speaker. We also need an active industrial policy. That is The debate has focused much on the immediate considered a controversial proposal by some of my challenges and some specific measures, but I want to party colleagues, but my argument is that the Government focus on the big picture. This Budget has seen a tax cut already put their imprint on the different sectors of the for 24 million working people and a wide range of economy. Our financial services regulations are different measures to help Britain earn its way in the world. After from our pharmaceutical regulations, for instance. Also, all, this Budget was part of a series of Budgets to tackle Government decisions on where to put the roads that the challenge of how to turn this country around after Opposition Members are happy to welcome has an years of economic mismanagement. Some of that requires impact on the rates of development in different parts of difficult and controversial decisions to be taken, but the our country, and the development of High Speed 2 will, fruits of these labours are not in the next day’s headlines, we hope, reduce the north-south divide. The Government but in preparing our country for the world we live in. have a sector-by-sector stamp, therefore, so we should My generation does not have the certainties of an use the power of Government where it can be a positive economic world in which our main competitors were in force, rather than simply say, “Government must get the west—indeed, in the north-west of the globe and out of the way.” centred around the north Atlantic. We must compete against the growing tigers of the east and the growing Mark Hendrick: The last Labour Government produced and rapidly developing economies of the south, yet our a defence industrial strategy, drafted by Lord Drayson, economy was left unprepared for that. We all know that which included a development strategy for the industry. 1101 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1102 Situation Situation The current “National Security through Technology” credits; the moves on transport infrastructure, which paper says British companies should not necessarily be has been talked about many times, where the start date given priority in defence procurement, however. What for the work on the A11 has been announced and does the hon. Gentleman think about that? brought forward, and there is to be more road infrastructure, paid for both by the taxpayer and through innovative Matthew Hancock: Lord Drayson was an unusually other means; and more for university research facilities. good Labour Minister—I would favourably compare Let us contrast all that with what was called a him with almost all the others. The defence strategy “backwater”—the previous Government’s business does, indeed, recognise the need to take into account Department. It all shows that the results of this Budget the interests of our defence industries. That is an important will be growth in the future, business confidence and a part of the strategy, but not necessarily always the great deal of support in the months and years to come. decisive factor. Returning to the issue of tax, the Government should 12.52 pm give a receipt to taxpayers. My hon. Friend the Member for Ipswich (Ben Gummer)—another great Suffolk man— Gavin Shuker (Luton South) (Lab/Co-op): I am extremely has pioneered that approach. We as individuals would grateful to you for calling me to speak on this auspicious not spend much money without asking for a receipt in day, a Friday sitting, to discuss the Budget, Mr Deputy return. For most people, their tax bill is the biggest item Speaker. I am also grateful to follow the right hon. of expenditure, so such a receipt would be very important. Gentleman—[Interruption.] Sorry, the hon. Member It would also educate the public on the impact of their for West Suffolk (Matthew Hancock)— taxes. We also need to know the impact of our taxes for The Lord Commissioner of Her Majesty’s Treasury policy making. It is extraordinary that the Labour party (James Duddridge): It is only a matter of time. ignores the behavioural impact of high taxes. It is hardly surprising that it managed to mess up the public Gavin Shuker: It is only a matter of time, as the Whip finances so comprehensively if it denies, as the shadow says, so there is a top tip. Chancellor does, the impact of high taxes on incentives The reason I am pleased to follow the hon. Member and the amount of future tax money the Exchequer for West Suffolk is because he promised to talk about receives. some of the long-term reforms required in the economy. Secondly, we need a simple and attractive tax system, If we are to talk about the Budget, we need to talk especially on corporation tax. All taxes are, eventually, about not only the long term, but the capacity in the paid by individuals, but it is companies that make so economy right now, and that is where I will briefly focus many decisions about where to locate jobs. So although my remarks. a high corporation tax still falls on individuals, it puts Labour Members have examined the Budget in detail companies off expanding or coming to Britain. By and we see a wasted opportunity. We required a Budget having an attractive corporation tax rate, we can attract for jobs and for growth in the short term that would companies to this country. Ultimately, the corporation lead to our prosperity in the long term. Instead, we got tax would still be paid by UK residents, whether it was a Budget that has fought over the spoils. Two years in to paid indirectly involving the companies or in any other this Tory-led Government, we can see the effect that the way the tax is raised. coalition Government are having on our economic policy. Various Ministers and, indeed, Back Benchers, are fighting Owen Smith: If the corporation tax rate has been so over, and leaking in the press, the measures in the effective, will the hon. Gentleman explain why, according Budget. They are fighting not over the scale of the fiscal to the OBR, the volume of business investment in challenge we face, but over what measures could be Britain is set to decrease by 0.7% this year and is down assigned to each individual party. It is almost as though, 7% over the past year? having slashed and burned, they are fighting over who wants to win the spoils for having scorched the earth. Matthew Hancock: I shall give a direct answer to that. The OBR has said: When GlaxoSmithKline announced 1,000 jobs and half “We have made no…material adjustments to the economy a billion pounds of investment the day after the Budget, forecast as a result Budget 2012 policy announcements.” it cited the lower corporation tax rates as a reason for The independent OBR accepts that growth will not be doing so. changed by this Budget. We all remember last year’s so-called “Budget for growth”, but we are still yet to see Owen Smith rose— a strategy for getting growth in the economy, as the numbers clearly show: over this coming period, borrowing Matthew Hancock: I cannot give way, as I have only a is to be more than £150 billion more than the Government minute left. This denial of the impact of the 45p rate is announced just a year ago; the deficit reduction plan surprising, given that the Labour party is not pledged to has gone from four years to seven; and the Government implement the old rate again. are trying conveniently to lay by the wayside promises The third point I shall make is the importance of an that unemployment numbers would decrease in each industrial policy.Whether we like it or not, the Government and every year of this Parliament. What about the lie have a stamp in this area, so I am very supportive of the that the private sector will pick up where the public following: the announcement on help for our creative sector is being slashed away? We are being given a full industries, which was warmly welcomed, as Britain’s body of evidence to prove that that is untrue. It is clear creative industries are the biggest in the world; the that in both policy and ideology the Government are enterprise zones; the research and development tax struggling to get growth going because they are ignoring 1103 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1104 Situation Situation [Gavin Shuker] business. That means that when the growth comes back, it is much harder to manufacture to the previous level. the lessons of history, particularly the lesson that when That is the legacy that the Government will leave us to the public sector is cut back too far and too fast, fiscal pick up the pieces of—an economy with much less policy has a deflationary effect on the economy. There capacity to manufacture and grow to meet the long-term is a real problem, but unfortunately we have been trapped challenges we face. For all the talk of clearing up or in a paradigm by this coalition Administration which picking up the pieces from the global financial crisis they cannot get out of. and the reforms that are required, we must remember that if our economy does not survive this period, we What are we seeing? A number of tiny interventions, will not have the foundations for growth in the future. programmes and schemes. Let me go through some of the most eye-catching ones. I was on the Public Bill Committee that considered the legislation introducing 12.59 pm the national insurance holiday regime, but only 3.3% of Nigel Mills (Amber Valley) (Con): It is a pleasure to the businesses that the Government said would be helped follow the hon. Member for Luton South (Gavin Shuker); have been helped under that scheme, so it clearly is not we have heard each other speak many times over the working. We have a much better plan to recycle that past few weeks. money to make sure there is a proper cut in national insurance across the country. Credit easing is yet to help When I was asked what I wanted to see in the Budget, a single business. The business growth fund has six my general response was “Not a lot.” The key thing is to regional offices, with 50 jobs having been created, but keep a steady course and not scare the horses with a there have been just six investments in businesses to get sharp change of direction, and that, as we can see from business moving. The export enterprise finance guarantee the Red Book, is the Chancellor’s main strategy. In the has helped just six exporters since it was introduced. current financial year, the deficit is still about £126 billion, so there is no real scope for the Chancellor to take In the absence of a clear ideology to get growth major expensive action. Looking forward to next year, growing in our economy what we see is hundreds of tiny we still see a deficit of about £90 billion, with public measures, none of which is actually giving confidence spending of £683 billion, which is nearly £2 billion a to business to invest. Roosevelt talked about the alphabet day. The most significant Budget measure for the coming laws when he came to power and about the scale of the financial year is the corporation tax cut, which is highly challenge that he faced in the States in the 1930s. What welcome. It is worth just under £400 million, which is we have from this Government is alphabet soup: a series about four hours-worth of public spending. There has of initiatives, all with long and good-sounding titles, not been scope, and there is no scope, for major changes but no actual significant movement in the economy to in that situation. get growth going. What we are left with is just words, and now they take money out of the pockets of those What most investors want from the British tax regime who are most likely to spend and instead choose to put is stability and predictability. That is the strategy the it in the pockets of millionaires and of people who are Government set out at the start of this Parliament, and already very good at avoiding paying tax in the first I am glad they have stuck to it, and that when we hit the place—people who are likely to save it, spend it abroad start of the new financial year in a couple of weeks’ or spend it in areas that are not going to stimulate the time, there will be no major changes for everyone to economy. Even those people are calling for action in the understand over the next fortnight. Most of what will economy to get growth growing and not necessarily to apply was well signalled and we all knew about it reward themselves when growth is not there currently. months ago. There has been detailed consultation on many of the major measures; others are to do with Let us consider the situation in the US, where its anti-avoidance, which clearly we cannot consult on, but leader has explicitly talked about the dangers of the they are more than welcome. austerity narrative and has specifically said that to cut As the debate today was opened by the Secretary of too far, too fast would be detrimental to the US economy State for Transport, it would be rude not to touch on a over time. And what do we see there? Unemployment few transport issues. Like other Members, I welcome falling month by month and significant growth in the the investment in transport infrastructure. One thing economy, just as, funnily enough, there was in this that has not had much attention in this debate is the country in this Government’s first few months because decision to set up the transport innovation centre. I am they inherited that from the previous Government. sure the Government will recognise the overwhelming Most crucially, capacity in the US economy is being case for it to be based in Derby, where we have Rolls-Royce, protected. Look at its auto business: many Republicans Toyota and Bombardier. I can think of nowhere else in said it should be let go to the wall but the Democrats the country where transport plays a greater role in the stepped up and said, “We will protect it.” Why? Because economy and where there are more people with the if capacity is protected in the economy, the ability to skills to make the centre work effectively. keep growth going is retained throughout. We have seen a big turnaround there. In all the Government’s recent announcements about the electrification of rail lines, it is a pity that they When we go into periods of recession or depression, missed out the east midlands main line. It serves a large businesses try to hold on to their ability to manufacture part of the country and a number of deprived areas. We or to keep going for as long as possible—perhaps for suffer from a much slower train service than the east six, 12 or 18 months—without laying people off. After a coast or the west coast, which must have an effect on while, however, when it is clear that no lifebelt is coming economic activity. In fact, to get to London for 9.30 this from the Government, businesses start to lay people off, morning, it was quicker for me to catch a train to so a 2,000-employee business becomes a 1,500-employee Tamworth and change to the west coast main line than 1105 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1106 Situation Situation to stay on the east midlands line. There is an overwhelming spread that pain, although the increase in the state economic case for electrifying the line and I hope that pension tackles some of that. But the change is a year that will be brought forward. away and there is scope to have a look at it. As my hon. Friend the Member for Cleethorpes I welcome the Budget. It sticks to the course that we (Martin Vickers) said, after three days of Budget debates need and takes our finances in the right direction, most of the good points have been made. Obviously, I heading back towards stability. I think it will be a warmly welcome the increase in personal tax allowance successful Budget for growth in this country. for the lowest paid; it will affect 23 million people, which is a strong signal of where we think our values 1.6 pm should be. Of all the money the Chancellor has at his disposal, the £3.3 billion annual cost when that measure Roberta Blackman-Woods (City of Durham) (Lab): takes effect shows where his focus and priorities lie. It is a pleasure to follow the hon. Member for Amber Valley (Nigel Mills), not least because he aptly demonstrated I welcome the measures announced previously to try the huge complacency that exists on the coalition Benches to get more finance to small and medium-sized about the need for economic growth. However, I am businesses—the loan guarantee and credit-easing schemes. sorry that the Secretary of State is not in her place, We hope the banks will take them on so that businesses because I am extremely worried about her on two around the country have access to the finance they need counts. The first is that she seems to be inhabiting a to grow and create jobs. fantasy land where we are actually experiencing economic I shall spend the last few minutes of my speech growth, and the second is that she seems completely talking about the importance of tax simplification, unaware of the fact that we have had a global economic which was front and centre in the Budget. I especially crisis in the past few years and so we need a growth plan commend the valuable work of the Office of Tax to recover from it. Simplification on this Budget and the previous one. I would have liked to contribute something to the I only hope that the Government, having seen the value debate about transport, but alas I cannot, because I am of the work of the OTS, will commission it to do afraid the Budget delivered absolutely nothing to meet something more ambitious and look at how we can the transport needs of my constituents. There was no radically reform business taxation and corporation tax support at all for buses, despite the fact that our bus to make them simpler and to make the country even network is in crisis. I know from my constituents that more attractive to investors. despite the fact that we have precious few jobs in the The OTS recently produced a report on the taxation area, with 10 people chasing every job vacancy, people of the smallest businesses. I welcome the fact that the are losing jobs because they cannot get buses to work. Chancellor went further than it recommended, in effect Care workers— allowing businesses with turnover of up to £77,000 not to prepare detailed accounts, but just to pay tax on their Gavin Shuker: Is my hon. Friend seriously trying to cash surplus each year. If that coincides with VAT convince the House that she does not have a cable car in thresholds, businesses will know that if their turnover is her constituency? less than about £77,000 they will not have to prepare detailed accounts for tax purposes or deal with VAT. Roberta Blackman-Woods: Alas, I do not have a cable That is a powerful message to send to the smallest car, but that is a great idea for a new business in my businesses. I look forward to the consultation to see constituency, although where it would take people from how that measure can be made to work. However, there and to, I am not exactly sure. is just one issue I want to raise. We all want the guy who There is no support for transport, despite the fact is making a nice living for himself—perhaps a successful that business leaders in the north-east have expressed plumber—to be able to grow his business, and to take concern that a failure to invest in the region’s transport on someone to train. The risk is that if he does so, and network could stifle long-term growth. They have made takes his turnover beyond £77,000, he will suddenly be a point that without the right transport and energy clobbered by having to register for VAT and going supply infrastructure, the region could struggle to realise through the accounts process. We need to think about its full potential. I hope the Minister will take on board how we transition successful people who take on extra these matters in her comments. staff, which would tackle unemployment, and bring down the compliance level for them, but that is not to What do we know from the analysis of the Budget so Financial Times, take away from what is a welcome measure. far? I have with me an extract from the which concludes that that it is a Budget “without economic A slightly less welcome review from the Office of Tax significance”. It also says that the Government have Simplification was the review on taxation of pensioners, absolutely no plans in place to change the unhappy which is where the Budget measure that has been most outcome of the slump, and that includes, critically, no controversial—the changes to the personal allowances plans for the north-east of England. What we do know for people over a certain age—may have originated. is that the unemployment figures for the north-east are Those of use that have argued for tax simplification much higher than those for the south-east: 10.6% in the have had to accept that whatever we try to change there north-east, compared with 6.6% in the south-east. IPPR will be some winners, who will be very grateful but North has said that it is the largest gap since the labour probably very quiet, and some losers, who will be somewhat force survey began. One might have expected the Red less grateful and no doubt quite a lot louder. Book reforms to prioritise the north-east in support for Understandably, that is what has happened. When there economic growth, but in fact there is only one mention is no fiscal room, there is no way of easing the burden of the north-east in its many pages dealing with growth, on those that lose in the short term and to try and compared with seven mentions for London. I want to 1107 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1108 Situation Situation [Roberta Blackman-Woods] also that, although the target to double UK exports is commendable, there is absolutely no detail on how it see economic growth in London. It is our capital city will be achieved. Rather, Government Members have and it is important that it is supported. However, that today given us a complete fantasy land, where they does not excuse giving no attention to the north-east somehow think that the measures in the Budget are apart from one mention of Newcastle. County Durham going to deliver growth for the north-east. But there is is not mentioned at all. simply no plan. We want instead to see measures to create jobs for Dr Thérèse Coffey: Does the hon. Lady accept that young people, a tax on bankers’ bonuses which would from the growing places fund, the north-east has been create 5,500 jobs for 16 to 24-year-olds in the north-east allocated more than £10 million, which is far more than and a temporary reversal of the Government’s VAT is going into my region? increase which would put £450 back into family budgets. Labour would give 58,000 small businesses in the region a tax break if they took on extra workers. That is the Roberta Blackman-Woods: I will deal shortly with challenge I throw down to the Government today. some of the measures that have been made available for the north-east. Many measures in the Budget will have a negative 1.15 pm impact on people’s income, including that of 8,000 families in County Durham, who will lose out from the Sarah Newton (Truro and Falmouth) (Con): When I changes in tax credits. There is no action to tackle youth talk to businesses in my constituency in Cornwall—this unemployment, despite the fact that it is much higher goes for families as well; a party from Shortlanesend by several percentage points in the north-east than community primary in my constituency were just in the elsewhere in the country. The Government should have Gallery, so some young people from Cornwall have set out a coherent strategy in the Budget to get the been here today—they tell me that, in such a part of the north-east economy back on track. Instead we have a world where we are so far away from major markets, measure to reduce regional pay, taking £78 million our transport infrastructure is absolutely essential and vitally of the north-east’s economy. There is no evidence to important. support the contention that the current position inflates I very much welcome, therefore, the Secretary of public sector salaries or acts as a disincentive to the State’s introduction to the debate this morning, as it private sector. underlined the Government’s commitment to ensure Business leaders have been calling for some sort of that we invest in our vital transport infrastructure, holistic strategy, which we simply do not have. I say to which is important not only for individuals but for the hon. Member for Suffolk Coastal (Dr Coffey) that businesses—businesses that need to get their goods and there have been several small measures, but they are services to market. outside any coherent framework. Seventy-three per cent. One area of transport, which we have not touched on of successful bids from the first two rounds of the today but that is very important to the nation, is shipping regional growth fund, including 40% from the first and ports. More than 90% of the value of goods entering round, have not yet been signed off. They are therefore this country enter on ships, as does 95% of everything not delivering anything for the north-east, and that we consume in this country. Of course, it has to go £14.25 million of the regional growth fund supports through a port, otherwise we would not be able to only 91 jobs. I emphasise to the hon. Lady and her export. My hon. Friend the Member for West Suffolk colleagues that that is a drop in the ocean compared (Matthew Hancock) quite rightly reminded us of the with what is needed. huge importance of international trade to our great We also have enterprise zones and local enterprise country. Growth will come from exporting more of our partnerships. In doing research for my speech today, I goods and services, and they will be exported by and had to try to determine what was happening through large on ships. Therefore, ensuring that we have the two enterprise zones, two LEPs, two regional growth right port infrastructure to support the growth of trade— fund allocations, the business enterprise network in the and foreign trade—in and out of our country is vital. north-east and the chamber of commerce. It is difficult I therefore welcome in particular as part of the to get a flavour of what is happening in the region, in Budget—a small but important part in this context—the great contrast with the position under the regional Chancellor’s report back on his commitment in the autumn development agency, when it was easy to monitor the statement to look at the planning issues surrounding impact of what was happening with investment and ports development. I see nodding those colleagues who jobs in the north-east. It is now extremely difficult to get represent ports, because whether one represents a small that information. port, a relatively small port in terms of shipping turnover, Without a coherent framework and an overall strategy, as I do in Falmouth, or one of our great container the economy of the region is simply not growing and ports, one realises that how port operators develop not enough investment is going into key sectors for those businesses is a real issue. economic growth, including those that had been identified under the RDA. It is not only me who is making that Charlie Elphicke: My hon. Friend will be aware that point; our business leaders say that, of all the policies the national ports planning policy framework was recently the Chancellor could have introduced in the Budget put before the House. Does she agree that it is a positive that would have had an impact on the north-east, step forward, although we should perhaps support mankind measures on investment allowance and employment a little more vigorously and the humble shellfish a little taxes would have been the most important. They say less? 1109 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1110 Situation Situation Sarah Newton: I definitely agree that the framework nation it always has been will want to watch these things is a big step forward, and protecting our precious and help the Government constructively to tackle these marine environment, which supports the whole fishing issues. industry and ecosystem of parts of the UK, is important, With regard to other vital infrastructure, a number of but we need to balance that with our economic growth, colleagues, including my hon. Friends the Members for stability and jobs, which is really important too. Bedford (Richard Fuller) and for Camborne and Redruth The Budget reports on the review that was set in train (George Eustice), mentioned that for those of us living in the autumn statement in order to analyse the in the more remote parts of the UK a lot of transport is implementation in the UK of the EU habitats directive, by road, so fuel prices and levies on fuel are of great to which I think my hon. Friend was referring, and significance to us. All the goods and services and the which can create so many problems for our port operators. great things that are manufactured in Cornwall need to In reading through that review, I think there is a great be able to get to market in the rest of the country. deal to be welcomed. It has engaged with a range of Although I was disappointed that fuel levies will go up stakeholders, all of whom acknowledged that the in August by 3p, I understand why, given the huge mess implementation of the habitats directive caused considerable that the Government are trying to sort out and the problems for our ports operators, and many positive economic legacy they were left. That is something we measures have been put in place in terms of collecting have to bear. data. One thing I would like the Minister to consider is a Many disputes about planning applications arise because recent precedent. We have heard from colleagues today there is no accurate data, and a lot of work is going to about the extent to which we believe fuel companies are be put into that area, and into ensuring that the various profiteering from customers in our parts of the world, regulatory bodies—ultimately, the Marine Management where the price at the pump is 3p, 4p, or 5p more Organisation will make the licensing decisions for our expensive than it is in other parts of the country. The ports, but many are involved—engage earlier and more Office of Fair Trading has the task of looking at whether constructively with ports operators, which should make there is a proper competitive market working in the them more confident that proposals for development region. The Department for Energy and Climate Change can go forward. recently referred the fuel oil market to the OFT, because the winter before last many of us experienced the most appalling hikes in the price of fuel oil, which many Dr Thérèse Coffey: My hon. Friend and I have made people in remote, rural areas use to heat their homes. common cause in trying to help those matters along, as After the referral to the OFT, some very good work it we share similar issues. I understand that she welcomes did and the implementation of measures, we saw no much that was in the review, but does she share my repeat of such hikes last winter. With that recent precedent concern that it missed the opportunity to look at certain in mind, I think that the OFT could play a useful role in regulations and determine whether we should have them at ensuring that our regional fuel markets are working all? Indeed, the review’s terms of reference included efficiently. Based on that, hopefully we could see real looking through that and making appropriate pressure to reduce the profiteering that I believe is going representations to the Commission. on at the pump so that people in constituencies further away from the south-east of England will not feel the full impact of the 3p rise. Sarah Newton: My hon. Friend makes a good point. I think that the review is a work in progress. The review I welcome the measures in the Budget to support team did not have much time, but I think they managed infrastructure. The investment in rail will affect not only to cover a lot of ground. Certainly, if we look at the HS2 but places such as Cornwall, and the connectedness terms of reference the Chancellor gave them, we will see of the remoter regions of the UK is vital to our economic that there are things that subsequently have been passed future. I very much support and commend the over to the Law Commission for its consideration. I was Government’s single-minded focus on making sure that somewhat perturbed to read in a footnote in the review we have an infrastructure that is fit to get Britain document that the Government would consider the working and Britain back to work. Law Commission’s recommendations “in due course”. I would like reassurance from the Chancellor that he Several hon. Members rose— will ensure, through the all-departmental working group he set up, that regulations are not standing in the way of Mr Deputy Speaker (Mr Lindsay Hoyle): Before I call economic growth and development of our ports, that the next speaker, I should say that the Front-Bench this “in due course” is acted on speedily, because in due speeches will start at five past 2, and I want to make course without reform we will not have the ports to sure that everyone gets in, so I am dropping the time enable us to import our energy or the food and other limit to six minutes. Interventions have been taking vital materials we need. I would like to see that “in due speeches up to nine minutes, so please think about course” in the footnote turned into something a little whether it is really important to intervene. more urgent. 1.25 pm I think that eventually representations will have to be made at an EU level. Interestingly, the review showed Mike Gapes (Ilford South) (Lab/Co-op): It is a pleasure that other European countries with ports have had to follow the hon. Member for Truro and Falmouth experiences similar to ours when interpreting and (Sarah Newton). She said that the Government are implementing the habitats review. I am sure that all “single-minded”, but it is difficult to judge whether that Members with ports in their constituencies or an interest is the case. I have been looking around and listening for in ensuring that Britain returns to being the great trading contributions from the Liberal Democrats, but clearly 1111 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1112 Situation Situation [Mike Gapes] to other countries in Europe on the transit opportunities of people flying across the Atlantic or flying in from they would rather not be here to explain to the ghosts of Asia or the southern hemisphere. We need that capacity Beveridge and Keynes the reactionary, failing austerity soon, and not through some fantasy island that will policies that they are signed up to. lead to the destruction of habitats and the killing of In my constituency, we have had a very significant bird life. In my opinion, the additional capacity needs increase in unemployment in the past year. The number to be at Heathrow and possibly at other existing airports, of jobseeker’s allowance claimants went up to 4,119 in rather than at the Mayor of London’s fantasy island. February; that is 297 more than a year ago and a 7.8% increase in one year. According to the House of Commons 1.31 pm Library, 7.6% of my constituents are unemployed, and the number of those claiming JSA for more than 12 months Mr Tobias Ellwood (Bournemouth East) (Con): I am is up by 395 from 480 to 875—a huge increase. That is grateful that I was able to catch your eye, Mr Deputy not unique in this country, but it is important that Speaker, in this Hopperesque corner of the Chamber. It people understand the situation. I represent a London—an is a pleasure to speak in this debate on the Budget and outer-London—constituency where 11.6 people are chasing the economy. every single job. Many of my constituents commute During the general election, I made a speech on the into central London to work, as they always have done, economy in which I said that if three MPs were asked but the number of jobs available to them there is going the same question on the economy, they would give down, whether they are public sector jobs or jobs in the three different answers. I should confess that I added financial services industry in sectors such as banking that if one of the three was a Lib Dem, there might be and insurance, which have not been taking people on. four different answers. Of course, we are now in coalition, We have particular problems that affect constituencies so that joke is probably politically incorrect. in London, and those problems should not be ignored It is day three of the Budget debate and we are by those who are suffering in a similar way in other beginning to understand the detail of the statement and parts of the country. Yes, there are a lot of millionaires the impact that the component policy changes will have. in London. There are lots of people with £2 million, Labour are starting to cherry-pick aspects of the Budget, £3 million or £5 million houses, but there are also many probably to create a distraction from their contribution poor people living in bed and breakfast accommodation to the state of the nation’s economy and the inheritance or short-term rented accommodation. One of the real that we received. I can retort by praising the tax breaks tragedies in London is that tens of thousands of people for the digital economy, which will help Bournemouth are in housing need. There was nothing in this Budget especially because it is thriving in that area; the funds about helping to get people into work so as to get the for the Dorset local enterprise partnership; and the economy moving again and deal with the chronic raising of the personal tax allowance, which will remove homelessness and housing problems that we experience many low-paid workers in Bournemouth from the tax in London and in other cities. system altogether. Only 56.3% of my constituents are in employment. As important as those points are, we should not lose That reflects demographic and other issues; for example, sight of the implication in the Office for Budget a large number of people are in education. Nevertheless, Responsibility report that the shadow of the recession the figure is very low compared with other areas that that Labour took us into still looms. The eurozone crisis have 70% or 75% employment. We need targeted measures is not over. Oil prices remain high, and could climb to deal with those whose first language is not English, higher. Although it has been about four years since the or women who have not previously been in the work collapse of Lehman Brothers and the run on Northern force, in order to try to change the situation. Nothing in Rock, we are certainly not out of the woods. We must this Budget will deal with those problems; all we have not forget the scale of the financial mess that we inherited. instead is a policy of imposed austerity. Labour’s approach for a decade was to borrow money I came to the House today, as I always do, by public that the Government did not have. It allowed the banks transport. I travelled from Ilford to Stratford on a very to do the same by over-leveraging and lending to people overcrowded train, on which it was impossible to get a who could not afford it. It is all very well for Labour to seat. That is the normal routine for tens of thousands of blame the rest of the world and the state of the global my constituents every morning. When we get Crossrail economy, citing Fannie Mae and Freddie Mac, but in five, six or seven years’ time, it will make a huge there were issues here in the UK for which the Labour difference. I welcome this Government’s commitment Government were responsible. Bradford and Bingley to carry on with the Crossrail project, which was started was offering 150% mortgages. That was a UK responsibility. by the previous Government. As the chairman of the It was happening over here. We cannot blame that on all-party Crossrail group, I have been involved in the the Americans or on the state of the global economy. campaign for many years. I believe that Crossrail is vital Even with the knowledge that the recession was under for the future not just of London, but of the whole way and was likely to get worse, Labour kept on spending. country. I hope that the Government will take action to ensure that the Crossrail trains are built in this country, Mike Gapes: Is it not the case that in opposition, the unlike the recent disaster over the Thameslink trains. Chancellor of the Exchequer said that there was too I also support High Speed 2, which is vital for the much regulation by the last Labour Government? prosperity of the whole country. It is time for the Government to get off the fence— Mr Ellwood: I do not agree with that statement at all. I made an intervention about this—on extra airport It happened under the Labour Government’s watch, capacity for our capital city, otherwise we will lose out and they were responsible. Their Chancellor, who later 1113 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1114 Situation Situation became the Prime Minister, inherited a stable economy. Several hon. Members rose— Indeed, in the first three years of the Labour Government, they actually balanced the books. Then in 2002, they Mr Deputy Speaker (Mr Lindsay Hoyle): Order. We overspent by £19 billion. By 2008 they had overspent by have six speakers left, and I want to bring the Front £68 billion, and by the following year they had ratcheted Benchers in early, so I have to drop the time limit to five up a £152 billion deficit. That was after Lehman Brothers minutes. I also ask Members to try to ease up on the and Northern Rock. In their final year, they were still interventions, otherwise somebody will have to drop off spending like there was no tomorrow, ratcheting up a the end of the speaking list. decifit of £145 billion, taking us to an overall debt of close to £1 trillion. That is not good Government 1.38 pm responsibility for the economy. Tom Blenkinsop (Middlesbrough South and East Not until we had a general election and an emergency Cleveland) (Lab): This Budget plans for £155 billion of Budget from our Chancellor, back in June 2010, was deficit reduction by 2016-17, including £126 billion of there some slowing down in Government spending. He spending cuts. The amount of cuts being pushed up introduced measures to protect the economy and set into the next Parliament has grown, so the Conservatives out a comprehensive strategy, including measures to and Liberal Democrats are currently planning to go to control public finances and stimulate growth and tax the next election promising to cut spending by at least reforms to increase our global competitiveness. Those £47 billion in the first two years of the next Parliament, measures were lacking under Labour, and the hon. on top of the cuts continuing throughout this Parliament, Member for Ilford South (Mike Gapes) should ponder while giving top earners a tax break. them. The OBR has again downgraded its estimate of the I do not have time to go into the detail, but it would economy’s sustainable growth rate. As of June 2010, it be helpful to break the Budget measures down into thought the rate over this Parliament would be 2.1% to fiscal and monetary policy. Fiscal policy means the 2.35%. The OBR still expects the sustainable growth Government expenditure and taxation measures that rate to pick up over the next couple of years. It believes have a direct effect on the distribution of income, demand that 2.3% is doable with the Budget measures; I do not and the level of economic activity. Two prime examples think so. Even if it is right, which it consistently has not are the corporation tax cut, which will make us far more been, the growth will be jobless growth, with a high dole competitive, and the reduction in the top rate of tax to bill to pay. The Chancellor, therefore, should be trying 45p so that Britain no longer has the highest rate in the everything in his power to get the sustainable growth G20. rate up, but he is not. At the moment, cutting spending In contrast, Labour introduced the 50p rate just is almost the only thing he is doing. before it left office, and it failed to raise the predicted Although the OBR has made few changes to its revenues and undermined our competitiveness. Looking headline growth forecast, it has changed the expected back in history, Labour seems to have had a love affair composition of that growth. The Government are keen with high income tax rates over the past four decades. It on talking up exports and investment, but the OBR’s was Wilson who put the top rate up to 83%, and estimate is that the UK’s recovery will be dependent on Margaret Thatcher then reduced it to 60% in 1979 and the consumer. The OBR’s growth forecast for 2012 to 40% in 1989. What did Labour do when it came into 2016 is spilt into two categories only: private consumption office? It did not put the rate back up again; it kept it as and everything else. Quietly, private consumption is it was. It recognised—certainly Tony Blair recognised—that expected to be a crucial driver of Britain’s growth in the to remain competitive, we had to have sensible tax rates. years ahead. In November, the OBR expected 12.5% of I do not have time to dwell on monetary policy—the all growth in 2012 to come from private consumption. supply of money, the cost of money, the rate at which it It has now revised that up to 37.5%. That is a massive is controlled, the price that the Government pay to change in just five months. Indeed, over the next five borrow it and the total supply of money into the years to 2016, the OBR now expects more than half of economy—but it has an impact on matters such as all growth to come from private consumption. Hon. controlling our triple A rating and the price of borrowing. Members will remember that that is the “wrong” sort of The Government have kept interest rates low and used growth, according to Government Members previously. selective quantitative easing, and that sound monetary The OBR believes that in four of the next five years, policy is moving Britain forward. consumption will add more to gross domestic product This is a radical and reforming Budget that will help than net trade, and consumption is expected to be a Britain earn its way in the world in continuing difficult more important driver of growth and business investment times. Labour gave us a disastrous economic legacy, for in every year of the forecast. which it is only now, sheepishly, apologising. It led to For all the Government’s talk of exports and business record debts and a halving of our manufacturing base, investment-led recoveries, the forecast now suggests that resulting in our coming within a whisker of losing our they are banking on a return to consumer-led growth important triple A rating. The Government are at last while simultaneously condemning it and laying absolutely balancing the books, reforming our tax system, supporting no foundation for it. They privately count on consumer British business and staying on a course towards economic growth, yet politically condemn it. What tells us that recovery. The OBR has revised upwards its growth consumer-led growth is not coming from current forecast for this year. It is small, but nevertheless improving, Government policy? According to the Office for National and the OBR predicts that it will reach 2% in 2013. Statistics, hopes for growth from the wider UK economy Labour has proved that we cannot borrow our way out in the first quarter of the year were dealt a further blow of trouble. This Government are proving that we have as retail sales volumes were revised down to 0.3% growth to earn our way out. from an initial estimate of 0.9%. 1115 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1116 Situation Situation [Tom Blenkinsop] money in their pockets to spend as they choose. One thing I would, however, like the Chancellor to consider The Chancellor also said the Budget is about business, for next year’s Budget is radically to increase the tax but the real policy should have been getting UK businesses threshold at which people pay 40%, so that those on to part with their hoarded billions of pounds in cash, reasonably well-paid jobs can gain substantially as the and getting banks to lend. The Chancellor has not economy improves. addressed that hoarding. Today, BT paid off a considerable deficit regarding its pension scheme—£3 billion by the I want to concentrate on the benefits of the Budget to end of the month and nine annual payments of London. The myth is often put about by people from £325 million. BAE Systems has a £2.1 billion cash pile, outside London that everyone is paid huge amounts of but in the past two years has cut 22,000 jobs, including money in London. That is not so. With the increase in 3,000 in the UK, while returning £2.2 billion to shareholders. the personal allowance to £9,205, an additional 97,000 The story is similar at Apple and AMEC, which ended people in London will be taken out of income tax 2011 with £521 million of cash and unveiled a £400 million altogether, and overall 3 million taxpayers in London share buy-back programme. will benefit—more than half the working population of London will get a tax cut as a result of the Budget. It is a familiar tale across the country. Last year, shareholder dividends from listed companies jumped The increase in the Growing Places fund, to which I 19% to a record £67.8 billion, according to Capita referred at business questions yesterday—the additional Registrars, and are expected to hit a new high of £75 billion £70 million being put in the hands of the Mayor of this year. After nearly two years of this Government, London—will enable Boris Johnson, over the next four something has clearly gone wrong. The last 15 months years, to create 200,000 new jobs for people not currently saw the UK economy contract. Business investment is in employment. Even more importantly, the money will shrinking. In the final three months of 2011, it fell by enable more and more young people to get and retain 5.6%—the single biggest drag on growth, pulling the work. Furthermore, an extra 7,500 new jobs will be economy down by 0.5 percentage points. Business created as a direct result of the enhanced capital allowance investment is still more than 15% below its pre-recession for the Royal Docks enterprise zone. Even better, 1,600 peak. Last year, the OBR forecast business investment of the jobs will be in high-value manufacturing, which to deliver 6.7% growth. It did not; it shrank 2%. is good news for Londoners all round. According to the Bank of England, 2012 is not The Secretary of State for Transport has told us looking encouraging either, despite the OBR’s hopes. about the improvement to railways and suburban journeys The Bank’s most recent agents’ survey from February within London. The investment plan announced in the found: Budget will benefit Londoners overall. Already, every “Investment intentions continued to weaken, suggesting little London local authority has frozen council tax, which is growth in spending on capital over the next twelve months”. good news for hard-pressed families, and the Mayor of John Hawksworth, of PricewaterhouseCoopers, says London has reduced his share of the council tax. Effectively, that he cannot see a recovery in business investment then, every family in London has had a council tax until 2013. Simon Hayes, of Barclays Capital, says that reduction overall. That was good news when the bills the OBR’s projections require a level of spending not were released. seen in 30 years. Most pointedly of all, BAE has made clear that business will not invest if it cannot make the There is more. London will be one of the super-connected returns. At the moment, the numbers simply do not add cities. The £25 million to deliver ultra-fast broadband up. will benefit 774,000 residents and 121,000 businesses. That will put London at the forefront and enable it to Corporate balance sheets are brimming with cash. compete with the rest of the world’s greatest cities. It According to official data, UK companies are tucking means that 318,000 people will benefit directly from away about £70 billion a year, which is twice as much as ultra-fast broadband and wireless connectivity, and that before the crisis. Some analysts have estimated the total we will be at the very heart of generating new jobs and stash of cash under the corporate mattress at £750 billion. new prosperity for this country. Investing just £20 billion of that in the UK would deliver 1% of growth. I am grateful for the £15 million that will be spent on We need a Budget for households, but unfortunately improving safety for cyclists in London. The increase in the Government are wedded to supply-side economics. cycling in London is welcome, but the fact that people Until we have demand policies, that money simply will are in danger when they cycle has to be addressed. That not be spent. is a key part of the Budget. Finally, on the benefits to London, money has been set aside for the new east London crossings—a ferry, a 1.43 pm tunnel and possibly a bridge. I have the honour of Bob Blackman (Harrow East) (Con): It is a pleasure pushing the next Transport for London Bill through the to follow the hon. Member for Middlesbrough South House. The Bill will enable tolls to be collected for using and East Cleveland (Tom Blenkinsop), although he the ferries and tunnels. I look forward to that and to the seems to have forgotten that a former Labour Chancellor investment that is to be made. made the greatest raid on pension funds ever, for which All in all, then, the Budget benefits London and we are still paying the price. Londoners, and brings home to everyone the importance I thoroughly approve of the Budget. Raising tax of the choice they make on 3 May. Do they go back to thresholds to take people out of taxation is a thoroughly the bad old days of Ken Livingstone, or do they look to Conservative way of doing things, as people have more the future with Boris Johnson? 1117 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1118 Situation Situation 1.48 pm claimed benefits but, two months later, her claim had still not been processed. There are so many ordinary Julie Hilling (Bolton West) (Lab): Well, what a Budget! people, and so many stories of suffering and desperation. People were hoping for a Robin Hood tax, but instead Ordinary people were already suffering before the Budget, they got a Sheriff of Nottingham Budget—a Budget but life is now going to get a whole lot worse, especially where the poor pay for tax cuts for the rich, and people for the 270 working couples in Bolton West who are at the bottom in terms of income, opportunity and about to lose £3,870 a year. aspiration pay the price for something that was not their fault. I shall finish by reading an e-mail that I received yesterday from Nicola. She said: Despite the claims of the Government parties, this is “I’m currently living with my partner and two children. I work not the mess of the last Labour Government, either. 16 hours a week and I’m currently receiving maternity pay. I’m When the banks imploded and affected the whole globe, aware that when the tax credit changes in April, we’ll need to be the last Prime Minister had a choice: did he allow us to doing 24 hours between us. My partner has completed all the lose our homes, jobs and pensions, and the country to relevant work programmes but still can’t get a job, which leaves go into depression, or did he invest in infrastructure me to try and get the extra hours, but because I’m on maternity and ensure that our economy did not disintegrate? He leave, even if I got the hours, they wouldn’t start till August. rightly did the latter. Of course we must now pay down Surely I don’t have to give up my job, which would mean losing the deficit, but not at the expense of low and middle my maternity benefit, but how else can we survive?” earners, not so deep and fast that we choke off growth, I hope that the Government are proud of themselves. It and not in a way that is totally unfair. The Budget has will no longer be “Love thy neighbour”; it will be, “Can benefited people who got us into this mess and made you feed thy neighbour?” Actually, I do not hope that the innocent pay. It is a Budget that has cut taxes for the the Government are proud; I hope that they are ashamed richest. It has increased stamp duty on houses selling that they have put money in the hands of the rich and for more than £2 million, even though only 4,000 are taken food out of the mouths of the poor. sold each year. I wonder how many of those will now be sold for £1,999,999. 1.53 pm On transport, I welcome the further £130 million for the northern hub, but I will be even happier when the Charlie Elphicke (Dover) (Con): I welcome the Budget. Secretary of State confirms that we will get the whole of I particularly welcome the reduction in the rate of the hub. Will she tell us today whether we will get the corporation tax. By April 2014, it will be 22%, the other £330 million that we need to complete the project? lowest rate in the G7. As I have previously argued, I Will she also tell us whether there is to be any new would like us to go further and reduce business taxes, in rolling stock? Electrification and improvements to lines time, to 15%. With lower taxes comes greater corporate are more than welcome, but they are not much use social responsibility, however. We need a new social without the right trains. We need an end to the nonsense compact: low taxes and low rates, but business must pay of diesels running under wires. up. We need a sense of social justice and of corporate The announcement of investment in rail was the only social responsibility in the tax system, especially for good news on transport for my constituents. The multinationals that are quartered overseas. Let us take Government say that people should travel to get to the case of Google. We can examine that example work, but how? Train fares have gone up by 11%. Bus because Google’s numbers are publicly available, unlike fares have also gone up and, according to the Campaign those of many other companies, and it is unfair to for Better Transport, one in five services have been cut. single out Google, as the practice that I am about to Fuel costs are at an all-time high. There was a moment describe is widespread. It took about £2.15 billion in of optimism during the Chancellor’s weasel words when revenue from the UK in 2010, making an estimated he said that he did not propose any further changes to £700 million profit, yet it did not pay any tax. In fact, it fuel duty, but he forgot to say that the duty would go up declared a loss of £22 million. I am all for the silicon by 3% in August, and hard-pressed motorists might roundabout, but it should not be a magic roundabout, now have to pay for road tolling as well. in which going around it twice means not paying any My surgery is already full of people who have nowhere tax or going round it three times, like Google, means else to turn—people who are losing their homes because turning a massive profit into a tax loss. Even with this they have lost their jobs or been off work because of routing through Ireland, it is not as if the company is illness, who are desperate because their long-saved-for paying in America either, as the effective tax rate in the pension funds have collapsed, who are losing their United States is 2.4%. As I say, we need to take much tax credits, and who are waiting weeks for their further action. We need to know more about what other benefit when they lose their jobs and have no money for companies are doing and how much they are paying to food. the UK. I was told of a young man who was eating dog I thus propose a tax compact. The first element is biscuits because that was the only food in the house. that business tax rates should be low, simple and attractive. I was told of a 25-year-old lone parent with a young Secondly, however, business should have a social baby, who had no income whatever and had been responsibility to pay a fair share of taxes. Thirdly, tax relying on handouts from friends who could no longer avoidance must be dealt with firmly and rules changed support her. I heard about another lone parent with to ensure that a fair share of tax is paid. Fourthly, the three young children being paid £47.50 a week in benefits. European Union should support member states in She was unable to survive on that and was about to lose protecting their tax revenues rather than undermining her home. I also heard about a recently separated mother them at every turn, with discrimination rules gone mad, of three who was trying to set up a new home. She had as it does at the moment. Fifthly, every multinational 1119 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1120 Situation Situation [Charlie Elphicke] and will undermine the whole concept of national pay bargaining—something that has brought stability to the should publish the effective rate of tax paid on UK public sector over a long period. revenues, and no Government contract should be awarded The Secretary of State for Transport spoke about unless a fair share of tax is paid in the UK. transport infrastructure in her opening speech. The These are my specific proposals. Tax is avoided by use hon. Member for Harrow East (Bob Blackman) would of branch tax rules and by claiming to have a representative have us believe that everything is absolutely perfect in office and no tax presence. Used and abused are deductions London. Under Mayor Johnson, however, fares have of interest, royalties and management charges. We need risen and continue to rise. As he is presiding over very to consider tightening the representative office rules so high fares, he is storing up problems for the future. He is that people have a branch and pay a fair share of tax in also trailing the idea of the fantasy island airport in the the UK. We should consider tightening up on the abuse Thames. The Government seem to be embarrassed by of the rules of deductions. We should consider tightening that, so have delayed any rational discussion of airport up on individuals who abuse personal service companies— policy in order not to embarrass Johnson ahead of the and I do not mean only Ken Livingstone and a load of May mayoral election. former Ministers, as there are many people up and I suspect that at some point the Secretary of State down the country who have been abusing the tax system will come to the House and announce that she needs a and avoiding paying tax in entirely unacceptable ways. third runway at Heathrow after all. The airport’s policy Finally, we need reform in the European Union—first requires that, and its massive recent advertising campaign to the procurement rules and secondly to the tax rules—so will bring it about. I look forward to the somersaulting that we can ensure that our tax base is protected and that will take place, and to the massive opposition that that people who work for the Government pay a fair there will be to the proposal. share of tax to the Government on their fair profits. Johnson has spoken much about transport, but one Finally, on stamp duty avoidance, we need to consider of his first actions as Mayor was to cancel many of the an annual levy on all properties owned in a corporate step-free access programmes to stations in London, wrapper—not just residential, but commercial properties including three in my constituency: Finsbury Park, should pay their fair share. I do not think that any Highbury and Islington, and Archway. That has been stamp duty land tax or stamp duty predecessor was copied in many other parts of London. To raise the paid in relation to Canary Wharf. I think it is wrong fares on the buses and the underground, to reduce the that large commercial property companies do not pay opportunity for young people to travel, and to end their fair share as everyone else does. Everyone should former Mayor Livingstone’s good and progressive pay a fair share of tax; that is what corporate social programme of improving step-free access to all our responsibility should be about. That is social justice. stations and to make all our transport system fully That is the deal in the tax compact: a lower rate of accessible is a very strange set of priorities. It was corporation tax, lower business taxes—but no playing strange, too, that Mayor Johnson churlishly turned the system. down the previous Labour Government’s offer to part-fund the electrification of the Barking to Gospel Oak section 1.57 pm of the London overground, which would have assisted in creating a bypass route for freight in London and Jeremy Corbyn (Islington North) (Lab): This was would have improved the service generally. presented as some kind of intelligent Budget that was My constituency is in inner London, and the local taking the country forward and improving economic situation is as follows. Unemployment is rising, and growth and opportunities. The whole narrative, however, currently stands at 8% for adults and about 25% for unravelled within half an hour, when it became obvious youth. Today’s Islington Tribune picks up on a report that the Budget involved an attack on pensioners with cited in The Guardian that showed that the rate of the reduction in their tax-free allowances. We saw that unemployment among black young people has doubled the cut in the highest rate of taxation to 45% meant since 2008 and is rising faster than for the rest of the 14,000 people getting another £40,000 a year, while a community. The housing benefit cap is forcing many great friend of the Government, Bob Diamond of Barclays people in my constituency out of private rented bank, will alone receive £300,000 a year out of this accommodation—and there are still no controls whatever Budget. on the rents of those living in private rented In a couple of weeks’ time, the benefit cuts will kick accommodation. in—the housing benefit cap will have a big effect in my I want a Budget that helps the poorest in this country, constituency—and the cuts in tax credits will kick in at that creates jobs, that encourages local authorities to the same time. Hidden away on page 87 of the Red build council housing, and that shows that there is a Book is the revelation of a further £10.6 billion cut in sense of the reality experienced by those living in inner welfare to be taken at some point over the next four urban areas. If we do not provide jobs for young people, years—yet it is utterly unspecific about where it is we will reap the whirlwind. coming from, and utterly specific about what is going to be hit—on top of the £40 billion taken out of welfare budgets in the 2010 Budget, and all the cuts that have 2.2 pm gone on since. Priti Patel (Witham) (Con): Over the years, Conservative My hon. Friend the Member for Sedgefield (Phil Chancellors have stood at the Dispatch Box on Budget Wilson) eloquently criticised and attacked the Government’s day and outlined great programmes of reform to transform proposals on regional pay—and I absolutely agree with the economy, modernise the country, improve lives and him. This will lead to a free-for-all in public sector pay restore Britain’s standing in the world. That is exactly 1121 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1122 Situation Situation what our current Chancellor of the Exchequer did in 2.6 pm his Budget on Wednesday. He has had to reverse the socialist doctrine of an over-bloated state fuelled by the Owen Smith (Pontypridd) (Lab): This has been an last Labour Government’s binge-spending, which resulted interesting debate, although we have not heard too in an unprecedented economic crisis. much about transport, despite that being the theme for today. I suppose that that is a feature of Budget debates, I fully support this Government’s aim to earn our but I suspect that it is also a down to the fact that the way out of the economic crisis. I support the Budget Budget did not contain that much about transport. I am principle of rewarding work, backing business, and therefore not going to delay the House too much by being on the side of those who aspire to do better for talking about transport but will talk about the broader themselves. I also support the introduction of the new measures and about the Chancellor in the broader enterprise allowance, which will help young people not context. just get into work, but start up enterprises. Importantly, People say that the Chancellor is a man who already I also support the principle of sticking to the plan to worries a lot about his legacy, despite it being very early deal with Labour’s debts. in his Chancellorship. I suspect that explains the volume This will also be seen as a historic Budget, with the of leaks, which reported that he wanted this to be largest increase in the personal tax allowance ever, remembered very much as a watershed Budget. The which will benefit 24 million ordinary families throughout word used in the press quite a bit was “Lawsonian”, the country. Most basic rate taxpayers will gain £220 which I understand is a compliment where he comes every year. This Government will have taken 2 million from. Well, it was a watershed Budget and it will be low-paid people out of tax entirely. remembered—there is no doubt about that—but perhaps not for the reasons he wanted and not in the manner he The foundations of our economic strength were left anticipated. to crumble by Labour, but this Chancellor has put forward strong and credible plans to rebuild our economy. It was a watershed Budget for two key reasons. First, Just as the reduction in the main rate of corporation tax it shattered, once and for all, the illusion that this to 22p sends a resounding signal to the rest of the world Chancellor is a master of political tactics or economic that would-be foreign investors are welcome in Britain, strategy. The only masters are the masters of the universe, so this country needs a Government who are committed down the road in the City, who will be thanking him for to reducing the overall tax burden and letting low, this Budget. They might be the people who think he is middle and high earners keep more of what they earn in still smart about economic theory. I hate to tell him, but their pockets. The Labour party may not, for all we the only vanity that is burning right now is his own, on know, like the idea that people should be free to spend the front pages of the Daily Mail, The Daily Telegraph their money as they like, but my constituents want to be and all the other newspapers in which I read this able to control more of their money—the money that morning that one Tory Back Bencher, who remained they earn—rather than have the state raid their pockets nameless—I cannot think why he wanted to remain and waste their money on an over-bloated public sector. anonymous—said: “Everybody was saying George is a great economic strategist In addition to the scandal of leaving the country with and political strategist and how unique he is to have both skills: the biggest ever national deficit, the Labour party failed that is going to be questioned. In fact, colleagues already are.” to serve the country well, and certainly failed to serve More important, this Budget was a watershed because Essex well, on infrastructure investment. In Essex, our it gave the lie, once and for all—[Laughter.] The laughter infrastructure desperately needs investment, with the indicates that Government Members are not worried A120 being a case in point. It is the 10th most dangerous about this in any way, shape or form. However, the road in the country, and I am sorry to report that last Budget gave the lie to the notion that we are all in it week a young constituent of mine was very badly together in this country in a period of austerity, because injured in an accident on this dreadful road. Despite after this Budget we clearly are not. Clearly after being one of the largest large net contributors to the this Budget, the old Tory order is restored and some Treasury, Essex was left behind under the previous people in our society are, in their view, more equal than Government. The Labour Government were prepared others. to profit from the labours and endeavours of hard-working Essex families and businesses, but were never prepared The themes the Chancellor sought to pursue in his to put anything back. With a record like that, is it any speech were that his Budget would be simple, predictable wonder that voters there refused to return a single and fair—that was how he described it just a couple of Labour MP to the House of Commons and have made days ago. This morning, the Institute for Fiscal Studies Essex a Labour-free zone? I hope that the Government described it as a “hotch-potch” of reforms that will look to fast-track and implement mechanisms to “may turn out to be less fiscally neutral than intended”. bring inward investment in our infrastructure. In particular, I would welcome the opportunity to work alongside It is hard to disagree with that conclusion from the government to examine the financing models for roads independent IFS, because everywhere one looks in the such as the A120. Budget one finds measures that are mis-described, such as the tax increase on pensioners that is described as a Whether through supporting small and medium-sized simplification, and outcomes that are overstated. We enterprises, attracting foreign investment or helping have heard a lot today about this being a Budget for hard-working families by providing the largest increase business, but according to the OBR, it is resulting in a in the personal allowances in 30 years, this Budget is 0.7% reduction in business investment this year, which giving this country’s economy the strong foundations it is down 7% on the anticipated volume of business needs for future growth and economic prosperity. investment over the past year. 1123 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1124 Situation Situation [Owen Smith] the Government are guessing at the £100 million. Sensible economists would think a different sort of sensitivity Crucially, numbers have been massaged throughout range would have given them a far better estimate. the Budget or just plain made up—guessed at—on the basis of Arthur Laffer’s famous cocktail napkin curve. I Justine Greening: The OBR is very clear that the am afraid that the hon. Member for West Suffolk (Matthew £100 million represents a reasonable and central estimate. Hancock) will find that numbers in the Budget will fall In fact, I would suggest that the previous Government’s apart. assessment of elasticity in one of their final Budgets was designed entirely to manufacture tax receipts that Mr Stewart Jackson: Will the hon. Gentleman give were never going to materialise. If it was such a good way? idea, why did it take them 13 years to think of it?

