Wednesday Volume 577 19 March 2014 No. 139

HOUSE OF COMMONS OFFICIAL REPORT

PARLIAMENTARY DEBATES (HANSARD)

Wednesday 19 March 2014

£5·00 © Parliamentary Copyright House of Commons 2014 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 761 19 MARCH 2014 762

Mr Carmichael: Unfortunately, my hon. Friend highlights House of Commons a constituency case of the sort that has been all too familiar to me over the years. In fact, in many ways, it makes the case for the need for reform. I would be more Wednesday 19 March 2014 than happy to meet him and his constituents and assist them in any way that is open to me. The House met at half-past Eleven o’clock Angus Robertson (Moray) (SNP): It is now nearly three years since all three UK parties were resoundingly PRAYERS defeated by the Scottish National party. In those three years, there was plenty of time for the coalition Government and indeed the official Opposition to consider further [MR SPEAKER in the Chair] devolution, including that advocated by the Scottish Affairs Committee. Will the Minister confirm whether they will or will not publish a comprehensive joint devolution proposal? Oral Answers to Questions Mr Carmichael: The hon. Gentleman will get the Government’s response at the same time as everyone else, but he cannot get away from the fact that his SCOTLAND Government in Edinburgh have systematically stripped power, influence and accountability away from island and coastal communities. They are not to be trusted The Secretary of State was asked— with this.

Crown Estate Angus Robertson: The coalition parties and the official Opposition have spent the past three years expressing 1. Mr Ian Davidson (Glasgow South West) (Lab/Co-op): nothing but groundless, relentless negativity about the When he plans to respond to the Fifth Report from future of Scotland. They have dubbed it “project fear”. the Scottish Affairs Committee on the Crown Estate, The Conservative party said that it had a line in the HC 889. [903078] sand and that there would be no further devolution. The Labour party is proposing even less than a few The Secretary of State for Scotland (Mr Alistair years ago, and the Liberal Democrats are in favour of Carmichael): I welcome the Committee’s continued interest federalism in a lopsided model that will never ever in the Crown Estate’s activities in Scotland and the work. Why should the electorate believe a single word publication of its latest report. I am working on the UK of any of the three parties on the issue of devolution— Government response with colleagues in HM Treasury and we will publish it as soon as possible. Mr Speaker: We are grateful, but too long.

Mr Davidson: Does the Secretary of State agree that Mr Carmichael: It is not lost on the House that the this is indeed a fine report, which should be accepted in hon. Gentleman’s question has absolutely nothing to do full by the Government? In particular, does he accept with the Crown Estate. My constituents and those of the proposal that the devolution of powers from London other hon. Members representing coastal and island should be not simply to the black hole that is Edinburgh, communities will no doubt conclude that that is simply but to the local communities and authorities of the because his Government do not care about them. highlands and islands of Scotland? Zero-hours Contracts Mr Carmichael: I pay tribute to the hon. Gentleman because, under his stewardship, the Scottish Affairs Committee has become one of the most productive 2. Alison McGovern (Wirral South) (Lab): What Committees in the House. He knows that I have a assessment he has made of the extent of the use of particular interest in this issue. He highlights one of the zero-hours contracts in Scotland. [903080] real challenges facing us. People in our island and coastal communities have seen power and influence The Parliamentary Under-Secretary of State for Scotland systematically stripped away by the Scottish Government (David Mundell): The Secretary of State for Business, since they took power in 2007. I do not see any particular Innovation and Skills recently concluded a consultation attraction in replacing a centralised system from London on zero-hours contracts with proposals on exclusivity with a centralised system in Edinburgh. clauses, transparency and guidance. A summary of consultation responses will be published in due course. Mr Alan Reid (Argyll and Bute) (LD): A social enterprise has bought the Ardroy outdoor education Alison McGovern: The Office for National Statistics centre in my constituency, but it needs to acquire from has recently had to uprate massively the number of the Crown Estate the rights to a sewage pipe over the people it estimates are on zero-hours contracts right foreshore. After months of legal correspondence and across the UK. Does the Minister agree that this is the thousands of pounds of legal bills, the matter is still not wrong time to see a race to the bottom between UK sorted out. Will my right hon. Friend meet me to help nations on working standards for ordinary people, whether resolve the problem? they live in Scotland, England, Wales or anywhere else? 763 Oral Answers19 MARCH 2014 Oral Answers 764

David Mundell: I agree with the hon. Lady. She will David Mundell: Each month, the hon. Lady raises know that a 670-page White Paper was produced by the welfare issues and plumbs new depths of hypocrisy. The SNP Scottish Government. On zero-hours contracts, as Scottish Government produced a 670-page—[Interruption.] on everything else, it is very short on detail. Mr Speaker: Order. I am quite clear that the context Ann McKechin (Glasgow North) (Lab): Will the Minister in which the hon. Gentleman is using that term is not explain what assessment has been made of Government collective but individual and personal. [Interruption.] procurement contracts in relation to zero-hours contracts Order. I can handle the matter. The Minister will withdraw and how we can encourage best practice? that term: it was directed at an individual, and it is inappropriate. David Mundell: The hon. Lady makes an important point. I will take that up with my colleagues in the David Mundell: I withdraw unreservedly, Mr Speaker. Cabinet Office and write to her. The point I want to make is that the Scottish National party produced a 670-page White Paper on Scottish Margaret Curran (Glasgow East) (Lab): Can the independence. How many mentions does it make of Minister tell the House how many people are employed child poverty? One, on page 41. on zero-hours contracts in Scotland? Iain Stewart (Milton Keynes South) (Con): Does my David Mundell: The answer to that question has not right hon. Friend agree that a good way of tackling changed since the hon. Lady asked it previously. She child poverty in Scotland and England is to raise the knows that there is no legal definition of zero-hours personal tax allowance, which would target low earners? contracts. That is an effective way of increasing the household incomes of families at the bottom end of the income Margaret Curran: Well, the House of Commons Library scale. might take issue with that, because according to the Library, 46,000 people in Scotland are on zero-hours David Mundell: I absolutely agree with my hon. Friend. contracts and, in fact, it believes that that is an Since the coalition Government came to office, 2.2 million underestimate. Will the Minister join Labour in calling people in Scotland have seen their income tax bills for an end to exploitative zero-hours contracts? Does he reduced. agree that, despite all the talk of recovery, there are still thousands and thousands of Scots on very low and Lindsay Roy (Glenrothes) (Lab): Will the Minister insecure incomes? During the Budget process, has he confirm what impact the imposition of the bedroom tax been fighting in the interests of those Scots or, like the has had on child poverty in Scotland? rest of the Tories, is he concerned only with those at the top? David Mundell: On the spare room subsidy, the hon. Gentleman is aware that the Government have introduced David Mundell: It does not surprise me that the hon. significant contributions in relation to discretionary Lady does not draw attention to the fact that, on the housing payment. He knows as well that the Scottish basis of statistics announced today, employment in Government have significant powers to contribute to Scotland increased by 15,000 over the quarter, and has any mitigation that they think is necessary. increased by 79,000 over the year. The Scottish employment rate rose by 0.3%. The way out of poverty is work, and Guy Opperman (Hexham) (Con): Surely the best way this Government are delivering jobs. to address child poverty is by increasing employment and changing education and skills so that young people Child Poverty in Scotland and England have the skills and aspirations to work their way out of child poverty. 3. Dr Eilidh Whiteford (Banff and Buchan) (SNP): What assessment he has made of the effect of the David Mundell: My hon. Friend is exactly right, Government’s welfare reforms on levels of child poverty which is why I would have thought that even Opposition in Scotland. [903081] Members would welcome the fact that employment in Scotland has increased by 15,000 over the quarter, and The Parliamentary Under-Secretary of State for Scotland that the Scots employment rate rose by 0.3%. (David Mundell): The Scottish Government child poverty strategy report was published in September 2013 and Mr Russell Brown (Dumfries and Galloway) (Lab): states that child poverty in Scotland is at its lowest level Child poverty has long-lasting effects. By the age of 16, since 1994. Welfare reform will be subject to the normal children receiving free school meals achieve significantly policy review process in due course. lower exam grades than their wealthier peers, and they leave school with fewer qualifications, which translates Dr Whiteford: I am appalled by the Minister’s into lower earnings over the course of their working complacency. He should be aware that more than half lives. Will the Minister speak with the Secretary of State the children in poverty in Scotland have working parents, for Work and Pensions and demand a proper start in and that the Child Poverty Action Group estimates that life for all children, something that is threatened by this 100,000 more children will be pushed into poverty as a Government’s welfare reform programme? consequence of welfare reform. Why do his Government think that it is okay to make children pay the price David Mundell: I do not accept the claim that this of austerity, and does he think that it is a price worth Government are responsible for child poverty. I agree paying? with the hon. Gentleman’s Dumfries and Galloway 765 Oral Answers19 MARCH 2014 Oral Answers 766 council colleague, Marion McCutcheon, who said that Mr Carmichael: Indeed. We see Scotland’s constitutional the only solution to child poverty is work. That is what position as an evolving one. The experience to which my this Government are delivering, with 15,000 more people right hon. Friend points is exactly the same as that in employment over the past quarter. which I and my constituents see. Week in, week out, the Scottish Government take power and influence away Scottish Independence from constituencies and communities such as ours, which know best what will work in growing their economies, and what we get is what people in Edinburgh think we 4. Dr Thérèse Coffey (Suffolk Coastal) (Con): What need, rather than what we want. assessment he has made of the financial benefits for Scotland of being part of the UK. [903082] Mr Speaker: I ask the Secretary of State to face the House so that we get the full benefit of his mellifluous The Secretary of State for Scotland (Mr Alistair tones. Carmichael): As part of the United Kingdom, Scotland’s economy is doing well. We benefit from being part of Ian Murray (Edinburgh South) (Lab): There are tens the large, integrated UK domestic market. of thousands of financial services jobs in my constituency, and my constituents are getting increasingly upset by Dr Thérèse Coffey: I thank my right hon. Friend for the uncertainty around the independence referendum that answer. He illustrates very clearly the benefits of and the fact that many financial institutions might leave Scotland staying in the United Kingdom, which will be Scotland. What can the Secretary of State say to my good for everybody in this country. Having already constituents to ensure them that those jobs will not only mentioned the private sector recovery and jobs, does he stay, but increase in the future? agree that the Barnett formula provides a generous amount of public sector funding? Mr Carmichael: The best way to ensure that those jobs stay is to vote no on 18 September and ensure Mr Carmichael: Indeed. The Barnett formula has that Scotland remains part of the United Kingdom. In been part of Scotland’s political landscape for almost recent weeks we have seen a growing number of 40 years and delivers a good level of public spending for companies—Standard Life, Royal Bank of Scotland people in Scotland—in the region of £1,000 per head and Alliance Trust Ltd—explaining that, if Scotland each year over the figure for the rest of the United was to become a foreign country, as good Scottish Kingdom. That reflects Scotland’s distinctive needs. companies operating through the whole of the United That is why it is here to stay. Kingdom, they would be required to remove their headquarters from Scotland to the rest of the United Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) Kingdom. That would not be good for Scotland’s economy. (SNP): There is huge and growing inequality. Staggeringly, according to Oxfam, five families in the UK own as Currency Union much as 20% of the population do. The Financial Times stated on Monday that the burden of austerity has fallen most heavily on the least well-off. Can the Secretary 5. Mel Stride (Central Devon) (Con): What recent of State explain to the growing number of people using discussions he has had with the Scottish Government food banks in Scotland the benefits of being in the UK? on the prospect of a currency union with an They are not better together; they are at the food bank. independent Scotland. [903083]

Mr Carmichael: No subject, apparently, is so complex 6. Andrew Bridgen (North West Leicestershire) (Con): or involved that it cannot be trivialised by the Scottish What recent discussions he has had with the Scottish nationalists. The reasons people have to resort to using Government on the prospect of a currency union with food banks are complex, and many of them have more an independent Scotland. [903084] to do with the difficulties they face in work than with being on benefits. I am quite prepared to listen to 8. Mark Menzies (Fylde) (Con): What recent representations from every part of the House about discussions he has had with the Scottish Government what the Government can do, but frankly I do not on the prospect of a currency union with an expect to hear anything constructive from the hon. independent Scotland. [903087] Gentleman. The Secretary of State for Scotland (Mr Alistair Mr Charles Kennedy (Ross, Skye and Lochaber) (LD): Carmichael): I have not had any discussions with the Does my right hon. Friend agree that there is more than Scottish Government about the prospect of a currency a sense of irony about the fact that the devolution union. The Chancellor, the Chief Secretary to the Treasury cause—to maintain but reform the United Kingdom—was and the shadow Chancellor have all said that there will based largely on the correct analysis that too many not be a currency union. The only way to keep the economic decisions were being concentrated here in pound is to stay in the United Kingdom. London. Yet, now in Scotland, if we look at Highlands and Islands Enterprise and the Crofting Commission, Mel Stride: Alex Salmond claims that an independent to take just two examples, we see that too many economic Scotland will still use the pound. Given that there is no decisions are being centred politically in Edinburgh? likelihood of a currency union between the remainder Does he agree that Scotland’s long-term financial benefit of the United Kingdom and any future independent is in the UK, but that we also need a more devolved Scotland and that Scotland would therefore not have Scotland? the backing of the lender-of-last-resort facility of the 767 Oral Answers19 MARCH 2014 Oral Answers 768

Bank of England, does my right hon. Friend agree that sort of transaction costs that the hon. Gentleman is such a path is disastrous for Scotland—particularly its talking about. He needs to listen to the experts and tell financial and banking sector? us what he is going to do instead.

Mr Carmichael: Indeed. If Scotland made herself a Sir Menzies Campbell (North East Fife) (LD): Does foreign country to the rest of the United Kingdom, it not tell us all we need to know about those arguing for there would be no question of the Bank of England and independence that when the Governor of the Bank of the taxpayers who underpin it continuing to stand England, in an impartial and carefully produced speech, behind banks headquartered in that foreign country. draws attention to the reservations he has about a That simply does not happen. As we have already currency union, he is dismissed out of hand by the explained, a number of financial services and banking Scottish National party? companies north of the border have rightly identified that as a risk to their continued future governance. Mr Carmichael: In that respect, the Governor of the Bank of England is in very good company—he is with Andrew Bridgen: Following the First Minister’s admission the President of the European Commission, the Prime at the weekend that his own fiscal commission working Minister of Spain and the permanent secretary to the group is looking at not only a plan B but a plan C, D, E Treasury. The truth of the matter is that, day by day, and F, is it not the truth that the Scottish National party bad news comes to those who want to remove us from can offer no certainty for the people of Scotland about the United Kingdom, and they are just not prepared to currency provision for an independent Scotland? They listen to it. cannot keep the pound, because— Mr William Bain (Glasgow North East) (Lab): If and Mr Speaker: Order. The hon. Gentleman has had his when the Secretary of State does speak to the First say, but it did not remotely resemble a question. Minister, will he remind him that any attempt to use sterling informally without a central bank would mean Mr Carmichael: On currency, we started with a White that an independent Scotland would not meet the terms Paper and we have now been given an alphabet soup. I of entry to the European Union? What could be more cannot believe that the First Minister does not have a damaging for jobs and growth in Scotland than that? plan B; I cannot believe that, six months from an independence referendum about which he appears to be Mr Carmichael: The nationalists are always very keen serious, he has not actually decided what that is going to on telling us about their vision. In fact, if we were to use be. What worries me is that he seems so reluctant to tell sterling without the central bank in the Bank of England, the people of Scotland. the relationship between Scotland and the rest of the United Kingdom would be like that between Panama Mark Menzies: The First Minister, Alex Salmond, and the United States of America. That is not a vision; has previously described the pound as a millstone around it is a nightmare. Scotland’s neck and insisted that it was sinking like a stone. Does my right hon. Friend know what has changed? Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab): The Minister will be aware Mr Carmichael: My hon. Friend invites me to look that there is nothing more important in a pensions into the workings of the First Minister’s mind—not a system than—[Interruption.] particularly edifying enterprise, and one that goes beyond even my ambition. My recollection is that when the Mr Speaker: Order. Perhaps the House can calm First Minister made that remark, he wanted us to be down and the hon. Gentleman can actually have the independent in Europe. I cannot remember whether advantage of free speech, which is what this House is that was the time when we were going to be part of the about. arc of prosperity, but it seems to be all change these days. The truth of the matter is that the First Minister does not care about the pound or anything other than Gregg McClymont: I am delighted by such a reception, independence. Mr Speaker. The Minister will be aware that nothing is more Stewart Hosie (Dundee East) (SNP): On 29 January, important as regards the certainty of a pensions system the Financial Times reported that on independence, than clarity about the currency in which pensions are with £100 billion of sales, Scotland would be one of the paid out and saved. Does he therefore agree that the top 35 exporting countries in the world. If the Secretary lack of clarity from the Scottish nationalists about the of State has his way—I am sure that he will not—when currency that an independent Scotland would use is does he intend to run around to the good people of very damaging for Scots and their pensions? England explaining the impact on their currency when £100 billion of Scottish export sales are no longer Mr Carmichael: Indeed. The future of the pensions receipted in sterling? industry and the security of pensions for Scots post- independence is one of the biggest risks that comes Mr Carmichael: The hon. Gentleman should listen to from that lack of clarity. It is quite remarkable that six some of the experts. The Institute of Directors, for months out from the independence referendum date, we example, has said in terms, that the well rehearsed risks still do not know what the nationalists are offering us by of a currency union far outweigh the problems of the way of a currency. 769 Oral Answers19 MARCH 2014 Oral Answers 770

Scottish Devolution Model (England) Graeme Morrice: The Secretary of State will be aware that the Scottish Government’s own figures show that 7. Mr Graham Allen (Nottingham North) (Lab): oil revenues dropped by £4.4 billion last year. Does he What discussions he has had on the potential benefits agree, therefore, that the figures serve to demonstrate of replicating aspects of the Scottish devolution model the weakness of basing the economic argument for a in England; and if he will make a statement. [903086] separate Scotland on unstable oil revenues?

The Parliamentary Under-Secretary of State for Scotland Mr Carmichael: The figures illustrate perfectly the (David Mundell): The devolution settlement is designed opportunities that come to Scotland from being part of to meet the needs and wishes of the people of Scotland. the United Kingdom. For an economy that is highly This Government are committed to devolving power dependent on offshore oil and gas, the size of the UK across the United Kingdom to the most appropriate economy offers us the opportunity to absorb the peaks level, taking account of local need. In England, we are and troughs that are inevitably part of that commodity. achieving this in many ways, including the city deals programme in which Nottingham is a participant.

Mr Allen: A lasting democratic settlement in the UK PRIME MINISTER must be based on the twin principles of union and devolution. Does the Minister share my view that separatism The Prime Minister was asked— will be weaker and devolution will be stronger and more believable, not least to the Scottish people, if its benefits Engagements are spread to England too? Q1. [903128] Mrs Cheryl Gillan (Chesham and Amersham) David Mundell: This Government are committed to (Con): If he will list his official engagements for devolution within England, and the hon. Gentleman is Wednesday 19 March. a prominent advocate of that. He recognises, as I do, that independence in Scotland is the end of devolution The Prime Minister (Mr David Cameron): I am sure there. that the whole House will wish to join me in paying tribute to Tony Benn, who died last week. He made Tim Farron (Westmorland and Lonsdale) (LD): Does many memorable speeches in this House, and alongside my right hon. Friend agree that devolution should a record of ministerial, parliamentary and public service, absolutely take place in England, but it should be he was also a great writer, a great diarist and a great chosen by the people of its regions and not imposed by campaigner, no matter whether one agreed with his central Government as it was by the previous Labour views or not. He will be missed by both sides of the Deputy Prime Minister? House, and our thoughts are with the right hon. Member for Leeds Central (Hilary Benn) and other members of David Mundell: I agree that the form that devolution his family at this time. takes within England—and, indeed, within the rest of I am sure that the House will also join me in paying the United Kingdom outwith Scotland—is a matter for tribute to the fantastic Team GB winter Paralympics the people of the rest of the United Kingdom. team, following its great success at the Sochi games. Special congratulations must go to Kelly Gallagher, Pete Wishart (Perth and North Perthshire) (SNP): who won our first ever gold medal at the winter Paralympics, There are, of course, new proposed models of devolution and Jade Etherington, who is now our most successful on offer. Yesterday we had Labour’s devo-dog’s breakfast winter Paralympian, with four medals. as an offer to the Scottish people. Does the Minister find anything attractive in Labour’s chaotic plans? Will This morning, I had meetings with ministerial colleagues they form the basis of the joint proposition, and if not, and others. In addition to my duties in this House, I why not? shall have further such meetings later today.

David Mundell: What we know about the SNP’s position Mrs Gillan: I am sure that the whole House will want is that it opposes devolution to Scotland and devolution to be associated with the remarks made by the Prime within Scotland with its centralist agenda. Minister today about Tony Benn, and his congratulations to the Paralympics team. The Paralympics started, of North Sea Oil Industry course, in Buckinghamshire. Today, unemployment has fallen by 63,000, with 9. Graeme Morrice (Livingston) (Lab): What youth and long-term unemployment also falling, and assessment he has made of the potential effect of that has been evident in Chesham and Amersham, Scottish independence on investment in the North sea where we have seen growth in the private sector continue. oil industry. [903088] Does my right hon. Friend agree that we must sustain this growth by continuing to tackle the deficit and The Secretary of State for Scotland (Mr Alistair support industry, and continue with our long-term economic Carmichael): We have already heard from senior business plan? figures that independence presents risk for investment in the North sea oil industry. The sector is facing new The Prime Minister: My right hon. Friend is absolutely challenges, and the United Kingdom offers the strongest right about Buckinghamshire’s link with the Paralympic basis to unlock the investment needed and ensure that games. The flame from Stoke Mandeville came to No. 10 we maximise its potential in future. Downing street recently. She is also absolutely right 771 Oral Answers19 MARCH 2014 Oral Answers 772 about the unemployment figures, which show employment and Russian officials targeted by asset freezes and travel going up and unemployment coming down, a record bans will also be extended at the EU Council meeting number of people in work in our country, a record tomorrow. Will the Prime Minister tell the House the number of women in work in our country, and youth circumstances in which he would also support additional, unemployment coming down too. What is particularly wider economic and trade sanctions on the Russian remarkable over the last quarter is that private sector Federation? employment has gone up by 118,000 and public sector employment has gone down by just 13,000, so 10 times The Prime Minister: As we discussed previously in more jobs have been created in the private sector. The the House, the European Union set out some very clear important thing is what that means for Britain’s families. triggers. We said that if the Russians did not take part For millions of people, it means a pay packet, the in a contact group with the Ukrainian Government to chance of work, the chance of dignity, the chance of take forward discussions, asset freezes and travel bans stability and security, and I hope it will be welcomed should follow. Those were put in place at the Foreign across the House. Affairs Council on Monday, and I believe further action on that front should be taken at the European Council Edward Miliband (Doncaster North) (Lab): Let me of Ministers, which I will take part in on Thursday. begin by joining the Prime Minister in paying tribute to I also think we should be responding to the fact of Tony Benn. The death of Tony Benn represents the loss this annexation. We said that if there is further action to of an iconic figure of our age. He will be remembered as destabilise Ukraine—and this annexation is that action— a champion of the powerless and a great parliamentarian further consequences need to follow. We need to set that who defended the rights of Back Benchers in this House out on Thursday, in concert with our European partners. against the Executive, whichever Government they came At the same time, we need to put down a very clear from. He spoke his mind and he spoke up for his values. warning that if there is further destabilisation—for Everyone knew where he stood and what he stood for, instance, going into eastern Ukraine in any way—we and that is why he won respect from all Members of the will move to a position of the sorts of economic sanctions House. All our condolences go to his children, Stephen, we discussed in the House last week. Hilary, Melissa and Joshua, and to his wider family. In Edward Miliband: The Prime Minister should know their different ways, they take forward what he taught that he will have the support of Members on this side of as a father, a socialist and as someone of great decency. the House for the toughest possible diplomatic and I also want to join the Prime Minister in paying economic measures against the Russian Federation, tribute to the fantastic Team GB winter Paralympics given the totally illegitimate action it has taken. team, following its great success in Sochi. In particular, I also welcome yesterday’s announcement that the special congratulations go to Kelly Gallagher and Jade G7 allies will gather next week at The Hague. Given Etherington. Russia’s actions, it seems inconceivable that it can remain This weekend we saw a referendum in Crimea take in the G8, so does the Prime Minister now agree that a place in the shadow of Russian military intervention in meeting of the G8 should go further and explicitly Ukraine. Does the Prime Minister agree that the referendum decide to suspend Russia from the group of G8 advanced was illegal, illegitimate and in direct violation of the economies? terms of the Ukrainian constitution? Does he also share my deep concern following the news that a Ukrainian The Prime Minister: I was one of the first people to serviceman was shot and killed at a military base in say that I thought it was unthinkable for the G8 to go Crimea yesterday? ahead as planned. We were one of the first countries to suspend all preparations for that G8 and I strongly The Prime Minister: The right hon. Gentleman is support the meeting of G7 countries that will take place absolutely correct to say that the referendum in Crimea on Monday. It is important that we move together with is illegitimate and illegal. It was spatchcocked together our allies and partners, and we should be discussing in 10 days and held at the point of a Russian Kalashnikov. whether or not to expel Russia permanently from the This cannot be accepted or legitimised by the international G8 if further steps are taken. That is the meeting we will community. have on Monday and I think that is the right way to proceed. We should be absolutely clear about what has happened: it is the annexation, effectively, of one country’s territory Q2. [903129] Dr Julian Huppert (Cambridge) (LD): by another country. We must also be absolutely clear May I add a few words about Tony Benn? He was a about our interest, which is to see a rules-based international great man and it was my pleasure to work with one of system where countries obey the rules. If we turn away his sons, Stephen, for a number of years on science from this crisis and do not act, we will pay a very high policy. price in the longer term. We should be clear that this Lifting the income tax threshold to £10,000 so far has referendum is illegitimate, we must be clear that lifted 2.7 million poorly paid people out of paying any consequences must follow and we should work with our income tax, making a difference to them. Is the Prime European partners and the United States for a strong, Minister pleased that he abandoned his pre-election consistent and robust response. objection to that and that he is implementing an excellent Lib Dem policy? Edward Miliband: I thank the Prime Minister for that answer and would like to ask him about the meetings The Prime Minister: The hon. Gentleman brings the that are coming up. The White House has indicated that House together in his usual way. What I am sure we its sanctions will be expanded, and I am sure the whole can agree on is that it has been an excellent move by a House will support the idea that the list of Ukrainian Conservative Chancellor in a coalition Government to 773 Oral Answers19 MARCH 2014 Oral Answers 774 make sure that you do not pay tax on the first £10,000 of The Prime Minister: I am very happy to look at the income you earn. That benefits people earning all case that the hon. Lady mentions. Clearly, this is an the way up to £100,000. It is worth, so far, more than important issue. Anyone who has had a disabled child £700 to a typical income tax payer and it is highly worth knows the enormous challenges that that brings. I am while, and I look forward to hearing what the Chancellor very happy to look at the case that she raises, and get has to say. back to her about it.

Q4. [903131] Sir Alan Haselhurst (Saffron Walden) Sir Gerald Kaufman (Manchester, Gorton) (Lab): Is (Con): Will my right hon. Friend acknowledge that the right hon. Gentleman aware that this week I received the benefits of economic recovery in my constituency from a Palestinian friend an e-mail telling me that the are somewhat tempered by uncomfortable pressures Israelis assassinated a friend in his house and that on housing development and inadequate rail infra- “another brother of a friend has been shot dead by the army. So structure? Notwithstanding the need for these matters we spent our time from one funeral to another”? to be dealt with quickly, is it not increasingly clear When the right hon. Gentleman was in Israel last week, that there is a need to do more to stem the continuing did he raise with Netanyahu this constant stream of flow of population to the south-east, by imaginative killing of innocent Palestinians by the Israelis, and what measures that will spread the benefits of recovery is he going to do about it? throughout all regions of the country?

The Prime Minister: I did not raise that specific case, The Prime Minister: My right hon. Friend makes an which the right hon. Gentleman quite rightly raises in important point. As I said, we want a balanced recovery. the House today, but I did raise with the Israeli Prime Our long-term economic plan is working. An important Minister the importance of how the Israelis behave in part of that long-term economic plan is the infrastructure the west bank and elsewhere, and I raised the issue of investment that we are making. Obviously, HS2 is important settlements, which I believe are unacceptable and need in rebalancing between north and south, but let us be to stop. clear: we are spending three times more on other transport schemes in the next Parliament as we are on HS2, and I also strongly supported both the Israeli Prime Minister that includes projects such as rail electrification to and the Palestinian President in their efforts to find a Bristol, Nottingham and Sheffield, and between Liverpool peace. There is a prospect and an opportunity now, and Manchester. All of these things can make a difference, because the Americans are leading a set of talks that and they are all part of our plan. could lead to a framework document being agreed, and it is in everyone’s interest to put all the pressure we can Edward Miliband: In recent days, the country’s leading on both the participants to take part and to get on with mental health charities have joined together to warn of these negotiations, which I believe would mean so much deep concerns about mental health services. Members to ordinary Israelis, ordinary Palestinians and, indeed, from across this House have spoken out bravely on this the rest of us. subject, including about the impact on those who experience mental heath problems, their families and our country. Q3. [903130] Andrew Stephenson (Pendle) (Con): Does the Prime Minister agree that mental health should Unemployment in Pendle has now fallen over the past have equal priority with physical health in our heath 12 months from 4.9% down to 3.8%, helped by a care systems? resurgence in British manufacturing. Compared with the 1.8 million manufacturing jobs lost under the previous The Prime Minister: First, let me agree with what the Labour Government, would our Prime Minister agree right hon. Gentleman said about the debate that took that our long-term economic plan is delivering for the place in this House about mental health. I read the north of England? debate carefully and thought that a number of hon. Members took some very brave and bold steps to talk about issues and problems in their own lives. I thought The Prime Minister: My hon. Friend makes an important that was an incredibly brave and right thing to do. In point, which is that we want to have a balanced recovery: terms of whether mental health should have parity of we want to see growth and employment right across the esteem with other forms of health care, yes it should, country. It is worth noting that since 2010, 80% of the and we have legislated to make that the case. rise in private sector employment has taken place outside London. The unemployment rate in the north-west, Edward Miliband: I thank the Prime Minister for that where my hon. Friend sits for a seat, is lower than it is in answer. Let me ask him about some specifics that suggest London. We are beginning to see a balanced recovery, that we are moving away from the equal footing that we but we have got to do everything we can—backing both want to see. The mental health share of the NHS apprenticeships, backing industry—to make sure that budget is falling, services for children and young people continues. are being squeezed, there are fewer mental health beds, and more young people are being treated on adult Yasmin Qureshi (Bolton South East) (Lab): Primodos psychiatric wards. We know that those things are not was a drug given to women to determine pregnancy in just bad for the individuals concerned, but can store up the 1960s and 1970s. Its potency is 18 times that of bigger costs for the future. Does the Prime Minister morning after pills. As a result, thousands and thousands agree that they really should not be happening? of babies were born with deformities. Up to now, there has never been a public inquiry or compensation for the The Prime Minister: First, taking the big picture on victims. Will the Prime Minister meet me, my constituent health spending, we have decided to increase health Nicola Williams and a representative of the victims’ spending, rather than reduce it. Health spending is up association to discuss this? by £12.7 billion across this Parliament. We have legislated 775 Oral Answers19 MARCH 2014 Oral Answers 776 for parity of esteem, as I have said, and we have put in not come into effect until September 2015. Will the place proper waiting times and disciplines for things Prime Minister get a grip on this policy and help such as mental health therapies, which were not there hard-working families with their child care costs now, before. Of course, there is still further to go. We need in this Parliament, because of the cost of living crisis commissioners to really focus on the importance of that they are facing today? mental health services—but the money is there, the legal priority is there; we need the health service to The Prime Minister: I am afraid that the hon. Gentleman respond. is wrong on both counts. We are seeing some easing in cost pressures in England on child care costs, but I am afraid in Wales they are still going up. He might want to Edward Miliband: The problem is that the mental talk to the Welsh Assembly Government about that. health budget has fallen for the first time in a decade. It is not getting the share of health spending that it needs. The point that the Deputy Prime Minister and I were I urge the Prime Minister to look at the specifics that I making yesterday was that we want to help hard-working have raised. We need to ensure that the consensus that families with their child care costs. Therefore, from clearly exists in this House is reflected in the daily 2015, £2,000 on child care costs can be saved for every decisions that are made up and down the country about child. Is it not interesting, Mr Speaker, that we can now mental health in the health service. Will the Prime hear that the Labour party opposes that move? Clearly, Minister agree to enshrine equality for mental health in it does not welcome it, so there will be a very clear the NHS constitution in order to send a message to choice at the election: if you vote for parties on this side decision makers about the priority that mental health of the House, you get help with child care, and if you deserves and to ensure that those who are affected by vote Labour, you get nothing. mental health problems get better access to the treatment Q6. [903133] Nigel Mills (Amber Valley) (Con): Will and care that they need? the Prime Minister join me in praising Conservative- run Amber Valley borough council, which has frozen The Prime Minister: The right hon. Gentleman raises its council tax for a fifth straight year, providing real an important point not just about parity of esteem for help to hard-working people, in stark contrast to the mental health in law, but about what we see on the three Labour parts of the area, where it is going up this ground. We have put £400 million into talking therapies, year? which are a very important part of mental health provision. Mental health provision is referenced very clearly in the The Prime Minister: My hon. Friend is absolutely mandate that is given to NHS England, which in many right. We should do everything we can to help hard-working ways is the absolutely key document for the health people meet their budgets and meet their needs. That is service. He is absolutely right that a culture change in why councils’ freezing council tax provides a huge amount favour of mental health and helping with mental health of help. The Government are doing their part by freezing problems is still needed in the way the health service fuel duty, by raising the personal allowance and by works. On that, there can be all-party support. doing everything we can to help hard-working people get on with their lives. Q15. [903142] Gordon Henderson (Sittingbourne and Mike Kane (Wythenshawe and Sale East) (Lab): The Sheppey) (Con): Many small business entrepreneurs in Prime Minister assured the House on 27 November that Sittingbourne and Sheppey have personal incomes the Government had exempted disabled people who below the current welfare cap. With that in mind, will need an extra bedroom from the bedroom tax. Does he my right hon. Friend consider doing more for small think it is right that my constituent Mr Gunning has to businesses by reducing the burden of regulation, pay the tax with his disability living allowance because lowering tax and increasing thresholds, as well as by he lives in Tory Trafford? offering them extra assistance in taking on more apprentices? The Prime Minister: What I said to the House was absolutely correct, and I am happy to repeat that today, The Prime Minister: My hon. Friend makes an important but there are obviously also the discretionary housing point, which is that a key part of our long-term economic payments, which are there for local councils to deal with plan is to help small businesses take more people on. difficult cases. I would recommend that the hon. Gentleman Absolutely key to that is the employment allowance—the takes that up with the council. cut in national insurance contributions of £2,000—that Q7. [903134] Bob Stewart (Beckenham) (Con): Russia will come in this April. It is very important that we all is not just expanding into the Crimea, but its ships, encourage all small businesses to take up that money submarines and aircraft are increasingly appearing off and therefore to take on more people. At the same our shores. Bearing in mind that we have great news time, we are abolishing employer’s national insurance on the economy and that the Ministry of Defence contributions for the under-21s from April 2015. sent back an underspend last year, is it possible, Companies, including those in his constituency, can as suggested by the House of Commons Defence therefore start planning to take on more people. Committee, that we could have a new maritime patrol aircraft before the next strategic defence and security Q5. [903132] Albert Owen (Ynys Môn) (Lab): Last review? week, the Deputy Prime Minister wrongly told the House that child care costs were coming down in The Prime Minister: I say to my hon. Friend, first, England, while they continued to go up in Wales. The that we are able to have these sorts of discussions and House of Commons Library says that that is not considerations only because we have sorted out the the case. This week, the Deputy Prime Minister is defence budget and got rid of the enormous deficit in offering a pre-election bribe on child care, which will it, and we have a successful and growing economy. In 777 Oral Answers19 MARCH 2014 Oral Answers 778 terms of maritime patrol, we are currently using the The Prime Minister: I am always delighted to visit airborne warning and control system aircraft, and of Tamworth, not least to pay homage to the statue of course the Sea King, Merlin and Lynx helicopters, as Sir Robert Peel. I would be happy to go back and do well as Royal Navy ships and submarines. We work in that. What my hon. Friend says about the manufacturing very close partnership with our NATO allies, but I am revival is important, because we really can see it now in sure the Ministry of Defence will be listening to my the west midlands, with the news from Jaguar Land hon. Friend’s representations for the forthcoming SDSR. Rover, the new engine plant that is opening up, and also what he says about BMW. One in four BMWs, I think, Steve McCabe (Birmingham, Selly Oak) (Lab): Are now has a British-made engine. That is great news for the 24 Tory tax rises evidence of the Prime Minister’s what we want to see: more jobs making things, more tax-cutting instincts? jobs exporting things, and a manufacturing revival in the UK. The Prime Minister: This is a great Labour campaign—I spotted it this morning. They have enumerated a number Q10. [903137] Kerry McCarthy (Bristol East) (Lab): of tax increases that we had to put in place in order to Speaking for myself, my right hon. Friend the Member deal with the deficit. Just to remind people, we said it for Bristol South (Dawn Primarolo) and the people of was right to deal with the deficit with 80% spending Bristol, whom Tony Benn served so well for 30 years, reductions and 20% tax increases. There is a problem, may I join in paying tribute to him and expressing though, with this Labour campaign. When the spokesman condolences to his family? was asked, “Would you change any of these tax increases?” Tony Benn was from a very privileged background, the answer was no. I am not the world’s biggest expert in yet he spent his political life fighting for the working campaigns, but I would say that was a bit of a turkey. people. With a cost of living crisis, wages falling by £1,600 a year, people queuing at food banks and so Q8. [903135] Ian Swales (Redcar) (LD): I welcome the much that requires the Prime Minister’s attention, why Prime Minister’s help for those hit by flooding, but I does he seem so obsessed with plans to bring back fox am told that it applies only to areas affected since hunting by the back door for the benefit of a privileged December. My constituency had its worst ever flooding few? last September. Will he visit the area, and will he extend his help to the homes and businesses that are The Prime Minister: I join the hon. Lady in paying still suffering? tribute to Tony Benn as a constituency MP. He was always an incredibly busy Back Bencher and Minister, The Prime Minister: I absolutely understand the hon. but he never forgot about his constituents. He was also Gentleman’s concern, because the sea surge that took very good with a friendly, helpful word for new Back place at Redcar and across Teesside last September led Benchers, whatever side of the House they happened to to some of the worst floods that have been seen in the be on. I am sure that, like me, many Members experienced area for a long time. What is absolutely key is that we that from him. improve the sea wall to protect properties in Redcar from future flooding. My understanding is that, working In terms of what we are doing to help the poorest in with partners, there is a £30 million investment going our country, the most important thing is getting people ahead across 3 km of coast, which will protect something back to work. We have now seen 1.7 million new private like 1,000 homes. Obviously there may well be more sector jobs under this Government, and that is the best that we need to do, and I am very happy to discuss that way of helping people sustainably out of poverty. As with him. they come out of poverty, they will see a higher minimum wage, and also the ability to earn more money before Mrs Mary Glindon (North Tyneside) (Lab): In 2010, they pay any taxes at all. Those are the Government’s the Chancellor said that the budget deficit would be priorities, that is our long-term plan, and that is what eliminated by 2015. What went wrong? people are going to hear about.

The Prime Minister: What we said we would do was Q11. [903138] Mr John Whittingdale (Maldon) (Con): cut the deficit, and we have cut the deficit. We said we May I join my right hon. Friend in paying tribute to would get Britain back to work, and we are getting Tony Benn, whose ancestral seat of Stansgate is in my Britain back to work. We said we wanted a private constituency? He was held in high regard by my sector-led recovery; we have got a private sector-led constituents, even though they may not have agreed recovery. The hon. Lady asks what went wrong. I can with his views. Is my right hon. Friend aware that give it to her in one word: Labour. today’s figures show that unemployment in Maldon has fallen by 27% since the last election, and does he agree Q9. [903136] Christopher Pincher (Tamworth) (Con): that that is further proof that the Chancellor was This week, BMW announced that it is coming to absolutely right to ignore his critics on the Opposition Tamworth and bringing with it 100 skilled new jobs. Benches and stick to his guns? That is on top of the hundreds of new jobs that are already in the pipeline. When my right hon. Friend The Prime Minister: I thank my hon. Friend for what is next in the midlands, which is the manufacturing he has said. As I said, there is good news in the heart of our country, will he drop into Tamworth unemployment figures about getting women and young and commend our local enterprise partnership and people into work and about falls in long-term Tamworth borough council for helping to deliver our unemployment, but there has also been the largest long-term economic plan and make Tamworth the annual fall in the claimant count—the number of people place in the midlands to do business? claiming unemployment benefit—since February 1998. 779 Oral Answers19 MARCH 2014 Oral Answers 780

Getting people back to work and giving them the young people in school what is available in terms of chance of a job, dignity and security in their lives is apprenticeships and training, and that is exactly what really important. That is what our economic plan is all our National Careers Service is going to do. about. Q13. [903140] Ian Murray (Edinburgh South) (Lab): Alison McGovern (Wirral South) (Lab): At the weekend Are we really all in this together when the Prime a young woman from Eastham in my constituency, Minister thinks that some public sector workers do not Sophie Jones, died of cervical cancer, leaving her family even deserve a 1% pay rise while he signs off on bumper and friends bereft and unable to understand why she pay rises of up to 40% for his own Government’s did not get the smear test that she asked for. Will the special advisers? Does that alone not show that not Prime Minister send his sympathies to her friends and only is the Prime Minister out of touch, but he only family, and will he work with me to ensure that once we stands up for his own privileged few? understand what went wrong, we have the right policies in place to ensure that that does not happen to anyone The Prime Minister: Well, it is interesting: it is 12.30 pm else? and 29 seconds and not a single Labour MP has mentioned the unemployment figures today. Let me answer the The Prime Minister: The hon. Lady is absolutely hon. Gentleman very directly: under our plans, everyone right to raise that case. Many of us will have read about in the NHS will get at least a 1% pay rise, and this is it in the papers at the weekend, and it seems an absolutely something I was told was supported by the Labour tragic case. We have made huge breakthroughs in this party. This is what the leader of the Labour party said: country, under Governments of both parties, in the “we’re talking, actually about a pay increase limited to 1%...as I screening programmes and public health information say, this Labour party is going to face up to those difficult choices that is available, but something seems to have gone we have to make.” wrong in this case. I am very happy to look into it, and How long did that one last? Confronted by a trade to write to the hon. Lady and seek any views that she union campaign, he demonstrates once again his complete has about it too. weakness and unfitness for office.

Q12. [903139] Mr David Ward (Bradford East) (LD): Q14. [903141] Paul Uppal (Wolverhampton South West) Today’s unemployment figures show a reduction in (Con): A recent report into female foeticide suggests Bradford East of 14, which—I concede—is better than that the female population has been reduced in the UK an increase of 14, but is very disappointing nevertheless by 4,500 and worldwide by 200 million. As a proud and leaves us ninth highest for unemployment in the British-Asian father of two daughters, may I ask my country. I recently visited a training provider in right hon. Friend to call for an end to this most Bradford, who said that there were 600 apprenticeship appalling practice? This once taboo subject clearly vacancies in Bradford. Is the Prime Minister confident must end, not just in the UK, but in the world as a that we are doing enough to ensure that young people whole. in particular are aware of apprenticeships, but also prepared to take them on? The Prime Minister: My hon. Friend is absolutely right. It is a simply appalling practice, and in areas such The Prime Minister: My hon. Friend makes a very as that, such as female genital mutilation and such as important point; pockets of quite high unemployment forced marriage, we need to be absolutely clear about are often found right next to areas that have a lot of our values and the messages we send and about these apprenticeships or jobs available. There are two things practices being unacceptable. The Government have that we have to get right. One is that we have to make made clear that abortion on the grounds of gender sure that more of our young people are leaving school alone is illegal. The chief medical officer wrote to all with the key qualifications, including English and maths, doctors on 22 November last year reminding them of which are absolutely vital to taking on an their responsibilities. I am meeting with the chief medical apprenticeship—we need to stress that those subjects officer this afternoon and I will raise this issue with her, are vocational subjects and must be at the heart of and I think it is absolutely right of my hon. Friend to education. Secondly, we need to do more to explain to run this campaign. 781 19 MARCH 2014 Financial Statement 782

year ago, it predicted that growth in 2014 would be Ways and Means 1.8%; at the autumn statement, 2.4%; today, the OBR forecasts growth in 2014 of 2.7%. That is the biggest Financial Statement upward revision to growth between Budgets for at least 30 years. Growth next year is also revised up, to 2.3%; then, it is 2.6% in 2016 and 2017; and with the output Mr Deputy Speaker (Mr Lindsay Hoyle): Before I call gap closed around a year earlier than previously predicted, the Chancellor of the Exchequer, it is convenient to growth returns to around its long-term trend, at 2.5%, remind hon. Members that copies of the Budget resolutions in 2018. Taken together, these growth figures mean our will be available in the Vote Office at the end of the economy will be £16 billion larger than was forecast just Chancellor’s speech. It may also be appropriate to four months ago. remind hon. Members that it is not the norm to intervene on the Chancellor of the Exchequer or the Leader of There is another prediction the OBR makes today the Opposition. that the House will want to know about. Six years ago, Britain suffered a great recession. We had the biggest bank bail-out in the world. We had the biggest deficit 12.33 pm since the war. We suffered the deepest recession in The Chancellor of the Exchequer (Mr George Osborne): modern times—or as the shadow Chancellor put it, I can report today that the economy is continuing to some mistakes were made. But later this year the OBR recover, and recovering faster than forecast. We set out expects Britain to reach the point when our economy is our plan, and together with the British people we held finally larger than before it collapsed six years ago. That our nerve. After the mess we were left, we are putting is because we are now growing faster than Germany, Britain right, but the job is far from done. Our country faster than Japan, faster than the United States—in still borrows too much; we still do not invest enough, fact, there is no major advanced economy in the world export enough or save enough, so today we do more to growing faster than Britain today. put that right. But we should be alert to the risks. The euro area is This is a Budget for building a resilient economy. If slowly recovering, but as the OBR cautions today, you are a maker, a doer or a saver, this Budget is for you. “further damaging instability remains possible”. It is all part of a long-term economic plan—a plan that There is volatility in emerging markets, and while for is delivering security for the people of this country. I now the OBR does not expect the situation in Ukraine have never shied away from telling the British people to have a “large impact” on us, it does warn that an about the difficult decisions we face, and just because escalation risks higher commodity prices, higher inflation things are getting better, I do not intend to do so today. and lower growth. It is a reminder of why we need to Yes, the deficit is down by a third, and now in the build our economy’s resilience. coming year it will be down by a half, but it is still one of At home, the biggest risk is clear: abandoning the the highest in Europe, so today we take further action to economic plan that is working. And nowhere is the bring it down. success of that plan more evident than in job creation. Yes, investment and exports are up, but Britain has Today again we are reminded that the most important 20 years of catching up to do, so today we back businesses consequence of our plan is more people in work, with who invest and export. Yes, manufacturing is growing each job meaning a family more secure. Some in this again, as my hon. Friend the Member for Pendle (Andrew House predicted that our plan meant a million jobs Stephenson) just reminded us, and jobs are being created would be lost. They were spectacularly wrong. The pace across the country, but manufacturing halved under the of net job creation under this Government has been last Government, with all bets on the City of London. three times faster than in any other recovery on record: So today, we support manufacturers and back all regions 1.3 million more people in work. The latest figures of our country. While as a nation we are getting on top today show a staggering 24% fall in the claimant count of our debts, for many decades Britain has borrowed in just one year, and the fastest fall in the youth claimant too much and saved too little, so in this Budget we make count since 1997. The OBR now forecasts one and a sure hard-working people keep more of what they earn half million more jobs over the next five years, and more of what they save. unemployment down from the 8% we inherited to just Yesterday we set out our support for parents with over 5%., and the OBR predicts earnings will grow tax-free child care. Today support for savers is at the faster than inflation this year and in every year of the centre of this Budget, as we take another step towards forecast. That is why the country can afford a real-terms our central mission: economic security for the people of increase in the national minimum wage. This is a Britain. Government whose plan is delivering jobs. We now have Let me turn to today’s forecasts from the Office for a record number in work; a record number of women in Budget Responsibility. I am grateful to Robert Chote, work; and for the first time in 35 years, a higher employment Steve Nickell and their team, and thank Graham Parker rate than the United States of America. That is what we for agreeing to serve with them for another term. It is a mean when we say we are getting Britain working. credit to the OBR that we now take it for granted that There can be no economic security if there is no the figures presented at this Dispatch Box are not control of the public finances. Before I presented my fiddled but fair and independent. A year ago at the first Budget to this House, the Government were borrowing Budget, the OBR forecast the economy to grow by just £1 in every £4 they spent, and we were faced with the 0.6% in 2013. it now confirms that it grew by three times threat of a sovereign debt crisis. We have taken difficult as much. At the autumn statement, it significantly decisions, each and every one of which was opposed. revised up its expectations for future growth. Today I But thanks to those decisions, the IMF now say that we can tell the House it is revising up its forecast again. A are achieving the largest reduction in both the headline 783 Financial Statement19 MARCH 2014 Financial Statement 784

[Mr George Osborne] risks in the housing market. To enhance our resilience and protect us from economic shocks, we will also and the structural deficits of any major advanced economy continue rebuilding our foreign exchange reserves. in the world. There were those who said repeatedly that Those reserves are now 50% higher than when we came the deficit was going to go up. Instead, I can tell the to office. House that the OBR has revised down the underlying Of course, the prerequisite of sound money is a deficit in every year of its forecast. Before we came to sound currency, and the £1 coin has become increasingly office the deficit was 11%. This year it says it will be vulnerable to forgery. It is now among the oldest coins 6.6%—lower than forecast and down a third; next year, in circulation, and one in 30 £1 coins is counterfeit. 5.5%—down a half; then it will fall to 4.2%, 2.4% and That costs businesses and the taxpayer millions each reach 0.8% in 2017-18. In 2018-19, it is forecasting no year, so I can tell the House that we will move to a new, deficit at all; instead, at plus 0.2%, a small surplus. But highly secure £1 coin. It will take three years. We will only if we work through the plan. consult with industry. Our new £1 coin will blend the The Government’s fiscal mandate is met, and continues security features of the future with inspiration from to be met a year early, yet while the underlying structural our past. In honour of our Queen, the coin will take deficit falls, it falls no faster than was previously forecast, the shape of one of the first coins she appeared on: the despite higher growth. This goes to the heart of the threepenny bit. A more resilient pound for a more argument this Government have made: faster growth resilient economy. alone will not balance the books. Securing Britain’s economic future means there will have to be more hard Sound money depends, too, on sound public finances. decisions—more cuts. The question for the British people We are entering a critical phase and we must learn from is: who has the credibility to deliver them? the past. Every time a post-war Government have embarked Let me turn to the underlying cash borrowing numbers. on public spending cuts, real spending has risen back to Britain was borrowing £157 billion a year before we its previous heights within three years. Sure enough, came to office. This year we expect to borrow £108 billion. there are those today who say: “Ease up, spend more, That is £12 billion less than forecast a year ago. Indeed, borrow more.” That would mean debt rising towards even since the autumn statement the OBR has revised 100% of GDP, undermining growth. It would be a huge down borrowing in every single year. In 2014-15 it says mistake, and we are not going to let that happen. it will fall to £95 billion. Then it falls again to £75 billion Many Chancellors faced with a recovering economy in 2015-16, then £44 billion, and then down to £17 and improved borrowing forecasts before an election billion. In 2018-19 we will not be borrowing at all—we would be tempted to squander the gains. I will not do will have a small surplus of £5 billion. that today. These gains were hard won by the British Taken together, these new figures mean Britain will people, and we are not going to jeopardise their economic be borrowing £24 billion less than was forecast. That is security. Britain is not going back to square one, so in more than we spend in an entire year on the police and this Budget all decisions are paid for. Taxes are lower criminal justice system. Lower borrowing and a smaller but so, too, is spending, for we must bring our national deficit mean less debt. While we meet the debt target debt substantially down. Analysis published today shows one year late as before, the OBR has revised down that just running a balanced current budget does not national debt in every single year of the forecast. It secure that. Instead, Britain needs to run an absolute expects it to be 74.5% of GDP this year, 77.3% next surplus in good years. We will fix the roof when the sun year, peaking at 78.7% in 2015-16—lower than the 80% is shining, to protect Britain from future storms. previously forecast—before falling to 78.3% in 2016-17, then falling to 76.5% and then 74.2% in 2018-19. So I can confirm that, in addition to the cuts this year So, growth is up, the deficit is set to halve, debt is and next, there will be cuts in the next Parliament too. lower. and the biggest single saving of all is a £42 billion To lock in our country’s commitment to this path of reduction in the interest payments we will have to make deficit reduction, we will seek the support of Parliament on that debt, saving every family in the nation the in a vote, and I will bring forward a new charter for equivalent of almost £2,000, money that was going to budget responsibility this autumn. We are taking further creditors around the world, now going to pay for the difficult decisions now so we can reduce the deficit and NHS and other public services. protect our NHS and schools and meet our obligations to the world’s poorest by contributing 0.7% of our It is because we have a credible fiscal plan that the national income to help them. I am proud that we are Bank of England can provide the support needed to doing that. businesses and families. Yesterday I confirmed the appointments of Anthony Habgood to chair the Court On public service pensions, we implemented the reforms and Ben Broadbent and Minouche Shafik to be the new proposed by John Hutton. Once again the House will deputy governors for monetary policy and for markets want to thank him for his work. We will ensure that and banking respectively. All three make a strong team schemes are properly valued, saving the taxpayer over at the Bank stronger still. £1 billion a year. We are continuing with pay restraint in I today reconfirm my remit for the Monetary Policy the public sector—an essential part of maintaining Committee, including the target of 2% CPI inflation, sound finances and economic stability. We will also which the OBR expects will be met this year, next year insist on the prudent management of departmental and in the years ahead. I also set out the remit for the finances. Thanks to the efforts of my colleagues in Financial Policy Committee, the body created by us to Cabinet, these now regularly come in under budget. In avoid the mistakes of the past. Although the OBR order to lock in these underspends, I said in December forecast that house prices will remain below their real-terms that we would reduce spending by £1 billion in 2015-16. peak until at least 2018, I have asked the committee to Today, I am making that overall billion-pound reduction be particularly vigilant against the emergence of potential permanent. 785 Financial Statement19 MARCH 2014 Financial Statement 786

I look forward to the work my excellent colleague the We will give HMRC modern powers to collect debts Chief Secretary is now doing, with the Cabinet Office, from bank accounts of people who can afford to pay to find further efficiencies. Difficult decisions on public but have repeatedly refused to do so, like most other service pay and pensions, further savings in departments, western countries. We will increase compliance checks a cap on welfare bills—none of these decisions is easy, to catch migrants who claim benefits that they are not but they are the right thing to ensure that Britain lives entitled to, saving the taxpayer almost £100 million. We within her means. will take action to curb potential misuse of the enterprise We set out today the details of that welfare cap, and investment and venture capital trust schemes, and we we will seek the support of Parliament for it in a vote are expanding the new tax that we introduced to stop next week. From housing benefit to tax credits, the full people avoiding stamp duty by owning homes through list of benefits included in the cap is published in the a company. Budget document today. Only the state pension and the We will expand the tax on residential properties worth cyclical unemployment benefits are excluded. I am setting over £2 million to those worth more than £500,000, and it at £119 billion in 2015-16. It will rise, but only in line from midnight tonight anyone purchasing residential with forecast inflation, to £127 billion in 2018-19. property worth more than £500,000 through a corporate Britain should always be proud of having a welfare envelope will be required to pay 15% stamp duty. None system that helps those most in need, but never again of this applies to homes that are rented out. Many of should we allow its costs to spiral out of control and its these are empty properties held in corporate envelopes incentives to become so distorted that it pays not to to avoid stamp duty. This abuse will end. work. In future, any Government who want to spend Another abuse has been the manipulation of the more on benefits will have to be honest with the public LIBOR rate. Our regulators are broadening their about the costs, will need the approval of Parliament, investigation to the foreign exchange markets and I will and will be held to account by this permanent cap on keep the House informed. Financial services are a hugely welfare. important industry to this country which I want to The distributional analysis published today shows promote around the world. But I also want the fines that the Budget decisions, and the decisions across this paid by those who have demonstrated the worst values Parliament, mean that the rich are making the biggest to support those who demonstrate the best of British contribution to the reduction of the deficit, because we values. I am talking about the men and women in our are all in this together. [Interruption.] armed forces who risk their lives to keep us free. So I will continue to direct the use of the LIBOR fines to our Mr Deputy Speaker (Mr Lindsay Hoyle): Order. The military charities and our emergency service charities right hon. Gentleman needs to get to the end of the too. Because the sums continue to grow through the speech without anybody having to intervene. fines, I can today extend that support to our search and rescue and lifeboat services, and provide £10 million Mr Osborne: The independent statistics show that of support to our scouts, guides, cadets and St John under this Government income inequality is at its lowest Ambulance. I am today waiving inheritance tax for level for 28 years, lower than at any single moment those in our emergency services who give their lives under Labour. Thanks to my right hon. Friend the protecting us. Prime Minister’s leadership we have driven the international I will also relieve VAT on fuel for our air ambulances efforts to develop tough new global tax rules that stop and inshore rescue boat services across Britain, and rich individuals hiding their tax and companies shifting provide a new air ambulance for London, all in response their profits offshore. Here at home we are collecting to huge and heartfelt public demand and the campaigns twice as much as before through compliance—collecting of my hon. Friends the Members for Hexham (Guy the taxes that are due—and the number of registered Opperman), for Brentford and Isleworth (Mary Macleod) tax avoidance schemes has fallen by half. and for Argyll and Bute (Mr Reid). While the vast majority of wealthy people pay their Tomorrow is the 21st anniversary of the IRA bomb taxes, there is still a small minority who do not. We will that killed young Tim Parry and Johnathan Ball. Survivors now require that those who have signed up to disclosed for Peace was set up by Tim’s parents, Colin and Wendy, tax avoidance schemes pay their taxes, like everyone and it no longer receives lottery funding. My hon. else, up front. This will apply in future to schemes Friend the Member for Warrington South (David Mowat) covered by our general anti-abuse rule too. If people and the right hon. Member for Dulwich and West feel they have been wronged, they can of course go to Norwood (Dame Tessa Jowell) have both raised this court. If they win, they get their money back with issue, and I know myself what incredible work they do. interest. We have already consulted on this idea; now we To honour the memory of all victims of terrorism, we will implement it. The OBR confirms that this will will provide the funding that this programme needs. bring forward £4 billion of tax receipts and it will Last month with the Under-Secretary of State for Scotland, fundamentally reduce the incentive to engage in tax my right hon. Friend the Member for Dumfriesshire, avoidance in the future. Clydesdale and Tweeddale (David Mundell), I visited Public tolerance for those who do not pay their fair Lockerbie to pay my respects on the 25th anniversary of share evaporated long ago, but we had to wait for this that tragedy. We will support the scholarships created Government before there was proper action. Today we for local people there to study in the United States. go further still. I am increasing the budget of Her Further, this summer, many services of remembrance Majesty’s Revenue and Customs to tackle non-compliance. will be held in our cathedrals to mark the great war, so We will block transfers of profits between companies we are providing £20 million to support the repairs that within groups to avoid tax. We will increase tax credit these historic buildings need. We will also support the debt recovery rates for those with sufficient earnings. celebration of the 800th anniversary of the signing of 787 Financial Statement19 MARCH 2014 Financial Statement 788