Owen Smith: In a moment. Owen Smith: The reason why we did not introduce it Those numbers are absolutely crucial to the debate was because the economy was growing through most of because they are crucial to the claims of fairness and our period in government, unlike the economy under fiscal neutrality. The key number is that relating to the her Government. That is the principal reason. 50p rate costing only £100 million, because the OBR Let us return to the taxable income elasticity measure. endorses HMRC’s findings. That is what the Government The OBR says that it might be reasonable, but it also estimate will be the long-run annual cost to the Treasury says on no fewer than seven occasions throughout the of cutting the 50p rate. The Chancellor swept the number document that there is “huge uncertainty” around the aside the other day as though it were nothing, just as he assumptions—not small uncertainty, but huge uncertainty. swept aside with an imperious flourish of his hand the The Treasury itself, in its document—albeit buried on £1 billion that we actually saw going into the Exchequer page 68 of 69—says: in the first year of the 50p rate. “The results of this evaluation are highly uncertain.” Matthew Hancock: Is it any wonder that Labour left The reality is that based on the Laffer curve, the everything in such a mess given that it does not accept Government have made up that £100 million number, that higher taxes have behavioural consequences? Is the but over the last year we got £1 billion from the 50p hon. Gentleman saying that Labour will never again rate. look at the impact of tax rises on people’s behaviour? Charlie Elphicke: There is more evidence that reducing Owen Smith: We absolutely agree that taxes and the rate ups the take. Each time there was a reduction, changes in the income tax rate have an impact on from 80% to 60% in the ’80s, and then to 40%, revenues “behavioural yield”, to use the Treasury’s phrase. That went up hugely. We know that it works, from the evidence. is why, when we calculated in March 2010 the revenues that would be realised— Owen Smith: What we know is that last year we got £1 billion from the rate—not £100 million, but £1 billion. Matthew Hancock: Wrong. What we also know is that the OBR thinks the estimate of £100 million is highly dubious. That is the reality. If Owen Smith: It is interesting that the hon. Gentleman we had waited two or three years—a reasonable period—to says that; I am going to explain why it is not wrong and make the estimate, when people would not be able to why we are right. At first glance, it looks very simple. pull the money into an earlier year, which is increasingly Page 51 of the HMRC report shows the cost of cutting difficult as the years go by, we should have seen a the 50p rate—the money that will be forgone by the reasonable number. Exchequer—as £3 billion, not £100 million. The next The real issue is not the estimate, but what will line covers the behavioural impact to which the hon. actually happen as a result of the Government’s cooking Gentleman has referred—the one based on the Laffer the books in that fashion. Ordinary people will pay the curve and a bit of undergraduate economic text in the price. In this country, 4.77 million pensioners will pay previous 50 pages—and says that the Exchequer will get between £80 and £280 extra as a result of the changes to back £2.9 billion rising to £3.9 billion over the spending the personal allowance. That is the reality of the Budget, period. The key point is that all that is entirely based on not what the hon. Gentleman describes. a taxable income elasticity measure of 0.45. If we plug that into the equation we get this £100 million gap. Of What about the 1.3 million ordinary working people course, the previous Treasury figures were predicated earning about £41,000 who have been sucked into the on a 0.35 number—a more conservative estimate— 40p rate? We have not heard a lot about them in the and that would have given £2.7 billion in revenues each Budget. We have not heard about the teachers, policemen year. and middle managers who will be paying more, or indeed about the 1.3 million who will be affected by the Justine Greening: That was wrong. big cut in their child benefit—£1,300 for most of them. That is the reality of the Budget for ordinary working Owen Smith: I would be intrigued to get the Secretary people. of State to explain why it was wrong. If she looks at Many Members talked about business and growth. page 50 of the document she will see that it says simply We heard a fascinating contribution from the hon. that the Government decided that 0.45 was a better Member for West Suffolk about the need for an estimate. That was predicated on a single academic interventionist business and industrial strategy.I completely study produced in the Mirrlees report and there is no agree. There were two measures in the Budget along other evidence for drawing that conclusion. That is why those lines: one was for video games and the other was 1125 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1126 Situation Situation the patent box that is said to be benefiting GSK. I know Minister agree with Opposition Members, and in fact a bit about the patent box, because I was one of the with GlaxoSmithKline, that it was the patent box legislation industry side negotiators with the Labour Government that Labour put forward that, as Andrew Witty said back in 2009 when we struck the deal on the patent box. before the last election, would transform the life sciences It was not a Tory policy—an industrial strategy made sector? Will the Minister say thank you to us for putting not by the Tories, but by Labour, and we are now that forward? We are glad that she has taken it on. reaping the benefits. What about the video games measure? The hon. Miss Smith: If only they had been so full of good Gentleman thinks of himself as a bit of a historian of ideas in the last 13 years. It is absolutely clear from the economic facts, so he should look back to the first timing of GSK’s announcement, the day after the Budget, Budget of his great friend the Chancellor, when the that it is responding to the actions that we took to put right hon. Gentleman got rid of tax relief for video this economy back on track. We will not return to games. Two years later, with the video games industry growth through unsustainable debt, irresponsible spending pointing out that it was a really duff move, the Government and over-reliance on any one sector or any one region. have reinstated the relief: not a policy made on the Tory Nor will we jeopardise the progress that we have made side, but on the Labour side. in tackling our debts. That is why, as the Chancellor What is the reality? It is 0.1% extra growth, 4.77 million said, this Budget will have a neutral impact on public pensioners paying the price, inflation still at 3.2% and finances and implements fiscal consolidation as planned. wages only up 1.4%. The reality is that the Government I could refer here to the CBI, for example, which says are ill serving our economy and ill serving Britain. They that there were many calls on the Chancellor to spend do not know what they are doing. They are making a money he did not have. mess and the time has come for us to think again. Opposition Members have made interesting contributions to today’s debate. The hon. Member for City of Durham (Roberta Blackman-Woods) suggests that the 2.19 pm coalition is unaware of the global crisis around us. I The Economic Secretary to the Treasury (Miss Chloe think the IMF knows that Britain is no longer in the Smith): I am grateful for the opportunity to respond to fantasy land of Europe, and I think householders also the debate and to reinforce, at the end of the first few know that we are in the very real land of securing the days of Budget discussions, the Government’s determination future for our children—of spending what we have and to restore the UK to prosperity. of taking this country away from the turmoil in the euro I regret that you have not been here for the whole area and back to a strong foundation for private sector debate, Mr Deputy Speaker. During the day, we have growth. heard from the Opposition, in general terms, vacuousness, This Budget is hypocrisy and a lack of ideas. Specifically, the efforts “one of the best ever for UK GDP growth”, from the Front Bench of the hon. Member for Pontypridd (Owen Smith) show no grasp of the situation. I note he says the Centre for Economics and Business Research, continued to put forward the view that child benefit but perhaps the hon. Lady disagrees. should continue for millionaires. That is not something that the Government support. Roberta Blackman-Woods: I wonder whether the Minister As the House is already aware, it is because of decisive will answer my question about why, given the need for action that this Government have taken since the June economic growth in the north-east, there is no mention Budget of 2010 that we have secured and maintained whatsoever of County Durham in the Red Book. the stability of the UK economy. This year’s Budget builds on that strong foundation; it safeguards our Miss Smith: Mr Deputy Speaker, it may take more economic stability; it creates a fairer, more efficient and time than I have to list all the counties of the UK, simpler tax system; and it drives through reforms to although I would be happy to try if you were to be unleash the private sector enterprise and ambition that charitable with me. I think the point about the Budget is is critical to our recovery. that it lays out what the Government are doing across the country, and it lays out what the reality is. I will Mr Stewart Jackson: Does my hon. Friend share my explain the reality, and that is that 226,000 new jobs concern that the hon. Member for Barrow and Furness were created in the private sector last year. That makes (John Woodcock) is being rather shy about sharing the over 600,000 since we came into government. The Office good news this week? Because of this Government’s for Budget Responsibility forecasts that from the start decisions on the tax and regulatory reform and regime, of 2011 to 2017, a total of 1.7 million jobs will created GlaxoSmithKline is going to provide £0.5 billion and in the market sector. That is private sector growth built 1,000 jobs to his constituency. on a foundation of economic stability. I will explain how we have gone even further to Miss Smith: That is right, and the word I would use is encourage greater growth—unless the hon. Member for “churlish.” Perhaps the hon. Member for Barrow and Luton South (Gavin Shuker) would like to do that job Furness (John Woodcock) will justify now why he does for me. not welcome that type of investment. Gavin Shuker: I am delighted to raise a very important John Woodcock: I am delighted to get the chance to point, and I hope a non-combative one. What is the address the Minister on this, as I was delighted to Government’s position on the child poverty targets, welcome the Prime Minister to our patch. But will the enshrined in law, by 2020? 1127 Budget Resolutions and Economic 23 MARCH 2012 Budget Resolutions and Economic 1128 Situation Situation Miss Smith: This Government take child poverty We want to help build on our long and very rich extremely seriously, and this Government of course— history of scientific and technological leadership. It is [Interruption.] I beg your pardon. Is the hon. Gentleman essential to sustain that and capitalise on our strength. still chuntering? Would he like to clarify his question? It is also essential that we make the UK manufacturing supply chain more competitive. That sort of investment Gavin Shuker: I will help the Minister. There is a legal provides a springboard for entrepreneurs and manufacturers framework in place, under laws passed by the previous to lead a private sector recovery across all sectors and Government, to hit child poverty targets by 2020. Will all parts of the country. she give Her Majesty’s Government’s position on that target? Just as we encourage businesses to expand at home, we must also focus on helping British businesses to Miss Smith: I certainly join the hon. Gentleman in expand overseas in ways in which my right hon. Friend seeking to combat and take out child poverty, but it is the Chancellor set out last week. We can go further on this Government who will do that on the basis of our exports—we aim to double our nation’s exports to work through the Budget to put private sector growth at £1 trillion by the end of the decade. We will not sit idly the heart of the recovery. The Government will consider by while China, India and Brazil forge ahead. all the matters that feed into poverty and not simply Of course, if we want our businesses to take those transfer income from one side of a line to another. risks to invest and hire new workers, we must ensure Let me outline the other key things that we are doing that they have access to finance. That is why the Budget in the Budget. We are overhauling the planning rules, contains the national loan guarantee scheme, on top of cutting corporation tax, restoring our international our deficit reduction strategy, which has earned market competitiveness and creating an invitation for investment credibility and low interest rates. We are ensuring that in the UK’s economic future. As the House knows, the the full benefits of those low interest rates are passed on Government have already set out plans for some £250 billion to businesses throughout the UK. of infrastructure investment in the next decade and beyond. That is critical to renewing our infrastructure It is this Government who are taking the decisive network, which enables Britain to compete with emerging action needed to make Britain the best place to start, giants in the global market. grow and finance a business; who are putting ingenuity, innovation and the enterprise of people in businesses at The Chancellor provided further details on those the heart of our recovery, and who are restoring our ambitions. They include taking forward a feasibility competitiveness and putting the UK at the heart of the study into ownership and financing models for the road global market. We are unashamedly backing business in network; supporting Network Rail to invest a further the Budget by creating the most competitive tax system £130 million in the northern hub rail scheme, and in the world, removing the bureaucratic burdens on providing up to £150 million to projects in core cities, as businesses and investing in infrastructure. well as growing places funding to empower communities and businesses to lead development in their areas. My hon. Friends have already mentioned Various hon. Members asked questions. I single out GlaxoSmithKline. I could add Nissan, Jaguar Land those of the hon. Member for Liverpool, Riverside Rover and Tesco, which have announced that they are (Mrs Ellman), the Chairman of the Select Committee creating thousands of new jobs in the UK. on Transport, to whom my right hon. Friends will be The Government are building a sustainable and happy to write to answer her specific questions. I thank prosperous economy in a recovery that builds on our other colleagues for their contributions. They will appreciate strengths across all regions of the country and all the that I am now rather short of time due to the pressing creativity and productivity of our private sector. We are matters that Opposition Members raised. also putting money in the pockets of low-paid workers. As we invest in our physical infrastructure, it is also As the Chancellor said in his Budget speech, the Opposition important that we invest in our digital infrastructure. borrowed us into trouble, we will earn our way out. That covers matters such as mobile coverage and broadband. It also means pushing such investment into Ordered, That the debate be now adjourned.— cities; some cities will come forward for the super-connected (Mr Dunne.) cities initiative. Debate to be resumed on Monday 26 March. 1129 23 MARCH 2012 Diabetes 1130