[Mr George Osborne] further downgrades in the tax receipts would leave independent Scots with a shortfall of £1,000 per person— the Magna Carta next year. King John’s humbling Britain is better together. defeat centuries ago seems unimaginably distant—a weak leader who had risen to the top after betraying his Our country needs to export more and it also needs brother, compelled by a gang of unruly barons to sign to build more. House building is up 23%, but that is not on the dotted line. I will provide a grant to the Magna enough. That is why we are making further reforms to Carta Trust to ensure that today’s generation learns the our planning system and offering half a billion pounds lessons of the past. of finance to small house building firms; it is why we are signing city deals across the country to get more built, We will not have a secure economic future if Britain with a new funding deal this week for Cambridge; it is does not earn its way in the world. We need our businesses why we are giving people a new right to build their own to export more, build more, invest more and manufacture homes and providing £150 million of finance today to more. Our exports have grown each year and the OBR support that; it is why we are funding regeneration of today forecasts rising export growth in the future. Our some of the worst conditions in urban housing estates combined goods exports to Brazil, India and China that we have in this country, and we are extending the have risen faster than those of our competitors, but we current support for mortgage interest scheme to 2016; are starting from a low base and we have many lost and it is why we have got Help to Buy. years to catch up. Britain has to up its game on exports, We are extending the Help to Buy equity loan scheme and today we do. With Stephen Green, and now Ian for the rest of the decade, so that we get 120,000 new Livingston, we are expanding the reach and support homes built. In the south-east, where the pressure is that UK Trade & Investment offers British businesses. greatest, we are going to build new homes in Barking For many firms the truth is that they can win the Riverside, regenerate Brent Cross and build the first contract only if they are backed by competitive export new garden city in almost 100 years at Ebbsfleet. The finance. For decades the British Government have been Opposition have said they already announced the homes the last port of call, when we should be backing British in Ebbsfleet a decade ago, and they did make the businesses wanting to sell abroad. Today, we fundamentally announcement. Do you know how many homes have change that, and we are going to start with the finance been built since then? It is less than 300; it was more we provide our exporters. We will double the amount of “ebb” than “fleet”. Instead, we are going to build 15,000 lending available to £3 billion, and I can announce that homes there, put in the infrastructure, set up the from today the interest rates we charge on that lending development corporation and make it happen. I thank will be cut by a third. Instead of having the least my hon. Friends the Members for Dartford (Gareth competitive export finance in Europe, we will have the Johnson) and for Gravesham (Mr Holloway) for their most competitive. tremendous support. And we will be publishing a prospectus We will also reform air passenger duty to end the on the future of garden cities. Taken all together, the crazy system where you pay less tax travelling to Hawaii housing policies I announce today will support over than you do travelling to China or India. It hits exports, 200,000 new homes for families—we are getting Britain puts off tourists and creates a great sense of injustice building. among our Caribbean and south Asian communities We are also going to get Britain investing. Britain has here in Britain. From next year, all long-haul flights will under-invested for decades. We are the first Government carry the same, lower, band B tax rate that you now pay to have committed to long-term and rising capital budgets, to fly to the United States. Private jets were not taxed at and this autumn I will set out the detailed plans for the all under the previous Government. Today they are, and projects that will be supported for the rest of the decade. I am increasing the charge so they pay more. And We have been reminded again this week of the benefits because we want all parts of our country to see better of high-speed rail and what that will bring to the north links with the markets of the future, we are going to of our country, and I am determined that it goes further provide start-up support for new routes from regional north faster. Today, I have approved a £270 million airports, such as Liverpool, Leeds or, indeed, Inverness. guarantee for the Mersey gateway bridge, thanks to the More support for businesses; competitive finance; cheaper hard work of my hon. Friend the Member for Weaver global flights—I want the message to go out that we are Vale (Graham Evans). And, tomorrow we introduce backing our exporters, so that wherever you are around legislation to give new tax and borrowing powers to the the world you cannot fail to see “Made in Britain”. Welsh Government to fund their infrastructure needs, One key British export is the North sea’s oil and gas. and they can start now on work to improve the M4 in We will take forward all recommendations of the Wood south Wales. report, and we will review the whole tax regime to make Because of the exceptionally poor weather this winter, sure it is fit for the purpose of extracting every drop of I am making an additional £140 million available, on oil we can. We will introduce now a new allowance for top of what has already been provided, for immediate ultra-high pressure, high temperature fields to support repairs and maintenance to damaged flood defences billions of pounds of investment, thousands of jobs across Britain. Our roads have taken a battering, too. and a significant proportion of our country’s energy My hon. Friend the Member for Northampton North needs. Even with these measures, the North sea is a (Michael Ellis) has been a very persistent campaigner mature basin, and the OBR has today revised down the for resources to repair the potholes in his constituency forecast tax receipts by a further £3 billion over the and across the country. His persistence has paid off and period. The Scottish economy is doing well and jobs are I am making £200 million available, which local authorities being created, but this is a reminder of how precarious can bid for—I trust Northampton will be making an the budget of an independent Scotland would be. These application. 789 Financial Statement19 MARCH 2014 Financial Statement 790

Modern infrastructure is part of a successful economy. But I want to do something today that helps all So, too, is a modern industrial strategy. If Britain is not businesses to invest. In 2012, I increased the annual leading the world in science and technology and engineering, investment allowance tenfold to £250,000. This generous we are condemning our country to fall behind. So we allowance was due to expire at the end of this year, but will establish new centres for doctoral training, for cell all the business groups urged me to extend it. So we will, therapy and for graphene—a great British discovery but we will do more. We will double the investment that we should break the habit of a lifetime with and allowance to £500,000, extend it to the end of 2015 and commercially develop in Britain. To make sure we give start it next month—99.8% of businesses will get a young people the skills they need to get good jobs in 100% investment allowance. Almost every business across this modern world, we have doubled the number of Britain will pay no up-front tax when they invest in the apprenticeships, and I will extend the grants for smaller future. It costs £2 billion in the short term, so when we businesses to support over 100,000 more apprentices. say that we are going to get Britain investing and to And we will now develop new degree-level apprenticeships, back growth around the country, we mean it. too. A resilient economy is a more balanced economy, with more exports, more building, more investment and In my maiden speech here in this House I spoke of more manufacturing too. We have got to support our Alan Turing, the code breaker who lived in my constituency, manufacturers if we want to see more growth in our who did more than anyone else—almost—to win the regions. To those who say that manufacturing is finished war and who was persecuted for his sexuality by the in the west, I say look at America, which will see up to country he helped to save. I am delighted that he has 5 million new manufacturing jobs by the end of this finally received a posthumous royal pardon. Now, in his decade, and I will tell you why. US industrial energy honour, we will found the Alan Turing Institute to prices are half those in Britain. We need to cut our ensure that Britain leads the way again in the use of big energy costs. We are going to do this by investing in new data and algorithm research. I am determined that our sources of energy, new nuclear power, renewables, and a country is going to out-compete, out-smart and out-do shale gas revolution. We are going to do this by promoting the rest of the world. energy efficiency. Today, we are tilting the playing field— Government investment is part of the story, but we extending the 2% increase in company car tax in 2017-18 need business investment, too. When we came to office, and 2018-19 while increasing the discount for ultra low Britain had one of the least competitive business tax emission vehicles, and reducing the rate of fuel duty on regimes in Europe—now we have the most competitive. methanol. But above all, we are going to have a £7 billion Thanks to the Office of Tax Simplification, we have package to cut energy bills for British manufacturers, already cut burdens on administration, and I am grateful with benefits for families and other businesses too. to Michael Jack, John Whiting and their team for their First, I am capping the carbon price support rate at hard work. Today, we accept their recommendation £18 per tonne of carbon dioxide from 2016-17 for the to move the collection of class 2 national insurance rest of the decade. This will save a mid-sized manufacturer contributions into self-assessment, abolishing for 5 million almost £50,000 on its annual energy bill, and it will save people this wholly unnecessary bureaucracy. And we families £15 a year on their bills too, over and above the have cut business tax rates, too. Corporation tax was £50 we have already taken off. 28% when we came to office. In just two weeks, corporation Secondly, I am extending the existing compensation tax will be down to 21%, high street stores will get scheme for energy-intensive industries for a further four £1,000 off their rates and every business in the country years to 2019-20. Our steelmakers, chemical plants, will get the employment allowance—a £2,000 cash-back paper mills and other heavy energy users make up 35% on jobs. Next year, corporation tax will reach 20% and of our manufacturing exports and employ half a million we take under-21s out of the jobs tax altogether. people. This scheme helps the companies most at risk of leaving to remain in the UK. So businesses are keeping more of their money to Thirdly, I am introducing new compensation worth create jobs and invest in the future—today, I want to go almost £1 billion to protect these energy-intensive further. Many of the enterprise zones we created are manufacturers from the rising costs of the renewables now flourishing, so the business rates discounts and obligation and the feed-in tariffs, otherwise green levies enhanced capital allowances will be extended for another and taxes will make up over a third of their energy bills three years. And I can confirm that, with the Northern by the end of the decade. Ireland Executive, we will establish the first enterprise zone there near Coleraine. I am raising the rate of the Fourthly, I am exempting from the carbon price floor research and development tax credit for loss-making the electricity from combined heat and power plants, small businesses from 11% to 14.5%. Two years ago, I which hundreds of manufacturers use. This entire package launched the seed enterprise investment scheme to help will be delivered without any reduction in the investment finance start-ups. It has been a great success and I am in renewable energy. making it permanent. We are backing investment into Today, I have cut the cost of manufacturing in Britain. social enterprises with a social investment tax relief at a Half of the firms that will benefit most are in the north rate of 30%. And we are supporting our creative industries, of England, and a third are in Scotland and Wales. too. The European Commission has today approved the Thousands of good jobs are protected. We have a more extension of our film tax credit, and I will apply the resilient economy, a Government on the side of same successful approach to theatre, especially regional manufacturers and a Britain that makes things again. theatre. From this September, there will be a 20% tax We are backing exports, backing manufacturing and relief for qualifying productions—and 25% for regional backing a Britain that builds. We also want to help touring. And we are expanding by a third the size of the hard-working people keep more of what they earn and cultural gift scheme. of what they save. That is what we have done by freezing 791 Financial Statement19 MARCH 2014 Financial Statement 792

[Mr George Osborne] income tax at all on the first £10,500 of your salary— £10,500 tax free and £800 less in tax every year for the council tax, freezing fuel duty and raising the personal typical taxpayer. Our increases in the personal allowance allowance to £10,000. From next year, there will be will have lifted over 3 million of the lowest paid out of tax-free child care—20% off for up to £10,000 of child income tax altogether, and I am incredibly proud of care costs for parents, and an early years pupil premium what we have achieved. to help the most disadvantaged. I can also confirm today that the higher rate threshold Today we can do more to help. Let me start with will rise for the first time this Parliament, from £41,450 duties. I can confirm that the fuel duty rise planned for to £41,865 next month, and then by a further 1% to September will not take place. Petrol will be 20p lower £42,285 next year. Because I am passing the full benefit per litre than it would have been under the plans of the of today’s personal allowance increase on to higher rate previous Government. taxpayers, people earning £42,000, £43,000, £50,000, Turning to gambling duties, fixed odds betting terminals £60,000—all the way up to £100,000—will be paying have proliferated since gambling laws were liberalised a less income tax because of this Budget. We have tax cuts decade ago. These machines are highly lucrative, and for those on low incomes, and those on middle incomes therefore it is right that we now raise the duty on them too—help for hard-working people as part of a long-term to 25%. We will also extend the horserace betting levy to economic plan delivered by a coalition Government bookmakers who are based offshore, and we will look and a Conservative Chancellor. I am linking the rate of at wider levy reform and at introducing a “racing right” the transferable tax allowance for married couples to to support the sport. the personal allowance, so it will also rise to £1,050—help for 4 million families that they will take away and that While the number of betting machines have grown, we are proud to provide. the number of bingo halls has plummeted by three quarters over the last 30 years, yet bingo duty has been Our tax changes will help people in work, but there is set at the high rate of 20%. Now that fuel duty is frozen, a large group who have had a particularly hard time in my hon. Friend the Member for Harlow (Robert Halfon) recent years, and that is savers. This matters not just has turned his energy and talent into a vigorous campaign because they are people who have made sacrifices to to cut bingo duty, ably assisted by my hon. Friend the provide for their own economic security in retirement. Member for Waveney (Peter Aldous). They want the It matters too because one of the biggest weaknesses of rate cut to 15%. I can go further. Bingo duty will be the British economy is that it borrows too much and halved to 10% to protect jobs and to protect communities. saves too little. This has been a problem for decades and we cannot fix it overnight. It is no surprise that the Let me turn now to tobacco and alcohol duties. OBR forecasts the savings ratio falling, so today we put Tobacco duty has been rising by 2% above inflation and in place policies for savers that stand alongside deficit will do so again today, as previously confirmed. This reduction as a centrepiece of our long-term economic escalator was due to end next year, but there are no plan. sound health reasons to end it, so it will be extended for the rest of the next Parliament. The reforms I am about to announce are only possible because, thanks to this Government, we have a triple We have introduced new laws to prevent alcohol from lock on the state pension; more people are saving through being sold below minimum tax rates, and this helps to auto-enrolment; and we are introducing a single-tier prevent supermarkets from undercutting pubs and it pension that will lift most people above the means test. helps to stop problem drinking. It is a far more targeted That secure basic income for pensioners means that approach than the alcohol duty escalator, which was we can make far-reaching changes to the tax regime introduced by the previous Government and hated by to reward those who save. Here is how. First, I want to so many responsible drinkers. Today, I am scrapping help savers by dramatically increasing the simplicity, that escalator for all alcohol duties. They will rise with flexibility and generosity of individual savings accounts. inflation, with these exceptions: Scottish whisky is a Twenty-four million people in this country have an ISA, huge British success story. [HON.MEMBERS: “Scotch and yet millions of them would like to save more than whisky.”] To support that industry, instead of raising the annual limits of around £5,500 on cash ISAs, and duties on Scotch whisky and other spirits, I am today £11,500 on stocks and shares ISAs. Three quarters of going to freeze them, and with some cider makers in the those who hit the cash ISA limit are basic rate taxpayers. west country, who have been hit hard by the recent So we will make ISAs simpler by merging the cash and weather, I am going to help them by freezing the duty stocks ISAs to create a single new ISA. We will make on ordinary cider too. them more flexible by allowing savers to transfer all of Then there is beer. I know the industry, led so ably by the ISAs they already have from stocks and shares into my hon. Friend the Member for Burton (Andrew Griffiths), cash, or the other way round, and we are going to make has been campaigning for a freeze, but beer duty next the new ISA more generous by increasing the annual week will not be frozen; it will be cut again by 1p—pubs limit to £15,000—that is £15,000 of savings a year tax saved, jobs created and a penny off a pint for the second free, available from 1 July. I am raising the limits for year running. junior ISAs to £4,000 a year too. It is a central part of our long-term economic plan But the £15,000 new ISA is just the first thing we are that people keep more of the money they have earned. doing for savers today. Secondly, many pensioners have When we came to office, the personal tax allowance was seen their incomes fall as a consequence of the low just £6,500. In less than three weeks time, it will reach interest rates that Britain has deliberately pursued to £10,000. That is an income tax cut for 25 million people. support the economy. It is time Britain helped them out Today, because we are working through our plan, we in return, so we will launch the new pensioner bond, can afford to go further. Next year, there will be no paying market leading rates. It will be issued by National 793 Financial Statement19 MARCH 2014 Financial Statement 794

Savings & Investments, open to everyone aged 65 and The OBR confirms that in the next 15 years, as some over, and available from January next year. The exact people use these new freedoms to draw down their rates will be set in the autumn, to ensure the best pensions, this tax cut will lead to an increase in tax possible offer, but our assumption is 2.8% for a one-year receipts. Government Members understand that when bond and 4% on a three-year bond. That is much better you cut a tax rate that is punitively high, that can than anything equivalent in the market today. Up to increase revenues. These major changes to the tax regime £10 billion of these bonds will be issued. A maximum of require a separate Act of Parliament, and we will have £10,000 can be saved in each bond. That is at least a them in place for April next year. What I am proposing million pensioner bonds. Because 21 million people also is the most far-reaching reform to the taxation of pensions invest in premium bonds, I am lifting the cap for the since the regime was introduced in 1921. first time in a decade from £30,000 to £40,000 this June, There is one final reform to support savings that I and to £50,000 next year, and I will double the number would like to make. There is a 10p starting rate for of million-pound winners. income from savings. It is complex to levy and it penalises I still want to do more to support saving, so, thirdly, low- income savers. Today, I am abolishing the 10p rate we will completely change the tax treatment of defined for savers altogether. When I abolish a 10p rate, I do not contribution pensions to bring it into line with the sneakily turn it into a 20% rate like the last lot: I am modern world. There will be consequential implications turning it into a 0% rate: no tax on these savings for defined benefit pensions upon which we will consult whatsoever. We will almost double this zero-pence band and proceed cautiously, so the changes we announce to cover £5,000 of saving income. One and a half today will not apply to them. But 13 million people have million low-income savers of all ages will benefit. Two defined contribution schemes, and the number continues thirds of a million pensioners will be helped. to grow. We have introduced flexibilities, but most people The £15,000 new ISA; the pensioner bond; people still have little option but to take out an annuity, even given access to their own pension pots; a right to though annuity rates have fallen by half over the last impartial advice; the 10p rate for savers abolished to 15 years. The tax rules around these pensions are a zero—the message from this Budget is this: you have manifestation of a patronising view that pensioners earned it; you have saved it; and this Government are on cannot be trusted with their own pension pots. I reject your side. Whether you are on a low or middle income, that. People who have worked hard and saved hard all whether you are saving for your home, for your family their lives, and done the right thing, should be trusted or for your retirement, we are backing a Britain that with their own finances, and that is precisely what we saves. The central mission of this Government is to will now do: trust the people. Some changes will take deliver economic security. We are not promising quick effect from next week. We will cut the income requirement fixes. Instead we are taking the next steps in our long-term for flexible draw-down from £20,000 to £12,000; raise plan. The forecasts I have presented show growth up; the capped draw-down limit from 120% to 150%; increase jobs up; and the deficit down. Now we are securing the size of the lump sum small pot fivefold to £10,000; Britain’s economic future with: manufacturing promoted; and almost double the total pension savings someone working rewarded; saving supported. With the help of can take as a lump sum to £30,000. All of these changes the British people, we are turning our country around. will come into effect on 27 March. We are building a resilient economy. This is a Budget for These measures alone would amount to a radical the makers, the doers, and the savers, and I commend it change, but they are only a step in the fundamental to the House. reform of the taxation of defined contribution pensions I want to see. Hon. Members: More! I am announcing today that we will legislate to remove Mr Deputy Speaker (Mr Lindsay Hoyle): Order. If all remaining tax restrictions on how pensioners have you like the Budget, I need to put the Question. access to their pension pots. Pensioners will have complete freedom to draw down as much or as little of their pension pot as they want, anytime they want: no caps; PROVISIONAL COLLECTION OF TAXES no draw-down limits. Let me be clear: no one will have Motion made, and Question put forthwith (Standing to buy an annuity. Order No. 51(2)), We are going to introduce a new guarantee, enforced That, pursuant to section 5 of the Provisional Collection of Taxes Act 1968, provisional statutory effect shall be given to the by law, that everyone who retires on these defined following motions:— contribution schemes will be offered free, impartial, Pension schemes (registration of pension schemes etc) (Motion face-to-face advice on how to get the most from the No. 29.) choices they will now have. Those who still want the Alcoholic liquor duties (rates) (Motion No. 45.) certainty of an annuity, as many will, will be able to Tobacco products duty (rates) (Motion No. 46.) shop around for the best deal. I am providing £20 million Stamp duty land tax (threshold for higher rate applying to over the next two years to work with consumer groups certain transactions) (Motion No. 73.)—(Mr George Osborne.) and industry to develop this new right to advice. When Question agreed to. it comes to tax charges, it will be possible to take a quarter of your pension pot tax-free on retirement, as Mr Deputy Speaker (Mr Lindsay Hoyle): I now call today, but instead of the punitive 55% tax that exists upon the Chancellor of the Exchequer to move the now if you try to take the rest, anything else you take motion entitled “Amendment of the Law”. It is on this out of your pension will simply be taxed at normal motion that the debate will take place today and on the marginal tax rates, as with any other income—so not a succeeding days. The remaining motions will be put at 55% tax, but a 20% tax for most pensioners. the end of the Budget debate on Tuesday 25 March. 795 19 MARCH 2014 Budget Resolutions and Economic 796 Situation Budget Resolutions and Economic The Chancellor trumpeted the tax allowance today, Situation but what he did not tell us is that it is the same old Tory trick. He did not tell us the rest of the story. He did not mention the 24 tax rises introduced since he became AMENDMENT OF THE LAW Chancellor. He forgot to mention that he put up VAT, taxed away child benefit, raised insurance tax and gave Motion made, and Question proposed, us the granny tax. It is a classic Tory con: give with one That,— hand and take away far more with the other—same old (1) It is expedient to amend the law with respect to the Tories. National Debt and the public revenue and to make further provision in connection with finance. The Chancellor painted a picture of the country today that millions of people will simply not recognise. (2) This Resolution does not extend to the making of any This is Cameron’s Britain 2014, with 350,000 people amendment with respect to value added tax so as to provide— going to food banks, 400,000 disabled people paying the (a) for zero-rating or exempting a supply, acquisition or bedroom tax, 1 million more people paying 40p tax and importation; 4.6 million families facing cuts to tax credits. But there (b) for refunding an amount of tax; is one group that is better off—much better off. We all (c) for any relief, other than a relief that— know who they are: the Chancellor’s chums, the Prime (i) so far as it is applicable to goods, applies to goods of Minister’s friends—[Interruption.] The Prime Minister every description, and rolls his eyes, because he does not want to talk about the (ii) so far as it is applicable to services, applies to millionaires’ tax cut. There was no mention of it in the services of every description.—(Mr George Osborne.) Budget speech. They are the beneficiaries of this year’s millionaires’ tax cut. 1.30 pm If you are a City banker earning £5 million and Edward Miliband (Doncaster North) (Lab): The feeling the squeeze, do not worry, because they feel your Chancellor spoke for nearly an hour, but he did not pain. This year that City banker was given a tax cut, mention one central fact—[Interruption.] and not just any tax cut. It is a tax cut worth £664 a day, £20,000 a month and more than £200,000 a year. So the Mr Deputy Speaker (Mr Lindsay Hoyle): Order. I Prime Minister chooses to afford a tax cut worth more think that the deputy Chief Whip knows better. We than £200,000 a year for that banker, but he cannot have not even got started. I hope that he will calm afford a pay rise of £250 a year for a nurse. And these down. are the people who have the nerve to tell us that we are all in this together. It is Tory values and Tory choices—same Edward Miliband: The Chancellor spoke for nearly an old Tories. Of course, the leader of the Liberal Democrats hour, but he did not mention one central fact: the is with them every step of the way. Day after day he working people of Britain are worse off under the claims that he does not support Tory policy, but day Tories. Living standards are down, month after month, after day he votes for Tory policy. year after year. In 2011, living standards, down; 2012, Now, to listen to the Chancellor today, for a recovery living standards, down; 2013, living standards, down. that arrived three years later than he promised, he Since the election, working people’s living standards are expects the country to be grateful. Back in 2010 he told £1,600 a year down. You are worse off under the us that by the end of 2014 the economy would have Tories—[Interruption.] grown by nearly 12%. Today the figures show that it has been barely half that, and he wants the country to be Mr Deputy Speaker: Order. To be quite honest, I grateful. Back in 2010 he said that the Government thought that the House was doing really well today. would clear the deficit in this Parliament, by 2014-15. Courtesy was quite rightly shown to the Chancellor of Today he wants the country to be grateful because he the Exchequer. I expect the same courtesy to be shown says that he can do it by 2018-19. Three years ago he to the Leader of the Opposition. I want to hear it, and told us, in his 2011 Budget speech, that he would deliver your constituents want to hear it. an economy “carried aloft by the march of the makers.”—[Official Report, Edward Miliband: They do not want to talk about the 23 March 2011; Vol. 525, c. 966.] falling living standards of people across this country, But what has actually happened since then to the Mr Deputy Speaker. rebalancing he promised? Manufacturing output has The 2010 Tory manifesto promised an economy where fallen by 1.3%, construction output has fallen by 4.2% people’s and infrastructure investment is down by 11.3%. Every “standard of living… rises steadily and sustainably” time he comes to this House he promises a rebalancing, but they have delivered exactly the opposite: standards and every time he fails. The Chancellor talked about of living falling sharply and steeply. Today the Chancellor housing today, but what has he actually delivered? The simply reminded people of the gap between his rhetoric Government have overseen the lowest level of house and the reality of people’s lives. Living standards have building since the 1920s and rents have risen twice as been falling for 44 out of 45 months under this Prime fast as wages. Minister, unmatched since records began. No amount At the heart of the argument we will have over the of smoke and mirrors today can hide it. We already next 14 months is this question: whose recovery is it know the answer to the question that millions of people under the Tories? Under them, it is a recovery for the will be asking in 2015: “Are we better off now than we few, not the many. Bankers’ pay in London is rising five were five years ago?” The answer is no. They are worse times faster than that of the average worker. This recovery off, much worse off—worse off under the Tories. is not working for working people whose living standards 797 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 798 Situation Situation are falling. It is not working for the millions of women It is no wonder that even their own side think they are who see the gap between men and women’s pay rising. It totally out of touch. Even now, after all the embarrassment is not working for the low-paid people promised by the of the millionaires’ tax cut, they will not rule out going Chancellor—[Interruption.] further. Maybe today we can get the straight answer that we have not had so far. Will the Chancellor rule out Mr Deputy Speaker: Order. Mr Williamson, you are a further tax cut for millionaires to 40p? Just nod your in danger of exploding, which would be good neither head if you will rule it out. Come on, come on. Just nod for you, nor for the Chamber. Come on. Let us listen. your head. Maybe the Prime Minister would like to. Just nod your head. [Interruption.]

Edward Miliband: They do not want to talk about Mr Deputy Speaker: Order. There may be an influence the low-paid workers promised a £7 minimum wage of the wolves and the pack running around. That can be by the Chancellor but given just 19p more an hour. used in the zoo, but it will not be used in this Chamber. Under this Government it is an economy of the privileged, by the privileged and for the privileged. Edward Miliband: It is very simple—all the Prime Instead of admitting the truth about what is happening Minister needs to do is to nod his head if he is going to in most people’s lives today, the Government want to rule out cutting the 45p tax to 40p in the next Parliament. tell them the opposite. They tell people that their wages Just nod your head. Come on. There we have it. There are rising when they are falling, just like they tell people they go again—they will not rule it out. Does that not that their energy bills are falling when they are rising. say it all about them? They really do believe that the They tell people that they are better off, but everyone way you make the rich work harder is to make them knows the truth. They can change the shape of the richer and the way you make everyone else work harder pound—it does not matter if it is square, round or is by making them poorer. oval—but if you are £1,600 a year worse off, you are Just as they paint a picture of the country that still £1,600 a year worse off. You are worse off under the working people will not recognise, so, too, themselves. Tories. The Prime Minister is an expert in rebranding. Remember They cannot deliver because of what they believe. His the huskies, the bike and the tree? That was before they global race is a race to the bottom. It means people said, “Cut the green crap.” What is the latest rebranding being forced to do two or even three jobs to make ends from the Bullingdon club? It is beyond parody. What do meet, not knowing how many hours they will get from this lot now call themselves? [Interruption.] one week to the next, and with no idea what the future holds for their kids. Low wages, low skills, insecure Mr Deputy Speaker: Order. Mr Williamson, I will not work—that is how they think Britain succeeds. That is tell you again. I am sure your roast beef is ready for why they are not the solution to the cost of living crisis. you—you might be better off eating a little raw meat They are the problem. than giving us the noise that we are getting in here. We needed a Budget today that would have made the long-term changes that our economy needs, in housing, Edward Miliband: What do this lot now call themselves? banking and energy. But they cannot do it. They will They call themselves the workers’ party. Who is writing not stand up to the vested interests. They will not tackle the manifesto for this workers’ party? We have a helpful developers sitting on land, even though they cannot answer from one Conservative MP: solve the housing crisis without that. They will not force “There are six people writing the manifesto…five…went to the banks to improve competition even though small Eton”. businesses say they need it. They will not stand up to By my count, more Etonians are writing the manifesto the energy companies and freeze energy bills, even than there are women in the Cabinet—no girls allowed. though the public support it. Same old Tories. We know This week, we have heard it right from the top. Here is what their long-term plan is: more tax cuts for the what the Prime Minister’s former best friend— richest, while everyone else gets squeezed. [Interruption.] [Interruption.] They do not like to hear it do they, Mr Deputy Speaker? Here is what his best friend— Mr Deputy Speaker: Order. This is getting totally out [Interruption.] of hand and we certainly do not want any more pointing. I am worrying about the danger to Anne Milton’s Mr Deputy Speaker: Order. If Members wish to go hearing; the way she is shouting is not good for her or outside and show people, they can do so by all means. I the Chamber. I want to hear the rest of the speech in certainly do not need you to hold up papers all the way peace. I certainly do not want all the muttering and through. Quite seriously, respect is due to the Leader of challenges that have been running along the Benches. I the Opposition the same way it was given to the Chancellor. will take it more seriously if I have to get up next time. I want to hear him; if you do not, there is the door—please leave. Edward Miliband: We know what their long-term plan is: more tax cuts for the richest while everyone else Edward Miliband: Here is what the Prime Minister’s gets squeezed. What does the Chancellor say about the former best friend, his closest ally, the Education Secretary, people dragged into paying 40p tax? He says that they had to say about the Prime Minister’s inner circle. He should be happy and that it is good news for them. So said it was ridiculous, preposterous, unlike anywhere this is the new Osborne tax theory: if you are in the else in the world. They know they are in trouble when middle, paying 40p, you should be pleased to pay more, even the Education Secretary calls them a bunch of but if you are at the top, paying 50p, you should be out-of-touch elitists. Where is the Education Secretary? helped to pay less. Same old Tories. I think he has been banished. Ah—he is hiding! He has 799 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 800 Situation Situation [Edward Miliband] Mr Tyrie: May I make a bit of progress? The deficit is down from the stratospherically high been consigned to the naughty step by the Prime Minister. figure of 11% of gross domestic product to just below It is time we listened to Baroness Warsi and took the 7%, and next year it is forecast to fall to 5%, as we whole Eton mess out of Downing street. have just heard announced by the Office for Budget We do not need a party for the privileged few; we Responsibility. The consolidation is already significant. need a party for the many. That is why a Labour It has been achieved despite a massive external shock Government will freeze energy bills, guarantee jobs for which was not built into the forecast four years ago and unemployed young people, cut business rates, reform which I do not think the Chancellor mentioned—the the banks, get 200,000 homes built a year and abolish eurozone crisis and the economic stagnation in our the bedroom tax. This is the Budget that confirms that largest export markets. It was primarily that crisis that people are worse off under the Tories—a worse-off forced the deficit reduction plan to fall behind schedule. Budget from an out-of-touch Chancellor. Britain can The key question for the Government a couple of years do better than them. Britain needs a Labour Government. ago was whether to relax fiscal policy sharply in response to the almost 4% loss of forecast GDP, most of which Several hon. Members rose— was a consequence of the eurozone crisis. Rightly, in my view, the Government showed considerable Mr Deputy Speaker: Order. Before I bring in the next flexibility within the overall framework, in two important speaker, I announce an eight-minute limit. ways. First, they authorised the Bank of England broadly to double the quantitative easing programme; and secondly, equally importantly, the so-called economic stabilisers—the 1.46 pm falls in tax receipts and rises in public expenditure that Mr Andrew Tyrie (Chichester) (Con): It is my job to come with lower growth—were allowed to kick in. take away the political punchbowl, just as the party was To give an idea of the importance of the stabilisers just getting going. What we have just heard is the most and QE on policy, it is worth reminding ourselves of the difficult speech that anybody has to make in the House numbers. Since the election, an additional £175 billion of Commons, and I am sure we will all read it with has been put into the economy through QE and £140 billion interest. has been put in through the automatic stabilisers. The First, I should like to say a few words in a personal latter figure is based on Institute for Fiscal Studies capacity about what has been announced on savings. estimates; no one knows exactly, but it is of that order They look extremely interesting and long-term reforms. of magnitude. These are very large numbers. That showed For a start, the ISA reform is resonant of PEPs; that flexibility by the Government. goes right back to the beginning, as those introduced the savings allowance. It was a tremendous idea. I am Mr Redwood: Does my hon. Friend agree that the really pleased that the cash and equity ISAs have been Government’s flexibility included putting public spending merged and that we have raised the cap. The Treasury up every year in cash terms over the period and relying Committee will have to look at the provisions. I hope I on higher tax receipts to get the deficit down, which is will not have to come to the House and say that it has a how they maintained political agreement to the policy? different view. Getting rid of the defined contribution rules that Mr Tyrie: I do not know about the political agreement force people into annuities is a tremendous achievement—a point, but of course the effects of the stabilisers operate very far-sighted announcement. The last Labour on both the tax and the spending sides. I think the Government were also looking at that for a while, but Government were right to do what they did. they could not find a way to do it. This Chancellor has The Government have also been right to see off calls found a way to do it, and we should commend him for fundamentally to alter fiscal policy by sharply relaxing that. deficit reduction and increasing public spending. One Before I say a few words about some of the other of the main reasons it was important that they did not measures in the light of past Treasury Committee listen to those calls is that credibility in fiscal policy is recommendations, I should like to say a few personal hard won. It is built up over time—over many years—and words about the deficit. When the Chancellor set out it can easily be squandered. The Government resisted his initial Budget judgment on behalf of the new coalition, that temptation. many thought that the coalition would collapse—that I will say a few words about the historical context. the political strains of implementing spending cuts would Looking to the 1930s, when stagnation set in and the be too great and shake the coalition Government apart. agony was prolonged, partly because automatic stabilisers Well, the opposite has been the case. The coalition has were suppressed and partly because far from engaging stuck with it and the deficit reduction plan has become in QE, the then coalition Government did exactly the the cement of the coalition. opposite: they lengthened the maturity of the debt and Both sides deserve credit for the fact that the coalition sucked money out of the economy. That is why the is still going and dealing with the deficit. Particular 1930s were so painful. credit goes to the Liberal Democrats. If I may say so—I Now that we have a recovery, some are complaining hope they do not mind—I never thought they had it in that it is not the one we ordered. They complain that the ’em. But they have, and they have stuck with it. recovery is consumer-led or uneven across sectors, regions and income groups. Well, of course it is. All recoveries Mr John Redwood (Wokingham) (Con): Will my hon. of any value trigger a reallocation of resources, and Friend give way? therefore all recoveries change the shape of the economy. 801 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 802 Situation Situation A recovery rarely takes root where the jobs were lost or very rich are being taxed more but because the top the firms failed; it was ever thus and it will be the same 1% of today are much richer than they were 30 years this time. As the Chancellor stressed in his speech, jobs ago. They are also much richer relative to the rest of the are being created at a record rate, but we cannot expect population. For the rest of the population, real wages those jobs to be in exactly the same places as the jobs growth has steadily declined from 2.9% in the 1970s and lost in the downswing. I am confident that, as in all ’80s to 1.5% in the 1990s, with a decline of 2.2% so far previous recoveries, if we can sustain this recovery—and this decade. Of course, regular below-inflation pay rises even if it is uneven, as it will be—it will, in time, deepen in the public sector have a cumulative effect, and that is and spread through the whole economy. The figures for why such a policy cannot endure indefinitely. I was previous upswings support that. disappointed to hear what the Chancellor had to say The crucial question now, though, will be whether we about that today. can sustain the deficit reduction plan. A threat to deficit It is a fundamental truth that the gap between the reduction will come from siren voices who say, “With richest and the poorest, in income terms, has increased the recovery under way, we can go back to spending substantially over the past 40 years. In 1979, the gap in money we haven’t got.” We are already hearing that. We weekly earnings between the richest and poorest 5% was need to remind ourselves that we are still spending £445; today it is £938. The richest 5% have seen weekly about £7 for every £6 we collect in tax. It is true that we earnings increase by £531 since 1979, while the poorest are in better shape, but with a deficit of about 6.6% of 5% saw an increase of just £38. We are certainly not all GDP, as the Chancellor announced today, we will remain in this together. vulnerable to economic shocks unless we do more to Our economy is largely a service-based economy. tackle it. Services account for 79% of our economy and 83% of Another risk to deficit reduction is one of simple jobs. However, we should not forget the importance of arithmetic caused by ring-fencing—something that the manufacturing which, while accounting for 15% of the Treasury Committee has flagged up on several occasions. economy and only 8% of jobs, contributes a greater It will become increasingly difficult to find cuts to an gross value added to the economy than financial services— ever-shrinking share of non-ring-fenced departmental £136 billion as against £115 billion. Manufacturing also spending. In other words, with ring-fencing of nearly accounts for over half of all our exports and three half departmental expenditure, finding these savings quarters of all research and development investment. will get tougher year by year. The Chancellor has argued, While the UK economy remains at 1.4% below its rightly, that polling evidence shows that that ring-fencing pre-recession peak, manufacturing is at 10% below its reflects public preferences. I think that is true for health 2008-09 peak. I am therefore not surprised that the and education, but it is not supported in the area of Chancellor felt it necessary to pay some attention to overseas aid. Spending on aid has risen by over a third that area. in real terms and will rise even more because it is linked As a country, we have a long-term productivity problem, to GDP.Politics always points to ever-more ring-fencing; which contributes to declining real wage growth and economics to less. Eventually, ring-fencing will have to squeezes people’s living standards. Productivity fell by be revisited, however difficult it is for all political parties. 0.3% on the previous quarter, following declines in 2012 Perhaps I should say a little about the risks— and 2013. Despite improvements in the 1990s and the 2000s, the United Kingdom remained 10% behind the Mr Deputy Speaker (Mr Lindsay Hoyle): Order. other G7 nations. The gap today is more marked, at 21%. The Government will say that they anticipate improvements as employers seek more from their work 1.56 pm forces. I say we should be looking at some of the deeper Mr Nicholas Brown (Newcastle upon Tyne East) (Lab): structural problems that lead to poor productivity, such It is a pleasure to follow the hon. Member for Chichester as education, skills development and training for both (Mr Tyrie) in this debate. I acknowledge the work that employees and employers. he and his Select Committee do on behalf of us all. For the north-east, these issues are of vital importance. Some of the measures in today’s Budget will be Despite this morning’s welcome fall in unemployment welcome in the north-east of England, including the of 2,000 people in the region and 38 in my constituency, emphasis on manufacturing, the apprenticeships scheme, we still have the highest unemployment rate of any and the extension of the capital tax regime in enterprise United Kingdom region—9.5% compared with the national zones. It would not be fair to say that the new leader of average of 7.2%. During recent months, the region has the worker’s party does not understand us; the statement not seen consistent progress in reducing unemployment on bingo duty shows that he has got to the very heart of and it is still estimated that a further 60,000 private our concerns. In my short contribution, I would like to sector jobs are needed to make up for the gap with the address a number of the structural questions that form other regions. the context of today’s Budget, both nationally and The shadow banking system, as a system operated internationally. through non-bank financial intermediaries and often Income disparity in the United Kingdom has become beyond the scope of national regulations, requires much starker over the past 25 years, with the growth of a class greater attention and understanding. The Financial Stability of people the noble Lord Lamont used to describe as Board has estimated that the size of the shadow banking the “internationally mobile”. In 1978-79, the top 1% paid sector was ¤51 trillion in 2011, up from ¤21 trillion in 11% of all income tax, while in 2012-13 they paid 2002. That accounts for up to 30% of the total financial 24%. The Chancellor made much of this in his address, system, which is not properly scrutinised and, in my saying that it proved that the wealthy were making their view, not even properly understood. Add a large amount contribution. However, it is happening not because the of leverage into the equation and it is clear that the 803 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 804 Situation Situation [Mr Nicholas Brown] make. Our job is not done, and that is why the reforms announced by the Chancellor today, which refer to the shadow banking system presents a clear risk to the need to strengthen the roles of the makers, the doers global financial system. It was razor-thin capitalisation and the savers, are vital if we are to secure the future of ratios held by financial institutions, created by unsustainable our economy in a competitive world. leverage, that contributed to the previous crash. The I want to highlight some of the progress that we have United Kingdom accounts for 12% of all shadow banking made. Not much has been said about the unemployment assets held through non-bank financial intermediaries, figures that have been published today. We have seen a the third highest following the United States and the fall in the unemployment numbers, according to both euro area. the claimant count and the labour force survey. We have There is a key question as to whether the state, or also seen a big increase in the number of people in even nation states collectively, could once again step in work. Record numbers of women are in work. Often the to save financial institutions so soon after taking on the Opposition’s criticism is that these jobs are temporary burden from 2008. Many financial institutions’ recorded or part time, but the reality is that employment increased asset values are close to, or even exceed, that of their by nearly 460,000 last year, and 430,000 of those jobs host country’s GDP, including France, Belgium, Italy are full time. During the last year, we have seen a and Germany. The United Kingdom has one of the contraction in the number of temporary jobs in the largest disparities, with the combined asset value of the economy, and therefore a significant increase in the Royal Bank of Scotland, Barclays and HSBC at 337% of number of permanent jobs in the economy. UK GDP. That is a sobering thought. Following the effect of the financial crisis, the David Rutley (Macclesfield) (Con): It is appropriate combination of cuts in corporation tax and a weaker to recognise the important work that my hon. Friend growth in taxable profits are contributing to what appears made as a Minister in helping to move this agenda to be a longer-term decline in corporate revenues. Despite forward, which was a real contribution. On the important the United Kingdom historically receiving a higher point that he has raised, does he recognise that there is proportion of revenues from corporate taxes than also an increase in the number of full-time self-employed comparable countries, the Institute for Fiscal Studies people, who have made a conscious decision that they confirms that the UK is seeing a downward trend in want to have a real say in the future of their own corporate tax revenues, which is likely to continue for employment? the best part of the decade. Corporate tax receipts will be at their lowest share of Mr Hoban: My hon. Friend is absolutely right. The revenue by 2017-18—the level they were in the mid-1980s. number of people who want to take control over their Financial services receipts have declined from over 25% of own lives and employment, and who want the security corporate tax revenues before the crisis, to 11% in that comes from self-employment, is significant, and 2011-12. With corporate tax revenues declining and the the number of schemes that we have introduced to help rate being cut, there is concern over the extent of tax young people find self-employment as a route out of avoidance, evasion and non-payment by large corporations poverty and unemployment have been a huge benefit to in the UK. Estimates of the losses vary. HMRC puts those who want to set up their own businesses. them at £35 billion, while Tax Research UK puts them The dynamism that we have seen in the private sector, at £70 billion. Whichever figure one takes, these are big which has led to this increase in employment, has been figures. coupled with welfare reform—a key part of our long-term There are remedies. The international dimension to economic plan. Welfare reform has sharpened the incentive these issues and the world trading environment is clear. to work, and we expect more of those who are out of Our country has an important role to play as part of the work, too. We have brought forward the point when we transnational attempts to deal with transnational offenders. work with lone parents before their youngest child The House should also play an enhanced role in scrutinising starts school, so that they are better prepared to start the progress that the Government are making on these work rather than remain on benefit. For far too long, great strategic issues. It is much to the credit of the people who have been out of work through illness have Public Accounts Committee and the Treasury Committee been written off by the system and expected to live on that they have become two of the most influential benefits for the rest of their working life. We have been Committees in the House, but we should look further working with them to ensure that they get into employment and do more ourselves as a House. so that they can look after themselves and their families, and achieve the dignity that we so often take for granted. 2.5 pm The recovery in employment is a product of a strong Mr Mark Hoban (Fareham) (Con): It is a pleasure to and dynamic private sector. I welcome the measures follow the right hon. Member for Newcastle upon Tyne that the Chancellor has announced today to encourage East (Mr Brown). As someone who was born and business investment and to double the annual investment brought up in the north-east, I too understand the allowance to £500,000. That will encourage businesses deep-seated challenges that the region faces, and I hope in my constituency that are strong, growing, dynamic that the emphasis in the Budget on rebuilding the manufacturing businesses to invest more in capital manufacturing sector and investing in high levels of equipment. They are aided by the reduction in corporation skills will make some progress towards tackling those tax. We should not forget the importance that that has problems. in sending a signal to businesses overseas that the UK is The Chancellor is absolutely right to highlight the open for business and a place where they should do progress that has been made since we came to office in business. The reduction in corporation tax is mirrored 2010, but also the further progress that we need to by measures around the employment allowance and 805 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 806 Situation Situation scrapping national insurance for young workers under These are radical reforms. I welcome another part of the age of 21. These tax changes, along with cuts to red the package that goes hand in hand with the increased tape, the investment in skills and the reform of training, flexibility. The challenge that many pensioners face is are part of our long-term plan to sustain the economy finding advice and someone to help them through complex and job creation. decisions about what they should do in retirement. I want to spend a few minutes on the savings measures Recent surveys have shown just what a bad job some of announced in the Budget. Since they took office, this the comparison websites do for people trying to buy an Government have made radical reforms to pensions annuity. and savings. They ended compulsory annuitisation and The right to advice is an important part of the we are seeing the successful roll-out of auto-enrolment, package of reform, but I suggest to those on the Treasury which will give many people their first chance to build Bench that we need to go further. The auto-enrolment up a pension pot for their retirement. In the next savings system assumes that people do not think too Parliament, we will be launching a single-tier pension, hard about saving but save automatically. We then which will mean that people will retire on a pension expect them at the point of retirement to engage in above the level of means-tested benefits. We have seen saving. We need to make sure that there is more advice the launch of the Money Advice Service and strengthened and guidance available before they retire, to help them consumer protection through greater powers for the think about what age they want to retire at and what Financial Conduct Authority. They are important steps sort of income they want to retire on. I think that a key that will help reform the savings landscape, and as the part of the next stage of reform should be to take that Chancellor said they also create a fresh platform for right to advice and see how we can provide better advice radical reform of pension savings. for people in the run-up to retirement in order to help When compulsory annuitisation was scrapped, people them provide more for their retirement. could take full advantage of the flexibility of income drawdown products only if they could demonstrate that Mr Redwood: Is there not also a very cruel dilemma they would not be entitled to means-tested benefits. in public policy, in that savers want a better rate of That meant they had to have a guaranteed income of interest but we need low interest rates to promote £20,000 a year. That of course predated the introduction economic growth and to service the Government debt? of a single-tier pension, and the limit was set at an There is a trade-off, and that is why tax breaks are amount that ensured that people would not fall back on particularly welcome at a time of low interest rates. those means-tested benefits. Now that the single-tier pension is in place, it is right to reduce that amount to Mr Hoban: Absolutely. My right hon. Friend provides £12,000 this year. me with the opportunity to praise the Chancellor for We also know that for many consumers it is difficult introducing the pensioner bond. Those higher rates of to shop around to buy an annuity. They are bewildered interest will provide not only an attractive way of enabling by the choice in the market, and annuities are often the people to save, but some support to the Treasury. only product that many of them can buy. Recent surveys My hon. Friend the Member for Mid Norfolk (George have shown just how badly off consumers are as a Freeman) made a point about the savings culture. We consequence of not shopping around. I think that the must recognise that we need to help people on low Chancellor’s announcement today about the simplification incomes to improve their savings, too. Although the of the way people can use their defined contribution minimum contributions under auto-enrolment help people pension pot will radically transform the insurance and get on the savings ladder, they are not high enough to savings market. It will force insurance companies to provide them with a reasonable replacement income in demonstrate that their products are good value, and retirement that is proportionate to their income in create room for innovation for others to come up with work. Those higher up the income scale tend to do products that will help people maximise their income in better. Not only do they qualify for higher tax relief, but retirement. their pension contribution rates need to be higher, too. They also tend to have additional sources of income George Freeman (Mid Norfolk) (Con): Does my hon. and savings in retirement. Friend agree that the historic reforms announced today I encourage my right hon. Friend the Chancellor to on the pensioner bond, the tax simplification for annuities look carefully at this area. I welcome the fact that we and the scrapping of the 10p rate will begin the process have increased personal allowances for those on low of rebuilding a savings culture in this country? We last incomes. In a constituency like mine, where the average did that in the 1980s, but it was shamelessly attacked by wage is £24,000 a year, increases to the personal allowance the former Prime Minister through a series of stealth are valuable. However, as well as helping the low paid taxes on savings and pensions. while they are in work, we should think about how we help them prepare for retirement. That would help Mr Hoban: My hon. Friend is absolutely right. I provide a rounded package of measures to help people think this should be seen as the first stage in a series of build up savings for their retirement and then, once they reforms, because as the Chancellor also said in his are in retirement, think about how they will get best statement, the Office for Budget Responsibility predicts value for money from those savings. that the savings ratio will continue to fall. As well as In conclusion, it is not possible simply to repair ensuring that we can provide a better deal for those in 13 years of damage in just a few years of this first term retirement, a better way for them to spend their pension of Government. The problems we inherited were deep- pot and encouragement for them to build up more seated and challenging: an economy that was through individual savings accounts, we need to do unbalanced—it was too dependent on the south and on more. I will come back to that in a moment. financial services—and a Government addicted to spending, 807 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 808 Situation Situation [Mr Hoban] they cannot get a job. That is why I support our compulsory job guarantee, paid for by a tax on bank taxing and borrowing. Tackling those problems against bonuses. the backdrop of economic uncertainty abroad was not Under this Government, despite what the hon. Member easy. Plenty of commentators, including from the Labour for Fareham (Mr Hoban) has said, many of the jobs party, said that it could not be done. They prophesised that have become available are part time and low paid, huge increases in unemployment as we cut back the and many are on zero-hours contracts. One of the public sector, and they said we were cutting too far and things that people want is continuity of employment, too fast. but one of the big problems under this Government is They have been proved wrong: the economy is recovering, that people cannot rely on having a job for a very long growth in the UK is expected to outstrip that of our time, so they cannot plan their income or expenditure main competitors and more people are in work than properly or save up to buy a house or do things that ever before. Now is not the time for complacency. We most families do. It is just not possible with the type of need to continue with our reforms and drive the recovery employment available today. forward. I have been particularly vocal in this House about support for small and medium-sized enterprises, which 2.15 pm I believe are the lifeblood of our future economic growth. Many are still finding it a struggle to get money from Derek Twigg (Halton) (Lab): The Chancellor’s Budget the banks, but the Government have not done a lot demonstrated clearly just how out of touch this Government about it. I support my party’s proposal to cut business are with ordinary people. This Government stand only rates for small firms. for the privileged few, not for the millions of people on middle or low incomes who are not feeling any recovery The Chancellor mentioned support for the energy- benefit, certainly not in their incomes and standard of intensive manufacturing industry. To date, this has been living. The cost of living crisis continues, leaving people a major failure. I have been lobbied rigorously by companies £1,600 a year worse off under this Tory-led coalition. in my constituency about the Government’s failure, and Of course, from what we have heard today, the Chancellor I have also lobbied the Government regularly. I will does not care about that. He does not care that the look at the detail of what the Government have announced standard of living has fallen for most people in this today, but the fact is that until today they have failed country. this industry. The chemical industry is a particularly important one in my constituency, providing many people The real story—not the story the Chancellor wants to with well-paid jobs. The Government need to do more. tell—is that of constituencies like mine, where this Government have failed and where many people are The Chancellor referred to housing. Of course we all struggling to pay their bills and have to choose want people to be able to afford to buy a house if they whether to heat their homes or to eat, while bankers want to or to have access to social housing, but the get big bonuses and the richest people earning more recovery is relying heavily on housing—there is a housing than £150,000 get a tax cut. I am pleased that Labour boom—and on lending. That is a real concern, which will reverse that cut. We should not forget the 24 Tory was mentioned today by the Governor of the Bank of tax rises, with the VAT rise alone costing families England in, I think, the Financial Times. The issue is with children an average of £1,350 over the past three that the boom cannot be unsustainable, so we have to be years. very careful. I am really concerned about the This Government are out of touch with the lives of unsustainability of the recovery. We can and should of ordinary working people. No. 10 is being run by old course help more people to get on the housing ladder, Etonians and a public school cabal. They are not in but a housing boom will make that even more difficult, touch with the lives of people in this country. The particularly for young first-time buyers. Government have never stood up to the energy companies. What are the Government doing about social housing? My party is absolutely right to pledge to freeze energy Many constituents come to see me because they need bills until 2017 and reform the energy market to stop access to social housing, but there is a real shortage. the customer being ripped off. Today’s response to the The Government do not have any real proposals to get problem of energy bills was pitiful. I shall return to that people social housing, which is what people in my issue and the industry shortly. constituency want. That important matter was omitted The real story is that of hundreds of my constituents from the Budget . having to rely on food banks as their source of food on The Chancellor’s policy of cuts is destroying local a weekly basis. The number of users has grown massively government. In Halton, total revenue grant funding has since this Government came into being. The story is been cut by £28 million, or 28% since 2010, and its also about many in my constituency having to use capital grant funding has been cut by £14 million. Local payday lenders: Halton has the third highest concentration government is suffering badly, and that is affecting of payday lenders in the UK. Loan sharks have also services for local people. been a plague in my constituency, preying on poor and The Chancellor commented on the Mersey gateway, vulnerable people on a regular basis. a project which started under Labour and which has The story is also one of still high unemployment in received all-party support. Some colleagues and I have Halton, which has one of the highest levels of long-term had a meeting with him on a cross-party basis, but he youth unemployment in England. My surgery is visited did not say what he would do to ensure that people who regularly by individual claimants and by the families live in Halton—they currently do not have to pay to use and parents of individual young people who are desperate their local road across the existing bridge, the A533—will for help to find their youngsters some work because not have to pay a toll in future. The plan is for them to 809 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 810 Situation Situation pay a toll on the existing bridge and the new one. The means for those deserving people who need benefits to Chancellor has said that he will look at that and see be able to survive and continue with their lives. We do what he can do, but I have not heard back from him, not know the details of what it will mean, and the even though he referred to the Mersey gateway today. Chancellor said nothing about it today. Given that he announced that the A14 in affluent The Government are clearly out of touch with ordinary Cambridgeshire will not be tolled, it is wrong for people people. They are run by a bunch of public schoolboys, who currently use their local road for free in Halton—the and their first priority is to look after the rich and to 27th most deprived borough in the country—to have to ignore the rest. pay for it in future. I do not know of any other such example in this country. The Chancellor said little about the NHS, but there 2.24 pm has of course been a real-terms cut. What about the number of hospital trusts that are running a deficit? Ian Swales (Redcar) (LD): This Budget represents Even my own has a £2.9 million deficit. He said nothing another step in dealing with the economic mess left by about that, although the NHS is in crisis and £3 billion the Labour party. Everybody at home knows that if has been wasted on a reorganisation. they live on borrowings and max out their credit card, they will one day have to cut their standard of living. It Debbie Abrahams (Oldham East and Saddleworth) is completely disingenuous of the Labour party to (Lab): In view of the income given to earners on higher pretend otherwise. The Liberal Democrats want a stronger tax rates, does my hon. Friend not think it is absolutely economy and a fairer society. We are proud that our shocking that nurses have been devastated by the fact No. 1 manifesto commitment to cut income tax for that many will not receive the 1% pay rise? 25 million people by raising the threshold to £10,000 will be met next month, and that the Chancellor has gone further in this Budget by raising the figure to Derek Twigg: My hon. Friend makes a very important £10,500. point. Whose side are this Government on? They are on the side of the rich, not the people who actually run our We hear a lot from the Opposition about tax cuts for health service—the nurses, care workers and so on— millionaires, and they are now complaining about tax rises. Since April 2010, millionaires have paid higher Andrea Leadsom (South Northamptonshire) (Con): taxes on their income, on their capital gains, on their Will the hon. Gentleman give way? pension contributions, on their spending and on their private jets, and they have had to engage in less tax Derek Twigg: I will not, if the hon. Lady does not avoidance. We know that the Chancellor in the previous mind, because I have given way once and I know that Labour Government, the right hon. Member for Edinburgh other hon. Members want to speak. South West (Mr Darling), put the higher rate of income tax up from 40%—they kept it at that level throughout The Government are not on the side of the nurses, as their time—to 50% on 6 April 2010. That was an nurses know and understand; they are returning to true important day for two reasons: first, the higher rate form in cutting the NHS, as they did the last time they went up to 50%; and secondly, Parliament was dissolved. were in power, while doing nothing about the deficits Labour Members were on the Government Benches that hospitals in this country have to carry as a result of only for a few hours while the top rate was 50%, so we their policies and their poor funding of our hospital should not take any lessons from them. services. All the Budget documents show that the rich are I want to turn to the important area of defence, paying a lot more. [Interruption.] The hon. Member for which rarely gets mentioned during Budget debates. Wrexham (Ian Lucas) shouts from a sedentary position Under all Governments, the Treasury has always had a about VAT, but VAT is on spending, and I have news for vital role in the amount of money provided for defence, him: millionaires spend the most, and they therefore but the whole of our defence policy now seems to be pay the most VAT. run by the Treasury, which is not taking account of our present and future security needs. The massive cuts in the Army, the Navy and the Air Force will create real Ian Lucas (Wrexham) (Lab): When the hon. Gentleman problems in future years, and we will come to regret sought the votes of the people of Redcar, he assured those cuts. This Government’s defence policy is all over them that he would not support a rise in VAT, so why the place, and we heard nothing today about what they did he do so when he went in with the Tories? are doing to fund defence in future. That is storing up serious problems for this country’s influence in the Ian Swales: When I stood in Redcar, I had not seen world and its ability to respond to threats, such as what the note left by the then Chief Secretary to the Treasury, is happening in Ukraine and Russia. the right hon. Member for Birmingham, Hodge Hill At my surgery, I see many people on benefits who (Mr Byrne), saying that there was no money left. deserve and need them but who are now waiting even I am pleased that the Government will give further for their personal independence payment to be assessed—it support to apprenticeships. There have been 1.5 million is taking months and months. The system is in absolute of them in the country, with more than 4,000 in my chaos, with people being kicked off benefits for trivial constituency, and I welcome today’s news about an reasons. We are also seeing the impact of the bedroom extra 100,000 apprenticeships. I welcome the cut in beer tax. What is happening to some of the most vulnerable duty, and I pay tribute to my hon.—he ought to be right low-income people in this country is an absolute scandal. hon. one day—Friend the Member for Leeds North It is okay for the Chancellor to say that there should be West (Greg Mulholland) for his relentless campaigning a benefits cap, but we do not know what it actually on the issue. I also welcome the cut in fuel duty, which 811 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 812 Situation Situation [Ian Swales] We worry about the amount of money that sits on companies’ balance sheets and is not invested, so we will help hard-working people all over the country. We should all welcome the increase in capital allowances. would certainly have paid a lot more under the Labour They were raised from £25,000 two years ago to £250,000 party’s plans. and are now being increased to £500,000. That is a huge incentive for people to invest in new equipment, plant Lorely Burt (Solihull) (LD): Will my hon. Friend also and facilities. I have a special reason for welcoming the welcome the scrapping of the duty escalator for wine? £60 million for new technology to support carbon capture, Certain Liberal Democrat Members like a glass of which is mentioned in the Red Book, because it is wine, but that is beside the point. The wine industry has extremely relevant to my constituency. suffered, but it will be much better off under the new move. Caroline Lucas (Brighton, Pavilion) (Green): The Lib Dems used to pride themselves on their green policies, Ian Swales: I am well aware that my hon. Friend so I wonder whether the hon. Gentleman is equally enjoys a glass of wine. It is clearly good news for the happy that the Government are hell-bent on getting wine industry that taxes will be frozen. every last drop of oil out of the ground, as the Chancellor Players at Beacon Bingo in Redcar—they had to said? While I am at it, does he agree that, although the endure my calling the numbers a few weeks ago as part £140 million for repairing flood defences is welcome, it of the “boost bingo” campaign—will be delighted not is well short of the £500 million that we need? only that their campaign to cut the duty from 20% to 15% has been successful, but that the Chancellor has Ian Swales: I am disappointed that, having given way gone further by cutting it to 10%. Bingo is a harmless to the hon. Lady, she took quite a lot of my time. I will social form of gambling and, from having talked to see her outside the Chamber with the answers to those many players that day, it seems to me exactly the kind of questions. thing that we should not penalise too heavily, as opposed to the high-stakes fixed odds betting terminals visited There are many further measures in the Red Book on on us by the Labour party. I totally support the rise in corporate tax avoidance, about which the Chancellor taxes on those machines, of which we would like to see did not go into detail. It is good to see that further steps less. are being taken on electronic services and the shifting of profits. There is more to do, but there are some good I have a race course in my constituency and have things in the Red Book about that. campaigned in this House for the past three years for offshore bookmakers to be charged the betting levy. I I was interested to hear what the Labour party had to am delighted to see that that is in today’s Budget. It will say. I must say that I was hoping for a lot more. We be a huge boost to the racing industry. heard about the bankers bonus tax—the gift that keeps on giving. I was thinking about this the other day. If the Other speakers have mentioned the measures on savings Labour party wants to put income tax up to 50% and to and annuities. I will not say much on those, except that tax bank bonuses at 50%, I have news for it: 50 plus 50 is the measures on annuities will be warmly welcomed. I 100. How many banks will keep on paying bonuses if receive a lot of correspondence from constituents who the entire amount goes to a future Labour Government? feel locked into products that have a very poor return. They will find different ways to reward their staff, as In some cases, they are not able to draw down the they already are doing. amounts that they want. Loosening all that is the right thing to do. As the Chancellor said, people should be That policy does not hang together at all, and neither able to access their own money. I welcome the safeguards does the electricity price freeze, which is criticised by in the small print to avoid people spending all their everybody, from large energy companies down to money and becoming dependent on the state. There is a organisations such as uSwitch and Age Concern, for threshold in the detail. being completely impractical. I was at an event last There is a lot of manufacturing in my constituency. week about the price freeze, where even a Labour shadow We must remember that manufacturing supports many Energy Minister failed to defend it. I think that we will of the service industries. If one looks at the classification hear the end of that one quite soon. of industries, one will see that industries such as The hon. Member for Halton (Derek Twigg) spoke logistics exist mainly because of manufacturing. Those about social housing, but made no apology for the fall who say that the manufacturing industry is only a of 421,000 homes under the Labour Government—a small part of the economy forget all the service industries truly shocking record. that depend on it. The previous Government had a The right hon. Member for Newcastle upon Tyne shameful record on manufacturing. It halved as a East (Mr Brown), who is not in his place, made some proportion of the economy and my constituency felt powerful points about inequality. I was listening very that particularly badly. I am pleased to see the growth carefully. I do not necessarily understand how it is that is happening. calculated, but the Red Book states that I am pleased about the measures on energy-intensive industries. My constituency has not only a steel industry, “inequality is at its lowest level since 1986.” but a large chemical complex. The employers will welcome That is because we are taxing people with the broadest those moves. I also welcome the moves on combined shoulders, despite what the Opposition claim. I know heat and power plants, which are relevant to my that we have a long way to go, particularly in my area in constituency. All those measures will help Britain to be the north-east, which has stubbornly high unemployment more competitive and they are certainly needed. and many social issues. 813 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 814 Situation Situation I welcome the child care credit and, in particular, the Ireland’s finances, I would be grateful if he indicated 85% for people who are on universal credit. That will what more the Government could do to help regions certainly help people get into work. such as Northern Ireland. Overall, this is a Budget for a stronger economy and a fairer society, and I commend it to the House. Sammy Wilson: I listened intently to the Chancellor, and I was pleased when he made the point that he 2.35 pm wanted to ensure that growth occurred in all the regions of the United Kingdom. However, I was disappointed Sammy Wilson (East Antrim) (DUP): I welcome the to listen to the rest of the speech, because I wanted to announcement that the Chancellor made about the know what policies would be introduced to effect that growth figures. In my constituency in Northern Ireland, more even distribution of growth. I welcome the setting there has been a 19% fall in unemployment as a result of up of the enterprise zone in Coleraine, but one has to the increased growth over the past year. That means bear in mind that that will just balance out the 350 jobs that 550 individuals are earning money who were not that have been lost in that town, where severe unemployment earning money this time last year. That is to be welcomed. had already been caused by the closure of some companies. I do not want to take a partisan view of the Budget. It is intended to balance out the impact that the central Fortunately, we in Northern Ireland do not have to be Government’s decisions have had on my constituents in involved in the competition between the Government Northern Ireland. parties and the Opposition party here. I want to look objectively at what was said in the Budget. Mr Redwood: I would just like to correct the record. My first concern is about growth. The Chancellor The forecast is for only a 4.7% increase in exports next gave the growth figures, but we must remember that the year and an 8% increase in investment, which I think is figures have been revised time and again. Even though achievable. it has the imprimatur of the Office for Budget Responsibility, one has to ask what that growth is predicated on and Sammy Wilson: The percentage growth in exports whether it is sustainable. The growth up until now has was 0.8% last year, and in the next year it is forecast to been determined by consumer expenditure. According be 2.6%. By any calculation, that is more than a three to the figures in the Budget, consumer expenditure will times increase in the rate of growth. The Government not jump dramatically, but, compared with the last two have talked about the reduction in the cost of finance years, we will see a 48-times jump in private investment for exporters, but measures that were introduced in and a three-times jump in exports. If all the measures previous years did not have the intended effect. Of that the Government have taken to improve investment, course, that is against the background of a strengthening such as the reduction of corporation tax and the enhanced pound, so there will be a difficulty there. On what is the capital allowances that were announced last year, and Government’s optimism based? If it is on export and all the measures that they have taken to improve exports investment-led growth, past patterns do not show that have not worked in the past two years, on what is the happening. Chancellor basing the massive jump in private investment My second point is about the Chancellor’s throwaway and exports that he is predicting will sustain growth for lines saying, “I am not in the job of easing up just the next year? because things are getting better”, and “We don’t want to spend more.” I am not asking the Government to Mr Brooks Newmark (Braintree) (Con): The hon. spend more; I am asking them to spend differently and Gentleman makes a good point, but from a business better. Of course we have to get the deficit under man’s standpoint, the decision to invest is based on control, but what is the increase in that deficit at the business confidence. When there is growth, they feel moment? Of the percentage of our GDP that is debt, confident about investing in their businesses, which, in what is most of it made up of? It is made up of paying turn, creates jobs and more growth. people to sit on their backsides doing nothing, instead of spending on investment in infrastructure projects, Sammy Wilson: I would accept that point if I had not which would have a return. It would put people back to heard Government Members saying for the past three work, increase tax revenues and stimulate growth. We years that businesses are now more confident because can examine the infrastructure projects in Northern there is a firm hand at the helm. We have not seen that Ireland, such as in tourism. For modest amounts of come through in the figures to date. That is my first money, the Titanic signature project is now bringing in concern. I want growth to be sustained. I want the millions of pounds and half a million visitors a year, Chancellor to succeed. It does not matter to me electorally mostly from outside the state. There has also been the whether he succeeds or fails, but it matters to my extension of the gas pipeline. Many Members have constituents. talked today about the cost of living, and one way of My second point is about the distribution of growth. bringing fuel prices down is to give people alternatives. Most of the growth has been in the south-east of For modest public investment, we have been able to England. Regions such as Northern Ireland, where increase the coverage of gas pipelines in Northern Ireland, there has been growth of 0.3%, have not benefited. bringing people cheaper fuel and helping to bring down their cost of living. Mr Nigel Dodds (Belfast North) (DUP): My hon. Friend has picked up on a point that I was going to Mr Andrew Love (Edmonton) (Lab/Co-op): Will the raise, which is the unevenness of growth across the UK. hon. Gentleman give way? Northern Ireland has a relatively low level of growth, which is having an impact on jobs and investment. Sammy Wilson: I do not have much time; otherwise I Given his expertise in, and experience of, Northern would be happy to give way. 815 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 816 Situation Situation [Sammy Wilson] deputy governor of the Bank of England. She was my first permanent secretary at the Department for Help has been given to industry in Northern Ireland International Development, and it is a wonderful piece for research and development, machinery and so on. I of good news that she is returning and that the Chancellor welcome the increase in capital allowances. In fact, one has managed to onshore her. Many of us were extremely thing that we suggested was that if corporation tax sorry when she went off to the International Monetary could not be devolved to Northern Ireland, capital Fund and will be glad that she is coming back to take allowances should be increased so that companies were up her new position. more able to invest using that mechanism. Such measures could stimulate growth and add to the productive potential Diana Johnson (Kingston upon Hull North) (Lab): of the economy. That is not about spending more; it is The right hon. Gentleman pays tribute to the woman about spending differently. If we are finding it difficult who, as I understand it, has been appointed to the to get private investment in the economy, it can be Monetary Policy Committee. Does he agree that that pump-primed with public investment, which can have appointment was purely on merit? an important impact. I welcome some of the specific spending proposals in Mr Mitchell: I believe that Minouche Shafik is an the Budget, such as the extra spending on infrastructure, absolutely outstanding public servant, and she has been filling in potholes and so on, all of which has Barnett appointed as a deputy governor of the Bank. I am sure consequences. I hope that in spending money to fill in the whole House will agree that it is an outstanding potholes, the Government will not find themselves having appointment. to look for money to fill the financial holes in this The economic plan that has been introduced is right. Budget in a couple of years. We had to make those decisions, because the United I also welcome the changes to pensioners’ savings. Kingdom has racked up far too much debt. Siren voices They will not have an impact on all pensioners, because effectively urge us to head back in the direction from many pensioners in my constituency have never earned which we have come, but it does not seem likely to me enough to accumulate huge savings. Nevertheless, those that the public will accept that. Today’s Budget enhances who have saved should be able to experience the rewards. and underlines the difference between the Government The Chancellor has made a lot of helping industries and the Opposition, and in my view it will stand the test with their energy costs. It is one thing to make temporary of time. changes and give big energy users temporary help, but it is another thing to continue the mad policy of increasing Mr Redwood: Has my right hon. Friend noticed that reliance on renewables, which have pushed up energy despite all the efforts to control the debt, which we need bills. Once the temporary measures are over, firms will to do, debt interest will still be £60 billion next year, still have to face that problem. This country will have to which is more than the education budget? reconsider its energy policy. I welcome the fact that the Chancellor wants to improve the extraction of oil from Mr Mitchell: My right hon. Friend is absolutely the North sea, despite what the hon. Member for Brighton, right, but can he imagine what it would be like today if Pavilion (Caroline Lucas) said, and frack gas, which is a the Opposition’s policies were being pursued? natural resource that will give us cheap energy. If we I wish to make a point that the Chairman of the stick to a policy of dear energy, we will pay the Treasury Committee, my hon. Friend the Member for consequences. Chichester (Mr Tyrie), will not agree with, although I thought his speech was excellent in every other respect. 2.46 pm The Government deserve huge praise for sticking to their plans on international development. The House Mr Andrew Mitchell (Sutton Coldfield) (Con): It is a will be aware that as a result of the all-party support for pleasure to follow the hon. Member for East Antrim that policy, countless lives have been saved. Hundreds (Sammy Wilson), who speaks with passion for his of thousands of children are alive today in the horn of constituents. Towards the end of his speech, he focused Africa who would not have been but for British leadership on the changes that the Chancellor has made to savings on the issue. policy today. Those are significant reforms. We will Through the House strongly supporting the obviously need to have a look at the details of them, but Government’s policy to vaccinate, the British contribution I suspect that although this Budget will be remembered means that we will vaccinate a child every two seconds for many things, it will be remembered above all for in the poor world, and every two minutes it will save a those important reforms to savings. child’s life from the effects of diseases that none of our Fair’s fair; the Chancellor deserves considerable credit children die from today. As a result of reforms introduced for today’s Budget. The facts seem to me to speak for by the Government, such as building up governance themselves. He set a course some time ago, and he has structure and ensuring that poor countries have the stuck to it. He has taken an immense amount of incoming benefit of effective taxation, independent media and so fire from his detractors for many of the decisions that forth, we should all be incredibly proud of the success he has made in the past four years, but the United of that policy. I am enormously proud to have served in Kingdom is in a far better position today than most a Government who stuck to their promises to the poorest other countries. He deserves credit for his constancy people in the world, and who did not seek to balance and the decisions that he has made. the books on the backs of the poorest, either in Britain I want to pick up on a number of things that the or overseas. That is also hugely in British interests—this Chancellor mentioned. First, it is a small point, but he is not just soft-hearted altruism—because it is not only mentioned that Minouche Shafik was returning to be a aid from Britain, but aid and development for the 817 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 818 Situation Situation benefit of Britain. It enhances the security and stability six miles from my constituency of Sutton Coldfield as of our generation and of future generations, and it the crow flies, but light years away in most other respects. builds on the prosperity that our generation enjoys, and What that programme showed in connection with welfare that future generations will enjoy to a greater degree as was the effect over many years of a very non-interventionist a result of those successful international development policy. It was almost as if benefits were paid, and once policies. paid the recipients were forgotten. I also believe that the Chancellor was right to raise The Government deserve considerable credit for helping the threshold at which tax becomes payable, and—at a those who cannot help themselves—for example by time of great austerity—to target help on those who maintaining disability benefits throughout the stage of earn the least. Of course the 40% level bites much austerity—while also ensuring that we give help to earlier than we intended, but the austerity we have faced those who can work and should do so. It is tough, was harder and deeper, and inevitably those with a little difficult and hard to re-craft welfare policy, but in that more have had to pay a little more in those circumstances. Channel 4 programme we saw why it is essential to I am clear, however, that the 40% band needs to be tackle the issue. raised as soon as we can, and the drag of people into In conclusion, I believe that the welfare reforms, that band should be reversed once the economy can aspects of which command support throughout the withstand it. country, could be one of the coalition Government’s finest achievements during their term in office. I shall Mr Newmark: Most importantly, does my right hon. end where I started by saying that the Chancellor and Friend agree that raising the personal allowance from his colleagues on the Treasury Bench deserve considerable £10,000 to £10,500 will save up to 3 million individuals credit for crafting this Budget, which tackles needs at up to £800 extra a year, which is good news for their this stage of the economic cycle. I have no doubt pockets? whatsoever that his own share price will be rising, and rightly so. Mr Mitchell: My hon. Friend, as always, is absolutely right, and bearing in mind the speech by the right hon. 2.56 pm Member for Newcastle upon Tyne East (Mr Brown), it is important to remember that in 2010 the richest 1% in Mr Tom Harris (Glasgow South) (Lab): May I say Britain paid a quarter of all income taxes. Today the how glad I am that the hon. Member for Fareham richest 1% are paying a third, and everyone in the (Mr Hoban) is still in his seat? I enjoyed his contribution House would agree that under these circumstances, that and it had passed me by that he had left the Government is correct. and returned to the Back Benches—the curse of Harris The focus on getting younger people in particular strikes again; just about every Conservative Minister into work is enormously important, and the raised that I have any time for, like, or respect has somehow thresholds clearly provide some help to that group. found their way back on to the Back Benches— Reducing and ending employer’s national insurance [Interruption.] You’re welcome. contributions for those under 21 was an important I begin by welcoming the good news not only in measure made last year that I strongly support, just as I today’s Budget, but the wider economic news against support the emphasis from across the House on increasing which speeches are being made. Unemployment in my the minimum wage. All those things are extremely constituency has fallen to 4.8%—a total of 2,187 jobseeker’s important. allowance claimants—and it is important that Labour We have also seen other ways of improving the situation Members welcome good news when it arrives. It is good for those entering the world of work. Last year, 510,000 news for my constituents, and good news for the whole apprenticeships started, while in 2010 there were only of Scotland and the UK that unemployment has taken 230,000. That is enormously important in the part of such a large dip in the latest published figures, and we the world I represent in the west midlands. Money has welcome that without a “but” at the end. also been announced for new locally generated policies The Lib Dems are like a broken clock—they are right in eight core cities in Britain, which is right. However, at least twice a day. [Interruption.] Yes, they are clearly we still have 1 million people in this country—children keen to attend the debate; perhaps they scarpered when who have left school or students who have left university— they saw me standing up. I know that raising the tax who are not in education, employment or training, and threshold to £10,500 is not a policy supported by those we need an unremitting attack on that. It is quite wrong on the Labour Front Bench. That is a matter of some that young people who have left school or university regret for me as it is a policy I have supported for some should find themselves doing anything other than earning time, and fundamentally I think that the lowest paid or learning. Although we have seen a significant decrease should be taken out of tax altogether. One argument in the JSA claimant count, unemployment—particularly against raising the threshold is that it also benefits among young people—remains far too high in the west people higher up the income scale, but I support the midlands, and we must continue that unremitting attack. policy not despite its tax-cutting effect on the better-off, My final point was touched on in an excellent speech but because of it. I do not think there is anything wrong by my hon. Friend the Member for Fareham (Mr Hoban) with reducing the tax take of people further up the and concerns the changes that the Government are income scale, and I do not regard tax as an unalloyed making to welfare. I believe there are aspects of those good thing. I see tax as a necessary evil, and where we changes that Members across the House can, and should, can reduce the tax burden, we should do so. support. Many right hon. and hon. Members will have The Labour party introduced the national minimum seen “Benefits Street” on Channel 4, which I think did a wage—that is often forgotten in these enlightened days huge service to public broadcasting. Benefits Street is when we see the right hon. Member for Sutton Coldfield 819 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 820 Situation Situation [Mr Tom Harris] opposition he somehow opposed the last Labour Government’s spending plans. That is not the case: (Mr Mitchell), and even the Liberal Democrats, welcoming right up to November 2008 the official Conservative a big increase in the minimum wage. It is often forgotten party policy was to support our spending plans. That that when it was introduced, only the Labour party either means that the Conservatives believe the deficit supported it, and it was opposed by the Conservative was created in the 18 months from that point until the party and the Liberal Democrats—[Interruption.] I general election, which frankly none of us believes, or wondered whether Scottish National party Members that they are now saying something that is completely were going to say something, because there would be a the opposite of what they were saying in opposition. I riposte to any claims that the SNP supported the national remember sitting on those Government Benches—in a minimum wage. couple of years’ time I hope to be back there—and I do I believe that the national minimum wage must be not recall any Conservative Member, or indeed Liberal entrenched in some way, and what better way of doing Democrat Member, calling for an end to spending on that than by instituting a change that means that someone their local schools, their local hospitals, their local who earns the minimum wage will not pay a penny in roads. The fact is that the deficit was almost entirely tax? That is the situation the Labour party should be caused not by profligate spending by the Labour pursuing, and such a policy would be welcomed throughout Government, but by a disastrous fall in tax revenue the country. caused by an international recession—the deepest any of us have seen in our lives. That is the truth of the Mr Mark Prisk (Hertford and Stortford) (Con): I matter. was one of those who opposed the national minimum Conservatives and Liberal Democrats—and I have to wage, and I was wrong. It was introduced sensibly and say especially Liberal Democrats, who seem to get more modestly by the last Labour Government, to my surprise. incensed about this than anyone, even though they said The challenge for us all, however, is that those on the not a word about it in opposition—stand up and demand edge of the labour market can be priced out if future all this nonsense about apologies for the deficit and for Governments are too ambitious about where it stands. mistakes that were made. Of course all Governments That is the fear about entrenching it. Does the hon. make mistakes, but let us be honest with the British Gentleman respect that point? public about how the deficit was created. It was not created because new schools were built. It was created Mr Harris: Yes. I absolutely believe that when the because of a recession that put a lot of people out of minimum wage was introduced, it was set at the right work and that cut off revenue to the Treasury. That is level. It disappointed a lot of people who wanted it to why we are where we are. It is not because of Labour’s be higher. There will always be those who want the spending plans. minimum wage increased beyond what the market can There are some items in this Budget that I welcome, sustain. The hon. Gentleman is absolutely right: it has but I fear it will be most notable not for the issues it to be generous, but it has to be moderate so that we do addresses, but for those issues it needs to address and, not have the negative effect of losing workers. sadly, ignores. But what about help for ordinary working families? I am loth to use some of the more overused phrases that 3.4 pm we are encouraged to use like “cost of living crisis”— trademark patent pending—but the fact is there is such Mr John Redwood (Wokingham) (Con): I would like a crisis. If average wages in real terms have dropped by to remind the House of my declaration of interests: I £1,600—and I have yet to hear any Minister saying that provide some advice on global economies and investments is not the case—that is something of a crisis if not for to an industrial company and an investment company. people in this House then certainly for families and I greatly welcome this Budget, because I think it is workers in my constituency. Yet despite the high number right that we need to do more to help the promotion of of headline-grabbing announcements, many of which I exports, industrial investment, the rebalancing of our would support, there is absolutely nothing in what the economy and continuing the long process of getting the Chancellor said that will address this urgent issue that deficit under control. In our exchanges already I have faces the whole nation. highlighted the fact that debt interest will be higher than the education programme next year, despite the Mr Redwood: The hon. Gentleman is right that there Government’s best endeavours, and that unless we carry has been quite a big fall in real wages, but will he accept on to make good and rapid progress to get the deficit that the biggest part of the fall occurred in 2008-10? down and eliminate it, that debt burden will build up and future Governments, whoever they may be, will Mr Harris: I am, as always, very grateful to the right find they are spending more and more money on debt hon. Gentleman for intervening as I was just about to interest and have less and less for the public services that get on to the events of 2008-09. I want to address the our electorates expect us to provide. deficit, because so many Government Members have I would like to clear up a common misunderstanding raised it in the House whenever they have got the about how that is being done that I think has occurred chance in a way that I find completely disingenuous, not because of the use of jargon and economists’ language worthy of an adult debate and not related to what in describing the process. The reduction in the deficit actually happened in 2008-09. has been described as 80% by spending cuts and 20% by An observer from Mars who tuned into what the tax rises. That is true if the programme is successfully Chancellor said today might have come to the wrong completed by 2018 and if we measure it as a percentage conclusion that when the right hon. Gentleman was in of GDP at that point, but that is not how most people 821 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 822 Situation Situation think about how an excessive deficit is curbed. If we Charlie Elphicke (Dover) (Con): It was a rant. have a large deficit in our own accounts, we have either to find a way of earning more money or to make Mr Redwood: The Leader of the Opposition’s rant, as immediate cuts in the amount of cash that we spend. I my hon. Friend says, had just one basic message: the think a lot of people outside the House think that, wrong belief that the Conservatives want tax cuts for because we inherited a deficit of £160 billion, 80% by the rich and misery for everybody else. What we want is spending cuts meant £132 billion-worth of cash cuts in tax cuts for everyone, and what this and the previous public spending. Of course it does not, and I am very Budget offer is tax cuts for everyone. glad that it does not, because that would have done Let me explain how we have different types of tax cut huge damage to important public services. for people at different levels of income. We take those What the Government have decided to do is limit the on the lowest incomes out of tax altogether, so they get rate of increase in public spending and promote a more a genuine tax cut: they go from paying something to active economy so that tax revenues eventually catch paying no income tax at all. The House is, I think, up, and we are in that long process. The first three years united on the wisdom of that. At the top end, we cut the of this Government saw very little growth in the economy, rate, and what happens is that the rich and successful which delayed the reduction in the deficit because we people actually pay more tax, not less. That seems to me did not get the surge in tax revenues we were hoping for. to be magic, because then everybody is happy—or they Now it looks as if there is better news, with faster should be. Only the very jealous should be miserable, growth coming through, and so the process can be because what we then have is the rich staying here, completed, assuming the economy still recovers. investing here, creating jobs here, creating more money here and paying more tax because the rate is lower. I had thought we might cut public spending in real What is not to like about that proposition? terms in the first two or three years, but it appears from the latest figures that there was a small real increase in What is odd is that the Labour party in office, until public spending. In the first three years, current public the last couple of days, knew that and kept the top rate spending went up by more than inflation, and if we of tax below the level that we inherited and below the look at the impact on the economy as a whole, it gives level we have now fixed. It is a bit rich that Labour is the lie to all those who suggest too much was cut too now complaining that we are light on the rich, given soon, and that that reduced output and was the cause of that our tax rates are collecting a lot more tax from the the delay in growth. If we look at the attribution of rich and are higher than the rates that Labour imposed. growth and decline in activity and incomes, we see that Indeed, we could collect even more tax from the rich if the public sector made a small positive contribution to we brought the rates down a bit more, which I hope, the economy in every one of the first three years of the come a Conservative Government, we might be able to coalition Government. I hope that reassures some of do. Surely what we want is to maximise the revenue those on the Opposition Benches who felt too much was from such people, not to make a political point and being cut and damage was being done. The good news is drive them abroad, so that we have a society with less that it was not. There will have to be some reductions in money, fewer jobs and less creativity. some programmes in the years ahead in order to hit the I am pleased that the Chancellor made some moves targets, however, because although public spending will on energy. We need a much bigger and stronger industrial continue to rise in cash terms, there will need to be a recovery than we have generated so far. The first thing little bit of a real reduction in the next Parliament; and we need to do to have such a recovery is to ignore the because some of the programmes need to go up quite a advice of the Green MP, and to go for cheap energy. lot—debt interest will go up quite a bit anyway—we will America is going for cheap energy, and it is re-industrialising have to make reductions in other programmes, whoever very quickly. America is now super-competitive against is in office. companies in the European Union. A leading chemical major in Germany has recently said that it will put more Mr Newmark: My right hon. Friend is making an of its investment abroad, outside the EU altogether, excellent point. Does he agree that, notwithstanding the because, in the light of the energy crisis, the gas feed austerity he is talking about and the fact that more than stock is uncompetitive. We need to find that gas and to 500,000 jobs were lost in the public sector, what is get it out as quickly as possible. We need to match the particularly remarkable about these tough times was United States’ shale revolution if we wish to save our that 1.7 million jobs were created in the private sector? high-energy-using industries and to re-industrialise and give some hope to the northern cities in particular, with Mr Redwood: Yes, that was magnificent news and it their long tradition of industrial activity, because they shows that the private sector is remarkably resilient need much cheaper energy. despite all that has been thrown at it. That is why we can We need to do more for savers, and I am delighted by now look forward to both better living standards and a an elaborate and interesting set of measures from the better public sector: we need all those people to be in Chancellor on saving. Savers have had a miserable time work and paying more tax in order to pay for those after the collapse. Rightly, successive Governments and public services that are much-wanted by our constituents. Governors of the Bank of England have kept interest I would also like to deal with the argument from the rates on the floor, as they had to do, to try to stimulate Opposition, which I thought was put in a very exaggerated activity and to prevent a worse collapse than we experienced form by the Labour leader in his response to the Budget, in 2008, at the height of the crisis. That has been very in what was a rather partisan appearance which was out bad news for savers. The tax changes will help savers, of sympathy with his new style at Prime Minister’s and the pensioner bond offer, if the rates are around the questions. I am not one to condemn partisan debate, as level we are now looking at, makes sense and would be a I think sometimes it livens the place up, but it was a very bit more attractive and something for pensioner savers partisan speech by the Leader of the Opposition. to look forward to. I also welcome more flexibility for 823 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 824 Situation Situation [Mr Redwood] The bottom line is that—just like the right hon. Gentleman’s intervention—the Chancellor’s speech was pensioners generally. Annuities are not good news at the hugely political. He did not tell us about recovery; he moment, and if people can put that off or have a better did not tell us that he is trying to lift the burden from choice, that may well be an excellent answer. hard-working families; he did not apologise for trying This Budget needs to be good for savers, for industry to rebalance the economy on the backs of the poor. and for exports, and we are going in the right direction. This Budget speech was a political platform for the next It will help to promote a bit more growth, and only if election, and if it was supposed to be a vindication of we get a lot of growth will we get out of this debt bind. his policies, then it failed, because the policies have failed. 3.13 pm The Chancellor did of course have a deal to say about Stewart Hosie (Dundee East) (SNP): I start by welcoming tax. He is right to increase the basic rate threshold to a number of the measures that the Government announced, £10,000, and then to £10,500. Raising the threshold such as the increase in the revenue non-compliance from £6,500 to £10,000, resulting in savings this year of budget, increased export funding and the further doubling £700 for the average person, is sensible, but of course, of the annual investment allowance. If the Government that is only part of the personal tax story.This Government carry on like this, we will back to having an industrial have pushed ahead with a tax cut for millionaires and buildings allowance policy, which should never have have continued to squeeze the middle—the genuine been scrapped in the first place. There is also the halving, middle class. The threshold for those paying the 40% rate at last, of bingo duty—my favourite cause. All these of tax has come down from £37,500 to under £32,000, one-off measures are very sensible, could be implemented so for every penny saved at the bottom, they have had to by any Government and ought to be welcomed by pay more than a penny at 40%. I therefore welcome the everybody. fact that the 40% threshold is going to be increased, but that is not until 2014-15. It will not change the fact that However, that does not change this Government’s the proportion of people paying the 40% tax rate has underlying direction of travel or the underlying shape doubled over the past two decades, and there are now of the economy as described to us in the Red Book. 2.1 million more people paying a rate of tax that was Scotland has suffered an 11% cut in the fiscal departmental previously only for the rich. expenditure limit, a 27% cut in capital and a real-terms 9.9% cut in the overall budget. The numbers announced It is not just the middle: it is the poorest in society today imply a further real-terms cut in the budget. I do who have been hit hardest. We know—the right hon. not want to speak too much about Scotland, but it is Member for Wokingham (Mr Redwood) told us—that important that we get on the record just how damaging the proportion of tax cuts to tax rises is 4:1. We knew this Government continue to be. from previous Budgets that the impact of the discretionary consolidation would be £155 billion. Interestingly, the What the Budget speech and the Red Book tell us is Government have removed that figure from the Red that, by every measure the Chancellor has set for himself, Book: they have removed the year 2016-17 from the he has failed. In his first Budget, he told us that in forecast, and are now telling us that the discretionary 2013-14 the current account deficit would be 2.3% of consolidation will be only £126 billion. However, that GDP, borrowing would be reduced to £60 billion and forecast goes only to 2015-16, and I am concerned that the net debt would be 70% of GDP. Today, he told us they are not making a longer forecast, so we can see the that for the same year, the current account deficit is real scale of the damage they are trying to do. higher, borrowing is actually at £95.6 billion and the net debt is around 75% of GDP. We in the SNP know where the pain of this Budget Let me be generous: any Government can make a and of this Government’s policy direction will be felt. It mistake for one year, so what about the big targets the will be the 144,000 households in Scotland who are Chancellor set for himself? They were: that debt would losing some £3,500 each through changes to incapacity begin to fall as a share of GDP by 2014-15; that the benefit. It will be the 372,000 Scottish households who current account would be in balance the following year; have seen tax credits reduced to the tune of £800 a year. and that in the same year, public sector net borrowing It will be the 620,000 families hit by changes to child would fall to £20 billion. Debt will not begin to fall until benefit, who have lost an average of £360 a year. It will 2016-17—two years late. The current account will not be felt by the 55,000 people who are losing an average of be back in the black until 2017-18—two years late. £3,000 a year as disability living allowance is removed. Public sector net borrowing in 2015-16 will not be £20 Those are the people whom we should be thinking billion; rather, the forecast figure—£68 billion—is more about and who should be helped. Instead, the Government than three times that. Not a single one of the Chancellor’s continue to try to balance the books on the back of the key targets has been met. poor. I welcome the fact that the Budget forecast at least Mr Redwood: Has the hon. Gentleman noticed the says that there will be some growth, but it is once again forecasted very sharp fall-off in petroleum revenue tax, heavily predicated on business investment growth. In and is that reflected in SNP plans? Budget after Budget, the Government have produced five-year growth forecasts. In 2010, growth was predicted Stewart Hosie: It is extremely convenient that, once to be between 8% and 10% a year, but by the time we again, we have a “North sea oil price crash” story on got to 2011 it had turned negative and they had to set Budget day, some six months before the referendum. If yet more ambitious targets for the next five years. So it the right hon. Gentleman keeps saying it, I am sure went on, and we find in the Red Book that the forecast someone somewhere will finally believe him. I am not business investment growth for last year turned negative dreadfully convinced. again. I am desperate to see positive business investment 825 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 826 Situation Situation growth, and the jobs that come with it, but we keep pleased to see the help for savers, because we must seeing the same story from the Government. They keep rebuild our savings culture in this country.The simplification failing. of ISAs, the extension of the annual limit and the What should the Government have done? There are introduction of the pensioner bond will make a great any number of policies that they might have adopted. deal of difference to many of my constituents. I am also Instead of tinkering with air passenger duty, they might pleased to see the new pension flexibility.Treating pensioners have cut it properly or acted sensibly to boost international like grown-ups by not forcing them to buy annuities will connectivity. Instead of simply freezing fuel duty, they be welcomed across the board, and it is long overdue. I might have introduced a real fuel duty regulator to am glad that a Conservative Chancellor has seen sense smooth out future spikes. They might have cancelled on that. some of their austerity measures, or at least removed I am particularly proud that a Conservative Chancellor the cap on discretionary housing payments to help the is pursuing our natural Conservative tax-cutting instincts. poorest. There are so many things that they might have It has to be right to take more and more people out of done. paying income tax. Equally, it is right to make the other In the North sea, the Government announced that changes that make a difference to people’s lives, and they would implement the Wood review in full. That which the Opposition welcomed. Even the halving of will save the industry some £45 million, and it is to be the bingo tax from 20% to 10% is something that welcomed. However, they are keeping the offshore nobody, on either side of the House, could quibble chartering regime that they announced last year, which with. will cost the industry £600 million. They keep getting it I was pleased to see the support for manufacturing wrong every single time. and businesses. Having been Secretary of State for Wales, I was particularly pleased to see the continuation Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) of support to energy-intensive industries through (SNP): Should the Government not acknowledge that compensation for green levies. That has been an enormous the North sea is booming, and that the drop in revenues problem in Wales for companies such as Tata Steel, and is due to investment being tax deductible? What we are the measures will make a great deal of difference to our seeing is a healthy North sea for the years to come. manufacturing base and its recovery. It is good that we are doubling the annual investment allowance. Giving Stewart Hosie: I am sure that we all support £14 billion- our companies the most competitive export finance in worth of investment this year and £100 billion in the Europe will certainly help. In the official EUROSTAT plans, and the drilling of 133 oil and gas wells to invest figures announced yesterday, I was pleased to see that for the future. We would all be far less happy if that the UK recorded the strongest export growth in the investment was not taking place. The problem is that all European Union last year and outstripped every other the good things that the Government could and should large economy by a large margin. I want that to continue, have done would have required them to change their and the Budget will help to keep our businesses on policy fundamentally, away from billions more in austerity track. cuts and away from the policies that have stifled growth I would like to thank the Chancellor for the attention and recovery over the past few years. that he has given to the fuel duty incentives for cleaner I am not at all convinced that this was a Budget for fuels. In the autumn financial statement, it was noted recovery. It was a political Budget from an all-too-political that the fuel duty differential between the main rate of Chancellor. I saw Tory Back Benchers waving their fuel duty and the rate for road fuel gases such as Order Papers not only after the Budget statement but compressed natural gas would be maintained until March before it was even made, and I suspect that such hubris 2024. That, together with the differential on liquefied will come back to haunt them. I hope that with a yes petroleum gas reducing year on year by 1p a litre, vote in this year’s referendum, this will be the last Tory remained to be reviewed on vehicle uptake and public Budget ever to affect Scotland. finance grounds at Budget 2018. In Zero-m, a company in my constituency, Mr Peter Dodd has been pursuing that relentlessly with his team, and I think it will make a 3.23 pm great deal of difference in future. Methanol is a clean Mrs Cheryl Gillan (Chesham and Amersham) (Con): fuel, which pollutes less than other fuels. It produces It is a pleasure to follow the hon. Member for Dundee virtually no particulates or NOx, and a reduced amount East (Stewart Hosie), although my Scottish father would of CO2. It is less explosive than petrol, and therefore be turning in his grave if he thought that Scotland even safer. Those measures are most welcome. would ever go down the independence route. With your I want to make a point on my pet project, High Scottish ancestry, Mrs Laing—although, sitting in the Speed 2. I notice that HS2 is again included in the Chair, you could not possibly acknowledge this—you infrastructure pipeline. In the words of Sir Rod Eddington probably agree with me. I heard what the hon. Gentleman in his 2006 transport study: said, and I hope that there are many more Budgets to “The risk is that transport policy can become the pursuit of come for the whole United Kingdom. Scotland remains icons. Almost invariably such projects—‘grands projets’—develop better off with the rest of the United Kingdom. real momentum, driven by strong lobbying. The momentum can In the brief time available, I welcome the provisions make such projects difficult—and unpopular—to stop, even when in the Budget. The Chancellor has held firm despite the the benefit:cost equation does not stack up…The resources absorbed many voices that have tried to steer him off his course. by such projects could often be much better used elsewhere.” Today he is beginning to reap the rewards of his courage Public sector overspend is certainly the trend. Two in sticking to a path, however difficult, and making sure recent projects—HS1 and the channel tunnel—went that he was not diverted from it. I was particularly 36% and 99% over budget respectively, and the average 827 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 828 Situation Situation [Mrs Cheryl Gillan] Dispatch Box today and expected plaudits. Following the delayed return of growth in the economy, the overspend on 11 recent major public sector building Government parties exude an air of complacency, but projects has been 158%. If HS2 continues, that trend that is at variance with the views of most of the country will cost around £72 billion, and the Institute of Economic and certainly of most of the people I represent in Affairs has estimated that it could go up to £80 billion. Wrexham. We do not even know what the HS2 compensation The Government imposed substantial increases in packages will add up to. There are nearly 500,000 VAT in 2010, contrary to the assurances given before properties within 1 km of the proposed line, but the the general election by both parties. The immediate Government have not yet been able to give us details of result was that money was taken out of local economies the compensation package. I hope that when the Financial and paid directly to the Government, suppressing demand Secretary to the Treasury responds to the debate, he will in the retail and construction sectors. The long-term be able to provide a light at the end of that particular result has been a reduction in business activity. Lack of tunnel, although I hope that it will not be in the form of demand locally has been exacerbated by the failure of a train coming towards me. Those people need to know investment in local business. This Government’s failure what the compensation package will be, and when it will to tackle the issue of business investment endures to become available. Constituents of mine are losing their this day, and is a consequence of their fundamental houses and their livelihoods. They are being evicted failure to implement meaningful reform of the banking from their properties without proper compensation, sector. We heard nothing about that today. and they need to know that the Government are listening In the early months of this Government, they talked and paying attention to this matter. a good game. They even set up an inquiry into high pay, This project has to be queried at every step along the although only in the public sector, not in the private way. We are still paying down a large debt, and to pay sector. They have done nothing about the issue, however. down the money that will be spent on HS2 will involve We hear the occasional bleat from the Secretary of State us in untold interest and expenditure. Even business for Business, Innovation and Skills, but the coalition and industry do not want HS2. The Institute of Directors Government have done nothing. recently surveyed more than 1,300 directors to gather Again and again, Wrexham businesses tell me about their views. The results revealed that the IOD’s members the failure of the banks to provide adequate investment. would rather see £50 billion spent on bringing Britain’s Based as the banks are in the square mile, and focused existing transport infrastructure into the 21st century. as they are on financial services, that is not surprising. Over the past two years, the importance of high-speed Why should those institutions understand the modern rail to IOD members’ businesses has fallen significantly. manufacturing and retail economy that is Wrexham, HS2 is not the infrastructure project that Britain needs; when none of their meaningful decisions is made by nor is it the one that British business wants. Not enough those who live in our community or have any knowledge businesses stand to benefit from it. It will benefit the of it? few businesses, rather than the many. I ask the Treasury to take the opportunity of this Guy Opperman (Hexham) (Con) rose— 2014-15 Budget, which is excellent in many ways, to re-evaluate the value for money on this project. If it Ian Lucas: I will give way to the hon. Gentleman; I cannot cancel it, will it at least look at how the benefits know that he takes an interest in this subject. could be spread more widely and people’s interests could be protected, and announce proper compensation Guy Opperman: The hon. Gentleman must surely as soon as possible? accept that it was a mistake for Labour to vote against the provisions in the Financial Services Bill on 23 April 3.31 pm 2012. Those provisions would have introduced greater competition, greater choice and a greater degree of Ian Lucas (Wrexham) (Lab): It is a real pleasure to local banking. follow the right hon. Member for Chesham and Amersham (Mrs Gillan). As always, she has made a powerful case Ian Lucas: The fundamental mistake was the on behalf of her constituents. demutualisation of organisations such as Northern Rock In 2010, the Chancellor had what he called an emergency by the Conservative Government in 1986 and the years Budget. There was in fact no emergency. His predecessor’s thereafter. The hon. Gentleman should be arguing against Budget had already set out the deficit reduction strategy, such decisions, so that we can start creating institutions and that policy was largely supported at the time by the like local building societies again. Liberal Democrats. However, the present Chancellor— Our current banking system is not the only model of supported by the Liberal Democrats, who preferred banking. In Germany, the Sparkassen model was affected Government to consistency of policy—made a choice much less than most economies by the 2007 recession. and promised in 2010 that he would eliminate the deficit Local banks known as Sparkassen operate within by 2015. On his own terms, he has failed. Today’s geographically restricted areas and provide both retail Budget is a confirmation of that central fact. and business banking there. Notwithstanding the existence In 2010, when the economy needed stimulus and of ordinary multinational banks, over 20% of ordinary support, this Government provided neither. Instead, we local residents choose to invest in their local Sparkassen. and our constituents have endured four years of mistaken I welcome what the Chancellor said today about economic policy, which has resulted in most of the ISAs, but I believe that people would invest in local people I represent being £1,600 a year worse off than banks and institutions that supported the local economy they were in 2010. Yet the Chancellor stood at the and created jobs for young people. We want to see that 829 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 830 Situation Situation happening, which is why we support the development of precisely on those terms and has been in his position for regional banks. Ever since the Conservative Government many years, to be linked to that of other employees in started to demutualise in the 1980s, destroying institutions the organisation. such as Northern Rock, the Leeds Permanent building I am looking for support. Members in all parts of the society and the Halifax building society, the move has House can join my campaign. I need 500 signatures by been ever more towards centralising investment by the 4 April, and I hope the Chancellor of the Exchequer banks in this country. Local economies have suffered as will consider joining it, if he is a member of the Nationwide a result. building society. We need to ensure that the people we Business investment has not recovered since 2007, represent know that we understand that this country and the City still dominates the economy. The growth faces a cost of living crisis and that individuals are that we are seeing in the UK is growth of the kind that worse off now, and that we will not put up with increased led to the problem in the first place. We can all see the executive pay of millions of pounds for people who are train coming down the track. We know what kind of a not supporting the local economies in our constituencies. recovery this is, and we need to do something about it. The people I represent are not benefiting from the recovery at all. Women in my constituency are still 3.40 pm earning less than they were in 2010, and men there have also seen a reduction in their incomes since that time. David Mowat (Warrington South) (Con): It is a pleasure to follow the hon. Member for Wrexham (Ian Lucas). Alun Cairns (Vale of Glamorgan) (Con): Will the There are four tests of a Budget that we could reasonably hon. Gentleman give way? apply. First, is the cake growing? Secondly, are we distributing it fairly? We will come to that. Thirdly, did the Budget get tempted by short-term electoral Ian Lucas: I must make some progress; I have a considerations or was it long-term and structural? Fourthly, particular point that I want to make. when the Chancellor had an opportunity, was he radical This Government are not even addressing those issues. and reforming? On all four measures, this Budget is a They do not seem to understand that they exist. Nothing success. that the Chancellor said today will help the people I represent. They are fed up with inequality in this country, First, on growth, as we have heard, we are the fastest- and with the massive support that is given to those in growing country in the OECD—that is a tremendous the City and those who earn millions of pounds a year, statistic—and growing faster now than even the United who are so remote from the lives of my constituents States and Canada. In particular, we are growing faster that they can have no understanding of how the rest of than France, the country on which I believe the Opposition the country works. base their policies. Secondly, are we distributing the results of that growth fairly? We just heard a speech Believe it or not, there was a time when the Prime about fairness from the hon. Member for Wrexham. Minister supported a move towards greater equality. He Income inequality in our society is at its lowest level for quoted “The Spirit Level” in 2009, before he was elected, 28 years. Why is that? Because this Government increased when he was trying to present a positive face for the capital gains tax by around 40% when they came in and Conservative party for the election. Those days are long have increased stamp duty by more than that. Both gone. measures are bringing in significant amounts of revenue. We need to take responsibility ourselves. Inequality is The Opposition are caught up in the debate on the the issue of the time. I am a member of the Nationwide 45% and 40% income tax rates. That is not how to building society. achieve more equality in society. People are getting rich because of capital gains. Five years ago I knew people Alun Cairns: Will the hon. Gentleman give way? who were paying 10% capital gains tax under the previous Government when they sold their businesses. We have fixed that, which is why income inequality is much Ian Lucas: I will not give way; I have a particular lower now. A further reason is that we are getting a point to make. great deal more in revenue from sorting out tax avoidance. The chief executive of the Nationwide building society The third test is whether the Budget was designed for was paid £2.3 million last year. I have written to him short-term electoral gain or whether it introduced long-term asking him to support a motion within the society that structural change. Some measures will kick in fast. The his salary should be no more than 75 times the rate of £500 extra on the personal allowance will come in the lowest paid employee in the organisation. This is a quickly, but the Chancellor has spent just as much mutual society that we should all support. He has money as he spent on that on the carbon price floor, refused, and I as a member, acting as an individual, support for energy-intensive industries and the investment intend to present a resolution to the annual conference allowance. None of those things will take effect in the of the Nationwide building society. A mutual organisation short term and all of them are important to the structural should respect the principles of mutuality and should rebalancing of the economy. accept that it is not appropriate for investors’ money to be used for that level of executive pay. If people want executives paid at that level, they can go and bank with Sheila Gilmore (Edinburgh East) (Lab): I do not Barclays. When I shifted my account to the Nationwide know whether the hon. Gentleman has had time yet to building society, I did so because I believed in mutuals. I look at the OBR report. The comment on the investment want my chief executive’s pay, like that of the chief allowance in that report is that it will make very little executive of the John Lewis Partnership, who operates difference to economic growth. 831 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 832 Situation Situation David Mowat: I have not had a chance to read the This issue is not just about what is happening in the report. According to the Red Book, the cost of that United States on shale gas and shale prices; it is also allowance will be £1.2 billion next year, an awful lot of about what is happening on mainland Europe. It is an money. I will not respond to her point about growth, inconvenient truth—to use a known phrase—in this because my point was that the Chancellor has introduced whole issue of carbonisation that we produce not only medium-term structural measures into the economy, considerably less carbon per head than the EU average, which is a responsible approach. but less carbon per capita. We produce 30% less carbon The fourth test is whether this is a radical and reforming per head and carbon per capita than Germany, yet Budget. The measures on pensions, ISAs and particularly Germany is pursuing a policy of building unabated coal annuities are genuinely reforming, genuinely radical power stations at scale. We are being left behind in all and potentially genuinely transformative. that, and what the Chancellor has done on the framework is absolutely spot on and will make a difference to those I want to talk a bit about all those things, but first I 900,000 jobs. I predict that we will be revisiting this want to say something about the support the Chancellor issue at the next Budget and certainly into the next has been able to give the Foundation for Peace—the Parliament, because there is a great deal of unfinished peace centre in Warrington. There was an issue to business in this area. address, as it was funded from the lottery and that funding will run out in April. The work the centre does Before I leave the field of energy, may I say in passing for victims, both of the troubles in Northern Ireland that the infrastructure plan is very welcome? Two big and of 7/7, was under threat, and the support that has parts of the national infrastructure plan are Hinkley now been given will fix that. It is also true—I know Point C and Wylfa—together they make up about a Colin and Wendy Parry agree with this—that the funding quarter of it. They are both vital to our country and must be put on a sustainable basis, as the centre needs our economy. Both are currently under EU state aid to do more projects over time with the Home Office and investigation, which is holding up the projects. I have the Foreign Office and all that goes with that. heard Ministers saying that they are confident that they will have that agreed, and I very much hope that is the Guy Opperman: I totally endorse what my hon. Friend case, because it would be a great paradox if those said. Does he also welcome the use of the LIBOR funds low-carbon projects, which are essential to our energy to support the scouts, girl guides and emergency services, security and to our decarbonisation efforts, are held up and the waiving of the VAT for air ambulances, which is within the EU at the same time as our EU partners are much welcomed after a long campaign in this House? building unabated coal power stations at scale in countries such as Holland, Germany and Belgium. David Mowat: I support that, and I just reiterate the I want to move on now to tax avoidance and tax words the Chancellor used: those who have the worst evasion. The Red Book shows incremental revenue of values in our society are being used to fund those who £2 billion over the next two years from the anti-abuse have the best values in our society. That just about sums legislation that we introduced. I very much welcome the it up. Chancellor reducing the level of corporate avoidance of stamp duty from £2 million to £500,000. The closure of Jim Shannon (Strangford) (DUP) rose— that tax loophole has brought in hundreds of millions of pounds. It is an example, as I said at the start of my David Mowat: I have given way twice already, so I am remarks, of why income equality is so much better now sorry but I am not going to do so now. than it was under the previous Government. I wish to say a little about the carbon price floor, I also welcome the upfront taxation of tax schemes, because I was delighted that the Chancellor has acted which means that if people get involved in controversial on it. The action makes no difference to our commitments schemes, they will not be saving tax and cash flow as on the overall carbon reduction profile that this country they wait to go to tribunal. Her Majesty’s Revenue and has made, but it makes a great difference to the potential Customs is also able to act more quickly than it has carbon leakage we are facing in our great energy-intensive hitherto been able to do. industries, particularly in the north-west and north-east. There were four tests today, and the Chancellor has Some 900,000 people work in energy-intensive industries passed them and any reasonable expectation of this in our country, and I sometimes think they are forgotten Budget. I am happy to support it. in our dialogue about energy prices. It is worth understanding that what the Chancellor has done is remove the straitjacket on costs, which would have put a 3.51 pm great deal of those jobs at risk. For example, we have already lost primary aluminium smelting in this country—it Meg Hillier (Hackney South and Shoreditch) (Lab/ has moved out of the UK—and we are losing marginal Co-op): The Budget mentioned two of the biggest chemicals capacity from this country. I am surprised issues in my constituency, which are housing and child that a number of Opposition Members are not more care. However, the Help to Buy provisions solve the exercised about this issue in general, given that they problems for only some people, but not for those who represent parts of the north-east, where there is heavy rent. That is a real issue in my constituency, and I will chemical manufacturing, and there are a lot of energy- touch on it in a minute. intensive industries and a lot of jobs, because On child care, another initiative has been announced, we cannot rebalance our economy back towards but the practicalities of it have not been addressed. We manufacturing if we have differentially high energy still have a Government who are looking to threaten the prices in this country. We just will not be able to do quality of child care, which, for parents in my constituency, that—it will not happen. is a real concern. 833 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 834 Situation Situation One of the key things that is missing from the Budget New home starts in the UK have gone down by 10% statement today is a Treasury commitment to freeing up from February 2013 to just under 9,500, according to public land for housing. Under Treasury rules, public figures from the National House Building Council. land needs to be sold at the highest price. Years ago, Completed homes were just over 8,000, so we are a long when I was a councillor in Upper Holloway in Islington, way short of the target for the new homes that need to I had to fight over the then Royal Northern hospital site be built, and certainly for those that are genuinely to ensure that it was sold to improve housing in the affordable. I commend to the House the Co-Operative area. Most of the housing there ended up being privately Housing Tenure Bill introduced by my hon. Friend the owned because of that very Treasury rule. Some 20 years Member for Stalybridge and Hyde (Jonathan Reynolds). later, we still have that same rule. It is a great shame that the Chancellor did not take the The Budget provided a great opportunity for the opportunity to look at co-operative solutions that enable Chancellor to allow land to be sold at slightly lower people to be much more in control of their own destiny. than market rates so that more affordable homes could I mentioned at the outset that child care is a huge be built, thus improving public health and the general issue in my constituency. I represent a very young and economic well-being of people in my constituency. borough, and parents want quality. It is a great shame The St Leonard’s hospital site in my constituency is a that the Government took a “pile them high, teach worry as it is now owned by NHS Property Services and them cheap” approach, although that was eventually will have to be sold—if it is sold—for the highest rate. dropped after their surprise at the backlash from parents. Support for affordable housing in areas such as mine The tax break is welcome for those it helps, but there is is very important. There are now more private renters confusion about how it will work. It is really important than home owners. However, both private renting and in child-care policy that these things are simple, clear ownership are out of the reach of people who live in and do not change too often, as that makes it confusing social housing, and the waiting list for social housing is for parents to navigate their way through. immense. This Government treat the country as two halves. Sarah Newton (Truro and Falmouth) (Con): Child Over the past six months, a home owner in Hackney care is really important to enable women to participate will have seen property prices increase by 3.58%. Someone fully in the work force. Will the hon. Lady join me in could earn £15,060 in six months on an average property. celebrating the fact that the figures show record numbers The average price of a property in Hackney is now more of women in employment and setting up businesses? than half a million pounds—£554,306. A flat would Does it not sadden her that today the Leader of the cost £347,000. Someone owning a property could earn Opposition denigrated the achievements of women by £45,000 in a year—nearly double the national average attacking Conservative women, calling us “girls”. How wage. It is fine for those people who own properties, but would she like it if he called her a girl? for those who do not, ownership is a long-distant dream. Let me quote from a letter from my constituent, Meg Hillier: I do not need to be told by the hon. Lady Tommy. He said: about the leader of my party. He is an enormous champion of women. There are a lot of women, as we “I have been looking to purchase my first home. I am 35, and in full time work since I left university in 2001. I have worked hard can see, in the shadow Cabinet and in his ministerial my whole life but I still require assistance from my parents to team. I do not doubt his commitment to women who purchase my first home.” work, and to women who do not work, in this country. In some ways, Tommy is one of the lucky ones. Although The record of the Labour Government stands for itself. he has not found a home, he has parents who may be On the issue of women’s employment, many women able to provide him with some help. Many of my in work are in part-time jobs or on zero-hours contracts. constituents are not in that situation. The women I meet from day to day in my constituency are often keen to work more hours, but they cannot find Tim Loughton (East Worthing and Shoreham) (Con): them. Child care is often part of the problem. The The hon. Lady is making some good points about the figures from the Family and Childcare Trust show that shortage of affordable housing. Does she support an the average cost of a nursery place for a child under two increase in the threshold of £4,250 for the rent a room is £5.60 an hour in London. That is 28% more than the scheme, in which landlords can rent out a room or floor national average. The cost of child care in London is a of their house tax-free, which has not changed for many big concern, especially as my constituents increasingly years, and does not reflect current rental values? I do live in expensive private rented accommodation, which not see such a measure in the Budget, but would she squeezes their budget. The cost of living is a big issue. support an increase? In London, the average cost of a childminder looking after children under two is £5.46 an hour, but in Hackney, Meg Hillier: I completely support that. Only last it is much more, ranging from £6.50 an hour to £10 or night, I was talking to tenants in Haggerston about rent even more. The supply and cost of child care are a real a room and the ability to take in a lodger. They worried challenge. Providing support for the cost is one thing, about getting into tax and so on, and they were worried but it does not deal with the question of supply.Cross-party about the threshold. That is exactly the concern. In my work needs to be done on the issue. My party supports constituency, someone could legitimately rent out a the right initiatives on child care, because we support room in their home for £200 or even £250 a week, so women who want to work and have their children they would quickly reach the threshold. That is a real looked after properly, but we need to make sure that issue: it is one small way in which we could help some there are policies that we can support in the first place. people to find a home, but it does not solve the major Sadly, although there is much noise and talk about this, problem. there has not been action at the right level. 835 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 836 Situation Situation [Meg Hillier] Finally, I am delighted that my constituents of Caribbean origin will now see a fairer deal on air passenger duty. It I have mentioned my view that the Government treat is about time that the people who broke their backs for this country as two halves: the very wealthy, and then Britain when they arrived in the ’50s and ’60s got a fair there are my constituents, who work on zero-hours deal. It is an injustice that has now been righted. I also contracts, are in part-time jobs, and are on the minimum welcome the bingo tax changes. I support my local wage, which has risen, but it is still tough to live in Mecca bingo hall, where I have called out the numbers, London on £6.50 an hour. A man came to see me. He to my embarrassment and that of regular bingo-goers. was a kitchen porter and, although he was out of work, It really is an important provision for many people, so it he was seeking a job. The distances he was being asked is good that that wrong has now been righted. to travel to work, plus the extra hours of travel, meant that child care and travel costs made those jobs 4.2 pm uneconomical, even though he was living in social housing. Andrea Leadsom (South Northamptonshire) (Con): Those are real concerns for London, and we need to This Budget has been billed as a resilient Budget for a look at London weighting on some of the issues. resilient economy. I say that it is a robustly, and indeed The increase in VAT has had a regressive impact on resolutely, resilient Budget for a really strong future my poorer constituents. I was surprised to hear the hon. economy. I completely agree with my hon. Friend the Member for Redcar (Ian Swales) defend the increase. I Member for Warrington South (David Mowat) that it thought that as a Liberal Democrat he would not passes all the tests of looking to the long term, rather defend such a regressive measure. than at short-term give-aways, which is so important in For those people not in work, there is the whammy of any Budget. the bedroom tax. Last night I met tenants in Haggerston The first thing I would like to say is a huge thank you who are very concerned about it. Those who are hit are to the Chancellor on behalf of Northamptonshire for having to pay £767 a year if they have one so-called the contribution to a pothole fund, which spare bedroom, or £1,370 a year if they have two. Many Northamptonshire will be universally delighted about— of them will not leave their homes of many years, as one [Interruption.] woman told me only last week. They will find the money somewhere or get into debt. The Government Andrew Selous (South West Bedfordshire) (Con): It is are contributing to indebtedness for people who do not not just for you. have places to move to, even if they wanted to, and they Andrea Leadsom: That is a great shame. The Chancellor do not have the money out of their benefits. The women mentioned my hon. Friend the Member for Northampton I spoke with said, “I am temporarily not working. I North (Michael Ellis), so I was rather hoping that we want to work again, but I’m not going to leave my would get to keep it all, but perhaps not. home, where I have lived for 32 years.” She was adamant I would like to mention the efforts that the Chancellor about that and will go to great lengths, possibly getting has made for business, which is the source of our into debt, to avoid moving. country’s long-term recovery. Doubling the annual Another opportunity has been missed. The housing investment allowance to £500,000 per annum is superb benefit disregard in tax credit will be abolished when for businesses and will allow manufacturing companies universal credit comes into place, which means that in my constituency, for example in motorsport valley—the 100,000 people will see their child care support drop area around Silverstone—to invest in plant and equipment. from 96% to 70% of costs. As my right hon. Friend the Doubling the UK’s direct export lending programme Leader of the Opposition said from the Front Bench, will enable us to create the export-led recovery for the this Government give with one hand and take with the long term that we so much want to see. Capping the other. That will have a particular impact in my constituency carbon price support rate will save costs for manufacturers because of the high private rents. in the medium and long term. That is great news for the There are some things in the Budget that I welcome, east midlands, the west midland, the north of England such as the export loan changes, which will help many and the entire UK. I hope that Opposition Members of the businesses in my constituency, particularly in will be honest enough to welcome those measures. Shoreditch. However, there was no move to make banks I commend the Chancellor on his work for savers and more locally accountable, as my hon. Friend the Member pensioners, which is truly groundbreaking. I also want for Wrexham (Ian Lucas) highlighted. Although more to pay tribute to Dr Ros Altmann, who has long data are now published on where banks lend, there campaigned for changes to annuity rates. She has been could have been an opportunity for the Chancellor to pointing out the weakness in the annuity construction look at a US-style community reinvestment Act. I hope of pensions for many years. I understand that she was in that the Government will still consider that. fact an adviser to Opposition Members when they were The tax avoidance measures, following up on the in government. She has been trying to persuade work of the Public Accounts Committee, are also very Governments of all colours to lift the unfair obligation welcome. I hope that they will do something to stop big to buy an annuity on reaching retirement age. I am companies trying to dodge their bill to the British delighted about the news, which will really change the taxpayer. The stamp duty increase for companies purchasing fate of future pensioners. properties worth over £500,000 might do something to The annual ISA cap has been lifted to £15,000, but stop overseas purchasers. The changes for air ambulance much more important is the allowing of investors to services will be of great benefit not only to my choose whether they want to invest in cash or stocks to constituents—the Royal London hospital is just on the meet their savings needs. These things are incredibly edge of my constituency—but to many people up and important. When it was introduced, quantitative easing down the country. was essential to try to prevent further harm to our 837 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 838 Situation Situation economy. However, there can be no doubt that the retention strategies, which they have not had to do for historically low interest rates that have resulted from the years. Such a change would significantly improve the QE programme have very badly harmed savers and fate of small and medium-sized enterprises, which pensioners—those on fixed incomes. The structural change desperately need to be able to access new sources of that the Chancellor has made is really important and financing. It would also mean that the Bank of England will be welcomed not just in my constituency but across could easily step in to move accounts from a failed bank the UK. to a survivor bank, thereby ensuring that the awful I have paid tribute to Dr Ros Altmann, who I feel situation of people queuing down the street to take sure is a woman of absolutely high enough calibre to be their money out, as happened with Northern Rock, considered for the next post available on the Monetary would never happen again. Policy Committee, the Financial Conduct Authority or In summary, this is a resolutely resilient Budget which the Financial Policy Committee. I defy any Member to I believe contains some seriously game-changing proposals disabuse me of that notion. I also welcome the appointment, that will have a significantly positive impact on the announced yesterday, of Dr Shafik to the Monetary future of our economy for many years to come. Policy Committee. Diana Johnson: On merit. 4.9 pm Andrea Leadsom: Absolutely on merit, as is the case Mr Russell Brown (Dumfries and Galloway) (Lab): It for all high-calibre women. The Governor of the Bank is a pleasure to follow the hon. Member for South of England is showing real foresight in recognising that Northamptonshire (Andrea Leadsom). She concentrated he needs committees of a diverse range of talents—not on banking, but my contribution will be somewhat just the white middle-class theoretical economists whom more mundane, because I regret to say that far too he has tended to inherit from the previous Governor. many of my constituents have probably never even seen The appointment is incredibly important. Dr Shafik the inside of a bank, let alone know about the workings will be leading the Bank’s review of its market intelligence of a bank. following the fixing of foreign exchange rates. The We again heard today about a drop in unemployment Treasury Committee will follow that with great interest. figures. That really has to be welcomed, but I remind Sadly, there may be many more fines as a result of the the House, as I have done over a period of time, that appalling behaviour that we continue to see among the some parts of the country are not seeing the recovery banks. Those fines will be put to good use. that others are experiencing. I listened intently to the I want to use the last few moments of my contribution Chancellor’s fantasy figures and tried to picture in my to talk about a real game-changer for the banks. I mind his portrayal of this rapidly improving economic commend to all Members something in page 84 of the situation across the country. I tried desperately to engage Red Book. It is perhaps the most ground-breaking, with that, and probably to be as imaginative as the profound proposal of the Government’s in this Budget: Chancellor himself in entering his world, but I can tell “The government has today announced that it will switch on him that far too many individuals and their families, the Market Investigation Reference powers of the Payment Systems many of them hard-working indeed, have simply not Regulator a year ahead of schedule.” been given a chance to enter that imaginary world. That means that there will be a regulator of payment There can be no doubt—I would be the first to admit systems. Until now, there has been a small group of it—that thankfully, after some three years, there is a powerful banks that are, yes, too big to fail, as we have return to growth. However, the Chancellor needs to discovered only recently to our enormous cost. They recognise that in my local authority area an increasing have also been determined to put up barriers to number of people are claiming jobseeker’s allowance. prevent the entry of second-tier, smaller banks and shut This month, yet again, we saw a further rise in out new competitors. A regulator of payment systems unemployment on the back of last month’s rise. The will surely reduce those barriers and enable the new figure now stands at 2,740—an increase of a further banking competition that Members across the House 0.1%. In May 2010, 75 young people were claiming want. jobseeker’s allowance for more than 12 months; that Specifically, the really important measure in the Budget figure has almost doubled to 145. In February, youth is the requirement on the payments regulator to review unemployment rose to 740—an increase of 0.3% on the the effectiveness of the current account switching service previous of month to 6.7%, which is 1% above the and look at instant account portability before the next Scottish average and 1.5% above the UK average. In Budget. If someone wants to switch bank account now, May 2010, the number of adults claiming jobseeker’s they have to move their account number, cheque book, allowance for more than 12 months stood at 460; last bank cards and so on. People get to keep their mobile month, the figure rose to over 800. phone numbers when changing mobile phone provider; That is a tragedy for each and every one of those it would be so much easier for people if they got to keep people. If they took time today to listen to the Budget their bank account numbers when switching bank accounts. statement, it will only have confirmed what they have It would also be so much easier for new challenger probably suspected for a very long time—that the banks to persuade us to switch—“Just give us a try. If Chancellor has lost touch with those at the bottom end you don’t like us, you can go back to your old bank and does not understand the battle and the sheer struggle tomorrow.” that still goes on for many people right across the People could literally switch bank once a week or country. fortnight. That would significantly encourage new competition, but most importantly it would persuade Geraint Davies (Swansea West) (Lab/Co-op): My hon. the big banks that they needed to enter into customer Friend might be interested to know that in Swansea, 839 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 840 Situation Situation [Geraint Davies] I am critical of the youth unemployment levels in my local authority area, and with some justification, but I 65% of people on JSA have been sanctioned. These are welcome today’s announcement on apprenticeships, people on less than £72 a week. It is not that the providing that genuine opportunities will be there for Chancellor has lost touch with them; he is crushing young people. I came across a young woman on a them under his boot. Government employment scheme working 32 hours in a retail business. When the scheme ended, the company Mr Brown: My hon. Friend is right. If I have time, I said that she could remain with them, but that did not want to mention an experience I had with a young mean 32 hours’ work, but eight hours spread over a couple who came to my surgery last Friday. Saturday and Sunday. She is now out looking for a Earlier today, I met a representative of the Prison second job, and—who can tell?—perhaps a third job. It Officers Association from my area who was down in is a throwback to where we were in the early and London taking part in a rally that had been timed to mid-’90s. coincide with the Chancellor’s Budget speech. He explained I welcome the decision not to increase fuel duty, but to me that morale in the prison service is at an all-time as I have said on many occasions in the House, under low because of increases in serious violent attacks on the previous Government we saw nine years and 11 potential prison staff, a five-year pay freeze and continuing demand increases that were either suspended or not introduced for front-line staffing cuts, and an increase in pension at all. contributions that is driving down the take-home pay of The decision on the personal tax allowance will be hard-working public servants. I suspect that it is not a welcome, but—here I disagree with my hon. Friend the job that many of us would relish doing. That driving Member for Glasgow South (Mr Harris)—many people down of take-home pay is coupled with working in an are not even in the tax bracket, so they will see no environment that is physical and, all too often, dangerous. benefit from the increase from £10,000 to £10,500. These public servants are now being asked to work up to the age of 68. It is little wonder that they are angry and have taken to the streets today. 4.19 pm The Resolution Foundation’s report “Low Pay Britain Charlie Elphicke (Dover) (Con): It is a pleasure to 2013” shows that 4.8 million workers—20% of all follow the hon. Member for Dumfries and Galloway employees—earn below the living wage, which is a (Mr Brown). I want to start by welcoming the Budget massive leap from the 3.4 million in 2009 at the height and reflecting on the legacy the Chancellor inherited of the recession. The growth of poverty has an uneven before bringing us to where we are today. Let us not impact on particular sections of the population, and forget that we had a deficit of £156 billion a year, which the tragedy is that young workers have been hit particularly has now gone down by a third to £109 billion a year. hard: one in three 16 to 30-year-olds—2.4 million—are There was a structural deficit from 2002 onwards, and on low pay and low skilled. These young people deserve throughout the Labour years there was a total failure to better than this. Decent adults they are and will be, but regulate the banks and our banking system, which left it they need greater chances in life. Living standards are massively exposed, and unemployment rocketed. down for far too many people, and as colleagues have The Chancellor had the most difficult inheritance in said, that has been compounded by the 24 tax rises, this country’s history in many ways. He has turned households £1,600 a year worse off, and a reduction in things around these past four years so that this country tax credits. is now on the path to recovery. The economy is growing, On the positive side, I applaud the decision to reduce jobs are up and the future looks promising for Britain. bingo duty to 10%. I am sure that the industry will be In the past, the roof was not fixed while the sun was very much relieved at that. Like hon. Members on both shining, but while it has been raining we have been sides of the House, I have visited my local bingo club, furiously fixing the roof and doing so with some success. but there were fewer customers than I had ever seen Areas such as my constituency of Dover and Deal do before. The simple reason behind that is that people’s not have enormous amounts of money and there is a lot incomes have reduced so significantly that they simply of deprivation. The rise in the personal allowance to do not have the wherewithal to spend time at the bingo £10,500—it was £6,475 when I was elected—will make a hall in the way that they did for many years. real difference to those constituents of mine who are I also applaud the steps being taken to support not well paid. It will make an enormous difference for pensioners through the relief measures in respect of people without a lot of money. savings, but again I have to say that many pensioners The freeze in fuel duty will make a massive difference have no savings at all, and struggle to get by from week for the many people in my constituency who have to to week or month to month. These may be pensioner travel by car. It is now 20p lower than it would have couples where one of them has been a carer for a son, been under the previous Government’s plans. A freeze daughter or elderly parent. They have struggled to get in council tax year after year makes a massive difference through their working life and they are now struggling to my constituents, after it had doubled in previous in their old age. times. Moreover, given that unemployment in Dover I suspect that many energy intensive industries will be and Deal rose by 50% in the previous Parliament, it delighted to hear of the extension of the existing makes a massive difference to my constituents that it compensation scheme. I have one in my constituency has fallen by 20% in the past year alone: more jobs, that has been pursuing me for answers to various questions more money, more aspiration and more success. Aspiration that it had. Perhaps now that the Budget is over, I will matters, too: the number or apprenticeships has risen be able to get those answers without any pre-Budget from 440 when I was elected to 880 today, so there are leak. more chances for our young people. 841 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 842 Situation Situation Not everyone in my constituency is extremely badly Box today with a plan and a positive case, but all he did off; there are areas where people have more money and was rage against iniquities largely created by his party in are trying to find somewhere to save it in order to get a past times or during the previous Parliament. return. I greatly welcome the fact that we are incentivising ISA saving with a £15,000 limit. It is really important Mark Garnier (Wyre Forest) (Con): My hon. Friend that we encourage a savings culture in this country. Let’s will also have noticed that the Leader of the Opposition face it: it was destroyed by the pensions tax and everything referred to nothing having been done to reform the that followed in previous times. We have to rebuild that banks. He seems to have been asleep for the past four savings culture, the idea of a rainy day fund and the years, during which banking reform and financial services ability of our constituents to take more responsibility. legislation has gone through and a huge amount has What this Government have done is not just about been done to reform the banks. Does my hon. Friend practical help in terms of more jobs, more money, more think that the Leader of the Opposition has been asleep prosperity and fewer taxes. In my constituency they or has just ignored what has happened? have made a much bigger difference in terms of infrastructure and investment. When I was elected, the Charlie Elphicke: My hon. Friend asks a very important port of Dover was about to be sold off, having been question about what the Leader of the Opposition has stuffed in a car boot sale by the previous Prime Minister been doing for the past four years. He has certainly not in a desperate bid to raise some cash. It was going to be been preparing a high-quality response to this Budget, sold off to the French or whoever—we did not know that is for sure. who. Our hospital had been decimated over the past Even though the Leader of the Opposition wants to decade and was not fit for purpose. A new hospital was say, “Situation excellent; I am advancing”, not only is needed and had been talked about for years. There were there a complete hole or collapse in the centre of the stalled construction sites all over Dover and Deal. I ran Labour party, with the Opposition having no long-term a campaign against “coming soon” signs, because they economic plans, but on its left flank, which is in retreat, had said “coming soon” for so long—for the past Labour Members are talking about the cost of living. decade—that one of them had rotted away and had to What will they say if wages rise above inflation in a few be replaced. months’ time? It little behoves them to talk in that way, Fast-forward to 2014 and the port has been saved: we because people will start to see through everything they are now talking about a community-led port that can say. They are now saying that long-term unemployment get the investment that the port of Dover has needed for is terribly high and all that sort of thing. However, when so many years. A new hospital is being built, which will they talked about high unemployment, it started falling, make a practical difference to people in their daily lives and when they then talked about the lack of full-time and will open its doors next year. More jobs have made jobs, people started getting such jobs. The risk is that an enormous difference to people. A compulsory purchase the number of long-term unemployed will start to fall order has been served on Burlington house, which scars in a few months’ time, and they will have to look for the seafront of Dover. That is making a difference and another selective statistic to cite. Such talk will not do giving people more confidence and hope and a greater them any good, because people will see through it. sense of belief in the town’s future. A fast train now It is therefore time for the Labour party to think rolls up at Deal—which was previously considered a more carefully and more long-term about what it can village—and shortly will do so all day long. That kind offer this country, because right now it can offer very of infrastructure makes a massive difference to people’s little indeed. This Government can and rightly do now prosperity, success and aspiration. say that we cannot give back the keys to the people who Whereas in previous times the regional South East crashed the car, particularly when they are still drunk, England Development Agency spent £20 million building still will not listen and still have not learned anything, a business park near Deal without anything on it—there but will carry on and do it all again. were not even any buildings—now the coastal communities fund and the Homes and Communities Agency are 4.27 pm supporting the Hadlow college project at the former pit Luciana Berger (Liverpool, Wavertree) (Lab/Co-op): site of Betteshanger, which promises to create 1,000 new For one hour, I listened very closely to the Chancellor jobs. That sort of practical help on the ground, which of the Exchequer—during the past few hours, I have goes beyond high-level policy discussions, makes such a had a chance to look through the Red Book to check very big difference to people in their daily lives. that I did not miss anything—and I desperately waited That is why I regret hearing the Leader of the for any acknowledgment that millions of people up and Opposition’s speech. He reminded me of Marshal Foch down our country are really struggling to get by. saying, “My centre is collapsing, my left is in retreat and my right has gone altogether”—because all the Blairites Despite the Chancellor not wanting to hear it and have been chased away, sacked and discredited or have Government Members laughing at my right hon. Friend resigned. The Labour party’s lurch to the left has done the Leader of the Opposition when he suggested it, it no good whatever. In its centre, Labour Members there is a cost of living crisis. We know that working have no economic policy, except for more spending, people are £1,600 a year worse off under this Government. more welfare, more debt and more taxes. Those discredited Real average earnings are more than £1,600 a year lower policies of the past will not take this country forward. today than in May 2010. Prices are going up faster than To try by sleight of hand to say that they will have a wages, and the OBR has confirmed that people will be current surplus—thinking that people will not notice a worse off in 2015 than they were in 2010. 25 billion quid bit of wriggle room and that he will get Not a week goes by when, at my surgery or on the away with it—is not the right way to do it. The Leader doorstep, I do not meet a constituent who is really of the Opposition should have come to the Dispatch finding it tough. As my hon. Friends have said, such 843 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 844 Situation Situation [Luciana Berger] who will have taken £15 billion out of support for children by the next election. Parents need support with constituents have to make very real choices about having child care now. a hot bath or putting food on the table, with mums having to decide whether to go without food in order to Ian Swales: Will the hon. Lady give way? feed their kids. A constituent at my surgery last week said that he was reduced to brushing his teeth with salt Luciana Berger: I will. water and growing a beard because he could not afford Mr David Lammy (Tottenham) (Lab): That is generous. toothpaste or razors; not very long ago, he did not have such challenges. Every week, numerous constituents Ian Swales: I am listening carefully to what the hon. come to my surgery because they cannot pay utility Lady is saying about child care. I wonder whether she is bills and have no answers for the people who come going to mention the 85% of child care costs that will be knocking on their door, which is the reality for too paid for people who are on universal credit. many people. Luciana Berger: Oh, goodness! As my right hon. My local food bank will be celebrating—if we can Friend the Member for Tottenham (Mr Lammy) said, I call it a celebration, which it is not—its third year in a was very generous in giving way. I come back to the few weeks’ time. The number of people in my constituency point that one in three councils do not have enough who have to access emergency food aid has gone up places to deliver the Government’s promised child care from 2,126 in 2011 to 8,600 in this financial year, and for disadvantaged two-year-olds. Today’s announcement that is not even the final figure. Nationally, more than will not come into effect until next year. I reiterate that 500,000 people are having to access emergency food aid, parents need help now, because child care costs are and that is a very conservative estimate. putting parents off going back into work. I am very I raised that point at Prime Minister’s questions the disappointed as a result of what we did not hear from other week after I visited Ilkeston. I raised the case of a the Chancellor today. young person I met who was called Billy. Billy had been I listened closely to the Chancellor’s announcements in employment since he left school, but was made on energy bills, but the best deal in a broken market is redundant at the age of 23. He was making 70 job not a good deal. Energy bills have gone up by about applications a month on average and could not feed £300 since 2010. As I said before, my constituents are himself. I learned the term “skipping”, which I had not facing the choice between heating their homes and heard before, and raised it at PMQs. Skipping is when eating. The Liverpool Echo, my local newspaper, carried people wait for supermarkets to throw food out at the out a special investigation last week that highlighted the end of the day in order to feed themselves, because they experience of Merseyside pensioners, who are being cannot afford to buy food. People wait to forage in the plunged into fuel poverty by rocketing energy bills. bins of Iceland to feed themselves and their families. Under the Government’s new definition of fuel poverty, The fact that people cannot afford to feed themselves in my constituency is among the top three in the country the seventh richest nation in the world is a national for that challenge. Where was the help for those people disgrace. I am ashamed that we have a Government with their energy bills in the Chancellor’s Budget? There who will not acknowledge the impact of their policies, was none. such as people having to turn to food banks. We need proper reform of the energy market. We need to freeze bills so that we can do what needs to be It is not just families and pensioners on low incomes done to ensure that we know the cost of the energy that who are being affected. I held a “what women want” is generated by the six companies that generate 70% of session the other week to celebrate international women’s the energy in the UK. At the moment, we have no idea day. I had a discussion with mums from all different of the true cost of that energy. We need to create a backgrounds at one of my local children’s centres. One transparent pool, so that we are all fully aware of what of them told me that although both her and her husband the companies are generating and the cost of that have what she described as good jobs—management energy. We also need a regulator with teeth, which we jobs—they can no longer afford a holiday. Every month, do not have at the moment. There needs to be a means they struggle to make ends meet. That experience was by which people can properly compare and contrast repeated by many people during the discussion. Where prices, as they can for mobile phone bills. That is not is the help for the millions of people on middle and possible at the moment because we do not have single lower incomes who are not feeling any recovery at all? standing charges and unit prices that can be compared. Those people are angry that the Government have given Again, there was nothing from the Chancellor to help a £3 billion tax cut to people earning more than £150,000, not only households and individuals but businesses that while they and everyone else are worse off. are struggling to pay their energy bills. In the same discussion with women, another concern On the day of the Budget, we have also heard the that was raised was the cost of child care. I echo the unemployment figures. The hon. Member for Dover concerns raised by my hon. Friend the Member for (Charlie Elphicke) just talked about the statistics, but Hackney South and Shoreditch (Meg Hillier). Many of when we talk about long-term youth unemployment, the women said that the cost of child care was making we are talking about young people in my constituency the move into work impossible. The Chancellor’s who do not have employment, which will have long-term announcement today does nothing for parents who are effects—[Interruption.] The hon. Gentleman gesticulates suffering eye-watering increases in the cost of nursery that the number has come down. In my constituency, places, which has gone up by 30% since 2010. That is the number of long-term unemployed young people—those compounded by the fact that there are 35,000 fewer who have been out of work for more than a year—has child care places. That is unsurprising from a Government gone up by more than 60% since 2010. That is a waste of 845 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 846 Situation Situation the talent of our young people and has long-term Office for Budget Responsibility predicts that it will implications not only for them but for the wider economy. have been reduced by half by later this year. Of course, The young people who are not employed at the moment that in itself will not deliver sustainable economic growth, bring a cost to our economy of £3.2 billion over their so we need to examine the data that are available lifetime. In my constituency, 835 young people are out beneath the deficit reduction figures. of work, and I wanted more from the Chancellor to The growth that we are experiencing is quite remarkable, address that situation properly. We know that the current and, again, it undermines the arguments that Opposition schemes are not working, and that less than 20% of Members have made in recent years, and particularly young people locally are getting into work. We need to today. The UK is now the fastest growing major economy do everything we can. in the world, and the fastest growing of the OECD nations. Even more than that, all sectors of the economy Charlie Elphicke: Will the hon. Lady give way? grew last year. We have to go back to 2007 to find the last time that happened, which demonstrates the balance Luciana Berger: I will not, because I have less than a of the economic recovery we are experiencing, be it in minute left. services, construction or manufacturing. Those are Labour’s policy is to provide a jobs guarantee by important sectors that demonstrate how growth in the repeating the bankers’ bonus tax. I listened to the economy is serving all parts and sectors of the UK, Chancellor to hear whether he might do that, but there including those who are employed and those who seek was nothing on that front, even though Barclays alone employment. We are all sharing in the success. has increased bankers’ bonuses by 10% to more than All those who spoke from the Opposition Benches £2.5 billion. Would not some of that money be well mentioned inequality and tried to highlight the differences invested in the young people of our country, to ensure between those who have and those who have not. However, that they are in work and have a chance throughout they missed a really important line from data provided their lifetime? We need to get the long-term unemployed, by the OBR and the Office for National Statistics, including the young long-term unemployed, off benefits which is that we now have the least inequality in the and back into work. A jobs guarantee through repeating United Kingdom for 28 years. That completely exposes the bankers’ bonus tax would have achieved just that. all the anecdotal and selective evidence that has been My constituents will be dismayed by the Chancellor’s presented. We have the lowest rate of inequality for Budget. I am sad that he could not find it in himself to 28 years, which is something Labour Members should acknowledge the cost of living crisis that millions of be glad about. people are experiencing every day, including in my If we examine the data further, we realise that the constituency. The Government are so out of touch, and unemployment figures presented today were remarkable. today’s Budget has reinforced that. Unemployment stands at 7.2% across the United Kingdom. It is unheard of for the rate of unemployment in Wales 4.37 pm to be lower than the national average. In all my life I cannot remember unemployment in Wales being lower Alun Cairns (Vale of Glamorgan) (Con): I would like than across the rest of the United Kingdom, yet it now to say that it is a pleasure to follow the hon. Member for stands at 6.7%, so the gap between unemployment in Liverpool, Wavertree (Luciana Berger), but I do not Wales—my nation—and the rest of the United Kingdom recognise the biased and party political points that she is not just 0.1% as it was last month. I am absolutely made. Her speech was loaded against the positive news, delighted, and I hope that Labour Members from the which should be welcomed, about measures to help Principality will join me in welcoming that success. It people in her constituency and others who need the demonstrates that growth is serving every nation of the Government’s help and support. I hate to think of the United Kingdom, and every sector in our country. contributions that she and many other Opposition Members If we look at growth figures from the north-west, would have made if we had not been able to look Wales or anywhere over the past two years, we see that forward optimistically to the sustainable growth that all regions and nations of the United Kingdom have the Government have helped craft through their difficult experienced levels of growth. Again, that shows that decisions over recent years. growth is not dependent on the dominance of London As we look optimistically at that growth, it is hard to and the south-east, as was the case during the 13 years believe the predictions that the Opposition have presented of the Labour Government. to us over recent years. We all remember the “too far, too fast” line, and then there was “flatlining”. We then Geraint Davies: As has been said, Wales has the had predictions about a double dip and even a triple highest level of poverty in the UK, with more in-work dip; then they predicted that there would be a million poverty than out-of-work poverty, and it is the most jobs lost. That shows the Opposition’s lack of credibility, affected by the horrendous bedroom tax. The Tories are following their previous prediction about having ended putting the boot into Wales, which is why we will kick boom and bust. They simply have no economic credibility, the hon. Gentleman and the Government out next time. so their criticisms of an important building block in delivering sustainable economic recovery and growth Alun Cairns: I am grateful to the hon. Gentleman for show them for what they really are. making such an important point about poverty in Wales, Of course the growth is welcome, but I am also because it needs to be recognised. However, even in the extremely impressed by the nature of the recovery. darkest, most difficult days, when coal mines and steel Deficit reduction is important in itself—after all, it is plants were being closed and things were extremely the fundamental building block in creating confidence. difficult for those communities, Wales was not the poorest The deficit has already been reduced by a third, and the part of the United Kingdom. After 13 years of Labour 847 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 848 Situation Situation [Alun Cairns] Finally, I just want to say this: “If you’re a pensioner or about to retire, there is significant help; if you’re control, Wales is sadly the poorest part of the United employed, the tax allowance will make a big difference; Kingdom, but it is now experiencing higher and faster if you’re a saver, there is extra support; if you want to growth than most other parts of the UK. That goes to export, there is help available; and if you’re involved in show that the UK Government are playing their full manufacturing, there are significant energy cost reductions.” part in our turning the corner and getting out of the This is a Chancellor who is building sustainable economic cul-de-sac that the Labour party left us in. That was growth as part of our long-term economic plan. what Labour left us. We talk about balance across the economy, but more 4.47 pm needs to be done to strike that balance in every way, and the Budget has taken a significant step in that direction. Diana Johnson (Kingston upon Hull North) (Lab): There has been significant support for manufacturing, Following on from the comments of the hon. Member including a £7 billion package that provides elements for Vale of Glamorgan (Alun Cairns), may I gently for capping the carbon price support scheme. One benefit remind him that we have had three wasted years before of that £7 billion will be the £50,000 cut in energy prices the recovery kicked in? I am sorry if he thinks that is a or costs for a mid-size manufacturing plant. There are partisan or a party political point, but it is factually hundreds of those in Wales, including several in my correct. Thee majority of my constituents in Hull North constituency, and as a result of the Budget they will get are certainly not feeling better off under this recovery, a £50,000 cut in energy costs. and I think the Budget will do very little to make them feel that things are going to get better for them and their Mark Field (Cities of London and Westminster) (Con): families. Does my hon. Friend also recognise today’s important Few people in Hull will be taken in by the Tories initiative in relation to export credit guarantees, which rebranding themselves as the “workers’ party.” Some will encourage particularly small and medium-sized changes, such as the cut to bingo tax, are very welcome enterprises looking to export beyond the shores of the after some of the shambolic proposals we had in previous United Kingdom? That will make a significant difference Budgets, like the caravan tax and the pasty tax in the in the high-resolution manufacturing industry, which is infamous omnishambles Budget. so well catered for in the part of the UK he represents. I listened very carefully to what the Chancellor said about building a resilient economy and delivering security Alun Cairns: I am grateful to my hon. Friend for for people in this country. Hull and the Humber should underlining that point. I was going to come on to it, but be at the forefront of fighting many of the challenges his intervention presents me with an opportunity to facing this country, such as climate change, generating highlight again the balance that the Chancellor is green energy and developing the science of flood prevention. determined to restore to the economy to ensure that I believe we could turn issues that are seen as problems every part of the country and every sector within every and costs into a positive opportunity for growth in the part of the country is playing a part in promoting the economy, but looking at this Budget in relation to Hull economic growth and is sharing in and generating the and the Humber, my constituents will be asking the prosperity. following questions. Does this Budget help the real The other point I wanted to make on energy related wealth creators and invest in the modern public services to the support for the energy-intensive industries. Dow an efficient, growing economy needs? Does it help, for Corning in my constituency exports 90% of its output. example, the part-time women workers I recently met in It is a true success story in the Vale of Glamorgan. The a Tesco in Hull who told me about the problems they high energy prices really did raise some serious questions were having in getting extra hours to make ends meet for the management of the organisation, but this support and pay their bills? will be welcomed far and wide within the group and Hull has the 19th highest unemployment level in the particularly in Barry, where it is the largest employer. country. Will this Budget help the 4,265 people still out We need to acknowledge that as this recovery has of work in Hull North, according to today’s figures? been built, some people have had to pay quite a significant Will it do anything for the long-term young unemployed price, including savers, many of whom are pensioners. in particular? Will it deal with the problem of those not Of course, low interest rates were essential to deliver the in education, employment or training? It will not do any economic growth we all need and on which public of those things. As the TUC said today, this is a services are built. I am particularly pleased that the “short-term Budget…to shrink the state and help the rich.” Chancellor has recognised that it is time for the growth Thanks to the coalition’s confusion over energy policy, to be shared with our savers and pensioners. Today’s we are still awaiting good news from Siemens. If Siemens announcements on encouraging saving, and especially does not come to Hull, the jobs building wind turbines the pensioner bond, is significant. A 2.8% return predicted will in effect be exported out of the UK. Climate for one year and a 4% return for three years is really change deniers in UKIP might welcome that, but it quite important for people who want to be able to plan would be a disaster for the economic regeneration of their future and for those who have done the right thing my city. The Budget also failed to announce rail in that they have worked hard and saved hard. electrification to Hull, but I hope that the Government The changes to the ISA are extremely important and will have some good news for us shortly. very welcome. They will simplify the process, again We heard in the autumn statement that London is to providing certainty and security: if people work hard, get two new tube stations and a garden bridge, and save hard and do the right thing, this Government are there is talk of rebuilding Euston station. However, on their side. some bright civil servant thought it a good idea, when 849 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 850 Situation Situation announcing the electrification of the trans-Pennine route, escaping poverty. FareShare in Hull said this week that to stop in Selby, 20 miles short of the end of the line, demand for its help is up 53%, and the Trussell Trust which is Hull. Yet again, the people of Hull have said, reported a trebling of food bank use in a year. “If the Government aren’t going to help us, we will help ourselves.” A proposal has been put together to bring in The Economic Secretary to the Treasury (Nicky Morgan): private sector money to electrify the line. If the Government Does the hon. Lady accept that with the increase in the put in some £2 million of public money, it will unlock personal allowance announced today, particularly from approximately £96 million of private investment. I hope next April, 3.2 million people will be taken out of they will make that announcement shortly, and certainly income tax completely, 56% of whom will be women? in time for 2017, when Hull will be the city of culture.