Diabetes 40 and 70 years. The south Asian population becomes at risk much earlier, from their mid-20s. Screening must Motion made, and Question proposed, That this House therefore be targeted. do now adjourn.—(Mr Dunne.) It takes something as simple as a regular check to prevent many of diabetes’ most serious complications. 2.29 pm An eye test can prevent blindness, a foot check can prevent amputation, and blood pressure tests can prevent Keith Vaz (Leicester East) (Lab): As always, I begin a stroke and heart disease, yet diabetics are not receiving by declaring my interest as someone who has type 2 the nine health checks that NICE guidelines recommend diabetes, and also as vice-chairman of the all-party they require. It is estimated that 1.3 million sufferers group on diabetes. I have known that I have this illness across the country are failing to receive them. since a chance testing in 2004. It has given me first-hand Type 2 diabetes often goes hand in hand with obesity. experience of the importance of early detection and Some 31% of UK children are now classified as overweight. careful management of the disease. I am delighted to If current trends continue, 60% of men and 50% of see the Minister of State on the Front Bench, and I am women will be clinically obese by 2050. Over the past very pleased to see my hon. Friend the Member for decade, Governments have spent £2 billion tackling Sedgefield (Phil Wilson), who also has type 2 diabetes. obesity levels, but they have failed to fall. Urgent Failure to properly identify and care for sufferers Government action is required, and it should consider comes at a high price. The most devastating costs are seriously the possibility of a fat tax, which has been human. There are 2.8 million people with diabetes in introduced in Denmark, and a soda tax, which is being the United Kingdom. This number is set to more than introduced in France, and make compulsory the double by 2032. That means that 10% of the population introduction of sugar and fat reduction measures by the will be susceptible to devastating complications, which food and drinks industry. include amputation, blindness, heart problems and strokes. I have before the House next month a ten-minute rule There are also the financial costs of the illness. Diabetes Bill, calling for soft drinks companies to reduce the costs the NHS £9 billion per year—about £1 million an amount of sugar that they put into their products, and hour. With the NHS expected to make savings of £20 billion to bear some of the responsibility for the obesity and by 2015, this is an expense that we can ill afford and diabetes crisis by putting some of their profits back into which is only set to increase if drastic action is not prevention and research programmes. That is the sort of taken. action the Government should be taking. The excellent NHS atlas of variations and the national As we have seen today with the Government’s alcohol diabetes audit have shown that there are shocking regional strategy, prevention is better than cure. The Home variations in diabetes care. Some 80% of amputations Affairs Committee in 2008 recommended the introduction due to diabetes can be prevented with the right checks. of a minimum price per unit of alcohol—an end to the The incidence of amputations in a primary care trust is pile-it-high and sell-it-cheap drink deals. In 2011, there indicative of the quality of diabetes management there. were 1.2 million alcohol-related hospital admissions, so In Leicester East, for example, the annual number I welcome what the Government announced this morning of amputations per 1,000 adults with diabetes is and am sorry that I could not be in the Chamber, but 1.4, significantly below the national average of 2.7. the Home Secretary decided to give the House 30 minutes’ However, a sufferer who lives in Swindon is more than notice of her statement and I had a prior engagement at twice as likely to have an amputation. The rate there is Hertfordshire university. I welcome what the Government 4.0 amputations per 1,000 adults with diabetes in the have done, however. It is an example of a Government population. That is significantly above the national taking action to deal with prevention. average. Research has shown that investment in first-class Changes under the Health and Social Care Bill will diabetes services now will lead to huge savings in the mean that more power is devolved to a local level. I am future. Southampton university hospital’s investment in very concerned that this may worsen regional inequalities a multi-disciplinary specialist diabetes team saved it an and I look forward to reassurances from the Minister. estimated £2.2 million over 22 months, but there is not We need rigorous checks and balances in place to only a cost imperative to ensure that such facilities are ensure that there is high-quality diabetes care which available to all diabetics. Last year 24,000 people with meets National Institute for Health and Clinical Excellence the illness died earlier from causes that could have been guidelines across the country. avoided through better management of their condition. So how can we minimise the human and financial Those measures are required to save lives. cost of diabetes? There is no great mystery in how to I am delighted that the European Parliament is taking treat and prevent type 2 diabetes. We do not need to strong action to tackle diabetes, and I hope that the spend millions searching for a cure: 80% of type 2 resolution passed there last week will do much to get diabetes is preventable with the right care and management, Europe moving on the issue. Some of the action that it including lifestyle and exercise. This means that with calls for, such as an EU-wide diabetes strategy, will be the right prevention, the NHS could save up to £720,000 taken up by the European Commission, but much of per hour. The NHS health check programme is a positive the responsibility, particularly for the obesity and diabetes step towards identifying the “missing million” who it is prevention and diabetes management programmes, will estimated have diabetes but simply do not know it. fall on member states, including our own. I should be However, 90.48% of those eligible did not receive a very interested to hear what the Minister has to say health check between April and December 2011. Moreover, about what this Government are going to do as a result the health check is only for those between the ages of of that European Union resolution. 1131 Diabetes23 MARCH 2012 Diabetes 1132

[Keith Vaz] for Leicester. Professor Azhar Farooqi has provided real leadership on this issue. There is also a clutch of Next month in Copenhagen, for the first time in the local distinguished academics, including Professor history of the EU, the EU diabetes leadership forum Khamlesh Khunti and Professor Melanie Davies from will take place during the EU Council presidency of the the university of Leicester. There is also Professor Joan host country. I was delighted to hear that the Minister Davies from De Montfort University, which, under the will be speaking at that convention, sharing good practice dynamic leadership of Professor Dominic Shellard, the and, I hope, encouraging others to act with Britain to vice chancellor, has designed the first artificial pancreas, halt the diabetes tsunami. which was viewed only two weeks ago by Her Majesty Diabetics, in order to manage their condition effectively the Queen. Leicester will soon have its own centre of and to prevent many of the costly and damaging excellence for diabetes—the first. complications that I have discussed, must have access to In recent months diabetes campaigns have achieved the right drugs at the right time, and I have been much success in raising awareness of the issue. I would contacted by pharmacists, patients and many others in like to commend the work of Diabetes UK, led by its the industry who are extremely concerned about widespread chief executive, the noble Baroness Young,and particularly shortages of prescription drugs. The number of prescription her Feet First campaign, in co-operation with the Society medicines officially listed as in shortage on the of Chiropodists and Podiatrists. The all-party group on Pharmaceutical Services Negotiating Committee website diabetes, led ably by my friend, the hon. Member for is only 30, but an investigation by The Times found that Torbay (Mr Sanders), has done excellent work, especially pharmacists were reporting shortages of up to 350 drugs on regional variations in care. I would also like to per day. congratulate the International Diabetes Federation and Eucreas, a diabetes drug, and Travatan, which is used its president, a Brit, Sir Michael Hurst, and vice-president, to treat ocular hypertension and glaucoma, one of its Anne-Marie Felton, for their tireless efforts to raise the complications, are just two examples of many drugs profile of the illness globally and whom we have partly that pharmacists report as being in short supply. A to thank for international successes such as the recent survey of 400 pharmacists for the magazine Chemist EU diabetes resolution. and Druggist found that 67% of pharmacists have to In my constituency, I want to pay tribute to Silver wait for up to three days or more for an emergency Star, a registered diabetes charity that, through its mobile stock delivery, and that 84% are very concerned about units—Merlin, Dorothy and Amanda—in the United patients being adversely affected by shortages. Some Kingdom and in Goa in India, has been able to raise the 18% said that they spend over five hours a week trying awareness of diabetes among the south Asian communities. to get hold of stocks of drugs. The estimated cost for I also want to thank the Minister for the work he has pharmacies across England, according to Lloyds done on diabetes. I think that he has done more than pharmacies, is approximately £39 million lost in staff any other Minister in the 25 years I have been in the time, which could be better spent on patient care and House in trying to raise this issue and deal with the public health interventions. Most worryingly, nearly problem. I thank him most sincerely for what he has 60% of pharmacists think that the situation will worsen done. over the next year, and 45% know a patient whose Diabetes is an epidemic that can have devastating health has suffered due to shortages, sometimes so consequences, and it is on the rise, but we are not badly that they have had to be hospitalised. powerless in the face of it. With the right care and The consensus is that the problem lies not with the proper management, diabetes can be controlled and amount of drugs being manufactured in the United often prevented. Complications and expense can be Kingdom, but the fact that some of the drugs intended minimised. Having the right drugs is as important as for the United Kingdom are being exported abroad for the Government acting quickly to deal with shortages. profit. Medicines in countries such as Germany can We need investment in prevention and in specialist fetch up to four times as much as they do in the United multi-disciplinary teams. We also need firm action to Kingdom. There are other reported problems in the tackle the unhealthy food and drink industries. We must supply chain, including inaccurate quotas and ensure that regional inequalities improve, not worsen, manufacturers trading only with a limited number of under the changes that are being made. If we do that, it wholesalers. will not only save the NHS billions of pounds but, It is imperative that the Minister ensures that there is much more importantly, save thousands of lives. a full and frank exchange of information between chemists, pharmaceutical companies and wholesalers. Pharmaceutical 2.44 pm companies are making enough medicines to supply The Minister of State, Department of Health (Paul demand in the United Kingdom. We need to ensure that Burstow): I congratulate the right hon. Member for they reach those who need them. We need the Government Leicester East (Keith Vaz) on securing this debate and to set out a clear timetable for action to show that they on making such an effective and compelling case for are tackling the issue. It is clear that the guidance raising awareness of diabetes and preventing, postponing published last year was not sufficient to end the shortages. and better managing the condition. I know of his I hope that it will not take the death of a patient to lead personal experience and the leadership that he has to some change. shown in his constituency and in the House on these Before concluding, I want to highlight the important issues over many years. The centre of excellence that he work being done in the city of Leicester. I want to thank talked about is there as a testament to his determination my local GP, who initially diagnosed my diabetes, as I to make this happen, and I pay tribute to him for that. have said, in a chance test in his diabetes awareness He rightly paid tribute to the work of the all-party surgery. He now heads the clinical commissioning group parliamentary group and, in particular, my hon. Friend 1133 Diabetes23 MARCH 2012 Diabetes 1134 the Member for Torbay (Mr Sanders), who has proved The second area is targeted interventions. The right an excellent chair of the group and has done some hon. Gentleman rightly raised the importance of NHS excellent work, as the right hon. Gentleman described. health check and of targeted interventions for high-risk people. We can reduce and even reverse the worst effects The case for action is absolutely compelling. As the of diabetes if we are effective in identifying at an earlier right hon. Gentleman said, the number of people with stage those who are at risk. That is why risk assessment diabetes is rising, with profound effects on their quality and diagnosis are essential to the strategy that has been of life. As he rightly rehearsed, there are huge health in place for some time. It is important to identify more inequalities, for which some of the most deprived and people at an earlier stage and to give them the messages excluded pay the highest price. It is therefore a big and support that can enable them to mitigate the worst responsibility for any Government to tackle these issues. effects of diabetes. The national roll-out of NHS health The costs to our society and to the NHS are substantial. check is a key component in that. We have signalled our We currently have the most accurate picture ever of determination, through the NHS operating framework, the state of diabetes care in England, with the national to ensure that that continues. diabetes audit, the detailed analysis by the national The proactive identification of people who are at risk diabetes information service and the atlas of variation of vascular diseases, including diabetes, is key. The right all serving to expose an unjustifiable variation in the hon. Gentleman mentioned that that covers a population levels of care and treatment from one postcode to of people from 40 to 75 years of age. I can tell him that another—the classic postcode lottery. We now plan to in some parts of the country, high-risk individuals are go further in providing more information than ever being targeted specifically—for example, those in the before by publishing a specific themed atlas on diabetes, south Asian population, where there is a greater risk of which will prove to be an invaluable tool for commissioners type 2 diabetes. We know that the risk in that population and campaigners, and patients and carers, to use to is four or five times greater than that in the European make sure that we get the very best diabetes care in population. That will be reinforced shortly by the guidance every part of England. that the National Institute for Health and Clinical The data show that there has been significant progress, Excellence is finalising on the detection and prevention but, as the right hon. Gentleman says, there are still of diabetes in high-risk individuals. shocking, inexplicable and unjustifiable variations that we have to bear down on. We know what works at three Keith Vaz: Will the Minister write to me, because he levels—population-level interventions, targeted interventions, probably does not have the list with him, to tell me in and what can be done better to manage the condition. what areas people are being targeted below the age Let me go through what we are doing in those contexts. of 40? First, it is vital to raise awareness among the population. The right hon. Gentleman and other hon. Members, the NHS, and other organisations—including, in future, Paul Burstow: I will gladly do that. Public Health England—have an important role in raising Accurate and timely diagnosis is key, but diabetes can overall awareness. Supporting healthy behaviours that be hard to spot and some of its symptoms, such as improve the population’s health is absolutely key to extreme tiredness and weight loss, can be attributed to successful prevention. We need to tackle the main risk other diseases. Again, NICE has produced advice on factors that are particularly relevant to type 2 diabetes. preventing adult pre-diabetes and on early detection. It One of the key strands from the Government’s point is key for GPs and others to be more effective at early of view is the work done through Change4Life, which diagnosis. The national clinical director for diabetes, has a clear focus on maintaining healthy weight and Rowan Hillson, has been supporting that work to raise increasing levels of physical activity, as that is very professional awareness, which is critical. important in addressing obesity. That also requires The third area is long-term management and self-care. much more effective collaborative working between local There has to be a team effort across primary and authorities and the NHS to ensure that we exploit the secondary care, and the patient has to be at its centre. full range of levers that local authorities have in making A person with diabetes must know how to spot and a real difference in those two areas. Our planned health report changes in their health that might result in and wellbeing boards will provide a new and important serious complications with life-changing or even life- lever for driving improvement on the public health side. shortening consequences. Integrated multi-disciplinary The right hon. Gentleman talked about other care is crucial to delivering the best outcomes in diabetes. interventions. We are addressing this through our public I will give a couple of examples that pick up on the health responsibility deal. Some of these issues are not right hon. Gentleman’s references to the scandalous about regulation but getting the relevant industries to picture in respect of amputations in England. He rightly move further and go faster, and that has already borne rehearsed the variations from one part of the country to fruit, not least in reducing trans-fats in products. I appreciate another, which are inexplicable and shocking. On average, his welcome for the comprehensive approach that the 73 amputations take place every week, but eight out of Home Secretary outlined today with regard to reducing 10 of those operations are unnecessary because they alcohol harm—the harm that it does to the individual could be prevented simply by following what we know and the harm that its effects can have on others on our works. It is critical that we get that message out and streets—and the decision to move, after consultation on translate it into practice by clinicians. For example, we the details, towards minimum unit pricing. The right know that when a foot care team is established, which is hon. Gentleman is right that that can have a have a a relatively modest investment, it can cause as much as a profound effect, not just on liver disease, but on many 50% drop in the rate of amputations. Such investments of the other aspects that we are discussing. can release resources. That is why they are part of the 1135 Diabetes23 MARCH 2012 Diabetes 1136