Ian Mearns (Gateshead) (Lab): My hon. Friend is Diana Johnson: I do not think the Minister was highlighting a very important point about Government listening to what I said: 5 million workers earn much investment in electrification programmes in the north of less than the personal allowance, so they are not affected England. I recently attended a meeting of the all-party by the increase. The analysis that has been done shows group on rail in the north, and the map of the investment that the better off benefit far more from that increase. It programme we were looking at had a line heading is not a way of targeting the poorest in our society. north-east that said “York”, and then an arrow saying We are seeing the shocking growth of charity “to Scotland”. The north-east of England was not dependency in 21st-century Britain, which, as many mentioned at all. hon. Members have said, is the seventh-richest nation. That is Dickensian in a digital age. It is tragic for the life Diana Johnson: My hon. Friend makes his point very chances of millions of people that after the coalition well. If the Government are serious about rebalancing inherited an economy that had returned to growth in the economy, they need to invest in northern rail. 2010, we have had three years of flatlining. Places such as Hull and the north have suffered the most from, for It is interesting to note that, because of recent events, example, the savage cuts to council funding, despite the the coalition has now realised that flooding is a major coalition Government’s rhetoric about rebalancing the economic problem. Perhaps that had something to do economy. with the fact that the Thames valley was affected and the playing fields of Eton were flooded. I am pleased that the Chancellor announced additional money for Geraint Davies: Does my hon. Friend agree that the flood defence work, but of course that should be seen in raising of the tax allowance, which will cost £1.4 billion the context of the Government’s slashing the flood to begin with and rise to £1.8 billion, compared with the defence budget in previous years. As those in any area bedroom tax, which will save about £500 million, shows that has been flooded know, spending £1 on flood us everything we need to know about the Government’s defences saves £8 in the cost of clearing up after a flood, priorities? They are giving three times as much to people so such investment makes sense. who have got some money, and the very poorest are On flood insurance, I note that the Chancellor is being crushed. extending the Help to Buy scheme. Advertisements encouraging people to buy are plastered everywhere in Diana Johnson: My hon. Friend makes that point places like Kingswood, in Hull North. However, it is a well. There have been 24 tax changes under the Government, shame that other parts of the Government do not seem and average families will be £1,600 worse off at the end to think that houses should be built in areas like Kingswood, of the Parliament. The recovery is too much based on because they will not be able to participate in the flood the south, financial services, private consumer debt and insurance scheme that the Government have negotiated an unsustainable property bubble. More women are with the insurance industry. I should also point out that now in work than ever before but many of them are in the new garden city at Ebbsfleet will be in a flood-risk part-time work, on zero-hour contracts or on short-term area, and the owners of the houses built there will not contracts. get flood insurance under the Government’s scheme. It The poorest people in the most deprived areas have seems that one part of the Government does not know been hit hardest by the coalition Government. We have a what the other part is doing. Small businesses are bedroom tax, but we have no mansion tax. We have guaranteed access to flood insurance under the bank bonuses for some, but we have food banks for Government’s current scheme, but they will be excluded many. The new £1 coin neatly sums up Lib Dem from the new scheme. The Government need to look at involvement in the coalition. It is not the 12 sides that that problem. we need to worry about; it is the two faces. This is On the cost of living crisis, which many people in my another Bullingdon Budget from a coalition of two constituency face, there has been much fanfare about parties representing one privileged class and creating raising the personal allowance, but we know that 5 million two nations. of the poorest workers gain nothing from that increase. Many of those will be women. WE know that the rose— Government wanted to give the 8,000 millionaires their Several hon. Members £40,000 windfall from the cut in the 50p rate of tax, but it is interesting to note who is bearing the brunt of the Madam Deputy Speaker (Mrs Eleanor Laing): Order. coalition’s austerity. The majority of those now falling The enthusiasm for interventions has meant that most into poverty and ending up at food banks are actually in Members have spoken for considerably in excess of the work. That shows that the Government are not making eight minutes allotted. Therefore, I have to reduce the work pay: being in work is no longer a guarantee of time limit to seven minutes. 851 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 852 Situation Situation 4.58 pm particular, it will help women who have had children to get back into work, perhaps working part time. It is James Duddridge (Rochford and Southend East) (Con): crucial that they should be able to do that relatively I will not break with tradition and agree with everything early, to maintain a good employment history. that thehon. Member for Kingston upon Hull North (Diana Johnson) has said, but I wish her well with As a cider drinker and a beer drinker—not at the getting the Siemens plant. I saw some Siemens wind same time—I very much appreciate the Chancellor’s farms onshore in Morocco in the western Sahara recently, 1p cut in duty. It is a small amount, but it is a nod in the and they are very effective. right direction. Based on the average price of a pint in a Reflecting on the hon. Lady’s quip about our coalition pub or a club, it means that for every 200 pints hon. partners, which was somewhat unfair but slightly amusing, Members drink, they will effectively get one free. It is a I noticed that the Chancellor is announcing a competition step in the right direction, and I think a few people in to determine what will be on the tails side of the coin. the House and in our constituencies will have a drink to Heads you win; tails you lose, and I hope that at the say thanks to the Chancellor of the Exchequer tonight. general election, the Opposition will lose. Perhaps it The export package is fantastic. It will help companies would be appropriate to commemorate a failed Labour such as Ipeco, which makes the pilots’ seats for every politician on the coin. single Boeing. Hon. Members will not be surprised to The hon. Lady talked about unemployment. I have hear that it is based in my constituency. The package looked forward, particularly during the past year and a will also help KeyMed, a big medical supplier in Southend half, to receiving the excellent House of Commons that employs more than 600 people. Library brief on unemployment by constituency, which Using the LIBOR fine for charities and good works is is rich in information on what is happening. Time and really nifty, in that it focuses on what we should be again over the past 12 months, the unemployment rate focusing on. Most people will not even know what in my constituency has fallen significantly. LIBOR stands for—why should they?—but when excesses I was pleased to hear that the number of 16 to in the City are identified, they should be punished. It is 24-year-olds who are not in education, employment or great that the LIBOR fine will be paid to charities and training—NEETs—had declined to its lowest level UK-wide to organisations such as the Royal National Lifeboat since 2008. I appreciate, however, that there are unacceptable Institution, which operates on the foreshore in Southend differences across the country and that some constituencies as well as at the end of the longest pleasure pier in the have yet to feel the benefit. I am sure we all hope that it world. The scouting movement will also receive some of will be felt in the near future. The extension of the that money, which is to be welcomed. apprenticeship grant for employers to 2015-16 will certainly The companies around London Southend airport help, not only in places such as Prospects college in my will welcome the Budget, and I look forward to reviewing constituency but in other constituencies where the it with them in the next few weeks when the Secretary of unemployment situation is even more acute. State for Transport comes to launch the new, improved The people of Rochford and Southend East will be terminal. The change to air passenger duty for flights to delighted by this Budget. It will mean more money in the Caribbean has long been called for and an inequity the pockets of hard-working people, homeowners and has now been resolved. Hats off to the Chancellor for motorists. As the Chancellor put it, it is a Budget for the finally sorting that one out. makers, the doers and particularly the savers. I will The Chancellor talked of the city deal, from which focus on the savings element of the Budget later. From Southend has benefited. On savers, it is wonderful that an Essex perspective, people in my constituency will be we are now able to trust people on annuities. The ISA pleased to hear that fuel duty has been frozen once merger is superb as it will allow people to save more and again, providing a saving of 20%, given the rise that to move from equities to cash in later life, not just with would have taken place had it not been blocked. I new ISAs, but with the old ones. I noticed that on the congratulate my hon. Friend the Member for Harlow Treasury website it is referred to as NISA rather than (Robert Halfon) on campaigning for that change, and I ISA. I hope we are not trying to rebrand for the sake of commend the Chancellor for implementing it. it, as natty as NISA sounds. The savings tax for people There was also good news on bingo. We did not get on low incomes, taking them out at £5,000 is excellent. the 15% tax cut that had been requested, but one of Overall, there is something for everyone in this Budget 10%. The good people at the Mecca bingo hall in the and I am sure the good people of Rochford and Southend Victoria ward in Southend might now invite me back. East will be very happy with it. They told me last time that I would not really be welcomed back—[HON.MEMBERS: “Aah!] Yes, I was 5.5 pm somewhat surprised, but they were kind to me and said that they had voted for me. However, they made the Ms Margaret Ritchie (South Down) (SDLP): Following mistake of allowing me to be the bingo caller, and I got convention I shall refer to the hon. Member for Rochford it all wrong. I did not know my fat ladies from my two and Southend East (James Duddridge) and say I agree little ducks, or whatever it is. They told me: “Stick to the with some of what he said, but I disagree with the vast day job. Stick to politics.” I will do that, but I might go proportion of his speech because it deals with the back and play bingo with them to celebrate the tax cut. general principles of the Chancellor’s Budget. Thanks to this Government and to the Chancellor’s From the Chancellor’s speech one would think that resilience, we will be able to keep interest rates low. This everything was rosy with the economy, but that is not is critical; not enough has been said about interest rates, the case. Many people, including those in Northern but they form the backdrop to the economy. The income Ireland, are experiencing a very different reality—a tax personal allowance is to be increased again, to reality that the current Government are almost completely £10,500. This will really help working families and, in out of touch with. Families are faced with rising food 853 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 854 Situation Situation bills, sky-rocketing energy costs and stagnant wages. entirely pernicious manner, with little consideration This is pushing more and more people into personal given to need. As always with the Budget, the devil will debt and we could be faced with a personal credit crisis be in the detail, and I will be fully pursuing this in as people over-extend credit cards and use payday loan subsequent weeks. In particular, concerns have been companies to cover rising bills. The Governor of the raised as to exactly what benefits will and will not be Bank of England, Mark Carney, warned just yesterday included in such a cap. I have since been informed that that excessive borrowing was again posing a grave danger benefits such as disability living allowance, carer’s allowance to the economy. and bereavement benefits—the very benefits that affect The employment figures announced today do not tell some of the most vulnerable in our society—will be the full story, with a vast proportion of these new jobs impacted upon. coming from self-employment, temporary positions and Although some elements of the Budget are to be zero-hours contracts. Many of these jobs are unstable welcomed, I have a concern in respect of one sector. and reflect not a true recovery, but a permanent low-wage The tourism sector is absolutely vital for our economy economy. The figures are not geographically consistent. in Northern Ireland. The measure announced in relation According to the Department of Enterprise, Trade and to air passenger duty is extremely limited and will do Investment in Northern Ireland, the local employment nothing to lower the excessive rate of duty on flights rate of 72% is the lowest of any region, and unemployment within the UK and to Europe—such flights form the remains stubbornly high at 7.5%, compared with the vast majority of those to and from Northern Ireland. UK average of 7.2%. We are still faced with the highest rates of APD and This is to say nothing of the tragedy of joblessness VAT on tourism products in the EU. Almost every EU faced by our young people. Youthunemployment stands state has some form of reduction in VAT for the tourism at nearly a million in the UK and more than 20,000 in industry, and just last month I held a debate asking for Northern Ireland. About one in four of our young the Treasury to consider introducing a similar scheme people cannot find a job, which will have a devastating in the UK, which would provide an instant boost for the impact on our economy and on their own lives in the tourism industry and our tourism sector in Northern coming years. Many have emigrated and many more Ireland. It was notable during that debate that MPs face emigration. PricewaterhouseCoopers has said that from across the House supported my proposal, including this will cost the Northern Ireland economy £l billion many of the Chancellor’s own Back Benchers. The lack by 2016. The Chancellor said nothing new today that of movement on either of those issues was a glaring makes me think he grasps the scale of the problem or is omission from today’s Budget. seeking the necessary remedies. We see Ireland as an island tourist market, but businesses in the north face a 20% rate of VAT, whereas the Irish Jim Shannon: The Government have made concessions Government have taken the sensible step of keeping on the transferable tax allowance and on child care their rate at 9% for tourism products. Regrettably, the provision, but they have omitted to make any allowance only border for tourists moving between the south and for single-earner families where one of the parents goes the north is an economic one, brought about by the to work and they forgo a second salary so that they can decisions of the UK Treasury. I ask the Chancellor invest in the life of their children. There is provision for again to take a hard look at a cut in the rate of VAT for those at the higher level of taxation and provision for tourism products, which would become budget-neutral those at the lower level of taxation in respect of child after the first year, according to Professor Blake, who care, but for those in between there is none. Does the used the Treasury’s own economic model. hon. Lady agree that there is a shortfall in the Government’s child care provision for that section of the community? Jim Shannon: Will the hon. Lady give way? Ms Ritchie: I am sorry, but I cannot give way again, Ms Ritchie: Yes, I agree. The Government need to as I am conscious that other Members wish to speak. make provision for that section of the population. We are also seeking clarification on the aggregates With respect to welfare, the supposed recovery is not credit levy scheme. I have had much correspondence a balanced one, as this Government continue to attack with the Chancellor and Treasury Ministers on that the most vulnerable and worst-off while giving handouts issue, and I understand that we may be nearing a to those at the top. This political sleight of hand, positive conclusion with the European Commission. So blaming the poorest in society for the economic woes it would be helpful if we could get clarification on that caused by the banking collapse, which has been repeated issue, and on the whole area of the Barnett consequentials by the Chancellor in Budget after Budget, is deeply for flood defences, because I represent a coastal constituency cynical and should not go unchallenged. The Government’s whose coast has been undermined by the impact of divisive rhetoric and continued draconian approach to climate change. welfare reform is of great concern. The current roll-out of universal credit is unravelling at an alarming rate, yet This was a political Budget from a political Chancellor, we are expected to accept even more of this misery for and it comes at the cost of the real economy. It will give the worst-off in society. We have valid concerns about little comfort to people who will continue to face low these measures in Northern Ireland, yet the British wages and high costs. Government and the Department for Work and Pensions continue to try to force this issue through with threats 5.13 pm and grandstanding. Gordon Birtwistle (Burnley) (LD): I have sat through Today, we hear of further attacks on the most vulnerable, this debate for the past four hours, listening to the with the introduction of a cap on welfare spending. I doom merchants from the Labour party, so I would just have great fears that this proposed cap will be used in an like to advise them of the position in my constituency, 855 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 856 Situation Situation [Gordon Birtwistle] also seen the other side of manufacturing. Only yesterday, I went to see apprentices at Starbucks in the Westfield not what people would class as a high-wage, high-cost shopping centre in White City and they showed me how constituency. In 2010, we had unemployment in excess to make a proper latte with a fancy topping. I met some of 10% and we were in the top 10 of the worst amazing young people. unemployment blackspots in the country. This morning I have also met apprentices at Next—one would not I got the figures for my constituency, and unemployment expect that such industries would have apprentices. The has now dropped to 5% and the town is listed 173rd for young apprentices at Next were absolutely amazing and unemployment. That is a dramatic recovery. a credit to the young people of this country. I did not The increase in personal allowances was the major realise that Next ran such an excellent apprenticeship issue for me in the Budget. It was something that I had scheme, which rivals the one run by Rolls-Royce. Next is campaigned for and that was on the front page of the committed to its young people, and it sees apprentices Liberal Democrat manifesto at the last election— as its assets for the future. It is fantastic to see the [Interruption.] massive rise in apprenticeships. Apprentices are the future—[Interruption.] If the hon. Member for Swansea Jake Berry (Rossendale and Darwen) (Con) rose— West (Geraint Davies) wants to intervene, I am happy to give way. Gordon Birtwistle: I will give way to my hon. Friend and leave out the shouters on the Opposition Benches. Geraint Davies: I am amazed that the hon. Gentleman Jake Berry: Let me touch on the unemployment compares the apprenticeships at Next with those at figures in east Lancashire. Like me, my hon. Friend will Rolls-Royce. What a disgraceful thing to say about one want to congratulate Rossendale and Darwen as well as of our foremost companies. Picking socks is not the Burnley on their reducing figures. Does he not accept, same as fixing engines. though, that the fact that the three-month claimant count in the north-west has gone up shows just how Gordon Birtwistle: If the hon. Gentleman had listened fragile the recovery is and how dangerous it would be to rather than talked to his friends, he would have realised go back to the Opposition party’s policies of more that I was talking about the apprenticeship scheme, and borrowing, more debt and higher unemployment for not the apprentices themselves. Next treats apprentices east Lancashire? properly, and they go through a proper three-year training programme, as do the Rolls-Royce apprentices. It is a Gordon Birtwistle: I thank my hon. Friend for that different industry, but those young people are as keen as remark. When it comes to the north-west, I can only the apprentices at Rolls-Royce to have a proper career— speak about my constituency of Burnley, which is a rather than the career that the Labour party offered prosperous manufacturing town. We have invested heavily them when they were in government—and one of which in manufacturing over the years, and I am pleased to they can be proud. say that we are not one of the problems in the north-west. The hon. Gentleman might not think that is a good I am delighted to hear about the continuation of the idea, and perhaps in his constituency he would like triple lock on pensions, which is great for pensioners. I young people to go on Government training schemes have to declare an interest as I am a pensioner and I that deliver nothing. These schemes are delivered by understand how it all works. I welcome the end to the proper companies for young people. hideous 75p rise that was awarded to pensioners under the previous Government. Simon Danczuk (Rochdale) (Lab): Youth contracts. I am also delighted that we still have the excellent pupil premium, as I have a number of junior schools in Gordon Birtwistle: They are not youth contracts. They my constituency. One school alone receives more than are proper training schemes, and young people are £100,000 a year to help children from really poor absolutely delighted to be on them. I am appalled that backgrounds. the hon. Member for Swansea West should try to decry My main interests are manufacturing and them. It is absolutely disgraceful, and he should withdraw apprenticeships. The Chancellor’s decision two Budgets his comments. ago to introduce capital allowances was something that I had argued for and that he had agreed were a great Damian Collins (Folkestone and Hythe) (Con) rose— idea, but as the scheme had run for two years, I fully expected him to cancel it in this Budget. However, he Gordon Birtwistle: Unfortunately, I cannot give way, did not cancel it; he doubled it to half a million pounds as I have done so twice, and I regret giving way the a year. An Opposition Member said that she could not second time. understand the reason for capital allowances. She asked I welcome the new pension scheme. It is a fantastic what they could do for manufacturing. Obviously, she scheme, but I would like—and this is something a has never been involved in manufacturing, and probably number of my constituents have asked for—an end to has never been in business. She is probably one of the the problems with Equitable Life. It is time that the few Members who do not understand what is going on. Government looked at how we can finally wind up the I also want to comment on the amazing rise in problems with Equitable Life. Many Equitable Life apprenticeships. In my role as apprenticeships ambassador, members are now very elderly, and they would like a I have been able to visit apprentices in different industries conclusion to the problems, which should have been across the country. I have seen apprentices build Typhoon sorted out by the previous Government. I believe that fighter jets at BAE Systems in Preston, missile systems we should step in and sort them out. It is not a lot of in Bolton and Airbus aircraft wings in Chester. I have money, so we should do that. 857 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 858 Situation Situation I welcome the Budget. The Government are working Mr MacNeil: The hon. Lady says that no Members towards delivering a strong economy. They are delivering complained when schools were built in their constituencies, a fairer economy, they are creating jobs for our young but they did. I remember writing long letters about the people, and they are creating security for our industries. private finance initiative and the false comparison with The previous Government had one major success: they the public sector, which was based on a false equation. I managed to reduce manufacturing from 22% to 9% without think they were built expensively under the Labour trying. That was an absolute scandal of their 13 years in Government. I am sorry to have to bring that up after office. Fortunately, we are now bringing manufacturing she was so generous in giving way. back, and we are bringing apprentices back. Manufacturing is climbing again, and it is saving this country from the Yasmin Qureshi: I agree that there were some problems mess it was left in. with PFI. I am not one of those who say that everything was perfect. However, to suggest that spending on our 5.22 pm country’s infrastructure, which created jobs, made people Yasmin Qureshi (Bolton South East) (Lab): There better off and led to between £80 billion and £90 billion was much in the Chancellor’s speech with which I being spent on the national health service, was somehow disagreed, but at least I gave him the courtesy of listening, a waste of money is, I think, a real insult to the people unlike Government Members, who gave no such courtesy of this country. to the Leader of the Opposition. In fact, when my right If my memory serves me correctly, the Opposition at hon. Friend was talking about the crisis of living standards, the time agreed fully with the Government’s spending there was a great deal of laughter among Government analysis. They did not object to any of it and said that Members. The country will have seen exactly what they they would carry on spending at the same rate. Therefore, stand for. to try to suggest that somehow money was spent recklessly The Chancellor began his speech—and Government is absolute rubbish. The myths that Government Members Members have repeated this—with the mantra, “Oh, have been peddling for the past four years should stop. the recession was caused by the Opposition.” Somehow, The Government parties should recognise that they it was financial mismanagement by the Labour Government have been in power for four years and should start that caused the economic crisis. That is not true, because thinking about what they have done. there was a worldwide recession. Perhaps I can help We know that on average families are £1,600 worse Government Members with some facts and figures. off. Energy prices have gone up and up. We have said When Labour came to power in 1997, the ratio of gross that there should be an energy price freeze until 2017. If domestic product to national debt was about 47%, but the Government really want to help ordinary people, by 2001, after four years of Labour government, that why do they not do that and reform the energy sector? percentage was in the low 30s. [Interruption.] It came The education maintenance allowance, which helped down to 33%, so it was 10% less than it was when the 16 to 18-year-olds from poor families to stay in school, Conservative party was in power. It was not until 2008-09 was abolished, which again hit the poorest in our society that the ratio of GDP to national debt went up. Everybody the hardest. The Chancellor today announced a new knew why it did—there was a global recession. At the garden city, but it has taken him four years. We have end of the day, the Labour party was not in power in the been arguing for four years that more house building USA, Japan, Germany or other countries. To claim that projects are needed. It is great that something is now the financial crisis was somehow caused by the Labour happening, but we have had to wait too long for it. party’s mismanagement is complete and utter nonsense. I would like the Chancellor to have frozen energy bills Government Members should really stop peddling these until 2017, which would have been really helpful. Young myths and lies. people should have been put back to work with a jobs guarantee scheme, which we have said would be funded Damian Collins: The hon. Lady has missed out the by a tax on bankers’ bonuses. Free child care should be fact that the Labour party was running a deficit before extended to 24 hours for three to four-year-olds, and we the recession, when the economy was growing. That is should also cut taxes for 24 million people on lower why we were in the mess we were in. incomes, with a lower 10p starting rate of income tax. That would help a lot of ordinary working people. The Yasmin Qureshi: That is absolutely wrong. A few Government should also cut business rates for small years after we came into office, the amount of the firms so that we can create more jobs. That, too, would receipts coming in was more than the national debt, the help ordinary people and small businesses. GDP net. After the debate I can certainly give the hon. Gentleman the facts and figures from the Institute for Finally, we should consider the issue of equality, pay Fiscal Studies, which show how prudently we looked gaps and wealth distribution. It is said that things are after the economy. Yes, we spent, but guess what? We better now than 28 years ago, but recently there have spent on hospitals and schools. We took millions of been various articles and a lot of discussion about the children out of poverty. We provided working tax credits fact that the pay gap is too large. Even the International for poor families. I do not remember Opposition Members Monetary Fund, hardly a hotbed of communism, has at the time complaining when new schools and hospitals said that countries with a great deal of inequality have were being built or refurbished in their constituencies. I economic as well as social problems as a result. Steps do not remember any Members complaining about should be taken to narrow the gap even more. There that. That was real investment. The suggestion that the should have been real measures to tax the really wealthy previous Labour Government spent money on throwing in our society, especially their homes, so that we can parties or something is ridiculous. It was real investment reduce the gap. in our country’s infrastructure, which created jobs and Even Her Majesty, who is not known for getting made ordinary people’s lives better. involved in the political issues of the day, has expressed 859 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 860 Situation Situation [Yasmin Qureshi] That legacy was created by a wilful overspend by the Labour party. It left us, in 2010, with the biggest peacetime concern about the level of poverty and the situation of budget deficit in our history—a £157 billion deficit and the poor. If the Queen starts getting involved in these a £1 trillion debt. If we pay off that debt at £1 million a issues, that is a wake-up call for everybody—not just for minute, it will take us 30 years. The truth is that everybody the Government, but for my party. However, the coalition in this country is now paying for that. We inherited a is in power and it should be looking at the issue of situation in which debt interest alone was set to rise to inequality. £70 billion a year. When we started, debt interest alone Apart from the fact that it is only right that society was, in effect, the fourth biggest Department of State, should be more equal and fair, addressing inequality and we were borrowing £1 for every £4 spent. It was makes economic sense. Problems with mental and physical an absolute disgrace for the outgoing Labour Government’s health often arise from financial difficulties and cost the Chief Secretary to have left a note with an exclamation economy about £40 billion. Addressing inequality makes mark saying that he thought it was funny that there was sense, but there was nothing in the Chancellor’s speech no money left. We should remember that. I do not think that helps the ordinary working poor person. it is a joke, because we are all paying the price. That is why I welcome the Chancellor’s announcement Several hon. Members rose— of the OBR’s reporting on the progress that we are making in our deficit reduction plan through the Mr Speaker: Order. I am sorry to have to tell the 80:20 rule—80% from spending and 20% from tax. House that, to get more colleagues in, I must reduce the These were tough decisions—all of which, we should time limit, with immediate effect, to six minutes—a remember, were opposed by Labour—and they are now reduction of one minute. beginning to lead to sustained long-term growth. Growth is up to its highest level for 30 years, and we are now the 5.32 pm fastest growing economy in the G8. Some 1.5 million George Freeman (Mid Norfolk) (Con): It is a pleasure private sector jobs have been created—three for every to follow the hon. Member for Bolton South East one regrettably lost in the public sector. There has been (Yasmin Qureshi). a 24% fall in unemployment, with the fastest fall in I suggest that today’s Budget was a significant and youth unemployment for 20 years. As a result, we are historic one for this country. Twelve months before a now on track to eradicate the deficit by 2018 and we are crucial general election, it gave the British people a clear paying off debt quicker than any other western economy. choice. It showed through the Office for Budget That is a record of which we should be proud and a Responsibility report the success of the last four years’ record to which this Budget stands testament. work of rebalancing and laying the foundations for I want to highlight the important work that the long-term growth. It showed us a Chancellor and a Government are doing from that platform to support Government committed to the long-term programme our innovation economy. Today’s announcements on of recovery on which we had embarked. It was a Budget science and technology and the knowledge economy for resilience, responsibility and the real economy. included £42 million for a new Alan Turing institute of I particularly want to highlight three elements: first, big data, in which Britain is leading the world; £74 million the extent to which we have finally begun to get on top for the cell therapy manufacturing centre and the graphene of the appalling historic legacy of debt that we inherited innovation centre, putting Britain at the cutting edge of from the Labour party; secondly, the significant steps new technologies that will turbo-charge new industries that we set out to support science, innovation and and new business creation; and £106 million for 20 doctoral export-led growth; and thirdly, the historic package of training centres across the country. support for savers and pensioners. We have an enormous opportunity to trade our way out of the debt crisis by plugging into the fastest Dr Julian Huppert (Cambridge) (LD): Will the hon. growing emerging markets around the world, Gentleman add the Cambridge city deal as a fourth particularly in the life sciences, in food, in medicine, point? That will contribute so much to what will help and in energy. In 30 years, those economies will go his constituents, as well as mine. through the same industrial and agricultural revolution that we started and went through in 300 years. They George Freeman: I am delighted that the Chancellor represent vast markets for our knowledge economy. has been able to support the Cambridge city deal, which That is why I particularly welcome the support for will play a key part in our innovation economy. export finance. As a trade envoy and a former business We should take time to remember the mess that we man myself, I know how important it is to support our inherited four years ago, and the causes of it. The truth small companies. We are starting from a woefully and is that between 1997 and 2010, we saw the largest shamefully low base. After 13 years, Labour left us very increase in public spending as a percentage of national weakly linked into those emerging markets. We still income of any industrialised country. During that period, export more to Luxembourg and Belgium than we do to we rose from 22nd to sixth in the world league table for China. I am delighted that the Government are making public spending as a percentage of national income. such progress. Before Opposition Members try to argue that that was a result of the global crash—indeed, after they have tried You do not need to take this from me, Mr Speaker—take to do that—I should say that if we take the date of it from the business community. The Institute of Directors 2007, before the crash, we see that our position on the has said: table had risen from 22nd to 10th. That is the second “This is a responsible and imaginative budget which should largest increase in history. promote growth, exports and investment. It will be widely welcomed.” 861 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 862 Situation Situation The British Chambers of Commerce said this afternoon and investment, and a Leader of the Opposition who that the Budget was seems now committed simply to going into the election “disciplined, focused, and geared toward the creation of wealth on a ticket of partisan politics and gesturing to his trade and jobs” union funders. It was not a Budget response that merited and that it “passes the business test”. The CBI has said: his title. It did not set out a serious economic programme for recovery, and I am afraid that it deserves the response “The Budget will put wind in the sails of business investment, especially for manufacturers.” that I think it will get at next year’s general election. I turn to the historic announcements on savings and pensions, with the pensioner bond, the new ISA, the 5.40 pm abolition of the 10p rate on savings, the child trust fund, Mr David Lammy (Tottenham) (Lab): I am grateful and the increase in the amount that can be invested in for the opportunity to speak in this Budget debate. I the junior ISA. begin by welcoming the Chancellor’s announcement on new housing developments at Brent Cross and Barking- Mr MacNeil: There is often a problem with the Riverside, and the overground extension at Barking. governance of ISAs when the banks attract savers into Those are much needed in London. There were also ISAs and then change their rules and boundaries so important announcements for the air ambulance service that within a year they are no longer selling that ISA in London, particularly a reduction in VAT on fuel, but have moved on to the next ISA pot. Sometimes which I know will be welcomed by the London ambulance savers may be ripped off by banks that have not been service. For those who have campaigned for many years responsible in managing their ISAs properly in moving on air passenger duty—the Minister will recognise that the vehicle that the money is in and lowering the interest that has been a real sore in the Caribbean community rate after a year or two. throughout this country and I know that Northern Ireland Members have also raised the issue—the George Freeman: The hon. Gentleman makes an announcements were surprising but very welcome. interesting point. The bigger point is that in the 1980s I had hoped that the Chancellor would deal with one the Conservative party launched a historic renaissance of the central challenges in our economy, which The of saving and wealth creation whereby more and more Spectator described as one of the biggest and most people, through ISAs and PEPs, were able to own disturbing social changes of our age: the polarisation in shares and save. That was wilfully destroyed by the the unemployment market, referred to in a BIS report former Labour Prime Minister, the right hon. Member last year. Britain now has an hourglass economy, with a for Kirkcaldy and Cowdenbeath (Mr Brown), through significant chunk of jobs at the top end—those on huge his stealth taxes. It has long been necessary for us to salaries in the banking industry or those who are part of restore a culture and a set of incentives for a genuine the global industrial nature of our world—and a shrinking renaissance in savings, and that is key to the resilience of jobs for those in the middle level and those who are that the Chancellor set out today. That was the most working up and hoping to take part in our economy. It important set of measures in today’s Budget, and it will is why there is such a debate about the living wage and stand the test of time. the minimum wage. We heard nothing in this debate What did we hear from Labour Members? I came about how we are to deal with this hourglass economy. here genuinely wanting to hear the Opposition’s response Our economy has lost 1.2 million semi-skilled jobs to this package. I wanted to hear the alternative economic that so many hon. Members would have recognised just policy that Labour is going to put to the British people a few decades ago. I am talking about the manual next spring. For all the noise we hear on the Government operators, the secretarial and administrative jobs that side of the House, the real test, as we know, is the existed in our economy. People are being squeezed as a silence from the Opposition Benches. What we heard result. Of the newly created jobs, 300,000 are in customer today was an embarrassing descent into business bashing services. The number of men working in customer and class war. If that is what the Leader of the Opposition services has risen by 46%. There is a real issue about the defines as his “new socialism”, I wish him luck. I will be quality of jobs in this economy, and how working sending a copy of his speech to all the businesses in my people can provide for their families. Some 88% of constituency, because it fails the business test in spades, Londoners are now reliant on the service economy. The and it is the business test that will drive the growth and fundamental question for any Chancellor is whether investment on which the public sector always depends. that is satisfactory when the bulk of those services are in the retail economy. We say that the economy is Ian Mearns: Will the hon. Gentleman also be sending looking better and consumers are spending a bit more, them a copy of the noise that was being generated by but can we not learn from the economic crash in the Government Members during the speech of the Leader first place and ask for an economy based on creativity of the Opposition today? and innovation, and not one based on consumption and predatory practices, as the Government seem to George Freeman: I will have a chance to read Hansard. applaud without dealing with the structural problems I am not surprised there was noise. It was a shameful in our economy? performance. When, 12 months from the election, this I want to see more manufacturing in our capital city. country needs a choice, and Her Majesty’s Opposition If New York can do it, so can we. Advanced manufacturing are supposed to set out an alternative economic policy, means that people are paid more. We ought to be setting it was woeful. It gives me no pleasure to say it. The that as our aim, but the Budget did not seem to deal result is that the choice is now clear: a Chancellor, a with those issues. Of course one welcomes the extra Government and a Prime Minister with a long-term 15,000 homes in Ebbsfleet, but the vision is poor. Eleven plan for resilience and recovery, led by the real economy new towns were set up in the Abercrombie plan—look 863 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 864 Situation Situation [Mr David Lammy] them to match the results of those in the highest performing countries. We do it through highly skilled apprenticeships: to Stevenage, Crawley and Peterborough, where I went the number of people going into apprenticeships has to school. The idea that we will solve our housing crisis doubled, and some 2 million apprenticeships have been with 15,000 homes is, frankly, pathetic. launched under this Government. We do it by setting up In London, people’s rents have increased eight times university technical colleges nationally—my constituency faster than their salary and an average property costs has Central Bedfordshire UTC—to make sure that our 16 times the salary of those who want to buy their own young people have the skills to go on to earn decent home. The average age of a first-time buyer in London wages in productive industries. That is how we will deal is 38 and they are doing it with the help of the bank of with productivity, because the money is there to be mum and dad: 70% of them are borrowing from their earned. parents in order to get a deposit and get on the ladder. I Government Members think it is morally unacceptable did not hear enough about how this Budget will deal to pass this generation’s unpaid debts on to our children with the big housing challenge this country faces. and grandchildren. It is frankly shameful that this country I welcome the decisions on energy in particular, but if has not lived within its means since 2001. The fact is we are really going to be a creative economy and the that every four days we are still spending £1 billion innovationnationthatwehavetobeinordertocompete more than our income. That is why we have further with so many other countries, research and development work to do on getting the budget back in balance. As is critical, but spending on it in Britain dropped again the Chancellor reminded us at the start of his speech, last year by 8%. What was in this Budget to support R we still have one of the highest deficits in the world. and D and ensure that we will be the innovation nation In their first term, the Labour Government brought that we have to be? Not enough. down debt as a proportion of GDP from, roughly, 40% The Budget felt complacent. It gave the impression to 30% when they followed Conservative financial plans, that all is good. Apparently we are all in it together, but and I commend them for that. To be fair, they were right in fact, when this House votes on the Budget, we will be to do it. voting, in effect, for an increase in our pay, because the We have created 1.7 million new private sector jobs, thresholds have changed and we will benefit. My concern with 400,000 new businesses set up, and we are looking is for the many out there who will not benefit from this at a real-terms increase in the minimum wage to £6.50. I Budget—the many who are dependent on an economy may add that cleaners at the Department for Work and with structural problems that are not being addressed, Pensions are now on the living wage, which was not the on housing and on those jobs that that this country case under the previous Government. For the first time needs. We should see more from this Government. in 35 years, the United Kingdom has a higher employment rate than the USA. 5.46 pm For pensioners and savers, the Chancellor has today announced fantastic and really significant changes. I Andrew Selous (South West Bedfordshire) (Con): It is remember saying in opposition, in one of my first a pleasure to follow the right hon. Member for Tottenham speeches in this House, that I wanted people to have the (Mr Lammy), who understands the need for strong same sense of ownership in relation to their pension as families. they have in relation to their house or their car, and we I want to deal head-on with many of the points that have moved significantly towards that today. People will have been made about the financial challenges that feel that they own this money and have much greater people face. The facts are that the recession this country control over it and much greater flexibility, which is all faced was much deeper than we thought; at the same hugely welcome. time, this country faced a huge commodity price shock, The tax cuts coming in are hugely significant. The with energy and food prices going up significantly; and investment allowance is going up to £500,000. Fuel duty our major market in the eurozone, where half our has been frozen. Council tax has again been frozen. The exports go, was flat on its back. Those were significant personal allowance will increase to £10,500. Corporation challenges. tax has been cut from 28% to 21%. Business rates for The Chief Secretary in the previous Government, the smaller businesses will be cut next month by £1,000, right hon. Member for Birmingham, Hodge Hill which is brilliant for our small shops and businesses. (Mr Byrne), pointed out that wages for lower-paid Employers national insurance contributions will also be workers had been rising very slowly since 2003. On top cut from next month by £2,000. A penny is being taken of that, there was a huge wave of immigration under the off a pint of beer. From next April, national insurance previous Government. Between 2005 and 2010, there will not have to be paid for everyone under 22. All those were 413,000 fewer British people and 736,000 more measures will help enormously, as will the cuts in energy foreigners in employment. Those are official figures costs, which I was delighted to hear about because they from the Office for National Statistics. That had an are those absolutely necessary. I very much welcome the impact on driving down wages, which has been at the fact that families will get a further £15 off their energy root of many of the concerns we have heard from the bills, while mid-sized manufacturers will get £50,000 off Labour party. their bills. How do we deal with low wages and create a high-wealth What the Chancellor said about exports was fantastically economy so that we can deal with the issues of poverty significant. Going from the least competitive to the we have been discussing this afternoon? We do it by most competitive export finance regime in Europe is having world-class schools. This is a Government who fantastic. I am the son of a small manufacturer who are not content with British children getting better exported all over the world, so this is in my blood. I educational results than the previous year—they want get hugely excited when I see businesses in my 865 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 866 Situation Situation constituency—BE Aerospace, Honeytop Speciality Foods, 98 by his consultant. He went to Atos and got zero Strongbox Marine Furniture—exporting all around the points. He is now in a state of malnutrition, along with world. We need to give them more help, and we need his other problems. He is unfit to work. more exports. We all welcome the increase in the tax allowance. The Chancellor said that this is a Budget for resilience, That will cost about £1.8 billion. There was choice and it is good that this Government are trying to about that this year. encourage resilient families. The number of children There has been some talk of inequality being at a living with both parents has increased by 250,000, going 25-year low. However, the changes in benefits will increase up from 67% to 69%; and it is particularly welcome that inequality. The poorest spend a greater proportion of the figure has gone up from 45% to 48% for low-income their money on indirect taxes—some 30% for the poorest families. fifth compared with 14% for the richest fifth—but the Finally, I hugely welcome the cut in VAT on air Tories have decided to give money away through direct ambulances. Many mayors in my constituency have taxes, because that helps people who are better off. That raised money for the air ambulance in the east of is only what we would expect. England. The major initiatives on exports, such as credits for exports and support for UKTI, are to be welcomed, but 5.52 pm let us not forget that the trade deficit has grown by 15% from £100 billion to £115 billion since 2010. We Geraint Davies (Swansea West) (Lab/Co-op): It is a welcome the increase in building, but let us not forget great pleasure to follow the hon. Member for South that the target is lower than the increase required by West Bedfordshire (Andrew Selous), who seems to have population growth alone. Companies such as Taylor been spellbound by the Wizard of Osborne’s Wonga Wimpey and Barratt are saying that they will build a economics. maximum of only 15,000 homes a year each. All the I say that because since the arrival of this Government, money is being funnelled by the banking system into debt as a share of GDP has risen from 55% to 75%, and mortgages, which is lifting the price of existing houses, it will rise to 80% when they leave office next year. rather than into building new houses, so Help to Buy is [Interruption.] Contrary to the mutterings by Government obviously a political ploy that will blow up in our faces. Front Benchers, the reality is that the previous Government There have been cuts in infrastructure over the past did a very good job in increasing GDP by 40% in the two years, and they are beginning to pick up. High 10 years to 2008 and, when they faced an international Speed 2 will not arrive until 2030. The Prime Minister crisis, by engaging in fiscal stimulus—with President said that he would electrify the railways in the valleys, Obama—to avoid a deep depression and give us a but now he is saying that the Welsh Government should shallow recession, so that by 2010 we had the modest do it. The Government have given borrowing powers to growth that was then destroyed by the current Chancellor. the Welsh Government and so have said they have to He announced 500,000 job cuts in the public sector, pay for it. That was a clever bit of footwork. There was which basically stopped consumption and flatlined the a 49% cut in road building between 2010 and 2012, and economy, which is why the debt has grown and why this there are no new motorways or highways. Government have borrowed more in three and a half years than the previous Government did in 13 years. I welcome the cuts in energy prices for companies such as Tata, which is local to me. However, much of The Chancellor says that there is now growth, with a the problem was created by the Chancellor’s carbon new recovery, but if we analyse that growth, we can see pricing in previous Budgets. that lending by banks in the form of mortgages and consumer debt is at the same level as in 2008, while Obviously bingo is great. If people go down the pub lending to business is down by 30%. That is why productivity and buy 200 pints of beer, they will now get one pint has fallen—down 5% in Britain, compared with an 8% free. That is great as well. rise in America—and why this is not sustainable growth Overall, this is a political Budget that is focused on rooted in the real economy, but just a bubble in the the better-off and the south-east, and that cuts the housing market that will burst once interest rates go up, public services that people rely on. It could have been as they will when unemployment goes below 7%. After better for businesses and for people. We want a one-nation the next election, the bubble will blow up in people’s economy, not two nations in Britain being pulled apart. faces, as happened with sub-prime debt, because people We want fairness and strength, but we will not get them do not have the income to pay the higher mortgage with this lousy Budget. costs that will follow a rise in interest rates. Government Members say that everything is rosy and 5.58 pm that incomes are going up, but the people who are worst Damian Collins (Folkestone and Hythe) (Con): off are those on jobseeker’s allowance who are desperately Mr Speaker, looking for jobs. As I mentioned in an intervention, in “By making a better business environment his top priority, the Swansea 65% of people who are on JSA have been Chancellor has recognised that successful and confident companies sanctioned. They have less than £72 a week to live on, are the key to transforming Britain’s growing economic recovery but they are having money taken away for not turning into one that is felt in homes and on high streets.” up to Work programme appointments that they were That was the response this afternoon of the director only notified of the day after the appointment should general of the British Chambers of Commerce. It reflects have happened. That is a dreadful situation. the fact that the Budget takes place in an economy I met somebody last week who has chronic disabilities. where growth is established—it is set to grow faster than He has a major heart condition. Although he is 28 years any other developed economy in the world—and where old, he was judged to have the physique of somebody of unemployment has been falling consistently and steadily. 867 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 868 Situation Situation [Damian Collins] of jobs across the creative sector, not just those employed in it directly. The Chancellor was absolutely right to say More than 1 million jobs have been created in the that he wanted to extend those production tax credits to private sector across the country. Today’s unemployment theatre, including regional and touring theatre. figures provided further good news. In my constituency, I know that many people in the drinks industry, as unemployment fell again. Unemployment is 20% lower well as drinkers, will welcome the cut in beer duty and than it was at the time of the last general election and I the freeze on whisky duty. Last week, I met some hope that it will continue to fall. That is making a winemakers at Chapel Down in Kent, who work in an difference to people’s lives and circumstances. important and growing area of the UK drinks industry. I am sometimes dismayed to hear Opposition Members I am sure that they will welcome the scrapping of the decrying the number of jobs that have been created and duty escalator, but what was more important to them in pretending that they are not worth anything. The best today’s Budget were the incentives to invest in the thing that we can do in the economy is get people back growth and development of their business. They are into work, and there are a variety of jobs that people much more concerned about growing and expanding want to do. In an intervention earlier, the hon. Member their market overseas, so they will hugely welcome the for Swansea West (Geraint Davies) seemed to dismiss a increase in export finance from the Government to job for a young person as an apprentice in the retail £3 billion and the £500,000 annual investment allowance sector as one that was not worth having, particularly in for businesses, as they invest in the future success of the fashion and textile industry. I find that absolutely their business. staggering, because it is an important industry that I wish briefly to mention savers. Many people in my people want to go into. constituency will have been delighted to hear what the I welcome the extra investment in the apprenticeship Chancellor said today. For a long time, it has been a programme announced today. The programme has helped bugbear of many people approaching retirement that a lot of young people get into work, and I have seen it annuities have been poor value, and they have resented work to great effect in my constituency. At an event that being forced into taking out a poor product that they I attended with the Federation of Small Businesses last did not want. They now have more freedom. I know week, I was pleased when it said that because of growth that many older people who rely on savings income have and falling unemployment, one of the big demands been concerned that they have not been able to get the from employers is to have more skilled people to recruit returns that they would like, because banks’ interest from. Investing money in apprenticeships, further education rates have been low and the range of products has been and skills training is important in meeting that demand. limited. The creation of new bonds that will be available The Chancellor reminded us today of the cuts in to pensioners, with returns of up to 4%, will lead to a business taxes that the Government have put in place, revolution in the savings market in this country, as will particularly the headline cut in corporation tax from the reforms to ISAs. Somebody said earlier that they 28p to 20p in the pound next year, which will make a big should now be known as NISAs—new ISAs—which is difference, including to smaller businesses on the high a nice touch. They will be simpler, and people will be street. One of the great tests that I apply in Folkestone able to save more, which will be— and Hythe to see how well the local economy is doing is what the high street looks like. Is it busy? Are people George Freeman: Nicer. out shopping? Are businesses trading? I am pleased to see more new independent businesses opening and taking Damian Collins: Exactly. shape, and more entrepreneurs setting up their businesses Like other Members, I greatly welcome the removal in incubator spaces such as the Workshop in Tontine of VAT on fuel for air ambulances. Kent, Surrey and street in Folkestone. Town centre businesses will benefit Sussex Air Ambulance is a fantastic organisation and from the £1,000 cut in business rates that the Chancellor has been calling for that change, and it and people announced in the autumn statement and the £2,000 across Kent will welcome it. employment allowance, which will go to smaller businesses. The cuts in income tax will benefit a huge number of 6.4 pm people across the country. More than 3 million people will benefit from the lifting of the personal allowance to Sarah Champion (Rotherham) (Lab): In the lead-up £10,500, and 45,000 people in my constituency will be to the Budget, I argued that the Chancellor should use better off as a result of the changes in income tax that this opportunity to demonstrate a clear Government the Chancellor has announced. strategy to support young people and, in particular, I I also particularly welcome the Chancellor’s focus on hoped to see him signal a strong commitment to what he called “the makers”, who are an important part apprenticeships. I therefore welcome the Chancellor of our economy. The right hon. Member for Tottenham saying that he will double the number of apprenticeships, (Mr Lammy) said that we should do more to support but unfortunately that is not enough to bridge the skills and stimulate the creative economy, but we have done a gap. huge amount. The Chancellor confirmed today that the The fact that youth unemployment remains so high is European Commission has approved the production of concern to us all, and I was heartened to hear hon. tax credits that were announced in the previous Budget Members speaking about schemes in their areas and for the video games industry, high-end TV production saying that unemployment is going down. Unfortunately, and drama and the animation sector. Those policies are however, in Rotherham and many other constituencies now bringing investment into this country and into a that is not the case. The current figures paint a grim rapidly growing industry. The film and television sector picture: almost 1 million young people are still not in in this country is booming and sustains a large number education, employment or training, and today more 869 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 870 Situation Situation than 730,000 more young people are out of work or hope has he offered them in this Budget? The answer is underemployed than in 2005. We are seeing the beginnings clear: he has done very little indeed, and he is offering of a generational crisis that will not only cause problems them very little hope. for young people today, but create a skills gap that will I wish to make a plea to the Chancellor: it is time to follow them into the future. If we do not give our young start taking the youth unemployment crisis seriously, people the training they need to work now, the future of and it is time to invest the Government’s Budget in our long-term economy will be at stake. young people because they are our future business The impact of the Government’s choices does not leaders, construction workers, engineers, and scientists. end with the economy, because the quality of life enjoyed If we do not act today, we risk creating a generational by our children, and our children’s children, will also be skills gap. Our society needs a strong, motivated and affected. I do not want future generations to worry skilled young work force who will serve Britain not just about where their next meal is coming from, or whether now, but for long into the future. Young people need they can afford to heat their house, because they were serious Budget commitments to support them, not the not given the chance to develop vital career skills when Budget we were given today that clearly supports the they were young. That is why I felt it so important for richest few at the expense of all others. the Chancellor to use this Budget to invest more in young people’s skills and training. 6.9 pm Young people want to work. We know that, but there is still a lot more we can do to invest in their future. Toby Perkins (Chesterfield) (Lab): At a time when Regardless of the Chancellor saying today that he will people are facing a choice between heating and eating, add 100,000 apprenticeships, the number of new apprentices the sight of those ignorant, braying public school boys fell by more than 25,000 in the past year. In addition, on the Tory Benches during the response by the Leader there are now more than 5,000 fewer under-19s starting of the Opposition showed the contempt that they have apprenticeships than there were in 2009. Supply of for the serious issues that people in my constituency are apprenticeship opportunities is simply not keeping up facing. The speech by my right hon. Friend the Member with rising demand, with many young people missing for Doncaster North (Edward Miliband) spoke far more out as a result. Added to that are concerns that many to the real issues faced by my constituents than did the apprentices are not receiving the legal minimum wage, hour-long lecture that we heard from the Chancellor and a recent survey showed that 29% of apprentices are today. not being paid enough. What does the Budget do for This is the Chancellor’s fourth Budget and people in apprentices who are not getting the minimum wage? Chesterfield know what to expect: a recovery for the What does it do for young people who want a job but few, not the many; a denial that the cost of living crisis cannot find one? is engulfing British families under his watch; and a I still believe that apprenticeships are not being taken steadfast refusal to take action on the key issues facing seriously enough by this Government as a credible our economy. He said today his core purpose was the alternative for our young people. The level of apprenticeship economic security of people in Britain; well, he has a applications outstrips the number of available places by funny way of showing it. He should know that despite 12:1, and the Chancellor’s announcements today will the increase in the tax threshold, the combination of the do little to address that. Nationally, think-tanks have VAT increase, the failure to take action on uncompetitive reported that England currently has only 11 apprentices markets, the low wage, low security economy he is in place for every 1,000 jobs. Now is the time for us to creating, and the slowest recovery in history mean that turn the tables and invest in young people by creating people are poorer under the Tories. more apprenticeships of greater quality. The Chancellor For those feeling the pinch, as families are £1,600 says that his plan is working, but if he really had a worse off under this Government, there was precious convincing plan, he would have built into the Budget little here. For families struggling with the cost of child serious and credible measures to support young people, care, there was a promise that after five years of rising safeguarding the economy for the future. prices things will get better if only people are fool Allow me to paint a picture of the crisis in my enough to vote for the Tories a second time. For those constituency. The census showed that more than 50% of who cannot afford a deposit as house prices spiral, there young people in Rotherham are either unemployed or is nothing about tackling the lack of supply but further economically inactive. Let me say that again: more than measures that could increase the prices. For the small half of Rotherham’s young people are without a job. business owner desperate to grow and branch out but They want to work but they have nowhere to turn. who has been refused loans by all the major high street Scandalously, that is not even the worst of it. If we banks, there is nothing about the access to finance compare the number of young people in my constituency crisis. who have claimed jobseeker’s allowance for a year under These stories are all too familiar to people in Chesterfield, this Government with the equivalent in the last four but their plight is not a by-product of the Chancellor’s years of the Labour Government, we see that the figure plan; it is the Chancellor’s plan. He thinks that Britain’s has increased dramatically. Indeed, I was flabbergasted economy can grow only by winning a race to the bottom, to find out that that figure had increased not by 20% or but an economy built on insecure work, zero-hours even 50%, but by an incredible 760%. That is a 760% contracts, and fewer rights in the workplace is a castle increase in young people in Rotherham claiming jobseeker’s built on sand, trapping people between an insecure allowance for a year under this Government—you couldn’t workplace that seems to say that working people should make it up! That figure alone is enough to make me ask just be grateful for any work they can get and a benefits what the Chancellor has been doing to support unemployed system that shatters their dignity and crushes their young people in Rotherham in the past four years. What spirit. 871 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 872 Situation Situation [Toby Perkins] This was the Chancellor’s last chance, but, again, when the moment arrived he flunked it. Trapped in an The Chancellor said that each job makes a family analysis of Britain’s problems that is fundamentally more secure. Well, not under this Government it doesn’t, wrong, it is hardly surprising he came up with the because many of the 5,000 people who rely on food wrong answers. People struggling with the cost of living banks to feed them are in work. The increase in the yesterday will still be struggling tomorrow. Parents kept number of people in work and in poverty is a national out of the jobs market by the cost of child care have disgrace. Under this Government work is not the route been told to hang on until 2015. For big business out of poverty it once was. struggling with access to finance, absolutely nothing. This Government have run out of ideas; let’s have an The Chancellor promised us the pain he inflicted on election. our families would be worth it because two parties had come together to eradicate the deficit, but today we Several hon. Members rose— learn that his central purpose—the reason we put up with this Government—which is deficit eradication is Mr Speaker: Order. As a result of a slew of brief still £90 billion away. We should remember what the speeches delivered without interventions over the last Office for Budget Responsibility told us back in 2010. It half an hour or so, I am now in a happy position to be told us that by the end of this Parliament we would have able to raise the time limit on Back-Bench contributions, seen growth of 14.6%. Well, from quarter four of 2010 with immediate effect, to eight minutes. until now growth has been just 3.5%. The deficit will still be £75 billion by 2015-16. The Chancellor’s failure means he has increased the national debt more in three 6.15 pm years than Labour did in 13 and he has failed in respect Alison McGovern (Wirral South) (Lab): It is an honour of the cost of living for working families and he has and a pleasure to follow my hon. Friends the Members failed to take action on the energy companies. for Rotherham (Sarah Champion) and for Chesterfield We know from a ComRes survey released just this (Toby Perkins), both of whom made thoughtful Sunday that a pitiful 9% of the public say their ability to contributions. Those of my constituents who watch pay their monthly bills has improved since the Chancellor Parliament Live TV—some of them do—will have heard entered No. 11 Downing street, and what about yesterday’s their speeches and know that Labour Members are Survation poll showing that, when the poll was restricted standing up for their concerns. My Merseyside constituents to people in work, Labour held a 17% lead? Let there be have had three really tough years, and listening to the no doubt which is the party for workers. The Chancellor’s Chancellor today, I have to ask myself what his message priorities could not be clearer: take food from the was to them. It is hard to know what he thought he was mouths of families living in poverty to fund a £100,000 offering the people of this country. Economic growth is cut for his friends in the City earning over £1 million a still behind the projections made by the Office for year. Budget Responsibility in 2010. I know that economic forecasting is a somewhat As shadow pubs Minister it would be churlish of me interesting art, shall we say—it is not always the easiest not to welcome the Chancellor’s temperance when it thing to do—but it is a little tough to take from a came to alcohol duty this year, although we should Chancellor who has set great store by his intervention in remember both that he is the Chancellor who raised the world of forecasting that he has effectively not met most from the beer duty escalator that he kept for three the test he set himself. He has failed on growth, failed Budgets, and that his increase in VAT added more to the on the deficit, is still behind where he said he would be, cost of a pint than the increase in beer duty has done. and is now trying to rewrite the record ahead of an On business rates, what we have seen is a Conservative election. The British people are not so foolish: they will con trick: a £1,000 discount while the underlying rate of not buy it. They know that the Chancellor said he business rates is going up—a bomb waiting to go off would cut and cut and cut to protect the credit rating—and, under the high street recovery. In two years’ time those lo and behold, lost the credit rating in any event. levels of business rates will have continued to go up and Today’s macro-economic picture shows that the the discount will just disappear if anyone is foolish Chancellor is failing the tests he set himself and reheating enough to vote for this Government again. Businesses’ and re-announcing a whole bundle of things, many of key concerns in respect of the Budget were crystal clear: which were actually initiatives of the last Labour all the major business groups’ Budget submissions said Government. Nobody is going to be fooled. Worse than there must be action on access to finance, yet we have that, he has totally missed the genuine problems in our seen absolutely nothing. economy. There is fragility at the lower end of the This Government are in denial. They cannot understand income distribution scale, and I have real concerns why people are not thanking them for the recovery they about what is happening at the top. Meanwhile, people are delivering, but the truth is people know that evidence in the middle are being squeezed yet again. of the recovery is not appearing in their pockets. We I say to those Members who are considering crowing desperately need a jobs guarantee, and Labour’s jobs about this Government’s record on unemployment that guarantee will not only take young people off the they seem not to have learned the lesson of the 1980s on scrapheap, but it will end the cycle of hopelessness that the claimant count. It is perfectly possible to reduce the sees young people trapped in life on the dole. They will claimant count just by getting people not to claim what not be further impoverished by benefits sanctions, but they are entitled to, and not to turn up at the jobcentre. will have a positive role that says to the young, “You If anyone wanted to solve the unemployment problem should be at work. We’ll fund the job, you’ve got to by getting people not to claim benefits, the DWP’s take it.” current strategy would be an excellent way of going 873 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 874 Situation Situation about it. The culture there is not about helping people It would be nice to have some recognition for the to find a job, but making them feel as though they are reinvention of the modern apprenticeship in 2003. My there to be judged, dictated to and sanctioned. As hon. Friend the Member for Rotherham is absolutely everybody knows, the Work programme is failing. right that we need to do much better when it comes to Thanks to you, Mr Speaker, in Westminster Hall this the number of apprenticeships. afternoon I was able to raise an issue that I have raised We have problems at the bottom; we have a squeezed time and again: the iniquitous zero-hours contracts and middle, and no answer has been proposed to their the massive increase in part-time and self-employment, problems; and I have genuine concerns about the long-term all of which is clouding the true picture of what is going stability of our economy. on in our labour market. In speaking up for my Merseyside constituents, I should point out that we have not seen a 6.23 pm rebalancing. It was interesting to hear what was said about the Cambridge city deal, which I am sure is Kate Green (Stretford and Urmston) (Lab): There is wonderful for the people of Cambridge—but Cambridge little in the Budget for families with children. It follows was doing pretty well anyway. I really do not understand a series of Budgets and spending reviews that have been how investing in Cambridge was supposed to amount difficult and disappointing for children and which, the to rebalancing. Institute for Fiscal Studies has predicted, will lead to a Meanwhile, the north-west is doing pretty well and I substantial rise in poverty over this decade. am really proud of it, but much of the credit for that I recognise why the Chancellor wants to incentivise goes to the leadership of the cities of the north-west saving, and of course we want to ensure that pensioners rather than to the Chancellor. Where is the north-east— are protected from poverty, but I am concerned that the [Interruption]—and Yorkshire in all this? No effort is Budget exacerbates an increasingly unbalanced approach being made to address the economic problems there. I to support between the generations. The first thing that urge Conservative Members to look at their history: constituents of all ages say to me on the doorstep is how they will not reconnect with the people of the north of worried they are about the prospects for the next generation. England by ignoring us and pandering to those who I am proud that Labour took more than 1 million view us as unreconstructed, or to the Tory think-tanks children out of poverty. The Budget and the Government’s that believe we should have a managed decline. But that depressingly weak child poverty strategy that was is not what is happening, and the reality is that the announced the other day represent missed opportunities, Treasury seems to be straightforwardly ignoring the and as a result, the gains made under Labour will be all people of the north of England. but wiped out. That is not because there was no option: For those in the middle, it is deeply unfair that even different choices could have been made. The burden of skilled people such as nurses are not getting pay rises. austerity has been predominantly borne by spending Many small business owners raise with me the question cuts rather than by tax increases for the wealthiest, and of business rates, which my hon. Friend the Member for that has had a disproportionate effect on low-income Chesterfield mentioned, but again that issue seems to families. have been totally left to one side. Action must be taken We know that family benefits have been important on business rates, on energy prices and on the other plank in reducing child poverty. According to the Institute problems that trouble families in my constituency, who for Social and Economic Research, the UK has the still need to have conversations around the dinner table second highest child poverty rate, before taxes and about how to manage the family finances and who still transfers, in the 27 EU countries, yet, by the 2014-15 worry about getting to the end of the month. financial year, working age benefits spend will be £22 billion At the top end of the income distribution scale, the less than in 2010-11 as result of uprating policies, cuts Chancellor clearly has not learned the lessons of the and freezes. That is having an especially harsh impact in 1980s, and certainly not of the big bang in 1986 and its households with a disabled family member. One third of legacy of exposing our country to risk in the City of people in poverty live in a household with a disabled London. I am afraid that is not good enough. Because member, and a quarter of children in poverty live with a the Help to Buy scheme covers properties worth as disabled adult. much as £600,000, it risks creating a similar bubble, and Localising benefits also makes the situation worse. many commentators are fearful about what is going on Council tax assistance and local assistance schemes in the housing market. The Bank of England now says have been criticised by the Public Accounts Committee that the City might reinflate itself to between nine and and the Work and Pensions Committee respectively. 15 times the size of our economy. If that does not look The Committees have expressed concern about their and sound like a genuine risk to the stability of our impact on vulnerable families. In the meantime, the cost economy, I am not sure what does. of living is rising—the impact on families with children The Chancellor mentioned broadening the LIBOR is especially harsh—yet for first time since the 1930s, the investigation, which is a real worry to me, because we uprating policy for payments for children is now entirely have not yet got a handle on the culture in financial detached from the price rises that affect them. Uprating services. Plenty of people work in ordinary jobs in at 1% bears no relation to RPI or to CPI; the cost of financial services, and I am not criticising the sector as a goods and services has risen 15% in past three years. whole. However, the high levels of inequality and the Indirect taxes have hit the poorest families hardest, as a poor culture at the top do not benefit the ordinary higher proportion of their income is hit. people who work in bank branches and call centres, The living costs that particularly affect families with helping people with their banking every day. They, like children have been rising fastest. They include food, everyone else, want the sector to be controlled. There energy, rent and child care. This week’s announcement are real problems with people on low wages. on child care will still leave families without the help 875 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 876 Situation Situation [Kate Green] I was disappointed when I looked to the Budget today for a new approach. But a new approach is that they need. The Institute for Fiscal Studies has affordable and it can be done: we could redirect the confirmed there is no new money to fund the ill-chosen marriage tax break to benefit low-paid families; announcement, and the number of families benefiting we could do more to attack the basic living costs faced from the scheme is around half what the Government by families, and more to freeze energy prices and support said it would be. Figures revealed in the Government’s low-income families with the cost of child care; we latest consultation document show that around 1.26 million could rebalance the system to recognise the role of families will benefit from tax-free child care, not the mothers as main carers of children, putting an emphasis 2.5 million claimed in the original consultation document. on money paid to women in the tax and benefits system, Also, there is no new support for those on tax credits, and money paid to mothers which will be spent on their who will not be able to access the tax-free child care. kids; we should look again at the structure of universal credit, and at its disincentives for lone parents and I welcome the increase in support for child care costs second earners to maximise their income from work; under universal credit to 85%, but it is a matter of and we should look back to the helpful recommendations concern that that will be met from within the universal the previous Government received from Lisa Harker, credit budget. It is therefore unclear where the money which I believe were welcomed by all parties, to design will really come from. Universal credit is already running employment support in Jobcentre Plus more effectively late and over budget, so how can this extra sum be to recognise the particular parenting and caring needs afforded? We also have no firm timetable for all parents of parents—that should also be done in the Work being migrated on to universal credit; we know that the programme. programme is experiencing significant delays. If those measures were undertaken, we would be on The Government say that work is the best route out track to eradicate child poverty, to boost parental— of poverty, but the majority of children in poverty live especially maternal—employment and to end inequality in a household in which at least one adult is working. gaps. I hope that Ministers will begin to re-examine the Tax breaks do not do enough to compensate those way in which they achieve a balance of measures that families. The Resolution Foundation has found that properly reach out to all families, particularly families 75% of the benefit of the increase in personal tax with children. That has been sadly lacking from the threshold goes to the top half of the income distribution. Budget today. The Chancellor himself confirmed this afternoon that higher rate taxpayers—those earning up to £100,000—will 6.31 pm benefit from the increase in the threshold. Only a tiny element of the cost of the initiative will go towards Simon Danczuk (Rochdale) (Lab): I am pleased to lifting people out of tax altogether. I understand why follow my hon. Friend the Member for Stretford and the policy is popular, and why it has been effective for Urmston (Kate Green), who made an extremely good some low-paid workers, but Ministers need to look speech about how the Budget and the Chancellor’s carefully at whether this is now becoming a game of actions have a direct impact on people—she discussed diminishing returns. Meanwhile, there is no other effective the social dimensions to this Government’s actions. I labour market strategy.There is no strategy on progression, wish to concentrate on the economic aspects. for example, and there has been insufficient action on On Sunday, the Chancellor said that we need to low pay, zero-hours contracts and part-time work. tackle the long-term economic challenges facing the country, and I could not agree more. The problem is The gender pay gap is also widening. The element that he also said that we have “a balanced recovery”—I that is totally missing from this Budget—and all previous could not agree less. If we are serious about tackling the Budgets and spending announcements from this big problems in our economy, it is best to start by Government—is a gender analysis. Their policies fail to admitting what they are. The simple truth is that there is recognise that child poverty is a product of maternal a huge imbalance in our economy between the north poverty. Mothers are usually the main carers of children, and the south, and that is one of the biggest challenges yet this Government’s policies are positively inimical to our country faces. The Chancellor came into office women. Universal credit is to be paid to one member of talking about rebalancing the economy, driven by what a household, which provides poor incentives for second he called the “march of the makers”. But this Budget earners to increase their pay. The marriage tax break shows that this Chancellor is incapable of matching will help only one in six families with children, with words with actions. Instead of the march of the makers, 84% of that benefit going to men. Meanwhile, child we have yet another championing of the capital; we benefit, which is usually paid to women, has been have an economic policy that suits London but that frozen or removed, and the child tax credit uprating has does not suit the north of England. been held back at 1%. Marriage tax breaks are no help whatever to lone parents, the majority of whom are To see that, we need look no further than tonight’s women, and whose children face greatest risk of poverty. London Evening Standard, whose front page says it all: Lone parents are also now having to pay for the child “Osborne’s Budget boost for London”. It talks about maintenance to help to support their children. Barking Riverside housing, Brent Cross regeneration, the Ebbsfleet garden city and the air ambulance for Overall, the value of financial support for families London. I am not saying those things are not needed, with children is being eroded, compared with the minimum but all that was in the Budget speech and it is all about income needed for families to raise their children. This the south-east and about London; there is nothing is beginning to create real desperation among those about the north—about Greater Manchester, Merseyside, families. More and more parents are going without, in Yorkshire or the north-east. That is the reality of it; order to provide the basics for their kids. there is no rebalancing of the economy. 877 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 878 Situation Situation Let us just look at this Government’s record on the economy. They talk about their long-term economic rebalancing the economy. All of this Government’s plan, but the reality is that they shy away from every major infrastructure projects have been based in London major challenge. and the south-east. Weeks ago we even had trains from The Chancellor is very proud of raising the income the Pennines being hauled down to Oxfordshire—that tax threshold, and it is something that I welcome, but is the reality of it. when it comes to addressing the causes of low pay and investing in the vocational skills we need, he has nothing Neil Parish (Tiverton and Honiton) (Con) rose— to offer. When it comes to energy, he would rather Simon Danczuk: I will not give way. These trains were tinker with the carbon tax than show real leadership needed in the north to provide vital links between our and reform the energy market. The Chancellor talks of cities. There is no better example to show where this tough decisions, but he only takes the tough decisions Government stand and what their priorities are. that hit the poor and voiceless, not the rich and powerful. For all the talk of a long-term economic plan, it is Let me give the House another example: the new becoming increasingly apparent that the only date that homes bonus. According to the National Housing concerns this Government is May 2015. Federation, it has taken £104 million from councils in the north and given £342 million to councils in the It is clear that this Budget fails to address the fundamental south, stuffing money into the back pockets of well-off challenge of our unbalanced economy.This London-centric local authorities—that is the reality of it. The regional Government cannot be trusted to make the big decisions development fund was supposed to counter many of about the economy of the north. The time has come for these issues by pumping regeneration money into the more fiscal devolution for our northern cities, such as north of England, but even that has been a failure Greater Manchester, so that they can keep more of their under this Government, with more than £2 billion of own money and use it to unlock the economic potential the £2.6 billion budget still lying in Government coffers—it that is being wasted by this Government. More than has not even reached the targets it was supposed to that, we need a Labour Government committed to reach. rebalancing our economy and securing the long-term economic future of the country. Perhaps the worst example of this Government’s southern bias is the way that they have treated business 6.38 pm rates. Delaying the revaluation of business rates was a Mr William Bain (Glasgow North East) (Lab): This cynical and calculated move designed only to insulate is the Chancellor’s fifth Budget, the aim of which is to southern businesses from paying fair rates. That is the turn the focus of the Government towards the election, reality. We now have the ridiculous situation in which and given the events of recent days, that election must struggling retail centres, such as Rochdale high street, be the leadership election, which is drawing ever closer are effectively subsidising places such as Regent street in within the Conservative party. As Government Members London where business is booming. It is outrageous, return to their constituencies to prepare for Opposition and business people in the north of England are quite next May, they will have many weeks and months to rightly furious about it. decide how they can explain to voters why this Government Yasmin Qureshi: Does my hon. Friend think that the is the first since the 1870s to leave households worse off reason for this unequal distribution of resources is that at the end of a Parliament than at the beginning. Rather there are hardly any Conservative MPs in the north-east than their taking to the airwaves to produce ideas to and the north-west? tackle the country’s growing trade deficit, or our deep problems with productivity, the principal topic of debate Simon Danczuk: I appreciate the intervention. The among Conservative Ministers is the surfeit of Etonians reality is that the Government are writing off the north around the Cabinet table. Nothing demonstrates how of England, because they know they will not have any out of touch and ill-equipped they are to comprehend, success there in the forthcoming general election. much less end, the historic cost of living crisis that has enveloped the country. We should make no mistake: this Neil Parish rose— was a Budget by the few, of the few, and for the few. Like a stage magician asking his audience to suspend Simon Danczuk: Let me make a little progress. Out of their disbelief at his latest rope trick, the Chancellor the 25 worst performing retail centres in the country, attempted to persuade the country that the money that 21 are in the north. Those are businesses desperately in has disappeared from people’s bank accounts and pockets need of help from the Government, but they are not over the past four years was all an illusion, and it is still getting it. The Chancellor did not even mention business there after all. The partial use of information cannot rates in his Budget, except in relation to enterprise conceal the real-life experiences of millions of ordinary zones. The Government collect £26 billion in business people across the country. In my constituency, the median rates, and nearly every business in the constituencies of wage fell in real terms by 5% in the year to last April, Government Members raise them as an issue and yet and median incomes across the United Kingdom will the Chancellor could not be bothered to mention them. not reach pre-crisis levels until 2018, according to the The impact of those rates on businesses in the north Resolution Foundation. of England is even bigger. The simple truth is that the Chancellor has not got the will to reform business Neil Parish: It is the hon. Gentleman who is under an rates because he knows that powerful interests in the illusion, because he does not seem to remember the south will lose out. Instead, what we get are quick fixes, £150 billion deficit that we have managed to halve. Is it as my hon. Friend the Member for Chesterfield (Toby morally right that our children and grandchildren should Perkins) pointed out, and some tinkering around the labour under more and more debt? Do we not have to edges. That is typical of the Government’s approach to deal with that, as this Government have done? 879 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 880 Situation Situation Mr Bain: I am grateful for the hon. Gentleman’s next five years. Our export share is to fall in each intervention, but I recall—it clearly was not an illusion—the successive year to 2018. Despite the Chancellor’s welcome promises made by the Chancellor and the Prime Minister doubling of the investment allowance today, the OBR that the deficit would be cleared under their successful has said that that will not raise levels of investment in economic plan in five years of this Parliament. The the economy and will have a negligible impact on growth. Chancellor told us today that we had to wait an extra It is a damning verdict on the entirety of the Chancellor’s four years to achieve that. The illusion is that the Budget. Chancellor and the Prime Minister should ever think The Budget should have begun to meet the challenge that they could clear the deficit, given the fiscal policies of the changes we need to see in the banks to make that they have followed since 2010 and all the harm that them serve society, not the other way around—a challenge that has caused to living standards. left unmet by the Chancellor today. It contains no plans According to OBR forecasts in June 2010, we should to create a further two challenger banks to break the have had growth of 9.1% between then and the end of monopoly of existing players in the retail banking sector; last year, but we have seen less than half of that—a no intention to create a proper infrastructure bank to paltry 3.8%. The Budget, like its four predecessors, has boost finance to businesses engaged in large capital failed properly to address the key factors driving the investment projects; and no plans to create a system of longest slump in real wages since the 1870s. First, there regional lending banks to supply credit on a long-term has been a failure by the banking system to provide basis to viable small companies in the way that the liquidity to businesses on the scale required to boost Sparkassen have done to great effect, in good times and growth in the real economy. Secondly, there has been in bad, in the post-war era in Germany. extraordinarily weak business investment by the standards Today’s Budget fails the test of fairness on many of previous recoveries. Thirdly, there has been poor counts. We know that one of the biggest causes of the export performance, with continuing balance of payments rise in family incomes over the past four decades has deficits, despite sterling having devalued by a quarter been the rising employment rate among women. Key to since 2008. Fourthly, there has been declining productivity that is increasing the supply of affordable child care. in seven of the past nine quarters, and fifthly, connected The Budget does nothing to increase the supply of child to that, there has been a surge in under-employment, care places. According to the Family and Childcare affecting more than 1 million people, who cannot get Trust, the costs of a nursery place for 25 hours a week the hours at work they need to compensate for the for a child under the age of two has risen in Scotland by collapse in wages in real terms. 26% since 2010, and for a child over the age of two it The Budget should have begun the work of shaping has risen by 31%. Where were the policies today to an economy in which we permanently earn our way to increase the supply of child care places? They were higher living standards. Instead, ordinary people are entirely absent from the Chancellor’s speech. Most of forced to dip deeper into their savings to pay the bills, or the benefits of the tax relief he proposed will go to depend on house price inflation, which is set to rise to couples in the top half of the income scale, while 9% by next year, to fuel rises in consumer spending. families with average incomes, such as those in my constituency, will get less than £10 extra a week. Barriers Alison Seabeck (Plymouth, Moor View) (Lab): I apologise to work will remain for many women, and the long-term for arriving rather late for this debate. Does my hon. potential for economic growth and higher living standards Friend share my concern that the figures used by the will be left unrealised by the Budget. Chancellor to highlight what he described as a narrowing The Budget also fails the tests of increasing supply in of inequalities were based around 2011, before all these new housing and beginning the task of rebalancing our dramatic changes, particularly to people’s benefits, had jobs market by creating new construction jobs to replace been made? I think that “disingenuous” is a permitted the 214,000 that have been lost during the downturn. It parliamentary word, so does he agree that that was fails the test of justice for our young people by not disingenuous? having a jobs guarantee to remove the scourge of long-term unemployment. I met a young constituent in Stobhill in my constituency last Saturday night. His whole family— Mr Bain: My hon. Friend makes an important point, parents and grandparents—told me of the hurt they felt because there is no data available to the Government about his 18-month search for a job, which has been in post-2012. To argue that the policies that they have vain. It is a moral scourge that affects not only the followed over the whole four years have reduced inequality young person involved, but their family and the wider is not a fair comparison for the Chancellor to make. community. In my constituency there are 179 other Last year Britain had the fifth lowest level of investment young people like him, and there are tens of thousands as a proportion of GDP anywhere in the EU. Between more across the country. The Budget fails to improve 2010 and 2012, business investment was a meagre work incentives for the lowest paid by reintroducing a 3.7%, compared with the nearly 20% forecast by the 10p starting rate of tax. It fails to reveal how the OBR in June 2010. While investment lags at nearly a Chancellor will make good his promise to reach a fifth below pre-crisis levels, by contrast, surpluses minimum wage of £7 an hour for the working poor by accumulated by large corporations are up by a staggering next October. 7% over that period. The Government have failed to get In conclusion, this should have been a Budget that investment into the real economy to promote the kinds reduced inequality, invested in new child care places, of jobs that are needed to increase living standards. invested in science and innovation, dealt with our rising It is also worth touching on the OBR’s verdict at this skills gap and reshaped our jobs market. It is clear that stage in the debate. The Chancellor said that the Budget if Britain wants such a Budget, it cannot come from this would rebalance the economy, but the OBR says that coalition; it can come only from a change of Government, net trade will contribute nothing to growth over the which is long overdue and set for next May. 881 Budget Resolutions and Economic 19 MARCH 2014 Budget Resolutions and Economic 882 Situation Situation 6.49 pm What are we doing for the 2.3 million unemployed people? There are still 700,000 more people unemployed Sheila Gilmore (Edinburgh East) (Lab): In June 2010, than before the recession. Where are the measures to get the Chancellor led his band of merry men, straw men those people into work and to help the young people and tin men on the yellow brick road towards his about whom my hon. Friend the Member for Rotherham emerald city: the elimination of the deficit by 2015, the (Sarah Champion) spoke so eloquently? There are very cutting of public sector net borrowing to £60 billion in few such measures. Talking about percentages going up this financial year—in fact, it will be £108 billion—and and down as if we have solved the problem is no answer growth of about 2.5% every year during this Parliament. to people struggling on very low incomes who, in many The trouble was that he fell off his yellow brick road areas, cannot find jobs no matter how hard they try. fairly quickly and started wandering around in the wilderness of low growth and higher borrowing. Suddenly, On the child care proposals, at least one Government after four years, he seems to have found himself back on Member made a lot of the fact that child care costs for his road, albeit not as far down it as he expected. Like those on universal credit are now to be met by up to all expeditionary leaders, he is quick to tell us that he 85%. We have now had, or will have had, at least five always knew where he was, and where he was going, and years of this Government cutting help with child care that it was all part of his long-term plan, despite the costs from 80% to 70% for people on tax credits—the fact that he has not gone as far as he expected. predecessor of universal credit. So for each of these five years, those people will have found things much more Does all that matter? It does, for a number of reasons. difficult. It is not clear when families in this situation We are being asked to believe that someone who gave us will even be on universal credit, given how that is going that fantasy journey can still give us something credible. at the moment. Will this provision start when the tax It also matters very much to the people who had to relief starts, or will it start only when these families accept the austerity measures that we were told were finally get on to universal credit, if that happens? We essential to get us down the road as quickly as possible. have not been told. People have suffered, and to find out four years on that Moreover, the proposal is to be paid for not by we have not actually made much progress is bitter gall people who are better-off but by another group of for many. people on universal credit. We do not know which What about the people left behind? The cost of living group of people because we have not yet been told; crisis is real. People’s real earnings have fallen. All the apparently, we will know in the autumn. The change Treasury and Institute for Fiscal Studies figures show, will be financed entirely out of the universal credit slightly differently, that the people who have lost out budget, so some families with children on universal most are those at the bottom and the top of the earnings credit will get a little bit more, but somebody else is scale. However, for someone to lose 5% when they are going to get a certain amount less. earning £3,000 or £4,000 a week is very different from We always make choices in policies, and that is why losing 5% when earnings are £150 or £200 a week. The debates about matters such as raising the tax threshold impact on everyday life in the latter case is far greater, are exceptionally important for all of us. The 5 million because the issue is not about having to cut out a few people who are already below the tax threshold will get little extra luxuries—perhaps not go out for a meal as nothing out of this move. Some 10% of the total cost, often as one might otherwise have done—but about which has already been about £10 billion, goes towards basic foodstuffs, heating the house and buying clothes lifting people out of tax; 15% of it goes to people on for the children. It is not good enough to say that the median earnings of up to £26,000; and three quarters of situation is all right because the people at the very top it goes to people earning above the median. That choice have also seen an income drop, which makes it fair; in has been made, but it could have been made differently. the real world, that is not fair. The money could have been used, and could still be The other group that the Budget has rather lost sight used, to help people on lower earnings. If we want to of is the unemployed. People often say that unemployment help low-earning families, there are number of other has dropped by such and such a percentage, but the measures that we might want to use, but we are not number is still very high. In April to June 2010, 2.46 million using them. This is a choice that the Government are people were unemployed; according to today’s figures, making. Constantly portraying it as something that is the number is 2.33 million. I make that only 130,000 there only to help low-earning families does a disservice fewer than in 2010. Unemployment, of course, went up to those families. They know the situation; they know between 2010 and now and has come down again, and that they do indeed have a cost of living crisis that is not that doubtless explains some of the percentage drops being resolved by today’s Budget. that people are talking about. However, 130,000 fewer Ordered, That the debate be now adjourned.— unemployed people, although better than before, is (Mr Gyimah.) quite marginal. Debate to be resumed tomorrow. 883 19 MARCH 2014 Health Care (Gloucestershire) 884