[Paul Burstow] conditions strategy, which the Department is working on in collaboration with many other stakeholders. quality, innovation, productivity and prevention work We also need the system to be supported by incentives and the Nicholson challenge, which the right hon. such as payment by results. That was why we rolled out Gentleman talked about. new tariffs last April to recognise paediatric diabetes There is also room for further progress in the use of care as a discrete specialism, and why we will continue insulin pumps, which are particularly relevant to type 1 to develop tariffs to support best practice. diabetes. They provide for the slow release of insulin. The right hon. Gentleman asked about Eucreas, which The NICE guidance clearly recommends the use of is a glucose-lowering drug. It is composed of two drugs, insulin pumps for type 1 diabetes when daily injections metformin and vildagliptin, and I understand that although are not working, and yet many primary care trusts are there may well be supply problems with the combined dragging their feet and not making pumps available. drug, the industry is not aware of any supply problem That is why we have established the NHS Diabetes with the two separate tablets. I will gladly write to him insulin pump network and why it is oversubscribed for about that in further detail, but that is what I have its first meetings, with more than 270 members. I think learned about that drug so far. that it will prove an invaluable way of beginning to More generally, the Department is working to address drive out unacceptable practices. We are also auditing the issue of parallel exporting of UK medicines in the availability of insulin pumps so that we can identify conjunction with the Medicines and Healthcare products where use is not adopted properly. Regulatory Agency and the pharmaceutical supply chain, to ensure that medicine supplies are not compromised Keith Vaz: I obviously welcome what the Minister and we do not have the tragedies to which the right hon. says about pumps. Will he also deal with the issue of the Gentleman referred. I will write to him about the progress shortage of medicines? of that work. Paul Burstow: I am coming to that almost straight The right hon. Gentleman also asked about Copenhagen. away. I look forward to the opportunity to meet colleagues to share best practice and learn about it from others. I welcome the fact that there will be a type 1 diabetes parliamentary lobby by the Juvenile Diabetes Research As the right hon. Gentleman says, diabetes is a complex, Foundation in the next month or so to highlight some lifelong, progressive condition. When it is well managed, of the relevant issues. with the right education and support, it is possible to prevent the most severe, sometimes fatal complications. Population levels, targeting, and management and We have the data to guide us and the evidence of what self-care are all critical, and I want to say a bit about works, and we have the economic case. We are setting what we are going to make happen. First and foremost, our strategy with the ambition of making even more NHS Diabetes leads on improvements, spreads best progress. Now, we need commissioners and clinicians to practice, supports professionals and develops professional act so that the best is not the exception but the norm networks of the type that I have described. The national across the national health service. service framework for diabetes is reaching the end of its life, and we now need to set new ambitions and new Question put and agreed to. directions towards making the further progress that the debate is highlighting the need for. That will be reflected 2.57 pm in both the new cardiovascular strategy and the long-term House adjourned. 75WS Written Ministerial Statements23 MARCH 2012 Written Ministerial Statements 76WS

Today we are publishing the retail and manufacturing Written Ministerial consultation. This seeks views on the removal of regulations that have been identified under both the retail and Statements manufacturing themes of the red tape challenge process as no longer required. The Government also intend to amend the Pyrotechnic Friday 23 March 2012 Articles (Safety) Regulations 2010. This is to remove heavy-handed intervention to make it possible to lower the age at which Christmas crackers can be brought from 16 to 12. BUSINESS, INNOVATION AND SKILLS Many of the regulations covered by this consultation were introduced to tackle a specific problem relating to National Careers Service and “The Right Advice at the a particular product such as; safety issues arising from Right Time” poorly constructed bunk beds; or customers being mislead through disingenuous pricing. While these regulations may be very effective at stamping out the problem they The Minister for Further Education, Skills and Lifelong were designed to tackle, they are not flexible enough to Learning (Mr John Hayes): In “New Challenges, New deal with new products or practices. Chances”, the Government’s reform plan for Further A new approach has been taken since these regulations Education and Skills published on 1 December 2011, were made, one which seeks to tackle the bigger problems we reinforced the importance of first class advice on facing consumers. The issue of price fixing for example careers and skills to help individuals make informed is dealt with in all its forms and for all sectors of the choices. It is right at the heart of our strategy for economy by the Competition Act 1998, while the General sustainable growth and social renewal. Product Safety Regulations 2005 protect consumers That is why, on 5 April 2012, I will be launching the from products which are unsuitable for use whatever National Careers Service. This major new service will their purpose and whatever danger they pose, provided ensure that accurate information and professional advice the supporting European standards offer an acceptable about learning and work is available to all. level of safety protection. Alongside the launch of the National Careers Service, A full list of the regulations to be amended and I will be publishing a document called “The Right revoked are as follows: Advice at the Right Time” bringing together in one Pyrotechnic Articles (Safety) Regulations 2010 (SI 2010/1554); place all that the Government and their partners are Bunk Beds (Entrapment Hazards) (Safety) Regulations 1987 doing to ensure young people and adults get the advice (SI 1987/1337); they need on learning and work. We are now entering a Children’s Clothing (Hood Cords) Regulations 1976 (SI 1976/2); new phase, where high quality, high status careers advice Imitation Dummies (Safety) Regulations 1993 (SI 1993/2923); services should be readily available. Pencils and Graphic Instruments (Safety) Regulations 1998 I believe passionately in the power of careers guidance (SI 1998/2406); to transform lives. We have debated these plans on a Wheeled Child Conveyances (Safety) Regulations 1997 (SI 1997/ number of occasions, including during the passage of 2866); the Education Bill. Throughout, the passion and Gas cooking Appliances (Safety) Regulations 1989 (SI 1989/149); commitment of my parliamentary colleagues to getting Heating Appliances (Fireguards) Regulations 1991 (SI 1991/ the best for young people and adults has shone through. 2693); I will be pleased therefore to make sure that copies of Gas Catalytic Heaters (Safety) Regulations 1984 (SI 1984/1802); “The Right Advice at the Right Time” are made available All-Terrain Motor Vehicle (Safety) Regulations 1989 (SI 1989/ to colleagues in the Libraries in both Houses. 2288); Cooking Utensils (Safety) Regulations 1972 (SI 1972/1957); Retail and Manufacturing Consultation Indication of Prices (Beds) Order 1978 (SI 1978/1716); Child Resistant Packaging and Tactile Danger Warning (Safety) (Revocation) Regulations 1992, already revoked, The Parliamentary Under-Secretary of State for Business, (SI 1992/2620); Innovation and Skills (Norman Lamb): The red tape Stands for Carry-cots (Safety) (Revocation) Regulations 1996, challenge is playing a key role in reducing the burden of already revoked, (SI 1996/2756); regulation that stifles growth. Unnecessary regulation Magnetic Toys (Safety) (Revocation) Regulations 2009, already has to be removed leaving only regulation that is necessary revoked, (SI 2009/1347). to safeguard the rights of consumers and employees. The removal of these regulations will not reduce The retail theme was the first to go live on the red consumer protections but will increase clarity and simplify tape challenge website and received almost 9,000 comments. the law for business and consumers. The Minister of State, Department for Business, Innovation The consultation will stay open for eight weeks and and Skills, the Minister with responsibility for business close on Wednesday 23 May. This shorter period reflects and enterprise, my hon. Friend the Member for Hertford the consultation that has already taken place through and Stortford (Mr Prisk), announced on 28 July 2011 the red tape challenge website and the deregulatory the range of retail regulations that the Government nature of these regulations. Direct contact will be made wished to scrap, simplify and abolish. Similarly, the with consumer rights groups and business representative manufacturing theme considered 128 regulations and groups to ensure sufficient opportunity is provided to seeks to scrap 47% of these. consider the implications of the removal of these regulations. 77WS Written Ministerial Statements23 MARCH 2012 Written Ministerial Statements 78WS

TREASURY taken to bring an end to the situation of excessive Government deficit in Hungary. This was agreed by Ministers. ECOFIN (13 March 2012) Any Other Business: Informal ECOFIN The presidency looked forward to the forthcoming informal ECOFIN in Copenhagen on the 30 and 31 March The Financial Secretary to the Treasury (Mr Mark and set out some possible items for discussion, including Hoban): The Economic and Financial Affairs Council the relationship and co-operation between the euro area was held in Brussels on 13 March 2012. Ministers and the EU as a whole. discussed the following items: Any Other Business: Discharge Procedure Financial Transaction Tax (FTT)—State of Play The presidency debriefed the Council on the presentation The presidency presented a state of play note that to the Parliament on the 28 February of the Council’s listed a number of open issues that remained with the recommendations on the discharge for the 2010 budget. FTT proposals following the completion of the first Eurogroup debrief technical reading. Ministers discussed these issues and agreed that more technical work and supplementary Ministers were debriefed over breakfast on the Eurogroup analysis by the Commission, including looking at possible meeting of 12 March which had discussed the economic alternatives, was necessary ahead of an orientation situation and the progress on deficit and debt sustainability debate later in the Danish presidency. I reiterated that efforts being made by a number of euro area member the UK position of opposition to the Commission states. Informal consultations had also taken place over proposals for an FTT remained unchanged. appointments to the European Central Bank board, head of the Eurogroup and head of the European stability Reinforcing and Deepening fiscal surveillance on Greece mechanism (ESM). The presidency introduced a recommendation for a European Bank for Reconstruction and Development Council decision addressed to Greece with a view to (EBRD) President reinforcing and deepening fiscal surveillance and giving notice to Greece to take further measures judged necessary Ministers discussed the forthcoming election of a to remedy their excessive deficit. This recommendation new president for the EBRD. Two candidates had already was adopted by the Council. been nominated, including the incumbent, and in the course of the discussion Poland confirmed they would Alert Mechanism Report be putting forward a candidate. I also informed ECOFIN Ministers agreed Council conclusions on the Alert that the UK would be putting a candidate forward. The Mechanism Report. The Alert Mechanism Report is Chancellor has since nominated Sir Suma Chakrabarti part of the new macro-economic imbalances procedure. as the UK candidate. The Commission will now begin finalising the in-depth reviews for those countries flagged as potentially being at risk of having or developing imbalances. COMMUNITIES AND LOCAL GOVERNMENT Follow-up to the European Council Meeting of 1-2 March 2012 The presidency briefly reminded Ministers of the Disabled Facilities Grant Funding March European Council conclusions and stressed the importance of translating those conclusions into action ahead of the June European Council. The Minister for Housing and Local Government (Grant Shapps): Today the Department for Communities and Read Out from G20 Meeting of Finance Ministers and Local Government is announcing the local authority Governors (Mexico 25-26 February 2012) allocations for the disabled facilities grant programme The presidency briefly summarised the discussions at in England, making available £180 million in 2012-13. the G20 Finance Ministers’ meeting. The Commission An additional £228,750 will be paid to local authorities noted that there seemed to be moderate optimism on that have funded adaptations for ex-service personnel in the euro area position, although significant challenges 2011-12, to enable them to live independently at home remain. The Commission and European Central Bank with dignity and respect. This recognises Government’s also noted the importance of agreeing on reinforcement commitment to helping service personnel gain the housing of euro area firewalls. they deserve. Implementation of the Stability and Growth Pact (Hungary) Local authorities are being informed of their individual The Commission presented a proposal to suspend allocations. Details of the amount awarded to each ¤495 million of cohesion fund (CF) commitments to authority will be available on the Department for Hungary in 2013, following the Council decision on Communities and Local Government website and a 24 January that Hungary has not taken effective action table detailing the funds provided to individual authorities to sustainably correct its excessive Government deficit. has been placed in the Library of the House. After an extended discussion between Ministers, the The disabled facilities grant programme has been proposal was adopted by the Council. Hungary was protected. By the end of the spending review period the willing to accept the decision in the light of a statement national disabled facilities grant budget will increase in the minutes of the meeting making clear that Council from £169 million in 2010-11 to £185 million in 2014-15. would return to the matter at its meeting on 22 June, In January we announced an additional £20 million with a view to lifting the suspension if Hungary undertakes DFG funding, bringing the total this year up to the necessary corrective measures. The Commission £200 million, delivering a total investment of £745 million also presented a recommendation on measures to be over the SR period. 79WS Written Ministerial Statements23 MARCH 2012 Written Ministerial Statements 80WS

The programme helps disabled people to live as On 6 March, five soldiers from the 3rd Battalion the comfortably and independently as possible in their own Yorkshire Regiment and one from the 1st Battalion The homes through the provision of adaptations. Entitlement Duke of Lancaster’s Regiment were killed when their to a disabled facilities grant is mandatory for eligible Warrior Armoured Fighting Vehicle was struck by an disabled people and the grant provides financial assistance explosion. The Prime Minister expressed deep sadness for the provision of a wide range of housing adaptations at their deaths and said that it stood as a reminder of ranging from stair lifts, level-access showers and home the huge sacrifice that our troops have made, and continue extensions. The programme is therefore key in delivering to make, for the work we are doing in Afghanistan. This the Government’s objective of providing increased levels incident will be reported, in full, in March’s statement. of care and support to both disabled and vulnerable people to help them live independently in their own On 21 February, religious materials, including copies homes. of the Qur’an, were mistakenly disposed of by US service personnel by burning at Bagram Airfield. This The Department for Communities and Local sparked a mass demonstration at the facility. In the Government wrote to all local authorities in January following days protests spread to over 40 locations 2011 to announce a small change to the disabled facilities across Afghanistan. It remains unclear whether the grant allocation methodology, with part of the allocation incident will have any lasting repercussions. In the short being distributed using a relative needs weighted index. term at least it has damaged Afghans’ perception of We are making £180 million available in 2012-13, the ISAF forces. same as the main allocation in 2011-12, and as a result, all local authorities will receive the same individual NATO Defence Ministers met in Brussels on allocations as they did in 2011-12. 2-3 February. NATO members restated their commitment Government have also invested £1.5 million in the to Afghanistan. The Secretary-General reaffirmed that FirstStop information and advice service which aims to the decisions made at the Lisbon summit will remain help older and vulnerable people make informed decisions the bedrock of the ISAF strategy. Importantly this about their housing, care and support options and to strategy will see ISAF forces remain in Afghanistan, in help them maintain independent living in later life. In a combat role, until the transition process completes at addition, the Government provided £51 million funding the end of 2014. for handypersons schemes over the spending review period to deliver small home repairs and adaptations. Despite these events, the UK continues to work with the Afghan Government and their people to ensure that local communities benefit from better public services, Traveller Site Provision including justice, healthcare, education and roads. In his written ministerial statement of 9 November 2009, Official Report, column 5WS, the then Secretary The Parliamentary Under-Secretary of State for of State for Defence set out the UK policy on the Communities and Local Government (Robert Neill): The detention and transfer of persons captured by UK Government are today publishing their new planning forces in Afghanistan. We are currently reviewing that policy for Traveller site provision following a consultation policy, in the light of operational security requirements initiated last year. and the US-Afghan memorandum of understanding on The summary of consultation responses and the final detention arrangements signed earlier this month. Pending planning policy document will be placed in the Library the results of this review, the UK is additionally and of the House. exceptionally holding two individuals whose continued detention we judge necessary, for force protection purposes, rather than to gain further intelligence.

FOREIGN AND COMMONWEALTH OFFICE We welcome the recent steps taken by the Governments of Afghanistan and Pakistan to enhance their relationship. Pakistani Foreign Minister Hina Rabbani Khar visited Afghanistan Monthly Progress Report Kabul on 1 February Prime Minister Gilani published a statement on 24 February which supported an inclusive Afghan led peace process. It called on the Taliban The Secretary of State for Foreign and Commonwealth leadership and other insurgency groups to participate in Affairs (Mr William Hague): I wish to inform the House a national reconciliation process. Hina Rabbani Khar that the Foreign and Commonwealth Office, together visited London on 21 February. I and the International with the Ministry of Defence and the Department for Development Secretary had productive and substantive International Development, is today publishing the fifteenth discussions with her on the enhanced strategic dialogue progress report on developments in Afghanistan since and other matters. These discussions included UK-Pakistan November 2010. relations, Afghanistan and the importance of regional stability. Both Afghanistan and Pakistan recognise that On 11 March a US soldier killed and injured a large their long-term prosperity and security depend on number of Afghan civilians in their homes. We send our maintaining strong and positive relations with each deepest condolences to the victims and their families other. and we support the investigation into the attack. As General Allen, Commander ISAF,has stated this incident I am placing the report in the Library of the House. in no way represents the values of the International It will also be published on the Foreign and Commonwealth Security Assistance Force (ISAF) and coalition troops Office website (www.fco.gov.uk). or the abiding respect we feel for the Afghan people. 81WS Written Ministerial Statements23 MARCH 2012 Written Ministerial Statements 82WS

HEALTH The quality of the bids for the Better Bus Area Fund and Green Bus Fund have been excellent and I am pleased to report that because of the prudent financial Abortion Act 1967 management of the Department’s funds by the Secretary of State and her ministerial team, I have been able to increase the allocations previously announced, from The Secretary of State for Health (Mr Andrew Lansley): £20 million to £31 million in respect of the Green Bus There have recently been a number of serious allegations Fund, and from £50 million to £70 million in respect of involving potential breaches of the Abortion Act 1967. the Better Bus Area Fund. The Metropolitan Police, Greater Manchester Police and the West Midlands Police, the Care Quality Projects under these two funds will help drive forward Commission (CQC), the General Medical Council (GMC) our bus travel in England, helping buy, amongst other and the Nursing and Midwifery Council (NMC) are things: investigating the allegations into sex-selection at a number 439 low-carbon buses to forge the future of the low-carbon economy (we expect the majority of these to be manufactured of abortion services. The chief medical officer has written in the UK); to all abortion providers reminding them of their duties the development of hop-on hop-off multi-operator tickets under the Abortion Act. The GMC interim orders that put spontaneity back into the hands of the passenger; panel has suspended or placed restrictions on the three real time information for bus passengers and for bus operators doctors named in the press reports. Decisions on the to cut down waiting time and prevent buses bunching up. No registration and approval of the clinics are awaiting the more waiting for a bus and then three come along at once; investigations by the CQC and Department of Health smarter traffic lights that recognise buses and give them officials into compliance with the Act and registration priority with barely an impact on other traffic. requirements. Twenty-four lead local transport authorities across Registration inspections by CQC in February also England will benefit from the £70m Better Bus Area identified cases where doctors had signed the required Fund, right across the country. Five local transport certificate of the ground for the abortion (HSA1 forms) authorities and 26 bus companies have been awarded before the woman had been seen in the clinic. The Act £31 million of Green Bus funding. requires two doctors to certify that at least one (and the Together this package will encourage people onto the same) ground for abortion exists in relation to a specific bus, cutting congestion, promoting a low-carbon transport woman. The pre-signing of these forms is potentially a infrastructure and encouraging growth. criminal offence and is being investigated by the CQC Documents listing the successful bidders under each and the police and may lead to further referrals to the competition have been placed in the Libraries of both GMCorNMC. Houses, and are being published on the DFT website. In the light of the serious nature of these allegations, I will be in a position to make a further statement on CQC are this week conducting a series of unannounced bus subsidy reform in the near future. inspections of all abortion providers. Any evidence of failure to comply with the Act and registration requirements will be investigated by CQC, the police and other regulatory WORK AND PENSIONS bodies. I will consider withdrawing an independent abortion provider’s approval to conduct abortions if the Automatic Enrolment Timetable requirements of the Act are not being met. Any provider’s registration to carry out termination of pregnancy may The Minister of State, Department for Work and also be suspended or cancelled by the CQC. I will Pensions (Steve Webb): On 25 January we issued details provide further final details of actions taken when the of the revised implementation timetable, reaffirming initial investigations are complete. our commitment that automatic enrolment will start on In addition, my officials will work with the CQC and time, from October 2012, and will apply to all employers. other regulatory bodies to examine compliance with the We also said that we would publish a consultation Act and relevant statutory and professional requirements document setting out the full detail of these changes, in order to inform the planned revision of the Procedures along with draft regulations and an impact assessment. for the Approval of Independent Abortion Providers These documents will be published later today. The for consultation later this year. consultation will close on 4 May.

Discretionary Social Fund Scheme TRANSPORT The Minister of State, Department for Work and Additional Funding for Buses Pensions (Steve Webb): Last year I announced measures to manage crisis loan demand back towards pre-2006 levels, prior to reform of the discretionary elements of The Parliamentary Under-Secretary of State for Transport the Social Fund. (Norman Baker): I am today announcing the winning From April 2013 the existing crisis loans scheme will bidders for the Better Bus Area and Green Bus Fund be abolished and replaced in part by new local provision competitions, which we launched before Christmas 2011. by local authorities in England and the devolved Taken together, this significant investment will get Administrations in Scotland and Wales. more people on buses, and so aid the Department’s While the April 2011 measures have made a considerable overarching objectives of helping to create growth and contribution towards managing demand, further measures cut carbon. are required prior to the transfer of funding for the new 83WS Written Ministerial Statements23 MARCH 2012 Written Ministerial Statements 84WS local provision. I am therefore announcing two further A person who faces other situations in which their normal changes to the crisis loan system. income has been lost, stolen or is otherwise not available. From 9 April 2012: A person who does not have to maintain their own For non-householders facing an emergency or disaster situation, dwelling because they are living in the dwelling of the maximum crisis loan award in relation to living expenses someone else (who is liable for costs such as housing will be based upon 30% of the appropriate benefit personal costs, council tax and mains fuel) does not need the allowance rate, rather than the current rate of 60%. Householders same level of crisis loan award to mitigate a serious risk and people without accommodation will continue to receive to their health or safety. maximum awards based upon 60% of the appropriate benefit personal allowance rate. The maximum living expenses award in an emergency Crisis loans awarded to alleviate hardship because child tax or disaster for a person who is without any type of credits have not been received will be treated as alignment accommodation will continue to be based upon 60% of payments. This means that they will be exempt from the cap the appropriate benefit personal allowance rate to take that restricts crisis loan living expense awards to 3 in a account of their special needs. 12-month rolling period. (Alignment payments will be replaced by short-term advances from April 2013 and will continue to These changes do not alter the requirement of the be administered by DWP). Department to consider an applicant’s need for an Crisis loans for living expenses are awarded for two award, whether or not they are a householder. main reasons. To help: Copies of the amended Secretary of State “Directions A benefit claimant to bridge an income gap before their first and the Equality Impact Assessment” will be placed in full benefit or wages are paid; or the House Library later today.

15P Petitions23 MARCH 2012 Petitions 16P

Provision to schools within the Borough of Darlington Petitions continues to be provided for children starting secondary school from 2013 onwards. Friday 23 March 2012 And the Petitioners remain, etc.—[Presented by Phil Wilson, Official Report, 1 February 2012; Vol. 539, OBSERVATIONS c. 953.] [P001002] Observations from the Secretary of State for Education: EDUCATION Local authorities have to make difficult decisions to School Transport (Darlington and Sedgefield) ensure that we address the economic challenges facing the country.To support children from low-income families, The Petition of residents of the Borough of Darlington, the Secretary of State for Education committed £85 million Declares that the Petitioners believe that Associated for the financial years 2011-12 and 2012-13 to extend Transport Provision to schools within the borough should free school travel for pupils entitled to free school meals continue to be provided for children starting secondary or whose parents are in receipt of maximum working school from 2013 onwards, as while the Petitioners tax credit. understand the financial constraints facing Darlington I note that Darlington Borough Council is considering Borough Council, the Petitioners believe that ending altering its transport policy from 2013 onwards, only the service will be detrimental to children, families and providing free transport to those statutorily entitled. local communities. Previously the local authority has provided Associated The Petitioners therefore request that the House of Transport (discretionary transport) to pupils living further Commons urges the Government to work with Darlington away from the school than two miles, regardless of Borough Council to ensure that Associated Transport whether the school is their nearest school. Provision to schools within the Borough of Darlington With the exception of children from low-income families, continues to be provided for children starting secondary the courts have held that local authorities do not have a school from 2013 onwards. duty to provide free school transport for children whose And the Petitioners remain, etc.—[Presented by parents have chosen to send them to a school other than Mrs Jenny Chapman, Official Report, 1 February 2012; the nearest suitable one; even if it is beyond statutory Vol. 539, c. 954.] walking distance. [P001000] On securing a place at a school, admission authorities The Petition of residents of the Borough of Darlington, must explain clearly whether or not school transport Declares that the Petitioners believe that Associated will be available and, if so, to which schools and at what Transport Provision to schools within the borough should cost (if any). Information about school travel and transport continue to be provided for children starting secondary options available to parents must be set out in the school from 2013 onwards, as while the Petitioners authority’s composite prospectus. understand the financial constraints facing Darlington I am working with local authorities, schools, young Borough Council, the Petitioners believe that ending people and the transport sector to ensure that we have a the service will be detrimental to children, families and transport system that provides parents with the confidence local communities. that their children can get to their school or college in a The Petitioners therefore request that the House of safe, affordable and sustainable manner. This is a complex Commons urges the Government to work with Darlington area and I will make more details available in due Borough Council to ensure that Associated Transport course.

889W Written Answers23 MARCH 2012 Written Answers 890W Written Answers to Higher Education

Questions Shabana Mahmood: To ask the Secretary of State for Business, Innovation and Skills how many applications Friday 23 March 2012 his Department has received from (a) private providers and (b) not-for-profit (non-HEFCE funded) providers to designate courses as eligible for student support. [101565] ATTORNEY-GENERAL Mr Willetts: Between May 2010 and the end of Serious Organised Crime and Police Act 2005 February 2012 the Department for Business, Innovation and Skills received a total of 689 applications for courses to be specifically designated for student support purposes. Mr Dodds: To ask the Attorney-General how many The Department does not hold comprehensive information cases have been prosecuted where evidence was on whether higher education providers applying for presented by an assisting offender as defined in the specific designation of courses are classed as private or Serious Organised Crime and Police Act 2005 in the not-for-profit institutions. last five years. [97102]

The Solicitor-General: In the past five years the SFO Higher Education: Admissions has dealt with six cases involving nine assisting offenders (as defined in the Serious Organised Crime and Police Act 2005) who presented evidence. Damian Hinds: To ask the Secretary of State for Business, Innovation and Skills what proportion of (a) The Crown Prosecution Service (CPS) maintains applicants to and (b) places offered at (i) Oxford information on the number of agreements made under and Cambridge universities, (ii) all Russell Group the Serious Organised Crime and Police Act 2005 (SOCPA). universities and (iii) non-Russell Group universities No specific information is held on the number of cases were for pupils from (A) maintained schools and (B) where evidence was presented by an assisting offender. private schools in the most recent year for which data However, the most recent data in respect of the number are available. [99745] of agreements to provide immunity or seek a reduced sentence was contained in an answer I gave to a parliamentary question from my right hon. Friend the Mr Willetts: The information has been provided by Member for Haltemprice and Howden (Mr Davis) on the Universities and Colleges Admissions Service (UCAS) 7 July 2011, Official Report, column 1305W.CPS will be and is given in the following tables: updating this information on an annual basis. UK applicants1 to full-time undergraduate courses aged 17 to 19: 2011 end of cycle figures2 Percentage of UK applicants aged 17-19 who were from: BUSINESS, INNOVATION AND SKILLS State funded FE, Climate Change schools tertiary, and sixth specialist Independent form and HE David T. C. Davies: To ask the Secretary of State for Institution group: schools3 centres3 colleges3 Total Business, Innovation and Skills pursuant to the answer of 21 February 2012, Official Report, columns 753-4W, Oxbridge 34.9 60.1 5.0 100.0 on climate change, on what page of the website referred Russell Group 17.0 69.6 13.5 100.0 to the information sought is provided. [101777] (including Oxbridge) Norman Lamb: As stated in my previous answer to Non-Russell 9.1 67.6 23.3 100.0 Group my hon. Friend, the Met Office global average temperature record, produced in collaboration with the Climate Research Unit at the University of East Anglia, is publicly available at the following page on the Met Percentage of UK applicants aged 17 to 19 who Office website: received offers and who were from: http://www.metoffice.gov.uk/research/monitoring/climate/ State- surface-temperature funded FE, schools tertiary, This includes a table showing average global temperatures and sixth specialist for the past 25 years, expressed as anomalies relative to Independent form and HE the average for the period 1961-90. Institution group: schools3 centres3 colleges3 Total

The table has been updated to include results from Oxbridge 40.1 56.7 3.2 100.0 the latest version of the underpinning dataset, called Russell Group 20.5 70.5 9.0 100.0 HadCRUT4, which will be publicly available online in (including the coming days. Oxbridge) 891W Written Answers23 MARCH 2012 Written Answers 892W

The Department joined the Pan Government contract Percentage of UK applicants aged 17 to 19 who received offers and who were from: with Capita Resourcing Ltd in December 2011 and to State- date have engaged only four interims through this contract. funded FE, Two of these interims started in the Core Department schools tertiary, in February 2012 and two start in March 2012, currently and sixth specialist none of the four are planned to be in post for 12 months Independent form and HE and all four are full-time. Institution group: schools3 centres3 colleges3 Total On the basis of the most recent (early February 2012) Non-Russell 9.1 68.8 22.1 100.0 figures available for the Department’s Partner Organisations, Group which will be subject to some inevitable fluctuations, 11 1An applicant is counted as someone who has made at least one interims were engaged through Penna Consulting, all of application to the institutional group. Each applicant can submit up to five applications (or four if they are applying to medical, dentistry these had been in post for over a year and 10 worked of veterinary science courses). An applicant can therefore be full-time. There were 13 interims engaged through Reed recorded in more than one of the institutional groupings in the table. Personnel Services within the Department’s Partner Applicants applying to undergraduate courses at Oxbridge who do Organisations, three had been in post for more than a not already hold a degree qualification, can apply either to Oxford year and all worked full-time. On the basis of these or Cambridge, they cannot apply to both. figures, we understand that no interims have been engaged 2 The figures cover applications made during the UCAS Main scheme (i.e. up until 30 June). It excludes applicants via Extra, through Capita Resourcing Ltd within any of the clearing and direct entrances. Department’s Partner Organisations. 3 The standard UCAS establishment types have been grouped to construct these categories: “Independent schools” is as per the standard UCAS group of Independent schools; “State funded schools and sixth form centres” includes the standard groupings of CABINET OFFICE Grammar, State (excluding grammar), and Sixth Form College; “FE, tertiary, specialist and HE colleges” includes applicants Catering applying from these establishments, plus those applying directly as individuals (i.e. not through an educational centre), although within this age band for UK applicants, these numbers are small. Jon Trickett: To ask the Minister for the Cabinet Note: Office how much his Department spent on Due to rounding, percentages may not sum to totals. complimentary refreshments for (a) staff and (b) visitors in the latest period for which figures are Shabana Mahmood: To ask the Secretary of State for available. [101439] Business, Innovation and Skills how many applications for designated courses were granted in (a) 2008-09, (b) Mr Maude: As part of my Department’s transparency 2009-10, (c) 2010-11 and (d) 2011-12; and how many programme monthly information on expenditure is he expects to be granted in (i) 2012-13 and (ii) 2013-14. published on: [101564] www.data.gov.uk Mr Willetts: The following table shows the number of Flowers applications for designated courses which were granted in 2009-10, 2010-11 and 2011-12. The information for Jon Trickett: To ask the Minister for the Cabinet 2008-09 is not available. The Department has not made Office how much his Department spent on (a) cut an estimate of the number of courses that it expects to flowers and (b) pot plants between May 2010 and designate in 2012-13 and 2013-14. February 2012. [101424]

Number of applications for specific designation granted Mr Maude: On rare occasions, officials may purchase flowers for specific purposes, e.g. events, functions, but 2009-10 157 there are strict guidelines in place determining such 2010-11 228 transactions. Details of expenditure can be provided 2011-121 395 only at disproportionate cost. 1 Includes data to end of February 2012 only. As part of my Department’s transparency programme Manpower information on expenditure is published on: http://data.gov.uk Stephen Barclay: To ask the Secretary of State for Harassment Business, Innovation and Skills how many people were employed in interim posts by (a) his Department and (b) a Non-Ministerial Department or arm’s length Mr Watson: To ask the Minister for the Cabinet body controlled by his Department, through (i) Penna Office how many (a) bullying and (b) sexual Consulting, (ii) Reed Personnel Services and (iii) harassment complaints have been reported against (i) Capita Resourcing Ltd (trading as Veredus) at the director-level employees or above and (ii) special latest date for which figures are available; and how advisers in his Department in each quarter since 1 many such people (A) had been in post for over a year January 2010. [101714] and (B) worked full-time at that date. [101587] Mr Maude: There are no such cases involving special Norman Lamb: As at 21 March 2012, no interims advisers. were engaged through Penna Consulting or Reed Personnel The number of formal complaints relating to cases of Services within the Core Department for Business, bullying in the period in question were under five, and Innovation and Skills. disclosing the details would risk revealing sensitive personal 893W Written Answers23 MARCH 2012 Written Answers 894W data that relates to individual members of staff. Any should ensure that they always make efficient and cost- complaints are dealt with in accordance with the effective travel arrangements. Before the shared ministerial Department’s policies and procedures. car was available, costs for travel for official business in There are no reported cases regarding sexual harassment. the financial year up to March 2011 were £7,765.25 and the current financial year £2,920.01. Lost Property Police: Private Sector Dr Whiteford: To ask the Minister for the Cabinet Office (1) what property has been lost or stolen from Mr Ainsworth: To ask the Minister for the Cabinet the Deputy Prime Minister’s Office in the last Office whether the Business Partnering for Police 12 months; and what the estimated cost was of Project has been scrutinised by the Major Projects replacement of such property; [100914] Authority; and if he will make a statement. [101584] (2) what property has been lost or stolen from the Mr Maude: The Business Partnering for Police Prime Minister’s Office in the last 12 months; and what programme is owned by West Midlands and Surrey the estimated cost was of replacement of such police and their respective police authorities. It is therefore property. [100916] not included on the Government’s Major Projects Portfolio (GMPP) which, in fulfilment of a prime ministerial Mr Maude: The Prime Minister and Deputy Prime mandate, is made up of the circa 200 highest priority Minister’s Offices are an integral part of the Cabinet programmes and projects within central Government, Office. and is the driver for the work of the Major Projects There was one item reported stolen in the last 12 months, Authority (MPA). and the replacement cost was £506.75. Although there is no mandate for scrutiny of projects Mass Media outside of those that report on the GMPP, the MPA can share best practice with all projects across the public sector through parent Departments on request, Dr Whiteford: To ask the Minister for the Cabinet and the MPA has engaged with the relevant police Office (1) what media monitoring services the Deputy authorities, through the Home Office, on this basis. Prime Minister’s Office has purchased in each of the last five years; [100913] Work Experience (2) what media monitoring services the Prime Minister’s Office has purchased in each of the last five Chi Onwurah: To ask the Minister for the years. [100915] Cabinet Office pursuant to the answer of 5 May 2011, Official Report, column 872W, on departmental work Mr Maude: During the last five years the Cabinet experience, how many people (a) worked as an intern, Office, including the Prime Minister’s Office and Deputy (b) undertook a work experience placement and Prime Minister’s Office, have used the Media Monitoring (c) worked as a volunteer in his Department in Unit (MMU) within COI and subscribed to a press accordance with the hiring criteria set out in that cuttings service. answer in the last 12 months for which data are available; and how many such people were employed Ministers’ Private Offices: Minister without Portfolio other than according to those criteria. [100738]

Mr Kevan Jones: To ask the Minister for the Cabinet Mr Maude: Prior to April 2011 there was no formal Office what the cost was of the private office of the internship programme and available placements were Minister without Portfolio since May 2010. [100722] not advertised centrally or transparently. Since 1 April 2011, the Cabinet Office has provided 23 work experience Mr Maude: The Minister without Portfolio, Baroness placements to support the efforts to enhance the Warsi, is an unpaid Cabinet Minister. As a full member employability of young people between the ages of of Cabinet she is supported by a small private office 18 to 24 who are receiving job seeker’s allowance. We within the Cabinet Office. Given the small number of also provided four placements as part of the Whitehall staff working in the office, publication of the pay bill Social Mobility Internship programme aimed at costs for these staff, who are not senior civil servants, year 12 college-level students from under-represented may lead to identification of their individual salaries backgrounds. In addition, the Department offered 31 paid and therefore for reasons of privacy, cannot be disclosed. internships. The Cabinet Office does not offer opportunities to Official Cars: Minister without Portfolio volunteer in the Department. Mr Kevan Jones: To ask the Minister for the Cabinet Office what the cost to the public purse was of drivers for the Minister without Portfolio since May 2010. DEFENCE [100723] Major Projects Review Board Mr Maude: No Cabinet Office Ministers have an allocated Government Car Despatch Agency (GCDA) Mr Jim Murphy: To ask the Secretary of State for ministerial car. Ministers may use the shared GCDA Defence how many projects have been cancelled as a pool car on official business when it is available. In line result of the findings of the Major Projects Review with the Ministerial Code published in May 2010, Ministers Board. [101153] 895W Written Answers23 MARCH 2012 Written Answers 896W

Peter Luff: No projects have been cancelled as a Mr Jim Cunningham: To ask the Deputy Prime result of the findings of the Major Project Review Minister what recent representations he has received on Board. individual electoral registration. [101080]

Mr Jim Murphy: To ask the Secretary of State for Mr Harper: Ministers and officials continue to engage Defence how many projects the Major Projects Review with a range of groups and members of the public on Board has identified as having a budgetary problem. individual electoral registration. [101155] Mr Jim Cunningham: To ask the Deputy Prime Peter Luff: None of the projects reviewed by the Minister what assessment he has made of the likely Major Projects Review Board has a current budgetary effect of his proposals on individual electoral problem. registration on geographical variation in the completeness of the electoral register. [101081] Mr Jim Murphy: To ask the Secretary of State for Defence how many times the Major Projects Review Board has met since it came into being. [101174] Mr Harper: We have made no such specific assessment. The Government are committed to ensuring that as Peter Luff: The Major Projects Review Board has many eligible people as possible are registered to vote met three times since its inception in 2011. and are taking steps to stop people ‘dropping off’ the register, as well as looking at ways we can increase registration levels as part of the transition to individual electoral registration (IER). DEPUTY PRIME MINISTER We have welcomed the Political and Constitutional Reform Committee’s report on the Government’s proposals Elections: Fraud for IER and we are minded to put in place more safeguards to assure the completeness of the electoral register by changing our plans for the transition. Mr Jim Cunningham: To ask the Deputy Prime Minister what assessment he has made of the likely We will also track the completeness and accuracy of effect on levels of electoral fraud of his proposals to the electoral register before and after the move to IER. bring forward the annual canvass in autumn 2012. Research is also being conducted into currently under [101072] registered groups to identify ways of increasing electoral registration. Mr Harper: The Government take electoral fraud very seriously and the integrity of the ballot is a high priority. That is one of the reasons why, following a recommendation by the Electoral Commission, the EDUCATION Government directed that the annual canvass should be brought forward in those areas which will be holding Departmental Drinks elections for police and crime commissioners. An earlier canvass will result in a more accurate register being in place before the poll. It will thereby reduce the potential Fabian Hamilton: To ask the Secretary of State for for anyone seeking to commit fraud by misusing polling Education how much (a) his Department and (b) its cards that would otherwise be sent to named people public bodies have spent on (i) wine, (ii) other alcoholic that no longer reside at an address. refreshments and (iii) bottled water since May 2010. [92662] Electoral Register Tim Loughton: The Department does not hold Mr Jim Cunningham: To ask the Deputy Prime information centrally that would enable the identification Minister what plans he has to introduce civil penalties of expenditure on these specific items and it could be for those failing to respond to the request to complete obtained only at disproportionate cost. an individual electoral registration form. [101070] Since May 2010, Private Office records indicate that £540 has been spent on alcohol, mostly wine. Ministers Mr Harper: The Government are considering the occasionally provide alcohol at their personal expense. merits of introducing a civil penalty for a non response to an invitation to register and we will announce our GCSE: Bracknell decision when we bring forward legislation.