Health Care (Gloucestershire) and that Motion made, and Question proposed, That this House “progress to date has suffered from a lack of trust from the do now adjourn.—(Mr Gyimah.) public”. The IRP goes on to recommend that 6.57 pm “a new approach to pubic engagement and involvement is required that demonstrates mutual co-operation and ensures that the Chris Skidmore (Kingswood) (Con): My hon. Friend public can have confidence in a quality service”. the Member for Filton and Bradley Stoke (Jack Lopresti) and I have been calling for this debate for some time, so Importantly, the IRP also notes that we are grateful for the opportunity to discuss health “concerns remain about access to outpatients and diagnostics, care provision in south Gloucestershire. capacity for rehabilitation services particularly in light of housing developments, and the absence of external clinical assurance”. In 70 days’ time, the accident and emergency department at Frenchay hospital in south Gloucestershire will close The IRP has finally put on record what local people and its doors. The decision on this is not recent, as it was groups such as the Save Frenchay Hospital group have taken in 2005 under the Labour Government, who then long been saying. North Bristol NHS Trust and health refused to allow it to be referred to the independent care bosses must now listen to them, and to the IRP in reconfiguration panel, despite a 50,000-signature petition the light of its damning conclusions. from local people. The decision to close the A and E I am concerned however, that history is about to was also voted through locally by Labour councillors repeat itself at nearby Cossham hospital. As a member against Conservative opposition. When my hon. Friend of the league of friends at Cossham hospital, and and I were elected to this place in 2010, we called a someone who volunteers at the café there—I hope that debate on the future of Frenchay hospital in which it that will suffice as a declaration of interest—I know at was confirmed that contracts had already been signed first hand how cherished Cossham hospital is within the under the Labour Government to close Frenchay’s A Kingswood community.In 2004, the hospital was threatened and E, making the decision irreversible. The downgrading with closure. Then—a story all too familiar—the health of Frenchay will forever be Labour’s legacy to the care bosses said that they knew best and that there were people of south Gloucestershire. My hon. Friend will strong clinical reasons for shutting the hospital, yet they speak later about the hospital and the continuing underestimated the determination and resolve of the uncertainty over the health care provision that will be Save Cossham Hospital campaign group, which mounted based there. a remarkable cross-party campaign to save the hospital For the first time, this Government allowed South from closure. Gloucestershire council’s health scrutiny panel to refer In the end, the decision to close Cossham was reversed, recent decisions by health care managers temporarily to and the hospital underwent a £19 million refurbishment. relocate beds to Southmead hospital while the final So far, this has included a new renal dialysis unit, an provision of beds at Frenchay was investigated by the X-ray and scanning department, physiotherapy and independent reconfiguration panel—something that the out-patient appointments, and Bristol’s first free-standing, previous Government resolutely refused to do. As local midwife-led birth centre, which has already delivered MPs, we submitted our own statements in support of hundreds of babies. But the minor injuries unit at Frenchay to the IRP along with local campaigners, and Cossham hospital, which was promised as part of the they are listed in the report’s appendix, yet we were Bristol health services plan, and re-confirmed by the surprised to see that no statements of support were 2009 business plan for the hospital—signed and sealed, made by the local Labour party or by its candidates. as it were—has not been delivered. Instead, the The publication of the IRP report on Frenchay this commissioning group is now considering installing a week highlights— rapid assessment centre for the elderly in its place. Obviously we must consider an ageing population, but 7pm in this particular case we should be considering the Motion lapsed (Standing Order No. 9 (3)). needs of the entire health care community in south Gloucestershire. Motion made, and Question proposed, That this House do now adjourn.—(Mr Gyimah.) As the local MP for Kingswood, I feel that not to have a minor injuries unit for Cossham is unacceptable. Chris Skidmore: The publication of the IRP report With FrenchayA&Eclosing in just 70 days, if local on Frenchay this week highlights for the first time real people are in need of treatment for an injury, they will concerns about the reconfiguration of health care provision have to travel 11 miles to Yate, or have to travel across in south Gloucestershire. These concerns are so damning Bristol to Southmead hospital or to the Bristol royal that it is right that we as local MPs raise them now on infirmary. As many local people know, public transport the Floor of the House. The IRP rightly observed not to Yate and Southmead is woeful, with the bus often only that health care provision had been subject to taking several hours. Without a minor injuries unit at continual alteration since 2005, but that Cossham, I remain concerned about health care provision for the east side of the Bristol region. I set out the case “there is considerable public disquiet with the process to date”, for a minor injuries unit in my letter to the Health that Secretary on 26 February, and I would welcome the “residents of the area should feel exasperated by the years of opportunity for the reformed Save Cossham Hospital delay”, group to meet the Minister to present the case in detail. that There is a clear and present need for a minor injuries “the overall process to date has shown a marked lack of empathy unit at Cossham, and a clear and present danger to our for patients and the public who have a right to expect better”, local community if it is not delivered. 885 Health Care (Gloucestershire)19 MARCH 2014 Health Care (Gloucestershire) 886

I cannot impress enough on the Minister that I believe We were told that the community hospital at Frenchay that, just as in the case of Frenchay hospital, and in the would have step-down and step-up services. The step-down light of the highly critical IRP report on its changing service would be for patients who received surgery at the services, the ability of health care bosses continually to new Southmead hospital and were moved to their local chop and change health care services at Cossham and in community hospital prior to going home. That was in the south Gloucestershire area without regard to public order to reduce the number of beds required at Southmead opinion and confidence is extremely damaging. Above and to enable family and friends to visit patients more all, it raises questions about why local people, who pay easily during their convalescence. Step-up patients are for their health service through their own taxes, should those who require hospitalisation for more minor matters feel, as the IRP report states, “exasperated” by the but who do not require the full services of an acute uncertainty surrounding the health care for which they hospital. The bed numbers for the new Southmead have paid. hospital were planned on the basis of community hospitals The people of Kingswood and south Gloucestershire, such as Frenchay being available for more minor matters. as the IRP has firmly stated, “deserve better”. We also In total, it was recommended that there would be deserve better when it comes to the provision of a 68 beds at Frenchay. There was also going to be a range minor injuries unit at Cossham. We were promised a of out-patient services and diagnostics and an enhanced minor injuries unit, we want a minor injuries unit, and community health service in order for care to be provided for the sake of the health and safety of local people in at home. On top of that, there was going to be space left my community, we need a minor injuries unit at Cossham on the site for a doctors’ surgery, extra care housing and hospital. possibly even a nursing home. That was fine: it was not what local people wanted, 7.6 pm but at least it was a clear plan with clear objectives. However, in July 2012 the primary care trust and the Jack Lopresti (Filton and Bradley Stoke) (Con): First, clinical commissioning group began to change their I pay tribute to my hon. Friend the Member for Kingswood minds, but they did not fully update the South (Chris Skidmore) and congratulate him on securing this Gloucestershire council public health and health scrutiny debate, and thank him for working closely with me on committee until April 2013. At this point, they also this matter, which is extremely important to our constituents. confirmed that a stocktake was being taken of out-patient My remarks will focus on my local hospital, Frenchay. and diagnostic capacity at Frenchay. In September 2013, Before I begin, I would like to declare a personal the council’s health committee received confirmation interest of sorts. I have had a lot of serious health issues that it proposed no longer to have out-patients and over the past year and have spent a lot of time in and diagnostics on the Frenchay site, while the CCG met out of Frenchay hospital. I want to place on the record and decided in August that, for the interim, rehabilitation my huge thanks and appreciation to all the doctors, beds at Frenchay would be moved to Southmead for nurses and staff who looked after me and made me two years. better while I was there. [HON.MEMBERS: “Hear, hear.”] Conservative councillors on the health committee Thank you. I am pleased to say that I have now been came up with a plan, and identified funds in the council’s given the all-clear and can get on with the rest my life. I budget to keep the in-patient rehabilitation beds at do not think it is an exaggeration to say that I probably Frenchay for two years until the new Frenchay health would not be here without all the care and treatment I and social care centre opens in 2016. They proposed the have had over the past year, for which I will always be plans to the health committee in September last year, grateful. but to my utter amazement, Liberal and Labour councillors Sadly, health care provision at Frenchay hospital is to on the committee joined together to vote against the be fundamentally reduced in May, when the main part plan to keep Frenchay fully open. I felt that that was of hospital will close until 2016. Its out-patient and purely and cynically party political, and not at all in the diagnostic services, and probably beds, will be relocated. interests of the people of South Gloucestershire. The Independent Reconfiguration Panel has given advice In the end, all the council’s health committee as a to the Secretary of State and I fully understand that it whole could agree was to ask the Secretary of State for would be unprecedented for him not to accept it. I am Health to refer the decision to the IRP. My right hon. of course disappointed with the IRP’s decision, but it Friend made the referral which, I must say, is more than has made some extremely important points. the previous Government did; had they done so, we I am particularly concerned about which health services might not be in quite this situation now. My constituent will be provided when and if Frenchay hospital fully Barbara Harris wrote to me this morning that the IRP reopens in 2016. The future health care provision in has made “scathing comments” on the way in which south Gloucestershire and the future of Frenchay hospital local health care providers have handled the issue of have gone through a terribly long, drawn-out process. Frenchay hospital. As my hon. Friend the Member for There have been about 10 years of discussion and it is Kingswood has said, the IRP has said that it is still not clear what will happen in the future. understandable that residents The previous Labour Government made the changes “should feel exasperated by the years of delay” in 2005, when a vision was set out for health services in and by the “amendments to plans”. The IRP has concluded the Greater Bristol area, which included plans for a that the whole process shows a “marked lack of empathy” community hospital at Frenchay. Five years later, in by local health care providers 2010, the “emerging themes” proposals for health care “for patients and public who have the right to expect better”. in the area again promised a community hospital at The North Bristol NHS Trust should now publish in Frenchay and we were told that the acute care services full its findings on population growth and its stocktake would move to the new acute hospital at Southmead. of the diagnostic and out-patient capacity in south 887 Health Care (Gloucestershire)19 MARCH 2014 Health Care (Gloucestershire) 888

[Jack Lopresti] this spring. The West Gate centre in Yate and Cossham hospital will continue to play a role by providing Gloucestershire, as the IRP suggested. That should be medical and surgical out-patient services, hosting therapy the local health care provider’s first step in fulfilling the out-patient services and providing X-ray, ultrasound IRP’s other recommendation on how hard it must work and echocardiogram services. to regain the public’s trust. I fully agree with the IRP’s I will turn first to the proposals for Frenchay. As my point that patient and public engagement must now be hon. Friends are aware, the 2010 proposals called for a a core element in the design and delivery of how diagnostic new community hospital at the Frenchay site to provide and out-patient services are delivered in south up to 68 in-patient rehabilitation beds, out-patient therapy Gloucestershire. I have said for a long time that health and diagnostic services. However, a 2012 review by the care providers should not feel that they can go back on primary care trust concluded that the proposals for their word as and when they wish. out-patient and diagnostic services were unaffordable South Gloucestershire council, our local residents and inflexible, and duplicated other services. and I need clarity about the plans for health care I understand that that was disappointing, but CCGs services in our area. Ten years down the line, my constituents are charged with using their resources in the most deserve more than the ongoing confusion, broken promises effective way for the benefit of all residents. I am and moved goalposts. I can understand why many of assured that the local NHS is committed to finding a my constituents are not convinced that any health care long-term solution for the provision of in-patient beds provision, except perhaps a care home, will be left at at Frenchay. Although the CCG is commissioning 68 Frenchay. I want a guarantee that health services are beds at Southmead for May 2014, that is a temporary going to be provided at the Frenchay site in future. My measure while the Frenchay site is being improved to constituents and I also want to know and to be reassured accommodate them after April 2016. about the basis on which services will be provided. I will turn to the questions about the recent council referrals. My hon. Friend the Member for Filton and 7.12 pm Bradley Stoke said that my right hon. Friend the Secretary The Parliamentary Under-Secretary of State for Health of State had seized the challenge to refer the matter, and (Jane Ellison): I congratulate my hon. Friend the Member he mentioned some of the comments of the Independent for Kingswood (Chris Skidmore) on securing this debate, Reconfiguration Panel. As he said, South Gloucestershire as well as my hon. Friend the Member for Filton and council’s public health and health scrutiny committee Bradley Stoke (Jack Lopresti), on his speech. It is good has the power to examine the proposals for service that all three of South Gloucestershire’s MPs are in the change and refer them to the Secretary of State if it Chamber, including the hon. Member for Thornbury considers that there are grounds to do so. The committee and Yate (Steve Webb), who I know is listening to the made two referrals to the Secretary of State. The first, debate with great interest, because it also affects his which was made in October 2013, concerned the temporary constituents. provision of rehabilitation beds at Southmead hospital. Before I respond to some of the points that have been The Secretary of State asked the IRP for initial advice made, may I, as I always like to do, take the opportunity on that referral on 2 November 2013. to highlight the wonderful work carried out every day Before that advice was completed, a second referral by those who work in the NHS, particularly those in my was received in December 2013 regarding the wider set hon. Friends’ constituencies? Carrying on great work of proposals under the plan, including the decision no and serving the public against a backdrop of uncertainty, longer to provide out-patient, therapy and diagnostic as we have heard about this evening, is sometimes quite services at the Frenchay site. Specifically, the committee difficult, but I pay tribute to the staff there and right cited concerns that the new proposals for diagnostics across the country. and out-patient services would not be as convenient for As my hon. Friend the Member for Kingswood will patients as the option of maintaining three sites at be aware, the South Gloucestershire CCG is leading Frenchay, Yate and Cossham. Additionally, the committee proposals for the future provision of health care services raised concerns about rehabilitation capacity in the provided in the area, under the auspices of the Bristol light of population growth and financial sustainability. health services plan. I hope that he will forgive me if, for In January 2014, the Secretary of State asked the IRP the benefit of the House, I put on the record some of for further advice to take into account both referrals. the twists and turns of the past 10 years. I recognise the That has now been received, as we have heard. After frustration that has been expressed today. I felt some careful consideration, the panel does not believe that sense of it just on being briefed about the situation, so I the referral warrants a full review. Acting on the advice can understand how it must feel from a local MP’s point of the IRP, the Secretary of State has decided that there of view. should be no barrier to the local NHS continuing the The 10-year strategic plan, which began in September implementation of the proposals in their current state. 2004 with an extensive public consultation, aims to The Secretary of State wrote to South Gloucestershire improve the quality of care provided in the region; to council on Monday to confirm that he accepts the IRP’s move services closer to people’s homes and reduce advice and to agree that the implementation programme travelling time for patients and carers; to bring together should be allowed to proceed. Both sets of initial advice specialist hospital services; and to improve the quality are available on the IRP’s website. of old hospital buildings. Under the plans, Southmead The panel acknowledged, and I acknowledge from was selected as the location for a new acute hospital to the Dispatch Box tonight, that the debate about the replace acute services at the existing hospital in Southmead provision of health services in the area has been long and the Frenchay hospital in south Gloucestershire. and difficult. Delays, changes, pauses and amendments The new acute hospital at Southmead is due to open to the plans have all played a role, and the progress to 889 Health Care (Gloucestershire)19 MARCH 2014 Health Care (Gloucestershire) 890 date has suffered from a lack of trust and from poor take account of local evidence and the themes emerging communication. As I have said, I can only imagine the from the national review. It is clear that many local frustration that is felt by the local community at seeing people want to see the MIU that was originally planned, that stop-start approach to commissioning and the which has been so ably argued for this evening, open as reconfiguration of its local health services. My hon. soon as possible and are frustrated about the decision Friends are right to raise these issues on the Floor of to revisit previously agreed plans. For urgent care as for the House. Their constituents are fortunate that they all services, the CCG’s priority has to be to ensure that have done so with such tenacity. the best possible combination of services is provided to I will turn briefly to Cossham. As my hon. Friend the meet the needs of the whole population, and that those Member for Kingswood will be aware, the 2009 business services are sustainable and excellent for the long term. case for Cossham hospital highlighted the fact that it Achieving the right mix of services at Cossham will be serves a fast-growing population in the Kingswood an important part of the solution. catchment that has more older people and people suffering My hon. Friends the Members for Kingswood and from long-term health conditions than other parts of for Filton and Bradley Stoke have made powerful cases. south Gloucestershire. I understand that the growth in Although the task of getting the right mix of local the number of older people has put increased pressure health services is ultimately a decision for local clinicians, on local urgent and emergency care services, posing a I would of course be happy to meet them to discuss the significant challenge for commissioners. matter and hear their case, so that I can ensure that I My hon. Friends will be aware that in 2013, NHS have the clearest possible understanding of the issues England commissioned Sir Bruce Keogh to undertake a that affect their area. comprehensive review of how urgent and emergency Once again, I pay tribute to my hon. Friends for their care services are organised and provided in England. work on behalf of their constituents on the proposals. The report from the first phase of the review was They have ensured that they have explored every possibility published in November 2013. I think it is fair to say that to ensure that they are part of an engaged process that it has transformed our national debate about the future will ultimately deliver what we all want for our of such services, and that all parts of the NHS in constituents—excellent local health care. I congratulate England are having to judge themselves against Sir them on that and look forward to continuing to engage Bruce’s recommendations and his road map for future with them on the issue. excellence in urgent and emergency care. The subsequent phases of that review could have implications for how Question put and agreed to. those services are organised for the benefit of local communities in future. In parallel with that, the CCG decided to revisit the 7.21 pm plans for a minor injuries unit at Cossham, in order to House adjourned.