Mr Jim Cunningham: To ask the Deputy Prime Dr Phillip Lee: To ask the Secretary of State for Minister whether he plans to consult on introducing Education how many students in Bracknell civil penalties for those failing to respond to the request constituency achieved A* to C grades in GCSE (a) of an electoral registration officer to register to vote. biology, (b) chemistry, (c) mathematics, (d) physics [101071] and (e) combined sciences in each of the last three years. [100774] Mr Harper: Officials are consulting with a wide range of groups over the merits of introducing a civil penalty Mr Gibb: The information requested can be found in for a non response to an invitation to register. the following table: 897W Written Answers23 MARCH 2012 Written Answers 898W

Numbers and percentages1 of pupils2,3 at the end of key stage 4 achieving A*-C Mr Gibb [holding answer 21 March 2012]: The grades in Biological Sciences, Chemistry, Mathematics, Physics and Combined sciences4 GCSEs5,6 in the Bracknell constituency7, south-east region8 and information requested can be found in the following England9. Years: 2008-09 to 2010-1110. Coverage: England table. 2008-09 2009-10 2010-11 Numbers and percentages1 of pupils2,3 at the end of Key Stage 4 achieving A*-C grades in mathematics, English, geography and science4 GCSEs5,6 in mid Sussex Biology constituency7, West Sussex local authority and England9, Years: 2006/07 to Bracknell (no.) 57 182 265 2010/11, Coverage: England Bracknell (%) 5.2 16.7 24.5 Numbers and percentages of KS4 pupils achieving A*-C grades in: South East (no.) 12,469 16,820 19,494 2006/07 2007/08 2008/09 2009/10 2010/11 South East (%) 13.9 18.5 22.0 England (no.) 65,792 91,504 108,244 Mathematics England (%) 11.4 15.9 19.2 Mid Sussex 946 966 910 1,058 1,036 (Numbers) Chemistry Mid Sussex 65.6 66.7 66.9 72.2 73.3 (Percentages) Bracknell (no.) 57 181 247 Bracknell (%) 5.2 16.7 22.9 South East (no.) 12,027 16,463 19,043 West Sussex 4,767 4,993 4,938 5,355 5,423 (Numbers) South East (%) 13.4 18.1 21.5 West Sussex 55.7 57.9 60.0 62.8 65.6 England (no.) 63,261 89,436 106,020 (Percentages) England (%) 11.0 15.5 18.8

England 322,941 334,905 338,133 360,233 368,720 Mathematics (Numbers) Bracknell (no.) 683 699 725 England 53.9 56.2 58.7 62.5 65.3 Bracknell (%) 62.4 64.3 67.1 (Percentages) South East (no.) 55,109 58,849 59,207 South East (%) 61.6 64.7 66.9 English England (no.) 338,133 360,233 368,720 Mid Sussex 994 1,024 960 1,128 1,065 England (%) 58.7 62.5 65.3 (Numbers) Mid Sussex 68.9 70.7 70.5 77.0 75.4 (Percentages) Physics Bracknell (no.) 47 182 258 Bracknell (%) 4.3 16.7 23.9 West Sussex 5,383 5,604 5,323 5,751 5,855 (Numbers) South East (no.) 11,932 16,491 19,211 West Sussex 62.9 65.0 64.7 67.5 70.8 South East (%) 13.3 18.1 21.7 (Percentages) England (no.) 62,680 89,416 106,753 England (%) 10.9 75.5 78.9 England 349,086 357,982 358,135 382,870 392,102 (Numbers) Combined Science England 58.3 60.1 62.1 66.5 69.4 Bracknell (no.) 623 507 411 (Percentages) Bracknell (%) 56.9 46.6 38.7 South East (no.) 40,987 37,263 32,978 Geography South East (%) 45.8 410 37.3 Mid Sussex 344 394 355 460 367 England (no.) 259,951 230,888 205,597 (Numbers) England (%) 45.1 40.1 36.4 Mid Sussex 23.8 27.2 26.1 314 26.0 1 Percentages are based on all pupils at end of key stage 4 in each area. (Percentages) 2 Figures do not include pupils recently arrived from overseas. 3 Figures include all maintained schools (including CTCs and academies). 4 Pupils who achieved A*-C in core science GCSE. West Sussex 1,888 1,968 1,707 1,750 1,570 5 Full GCSEs only have been included (Full GCSEs, double awards, accredited (Numbers) international certificates and their predecessor iGCSEs). Figures from 2008-09 West Sussex 22.1 22.8 20.7 20.5 19.0 exclude iGCSEs, 2010 figures include accredited iGCSEs. (Percentages) 6 Including attempts and achievements by these pupils in previous academic years. 7 Parliamentary constituency figures are based on the postcode of the school. 8 Regional figures are based on the region of the local authority maintaining the England 103,592 101,350 97,759 98,098 96,364 school, or in the case of CTCs and academies the local authority in which the (Numbers) school is situated. England 17.3 17.0 17.0 17.0 17.1 9 England figures are the sum of all local authority figures. (Percentages) 10 Figures for 2008-09 and 2009-10 are based on final data, 2010-11 figures are based on revised data. Source: Science3 National Pupil Database Mid Sussex 997 1,095 1,053 1,172 1,099 GCSE: Sussex (Numbers) Mid Sussex 69.1 75.6 77.4 80.0 77.8 (Percentages) Nicholas Soames: To ask the Secretary of State for Education how many children received A* to C grades West Sussex 4,580 5,326 5,340 5,581 5,267 in GCSE (a) mathematics, (b) English, (c) geography (Numbers) and (d) sciences in (i) West Sussex and (ii) Mid Sussex West Sussex 53.6 618 64.9 65.5 63.7 constituency in each of the last five years. [101266] (Percentages) 899W Written Answers23 MARCH 2012 Written Answers 900W

Numbers and percentages1 of pupils2,3 at the end of Key Stage 4 achieving A*-C ENVIRONMENT, FOOD AND RURAL AFFAIRS grades in mathematics, English, geography and science4 GCSEs5,6 in mid Sussex constituency7, West Sussex local authority and England9, Years: 2006/07 to Food: Labelling 2010/11, Coverage: England Numbers and percentages of KS4 pupils achieving A*-C grades in: Gordon Banks: To ask the Secretary of State for 2006/07 2007/08 2008/09 2009/10 2010/11 Environment, Food and Rural Affairs what safeguards she has put in place to ensure that Regulation (EC) England 280,096 328,703 348,685 345,156 333,005 (Numbers) 41/2009 is implemented within the catering and England 46.8 55.2 60.5 59.9 59.0 manufacturing industries. [101757] (Percentages) 1 Percentages are based on all pupils at end of Key Stage 4 in each area. 2 Anne Milton: I have been asked to reply on behalf of Figures do not include pupils recently arrived from overseas. 3 Figures include the Department of Health. all maintained schools (including CTCs and academies). 4 Pupils who achieved A*-C at GCSE in at least one of the following subjects: physics, chemistry, The Food Standards Agency (FSA) has responsibility biological sciences, single science, double science, additional science, core science and applied science for the years 2008/09 to 2010/11 and in physics, for food aspects of food allergy and intolerance, including chemistry, biological sciences, single science, double science for the years the implementation of Regulation (EC) 41/2009, and 2006/07 and 2007/08. providing risks assessments for incidents where misleading 5 Full GCSEs only have been included (full GCSEs, double awards, accredited international certificates and their predecessor iGCSEs). Figures from 2006/07 gluten claims have been made. to 2008/09 exclude iGCSEs; 2009/10 and 2010/11 figures include accredited The FSA has worked closely with Coeliac UK, together iGCSEs. 6 Including attempts and achievements by these pupils in previous academic with food manufacturers, producers, retailers, and caterers years. 7 Parliamentary constituency figures are based on the postcode of the to ensure they understand and comply with the school. 8 Local authority figures are based on the local authority maintaining requirements of this regulation. Guidance to Compliance the school or in the case of CTCs and academies the local authority in which the school is situated. 9 England figures are the sum of all local authority was published in September 2009 to help businesses figures. Source: National Pupil Database (2006/07 to 2009/10 final data, meet their obligations. In addition the FSA collaborated 2010/11 revised data). with Coeliac UK to produce a simple factsheet and flow chart to help caterers understand when they can label foods as “gluten-free”. The FSA web-based training (an Pupils: English Language e-learning module) on allergens has been modified to take account of the new labelling requirements for Mr Stewart Jackson: To ask the Secretary of State gluten. This is freely available to the food industry, for Education how many (a) primary school pupils enforcement officers and consumers and can be found and (b) secondary school pupils in each local at: education authority in (i) the east of England and www.food.gov.uk/enforcement/enforcetrainfund/ (ii) Greater London did not have English as their first onlinetraining/allergytraining language as at 30 September (1) 2009, (2) 2010 and (3) The FSA works with enforcement officers in local 2011; and if he will make a statement. [100773] authorities to ensure that food law is applied across the entire food chain and that public health and consumer interests are protected. It provides training and regular Mr Gibb [holding answer 21 March 2012]: The updates to enforcement officers on food matters, including Department publishes annual data on first language allergen labelling. based on January school census returns. The latest information on first language has been published as part of the ‘Schools, Pupils and their Characteristics, January 2011’ Statistical First Release at: FOREIGN AND COMMONWEALTH OFFICE http://www.education.gov.uk/rsgateway/DB/SFR/s001012/ Bahrain index.shtml Information on first language as at January 2009, Ian Lucas: To ask the Secretary of State for Foreign 2010 and 2011 in east of England and London has been and Commonwealth Affairs what recent assessment he placed in the House Libraries. has made of the human rights situation in Bahrain. [101755]

Secondary Education: North West Alistair Burt: The UK remains concerned about the Human Rights situation in Bahrain. We welcomed the Bahraini Government’s efforts to implement the Bahrain Damian Hinds: To ask the Secretary of State for Independent Commission of Inquiry recommendations Education pursuant to the answer of 7 March 2012, and continue to urge them to address all the concerns Official Report, column 811W, on secondary education, raised by the Commission. We are therefore pleased to what the (a) unique reference number and (b) see the progress the Government of Bahrain have made establishment number is of each maintained secondary so far in responding to the report, including to prevent school in the North West; how many year 11 pupils future abuses of human rights. Introducing a police were on roll in 2005; how many pupils took GCSE code of conduct, placing cameras to interview room English with WJEC in (i) 2005 and (ii) 2010; and what and establishing a media oversight body are all important proportion of entrants in that subject achieved grade C steps. or above in (A) 2005 and (B) 2010. [100158] But this is a long term process and there is more to do. It remains critical that the Government of Bahrain Mr Gibb: The information requested has been placed continue their work, in particular ensuring that in the House Libraries. recent agreements are honoured, addressing issues of 901W Written Answers23 MARCH 2012 Written Answers 902W accountability and changing behaviours and culture. to how to construct a bomb, to how to beat border I and Foreign and Commonwealth Office Ministers security and emergency response plans. I expect our regularly raise the issue of human rights with our work to be reflected in a dedicated paragraph in the Bahraini counterparts. summit communiqué, and an additional UK-led statement, in which at least 20 countries have agreed to join us, Ian Lucas: To ask the Secretary of State for Foreign committing to specific national actions to improve the and Commonwealth Affairs whether he has made practice of information security. representations to the Bahraini government on the Formula One race scheduled to take place in that Rockall country. [101756] Daniel Kawczynski: To ask the Secretary of State for Alistair Burt: This is not a decision for the British Foreign and Commonwealth Affairs what discussions Government and we have not made representations to on the implications of Scottish independence for the the Federation Internationale de l’Automobile (FIA) future status of Rockall he has had with the First regarding a decision on whether to cancel, reschedule or Minister of Scotland; and what representations he has re-locate the Bahraini Grand Prix. received on the status of Rockall. [101008] Similarly, we have not lobbied any other country to take a position on this matter or to make representation Mr Harper: I have been asked to reply on behalf of to the FIA. It remains entirely the decision of the FIA the Cabinet Office. on whether to postpone or cancel any race. There have been no discussions with the First Minister I have told the Bahraini authorities that if the race of Scotland about the future status of Rockall. does take place, we expect it to do so under the right Somalia conditions.

Nuclear Weapons: International Cooperation Stephen Phillips: To ask the Secretary of State for Foreign and Commonwealth Affairs what assessment his Department has made of the outcomes of Paul Flynn: To ask the Secretary of State for Foreign Operation Atalanta. [101344] and Commonwealth Affairs what plans he has to bring forward initiatives at the Global Nuclear Security Mr Bellingham: The British Government are pleased summit in Seoul on 26 and 27 March 2012. [101256] to provide the operational headquarters for Operation Atalanta and, as an EU member state, receive regular Alistair Burt: The Deputy Prime Minister will lead updates of its progress. The EU presence in the critical the UK delegation to the Nuclear Security summit in Gulf of Aden trade artery and wider Indian ocean, Seoul on 26-27 March. The summit will assemble alongside naval forces from NATO, the Combined Maritime 53 countries, and the UN, the EU, the International Forces and other contributing nations has contributed Atomic Energy Agency (IAEA) and Interpol, to assess significantly to the reduction in the number of successful progress on and reinvigorate commitment to ensuring hijackings in recent months, The Government, with the that nuclear materials, technology and information are agreement of parliamentary scrutiny committees, are kept out of the hands of terrorists. pleased to support the proposed extension of Operation The Deputy Prime Minister will be able to report Atalanta to December 2014. The Government are hopeful significant achievements against our national commitments that the EU Foreign Affairs Council will soon be able to from the first summit in Washington in 2010, including adopt formally the extension. helping to secure nuclear materials in the former Soviet As was made clear during the London Conference on Union (not least, 775 bombs’ worth of material in Somalia, the Government remain committed to Kazakhstan); hosting a successful IAEA security advisory international efforts to counter piracy, and have just mission to our civil nuclear sites in Sellafield and Barrow; submitted their response to the Foreign Affairs Committee’s and leading efforts to secure last year’s renewal of the report into Somali piracy. This response gives a G8-based Global Partnership against the spread of comprehensive picture of all Government activity against weapons of mass destruction. piracy, including sustainable regional prosecution and The Deputy Prime Minister will also be able to make imprisonment solutions, working with the shipping industry new commitments for the two years up to the next and action to break the piracy business model. A copy summit in 2014, including further close partnership has been laid before the House. with the IAEA, the US, the EU and others on risk reduction programmes overseas; further development Western Sahara of plans for the future management of our inventory of separated civil plutonium; and implementation of the Cathy Jamieson: To ask the Secretary of State for new UK/France framework for cooperation on civil Foreign and Commonwealth Affairs what assessment nuclear security and emergency response. he has made of the extent of a consultation with the Our key contribution, and the summit’s most innovative people of Western Sahara on the export of sand by element, will be our groundbreaking work on the security Morocco from Western Sahara. [101578] of nuclear information. Over the past year we have built consensus on the need for greater focus on protecting Alistair Burt: We are unaware of any consultations not just nuclear material but also the information that a between Morocco and the people of Western Sahara terrorist would need to obtain the material, build it in to specifically about the export of sand from Western an improvised explosive device, and mount an attack. Sahara. However, we support the efforts of the United Such information ranges from maps of nuclear installations, Nations Secretary-General’s Special Envoy for Western 903W Written Answers23 MARCH 2012 Written Answers 904W

Sahara, Ambassador Christopher Ross, to encourage HOME DEPARTMENT Morocco and the Polisario Front to address issues regarding the use of territory’s natural resources. Alcoholic Drinks: Pricing Cathy Jamieson: To ask the Secretary of State for Foreign and Commonwealth Affairs whether any UK Mr Brady: To ask the Secretary of State for the companies or ships export sand from Western Sahara. Home Department what legal advice her Department [101579] has sought on introducing a form of alcohol minimum pricing in England and Wales. [100567] Alistair Burt: We are not aware of the involvement of any UK companies or ships in the export of sand from James Brokenshire: The legal advice which the Western Sahara. Government receive on this issue is subject to legal privilege. We do not, therefore, believe it appropriate to Cathy Jamieson: To ask the Secretary of State for disclose this advice. Foreign and Commonwealth Affairs if he will raise with the Moroccan government the need to consult the people of Western Sahara before exploiting and Entry Clearances: Tuberculosis exporting any natural resources. [101580] Mr Virendra Sharma: To ask the Secretary of State Alistair Burt: The UK fully supports the efforts of for the Home Department on what epidemiological the United Nations Secretary-General’s Special Envoy grounds the UK Border Agency develops its country- for Western Sahara, Ambassador Christopher Ross, to specific guidelines for required pre-entry tuberculosis encourage Morocco and the Polisario Front to address screening of visa applicants. [100987] issues regarding the use of territory’s natural resources. On marine issues, the Secretary of State for Foreign and Damian Green: The UK Border Agency has been Commonwealth Affairs, my right hon. Friend the Member piloting pre-migration screening under immigration powers. for Richmond (Yorks) (Mr Hague), has called on Morocco The pilot now covers visa applicants from 15 countries to produce detailed evidence that the EU-Morocco identified as having a high incidence of the disease, Fisheries Partnership Agreement is conducted to the currently set at 40 cases per 100,000 head of population, benefit of the people of Western Sahara. using data from the World Health Organization. The Government are reviewing the results of the pilot Work Experience and the effectiveness of screening in this manner as a means of reducing the incidence of the disease within Chi Onwurah: To ask the Secretary of State for the UK. Foreign and Commonwealth Affairs pursuant to the answer of 5 May 2011, Official Report, column 880W, on departmental work experience, how many people EU Justice and Home Affairs Council (a) worked as an intern, (b) undertook a work experience placement and (c) worked as a volunteer in Mr Raab: To ask the Secretary of State for the Home his Department in accordance with the hiring criteria Department pursuant to the written ministerial set out in that answer in the last 12 months for which statement of 14 March 2012, Official Report, column data are available; and how many such people were 23WS, on EU justice and home affairs measures, what employed other than according to those criteria. estimate she has made of the number of underlying [100736] measures the UK will continue to be bound by in each of the next three years; and what those measures are. Mr Bellingham: Over the last 12 months, the FCO [101227] offered a number of work experience placements in the UK through the schemes mentioned in the previous James Brokenshire [holding answer 21 March 2012]: answer of 5 May 2011, Official Report, column 880W. It is not possible to estimate how many underlying EU We do this to help us recruit high calibre graduates from JHA measures the UK will continue to be bound by in backgrounds where the FCO is under-represented, and each of the next three years. This will be determined by where the FCO has a skills shortage. individual opt-in decisions made by the Government on In 2011, we ran and participated in a number of proposals brought forward by the Commission, with internship schemes (all paid) which involved 52 interns. the underlying measure only continuing to apply to the From the schemes targeting diversity groups, we hosted UK where we decide to not opt in to the replacement 33 female students and nine students with ethnic minority measure. or low socio-economic backgrounds. From our specialist Each opt-in decision is made on a case-by-case basis, subject work experience schemes, we hosted seven where the Government take into account the impact of economics students. In addition, we offered three placements new proposals on our security, our civil liberties, the as part of a new Government-wide scheme for 16 to integrity of our common law systems and the control of 18-year-olds, to increase professional experience and immigration. When proposals are brought forward which workplace skills for individuals from under-represented amend or repeal and replace existing measures the backgrounds. Government also consider the impact of the UK remaining We do not run any volunteer schemes; all our work bound by the underlying measure should we decide not experience schemes are paid. to opt in to the amending or replacement measure. 905W Written Answers23 MARCH 2012 Written Answers 906W

The Commission’s work programme for 2012 gives James Brokenshire: The Serious Organised Crime an indication of the measures it is likely to propose for Agency passes any relevant information it receives in the coming year, although it will not always be clear respect of proscribed organisations to the relevant UK whether they will repeal and replace an existing measure, agencies in accordance with established processes for or simply amend it. We also know that this programme intelligence exchange and operational collaboration. In is subject to change. However, it currently includes the respect of counter-terrorism work, this would include following measures for which the Home Office will be the Security Service (which is responsible for protecting responsible where we know existing EU measures already national security) and relevant police forces and agencies. regulate the subject matter concerned: Proposal on minimum provisions on the constituent elements Terrorism of criminal acts and penalties in the field of illicit drug trafficking Proposal on information exchange, risk-assessment and control Naomi Long: To ask the Secretary of State for the of new psychoactive substances Home Department what is the current Government Proposal to reform Eurojust’s structure definition of terrorism. [100977] Proposals on confiscation: minimum rules for the confiscation of criminal assets and mutual recognition of confiscation orders James Brokenshire: The Terrorism Act 2000 (Section 1), as amended by the Terrorism Act 2006 (Section 34) Proposal establishing the European Police Office and the Counter-Terrorism Act 2008 (Section 75), defines Proposal for admission of third country nationals for the terrorism as the use or threat of action which is designed purposes of scientific research, studies, pupil exchange, unremunerated to influence the Government (or an international training or voluntary service governmental organisation) or intimidate the public or We have also already chosen not to opt in to the section of the public, and the use or threat of such Asylum Reception Conditions and Asylum Procedures action is made for the purpose of advancing a political, Directives, which means we will remain bound by the religious, racial or ideological cause. The full legal definition current directives once those are adopted. can be found at: www.legislation.gov.uk/ukpga/2000/11/section/1 Forensic Science

Mr Thomas: To ask the Secretary of State for the Home Department what assessment she has made of INTERNATIONAL DEVELOPMENT the performance of LGC Forensics; and if she will make a statement. [100523] Ethiopia: Human Rights

James Brokenshire: The performance of forensic suppliers Mr Anderson: To ask the Secretary of State for is managed by their customers, the majority of which International Development whether he has made an are police forces. This is supported by national arrangements assessment of recent allegations made by Human delivered by National Policing Improvement Agency Rights Watch that UK aid to Ethiopia is not closely and the Home Office. The national picture has been monitored at field level by the donor community. discussed and kept under review by the Forensic Transition [101218] Board. Quality issues are overseen by the Forensic Regulator, Mr Andrew Mitchell: We assess that UK Aid in who is currently investigating a specific DNA contamination Ethiopia is well spent and closely monitored at the field incident within LGC. level. The UK employs a range of mechanisms to monitor the effectiveness of UK aid to Ethiopia and to ensure that we get maximum impact from every pound Metals: Theft of taxpayers’ money. These include regular field visits, audits and evaluation, financial and performance reports. Jonathan Ashworth: To ask the Secretary of State for We are also investing in national surveys to tell us more the Home Department to which forms of scrap metal a about citizens’ experiences of local service delivery to ban on cash payments for scrap metal will apply. supplement Government’s own administrative sources. [100880] Ministers regularly raise human rights matters with the Government of Ethiopia. I raised this personally with James Brokenshire: The ban on cash payments will PM Meles at Davos and in Addis in January, and with apply to all forms of scrap metal handled by scrap Minister Tedros in March 2012. And we will continue metal dealers. to review the situation on the ground. My most recent meeting with Jan Egeland (executive director) from Human Rights Watch was on 22 March 2012. Organised Crime: Proscribed Organisations Mr Anderson: To ask the Secretary of State for Naomi Long: To ask the Secretary of State for the International Development with reference to recent Home Department what the role of the Serious and allegations made by Human Rights Watch concerning Organised Crime Agency is in monitoring links UK development assistance to Ethiopia, if he will between organised crime and proscribed organisations instigate an independent, impartial and transparent in (a) Northern Ireland and (b) the UK; and which field-based investigation into the use of donor-funded law enforcement agency leads in dealing with such government services for political purposes in Ethiopia. crime. [100807] [101219] 907W Written Answers23 MARCH 2012 Written Answers 908W

Mr Andrew Mitchell: The coalition Government take These figures have been drawn from the police’s very seriously the allegations made by Human Rights administrative IT system, the police national computer, Watch. When allegations were first made in 2009, the which, as with any large scale recording system, is UK Government took immediate action. Working with subject to possible errors with data entry and the European Union, the United States and other donors, processing. The figures are provisional and subject we published a study in August 2010, which found that to change as more information is recorded by the there were good systems and safeguards for preventing police. misuse of aid and made recommendations on how to further improve transparency and independent monitoring. We continue to work with others to implement and Number of individuals sentenced for a breach of a restraining order strengthen these recommendations. under section 5 of the Protection from Harassment Act 1997 in England and Wales, between 1997 and the end of February 2012 The Development Assistance Group in Ethiopia (DAG) Number of sentencing Proportion of has appointed an international expert to co-ordinate occasions for breach of a offenders work on aid management and utilisation. All UK Aid restraining order Number of offenders (percentage) programmes now have a strong focus on managing fiduciary risks, value for money and monitoring and 1 9,383 71 evaluation. A World Bank evaluation of the largest 2 2,421 18 multi donor programme in Ethiopia,—Protection of 38767 Basic Services—strongly supported Government efforts at local levels in the areas of public financial management, 43192 fiscal transparency and social accountability. 51281 6 or more 146 1 Total number of people 13,273 100 convicted for a breach of a restraining order JUSTICE

Coroners Harassment: Sentencing Robert Flello: To ask the Secretary of State for Justice how many military inquests would have been deemed to be suitable for the closed material procedure Kelvin Hopkins: To ask the Secretary of State for as set out in the Justice and Security consultation paper Justice (1) how many people were imprisoned following in each of the last five years. [101528] conviction under section 4 (putting a person in fear of violence) of the Protection from Harassment Act 1997 Mr Djanogly: The Ministry of Justice does not collate in 2010-11; [101473] or hold statistics on the number of military inquests where sensitive information has been centrally relevant, (2) how many people were imprisoned following or where some form of closed procedure might have conviction under section 5 (breach of a restraining assisted in the investigation into the death. However, in order) of the Protection from Harassment Act 1997 in the overwhelming majority of cases coroners have managed, 2010-11; [101474] through close engagement with bereaved service families, to handle some very sensitive information in an agreed (3) how many people received a prison sentence way that has minimised, if not altogether removed, the under section 4 (putting a person in fear of violence) of need to restrict access to information, whether by the the Protection from Harassment Act 1997 for (a) use of public interest immunity or otherwise. Key parties 12 months or less, (b) 12 to 24 months, (c) 24 to to the information have stayed informed and involved. 48 months or (d) 60 months in 2010-11. [101476]

Harassment: Convictions Mr Blunt: The number of persons found guilty at all courts and sentenced to immediate custody, by sentence length, for offences under section 4 of the Kelvin Hopkins: To ask the Secretary of State for Protection from Harassment Act 1997, in England and Justice how many people have been convicted of Wales in 2010 (latest available) can be viewed in the breach of a restraining order under section 5 of the table. Protection from Harassment Act 1997 on (a) two, (b) three, (c) four, (d) five and (e) more occasions since The number of persons sentenced at all courts in the Act was passed. [101475] England and Wales for offences of breaching a restraining order under section 5 in 2010 was 2,799. A total of 904 Mr Blunt: The following table shows the number of sentences of immediate custody were imposed for these sentencing occasions for individuals convicted of breach offences during this period. of a restraining order under section 5 of the Protection from Harassment Act 1997. The figures in the table are Annual court proceedings data for 2011 are planned taken from data up to the end of February 2012. for publication on 24 May 2012. 909W Written Answers23 MARCH 2012 Written Answers 910W

Number of persons found guilty at all courts, sentenced to immediate custody, by sentence length, for offences under section 4 of the Protection from Harassment Act 1997, England and Wales 20101,2 Sentence length Over 12 Over 24 Found Immediate 12 months months and up months and up Other Section 4 guilty Sentenced custody and under to 24 months to 48 months sentences3

Putting people in 797 796 149 128 17 4 647 fear of violence 1 The figures given in the table on court proceedings relate to persons for whom these offences were the principal offences for which they were dealt with. When a defendant has been found guilty of two or more offences it is the offence for which the heaviest penalty is imposed. Where the same disposal is imposed for two or more offences, the offence selected is the offence for which the statutory maximum penalty is the most severe. 2 Every effort is made to ensure that the figures presented are accurate and complete. However, it is important to note that these data have been extracted from large administrative data systems generated by the courts and police forces. As a consequence, care should be taken to ensure data collection processes and their inevitable limitations are taken into account when those data are used. 3 Includes: conditional discharge; fine; community sentence; suspended sentence; and otherwise dealt with (includes one day in police cells; disqualification order; restraining order; confiscation order; travel restriction order; disqualification from driving and other miscellaneous disposals). Source: Justice Statistics Analytical Services—Ministry of Justice

Manpower by results can contribute to reduced reoffending. The outcome of the competitions will be announced in Stephen Barclay: To ask the Secretary of State for November 2012. Justice how many people were employed in interim Officials are working with the Wales and Staffordshire posts by (a) his Department and (b) a non-ministerial and West Midlands Probation Trusts to develop two department or arm’s length body controlled by his reducing reoffending pilots covering offenders serving Department through (i) Penna Consulting, (ii) Reed community sentences. Personnel Services and (iii) Capita Resourcing Ltd To test the potential for new approaches using payment (trading as Veredus) at the latest date for which figures by results, a procurement exercise is underway with the are available; and how many such people (A) had been aim of establishing two innovation pilots, to be based in post for over a year and (B) worked full-time at that on proposals for reducing reoffending submitted by the date. [101589] market. The principles of payment by results are also being Mr Blunt: The Ministry of Justice has no interim extended across the wider justice system. Pilots are posts filled through Penna Consulting, Reed Personnel running in Greater Manchester and five London boroughs Services or Veredus (part of Capita plc). testing a justice reinvestment approach to reducing The Ministry has a procurement arrangement with demand on courts, prison and probation. Four Youth Capita Resourcing Ltd (a separate part of Capita plc) Custody Pathfinder pilots are also underway, encouraging to supply specialist contractors and interim managers. local authorities in the pilot areas to reduce reoffending This arrangement is in line with the Cabinet Office and prevent young people most at risk of custody from Efficiency and Reform Group (ERG) directive that escalating through the justice system. complies with procurement legislation and with HM Officials are working to test the benefits of Treasury rules. co-commissioning services on a payment by results Information on the interim posts in the arm’s length basis, with the Department for Work and Pensions to bodies for which the Ministry of Justice is responsible is introduce two pilot projects, testing the inclusion of a not held centrally and could only be obtained by incurring reoffending outcome into the Work programme, and a disproportionate cost. with the Department of Health to design and implement eight drug and alcohol recovery pilots, which will also Reoffenders include a reoffending outcome.

Guy Opperman: To ask the Secretary of State for Justice what recent progress he has made on his policy TRANSPORT of payment by results for the reduction in prisoner reoffending; and if he will make a statement. [R] Aviation: Lasers [99251] Henry Smith: To ask the Secretary of State for Mr Blunt: Two payment by results pilots aimed at Transport what guidance she has issued to (a) the reducing reoffending by prisoners are underway, involving courts and (b) Crown prosecutors on the (i) use of offenders released from HMP Peterborough and HMP lasers and (ii) relevant offences in the air navigation Doncaster. Ministry of Justice officials are working orders. [101752] with the governors of HMP High Down and HMP Leeds to establish pilots which will test different options Mrs Villiers: It is for the police and prosecution for applying payment by results principles to prisons authorities to decide what action to take in light of the managed in the public sector, beginning later this year. circumstances of individual events. Under the Air In the latest phase of prison competitions, the Ministry Navigation Order it is an offence to act negligently or of Justice has invited variant bids showing how payment recklessly in a manner likely to endanger an aircraft. 911W Written Answers23 MARCH 2012 Written Answers 912W

On conviction, an offender could face an unlimited fine Mike Penning: I do not believe it necessary to bring and/or a custodial sentence of up to five years. It is also EU seafarers in scope of Directive 96/71/EC. I am an offence under the Air Navigation Order to: content that the Maritime Labour Convention 2006, “direct or shine any light at any aircraft in flight so as to dazzle which is being implemented in Europe through a Social or distract the pilot of the aircraft”. Partners Agreement in Directive 2009/13/EC, sets global standards for the protection of seafarers living and This offence can attract a fine of up to £2,500. working conditions, including provisions relating to annual leave and employment. Lost Property Mr Mike Hancock: To ask the Secretary of State for Transport what discussions she has had with her EU Dr Whiteford: To ask the Secretary of State for counterparts on extension of Directive 96/71/EC to all Transport what property has been lost or stolen from seafarers operating within the EU. [101799] her Department in the last 12 months; and what the estimated cost was of replacement of such property. Mike Penning: The Department for Transport has [100908] held no discussions with other member states on the extension of Directive 96/71/EC to all seafarers operating Norman Baker: The property recorded as lost and within the EU. We have no intention of seeking such an stolen in the last 12 months is as follows, and where we amendment to Directive 96/71/EC. have the estimated replacement costs, this is shown alongside: Tractors

£ Total estimate Huw Irranca-Davies: To ask the Secretary of State cost of for Transport whether she plans to change the rules for Item Lost Stolen replacement tractors and trailers on the roads; and if she will make a statement. [100457] Laptops 5 9 13090 USB Drive 9 2 550 Encryption tokens 41 9 1250 Mike Penning: The Department’s officials are currently discussing potential changes to regulations with the Blackberry 15 2 2890 relevant organisations in accordance with the Government’s Other media 1 0 — response to the MacDonald review. Maintaining high Mobile Phones 8 0 240 standards of road safety is of key importance, while Other IT hardware 4 0 — permitting farmers to take full advantage of the efficiencies Personal items (such 014—of improved, modern equipment. Any proposals to as jewellery and cash) change would be subject to normal regulatory process Non-personal items 117 13 — including public consultation. Paper 12 0 — Work Experience The figures provided here are for all items recorded as lost or stolen in the last 12 months, and are for the entire Department including its agencies and shared Chi Onwurah: To ask the Secretary of State for service centre. Transport pursuant to the answer of 24 May 2011, Official Report, column 573W, on departmental work experience, how many people (a) worked as an intern, Railways: Electrification (b) undertook a work experience placement and (c) worked as a volunteer in her Department in accordance with the hiring criteria set out in that Jonathan Reynolds: To ask the Secretary of State for Answer in the last 12 months for which data are Transport what assessment she has made of the likely available; and how many such people were employed effect of the electrification of the railway line between other than according to those criteria. [100747] Manchester and Leeds on her plans to provide additional cascaded rolling stock; and what recent progress she has made in introducing such rolling Norman Baker: In the 12 months ending 28 February 2012: stock. [101517] (a) 10 people worked as interns as part of the Department’s Summer Diversity internship programme supporting people from Mrs Villiers: Future rolling stock deployment decisions minority ethnic and other under-represented backgrounds. will be a matter for the new franchisee. (b) 439 people between ages of 18 and 24 participated in the Government’s work placement programme supporting young people. Shipping: EU Law (c) The Department does not offer opportunities for people to work as volunteers except in the Maritime and Coastguard Agency which is one of the Department’s seven executive agencies. The Mr Mike Hancock: To ask the Secretary of State for MCA uses volunteers in the Coastguard Rescue Service (CRS). Transport what assessment she has made of the merits There are approximately 3,500 volunteers around the coast organised of ensuring all EU seafarers are brought in line with into 362 teams. Numbers fluctuate and new members are enrolled the provisions of Directive 96/71/EC. [101798] locally when there is a need. 913W Written Answers23 MARCH 2012 Written Answers 914W

TREASURY WORK AND PENSIONS Consumers: EU Law Manpower

Nic Dakin: To ask the Chancellor of the Exchequer Stephen Barclay: To ask the Secretary of State for what timetable he has set for the consultation on early Work and Pensions how many people were employed in implementation of Article 19 of the consumer rights interim posts by (a) his Department and (b) a directive; and when he expects the article to be non-ministerial department or arm’s length body transposed into legislation and come into force. controlled by his Department through (i) Penna [101717] Consulting, (ii) Reed Personnel Services and (iii) Capita Resourcing Ltd (trading as Veredus) at the Norman Lamb: I have been asked to reply on behalf latest date for which figures are available; and how of the Department for Business, Innovation and Skills. many such people (A) had been in post for over a year On 23 December 2011 we announced our intention and (B) worked full-time at that date. [101590] to consult on implementing the payment surcharges provision of the consumer rights directive ahead of the Chris Grayling: As of 22 March 2012 the Department’s June 2014 transposition deadline. We intend to issue a use of interims from Penna Consulting, Reed Personnel consultation document this spring to seek views on the Services and Capita Resourcing Ltd (trading as Veredus) timing of implementation, among other issues. The is set out in the following table: responses to that consultation will inform the timing of implementation. In line with Government policy we Capita would intend for the provision to take effect on a Reed Resourcing Penna Personnel Ltd (trading Common Commencement Date, if implemented before Consulting Services as Veredus) the EU deadline for implementation. 1 Department 0 0 0 Taxation: Environment Protection Of which: 1a Been in post over a 000 Tom Greatrex: To ask the Chancellor of the year Exchequer what estimate he has made of the revenue 1b Worked full-time at 000 the Exchequer will receive from the Carbon Price Floor that date (over a year) in (a) 2013-14 and (b) 2014-15. [101259] 2 Non-ministerial 0220 department/arm’s Miss Chloe Smith: The independent Office for Budget length body Responsibility set out their estimate of receipts from Of which: the Climate Change Levy, which includes the carbon 2a Been in post over a 0200 price floor. The estimated receipts are £1.4 billion in year 2013-14 and £1.8 billion in 2014-15. These are set out in 2b Worked full-time at 070 Table 4.7 of their “Economic and fiscal outlook”published that date (over a year) in March 2012.

WRITTEN MINISTERIAL STATEMENTS

Friday 23 March 2012

Col. No. Col. No. BUSINESS, INNOVATION AND SKILLS ...... 75WS HEALTH...... 81WS National Careers Service and “The Right Advice at the Abortion Act 1967...... 81WS Right Time” ...... 75WS Retail and Manufacturing Consultation ...... 75WS TRANSPORT ...... 81WS Additional Funding for Buses...... 81WS COMMUNITIES AND LOCAL GOVERNMENT.. 78WS Disabled Facilities Grant Funding ...... 78WS TREASURY ...... 77WS Traveller Site Provision ...... 79WS ECOFIN (13 March 2012)...... 77WS WORK AND PENSIONS ...... 82WS FOREIGN AND COMMONWEALTH OFFICE..... 79WS Automatic Enrolment Timetable...... 82WS Afghanistan Monthly Progress Report ...... 79WS Discretionary Social Fund Scheme ...... 82WS PETITIONS

Friday 23 March 2012

Col. No. Col. No. EDUCATION...... 15P School Transport (Darlington and Sedgefield)...... 15P WRITTEN ANSWERS

Friday 23 March 2012

Col. No. Col. No. ATTORNEY-GENERAL ...... 889W FOREIGN AND COMMONWEALTH OFFICE— Serious Organised Crime and Police Act 2005 ...... 889W continued Nuclear Weapons: International Cooperation...... 901W BUSINESS, INNOVATION AND SKILLS ...... 889W Rockall ...... 902W Climate Change ...... 889W Somalia...... 902W Higher Education ...... 890W Western Sahara...... 902W Higher Education: Admissions ...... 890W Work Experience...... 903W Manpower ...... 891W HOME DEPARTMENT...... 904W CABINET OFFICE...... 892W Alcoholic Drinks: Pricing ...... 904W Catering...... 892W Entry Clearances: Tuberculosis...... 904W Flowers ...... 892W EU Justice and Home Affairs Council ...... 904W Harassment...... 892W Forensic Science...... 905W Lost Property...... 893W Metals: Theft ...... 905W Mass Media ...... 893W Organised Crime: Proscribed Organisations...... 905W Ministers’ Private Offices: Minister without Portfolio...... 893W Terrorism ...... 906W Official Cars: Minister without Portfolio ...... 893W Police: Private Sector ...... 894W INTERNATIONAL DEVELOPMENT...... 906W Work Experience...... 894W Ethiopia: Human Rights...... 906W

DEFENCE...... 894W JUSTICE...... 907W Major Projects Review Board ...... 894W Coroners ...... 907W Harassment: Convictions...... 907W DEPUTY PRIME MINISTER ...... 895W Harassment: Sentencing...... 908W Elections: Fraud...... 895W Manpower ...... 909W Electoral Register...... 895W Reoffenders...... 909W TRANSPORT ...... 910W EDUCATION...... 896W Aviation: Lasers ...... 910W Departmental Drinks...... 896W Lost Property...... 911W GCSE: Bracknell ...... 896W Railways: Electrification ...... 911W GCSE: Sussex ...... 897W Shipping: EU Law ...... 911W Pupils: English Language...... 899W Tractors ...... 912W Secondary Education: North West...... 899W Work Experience...... 912W

ENVIRONMENT, FOOD AND RURAL TREASURY ...... 913W AFFAIRS...... 900W Consumers: EU Law...... 913W Food: Labelling...... 900W Taxation: Environment Protection...... 913W

FOREIGN AND COMMONWEALTH OFFICE..... 900W WORK AND PENSIONS ...... 914W Bahrain...... 900W Manpower ...... 914W Members who wish to have the Daily Report of the Debates forwarded to them should give notice at the Vote Office. The Bound Volumes will also be sent to Members who similarly express their desire to have them. No proofs of the Daily Reports can be supplied, nor can corrections be made in the Weekly Edition. 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,

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CONTENTS

Friday 23 March 2012

Budget Resolutions and Economic Situation [Col. 1045] Debate (Third day) Debate interrupted

Alcohol Strategy [Col. 1070] Statement—(Mrs May)

Budget Resolutions and Economic Situation [Col. 1083] Debate (Third day) resumed Debate adjourned

Diabetes [Col. 1129] Debate on motion for Adjournment

Written Ministerial Statements [Col. 75WS]

Petitions [Col. 15P] Observations

Written Answers to Questions [Col. 889W] [see index inside back page]