301WH 19 MARCH 2014 Metropolitan Police 302WH

early hours of Saturday 2 June 2007 that they were on Westminster Hall gardening leave. About five days later, all the officers were recalled to Paddington Green police station. Mark Wednesday 19 March 2014 Jones and Bill Wilson were suspended immediately and escorted from the station. Neil Brown, Steven White, Simon Prout and Giles Kitchener were dispersed and [DR WILLIAM MCCREA in the Chair] placed in separate teams across the MPS. In about September 2007, the six TSG officers— Metropolitan Police regardless of their employment status at any particular Motion made, and Question proposed, That the sitting time, I will refer to them as TSG officers—became be now adjourned.—(Mr Gyimah.) aware that a civil claim against the Metropolitan Police Commissioner had been made by Basil Khan, Ahmed 9.30 am Hegazy and Omar Mohidin for false imprisonment, assault and battery, damages for anxiety, distress, Tessa Munt (Wells) (LD): It is a pleasure to speak inconvenience, stress, pain, humiliation, discomfort and under your chairmanship, Dr McCrea. loss of liberty, breach of the Equality Act 2006, and I beg hon. Members’ patience while I set out what I breach of the Human Rights Act 1998. want to talk about, which is of a complicated nature. It In October 2008, the Crown Prosecution Service concerns six territorial support group officers who were authorised charges against all the officers. Neil Brown based at Paddington Green police station in June 2007: was suspended and Steven White, Simon Prout and Police Constable Mark Jones, who was my constituent; Giles Kitchener were put on restricted duties. Mark PC Neil Brown, whose MP is my right hon. Friend the Jones was charged with racially aggravated common Member for Bermondsey and Old Southwark (Simon assault and a racially aggravated section 4 public order Hughes); PC Steven White, whose MP is the hon. offence, as well as two charges of misconduct in public Member for Spelthorne (Kwasi Kwarteng); PC Simon office; Neil Brown, having been suspended, was charged Prout, whose MP is the hon. Member for Watford with a racially aggravated section 4 public order offence, (Richard Harrington); PC Giles Kitchener, whose MP using threatening words and behaviour, and two charges is the right hon. Member for Maidenhead (Mrs May); of misconduct in public office; and Bill Wilson, Steven and Police Sergeant William—known as Bill—Wilson. White, Simon Prout and Giles Kitchener were charged My constituent, Mark Jones, first contacted me in with a single count of misconduct in public office. All April 2012. He told me what had happened to him and those charges were hugely damaging to the officers’ his colleagues. I consider every case on the basis of careers and reputations. whether or not the person has been treated fairly, so A plea and case-management hearing was set for I decided that the only thing to do was to take this 6 April 2009, and a full criminal trial was scheduled for matter up. 5 October 2009 at Kingston-upon-Thames Crown court. This whole sorry saga commenced on Friday 1 June For 28 months, these officers—and their families—lived 2007, following the arrest of two Arab youths, Basil with the knowledge that if they, as police officers, were Khan and Ahmed Hegazy, and the apprehension and found guilty of racist crimes, they would face prison eventual release of a third youth, Omar Mohidin, by sentences of three years, minimum. In November 2009, seven Metropolitan Police Service territorial support after a four-week trial, the six TSG officers were all group officers who were in a carrier on the Edgware unanimously acquitted of all charges at Kingston Crown road in London W2. I shall use the abbreviations MPS court. and TSG from now on. I should like to return to some of the events that A complaint was made by the one black officer on occurred during the 28 months between the charges the carrier, PC Amechi Onwugbonu, about the treatment being laid and the criminal trial taking place. The of the youths by the six white police officers. PC Metropolitan Police Service concealed and withheld Onwugbonu had challenged the six officers about their material and substantial closed circuit television evidence behaviour on many previous occasions. By the nature of from the officers and their lawyers. There were numerous the work that these officers did, sometimes some force formal requests from solicitors and orders from the was necessarily used. When he challenged the officers, court to reveal any CCTV evidence held by the police. they clearly advised him that if he had a problem with The defence team was checking a dusty property store the way that they had behaved, with which they saw no log two days before the criminal trial began. The six problem, he should take his allegations to a senior TSG officers discovered that directorate of professional officer. It is important to note that the youths who were standards officers—the police who investigate the police— arrested did not make any complaint about their treatment had seized vital CCTV tapes 28 months earlier, just two until the following day, and only after they had been months after the incident, and had hidden the evidence. made aware of the details of PC Onwugbonu’s complaint Had the TSG officers not found this log and presented via the directorate of professional standards. it to the Crown Prosecution Service, the DPS officers During the evening of 1 June, the six officers were would not have admitted their seizure of the CCTV made aware that a serious complaint had been made tapes and would never have handed them over. about their conduct, but they were not given details. By It was not until the night before the Crown court that time, the six officers had completed their handover trial that the DPS handed over 13 CCTV tapes, which of the youths and their case notes, and the officers had held 2,000 hours’ worth of footage, that it had seized been examined by an independent forensic medical about two before. This evidence was critical in proving examiner, who checked them for injuries, primarily on the officers’ innocence. The CCTV footage at Paddington their knuckles. The six officers were informed in the Green police station originated from 29 different 303WH Metropolitan Police19 MARCH 2014 Metropolitan Police 304WH

[Tessa Munt] custody and spoke to their solicitor at approximately midnight. That call was never logged. DI Belej had cameras that covered the relevant time, from 5.30 pm on received PC Onwugbonu’s allegations by that time. The 1 June 2007 through to 12 noon or thereabouts on the six TSG officers only discovered that that highly suspicious following day. call had taken place because of the CCTV. The youths’ The DPS officers had seized and viewed those 13 CCTV solicitor was cross-examined at the Crown court trial tapes, as proved by the entry in the DPS log. It is and told the court that DI Belej believed that the log was disclosed by mistake. Additionally, “told me what the case was about”. there was a CCTV tape from the Boots chemist on After the call, the solicitor was seen to return to Mr Hegazy Edgware road—the arrests took place directly outside. and spend 90 minutes in consultation. It was after that The DPS officers seized and viewed that tape. The entry consultation that the youths’ allegations were first raised. in the DPS log states: “viewed, not helpful”. That CCTV tape has not been provided, despite numerous I now return to the general course of events. In early requests, and those present at Kingston Crown court 2010, Bill Wilson retired from the MPS. It is standard were not told of its existence. The MPS has refused to practice for the police to investigate after any officer has provide any account of the tape’s whereabouts. been involved in a criminal trial. That investigation involved the DPS. Following the DPS investigation, the The MPS compounded the problems by producing six officers were informed in March 2010 that no disciplinary for the court a false and grossly misleading engineer’s action would be taken against them. In early 2010, report, which stated that the CCTV cameras were not however, the six TSG officers made a formal complaint working and were broken on the evening of 1 June 2007. to the MPS about the conduct of the investigation and In fact, the engineer concerned was reporting on a PC Onwugbonu’s statements, which had been disproven completely different system, rather than the system during the trial. Simultaneously, the friends and families relating to the officers’ case. The MPS knew that its of the six TSG officers complained to the Independent so-called evidence was false, as officers had already Police Complaints Commission, as is their right. viewed the relevant CCTV footage at that point. The officers were told that there would be an internal PC Onwugbonu’s initial allegations were numerous review of the case. In March 2010, Mick Johnson, the and very serious. He told the court that he had not chief superintendent of the TSG, told the six officers visited the cells of the two claimants, Khan and Hegazy. individually that they were being removed from the He was asked about that in court on two separate TSG and forcibly returned to front-line borough policing, occasions. He was then shown CCTV evidence that, of despite their skills and qualifications. The six TSG officers course, had only just been disclosed. The officers were appealed against that e decision to remove them. watching CCTV tapes at night, once the court case had Commander Bob Broadhurst, who headed territorial finished for the day; they were trying to catch up policing at the MPS, ruled that the officers were to be throughout the four weeks of the court trial. The evidence removed before the appeal was even heard, so that is shows him visiting the cells and photocopying custody what happened. records. Clearly, there is a data protection issue there, because custody records hold data about people being After Bill Wilson retired, the five remaining TSG held in the police station, including their address, phone officers invoked the “fairness at work” process and numbers and other personal information. completed the necessary paperwork. The officers filed their application with the employment tribunal on the PC Onwugbonu told the court that PC Mark Jones grounds of race discrimination in March 2010. Mark had been walking on Hegazy’s back, that he saw Neil Jones and Neil Brown went on sick leave from April Brown offering to fight Hegazy, and that Basil Khan 2010. To comply with the MPS employment dispute was beaten by Mark Jones in the carrier while it was in process, a fairness at work adviser-investigator—a senior the station yard. A specific allegation, later supported civilian member of staff who headed the “fairness at by Basil Khan, was made that Mark Jones had attacked work” department—was appointed. The first adviser- Basil Khan with investigator reported that the decision to remove the “in excess of 40 full blown punches and kicks”. officers from the TSG would stand but offered some Mark Jones is a muscular man, and one would expect recognition that the process had been handled poorly. Basil Khan to have been seriously injured; the only The TSG officers appealed on the basis that the finding injury Basil Khan had wasa4mmbruise behind his left was unsound because they had evidence that the decision ear, which may or may not have been a result of his to remove them from the TSG predated their appeal. arrest. It defies logic that those allegations were accepted A new adviser-investigator, Superintendent Victor without corroborating medical evidence. The CCTV Olisa, was appointed. In late 2010 he provided a draft of shows Mark Jones exiting the carrier and entering the his final report, which referred to the fact that he could police station, rather than remaining in the carrier and not rule out racism, but the final report did not contain beating Basil Khan. that reference. During the final meeting, he told Neil The MPS has chosen to rely on the youths’ complaints Brown, Simon Prout and Giles Kitchener that he had because they are similar to those made by PC Onwugbonu. had meetings a short while previously with his mentor, It should be noted, however, that the youths concerned Deputy Assistant Commissioner Mark Simmons, and made no complaints until at least six hours after arriving the directorate of legal services, during which he was in custody on 1 June 2007. Additionally, they were informed—and he was just passing on the information— asked about their welfare by a police doctor, two police that if the officers did not drop their employment sergeants, a police inspector and two independent charity tribunal proceedings, the MPS would look to join the lay visitors. The claimants made allegations only after defendants into the civil proceedings being taken by the Detective Inspector Belej from the DPS telephoned youths. This is known as making the officers part 305WH Metropolitan Police19 MARCH 2014 Metropolitan Police 306WH

20 defendants, which makes each individual liable for The MPS initially refused to hold a discipline board, his actions as a police officer while under the direction but MPS Commander Julian Bennett put pressure on of his employer, the MPS. Normally, a police officer the IPCC not to go ahead with the hearing and to allow acting within the remit of police duties would expect the DPS officers to plead guilty to misconduct only. He the commissioner to cover the liability for those actions. said that the view of the panel was that the events in It is effectively their insurance at work. I understand question were misconduct “at best”. If the hearing that this is the first time officers have been joined in as proceeded, he said that there might be a finding of no part 20 defendants. MPS officers will be required to misconduct at all. In March 2013, a disciplinary board defend their actions while on duty and under the direction scheduled to last two weeks was deemed to be over after of their superiors in court. Should that situation continue, two days. The IPCC, despite its statutory direction to there is probably a case for ensuring that every police hold the gross misconduct board, is powerless to insist officer in the UK is made aware that his or her actions that the board proceeds to hear the case. A disciplinary might need individual personal insurance cover. It also board can be organised and listed at the direction of the has implications for discipline. Police officers are required IPCC, but can be dismissed by the MPS at any stage. to carry out commands, not negotiate the risks of The IPCC directed the MPS to comply. Statute requires future court action as a result of any ordered action by the MPS to comply with IPCC directions, but that a superior officer. statute is powerless once the gross misconduct board What happened to the complaints of the friends and begins. In this case, Commander Julian Bennett allowed families of the TSG officers? Following the discovery the DPS officers to plead guilty to plain misconduct on the day before the criminal trial was due to start on 1 day two and passed down a written warning as a October 2009 that substantial evidence had been withheld sanction for hiding and denying the existence of 13 CCTV by the MPS for two years and four months, the families tapes and producing a false engineer’s report to the of all six TSG officers raised complaints about the Crown, the prosecution and the defence. The six TSG handling of the investigation by the DPS. Complaints officers’ solicitor, Lynne Burns, wrote to the Metropolitan were made that evidence had been withheld from the Police Service on 30 April 2013, claiming that the Crown Prosecution Service, the lawyers, the prosecution decision to allow the DPS officers to plead guilty to and the defence teams. Complaints were also made misconduct only was irrational and unfair. She stated: about the racially biased investigation by the DPS officers “Just to put this into context, the failure to disclose and in favour of the prosecution team and about the evidence knowing concealment of CCTV evidence does not represent one of PC Onwugbonu. The complaints were dealt with in or two requests but numerous letters where questions relating to two parts: the IPCC in Cardiff handled the discrete CCTV were ignored or answered falsely, Advocates Questionnaires, issue of failure to disclose CCTV evidence to the CPS Joint Requests for Disclosure, Orders of the court ordering and others, and the DPS handled its own internal disclosure all either ignored or responded to in a knowingly false investigation into the remainder of the complaints or misleading manner”. about the investigation, particularly, for example, the On the DPS investigation, the six TSG officers accused contamination of witness statements. in 2007 were investigated by three officers from the The terms of reference for the IPCC Cardiff investigation DPS. From that point onwards, the six officers were were that DPS officers had failed to review crucial subjected to a racially biased, dishonest investigation, CCTV evidence and had subsequently withheld a number involving blatant, deliberately withheld and concealed of CCTV tapes from the Crown court, the CPS and the material evidence, lies, cover-ups and falsified evidence defence and prosecution teams. The DPS officers involved submitted to the Crown court as the MPS attempted to were Detective Inspector Belej, Detective Sergeant McQueen secure a conviction against the officers at all costs, even and Detective Sergeant Fraser, who is now retired. The though the legitimate evidence did not support its case. IPCC specifically looked at whether the officers failed—and, In 2012, the DPS investigated the matter. Officers Detective if so, whether that failure was deliberate—to disclose Chief Inspector Neligan and Detective Sergeant Morley the internal CCTV evidence of the custody suite and returned a report that indicated that there was no case the external view and whether the prosecution and, for the officers—DI Belej and DS McQueen—to answer. subsequently, the defence counsel might have been misled The DPS report was appealed by the six TSG officers by any failure to include the evidence on the used and to the IPCC in Manchester. In May 2013, that appeal unused schedules. It also looked at who obtained the was upheld. The IPCC’s appeal report was damning CCTV evidence around the Paddington Green police and highly critical of how the DPS investigation had station and when, as well as the subsequent continuity been conducted. It held that, among many other points, of that evidence. It also looked at any policy decisions, the original investigation by the DPS officers was conducted lines of inquiry or communication on the recovery of in a biased manner in favour of the prosecution and in CCTV evidence and the review, use and disclosure of favour of one black police officer over six white police potential evidence. It considered and reported on whether officers, stating: any criminal or disciplinary offences were committed by “On balance the significant catalogue of errors made by the any police officer or member of the police staff involved DPS Officers shows a bias in the investigation often dismissing in the incident. evidence which would have supported the Defence”. In September 2011, the IPCC in Cardiff concluded The IPCC indicated that consideration must be given that the conduct of the DPS officers in this case gave to further disciplinary action against the DPS officers such serious cause for concern that and PC Onwugbuno, and that consideration must be “DI Belej and DS McQueen should both have a case to answer for given to potential criminal prosecutions. The IPCC Gross Misconduct in respect of their conduct set out in the Report”. held that the investigation showed bias against the six The IPCC has no remit to rule on the conduct of a TSG officers and that the black police officer’s failure retired officer. DS Fraser retired from the MPS during to tell the truth on 25 occasions at Kingston Crown the process and before the IPCC published its report. court could not be put down to “stress”, as accepted by 307WH Metropolitan Police19 MARCH 2014 Metropolitan Police 308WH

[Tessa Munt] DI Belej and DS McQueen had concealed and withheld over 2,000 hours of CCTV footage, a fact which was the original investigating officers. The IPCC referred established at the trial at Kingston Crown court and by the case back to the Metropolitan Police Service for two independent IPCC investigations. Furthermore, the re-investigation. officers had pleaded guilty at the misconduct hearing in I will now move on to the second investigation. The March 2013. Metropolitan Police Service referred the investigation False statement two reads: back to the same DPS officers—DCI Neligan and DS “PC Onwugbonu has, since the day in question, supported the Morley—who carried out the original, flawed investigation allegations made about officers by the claimant”— into DI Belej and DS McQueen, who were their own the claimant being the youths. That is untrue. The MPS DPS colleagues. The investigation is ongoing. It is worth heard PC Onwugbonu admitting that he had been noting that the DPS officers concerned have, as I understand mistaken or had lied on at least 25 occasions during his it, remained in operational posts. DI Belej is a supervising evidence to the Kingston Crown court trial, and his inspector in counter-terrorism and border control at evidence was totally discredited. Judge Southwell’s direction Heathrow, and DS McQueen remains in the DPS, to the jury before summing up said: investigating misconduct. “My direction is that you will have to be careful in examining The six TSG officers have been threatened on two PC Onwugbonu’s evidence, important as it plainly is to the issues occasions that they should withdraw their employment which you have to decide in the case of each of these five men, tribunal proceedings or face being joined into the civil before you declare yourself sure that he was honest and reliable in action. I have already mentioned one occasion, namely respect of what he said.” when Superintendent Victor Olisa passed on the message, There is therefore no justification for the MPS to make but in January 2011 the now-retired MPS Police Federation such a statement in its defence to the High Court. general secretary, Dave Bennett, passed on the same threat allegedly from the DPS commander Peter Spindler. The MPS also tampered with personnel or staff records to produce false records for the six TSG officers. In On the civil, or part 20 proceedings, when the six 2013, as part of disclosure in part 20 proceedings, it TSG officers did not withdraw their employment tribunal came to the six TSG officers’ attention that their staff proceedings against the MPS, the MPS joined in four of records had been tampered with. In March 2010, following the six TSG officers—Mark Jones, Neil Brown, Steve their acquittal by unanimous verdict at the trial at White and Bill Wilson—into civil proceedings brought Kingston Crown court, they were told that no internal against the commander of the MPS by Basil Khan, disciplinary sanctions or actions were to be brought Ahmed Hegazy and Omar Mahidin. Such a move might against any of them. They have discovered, some six suggest that the TSG officers were being victimised for years later, that a false account has been created for having the temerity to challenge the MPS’s decisions each of them on their personnel records, illustrating and to issue proceedings against it. The youths brought that a finding of guilt was made against each of them, their civil claim with the assistance of Bhatt Murphy, a that “words of advice” were given to each of them in firm of solicitors that specialises in actions against the 2009 and that the complaint was substantiated. Someone police. The youths submitted their claims in 2007 and within the MPS or the DPS has manufactured a totally all are funded by the taxpayer through legal aid. false set of personnel records for each of the officers. It The MPS has presented its civil defence so as to is deeply concerning that formal records have been justify joining the officers in part 20 proceedings. The tampered with just in order to support the MPS’s case. MPS has told the High Court that this civil case is highly The six TSG officers have tried to discover who was unusual, because, in the opinion of the six TSG officers, responsible, but the MPS alleges that it is unable to the black officer—PC Onwugbonu—contradicts the white find out. officers’ evidence. The MPS has effectively delegated responsibility for proving innocence a second time to Such are the extreme lengths that the MPS and the those six TSG officers—bearing in mind that they already DPS will go to demonstrate how tough and politically won their case in the Kingston Crown court—rather correct they are on alleged racism within the ranks that than acting on the court’s findings and defending them. they will accept the word of one black officer over six That was DAC Mark Simmons’s justification for his white officers and then conceal material evidence that decision to bring the officers in as part 20 defendants. contradicts the black officer. The officers strongly believe The MPS, through the director of legal services, has that this is a case of reverse race discrimination and suggested that it should not disclose the IPCC report, political correctness gone completely mad. To use layman’s which is highly critical of the original DPS investigation, terms, the DPS had tried to fit them up for crimes that to the youths in the civil proceedings. There is, however, they did not commit and knew that everything it had a legal obligation to comply with the disclosure rules massively undermined the prosecution case. The decisions and it must be of concern that the MPS has suggested by the IPCC in Cardiff and the IPCC in Manchester that such a crucial document should not be disclosed. should have triggered a response from the Metropolitan DAC Mark Simmons, who was commander of the Police Service to admit finally that their DPS officers DPS at the time, is the senior client and has instructed had acted in an inappropriate and racially biased manner. the MPS legal team to use statements to the High Court Finally, I want to touch on what the officers—and I, that they know to be incorrect. Two examples are as having got enraged about this situation—might want. follows. Statement one says: They want some sort of admission of wrongdoing, “The Defendants’ (the MPS’) DPS investigation was carried including an open acknowledgement of how the officers out appropriately and in good faith in the circumstances.” were treated, an acknowledgment that the investigation The MPS, and DAC Mark Simmons in particular—he and referral to Kingston Crown court was seriously was the DPS commander at the time—knew that the flawed and racially biased, and an acknowledgement DPS officers did not act appropriately or in good faith. that the three DPS officers—McQueen, Belej and Fraser— 309WH Metropolitan Police19 MARCH 2014 Metropolitan Police 310WH acted dishonestly in their handling of the investigation. 10.13 am They want an acceptance of blame that personnel records have been tampered with, an acknowledgement of further Mark Field (Cities of London and Westminster) (Con): victimisation and an apology for these actions. They I congratulate the hon. Member for Wells (Tessa Munt) want some sort of compensation and settlement of the on bringing up this difficult, complicated case; it is employment tribunal proceedings, which are still ongoing, greatly to her credit that she has done so. It would be for the loss of earnings, damage to reputation by substantive easy for all of us, in this age of political correctness and adverse press coverage, and damage to career and stress in the light of some of the allegations, to sweep it under since 2007—seven years ago. They want the MPS to the carpet. That is not to say that there are not fundamental, support its officers fully in the civil actions brought by general problems with the Metropolitan Police Service, Hegazy, Khan and Mohidin, and not to insist that they which I want to deal with more generally, having been a be separate defendants under part 20. In those proceedings, Member of Parliament in London for 13 years. It is they want the MPS to make the court aware of the perhaps ironic that the MPS has, with good cause, great serious independent rulings against the DPS officers sensitivity about race-related incidents—I shall talk a and PC Onwugbonu. That will help to create a level little about the Stephen Lawrence affair in a moment or playing field. two—but that in spite of that sensitivity it seems to be engulfed in controversies, such as the one that has been I have written to Commissioner Hogan-Howe. I had outlined in detail this morning. The hon. Lady described a reply from Commander Allan Gibson, which was an appalling state of affairs, and I hope that the Home pretty dismissive. I wrote again to Commander Gibson Office will pay considerable attention to what happened. and I do not think that anything is moving forward It would be an understatement to observe that the particularly. I know that one of my colleagues in the Metropolitan Police Service did not enjoy its happiest other place has raised the matter and his concerns. He decade or so in the noughties and beyond. It is still was assured that the whole business would be looked deeply damaged by revelations over the Stephen Lawrence into, but as of the end of January the investigation had case, which, distressingly, continue to this day. The not been carried out by a senior officer. organisation was of course brought into fresh disrepute The Metropolitan Police Service must have spent following the controversial shooting of Jean Charles de between £2 million and £3 million defending itself in Menezes in Stockwell in July 2005, and the manslaughter the situations I have recounted. It was trying to secure a in my constituency of the newspaper vendor Ian Tomlinson conviction against the six TSG officers, but it wasted some three or four years ago. I am sorry to say it, public funds defending its actions. It refuses to admit because like many people from the right of the political any wrongdoing. The MPS refuses to settle the case, divide, my instincts are to favour authority, including preferring to spend substantial amounts of public money the police service, but I have been worried; I have defending the actions of those whom the IPCC has spoken many times in the House and written articles on found guilty of bias, and whom it has also directed my grave concerns about the way the Metropolitan should face gross misconduct proceedings and possible Police Service has operated, and about failings by its criminal proceedings. leadership. Frankly, there have been mendacious and at times calculated attempts by senior figures in the Met to I should be grateful if the Minister would apply disguise what happened during various events, including herself to the question whether it is sensible and advisable those we have heard about today, and to influence to take police officers into part 20 proceedings when public opinion in its favour. they are acting as police officers under the direction of In the case of Jean Charles de Menezes, we were told their superior officers. It seems mad that we must then at the outset that he was an illegal immigrant who bore move to something pretty similar to the American resemblance to a terror suspect; that he had vaulted a system, where police officers may well have to take out ticket barrier; and that traces of cocaine were found personal insurance for anything they may do on duty, as in his urine. The picture was not entirely dissimilar in well as off duty. It would be helpful if the Minister the less well-known case of Ian Tomlinson. When the would consider at some point—not today—how the newspaper vendor died of a heart attack on the streets IPCC can have no remit to rule on the conduct of a of the City of London in April 2009 during the G20 retired officer. Retirement does not absolve a person protests, most people probably instinctively had faith from blame, but the IPCC cannot take any action in that the police were doing their best in difficult that case. Will she also comment on the whole charade circumstances—and the police do operate in difficult over disciplinary boards, and the fact that the IPCC can circumstances, as we all know. After people had witnessed organise, list and give direction on what should happen, sanctimonious street warriors antagonising police officers, but that can be dismissed by the MPS at any stage? a sharp shove to an obnoxious protestor would not have I know that several colleagues want to join in the made headlines, had the victim in question not died. discussion, but I reserve the right to rise and say something The official line would be that a stressed officer in a else. tense situation lashed out, hitting an innocent person in the mêlée. Following the clash, the man walked off, and died only later of a heart attack, as the riotous crowd Dr William McCrea (in the Chair): Order. I commend prevented him from getting medical attention. the hon. Lady for bringing such a serious matter before The problem, of course, with that version of events, the House. We must give time for the Front-Bench as put out by the Metropolitan Police Service at the spokesmen to respond, and their speeches will start at time, was that it was plainly untrue. Fortunately—in 10.40 am. I remind hon. Members that we cannot contrast to the position in the case set out by the hon. debate matters in which there are active criminal Lady—there was a substantial amount of CCTV footage, proceedings. which was not indiscriminately destroyed by the police. 311WH Metropolitan Police19 MARCH 2014 Metropolitan Police 312WH

[Mark Field] critical to dealing with the problems on the streets, but none the less, it reflects a deep-seated mendacity in the Therefore video clips of the incident appeared later, police’s approach. revealing that the victim had been hit across the legs Even if Londoners are unconcerned about the fates with a baton by a masked police officer in what was of Messrs Duggan, Mitchell, de Menezes and Tomlinson, clearly an unprovoked attack. A subtle shift in message or of the territorial support group officers to whom the followed, through the selective leaking of information hon. Member for Wells referred, such incidents make about Tomlinson’s background and behaviour. I am even middle-class, Tory-voting residents in my constituency very sorry to say that was clearly not an isolated incident doubt the word of the Metropolitan police in a way that for the Metropolitan Police Service. Its apparent relationship would have been unimaginable only 15 or so years ago. with the media continues, and it seems to think it needs Londoners are, I am afraid, finding it increasingly difficult to be able to put out its own line on stories, as has been to trust that our law enforcers are law-abiders. Indeed, it shown in various incidents that I shall refer to. is remarkable that many middle-class Londoners who The Tomlinson matter was of course of some concern would never previously have questioned the police are to me. I was reassured within days of the incident in a now inclined to think again. private meeting with the Independent Police Complaints At the time of the Tomlinson investigation, The Daily Commission that a thorough investigation of the Telegraph advised: background to the incident was under way, yet the “As a newspaper, we have a long record of defending the police IPCC’s handling of the case came into question, as did even in the most difficult circumstances...Yet it is becoming its handling of the case that we heard about this morning, increasingly difficult to do so, especially when the police themselves particularly in relation to its cosiness with the police in seek to cover up the failings that inevitably beset any organisation.” the capital. Those words could have come from the mouths of many dozens of my Conservative colleagues, and they Appalling as both the de Menezes and Tomlinson have certainly come from mine. That whole culture has incidents were, I believe that it was the subsequent to stop. For sure, there will always be mistakes, and it public relations management of the events, and the would be completely wrong for the errors of a few to police culture that that revealed, that so harmed confidence, undermine the elements of excellent police work done trust and faith in our law enforcers. In the case of de by the many. There is no excuse, however, for the Menezes, I have always suspected that the public would mendacity apparent in the attempts at manipulation of have forgiven the Met had it immediately admitted that public opinion that follow too many high-profile, a terrible mistake had been made. Similarly, in the controversial Metropolitan police slip-ups. Tomlinson case, where media hyped the prospect of attacks by rent-a-mob anarchists, we had a situation The immediate reaction of the Met’s leadership should not entirely removed from the frenzied situation on the always be transparently and without favour to seek out streets of London in July 2005, when the fear of Islamic the truth, to isolate problems and to apply the rule of terrorism loomed large. Once again, I believe that the law to its own officers when necessary. It is understandable decent majority of the public would have been happy to and inevitable that the initial police instinct is to close accept that the Metropolitan Police are unable to micro- ranks when confronted by public aggression. The leadership, manage the conduct of all their officers at all times. It however, should recognise that the majority of those was the spectacle of coppers deliberately closing ranks whom they police by consent—thankfully in this country and trying to distort the truth that utterly undermined we still have a passion for the notion that policing is by the police force. consent—are reasonable and understand some of the real pressures that the police find themselves under, in After both incidents, we were assured that lessons particular here in the capital city. Only by being honest had been learned, so it has been incredibly disheartening and transparent with the public when mistakes have to see controversial events in the current decade handled been made can trust be restored in the Metropolitan in a similarly opaque, if not outright deceptive, way. I Police Service. refer, of course, to the shooting of Mark Duggan on the streets of Tottenham in August 2011 and the so-called 10.23 am plebgate incident a year or so later, which led to the Richard Harrington (Watford) (Con): Rather like the political demise of a Cabinet Minister, my right hon. hon. Member for Wells (Tessa Munt), I came here Friend the Member for Sutton Coldfield (Mr Mitchell), because of what was originally a constituency inquiry. I after his fateful encounter at the gates of Downing commend her for securing the debate and for the eloquent street with a dishonest police officer. way in which she went through everything that she has On the Mitchell affair, although similar minor tussles found in her research and been told by constituents. We occur between police and members of the public each have had meetings to discuss the subject. and every day in our city, the damaging aspect of the I am not making an attack on the Metropolitan encounter was that it reinforced the view that the Met police or the police service generally, and I do not wish goes to great efforts to protect its own, even if that is at to discuss other cases or any of the points ably covered the expense of the truth coming out. This makes it by my hon. Friend the Member for Cities of London difficult for the public to trust that the organisation and and Westminster (Mark Field). I am talking about my its members are bastions of justice for the ordinary man constituent, Mr Simon Prout, and his colleagues who and woman. In addition, when the Met’s top team is were on the TSG detail that night. They have been embroiled in such squabbles, focus inevitably rests on treated badly by the system, and they were not given handling the media and careful construction of a PR any of the rights that we expect for people generally in narrative, rather than on fighting crime. Londoners can employment, in public or private service, or as citizens. be forgiven for not seeing the plebgate row as especially That is the scandal that I see. 313WH Metropolitan Police19 MARCH 2014 Metropolitan Police 314WH

I do not expect the Under-Secretary of State for the why are people such as Simon Prout and his colleagues Home Department, the hon. Member for Staffordshire forced to battle to secure justice for themselves, only to Moorlands (Karen Bradley), to comment on that particular be told, even when they are proved right, that nothing case. I thank her for being present today, because the will happen and no punishment will be handed down? Minister for Policing, Criminal Justice and Victims has I am conscious of the fact that the Minister may not been taken ill. I am sure that everyone joins me in comment on the details of the case but, in summary, I hoping that he has a speedy recovery. I am sure that the want her to take action. First, the failures of the two Under-Secretary will deal with the matter in an extremely DPS officers were put down to lack of experience, competent and professional manner, but I understand despite one having 18 and the other seven years of that she may not comment on the particular case. There service. They made basic errors in what I imagine are are serious points at stake to do with justice, fairness, standard policing steps, such as following up lines of authority, transparency and, above all, accountability inquiry, taking proper notes and so on. I ask the Minister in the DPS, the IPCC and the system generally. Serving to write to the Metropolitan Police Commissioner to police officers have to rely on those things if they are to reconsider the case with much more seriousness, and to have justice for themselves. think about what action should be taken against the Even now, despite all the clear and obvious failings, two DPS officers. Secondly, does the Minister agree that the Metropolitan police refuse to be held accountable the case shows a problem with the system, even if she or to take proper action. I, too, have corresponded with cannot comment on the circumstances? Can the case, the Metropolitan Police Commissioner and received a and the systemic problems in the justice system that it reply similar to that of the hon. Member for Wells. The highlights, be reviewed for all serving police officers? case has ruined the life of my constituent, Mr Simon Prout, and his colleagues. He has done nothing wrong, 10.29 am but he has lost eight years of service, suffered ill health Jack Dromey (Birmingham, Erdington) (Lab): It is a and lost prospects and promotion. It has ruined his pleasure to serve under your chairmanship, Dr McCrea. whole career. That is not an exaggeration; I have discussed I congratulate the hon. Member for Wells (Tessa Munt) it at length with him, and his colleagues feel exactly the on bringing these serious allegations to the attention of same. Had they been found guilty of misconduct or the House. I will not comment on the substantive done things that were wrong, they would have fully allegations, but will focus on wider issues that arise expected the consequences—not only losing their job, from her powerful speech. I make one other preliminary but facing proper proceedings with ultimately serious point: like all hon. Members present, I have seen at first effects. Going into their job, they were fully aware of hand some of the outstanding work done by the that, but they did none of those things. Metropolitan police, often in the most difficult What I found so unbelievable about the case when I circumstances. My experience of the Metropolitan police heard the details from my constituent, and what I will is that overwhelmingly they are honest, decent men and focus on today, is the ability for the IPCC recommendations women trying to do a good job for Londoners. Having to be completely ignored and dismissed. What is the said that, there are clearly profound problems that need organisation there for, if it can be completely ignored to be dealt with properly. and dismissed? The case highlights the serious need to Turning to some of the wider lessons in this case, improve accountability within the Metropolitan police. first, it is of course right that we hold the police to At the moment, there is little procedure to ensure that account. They must be accountable politically, and in justice is secured. That is all the more troubling when the event of wrongdoing, that wrongdoing must be we consider that in this case the victims of police investigated properly. Secondly, it is important that misconduct were the police officers themselves. Serious police officers enjoy fair treatment and due process, issues were swept aside and ignored. If that was the case including full, proper and prompt disclosure of any for serving police officers, what hope is there for the rest evidence relating to allegations against them. Thirdly, of us? with regard to its internal procedures, and the role of Furthermore, there can be no doubt that there was the DPS in particular, it is of the highest importance clear evidence of gross misconduct, and that the two that the Met conducts itself in a way that engenders DPS officers, Detective Inspector Bellej and Detective public confidence, handling allegations of misconduct Sergeant McQueen, should have faced such charges and properly and, where appropriate, initiating disciplinary dismissal. The IPCC even recommended dismissal. What procedures. Fourthly, as the hon. Member for Cities of happened, however, was that the case was passed around London and Westminster (Mark Field) said, if the the Met; the two officers were given a first warning on police are to command public confidence, it is of the their personnel file, which disappeared quite quickly, highest importance that there is effective, independent because the whole process took so long. In a normal police complaints machinery that is able to get to the employment matter, such things go off the file anyway. heart of things that go wrong. The officers should have been dismissed, but in actual Turning to the next stages of action, first, I support fact they faced no action and got away scot-free. How those hon. Members who have said that serious allegations can that happen? Despite the IPCC’s recommendations, have clearly been made that require proper investigation. the Metropolitan Police Service held its own hearings I hope that the Home Office will play its role, as and allowed the officers to face only minor misconduct appropriate, in ensuring that that takes place. Secondly, proceedings. They were allowed to continue their work what we have heard today is proof positive of the need for the Met, as the hon. Member for Wells explained. for new and much more effective independent complaints That is the crux of the matter. machinery. It needs to have the powers necessary to First, why do we have a complaints and investigation investigate, to hold to account, and to prevent obstruction body that can be ignored, at such cost to individuals? from the police at any stage in the effective investigation Secondly, why is there no recourse against that? Thirdly, of wrongdoing. 315WH Metropolitan Police19 MARCH 2014 Metropolitan Police 316WH

[Jack Dromey] the Met. I agree with her that that should not become normal practice. We clearly do not want to require Thirdly, the hon. Member for Cities of London and officers to insure themselves. Westminster was absolutely right: what we have heard My hon. Friend raised the issue of the IPCC dealing today, not just in relation to the allegations made by the with retired officers. She will be aware that on 6 March hon. Members for Wells, and for Watford (Richard the Home Secretary announced that she would look at Harrington), but more generally, is a sorry litany that the disciplinary system. That matter is part of that demands a fundamental culture change in the Metropolitan work, along with the struck-off list already being compiled police. If we have heard profoundly disturbing allegations by the College of Policing to ensure that officers cannot today, what has been revealed by the Ellison process is retire to avoid justice. also profoundly disturbing, as are the subsequent revelations about the destruction of evidence. To be frank, although My hon. Friend also asked about the IPCC power to the Met has much to be proud of, it has a lot to answer direct misconduct proceedings. I understand her concerns for. about the outcome of the gross misconduct hearing for The hon. Member for Cities of London and Westminster the DPS officers. The disciplinary system is also being was right to say that it is of the highest importance that reviewed as part of the work that the Home Secretary there be confidence in the police. From the Peelian announced on 6 March, and this case provides evidence tradition onwards, in our country we have had a system to support changes in that area. of policing by consent. Confidence is key for co-operation, to divert people from crime and prevent it, and to Tessa Munt: Briefly, my other criticism, which was identify wrongdoers when crimes are committed. That implied, is of the situation that an organisation can be confidence is damaged at our peril. The case has been responsible for investigating itself. When a case goes made powerfully today for changes in internal and back out to the IPCC and an order comes for external investigation, for the Met to reflect seriously reinvestigation, it cannot be the same department on these issues, and for the Home Office to take whatever investigating itself, never mind the very same officers. action is appropriate. Fundamental culture change is That clearly needs to be sorted out. It is completely clearly necessary. ludicrous.

Dr William McCrea (in the Chair): The Minister is standing in at the last moment for a colleague, who I Karen Bradley: I thank my hon. Friend for that trust will have a speedy recovery. I call Karen Bradley. observation. That issue will be included as part of the work being done. My hon. Friend the Member for Cities of London 10.35 am and Westminster (Mark Field), whose constituency is at The Parliamentary Under-Secretary of State for the the centre of so many high-profile cases concerning the Home Department (Karen Bradley): It is a pleasure to Met, made an interesting and thoughtful contribution serve under your chairmanship, Dr McCrea. I apologise regarding this case and others, for which I thank him. on behalf of the Minister for Policing, Criminal Justice The issues he and my other hon. Friends have outlined and Victims, my right hon. Friend the Member for today only add to the list that the Met and its senior Ashford (Damian Green), who is unfortunately unwell. leadership team need to address. If he could possibly be here, he would be, as I am sure The Metropolitan Police Service polices the country’s you know. most populous and ethnically diverse area, as well as I also congratulate my hon. Friend the Member for having a number of functions that extend across the Wells (Tessa Munt) on securing this debate and on UK, in particular the national lead for counter-terrorism setting out the facts of the case so clearly and policing. Although we all know the Met to be the comprehensively. She is a determined champion for her biggest police force in the country, we may not realise constituents, and she and my hon. Friend the Member quite how big it is. In fact, Met officers comprise almost for Watford (Richard Harrington) have set out in their one in four—23.5%—of the total number of police remarks the particular issues faced by their constituents. officers in the whole of England and Wales. What They have been the subject of a number of investigations happens in the Met is relevant to the way our whole and legal proceedings, some of which are not complete. country is policed, both because of its size and because, Although I cannot comment on the facts of an individual in the course of their careers, many of our most senior case while proceedings are outstanding, this case, along police officers will spend one or more periods working with others recently disclosed—some going back many in the Met. years—will undermine the public’s trust and confidence At this point, I must recognise, along with the hon. in policing in general and in the Met in particular. Member for Birmingham, Erdington (Jack Dromey), I will ask my right hon. Friend the Minister for that the overwhelming majority of Met officers do their Policing, Criminal Justice and Victims to meet the three jobs well, serving the people of London with dedication Members here today who represent the officers involved and professionalism. But, as the Home Secretary said in the case, as their constituency MPs, and I know he on 6 March: will speak to them in more detail. My hon. Friend the Member for Wells raised three specific points that I will “In policing, as in other areas, the problems of the past have a danger of infecting the present and can lay traps for the future…Trust answer now. First, she asked about officers taking part and confidence in the Metropolitan police and in policing more in part 20 proceedings. That is an unusual step for generally are vital and a public inquiry and the other work I have the Met to take. Although I am unable to comment on set out are part of the process of repairing the damage.”—[Official the details of the case I will look into that matter with Report, 6 March 2014; Vol. 576, c. 1065.] 317WH Metropolitan Police19 MARCH 2014 Metropolitan Police 318WH

In 2012 the Government abolished the Metropolitan on Monday of its “Review of the IPCC’s work in Police Authority, which was only partly and indirectly investigating deaths”, in which it recognises that it, too, elected. For the first time, the Met is truly accountable needs to increase the diversity of its staff and to improve to Londoners; the commissioner is accountable to the its engagement with families. The IPCC will ensure Mayor of London, who is elected by all Londoners, and that, in future, families are involved in developing the the Mayor and his deputy for policing are scrutinised by terms of reference for investigations and are provided the policing and crime committee of the London Assembly. with meaningful and regular updates. I have already mentioned that the Met is responsible As the House will be aware, we are already moving for policing the most ethnically diverse area in the UK. £18 million this year into the IPCC to enable it to deal While it is the most diverse force in the country, with with all serious and sensitive cases, avoiding the issue of 10.5% of officers from minority ethnic backgrounds, the police investigating themselves when things go seriously that proportion falls well short of the proportion of the wrong. The IPCC will also receive £10 million of capital population; the 2011 census figures show that just over funding, so that it can establish further regional bases, 40% of Londoners are from non-white ethnic groups. enabling it to respond quickly to incidents wherever As the Minister for Policing, Criminal Justice and Victims they occur. In conjunction with the Home Secretary’s said to the hon. Member for Walthamstow (Stella Creasy) announcement of a review of the misconduct system at Home Affairs questions last Monday, and of additional protection for whistleblowers, that “While the police work force is more representative in terms of will enable the IPCC to demonstrate clearly that it is gender and ethnicity than it has ever been, there is still much more truly the guardian of the police complaints system, and to be done by forces.” that the public can have trust in its ability to investigate He also said: allegations of police misconduct effectively. “The Metropolitan police plan to recruit 5,000 new constables However, police forces also need to play their part in between now and 2015, and their aim is that 40% of them should stamping out inappropriate conduct. Misconduct and be from a minority background, to reflect the population of gross misconduct hearings, even where there has been London as a whole. This indeed is a serious issue, which the an independent investigation, remain for forces to convene. Metropolitan police are addressing.”—[Official Report, 10 March Here, the Met has a good story to tell. Comparing 2012 2014; Vol. 577, c. 15.] with 2013, the total number of complaints decreased by My hon. Friend the Member for Wells has set out the 14%, from more than 16,500 to just more than 14,000. issues of race and diversity that are at the centre of her Meanwhile, the number of gross misconduct hearings constituent’s claim against the Metropolitan police. I rose from 49 in 2011-12 to 70 in 2012-13, and there have want to be very clear on this matter: treating anyone already been 70 hearings in the first nine months of this differently on the basis of the colour of their skin—whether financial year. The number of police officers dismissed they be black or white; police officer or member of the without notice has increased from 30 in 2011-12 to 47 in public—is always unacceptable. 2012-13. As well as the work the Home Secretary has announced, Tessa Munt: Will the Minister look into the IPCC’s the increased accountability of the Met through the recommendations and reports over the past five or so Mayor and the increasingly representative ethnic mix of years and see how many of them have resulted in action its officers are a good start in rebuilding the public’s that is appropriate as recommended by the IPCC? Will trust in the Met. However, other issues have been identified she write to me? that the Met needs to address. There has been criticism of the culture of the Karen Bradley: I am sure that my hon. Friend understands Metropolitan police, in particular that it is an obstacle that I do not have that information at my fingertips, but to changing how the Met works and how it deals with I will ask officials to look into that and see what members of the public. That is one reason why, as the information we can provide her with. Home Secretary made clear in her statement on 6 Some 42 officers were dismissed between April and March, we need to continue our work to reform the December last year. While there has been no scientific police and its culture. analysis of the figures, if the number of complaints is falling, but the number of officers dismissed is rising, From this autumn, all police forces will, for the first that tells us at least that the efficiency of the Met’s time, have the opportunity to bring in talented and disciplinary system is improving. While work remains experienced leaders from other walks of life to the to be done in the area by the Met and other forces, we ranks of inspector and superintendent. Those coming can see that the work that has been done is already in will receive world-class training and bring fresh having a positive outcome. perspectives, opening up policing culture. A significant number of those officers will be joining the Met, and I Clearly, issues of trust and confidence in the Metropolitan know that they will have the support of the commissioner police remain for both the public and some of their own and his senior leadership team as they get to grips with officers and staff. While it will take some time to work the issues the Met faces. The Home Secretary was clear through the historical issues that have been the subject in her statement to the House on the significance of of so much attention of late, I know that the commissioner those changes, particularly of bringing high achievers is determined to ensure that the Met is fit for the from other fields into policing. The public need to know purpose of policing one of the great cities of the world that policing is not a closed shop and that they can in the 21st century. The Home Secretary and Ministers challenge the way in which things are done. have trust in Sir Bernard to make those changes and to lead the Met through those challenges, and the residents Where the police fall short of our expectations, the of and visitors to London can have trust in the Met too. IPCC has a key role to play in ensuring that complaints and misconduct are dealt with as fairly and as transparently 10.47 am as possible. Hon. Members may have seen the publication Sitting suspended. 319WH 19 MARCH 2014 Illegal Wildlife Trade 320WH

Illegal Wildlife Trade mortalities are much higher and there is an even more devastating impact on the future survival of the vulture population. 11 am After the break-up of the Soviet Union, the poaching of saiga antelope for the saiga horn trade became a Mr Simon Burns (Chelmsford) (Con): It is a pleasure significant and major problem as well. Uncontrolled to attend yet again a debate in this Chamber that you hunting of the antelope was driven by poor economic are chairing, Dr McCrea. I am extremely grateful to conditions and the possibility of selling horns for traditional have the opportunity to raise this important issue. As Chinese medicine through the less controlled borders to Mr Speaker rightly said during Foreign Office questions Asia. After the ban on trade in rhinoceros horn in 1993, on 4 March, the issue is of considerable concern not saiga horn was used as a substitute, leading to a decline only to right hon. and hon. Members, but to many in saiga numbers of more than 95% by the year 2000. people beyond this Chamber among the general public. As only the males grow horns, the selective poaching led We have a critical situation, because the illegal trade in to massive skewing in the sex ratio of the species, with wildlife is posing a significant threat to a number of the inevitable impact that that has on its survival rates species. There are primarily two reasons for that. for the future. Encroachment on natural habitats is causing considerable problems for a range of species, but even worse is the I am sure that you would agree, Dr McCrea, that illegal trade that goes on around the world, which is there is a significant problem and, although a considerable posing a significant threat to many species. amount is being done by the international community, we seem to be, in many respects, on a losing wicket, After decades of conservation gains, the world is now because of the increased activity in different parts of dealing with what I believe is an unprecedented spike in the world by those who are prepared to engage in this the illegal wildlife trade, threatening all the gains of illegal trade. As I said earlier, because of the illegal recent years. The situation is, to put it starkly, devastating. nature of the trade, it is very difficult to get accurate Let us take the question of ivory. It is estimated that figures for exactly what is going on, but the best estimate 23 tonnes, representing 2,500 elephants, was seized in is that the global illegal wildlife trade is worth somewhere 2011, and I suspect that that is just the tip of the between £6 billion and £12 billion a year. That puts into iceberg, because by definition, given that it is an illegal perspective the pressures that there are on people to trade, one will never be able to get the whole picture. It engage in this illegal activity, and the sheer scale of the will inevitably be worse than is shown by the statistics problem that faces the world in seeking to challenge and on what has actually been found by the authorities. reduce it. Poaching threatens the last of the wild tigers in the Between 1970 and 2000, the population of species world. It is estimated that only 3,200 are left in the wild. declined by an average of 40%, and the second-largest That is as opposed to those that are in captivity. The use threat to species survival after habitat destruction is the of tiger parts in traditional medicines is thought to have illegal wildlife trade. Worryingly, London is a major contributed to at least a 95% drop in the wild tiger hub for Europe’s illegal trade in endangered species. I population in the last century. congratulate the authorities on what they are doing to Let us look at the horrendous situation for rhinos. In combat that. Operation Charm, led by the Metropolitan 2010, an estimated 333 rhinos were poached for their police, has resulted in the seizure of more than horns in South Africa alone. That is one rhino every 30,000 endangered species items since 1995, but again 30 hours. But ironically, the world’s largest seizure of that highlights the scale of the problem just here in rhino horn, which included 129 horns, occurred in London, and the challenge facing the authorities to Kensington in central London—not somewhere normally maintain the momentum and ensure that they continue associated with rhinoceroses. It is thought that rhino to be able to meet the challenges of reducing this crime. poaching increased by 5,000% between 2007 and 2012, I ask my hon. Friend the Minister what more is being with one killed by a poacher every 10 hours. Last year, done by the law enforcement authorities and the the western black rhino was declared extinct, sadly. international community to combat the illegal trade in Since 2004, the central Africa region has lost 66% of the UK. its elephant population. That shows the sheer scale of I pay tribute to the many dedicated and hard-working the problem, notwithstanding the tremendous efforts people around the world who are working to protect that many countries in Africa are making to combat the endangered species. At least 1,000 park rangers have illegal activities of poachers and others. been killed in the last decade. What action is being The problem is not restricted to wild animals. According taken to give extra protection to such people? Significant to an excellent brief provided by the Royal Society for attacks on, and the unlawful killing of, people who are the Protection of Birds, there is, sadly, a decimation of working to reduce and minimise this crime will have an African vultures going on at the moment. In southern impact on others and discourage them from working in Africa, eight out of nine vulture species are red-listed, this field, because of the dangers that they and their with most in the high-threat categories of endangered families would face as a result of the ruthlessness of and vulnerable. Recently, they have been facing the new those engaged in what is essentially an extremely big threat of being poisoned en masse by elephant poachers, business—that is what it is for those who sadly are who believe that the vultures are exposing their illegal successful in pursuing their illegal trade. activities to the anti-poaching authorities. The massacre The recent London conference was a significant step of 600 vultures by poachers in Namibia was preceded towards reaching an international consensus, and towards by the killing of 300 birds in early 2013 and 250 in getting co-operation to increase and enhance our ability Botswana in mid-2012. All those incidents took place to tackle this growing crime. As the Minister is aware, during the peak vulture breeding season, so overall the countries that attended the conference signed the 321WH Illegal Wildlife Trade19 MARCH 2014 Illegal Wildlife Trade 322WH

London declaration, which included a number of actions who had been in captivity together. They were put in a that will hopefully help to eradicate the demand for zoo in early life—one was a calf at the time—and spent wildlife products, strengthen law enforcement and support a year or so together, but they were then put in separate the development of sustainable livelihoods for communities zoos, where they remained for 20 years. They were affected by wildlife crime. The international community unexpectedly reunited at the end of their lives in a signed up to a number of actions within the declaration, sanctuary in Tennessee. As my hon. Friend described it, including support for continuing the existing international the love and commitment that those two elephants still ban on commercial trade in elephant ivory; renouncing felt for each other after 20 years was absolutely touching. the use within Governments of products from species It is a disaster that so many of those wonderful creatures threatened with extinction; amending legislation to make are being slaughtered for their ivory. As my right hon. poaching and wildlife trafficking serious crimes under Friend the Member for Chelmsford said, it is not only the terms of the UN convention against transnational charismatic animals such as the African elephant that organised crime; strengthening cross-border co-operation are threatened, but lots of other species such as the and support for regional wildlife law enforcement networks; African vulture. and further analysis to better understand the links The illegal wildlife trade is not only an environmental between wildlife crime and other organised crime and crisis but a serious global criminal industry. It is worth corruption, and to explore links to terrorism. The plan billions every year, and it is ranked alongside drugs, includes a commitment to an extended moratorium on arms and people trafficking. There is increasing evidence ivory sales, and to put ivory stocks beyond economic of involvement by organised criminal gangs using ever use. more sophisticated weapons and equipment and exploiting I am pleased that the UK Government announced political instability. that they will provide support to help the initiative get The lives of those working hard to protect endangered up and running. The London declaration and the elephant wildlife are at risk. At least 1,000 park rangers have poaching initiative come at a critical time. Demand for been killed over the past decade alone. My right hon. illegal wildlife products has risen sharply in the past Friend rightly highlighted that concern and asked what decade. It is laudable that countries attend such international we can do to protect the rangers who do that difficult conferences and sign up to initiatives and proposals that and dangerous task. Although it is the responsibility of are seen as a positive step towards combating such individual countries to enforce the law, several actions crime, but we must do more than simply sign up to in the declaration adopted by the London conference declarations and initiatives. We can talk the talk, but we are about strengthening law enforcement. We have must also walk the walk. I want to know from the announced a £10 million fund, and I can confirm that Minister what will be done between now and next year’s we are looking at one or two projects to support that meeting in Botswana to ensure that the declaration does type of work and improve countries’ ability to enforce not simply pay lip service to a range of laudable and the law and protect park rangers carrying out that badly needed initiatives, but is translated into real and difficult task. proper action? What will the British Government do to ensure that countries that do not have a great ability to Tackling this organised criminality would help enhance implement the declaration get assistance from the other the rule of law and improve stability and good governance. countries that attended the conference? We must ensure Those are the conditions that allow for the development that they play their full part in tackling the problem. of sustainable economic opportunities. My right hon. They must roll back the increase in the illegal trade. Friend the Secretary of State for Environment, Food Conservation and law enforcement measures must once and Rural Affairs saw for himself in Kenya last year the again have a positive effect on crime. benefits that can come from concerted efforts to tackle the trade by working with local communities. I want to say a little about the London conference, 11.14 am about which my right hon. Friend spoke. We recognise The Parliamentary Under-Secretary of State for that the illegal wildlife trade is a global problem that Environment, Food and Rural Affairs (George Eustice): I needs a global solution. The UK has always been congratulate my right hon. Friend the Member for determined to play its part, which is why we were Chelmsford (Mr Burns) on securing this timely debate pleased to host the London conference on the illegal on a subject that is of great concern to the Government wildlife trade on 13 February. The conference was based and the international community. I know from looking on three key themes: first, improving law enforcement; through the record that my right hon. Friend championed secondly; reducing demand; and thirdly, creating alternative it consistently at the Foreign and Commonwealth Office, sustainable livelihoods for communities that have a the Department for Environment, Food and Rural Affairs problem with poaching. and other Departments. My right hon. Friend the Foreign Secretary and my As my right hon. Friend said, the rapid increase in DEFRA colleague Lord de Mauley chaired the conference. the illegal wildlife trade and the poaching that feeds it is His Royal Highness the Prince of Wales, the Duke of creating a crisis. Tens of thousands of elephants were Cambridge and Prince Harry attended the morning killed last year, more than 1,000 rhinos lost their lives plenary session. More than 40 countries attended to poaching and trafficking, and tigers and many other and 10 international organisations were present. I am species are under ever greater threat. In a debate organised pleased to report that the conference was a great success. by the Backbench Business Committee, my hon. Friend The ambitious political declaration that was endorsed the Member for Richmond Park (Zac Goldsmith) by the 42 participating countries contained 25 specific characteristically painted a touching and vivid picture commitments, including a requirement for Governments about the intelligence and thoughtfulness of elephants. to renounce the use of any products from species He told the story of two elephants, Jenny and Shirley, threatened with extinction. Countries also committed 323WH Illegal Wildlife Trade19 MARCH 2014 Illegal Wildlife Trade 324WH

[George Eustice] We have already announced that we will use a £10 million DFID funding package to support our partners in their to support the CITES—the convention on international efforts to tackle the trade, and we will soon announce trade in endangered species—commercial prohibition how to apply for that fund. on international trade in elephant ivory until the survival The momentum generated by the London conference of elephants in the wild is no longer threatened by is also continuing internationally. It is important to poaching. note that several countries made announcements at the The declaration also contains a commitment to treat conference that demonstrated their commitment. For poaching and trafficking as serious organised crimes, in example, Canada announced an additional $2 million the same category as drugs, arms and people trafficking. in emergency funding to combat the illegal wildlife Together, the 25 actions, with high-level political support, trade in east and central Africa; Cameroon announced represent a turning point in the effort to halt and that its ongoing five-year emergency action plan to reverse the current poaching crisis that my right hon. combat international wildlife crime, worth £120 million, Friend so eloquently explained. will continue; the US announced its national strategy The conference heard first hand from the Presidents for combating wildlife trafficking; Gabon announced of Botswana, Chad, Gabon and Tanzania, and from plans to impose new penalties for poachers and traffickers; the Foreign Minister of Ethiopia, who announced the and Ethiopia committed to destroying its ivory stockpiles. elephant protection initiative, which aims to secure new In addition to all that, of course, was the commitment I funding from private and public sources for the mentioned earlier to the elephant protection initiative, implementation of the African elephant action plan. which a number of African countries are taking forward. The elephant protection initiative includes a commitment Those announcements were made at the conference, to an extended moratorium on ivory sales, as well as but it is worth pointing out that momentum has continued plans to put ivory stocks beyond economic use. afterwards—Chad recently burned its 1.1 tonne ivory As I said, one of the aims of the elephant protection stockpile and Vietnam has strengthened its protection initiative is to generate additional private funding, and of endangered species. The challenge now is to build on we understand that around $2 million has already been and harness that momentum and ensure that the identified. The Foreign Secretary has said that, in principle, commitments in the London declaration are delivered. he is open to looking at whether some of the £10 million As my right hon. Friend mentioned, Botswana will host fund we have set aside could be used to support that a follow-up conference in 2015 to review progress against initiative. As my right hon. Friend the Member for the commitments made in the London declaration. The Chelmsford said, it is important that action does not UK will support Botswana in its preparations for that. end with the conference and the declaration—we need In conclusion, I am pleased to have had the opportunity the follow-through. We must ensure that commitments to highlight the success story of the recent London are translated into urgent, concrete actions on the ground conference. It agreed ambitious measures, showed new in the weeks and months to come. political commitment, and marked a turning point in I would like to say a little about the next steps, the the effort to halt and reverse the current poaching crisis. first of which is to ensure that we in the UK are meeting The examples I have described of actions that we and our commitments as effectively as possible. The London our international partners are taking demonstrate the conference was the result of close working between four real international commitment to tackling the illegal Government Departments—DEFRA, the Foreign Office, wildlife trade. the Department for International Development and the I will emphasise again, however, that I completely Home Office. It was a good example of Departments understand my right hon. Friend’s point: we must sustain coming together in a coherent, joined-up way, and that our action. We must not discuss the issue once a year is the approach we want to promote going forward. The but see little happening in between. The international issue should not be left to any one Department because community must work together to ensure that the it crosses many different briefs. The fact that so many 25 commitments made in the London declaration are Ministers attended the conference underlined our translated into urgent, concrete actions on the ground. commitment to such an approach. The UK has played a leading role, and we will continue My right hon. Friend asked what we in the UK are to work with our international partners to maintain the doing, particularly on law enforcement and the interception high level of political attention and deliver outcomes on of illegal trade. In February, we published the document the ground. “UK Commitment to Action on the Illegal Wildlife We do not underestimate the challenge. Much work Trade”, which set out what we are doing across remains to be done, but through the London conference Government. We are committed to reporting against we have achieved a solid base for tackling and ending that commitment in a year’s time. Action is already the appalling illegal wildlife trade. under way. For example, as part of our commitment to fighting the illegal wildlife trade, the UK recently formally extended the convention on international trade in 11.26 am endangered species to the British territory of Anguilla. Sitting suspended. 325WH 19 MARCH 2014 Child Care (London) 326WH

Child Care (London) child care costs survey, carried out by the Family and Childcare Trust, found that the most expensive nursery in London costs £494 a week for 25 hours. Over a year, [JIM DOBBIN in the Chair] a full-time place, which equates to 50 hours, would cost £25,700. Given that the average salary in London is not 2.30 pm a great deal more than that, it does not take a genius to Heidi Alexander (Lewisham East) (Lab): I am grateful see the problem. for the opportunity for this debate. I should say at the When I found out last week that I had secured this outset that I feel somewhat unqualified to lead a debate debate, I took to Twitter and e-mail to ask people for on child care. I am not a mum and, on the rare occasions their experiences and views on child care in London. that I am entrusted with the care of my niece, my Suffice to say, I got interesting responses immediately. brother often wonders whether she will come back in Barbara Mercer on Twitter simply said, one piece. I am delighted that the very prospect of the “need to do something—it’s hitting our pockets really hard.” debate led to a flurry of Government announcements Bex Tweets told me: on child care in the past few days. Clearly the power of Westminster Hall debates should never be underestimated, “I just gave up my job because, had I gone back, I would have been out of pocket by £200 a week.” especially when they coincide with Budget day. Julia, a civil servant, decided in effect to work for less I called for this debate because the simple truth is that than nothing because of her desire to get back to her the cost and availability of high-quality child care in the job. Her short e-mail is worth sharing with hon. Members, capital is a real problem for hundreds of thousands of as it sums up the problem for many. She said: families. The lack of affordable nursery places, after-school clubs and childminders puts a huge financial strain on “I have two small children—aged two and one. I work part parents. It stops many women who want to go back to time and take home £1,100 a month after tax and pay £1,950 to my local nursery. Obviously this is ridiculous but luckily my work from doing so, and in some cases means that husband and I can just about scrape by and it is worth losing children miss out on the start in life that they deserve. I money to go to work because being at home full time with the welcome the signs that, after four years, the Government babies drove me crazy! I earn a decent salary and can’t find may be slowly waking up to the scale of the problem. cheaper child care in Surbiton where I live so you can see there is a They are, however, still spending less on child care than problem. I am very lucky my husband can subsidise me working— the previous Government, and there are questions about many of my friends simply can’t afford to work so are losing their who benefits most from their over-hyped voucher scheme. career.” Help for families who struggle with child care costs cannot come soon enough, but the Government will not Dame Joan Ruddock (Lewisham, Deptford) (Lab): be thanked if their schemes hike up already high prices On that final point about women losing their careers, is even further. I also cannot help but think that assisting that not one reason why they are held back in promotions families who earn up to £300,000 with the cost of their and cannot get to the top? If they have very large gaps nanny, for example, is a step too far. Support is undoubtedly in their working life, the rest of their working life is required across the spectrum of low and moderate-income affected. Women who want to take up the option of families, but the idea that the Prime Minister struggles going back into work but not full time should be able to with his child care costs will strike most people as do that, but child care prevents that. somewhat bizarre. In past few days, Ministers have taken to the airwaves Heidi Alexander: I agree entirely with my right hon. to talk about child care, but the problems experienced Friend. It affects not only their working life, but their by parents have not come about overnight and. Although home life. If parents are happy and fulfilled in their the debate focuses on the problems in London, such work life, hopefully their home life will be happy and problems are, of course, not confined to the capital. more fulfilled, too. Rocketing fees in London in recent years, the comparatively I was talking about Julia’s child care experience in longer journey times to work, and a growing and relatively Surbiton, which is typical of many women, and indeed young population, mean that the child care crunch is men, throughout London. Three quarters of parents in more severe in the capital than elsewhere. That the capital say that child care costs affect how many proportionately fewer people in London than in other hours they work. A quarter say that they are unable to regions have grandparents close at hand and that many work simply because of that cost. Despite being the people do not work nine-to-five adds a further layer of UK’s richest city, London has the lowest maternal complexity. In the past year alone, child care costs in employment rate in the country. The economy loses out London have increased by 19%, which is five times because of that: employers lose the benefit of skilled faster than average earnings. Nationally, since the election staff and the Government pay benefits when they could child care costs have increased by 30%. Add to that be collecting taxes. spiralling energy bills, sky-high rents and the increasing Many parents decide that they do not wish to work cost of the weekly shop, it is no wonder that Londoners after having children, or that they want to return on a feel that they are experiencing a crisis in their cost of part-time basis. I do not stand here today to tell mums living. and dads what they should or should not do. If families London is by far the most expensive part of the can get by and are happy on one parental income and country for child care. Childminders for over-fives, for the other parent wants to look after the child or children example, cost 44% more than the British average, and full time, all power to them, but I want families to be nursery costs for under-twos are 28% more than average— able to make a genuine choice about what is right for 25 hours a week of nursery care now comes in at more them and their children, and not to be boxed into a than £140. That sounds bad, but it gets worse. The 2014 corner because of soaring child care costs. 327WH Child Care (London)19 MARCH 2014 Child Care (London) 328WH

[Heidi Alexander] around £11 less than they were in April 2011. The Government’s changes also led to a drop in the overall For some parents, the double-edged luxury of having number of families receiving such support. In April to make that sort of decision is taken away right at the 2011, 455,000 families were benefiting from that support, start. In some parts of London, the supply—let alone but that dropped by 71,000, and in December 2013 only cost—of suitable child care provision that matches families’ 422,000 families were benefiting. Given those clear figures, needs is a real problem. According to analysis done by it is not unreasonable to suggest that the Government the then Daycare Trust of the 2011 child care sufficiency are guilty of giving with one hand while taking away assessments, 15 councils in London—nearly half of all with the other. London local authorities—did not have enough breakfast Many of those who struggle most with the cost of and after-school provision to meet demand. Another 16 child care in London are lone parents on low incomes. councils did not have sufficient school holiday child My constituency in Lewisham has approximately 9,000 care and 13 identified that they did not have enough single-parent families, and it is estimated that in London suitable child care for disabled children. as a whole there are more than 325,000 single mums or For Londoners who work shifts or those on zero-hours dads. Contrary to media stereotypes, the single mums I contracts, it can be nigh on impossible to find appropriate, meet are often desperate to find work, but they find it flexible child care. As many as 1.4 million jobs in hard to organise their life in a way to make it possible London are in sectors in which employment regularly for them to work. Child care is central to their difficulties. falls outside of normal office hours and, as mums and The need to make work pay for those single mums dads know, if a job’s working hours are outside of and dads cannot be overstated. One of my big concerns, nine-to-five, they also fall outside normal nursery hours. before yesterday’s announcement, was that the Government The lack of suitable provision may be one of the were set on a course with universal credit that would factors that explains why only 51% of parents in London have made work not pay but hurt for some of the whose two-year-olds are eligible for the Government’s poorest single parents, who are struggling to get back free 15 hours of child care have actually made use of the into low-paid, part-time work. The Government’s U-turn scheme. That level of take-up is significantly lower than on the amount of child care costs to be covered by elsewhere in the country, and it does not really make universal credit is welcome, but it is fair to ask whether sense in the context of the relative strength of the they instinctively understand the issue when their flagship London economy. I suspect that there is a range of welfare policy was initially designed with such flaws. factors at play to explain why take-up is lower in London The truth of the matter is that the Government have than elsewhere. However, I cannot help but think that been forced to promise action on child care costs because the serious gaps in child care provision may be part of they know that Labour’s commitment to increase the the problem. amount of free child care available to the parents of three and four-year-olds makes complete sense to Dame Joan Ruddock: My hon. Friend is making a increasingly hard-pressed families. most excellent speech. Does she agree that the current shortage of primary school places is exacerbating the Fiona Mactaggart (Slough) (Lab): Slough is very like situation, with parents having to take their children London and our child care market is very similar to much further than before to get to a local school, which London’s. Recently, I have been out talking to mums again is because of Government policies that prevent about child care. The demand that I regularly hear from councils from providing more primary school places? mothers who want to get back into work is that they need access to training and upskilling with child care. Heidi Alexander: I entirely agree with my right hon. What if they cannot find that either at their original Friend, whose constituency neighbours mine in London. workplace or in a new job if they need to change their She will know the significant problems that exist for career, as was the case with a flight crew member I families, particularly for parents in work, when they recently spoke to? Does my hon. Friend agree that we have to take children to different locations, whether it is should be trying to ensure that training opportunities for primary school or child care. Despite having met the for those mums enable them to have their children Minister for Schools at the Department for Education looked after and to get qualifications and skills? last year to discuss this issue, I am not convinced that enough funding is being made available to London to Heidi Alexander: My hon. Friend makes an important meet the rising demand for school places, not only at point and I agree with her remarks entirely. primary but at secondary level, where the demand for Before I bring my remarks to a close, I shall press the places will soon feed through. Minister on two further policy areas. First, what specific In December, the Government announced extra money plans do the Government have to ensure that there is to help to stimulate the supply of flexible child care in greater flexibility in the provision of child care? Ministers London, but I am simply not convinced that that money have stated that they would like children’s centres and will go far enough to deal with the problem. I am also schools to be open for longer, but it is not clear what not convinced that this week’s announcements make up direct support those centres and schools would receive for the reductions in support to parents that the Government to help them to achieve that aim. Would the Government pushed through earlier in their term of office. We know consider, for example, giving greater powers to local that in April 2011, changes to the child care element of authorities to influence the decisions of individual schools working tax credit led to a reduction in the amount of with regard to extending opening hours? We know that help that parents get with child care costs. For example, academies and free schools fall outside the control of in December 2013, average weekly payments for those local authorities, and if we are to give parents the ability benefiting from that element of working tax credit were to work it seems to me that they need a guarantee of 329WH Child Care (London)19 MARCH 2014 Child Care (London) 330WH wraparound care, at least in primary schools. It is right Without going into detail, I shall touch on why child that the Labour party has committed to legislate for care services and facilities are so important. They help that, but it is sad that the Government do not seem to to nurture the child, enhance their education prospects see it as a priority. and support families that want to return to work. Given Secondly, while there is an urgent need for more what I have seen in some parts of my constituency, they flexible child care, there is also a need for the Government also help to support the provision of a safe social to encourage employers to offer better paid and more environment, including the boundaries that children are flexible work opportunities. As someone who regularly sometimes, sadly, missing in an increasing number of fights to get a seat on a train into London Bridge in the dysfunctional family situations. Child care can make a morning, I know that a move to more flexible working massive contribution. hours could also benefit London’s creaking public transport Particularly in relation to my latter point, I am pleased system. that the Government are seeking to address the welfare I acknowledge that some steps have been taken to of children from less advantaged families, through a encourage employers to offer more flexibility to staff cross-Department—almost holistic—response. Part of who are parents, but as I understand it such flexibility is that, of course, is access to child care facilities, which is still heavily biased towards existing employees and comes an important part of the jigsaw that I have just put with the caveat of a six-month waiting period after together. Having said that, it is inevitable that as the starting a job—parents must wait six months before cost of child care increases, the Government’s response they can make a request for flexible work. Does the has to focus both on supporting and widening the supply Minister have any plans to extend rights for flexible side and on mitigating the costs that we face. Whatever working? I would be interested to hear about the discussions we call the policy, I suspect that all hon. Members can that she has had with her colleagues in the Department agree that Government financial interventions will be for Business, Innovation and Skills on that. mitigating something. The supply side will be fundamental, long-lasting and will hopefully achieve more. In conclusion, I simply say that London is the wealthiest city in the UK and yet 25% of its children live in In fairness, I should say that I am struck by the rather poverty. Currently, parents in London face exorbitant candid comments of Labour’s former Minister for Children, child care costs, which drain household finances and Beverley Hughes, who admitted that they got it wrong, leave some of them unable to work when they want to. saying that Labour’s approach of pouring money into This is clearly a cost of living problem, but it is also tax credits about people’s quality of life and opportunities for their “was probably wrong. We were so keen to stimulate demand from children. Ultimately, what we should all be striving for parents” are children who are well provided for and happy, and with fiscal interventions, more productive parents who enjoy more freedom of “but in retrospect that was such a mammoth task. We ought to choice. As I have said, I am not a parent myself, but it have focused on the supply side…then we could have done more has always struck me that happy and fulfilled parents and quicker.” are more likely to have happy and fulfilled children. Tackling the cost and supply of child care in London is Lucy Powell (Manchester Central) (Lab/Co-op): The undoubtedly a big task, but it would have equally large hon. Gentleman makes a good point. The former Minister rewards. I am not sure whether the recent spate of for Children was making the point that we should have Government announcements provides the radical solution put more emphasis on supply-side funding and less on that they claim. What I do know is that Londoners are the demand side. Can he explain why the Government impatient for action, and that neither parents nor the are not learning those lessons and are instead focusing Government can afford to allow the current situation to much more on the demand side with their tax-free child continue. care announcement yesterday?

2.48 pm Nick de Bois: I think the hon. Lady will find that we are learning those lessons. I am dealing with that point: Nick de Bois (Enfield North) (Con): It is a pleasure to my two themes are the supply side and fiscal interventions. serve under you, Mr Dobbin. However, I will concede that the supply-side challenge I congratulate the hon. Member for Lewisham East in London is particularly difficult. I will also bring to (Heidi Alexander) on securing this debate. Recently, I the Minister’s attention some weaknesses in the fiscal have found myself on the same side as her on certain interventions that I am experiencing in my constituency issues; that probably comes as a disappointment to her now. and it certainly comes as a surprise to me. However, in It is a current problem. In the interests of fairness, common with her in this debate, I also profess a limited Opposition Members would recognise that the number knowledge of this issue, although at one point my wife of child minders halved under their Government, reducing and I had four children under the age of five. I rightly choice and flexibility for parents. There were 98,000 child stand charged of perhaps not doing enough at that time minders in 1997 and the number fell to 58,000 in 2010. to learn about this subject; I should know more. However, Westminster Hall is generally a constructive environment I am pleased that we are having this debate, not just for debates, but my main point is that this is not a new because it is in the context of London, but because it problem. Costs have been rising above inflation, consistently, gives us time to reflect on the challenge and on what the since 2003, and since 2009 they have been rising above Government are trying to do. It also gives us a chance wages. to reflect on the supply side, which is behind many of the challenges we face. I think that hon. Members Emily Thornberry (Islington South and Finsbury) would agree that, for too long, it has been difficult for (Lab): As the hon. Gentleman is comparing Labour’s many families to find good, affordable child care. policies with the current Government’s, can he say 331WH Child Care (London)19 MARCH 2014 Child Care (London) 332WH

[Emily Thornberry] problem that I have—that temporary expansion encourages complaints from residents—when we try to meet extra whether any child care centres in his constituency have demand in our area. closed since this Government came in? I often feel that we have missed out on long-term planning. If we could free up planning regulations and Nick de Bois: I will, as I said, come on to the issues look ahead, a strategic plan would allow us to expand that we are facing in my constituency. However, the provision for both the younger child and the schoolchild. work force, on the supply side, is equally as important I should add that the problem is not just with primary; as the facilities. If the numbers halve, the problem of we are now passing it on to secondary, and that will be servicing good quality child care provision will be increased. the next challenge. I suspect that we would also agree that the quality of the work force is important. That is unquestionable. We Dame Joan Ruddock: We might all support the hon. do not want to create places just to dump a child in, so Gentleman and think this is a great way forward, but that people can go off and have some free hours; no one somebody has to provide the finance. It is impossible to is into that. We need good quality care. I am sure that build a new school and employ new teachers, in whatever the Government’s aims and attentions in this regard way that is done, if the finance is not available from his would draw cross-party support, because Opposition Government. Members would have said, and tried to do, the same. We can do things to open up the supply side. I do not Nick de Bois: If we expanded schools to take more generally like to intervene in markets, but we should try students—putting in temporary accommodation--we could to work up constructive ways for the Government to have more longer term planning, instead of what I call apply leverage to encourage schools to admit younger knee-jerk planning, and get better value, as well as the children. We have to deregulate the process of allowing physical premises. We are providing the money to increase schools to admit younger children. We made it easier demand. Money is much less the issue when schools are for schools to teach children under three by removing being expanded—and we are expanding them—but I requirements to register separately with Ofsted, a move want that to be done more cleverly. that was well intentioned, but we do not want to make it On fiscal intervention, the Government’s changes are difficult. So often, by liberating certain elements of the designed to ease the burden on parents and those from market, we can free it up and increase the supply side. the most vulnerable areas. Of course, that will help to sort out the immediate problems that people are facing On helping schools to offer affordable after school now, but that should go hand in hand with a massive and holiday care, I want primary schools to be open for improvement in the supply side locally.I really welcome—I more hours each day—so does the hon. Member for am not going to be shy about it—yesterday’s policy Lewisham East—and for more weeks a year, to better announcement. The Government’s new tax-free child match the working family’s time table. That can be done care scheme will have a significant impact on child care locally and I am all for empowering people locally to costs, potentially providing support to up to 400,000 families take those decisions—and, boy, are they needed in my in London. We should be proud of that, because it will constituency. help to ease the financial challenges parents face even in We should also be helping good nurseries expand, outer-London suburbs, where the costs are not as high not stopping them. I would be interested to know as in some inner-London areas. Parents who want to go whether the Minister is working with councils to explore back to work will start to breathe a sigh of relief ways that we can expand the supply side in the boroughs, because they will feel that the measure is helping them particularly those that are challenged. to do so.

Heidi Alexander: The hon. Gentleman is talking about Dame Joan Ruddock: The hon. Gentleman is generous the need to expand nurseries, some of which will, of in giving way again— course, be co-located with schools. Does he recognise that the crisis in primary school places in London, Nick de Bois: Save some time for the Minister. which we discussed earlier, means that the physical expansion of nurseries is even more difficult now than it Dame Joan Ruddock: I have a brief question. Does he may have been in the past, because sites are taken up not appreciate what a difference it would make if that with temporary classrooms and the space does not money was allocated to those who earn much less? exist? Helping families with an income of £300,000 a year is one thing, but the benefit for families on average incomes Nick de Bois: The hon. Lady takes me down a path is so much more significant. The measure would make a that I am quite interested in, because we have faced an much greater difference to those who are less able to expansion in primary schools, which unfortunately was provide for themselves. not planned in advance. I know that London has transition problems, so it is more difficult to plan in London than Nick de Bois: Few people in my constituency are on elsewhere, but some of the planning that we have done an income of £300,000. I ask the right hon. Lady to has been to meet an urgent, immediate need for the next wait for the end of my speech, because I will point to year, and we could have used the space much better in how the specific targeting of those on very low incomes some primary schools in my area. We need to free up has had an unforeseen consequence for those on slightly the planning regulations to make sustainable expansion higher, edging towards middle incomes. We need to be that much easier. We have seen that done actively in careful of the outcome of any intervention and I will schools. The hon. Lady may have encountered the same address that shortly. 333WH Child Care (London)19 MARCH 2014 Child Care (London) 334WH

The hon. Member for Lewisham East touched on Lucy Powell: I am not doing that. this point, but I think the most significant part of yesterday’s announcement was that more families will Nick de Bois: Saying, “It’s your Government’s fault” be helped to move off benefits and into employment. is making a political point when, with all due respect, it As part of that strategy, the Government announced is not the Government’s fault. that they will cover 85% of child care costs for some 300,000 families in receipt of universal credit. I would Lucy Powell: I am not saying that, either. have expected that to be talked about more widely yesterday because it is a fine example of excellent joined-up Nick de Bois: I will tackle the point. The choice has thinking. In some ways, it answers the question that the been made by the head of the school. He is not responding right hon. Member for Lewisham, Deptford (Dame to a central directive from Whitehall or, it appears, from Joan Ruddock) has just asked. the local education authority. Although the LEA has We have made money available to help child care expressed a preference, it is not a direction. I am highlighting providers to support disadvantaged children. Some £50 that we now have a situation in which a head teacher million will be invested in 2015-16 to offer 15 hours a finds it more attractive to follow the direction of the week of free child care to all three and four-year-olds. Deputy Prime Minister by disregarding parents, many That is another welcome intervention. We are helping of whom have used the child care centre for a considerable schools to offer affordable after-school and holiday period of time. care. I want to see primary schools open for more hours Central direction is not the solution, because it is each day and more weeks each year—I think that will close to the market intervention that we are talking work. about and will create another dysfunctional consequence We are also extending free child care to just over somewhere else. Even if we intervene with the best of 250,000 two-year-olds from low-income families, which intentions, it strikes me as odd that the education kicks in this September, but I want to address the establishment thinks it is perfectly acceptable to remove unintended consequences in my constituency.The extension some parents in favour of others. That touches on my of the scheme to two-year-olds is the pet project of the supply-side argument: if I was a parent who was told Deputy Prime Minister, and I would dearly love him to that that was what the school had chosen to do, I would explain the scheme to my constituents who have children look for somewhere else to go because I would not value at Carterhatch children’s centre in Enfield. About a the school that had made that decision. We therefore month ago, parents who have been doing the right thing have to accept that the weakness on the supply side, by working and paying, in some cases for a number of which goes back as far as 2003, is at the heart of our years, for their children to be at Carterhatch children’s problems. That is what we should address, instead of centre were, to be frank, brutally informed that their making the wider interventions with which we seem to children are no longer welcome because they are fee-paying be obsessed. That is the ultimate solution to the problem. and the centre’s priority will be those who now qualify I apologise for going on for far too long, but I think for the extended free places for two-year-olds, which I have initiated a lively discussion. from memory includes people on working tax credits of up to £16,900. The centre has said, “We don’t want you Jim Dobbin (in the Chair): I give notice that I intend because you are paying your way. We are going to focus to call the shadow Minister at 20 minutes to 4. entirely on those individuals who are now covered by the new Government intervention.” I put it to Members that that is a perverse unintended consequence. People 3.8 pm who are working, doing the right thing and paying to Mr David Lammy (Tottenham) (Lab): I will try to be get their children into the centre have basically been quick. I am grateful for your indulgence, Mr Dobbin, told that their child can longer attend. because I am due to speak in the Budget debate in the That brings me to the supply side, because being told House. Will the Minister forgive me for not being here to find somewhere else is not helpful as there is not for her conclusion? much choice in our area. I tackled Enfield council on I congratulate my hon. and very good Friend the that, saying, “Look, this is your policy. Have you directed Member for Lewisham East (Heidi Alexander) on securing schools on how to implement the Government’s policy?” this debate. I am also grateful for the work of my right The council frankly admitted that what happened at hon. Friend the Member for Tooting (Sadiq Khan) to Carterhatch is what it would like to see, but says that it ensure that the issue of child care is to the fore here in is not directing any headmaster to do it; it is entirely the London. My right hon. Friend the Member for Dulwich school’s free will. Schools are not working to Government and West Norwood (Dame Tessa Jowell) is here, and we directives, or so I was told by the council an hour ago, should remember the work that she did when she was but the consequence of intervening in the marketplace Minister with responsibility for public health to get is that we have distorted it at the expense of parents child care on the agenda and to set up the children’s who are doing the right thing. centres. I suspect that many of us are concerned that the Lucy Powell: Does the hon. Gentleman realise that children’s centres are disappearing and are not quite it is his Government who have taken away the local what we envisaged all those years ago. That is the authority’s role in planning for places? The strategic context of this debate. local commissioning responsibility no longer exists. It is I reflect, too, on a mother who came to see me last a free-for-all, and it is the Government who took it away. Friday. She is a nurse working in a major London hospital. She is meant to be at that hospital for 7.30 am, Nick de Bois: The hon. Lady is keen to apportion and she is a single mum with two kids who have to get to political blame. primary school. She is one of the many Londoners in 335WH Child Care (London)19 MARCH 2014 Child Care (London) 336WH

[Mr David Lammy] get Londoners making decisions fundamentally based on quality. There are real concerns that a diminution or temporary accommodation, and she has been housed a stepping back on some of the nursery standards that by the local authority miles away from the school that were in place has led to a drop in quality at nursery her children attend. She is actually housed at the other level. I have real concerns about our youngest children end of the London borough; I know hon. Members will in London—babies aged nought to 18 months—and be familiar with that situation. She also now lives the recent changes in regulation regarding the number further away from her job. She came to speak to me in of child care attendants that should be there for babies. tears, asking where the balance was between getting to There is quite a lot of evidence that our youngest school for the newly begun breakfast club and getting children in nurseries should have the one-to-one support to work. She faced losing her job. She asked simply that mothers want. It is not just about cost; it is about whether I, as a local MP, could visit the hospital to ask mum and dad—I should mention dads, as chair of the whether she could have the flexibility to get her kids to all-party group on fatherhood—having confidence that the breakfast club and then go to hospital to start work. the quality and support is there while they go out to She is an average Londoner and my heart goes out to work. There is a supply-side issue. We have to drive up her, because I remember my mother juggling the priorities standards and ensure that suppliers can flourish and of raising kids on her own and getting to work. The provide the child care that we want. I welcome the truth is that in the economy we have created—both debate, but in the end we need a proper 10-year plan. major political parties have to take some responsibility We need to be clear that child care is for those between for it—it is virtually impossible successfully to raise a nought and 14 years old. We need a road map to the family on one income in London, particularly if that is universal provision that is required in our capital city. one average income. We must build on the successes that we saw with Child care is a fundamental issue. It takes 31% of the the children’s centres, although there were problems. disposable income of London families; that will be 40% The policy began in the Department of Health under in 10 years’ time, and in 50 years’ time, it will be the the previous Government with my right hon. Friend the entirety of their disposable income. We should take the Member for Dulwich and West Norwood, when she was issue seriously. It is not just about child care, however. responsible for public health. While we were in government, Local authorities, with their budgets squeezed—we heard that policy shifted to the Department for Children, in the Budget today that further squeezes are to come in Schools and Families. As has been said by academics the years ahead—have withdrawn from subsidising and others, that shift meant that the policy became breakfast clubs and after-school clubs. Families are more about the Treasury, gross domestic product and having to make difficult choices about how they provide getting women out to work, when it should have been for their children. We should not forget that many about a holistic vision of well-being, as it was when it working families, when making those decisions, leave sat in the Department of Health. Things have slid even younger children in the care of slightly older children; further recently. Yes, the debate is about cost, but it is that is what is going on. Those older siblings have to also about quality provision. We should be ashamed feed younger siblings and marshal the dangers of the that so many of our continental partners are making internet. They are raising many young Londoners, because huge strides forward on child care, while here in Britain of the cost of child care. the debate stagnates. To some extent, I welcome the raising of the worth of what is effectively a voucher scheme to £2,000. I suspect Jim Dobbin (in the Chair): Three Members still wish that the shadow Minister will raise the issue of who to speak, and we have 25 minutes until I call the shadow receives that money. It causes me great concern that so Minister. much of it will be received by Londoners who can afford child care. Why are we giving subsidies to those 3.17 pm earning £300,000? Are bankers, barristers, accountants or senior consultants really complaining about the cost Ms Karen Buck (Westminster North) (Lab): I of child care in London? Should we be prioritising congratulate my hon. Friend the Member for Lewisham them? Child care costs on average £15,000 a year in this East (Heidi Alexander) on securing this important debate, city, so let us be honest: £2,000 is a drop in the ocean, and on laying out so clearly, as other Members have and shame on this House if we Members are not very done, some of the issues to do with the high cost of clear about that. It is a drop in the ocean in relation to child care in London. I am pleased with anything that the demand and the problems that we have in this city. secures additional resources for child care in London We should also be clear that the demand among and goes towards meeting that child care gap, and one many Londoners and right across the country is for thing that can be said about the additional money going support not just for children aged nought to five, but for into the child care tax relief is that it will, to some those aged nought to 14. People do not want their extent, help those middle-to-higher earners facing 11-year-old or 12-year-old in the house on their own, extraordinary costs at the sharp end, particularly in and being expected to make their own breakfast. I am such places as my constituency in central London. pleased that the Government are shifting the cut-off age That money is welcome, as is the Government’s for the scheme to 12-year-olds, but I put on the table recognition of the need to improve the child care offer that the issue is for young Londoners, full stop. The within universal credit. The organisations campaigning spectrum certainly has to go beyond five-year-olds. on behalf of low earners were enthusiastic about that I do not want to get lost in the central discussion on recognition. Will the Minister let us know the extent to cost and lose sight of quality. Most Londoners are which that welcome additional assistance for low earners making child care decisions based first on cost and then will benefit Londoners proportionately? Historically, on location. The real challenge for us in London is to the child care tax credit—I am obviously a fan of that 337WH Child Care (London)19 MARCH 2014 Child Care (London) 338WH investment in tackling working poverty—never benefited Ms Buck: I am grateful for that clarification. I shall London to anything like the same degree as it did other be interested to know why the London Early Years regions of the country. I need to be sure that the Foundation, probably the major child care provider in universal credit child care offer will benefit London as London, does not know that. I shall have to have that much as it should. conversation. Even allowing for what the Minister That speaks to the central point, which is that the said, which I accept in good faith, the principal point investment in child care announced yesterday—welcome still applies: as we know, child care workers are as every penny put into child care is—raises a question disproportionately employed on the minimum wage, about whether that marginal pound is best spent in and there is cost pressure in the sector because of the the way that the Government propose. As we know, cost of providing premises and so forth. £750 million of that offer is likely to go to higher I am concerned, also, about the interaction between earners, with only £200 million going to lower earners. I the investment and the expansion of the offer for two- suggest that the balance of that investment probably year-olds. Councils are being given nursery education does not meet the level of need. We have heard about grants to expand their places, but the interaction between the cost of child care in London, but it is also important that investment in expanding places and the money that to recognise that not only do we have a supply-side the Government are putting into increasing supply is problem, but Londoners are disproportionately likely leading to interesting anomalies. In my local authority, not to have networks of informal care, so they will need the child care plan for the coming years states that formal child care more than people outside London. 400 new places for two-year-olds are needed; 886 families Obviously, lower earners are disproportionately more have been identified as entitled, leaving a shortfall of likely than higher earners to rely on informal care. That 384. Those places must be provided, and the Government needs to be addressed if we are to help parents into want them to be provided. work, as well as provide an important child development What is happening within the cost envelope that we experience, which is what investment in child care should have been given? Guess what: the nurseries in my area always be about. have just sent a letter—I saw it today—to all Westminster One thing that alarmed me—and, I think, a number councillors. It says that Westminster has just announced of organisations—about the universal credit investment that it is cutting full-time provision in all its nursery is that the money has been identified as coming from classes and nursery schools in September 2015, so that elsewhere in the universal credit budget, although as yet it can meet the entitlement. It is an extraordinary situation: we do not know where. I am anxious to know the the day after the Government’s announcement of a answer to that, because the one thing we do not want is boost for child care, Westminster city council is happily for support for working parents within universal credit telling parents that they will lose their full-time places, to be taken from the other ways of supporting low-income on which many people rely to be able to work, so that it families. Universal credit is already likely to disadvantage can expand the offer. My constituents, and parents London as the child care tax credit once did, because it looking for provision, will be asking themselves tough does not properly reflect higher costs there, particularly questions about the Government giving with one hand the higher cost of housing. I think that Londoners will and taking with the other. There is much more to say, lose, proportionately, under universal credit, or will not but I know that other hon. Members want to speak. gain to the same extent as people elsewhere. We need to ensure that the resources do not come from the individuals 3.25 pm who are affected by that. Emily Thornberry (Islington South and Finsbury) In the couple of minutes that I have left, I want to (Lab): All politicians hope we learn from our constituents, talk about the extent to which the investment that the and align our priorities with those of the people we Government announced yesterday will help with supply. listen to and learn from. However, we also come here as There is a risk that there will be the child care equivalent people with our own experiences of life. If I am truly of Help to Buy, which helps with buying, not building. honest with myself, probably what provoked my interest The risk is that the announcement will help to increase in politics and has always been a guiding light is the fact demand for child care, but do relatively little to increase that, from the age of seven, I was brought up by a single supply, particularly because major child care providers’ parent. For many years, she found it impossible to costs are already squeezed. I know that the Minister is work, because I was the oldest of three, my youngest familiar with the London Early YearsFoundation, which brother being three, and my middle brother five. She started as the Westminster Children’s Society, and which tried to find child care, but our nan was not around the I hold in high regard. It tweeted about the child care corner, and she could not find anywhere for us to be offer for two-year-olds, which is a critical way of increasing looked after to make it possible to work. I remember supply: sitting in a pub back room while she worked in a bar “The challenge of expanding the two year old programme…is while I was still at primary school. For me, it has always whether we can do this for £5.09 in London? How?” been a matter of huge importance that politicians It is a social entrepreneur project, providing child care understand that, for women to be able to play a full role at the lowest possible cost, yet it wants to know how it in society and for children to be given a proper chance can provide that quality offer within the envelope. in the world, politicians must prioritise child care. I am proud that the previous Labour Government The Parliamentary Under-Secretary of State for Education did the amount of work they did to help women, (Elizabeth Truss): I wanted to point out that £5.09 is a including the fact that we could get nursery education national average. The average London rate is higher, free, as an entitlement, for pretty much the first time. because the offer for two-year-olds is adjusted for salaries That was something that my grandmother campaigned in each area. It is more like £6 for London. for and my mother needed. I was pleased to be a 339WH Child Care (London)19 MARCH 2014 Child Care (London) 340WH

[Emily Thornberry] house and make their own supper and look after their younger siblings. We need to think again about our Back-Bench member of the party in government that political priorities, and I hope that Labour will more was providing it. However, let us be honest: that was not than match any promise that any Conservative Government enough. I agree with my hon. Friend the Member for ever make. Westminster North (Ms Buck) that any penny spent on child care is completely welcome, so we welcome the assistance that the Government announced yesterday. 3.31 pm We wonder how effective it can be, whether it could be Dame Tessa Jowell (Dulwich and West Norwood) more effective if used differently, and whether it completely (Lab): You will have had my apologies for arriving late fulfils the priorities we would set. Nevertheless, given at this debate, Mr Dobbin—I was detained at a Delegated that conditions for working parents are almost desert-like, Legislation Committee. It is a great pleasure to be here any additional assistance must be welcomed. to support the initiative of my hon. Friend the Member The difficulty in London, of course, and the reason for Lewisham East (Heidi Alexander). She and other the debate is important for Londoners in the context of Opposition Members present have given much of their cost of living, is the fact that child care in London is so political lives to identifying, recognising and campaigning expensive. It is 25% higher than in the rest of the for improved standards in child care, but I do not want country. We live in societies where our nans are not this to become a competition about the monopoly of around the corner, and we do not have the extended good intention. I also welcome yesterday’s announcement, support that other communities do. People who have in particular because it is in London that children from moved to London tend to have families elsewhere. People a range of backgrounds are more likely to grow up move around. We do not have support networks and together. It is a function of gentrification and of the rely on professional support. mixed nature of the communities we represent. It is a I am now a privileged woman, but I struggled with good thing that young children grow up understanding child care when I was at the Bar. I give advice to young the differences in life and family circumstances between women and tell them that if they want to go into the them and other children. world and have a job, and if they want to have children, Has the Minister studied the experience in Australia as so many women do, they must be realistic: unless in the 1990s? A similar way of funding child care led, as things fundamentally change, their career prospects will is often the risk in such circumstances, to a multiple be compromised by not finding sufficient child care. increase in the costs of supply. An intervention in the That affects everyone, but statistics for my constituency market on cost tends to rig things in the suppliers’ show, I believe, that 40% of children are under the favour and against the interests of parents. I am happy poverty line. My constituency also has the highest to supply her with the information if she has not yet proportion of single parents. Time and again people had the chance to see it. come to see me and say they cannot afford to go to Different solutions, fiscal or otherwise, are right for work because they cannot afford the child care. The different situations. Child tax credits, with the element statistics bear that out. If a constituent of mine were to that recognised the cost of child care, were just that. In get a full-time, minimum-wage job at Kentucky Fried the financial life of a family, the period when children Chicken—I have a constituent with two children in such are small and when both parents may be working is one a position—she would earn £210 a week. If she did not of exceptional call on family resources, to which tax have the assistance of a friend to look after her child credits are a response. I agree that we might come up and had to send them to the most heavily subsidised with different solutions now, but it is important to nursery place for under-twos in Islington, she would be understand the response in the context of the time. spending £167.28 of her £210 a week salary on child care. If she was lucky enough to receive a London living I will not repeat the point about the extraordinary wage, she would be earning £293 a week. How on earth financial burden that good child care places on family can she send her child to full-time child care under such finances, particularly in London, but let us remember circumstances? There are further problems when children that, on average, £1 in every £3 of disposable income in reach school age, such as before and after-school care London is spent on child care and that the cost is rising and care during the holidays. What happens if the child exponentially. I am sure that all Members present have gets ill? The problems continue. received letters from mothers who doubt whether it is Politicians still have a long way to go in terms of worth going back to work. I recently received such a understanding, prioritising and putting our money where letter from a mother who took home £2,000 a month our mouth is. We talk about hard-working families, but when she was working. She wanted to return to work we do not consider enough how families can work hard after maternity leave and found that child care for her and still best look after their children’s interests. It is not two-and-a-half-year-old and her relatively small baby right that wages have been frozen and that in-work was going to cost her £1,870 a month, so she wondered benefits and tax credits have gone up by only 1% when whether it was worth going back. Mothers care most of nursery school costs increased by 11% in 2012. Life is all about the quality of care that their babies receive, being made harder and harder. It is not right that the but let us remember that the under-employment of London child care strategy, which developed affordable women who wish to work, or who wish to work more, and flexible child care, was closed when Boris Johnson has a substantial economic cost. was elected. It is right that we have extended schools Quality is important, and for most mothers quality is and that we increase the number of free hours of child assured by their children being looked after by a member care for three and four-year-olds, but I agree with those of their family, for which they are then rewarded, whether who have asked, “What about the 13-year-olds?” A by tax credit or some other means. We must consider 13-year-old should not have to go home to an empty family care and remunerated family care, particularly 341WH Child Care (London)19 MARCH 2014 Child Care (London) 342WH since grandparents are becoming so fundamentally That has a direct impact on London’s maternal important to the care of small children. I will always employment rates, which I was surprised to see are the remember the horror I felt when, while visiting an lowest in the UK—there is a big gap in the rates—especially extremely prestigious nursery a couple of years ago, I given the number of lone parents and other factors in greeted a nursery nurse who had two one-year-olds, one London. That low rate has an impact on individuals, on each knee, and asked what their names were. She who are not able to fulfil their lives or provide for their replied, “I don’t know.” I would not leave a child with families as they would like, and on the London economy, somebody who did not know their name or their little because so many women are out of the labour market. habits and ways. That is the pretty basic thing that we That has an immediate effect on gender pay gaps. It is mean when we speak of quality. shameful, or should be, that last year the gender pay My right hon. Friend the Member for Tottenham gap increased for the first time in 15 years. Women (Mr Lammy) referred to Sure Start, and I want to make suffer the pay and status penalty for taking time out two points. First, when I, with my right hon. Friend the from work. That should drive us all forward continuously Member for Sheffield, Brightside and Hillsborough to address fundamental issues to do with child care (Mr Blunkett), designed the Sure Start programme, it costs and provision, especially here in London. was as a nurture programme, not a welfare to work The issues are not new. I will not lay all this at the programme. We now know so much more about the door of the Government. These are long-standing problems critical 1,000 days that shape a child’s long-term that we have tried to address over many years. We have development, and the design of nursery care must take to recognise, however, that some of them have got more account of that. Secondly, it is just not good for children difficult over the past few years than they needed to, or to be woken up too early when their mothers are doing than they were. If I may, I will use some of my time sequential jobs in order to meet the cost of child care. simply to ask the Minister questions about Government We need to consider having more flexibility in how policy, since we have the opportunity to do so. nursery staff are deployed. As the economy becomes Many Members have talked about the two-year-olds 24-hour, so must child care. offer and its impact, but the take-up of the offer in It is important that we learn from mothers. Last London is the worst in the country—only 51% of eligible week, I visited an excellent nursery in Croydon and children take up the offer, compared with 75% of eligible spent the afternoon talking to mothers. I met one children in the country as a whole. What is the Minister group, a number of whom were poorly educated but doing about that? She has earmarked some new money— wanted to be good mothers, and the greatest benefit for £8 million was announced last year—but what will it be them had been the combination of education and child used for, and how does she envisage that that will care. One mother, who had four little girls, said that increase places and capacity in the system? Does she being able to read to her three-year-old was the most feel that the money is enough? important thing that she had ever done, and that she We heard about some unintended consequences of had never thought she would be able to do it. the two-year-olds offer from the hon. Member for Enfield My final point is on flexibility in pricing sessions of North (Nick de Bois). We strongly feel that provision child care, so that people who do not want their child and planning of nursery and early years places should looked after for a whole session might have the possibility be decided locally, and put in place in the context of a of buying part of a session. We should therefore listen longer-term strategy. His Government made a mistake to mothers in the grand design, to ensure that child care in taking those responsibilities away from local authorities. is as important for the healthy, safe development of The new scheme was announced a year ago, but was children and support of families as it is for our economy. revitalised yesterday and in today’s Budget. As others have said, Labour Members welcome any new money 3.40 pm or investment in child care, because families are desperate Lucy Powell (Manchester Central) (Lab/Co-op): I for that help, but we must see this in context. On congratulate my hon. Friend the Member for Lewisham average, families have lost more than £1,500 a year in East (Heidi Alexander) on securing this important debate child care support over the term of the Government, and on its timely nature. It is slightly humbling to have through loss of tax credits and child benefit. Over the such a wealth of experience on these matters on the same period, nursery and child care costs have gone up Benches behind me. I cannot possibly make a contribution by 30%. Taking those two figures together, families are on this important topic that will match those made by more than £2,000 a year worse off when it comes to so many hon. Members over the years, but I will attempt meeting their child care costs than they were in 2010. to do so in my winding-up remarks. The scheme and the money are welcome, but they will only get parents back to where they were in 2010. The issues facing families in London are the exacerbated version of what families around the country face. Child The issue raised by my right hon. Friend the Member care costs in London, as we have heard, are much for Dulwich and West Norwood (Dame Tessa Jowell) greater than in the rest of the country. For example, a about the Australian model is critical. Will the Minister full-time under-twos’ place in London is on average tell us today what assessment she or her colleagues in £2,500 a year more expensive than it is in the rest of the the Treasury or other Departments have made of the UK. We have also heard that the supply of places in scheme and whether it will affect price inflation? Will London is much more difficult than in the rest of the parents feel the benefit of the scheme in the amount country. London has the lowest take-up of child care in that they have to pay? the country. Given the extent of the growing economy It would also be fairer of the Government to be in London, and the vibrant economy that we have absolutely clear about who will benefit from the full always had here, it surprises me that take-up of child amount of the scheme. An average parent tuning in and care should be that much lower here. out of yesterday’s news coverage might be forgiven for 343WH Child Care (London)19 MARCH 2014 Child Care (London) 344WH

[Lucy Powell] that parents will get up to £2,000 per child towards their child care costs. Parents on low incomes will get 85% of thinking that they were going to get £2,000 a year per those costs paid. child for help with child care costs. In fact, the figure I want to challenge some of the things that have been is nothing like that. The Government have allocated said in the debate. Under this Government, spending on £750 million a year to the scheme; they say that 1.9 million child care and early intervention has gone from £4 billion families will benefit, although in the small print they to £4.5 billion. I am happy to supply hon. Members estimate that the figure will be nearer 1.3 million. Whatever with statistics for their local authorities. It is worth way we do the maths, even the Government’s own making the point that we spend as much money on this, figures suggest that the average amount per family on as a proportion of GDP, as countries such as France the scheme is somewhere between £400 and £500 a year, and Germany. We have to try to get better value from which is a far cry from the £2,000 per child that the the money we spend. That is the intention of a lot of the broadcasters and newspapers were reporting yesterday. Government’s work. Will the Minister confirm that there is no new money for the scheme since what was announced a year ago, Many Members have pointed out that the problem which was £750 million, even though the scheme is has not arisen overnight. Child care costs have been being extended? Those are the main points that I ask rising steadily for the past 15 years. However, this year’s her to cover today. Family and Childcare Trust survey showed that costs in England are starting to come down for the first time in On the universal credit announcement, as other 12 years. In England, costs of nursery care are frozen colleagues have said, we absolutely welcome the plugging in nominal terms and have fallen once inflation is taken of that major gap in the scheme. We have been calling into account. In Wales, the cost of equivalent nursery for that for many months. We have to be realistic, care has gone up by 13%, and in Scotland, by 8%. however: families on tax credits have seen a huge reduction in their child care support, from 80% to 70% under this The use of child care in deprived areas has gone up Government, and the increase to 85% will not come in by 16% in the past year. We have also seen an increase in until universal credit comes in. We do not even know maternal employment rates and the number of women when universal credit will come on stream for families; in work. That is because the Government have made an it could be 2017 or 2018, and families will have faced a effort to streamline the complicated child care system seven or eight-year gap with significant reductions. Will we inherited. Whereas there were multiple bodies inspecting the Minister tell us what steps are being taken to help child care providers, Ofsted is now the sole arbiter of those families who are struggling with their costs now? quality. We have also announced a single child care Does she recognise that it was a mistake to reduce the register that all child care providers should be on. rate from 80% to 70% in the first place? The right hon. Member for Tottenham (Mr Lammy), who is not in his place, made an important point about Ms Buck: We have not talked about the early intervention older children. The Secretary of State has recently grant and children’s centres. On take-up and participation announced that for our next manifesto the Conservatives in the offer, certainly in my constituency, a number of are looking at the idea of enabling and funding schools parents come through the experience of children’s centres, to open for longer hours to give an integrated offer to where they learn to deal with child care, build confidence, parents. The issue is not just about child care but about and develop their labour market skills. The early intervention education. grant, however, has been cut by 49% in Westminster. The lights are on in our children’s centres, but no one is Ms Buck: I raised the fact that councillors are being home—the tumbleweed is blowing through them, and asked to support our local nurseries and nursery classes, the services have all been closed—and that is unfortunately but are being told that they have to cut places from full impacting on other areas of child care. time to part time because of the funding pressures of the offer. Does that meet the Minister’s objective of Lucy Powell: My hon. Friend makes a good point, providing longer hours of care? and I suggest that she tries to secure a separate debate on that issue because of its importance. We welcome Elizabeth Truss: I am about to come on to the issues yesterday’s announcement, but it needs to be set in that are specific to London, and will address that point context. A remaining real challenge for families is to then. face these critical issues, which have a real impact on maternal employment rates and the gender pay gap, and We are absolutely passionate about quality and improving that is something the Government should be worried outcomes, which we know have previously been issues. about. There is an 18-month vocabulary gap between children from low-income and high-income backgrounds. That is a problem for all of us, because it means that children 3.49 pm start school in different positions. We have improved the standards for early years teachers, so that they now The Parliamentary Under-Secretary of State for Education have to meet the same standards as primary school (Elizabeth Truss): I congratulate the hon. Member for teachers. We have seen a 25% increase in the number of Lewisham East (Heidi Alexander) on securing this debate early years teachers enrolling on courses in the past on an extremely important topic. The Government’s year. We are also raising the standards for early years various announcements this week, from three different educators. This week, we announced an early years Departments—the Treasury, the Department for Education pupil premium for three and four-year-olds, which means and the Department for Work and Pensions—show that there will be extra money for the most disadvantaged how seriously we take this issue. We have announced children aged three and four. 345WH Child Care (London)19 MARCH 2014 Child Care (London) 346WH

We have improved the Ofsted framework, so it now care, there is a much bigger issue to explore with regard looks at the qualifications of staff in nurseries and is to how we best use our school nurseries. In the Children much more focused on outcomes. We have introduced and Families Act 2014, we have legislated for school Teach First for early years teaching, to make sure that nurseries to be able to take two-year-olds without having we are getting the best and brightest graduates into that to register separately. vital sector. Most importantly, we are working on a coherent framework for the teaching structure from the Heidi Alexander: We probably share the same aspirations, ages of two to 18, so that early years provision is not but the Minister talks about enabling schools to do seen as an afterthought but as a core part of our things, whereas I am interested in how she is going to education system. make them happen. Some of the time, schools do not I recognise that there is a greater challenge in London. want to do those kinds of things, and neither the That is why I launched an £8 million fund with the Government nor local authorities have the power to get Mayor of London at the end of last year. That aims to us to the position that we all want to get to. unlock the £1 billion that the Department for Education spends on early years provision in London. Elizabeth Truss: We are instituting a school-led system, I very much agree with the comments on increasing and it is important that head teachers and other teachers flexibility. A lot of school nurseries offer parents three buy into that. We are making things easier by removing hours, five days a week. That does not fit with many a lot of bureaucratic hurdles for schools. It is in a people’s working patterns. It also does not use our school’s interest to have high-quality nursery education school nursery resources very well. In London, 45% of and child care in the school, to help children start early years places are in school nurseries, which are school ready to learn, able to communicate and with the generally open only between 9 am and 3 pm. If those right vocabulary. We need to change the culture in school nurseries were all open between 8 am and 6 pm, education to embrace early years provision more, and that would give 66% extra child care hours. It is not a move away from having rigid barriers. question of building more facilities but of using our We are looking at how admissions policy can affect facilities better. Those nurseries could open for two these issues, particularly for the most deprived children, five-hour sessions a day, offering multiple hours. so that schools have an incentive to take children on. There is a massive opportunity in that area. Some Heidi Alexander: Will the Minister give way? school nurseries across the country have made those changes. They offer very affordable places for children Elizabeth Truss: Forgive me, but I have to keep an eye and help their school to do better. That is why we are on the time to make sure that I cover all the points that working with boroughs such as Lewisham and Enfield. hon. Members have raised. I wanted to say specifically We are producing case studies, getting the data together to the hon. Lady that the figure is even higher in and encouraging schools. The right first step is to make Lewisham—half of all early years places there are in things simpler and easier for schools. I welcome the school nurseries. In Enfield, the figure is 42%. Think of support of hon. Members in championing this issue in the extra places we could provide if all those school various areas. We can get much better value for money nurseries opened for the longer hours I mentioned. It is from what we are doing. not that the children should have full-time places; it is a I want the overall child care landscape to be understood, question of parents being able to access places flexibly. as there is a lot of confusion about exactly what proportion Nurseries are entirely able to charge for the extra hours of children are in which type of place. In London, a parents take, so they can open to suit the timetables of high proportion of children are in school nurseries at working parents. age three and four. We are piloting more places for That is why we launched the scheme with the Mayor two-year-olds in schools. A high proportion of children of London and are working with different London are in private and voluntary sector nurseries. I am boroughs. I would welcome the support of local MPs. working with organisations such as the National Day Our officials have been discussing the matter with officials Nurseries Association so that non-school nurseries can from Enfield and Lewisham in particular, as well as link better to schools, the private sector can learn from with officials from the three boroughs concerned. I the public sector and vice versa, and there is less of a hope that those discussions will help to address some of divide between them. That is how we will get positive the issues. At the moment, we have fantastic resources, professional practice in the early years sector—by particularly in London, but we are not using them to encouraging more inter-working. full effect. That is a microcosm of the overall problem On the use of money and the example of Australia, in child care and early years education: are we getting the key point is that we need to make sure that we the best out of the facilities that we have? expand supply. I agree with the hon. Member for If we look at the proportion of places that are in Westminster North (Ms Buck) that if we do not, but school nurseries, which is up 50% in some boroughs, simply push more cash in, there will be inflation. That is and the fact that children’s centres provide 4% of child why the Government are making it easier to expand. 347WH 19 MARCH 2014 Zero-hours Contracts 348WH

Zero-hours Contracts for care, explained that a national survey of care workers estimated that more than 300,000 people working in social care were on zero-hours contracts. There cannot 4pm be 300,000 people on zero-hours contracts in the care Alison McGovern (Wirral South) (Lab): It is a pleasure sector when there are only 250,000 nationally across all to open this debate under your chairmanship, Mr Dobbin. sectors. Therefore we knew that there was a problem, My contribution will not be terribly lengthy, which will and now the ONS has said that there is. enable other hon. Members to intervene or contribute, and to hear the Minister. I would like to start by Ian Lavery (Wansbeck) (Lab): I congratulate my hon. referring to an e-mail that was sent to me recently. Friend on bringing this important issue to Westminster Knowing that I had secured this debate, quite a number Hall. Does she agree that the recent figure of 500,000 of people got in touch with and wrote to me, as they feel zero-hours contracts is quite conservative? Other analysis so strongly about zero-hours contracts. suggests that there are more than 1 million people on One gentleman who got in touch explained his life, such contracts. For those 1 million people, there is no saying that he lives to work and enjoys work, and wants production or wages, and they have no economic input to feel good about himself and perhaps own a house whatever. If we have 1 million-plus people on zero-hours one day. He is signed up with an agency and has had contracts, is that not a way of fiddling the employment various problems. Anyway, the agency felt that it could or unemployment statistics that we are currently being get him a job as a refuse collector. He has written me a fed by the Government? long e-mail, explaining how he has turned up for work only to be turned away. He has had the odd day here Alison McGovern: My hon. Friend has pre-empted and there, and he feels that the situation is like something exactly what I am going to say. It is interesting that a from many years ago, where someone turns up not Department for Business, Innovation and Skills Minister knowing whether he will be given work. He said that, will respond to the debate, but we could do with having when it started, he was “a little annoyed”, but “confused the Health Minister here, given how rampant zero-hours more than anything”. He said there were contracts are in the care sector. We could also do with “about 50 lads in that day and only 40 had work.” the Minister of State, Department for Work and Pensions, He continued: the right hon. Member for Wirral West (Esther McVey), “It just carries on like this. I have been here two months now, who has responsibility for employment, because I want and only ever had one full week; to cover a holiday, it looks like. to know exactly how many people we have forced to And you daren’t take a sick day; not like I would anyway if it take jobs with zero-hours contracts to get them off the could be helped…you would just lose your place and start at the claimant count. bottom of the pile.” Reading that, as I did last night, brought it all back to me as to why my hon. Friend the Member for Liverpool, Mr Andrew Smith (Oxford East) (Lab): I join the Wavertree (Luciana Berger), my right hon. Friend the congratulations to my hon. Friend on securing this Member for Knowsley (Mr Howarth) and I started a enormously important debate. On the care sector, does campaign and a discussion on zero-hours contracts last she agree that such vulnerable contracts are exactly the summer. I will go on to talk about the numbers of opposite of what we need to build the status, training people whom we do not know are on zero-hours contracts. and career structure of care workers? Is it not a scandal that care workers are often not paid for travelling between The issue is about people who are facing a difficulty one job and another, and are therefore being paid below in the workplace. It is about how that makes them feel. the minimum wage for the hours they are working? The indignity of feeling useless through unemployment Does Her Majesty’s Revenue and Customs not need to is very bad, and we must never let up on our passion to start enforcing that? get people into work and see the difference. However, it is no better to feel the indignity of turning up for work and being turned away. Zero-hours contracts can be Alison McGovern: My right hon. Friend has hit the used to make people feel as if their efforts are for no nail right on the head. There is no better word for that good at all and that they are not wanted. The issue is than “scandal”. I will come on to say a few things about not just a fact of economics, but a moral question about the care sector. He and I are as one in thinking that we how people are made to feel by certain features of our need to develop the skills of our care work force. labour market. That is why we need real action. I want to say a couple of things about understanding the Mr Jim Cunningham (Coventry South) (Lab): I phenomenon of zero-hours contracts; about what the congratulate my hon. Friend on securing the debate. It Government are or are not doing, and what they might strikes me that we are going back to a 19th century be doing; and about such contracts as a symptom of approach with zero-hours contracts. Going back to the other developments in the labour market. ’30s, or even before the first world war, dockers or Regarding counting, the Office for National Statistics miners would turn up at the gates of a factory or the said that the most recent labour force survey suggests docks, a tallyman would throw something in the middle that there are close to 600,000 people—I think the exact of them, and whoever was lucky enough to pick it up figure is 582,000—on zero-hours contracts in the United got a job. Whoever did not get it did not get a job. Kingdom. That is up from its previous estimate earlier Zero-hours contracts are a 19th century approach. I this year of around 250,000. We knew that there was a was disappointed that nothing was said in today’s Budget problem with the survey’s counting of zero-hours contracts, to address zero-hours contracts and the cost of living. because in a parliamentary response to me, the Minister People on zero-hours contracts are badly affected by of State, Department of Health, who has responsibility the cost of living. 349WH Zero-hours Contracts19 MARCH 2014 Zero-hours Contracts 350WH

Alison McGovern: I agree with my hon. Friend. Given Without going deeply into the care sector, we need the plethora of things that found attention in today’s to look at the role of central and local Government Budget, it was a surprise that the Chancellor did not in preventing zero-hours contracts, in both their want to talk about zero-hours contracts, which seem to commissioning and procuring roles. We can try to lead be at the heart of the Government’s approach to economic from the front. I would like to know what conversations recovery. the Minister has had across DBIS on procurement and I want to return briefly to the numbers. If the Minister commissioning, and across the Government on moving has not yet clocked the problem, she ought to. The ONS away from zero-hours contracts and saying, “In general has effectively said that previously it was undercounting terms in our economy, it is not a hugely helpful phenomenon due to the definitions in the labour force survey and/or to have people with unpredictable levels of income at a problem with people’s awareness that they are on the end of each month.” Will the Government lead the zero-hours contracts. We now cannot tell what the trend way in trying to set the standard in the labour market? is. The latest statistics may or may not represent a What conversations has the Minister had about that? massive spike in the use of zero-hours contracts—I do This issue has been mentioned, but I would also like not know. We cannot tell whether the statistics show a to know what the Government are doing to enforce the rise or a fall, because it is clear that the ONS has been minimum wage properly. It seems to me that there is a undercounting previously. I would therefore like to know group of—not universally, but broadly—women in society what further research DBIS has commissioned. As policy who are at risk of not being paid the minimum wage. makers, we are in an awful situation—there is a They are in a workplace in which they are not necessarily phenomenon in the labour market, but we do not know powerful, and they often have child care or other caring what is happening. What further research has been or responsibilities alongside their job, and cannot be expected will be commissioned by DBIS, because unless we know to expend the time and effort to take their cases forward. whether the phenomenon is radically and exponentially It falls as a duty on us in this House and on the increasing, how can we know what measures should be Government to ensure that we stand up for those people taken to tackle it? and ensure that they get the minimum wage. Secondly, I would like to know what the Government Without focusing universally on the care sector, there are doing. The Minister will probably stand up and say was further new evidence this week that it is becoming that they have talked about preventing exclusivity clauses, more difficult to have a predictable or the same carer all which is okay and fine, but there is a raft of other ways the time. Part of that is about the use of zero-hours in which the Government need to tackle the phenomenon, contracts and their unpredictability. I repeat my question not least the one mentioned by one of my hon. Friends to the Minister: what cross-Government conversations in relation to the Work programme and jobcentres. For has she had to find out what actions DBIS needs to take example, are jobs on zero-hours contracts routinely to lead in response to the phenomenon? being advertised through Jobcentre Plus and are claimants then sanctioned if they do not take them? I am afraid I do not know whether the Minister is aware, but that it will not be enough for me to know whether a zero-hours contracts are not the only problem in this policy document exists. I would like to know whether sphere. Often, they go alongside the use of agencies and the Minister believes that people are routinely being other ways in which people find loopholes to get around sanctioned for not taking jobs on zero-hours contracts, their responsibilities. I would not want us to bear down because it would be terribly serious if that were the case. on the use of zero-hours contracts only to see the problem pop up in another guise. The Minister should I have always said that if a small business offers be aware of that problem as we move forward. It should opportunities on a zero-hours basis, as and when, and not be about closing down one way of getting around the person taking that job is in no way penalised if they employers’ responsibilities, only for the problem to raise turn down the hours—either they are a student or they its head under another definition. The Minister needs just want to keep their hand in with a job but do not to think carefully about that. want lots of hours—that would be okay in my book. However, the problem is that we are in a world in which Jobcentre Plus is being directed to get the claimant John McDonnell (Hayes and Harlington) (Lab): Before count down, and we know that there are significant my hon. Friend concludes, I want to congratulate her problems in the DWP and in that organisation. I am not only on today’s debate, but on the significant work very worried about the idea that my constituents and she has done over the past two years. She has concentrated others are being forced into employment on a basis that to a certain extent on the care sector, but may I point they do not really want or feel comfortable with because her towards the fast food industry? With the bakers’ of current policy decisions. union, we have just launched a campaign in the fast I stand in this Westminster Hall debate today, proud food sector not only for the living wage, but to oppose of Wirral council, the local authority in which I am a the imposition of zero-hours contracts, because they Member of Parliament, because it has tried to adopt are used by managers to intimidate workers. For example, Unison’s ethical care charter. The council has said—to if a worker seeks to join the union or seeks to exercise or respond to the points made by my right hon. Friend the make representations about their rights, they will be Member for Oxford East (Mr Smith)—that in its denied work under zero-hours contracts for the following commissioning, it wants to adhere to standards to week. We are seeing them being used as an intimidatory ensure that, in the very important work of looking after tool, as well as one of exploitation. older people or those who are vulnerable and need a bit of help, it is not participating in a race to the bottom. Alison McGovern: My hon. Friend is right. One of That involves moving away from zero-hours contracts, the worst things about zero-hours contracts is what I paying properly for travel time, trying to get to the call “zero-hours contracts as a management tool”. People living wage and ending 15-minute appointments. have brought cases to me where, for whatever reason, 351WH Zero-hours Contracts19 MARCH 2014 Zero-hours Contracts 352WH

[Alison McGovern] 500,000 people in the final quarter of 2013; in other words, it more than doubled. We do need to gather somebody’s face did not fit and they did not end up information and analyse it sensibly if we are to know getting any hours. That is no replacement for the usual exactly what is going on and to achieve the right balance practices of good management and all the rest of it, so between the opportunities and the risks that zero-hours it is something that we absolutely need to be aware of. contracts provide. The hon. Member for Wirral South Another thing that employers can practically do to asked what is being done on that. The Office for National help us to deal with the situation is encourage people to Statistics has been looking at the issue and will release join a trade union—I would say that, being a Labour the results of its new survey in April. That will, I hope, MP, but. People will not always have the capacity to give us more clarity about the current figures and the raise such issues themselves, but with workplace number of people working in this way. representation, they can, and we can help on low-paid Let me put the issue in a little bit of context. Zero-hours work issues, such as getting people skills and boosting contracts can give growing companies the opportunity their abilities. I am sorry to be so predictable—being a to grow in a relatively safe way and can be used to Labour MP and supporting people joining a trade increase flexibility in the range of services that businesses union—but there is a reason for joining a union. A are able to give their customers or clients—for example, union is a practical bit of infrastructure that can help by employing people in specialist roles and in different businesses to give their workers a sense of being involved geographical locations that a permanent staffing model in the leadership, and help to tackle some of these could not provide for. problems. I think good employers would agree with me The contracts are sometimes portrayed as simply a on that. way for businesses to try to reduce labour costs, to the I want to take the opportunity to thank parliamentary detriment of the people who work for them, but we have colleagues who have taken the time to come along to also heard in evidence that we have received that the today’s debate. Most importantly, however, I thank contracts sometimes offer positive work opportunities every single person who has been in touch with me over to people who would find it difficult to take regular the past week or so since I was awarded the debate. I work at fixed times. For example, one quarter of all also thank all the people who have been in touch with zero-hours contracts are taken up by students, who me over the past six months to share their experience. I cannot necessarily commit to a fixed working pattern, felt the experiences of people working on that basis as their timetables change. The contracts can allow were totally hidden. They are not hidden now. The them, for example, to be more flexible around exams question is: what can we do about it? and so on. Zero-hours contracts offer them an opportunity to gain useful work experience and to progress on to 4.18 pm other forms of employment when they wish to do so. The Parliamentary Under-Secretary of State for Business, That is also true of many other people with responsibilities Innovation and Skills (Jenny Willott): I thank the hon. outside work—in particular, caring responsibilities. The Member for Wirral South (Alison McGovern) for securing additional flexibility that zero-hours contracts can provide this debate. It is a very important issue, which has been can be greatly valued. widely discussed in the media, online and in both Houses Having said that, we must be clear that although of Parliament. She raised some important points. zero-hours contracts suit some people, they do not suit The term “zero-hours contract” encompasses many everyone and there are people on zero-hours contracts different forms of employment relationship, in which who would prefer to be in full-time, permanent work. I the employer does not guarantee any work and the am sure that, as constituency MPs, we have all seen individual does not have to accept it when offered. Such people in that situation. contracts can be direct contracts of employment or can cover people working for agencies and so on, so they Ian Lavery: Does the Minister agree with the comments include a wide variety of different models of employment. from Lord Oakeshott, the Liberal Democrat peer, who The Government, and indeed most people now, believe said: that zero-hours contracts have a place in today’s labour “A zero-hours Britain is a zero-rights Britain in the workplace— market, but we need to make sure that people get a fair Beecroft by the back door. Being at the boss’s beck and call is no deal when they are employed on such a contract. The way to build a skilled, committed, loyal labour force”? Government have always been clear that we will crack down on any exploitation of individuals in the workplace Jenny Willott: As I said, zero-hours contracts can and the zero-hours contract consultation that has just have a place in the labour market. They can suit some closed is an important part of the process. people—students, people with caring responsibilities As the hon. Lady highlighted, there has been some and others—but clearly they are not appropriate for inconsistency in the statistics on zero-hours contracts. everyone. Anecdotal evidence, including that highlighted The picture has been very mixed. That is primarily by the hon. Member for Wirral South and by the hon. because there is no legal definition of a zero-hours Member for Hayes and Harlington (John McDonnell), contract, so it has been difficult to gather good statistics. suggests that some individuals are being pressured into The labour force survey, as a survey of individuals, working when it does not suit them and have the implied provides an estimate of the number of people who threat hanging over them of being denied future work, identify as being on zero-hours contracts. The greater which removes the flexibility for those individuals. media coverage in 2013 is likely to have increased awareness of zero-hours contracts. The Office for National Statistics John McDonnell: I will give hon. Members just one believes that that has led to the estimate rising from example. The bakers’ union convened a meeting of 250,000 people in the final quarter of 2012 to more than fast-food workers a month ago, and a Costa worker 353WH Zero-hours Contracts19 MARCH 2014 Zero-hours Contracts 354WH turned up. Because he had not smiled enough that day, incurred by the worker in respect of that travelling is he was not going to get any work for the following classified as being in connection with the employment. week. These contracts are used as an intimidatory tool A worker who is paid at minimum wage rates would by managers, and we all have to condemn that, do we therefore need to be reimbursed the expenses for the not? travelling in order for the employer to be in compliance with minimum wage legislation. Jenny Willott: I completely agree. The behaviour that the hon. Gentleman describes is not right and is not Mr Andrew Smith: What will the Government do to appropriate for a responsible employer. I am sure that ensure that HMRC’s enforcement unit steps up enforcement hon. Members on both sides of the House completely in this area of the minimum wage, because it is being agree with that. abused? Some individuals have been working regular hours for long periods only to find that they are “zeroed- Jenny Willott: I was about to come to exactly that down”—their hours are brought down—when demand point. We are aware that low pay is an issue for workers, falls, perhaps due to the loss of an order. Clearly, that particularly in the care sector, as hon. Members have dramatic change in working hours and the resultant highlighted. As the right hon. Gentleman just pointed income loss will have a significant impact on the individual, out, HMRC enforces the minimum wage on behalf of especially if they are the only person working in the the Department for Business, Innovation and Skills, household. When individuals have their income and it has been conducting enforcement activity in that supplemented by benefits, an increase or decrease in sector. In November, it published a social care evaluation, hours and income can have quite a significant impact which highlighted a very worrying level of non-compliance. on their benefits, which can be very difficult to manage In 51% of the cases that it inquired into, the minimum in terms of household income. wage was not complied with, and it identified more Hon. Members raised issues about the link between than £400,000 of pay arrears. jobseeker’s allowance and zero-hours contracts. Clearly, The Government are trying to improve compliance the Government’s priority is to help people on benefits partly by significantly increasing the penalties so that to move off them and into work as soon as possible. they act as a more effective deterrent, and HMRC is However, as the hon. Member for Wirral South highlighted, currently targeting enforcement activity on the care some media reports suggest that people claiming jobseeker’s sector in particular. We have also revised the naming- allowance are being told that they must apply for vacancies and-shaming scheme—the most recent batch of names that are advertised as zero-hours contracts. I must stress was published a couple of weeks ago—and it is now that that is not the case. In such cases, someone’s benefit much simpler to name and shame employers that break would not be sanctioned. DWP decision makers cannot national minimum wage law. We are trying to ensure mandate claimants to apply for zero-hours contracts, that we are taking more targeted action, but also that although they are obviously free to apply for such a job the penalties are greater, both financially and in terms if it would suit them. The uncertainty about the hours of naming and shaming, so that they will act as a more of work offered by the employer and about the amount effective deterrent. earned and so on can present difficulties for individuals, so someone would not be sanctioned for not applying The hon. Member for Wirral South asked about for one of those jobs. working across Government on the issue of zero-hours contracts and procurement. Officials have spoken with It is very important that individuals make informed the Cabinet Office in relation to Government contracts, choices when applying for or accepting work, and employers procurement and zero-hours contracts. We are also must ensure that both job adverts and employment working with the Department of Health regarding the contracts are transparent. People have the right to use of zero-hours contracts in social care. The discussions know up front that a contract does not guarantee work, are ongoing, and the information gathered during them if it is a zero-hours contract, so that they know what is also being fed into our consultation response. This is they are signing up to. The evidence that we have a very complicated issue and, as hon. Members have received in the Department is that that certainly is not highlighted, it is of great importance to tens of thousands the case for everyone on a zero-hours contract, and that of people throughout the country. We had more than needs to be resolved. 36,000 responses to the zero-hours contracts consultation, Hon. Members have also raised issues about the care which closed last week, so people clearly feel very sector and the entitlement to payment for the time spent strongly about the issue. We are looking at the responses travelling between jobs. I want to be clear that employers to the consultation and will publish our response very must ensure that their workers are paid at least the shortly. I hope that that will respond more broadly to national minimum wage for the hours that they work. some of the issues highlighted by hon. Members today. Time spent travelling on business, including between I congratulate the hon. Member for Wirral South on house calls, counts as time worked for minimum wage securing the debate, because it is a very important issue. purposes. Where the travelling time is time for which the We all have constituents who have it right at the top of minimum wage should be paid, any associated expenditure their agenda, and the Government are working on it. 355WH 19 MARCH 2014 Newspaper Supply Chain 356WH

Newspaper Supply Chain Since the turn of the millennium, independent newsagents have suffered a fall in sales caused by the emergence of 4.29 pm free newspapers—we all pick them up—that target the Priti Patel (Witham) (Con): It is an honour to serve commuter market. The Metro and the Evening Standard, under your chairmanship, Mr Dobbin. I am grateful to which are available in railway and underground stations, Mr Speaker for granting this debate. I commend the are two prominent examples. However, newsagents have Minister because this is her second debate in a row. also felt the impact of technological changes; more and more content is available online. All the main newspapers The issue of the newspaper supply chain and independent now invest heavily in their online platforms, which are newsagents is covered by two Government Departments, updated minute by minute, particularly on Budget day. so it is important that independent newsagents know The growth in the use of smartphones and tablets has which Minister and Department they can go to. I am enabled news groups to provide news in a much more delighted that my hon. Friend the Minister is responding user-friendly way. Consumers are able to seek out and this afternoon. I would be grateful if, in her response, read news stories on other platforms, such as blogs. As a she told us whether there are plans for one Minister to result, hard copy sales are falling. In the past two years take the lead on this issue and oversee the policies that alone—between March 2012 and February 2014—sales affect independent retailers. declined by 16% from 18.3 million to 15.4 million. Independent newspapers have been an integral part Despite the challenges that those changes pose to the of many communities for decades. I am the daughter of traditional ways of selling newspapers, there are still former shopkeepers, and I spent more than 35 years some positive features for independent newsagents. Many living above a shop. My parents would go downstairs at people still go to their newsagent on the way to work the crack of dawn to open the shop, mark up newspapers and value the service they receive, and national news and deal with the many challenges of the newspaper groups still see a role for print editions, which is important supply chain, so I have first-hand experience of the for independent newsagents. Few of us would find fault benefits to local communities of independent newsagents in news groups’ entrepreneurial and commercial decisions and the challenges of the newspaper supply chain. to use new technologies—we have all got to embrace Today is Budget day, so we should remember that our new technology—or the cost-effective ways in which economy benefits from having prosperous, dynamic, consumers digest news. independent newsagents; it is an important sector. Whether However, an issue that needs to be addressed, which it is a friendly face at the counter who knows exactly places independent newsagents at a disadvantage and what each customer comes in to buy, or a paper boy hampers their ability to compete and respond, is the earning money for the first time and getting work wholesalers’ control of the newspaper supply chain and experience—I have plenty of experience of delivering their vice-like grip on independent newsagents. The newspapers—independent newsagents offer high-quality, Minister is aware of the campaign that the National personalised services. As much as we welcome choice in Federation of Retail Newsagents, the Association of where we shop, we all recognise that large supermarkets Convenience Stores and many others in the sector ran and online platforms do not do that. to raise awareness about the lack of competition in the Conservative Ministers deserve credit for taking action wholesale market. The are only two main wholesalers to support the sector. In particular, they have cut the that operate in Great Britain: Smiths News and Menzies small profits rate of corporation tax, increased the cap Distribution. They operate in what can be described on business rates—that is an important step—cut fuel only as a near monopoly, or near duopoly. National duty by more than Labour planned, reduced the burden publishers of newspapers and magazines sign exclusive on employers of national insurance contributions, and distribution rights deals with those wholesalers. Prices cut red tape, which has made a significant difference. are set and there is no scope for independent newsagents The announcements in today’s Budget, apart from the to get involved in the negotiations, so their voices are usual increase in tobacco duty, with which we would not heard. A third wholesaler, Dawson Holdings, ended not argue, also give independent newsagents a helping its magazine and newspaper distribution activities in hand. 2009 after losing out on contracts with publishers. However, it is clear that over a number of years Smaller independent wholesalers that traditionally independent newsagents have faced difficult challenges operate at a local or regional level have been squeezed that have forced many out of business. New tobacco out as publishers have concentrated their contracts with controls have harmed responsible independent retailers. Smiths and Menzies. As a result, if a newsagent wishes They have also driven many customers into the arms of to trade in newspapers, they are effectively at the mercy illicit traders and smugglers, but that is a subject for of the wholesaler when it comes to terms and conditions, another debate. The expansion of supermarkets brought the quality of service—which many newsagents would more challenges. Changes to the newspaper and magazine question—and charges. market, including the expansion of existing newspapers’ online media platforms, new entrants to the market and Jim Shannon (Strangford) (DUP): I commend the the growth of free newspapers, have led to a decline in hon. Lady for raising this issue. Like her, I have been newspaper sales. The terms and conditions imposed on contacted by constituents and small newsagents who independent retailers by wholesalers are a part of the are penalised by Menzies and other wholesalers, and challenge they face. have had their contract conditions changed without I want to concentrate on the relationship between negotiation or consultation. Will the Minister respond newspaper and magazine wholesalers and independent to that issue? If an independent newsagent has a contract, newspapers. The underlying trends and changes in how how can they be charged extra money without consultation? consumers digest newspapers and the news is highly There is no thought for the independent newsagent, relevant, because it has led to change in the marketplace. who makes little money as it is. 357WH Newspaper Supply Chain19 MARCH 2014 Newspaper Supply Chain 358WH

Priti Patel: I completely agree. That is the reality of On top of the fact that margins are being eroded, what we are dealing with. It is not a new problem; it has newsagents face higher costs from what are known as been going on for decades. There is a lack of negotiation, carriage charges, imposed by wholesalers. Originally and newsagents are just a second thought. Any newsagent introduced after the first world war to protect the will be able to wax lyrical about the poor service they universal availability of newspapers and their distribution receive. From my experience in my parents’ shop, I have to remote areas, carriage charges have soared over the seen the supermarket down the road getting its newspapers past 20 to 25 years. I know that because my dad always first. When the newspapers are taken off the lorry, the used to complain about them. Despite the falling volume independent newsagent is bypassed completely. That is of newspapers and magazines being sold and distributed, simply not acceptable, but the wholesalers operate a carriage charges are rising and now represent the primary virtual monopoly. source of profit for wholesalers. It is astounding that despite the monopoly conditions It says something about the effect of carriage charges to which independent retailers are subjected, the Office in recent years when an increase of 2% announced by of Fair Trading decided in 2009 and 2012 against referring Smiths last summer was welcomed by some newsagents. the matter to the Competition Commission for further That puts the figures into context. The fact that the investigation. There is a strong case for opening up the steep rise in carriage charges has coincided with the sector and looking at the way those organisations are signing of exclusive distribution deals between publishers governed. That outcome is grossly unfair to the tens of and wholesalers, and with the collapse of competition thousands of independent newsagents who, as I know, among wholesalers, adds to the injustice that independent are up at 4 am—before dawn—to serve the public. They retailers feel—it is the icing on the cake—with a duopoly work long hours to deliver a service for their customers, in place and the OFT failing to take action. but they are forced to accept declining margins, higher charges and appalling service. John McDonnell (Hayes and Harlington) (Lab): I In my capacity as chair of the all-party small shops think the hon. Lady’s dad was right. We debated this group, I am frequently contacted about this issue. I issue in this Chamber 10 years ago, when there were receive regular communications from newsagents across more wholesale distributers. We are now down to two, the country about the problems they encounter as a but they have cut their nose off to spite their face; they result of the lack of competition in the wholesale market. have forced the costs on to retailers, and now corner If a newsagent is dissatisfied with the products they sell shops are going out of business and circulation is and the terms and conditions they receive, they are declining. Short-term profit-making is significantly hemmed in, because there are not many places for them undermining the entire industry in the long term. to go. When it comes to general products, an independent newsagent can go to many cash and carries—of course Priti Patel: I completely agree with the hon. Gentleman. they can, because there is competition in the marketplace— The shops that we are talking about are the lifeblood of but they are limited as to where they can go for newspapers many communities. I have seen, over 35 years, a massive and magazines. There is simply no other avenue, which change; there is no doubt that we have seen many big is why so many newsagents feel aggrieved. The market is changes. Increases in carriage charges are relevant not stacked, rigged against them, and the Minister must only to Great Britain but to Northern Ireland. Newsagents review that. there have faced huge increases in the past 12 months The consequences of a lack of competition in the alone. I would be interested to hear from the Minister wholesale market and the dominance of the relationship about where there is scope to review the changes to between the publishers and wholesalers over independent carriage charges. retailers are profound. Notably, the margins that newsagents receive on newspapers are declining, and fast. Just as Jim Shannon: On that subject, the costs in Northern the cover prices of newspapers are set by the publishers, Ireland are exorbitant—I believe they are greater than so too are the margins that retailers receive. When here on the UK mainland. Independent newsagents prices increase, the share that the retailer receives does have informed me and other elected representatives not always follow. Some newspapers, such as The Telegraph that it is getting to the point where they will have to and the Express, have accompanied their recent price decide whether to carry newspapers at all, because the increases with a pro rata rise in the amount received by margins are so tight. At the end of the day, it does not the retailer, so that the margin remains the same. Many add up. Let us be honest: small shops are selling perhaps others, however, have not done so. The Mirror,for 100 newspapers, or 200 at the very most—there is no example, did not pass on a pro rata rate when prices profit in that. increased from 70p to 80p in January, with the percentage received by retailers being slashed from 22% to 21%. In Scotland, the equivalent margin fell from 23% to 21%. Priti Patel: The hon. Gentleman makes a really interesting Since January, it has been reported that one particular point. I make it my business to visit many independent publisher has cut the margins received by retailers for shops, particularly newsagents, and I always ask about 65 out of 138 titles. the number of newspapers they are selling. The figures It is understandable that publishers and wholesalers are staggering, because they are declining at such a rate. are looking for savings and efficiencies; I understand I remember, when I was a child, the bundles of our that the marketplace is changing. However, the arbitrary Sunday newspapers being enormous—we were dealing nature of decisions to cut retailers’ margins seems harsh—it with hundreds and hundreds of newspapers on a weekend is a blunt instrument—and the effect on profitability is alone. That landscape really has changed completely. pretty stark for independent retailers. I hope that the Along with all the additional costs, independent retailers Minister will look into that aspect of the relationship are frustrated by the appalling service that they receive between wholesalers and publishers. from wholesalers. Of course, that has a knock-on effect 359WH Newspaper Supply Chain19 MARCH 2014 Newspaper Supply Chain 360WH

[Priti Patel] My hon. Friend rightly pointed out that independent newsagents are an important part of local communities— on their business and the quality of service that they they can be crucial—and of the UK economy more can offer to their customers. When their newspapers are generally. I was therefore delighted to see figures from delivered late, people stop going to those shops. I hear the Office for National Statistics—I have said that about many reports from newsagents about late paper deliveries. five times today—that show that small stores are seeing Other newsagents find that the wholesaler has given annual growth of 8%, whereas larger stores are seeing them the wrong order or the wrong number of newspapers, growth of 2.6%. That shows that small stores have an or that the supplier has gone to the supermarket down important place in communities, and that their position the road, and not to their shop. is quite resilient. Although there is a process by which a newsagent can The public’s ability to access a wide range of news, complain, it does not change a thing. It just adds to the views and information about the world in which we live stress and frustration of running a business. Newsagents is absolutely central to the health of our democracy and feel increasingly powerless to get redress for their situation. society. Even in an increasingly digital world, access to a With the latest promotion by one supermarket chain—it range of newspapers is a critical part of ensuring a gives away free newspapers to customers spending more healthy and vibrant democracy. It is important, therefore, than £5—the squeeze is being felt even more. Will the that the market in the supply and retail of newspapers Minister update us on what action the Government are continues to operate in the best interests of consumers. taking to investigate possible abuses in the supply chain and to ensure that independent retailers are not unfairly Newspaper publishers in the UK operate in a two-sided disadvantaged? market, generating income from both advertising and sales. Publishers therefore take into account how circulation In conclusion, independent newsagents, some of which affects the revenue generated from both the cover price are dependent for 75% of their business on newspaper and advertising. On the other hand, wholesalers and sales, deserve to be treated with fairness—the debate is retailers exist in a more traditional, one-sided market, all about fairness in the supply chain. Unless changes so they are more likely to be interested in how changes are made to boost competition and give them a fair to cover prices or delivery charges affect their sales deal, including involvement in negotiations and decision volumes and profit margins. Although different elements making, more and more newsagents will struggle to of the supply chain clearly have different objectives, it is compete. We will see more withdraw from the marketplace in their best interests to co-operate to promote effective because they will not be able to survive, and our newspaper sales, particularly in the face of changing communities will be much poorer as a result. One consumer behaviour. As part of that, ensuring an efficient, newsagent put it clearly: cost-effective method of providing retailers and consumers “the big point that needs to be made is that falling sales, shrinking with newspapers is important. margins and disproportionately high carriage charges will before long drive many smaller news retailers out of the market, to the My hon. Friend raised concerns about competition in detriment of consumers—notably the elderly who may not be the market. Whenever the Government look at competition tech-savvy and digitally aware of the alternatives to print editions.” issues in sectors, they take into account assessments I hope that the Minister will give due consideration made by the UK’s independent competition authorities. to the points I have made, and will help us to see what In the case of newspaper supply, the Office of Fair can be done to support the future of independent Trading considered the market in a broad and detailed newsagents. These are small and micro-businesses, and way over several years and, as part of those investigations, the Government are doing great things for similarly consulted widely and collected much evidence. In 2008, sized companies. The issue should be reviewed by the the OFT published competition guidance to the newspaper Competition and Markets Authority, and the Government wholesale sector. It did not give the sector a clean bill of should work with newsagents to assess the reforms that health on competition, but said that the industry should are long overdue. I look forward to hearing what the assess its distribution agreements against that guidance Minister has to say. and make any necessary changes. Jim Dobbin (in the Chair): I call the Minister to speak In 2012, the OFT looked at whether it needed to in her second debate this afternoon. carry out a follow-up review, but decided it was unnecessary. As my hon. Friend said, the Association of Convenience 4.48 pm Stores and the National Federation of Retail Newsagents appealed that decision to the Competition Appeal Tribunal, The Parliamentary Under-Secretary of State for Business, but the tribunal supported the OFT’s decision and said Innovation and Skills (Jenny Willott): Thank you very that it was right to consider that the likely consumer much, Mr Dobbin—from one subject to another. benefit did not justify undertaking a review. I commend my hon. Friend the Member for Witham That does not mean, however, that the UK competition (Priti Patel) for securing this debate on such an important authorities will not consider the issue again in the issue, albeit one that is not raised as often in the House future. The new Competition and Markets Authority as the subject of the previous debate. I am present to will launch on 1 April and take on the OFT’s and address my hon. Friend’s concerns as the Minister with Competition Commission’s competition responsibilities. responsibility for competition, but I will ensure that the In the strategic steer to the CMA issued by the Government Under-Secretary of State for Communities and Local last October, we asked it to Government, my hon. Friend the Member for Great Yarmouth (Brandon Lewis), who has responsibility for “consider potential competition concerns in business-to-business retail and small shops—indeed, shops of any size—is markets, including the effects of differences in bargaining power aware of the debate as well, because it is an important between firms in a supply chain.” issue. This issue is therefore quite clearly in its remit. 361WH Newspaper Supply Chain19 MARCH 2014 Newspaper Supply Chain 362WH

The CMA’s draft annual plan showed that it is aware Alongside that, in December last year the Government of the risks posed in particular by the current economic announced the town centre support package, which climate. If my hon. Friend has new evidence that anti- builds on a range of other measures that have been competitive practices in newspaper supply are causing taken to help high streets. That package could be particularly detriment either to consumers or to businesses in the helpful to independent retailers, many of which are in supply chain, I encourage her to submit that to the high streets. They are not out-of-town businesses—I have CMA for consideration. not seen a small, independent out-of-town newsagent—so The hon. Member for Strangford (Jim Shannon) that sort of policy can benefit small retailers as well. raised concerns about contracts being changed without In addition, the Government published, “Small business: consultation and negotiation. That is clearly wrong: GREAT ambition”, in December last year, which sets contracts should not be able to be changed unilaterally. out our commitment to make it easier for small businesses If he is aware of evidence of such behaviour, I encourage to grow. It was published on small business Saturday, him to provide that to the CMA because it will have which I know a number of Members across the House strong powers to take action against anti-competitive took part in. That event gave everyone the opportunity behaviour by businesses. to celebrate small firms and it is important that we do My hon. Friend also raised concerns about the impact so; often, small firms get crowded out and it is difficult on small retailers of supermarket chains offering discounted for them to have the opportunity to raise awareness of or free newspapers. I know that that issue has been what they do and the part they play in our communities. raised with several Members by their constituents; it is a One of the businesses that I visited in my constituency concern. Large stores can benefit from economies of on that day is a fabulous newsagent and sweet shop. It is scale and in this very competitive marketplace they look called the Royal sweet shop and it has now been in for inventive ways to increase their market share. That existence in Cardiff in the same place in the Royal can make it extremely difficult for smaller shops to Arcade for—I think—103 years. It has the most amazing compete with them; smaller shops simply do not have display of sweets that I have ever seen—I think people’s the same capacity to provide such offers. I have already teeth practically rot as they walk in. It was very nice to said this to some Members, but if small retailers believe have the opportunity to support the important small that local supermarkets are behaving anti-competitively, businesses that add vibrancy to our town centres and I encourage them to raise their concerns with the CMA, our communities. They have an important role to play, because it is within its powers to look at this area. The not only at an economic level but in supporting our CMA will have wide-ranging powers from 1 April to communities. tackle such behaviour, and I will write to it with a I repeat my thanks to my hon. Friend for the opportunity transcript of this debate to highlight the concerns that to debate this issue today. I hope that I have managed to have been raised today and to make sure that they are make it clear that the Government and the competition on its radar. authorities are concerned about this issue; it is an important issue that we take seriously. I appreciate the Looking more broadly than at the supply of newspapers, difficulties currently being faced by independent retailers; the Government are aware of the need to support small it is not an easy time for them. I hope that, as the retailers, to help to drive sustained growth. My hon. economy slowly starts to return to health, small retailers Friend highlighted some of the things that the Government will be able to take advantage of the opportunities that have done. For example, the autumn statement announced exist for them, and I encourage hon. Members to raise the biggest business rate support package for 20 years, their concerns with the CMA. As I said, I will write to to try to support small businesses, with measures including the CMA myself, to ensure that it takes on board the extending the doubling of the small business rate relief; concerns that have been raised today. giving a discount of £1,000 for smaller retail premises; and introducing the option to pay bills over 12 months Question put and agreed to. rather than 10. We are keen to support small businesses, particularly as we come out of the difficult financial 4.57 pm circumstances that we have been in recently. Sitting adjourned.

5P Petitions19 MARCH 2014 Petitions 6P

Declares that her bank accounts have been frozen Petition and money taken by Redbridge London Borough and she is not being allowed to publicly complain. Furthermore Wednesday 19 March 2014 she has not been allowed to address the court and local authority are trying to stop her visiting Parliament. PRESENTED PETITION The Petitioner therefore requests that the House of Petition presented to the House but not read on the Floor Commons Justice Committee and the government change Freezing of Bank Accounts the law to stop this happening. The Petition of Miss Enid L. Gibson, living in England And the Petitioner remains, etc. a woman of 94 years of age who worked as a midwife and every branch of nursing, [P001335]

589W Written Answers19 MARCH 2014 Written Answers 590W

Sajid Javid: The Financial Conduct Authority (FCA) Written Answers to is an independent non-governmental body that operates within the statutory framework agreed by Parliament. Questions The Treasury has no general power of direction over the FCA and cannot intervene in its day-to-day operations. The FCA has however confirmed that, along with Wednesday 19 March 2014 various authorities around the globe, it is investigating allegations of misconduct and manipulation in foreign exchange markets. TREASURY Housing: Prices Banks: EU Action Teresa Pearce: To ask the Chancellor of the Exchequer pursuant to the Autumn Statement of 5 December Mr Binley: To ask the Chancellor of the Exchequer 2013, Official Report, column 1130, what his definition what assessment he has made of the current activities is of stable house prices; and what steps he is taking to of the high level expert group on the structure of the achieve such stability. [191150] EU banking sector; and if he will make a statement. [166974] Nicky Morgan: While the Government does not have Sajid Javid: The High Level Expert Group published an explicit target for house prices, it has been clear its report on structural reform of the European Banking historically that periods of rapid growth followed by Sector in October 2012. The Government welcomed the decline have been damaging to the UK’s economic and structural reform recommendations of the Group, which financial stability. That is why the Government has would require European banks to establish a ring-fence established the independent Financial Policy Committee around its trading activities to separate it from its (FPC) in the Bank of England to ensure that emerging deposit bank. These proposals are compatible with the risks and vulnerabilities in the housing market are identified ring-fencing reforms which the Government is implementing and effectively addressed. through the Banking Reform Bill. The Government In addition the Government is making the vital reforms continues to engage with the European Commission in needed to address the long-term structural issues in the this important area. The European Commission issued housing market in reforming the planning system and its own consultation based on the Group’s findings increasing the supply of homes. The Government has earlier this year and will issue a summary of responses already committed to invest over £11 billion in housing in due course. during this spending review period. Moreover, the number of housing starts increased by 23% between 2012 and Credit 2013.

Caroline Dinenage: To ask the Chancellor of the Non-domestic Rates: Manufacturing Industries Exchequer if he will bring forward proposals to ensure greater transparency in credit scoring procedures. Julie Hilling: To ask the Chancellor of the Exchequer [191704] (1) what estimate he has made of the number of manufacturing businesses that are currently liable for Sajid Javid: The Government believes effective credit business rates; [191660] scoring is vital to responsible lending decisions in consumer (2) if he will estimate the cost to the Exchequer of credit and business lending markets. introducing a business rates holiday for investment in All credit reference agencies (CRAs) will be regulated new plant and machinery in 2015-16; [191657] by the FCA from 1 April 2014. CRAs will be subject to (3) if he will estimate the cost to the Exchequer of the FCA’s high-level standards and a number of rules extending £1,000 retail sector business rates relief to regarding credit reference business which are being manufacturers. [191661] carried over from existing legislation and OFT guidance. The Government has also recently consulted on proposals Mr Gauke: No estimate has been made by the Treasury to require banks to share information on their SME of: customers with other lenders through CRAs and will the number of manufacturing businesses that are liable for provide an update shortly. The proposals are intended business rates; to improve the ability of challenger banks and alternative the cost of extending the £1,000 retail sector business rates finance providers to conduct accurate SME credit scoring relief to manufacturers; or and, by levelling the playing field between providers, introducing a business rates holiday for investment in new make it easier for SMEs to seek a loan from a lender plant and machinery in 2015-16. other than their bank. Financial Markets BUSINESS, INNOVATION AND SKILLS Steve Baker: To ask the Chancellor of the Exchequer with reference to the remarks made by the President of Consumers: Protection German regulator Bafin on 17 January 2014 on manipulation of currency rates and prices, if he will Mike Crockart: To ask the Secretary of State for direct the Financial Conduct Authority to investigate Business, Innovation and Skills what guidance his currency and precious metals markets. [192001] Department has issued to retailers on the Sale of 591W Written Answers19 MARCH 2014 Written Answers 592W

Goods Act 1979 as amended by the Sale and Supply of Where surplus property is awaiting disposal or lease Goods to Consumers Regulations 2002 in respect of end, the Government looks to explore all disposal options, decisions on offering a full or partial refund after six including commercially sub-letting all or part of the months for a faulty good. [192378] space. Surplus property is listed on gov.uk. Where surplus property is awaiting disposal or lease Jenny Willott: The Department published ″A Trader’s end but cannot yet be sold or sub-let commercially, the Guide: The Law Relating to the Supply of Goods and Space for Growth scheme, run by the Government Services″ in April 2005. Property Unit, invites small and medium-sized businesses, charities and social enterprises to utilise this space for Intelligence Services free, boosting economic growth. Over 1,500 workstation spaces are now available in 57 different locations around Nicholas Soames: To ask the Secretary of State for England. Business, Innovation and Skills what his assessment is I have approached the chief executives of the of the potential financial and commercial implications Department’s executive agencies (Insolvency Service, for the UK information techology industry of the Companies House, National Measurement Office, release of classified material relating to the operation Intellectual Property Office, UK Space Agency, Ordnance of the intelligence and security services by Edward Survey, Met Office, Land Registry and the Skills Funding Snowden; and if he will make a statement. [191824] Agency) and they will respond to the hon. Member directly. Michael Fallon: As my right hon. Friend the Prime Information for non-departmental public bodies is Minister made clear on 16 October 2013, speculation not held centrally and could be provided only at prompted by Edward Snowden’s actions has been very disproportionate cost. damaging to national security. Letter from John Alty, dated 13 March 2014: Mass Media: Competition I am responding in respect of the Intellectual Property Office to your Parliamentary Question tabled 12th March 2014 , to the Secretary of State for Business, Innovation and Skills. Alun Cairns: To ask the Secretary of State for Business, To ask the Secretary of State for Business, Innovation and Innovation and Skills if he will take steps to facilitate Skills, what estimate he has made of the empty property business the interoperability of electronic media and music between rates for the vacant properties recorded on the e-PIMS database different operating systems to prevent closed markets in owned by (a) his Department and (b) any executive agencies or this area. [190697] non-departmental public bodies of his Department in the current financial year. (191800) Jenny Willott: There are no plans to take such steps The Intellectual Property Office an Executive Agency and as consumers have the choice when buying digital media Trading Fund of the Department for Business, Innovation and to purchase a tied format or one which can be used on Skills has no vacant property. As such no business rates are being other systems, and there is already increasing interoperability paid for vacant properties. between systems. The market for electronic music and Letter from Ann Lewis, dated 13 March 2014: media is a global one and the Government is not able to I am replying on behalf of Companies House to your Parliamentary take unilateral action that would facilitate greater Question tabled 13 March 2014, UIN 191800 to the Secretary of interoperability of systems in the UK. State for Business, Innovation and Skills. Companies House does not have any empty properties and, Non-domestic Rates: Empty Property therefore, has not needed to make an estimate of this kind. Letter from Ed Lester, 13 March 2014: Hilary Benn: To ask the Secretary of State for Business, I write on behalf of Land Registry in response to your Innovation and Skills what estimate he has made of the Parliamentary Question tabled on 12 March 2014 which asked empty property business rates for the vacant properties the following: recorded on the e-PIMS database owned by (a) his To ask the Secretary of State for Business, Innovation and Department and (b) any executive agencies or non- Skills, what estimate he has made of the empty property business departmental public bodies of his Department in the rates for the vacant properties recorded on the e-PIMS database current financial year. [191800] owned by (a) his Department and (b) any executive agencies or non-departmental public bodies of his Department in the current financial year. Jenny Willott: The Department does not own any properties. Please see the table for the requested information. Since May 2010 the central Government estate was I hope that you find this helpful. far larger than required and taxpayers were paying to Section 44a maintain, run and rent properties which were under- (S44a) occupied while other parts of the freehold estate remained Empty building (temporary vacant. Building relief received vacant relief) The Government Property Unit has been supporting Building name (£) received (£) Departments to rationalise rapidly the Government’s Plymouth Drakes Hill — 8,020 estate including by taking a whole of Government view Plymouth Eagle House — 3,526 of property. Since May 2010 over £1.25 billion has been Nottingham Chalfont 115,955 — raised by selling surplus freehold properties. Through Drive the exiting of property across the central civil estate, we Harrow Lyon House — 59,401 have also delivered cumulative, gross run rate savings of Gloucester Twyver — 2,080 over £454 million per annum. House 593W Written Answers19 MARCH 2014 Written Answers 594W

database owned by the Department and any executive agencies or Section 44a non-departmental public bodies of the Department in the current (S44a) financial year. Empty building (temporary Building relief received vacant relief) The National Measurement Office (NMO) has no vacant Building name (£) received (£) properties recorded on the e-PIMS database and accordingly the estimate of empty property business rates for NMO is nil for the Peterborough Touthill — 19,951 current financial year. Close Letter from Barbara Spicer, dated 17 March 2014: Telford Stafford 7,840 — Park Thank you for your question asking the Secretary of State for Business, Innovation and Skills, what estimate he has made of the Peterborough Touthill 20,277 — Close empty property business rates for the vacant properties recorded on the e-PIMS database owned (a) his Department and (b) any Gloucester Twyver — 1,820 executive agencies or non-departmental public bodies of his House Department in the current financial year (191800). Birkenhead Rosebrae — 48,472 Court Please be advised that the vacant properties for Skills Funding Agency, recorded on e-PIMS, are the following: Gloucester Twyver — 1,326 House Birmingham (NTI Building), Brighton, Ipswich, Fareham, Total 144,073 144,595 Coventry (Cheylesmore House North 2 floors). The business rates paid for these empty premises in 2013/14 Total £288,667 — — amount were the following: Notes: Birmingham = £178,980 1. Empty building rates relief received: Brighton =£44,745 Empty rates relief was received on vacant buildings that became Ipswich = £60,378 vacant and due to be sold or we vacated due to lease expired. 2. S44a (temporary vacant rates relief) received: Fareham = £89,019 Section 44a was awarded for vacate space that we either being Coventry = £180,412 refurbished or a tenant had vacated and was then reoccupied a short I hope this satisfactorily addresses your question. If you have time after. any follow up queries, please let me know. Letter from Dr Vanessa Lawrence CB, dated 13 March Letter from David Parker: 2014: Thank you for your question addressed to the Secretary of As Director General and Chief Executive of Ordnance Survey, State for Business, Innovation and Skills, to ask what estimate he I have been asked to respond to your Parliamentary Question has made of the empty property business rates for the vacant asking the Secretary of State for Business, Innovation and Skills, properties recorded on the e-PIMS database owned by (a) his what estimate he has made of the empty property business rates Department and (b) any executive agencies or non-departmental for the vacant properties recorded on the e-PIMS database owned public bodies of his Department in the current financial year. by (a) his Department and (b) any executive agencies or non- The UK Space Agency is an Executive Agency of the Department departmental public bodies of his Department in the current of Business, Innovation and Skills and it does not own any financial year. properties. Ordnance Survey has had no vacant properties recorded on e-PIMS for the current financial year. Offshore Wind Investment Organisation Should you have any further questions, please let me know. I hope this information is helpful. Mr Iain Wright: To ask the Secretary of State for Letter from Richard Judge, dated 14 March 2014: Business, Innovation and Skills when he expects the chief executive of the Offshore Wind Investment The Secretary of State for Business, innovation and Skills has asked me to reply to you directly in respect of your question Organisation to be appointed. [192004] (2013/3169); asking what estimate has been made of the empty property business rates for the vacant properties recorded on the Michael Fallon: The Offshore Wind Investment e-PIMS database owned by the Department and any executive Organisation already has a strong leadership team in agencies in the current financial year. place from industry with a senior industrial expert in The information supplied relates only to the Insolvency Service. post since January 2014 to lead the organisation’s strategy, The Insolvency Service has no vacant properties recorded on and a chief operating officer in post since September the e-PIMS database. 2013. Discussions are ongoing on the appointment of a Letter from John Hirst, dated 14 March 2014: permanent industry leader. I am replying on behalf of the Met Office to your Parliamentary Postal Services Question tabled on 12 March 2014, UIN 191800 to the Secretary of State for Business, Innovation and Skills. Ian Murray: To ask the Secretary of State for Business, The Met Office owns no vacant properties. There is one vacant Innovation and Skills (1) what assessment he has made property leased by the Met Office recorded on the e-PIMS database. Business rates payable on the premises in 2013-14 are of the potential effect of end-to-end competition in the £21,666. The lease on this property expires at the end of 2014 and postal sector on postal workers’ pay and terms and the premises will be handed back to the landlord at that point. conditions of employment; [192236] I hope this helps. (2) what assessment he has made of the effect of Letter from Peter Mason, dated 14 March 2014: other postal operators extending end-to-end services on postal services in rural areas; [192237] I am responding in respect of the National Measurement Office (NMO), an executive agency of the Department for Business, (3) what assessment he has made of the effect on the Innovation and Skills (BIS) to your Parliamentary Question sustainability of the universal postal service of the tabled on 12 March 2014, asking for estimated the empty property plans of other postal operators to extend end-to-end business rates for the vacant properties recorded on the e-PIMS postal services. [192238] 595W Written Answers19 MARCH 2014 Written Answers 596W

Jenny Willott: It is Ofcom’s responsibility as the The Manufacturing Advisory Service (MAS) contract independent regulator for postal services in the UK to is worth £59.3 million from January 2012 to March monitor any impacts of market competition on the 2015, with £7 million earmarked for supply chain initiatives. provision of the universal service in the UK. Parliament Since January 2012, MAS has helped around 1,200 food has given Ofcom the powers to intervene if the provision and drink manufacturing firms in England. of the universal service is ever at serious risk from the effects of postal competition. Wind Power: Seas and Oceans Ofcom has an effective and ongoing monitoring regime to track the financial sustainability of the universal Mr Iain Wright: To ask the Secretary of State for postal service. In March 2013 Ofcom published guidance Business, Innovation and Skills with reference to the on its approach to assessing the impact of end-to-end Offshore Wind Industrial Strategy, what the date and competition in the postal sector. In its November 2013 location of each Share Fair event that has taken place annual monitoring report Ofcom considered to date were; and how many companies attended each “it is not necessary to impose any additional regulatory conditions such event. [192015] on end-to-end operators to secure the ongoing provision of a universal postal service at this point in time”. Michael Fallon: The trade association RenewableUK If Ofcom’s ongoing monitoring regime does not prompt has organised two offshore wind Share Fair events. The the need for any earlier assessment, it will carry out a first was held on 13 June 2013 at the RenewableUK full review of the impact of market competition towards offshore wind conference in Manchester, where the end of 2015 as a matter of course. This will ensure ScottishPower Renewables, Statoil and Dong Energy that the regulator has made a detailed assessment of the made presentations. The second was held on 5 November actual and potential impact of emerging end-to-end 2013 at the RenewableUK annual conference in competition based on a better understanding of how Birmingham, where Siemens, RWE and E.ON made the postal market is developing. More information about presentations. Over the two events, there were over Ofcom’s regulatory regime can be found on its website 400 attendees, representing over 200 organisations. www.ofcom.org.uk Any questions or concerns relating to postal workers’ Mr Iain Wright: To ask the Secretary of State for pay and terms and conditions of employment are the Business, Innovation and Skills with reference to the operational responsibility of Royal Mail and should Offshore Wind Industrial Strategy, what progress he therefore be raised direct with Royal Mail’s management. has made in providing an assessment of future markets for individual elements of an offshore wind farm. Public Sector: Food [192016]

Zac Goldsmith: To ask the Secretary of State for Michael Fallon: The trade association RenewableUK, Business, Innovation and Skills pursuant to the answer as one of the partners in the Manufacturing Advisory of 11 March 2014, Official Report, columns 170-1W, Service GROW: Offshore Wind programme, has put in on public sector: food, how much funding is provided place a database which holds information on the potential by his Department to strengthen supply chains. future market for individual elements of an offshore [191715] wind farm. The information on the database is being used by GROW: Offshore Wind programme advisers in Michael Fallon: BIS is responsible for two main streams order to provide relevant information and advice to the of dedicated funding for strengthening supply chains: companies being supported by the programme. In addition, the Advanced Manufacturing Supply Chain Initiative a report for The Crown Estate, Offshore Wind: A 2013 (AMSCI) and the Manufacturing Advisory Service. supply chain health check, published in November 2013, AMSCI is a £245 million Government supply chain provides information on the capacity of the industry to fund with four active national rounds and a regional meet market demand across Europe for each sub-element scheme. For the latest round, the Secretary of State for of the supply chain. Business, Innovation and Skills, the right hon. Member for Twickenham (Vince Cable), announced on 4 March Mr Iain Wright: To ask the Secretary of State for 2014 that nine projects will receive £129 million of Business, Innovation and Skills with reference to the support: £53 million of Government funding is leveraging Offshore Wind Industrial Strategy, what progress he in more than £75 million of private money. The projects has made on the engagement plan for the communication will directly create 1,369 jobs and safeguard a further of benefits of offshore renewable energy across Europe 2,525. At least 57 small and medium-sized enterprises and globally through Norstec and promotion of local (SMEs) are involved in the successful consortia. A wide benefits through the Cities for Offshore Renewable range of key sectors from the Government’s industrial Engineering. [192017] strategy are represented, including automotive, construction, information economy and life sciences. Michael Fallon: Norstec are leading on the development This latest round also includes a project in the food of an engagement strategy for offshore wind across and drink manufacturing sector; Crown Packaging Limited, Europe and globally.They will be launching a public-facing based in Didcot and Wantage (Oxfordshire), will be campaign in the first half of this year using industry receiving a grant of £1.9 million as part of a £3.8 ambassadors to communicate the benefits of offshore million project they are leading with partners in West wind prior to Global Wind Day in June 2014. A Yorkshire and Carlisle. This project will develop a new representative from the Centres for Offshore Renewable and innovative metal can manufacturing process, creating Engineering (CORE) will join Norstec meetings to support up to 32 permanent jobs and safeguarding 267 jobs. the development of the engagement strategy and Global 597W Written Answers19 MARCH 2014 Written Answers 598W

Wind Day. This partnership between Norstec and the Mr Iain Wright: To ask the Secretary of State for CORE will encourage a local perspective on the benefits Business, Innovation and Skills with reference to the that can be derived from offshore renewable energy. Offshore Wind Industrial Strategy, what export opportunities have (a) been identified and (b) materialised Mr Iain Wright: To ask the Secretary of State for into export sales for UK-based companies operating in Business, Innovation and Skills with reference to the the offshore wind industry through the high value Offshore Wind Industrial Strategy, how much of the opportunities programme. [192021] £19.9 million from the Regional Growth Fund to deliver the MAS Offshore Wind Supply Chain has been Michael Fallon: UK Trade & investment has identified used to date; and if he will make a statement. [192018] export opportunities in China, Taiwan and Northern Europe through the High Values Opportunities Programme. Michael Fallon: The Regional Growth Fund grant for To date UK companies have achieved export sales in the Manufacturing Advisory Service GROW: Offshore excess of £1.4 million. Wind programme totals £19.9 million. The scheme launched in August 2013 and will run until May 2015, aiming to Mr Iain Wright: To ask the Secretary of State for work directly with the supply chain in England and Business, Innovation and Skills with reference to the offer funding and advice to improve its competitiveness. Offshore Wind Industrial Strategy, what progress he Between the scheme launch and end December 2013, it has made on expanding the scope of the Offshore Wind spent approximately £2 million on interventions and Manufacturing Funding scheme for England. [192022] support for small businesses looking to work in the offshore wind sector. Gregory Barker: I have been asked to reply on behalf of the Department of Energy and Climate Change. Mr Iain Wright: To ask the Secretary of State for As announced in the Offshore Wind Industrial Strategy, Business, Innovation and Skills with reference to the we expanded the Offshore Wind Manufacturing Funding Offshore Wind Industrial Strategy (OWIS), what scheme to allow ports/ landowners at coastal locations progress he has made on ensuring the Offshore Wind in assisted areas of England to apply on their own, with Investment Organisation is operational; if he will list the strict condition that major manufacturing needed to activities of the organisation since its launch in the be secured at the site. This approach was developed to OWIS; and if he will make a statement. [192019] enable ports/landowners that were in advanced negotiations with manufacturers to demonstrate the level of public support potentially available as part of the overall package Michael Fallon: The Offshore Wind Investment they were presenting in respect of their site. Organisation (OWIO) has been operational since September 2013 and has recruited eight employees including four The scheme closed to new applicants on the 15 October senior specialists from industry. OWIO has developed a 2013. Owing to the confidential nature of commercial strategy focusing on priority opportunities for building negotiations we cannot comment on the status of potential the UK’s offshore wind supply chain, and is working applications to the scheme. We are in discussions with a with companies to support their delivery. The organisation number of companies interested in investing in the UK. works closely with this department, the Department of Under the Grant for Business Investment scheme, Energy and Climate Change and UK Trade & Investment’s information on grant offers for sums greater than £75,000 network of overseas posts. is normally published following the payment of the first The team has engaged with around 100 companies in instalment of the grant, including the name and location the offshore wind sector and had detailed discussions of the recipient of the grant and the size of the grant on the supply chain with around 20 developers and offered. suppliers. The team organised an oversubscribed side Mr Iain Wright: To ask the Secretary of State for event at the November 2013 European Wind Energy Business, Innovation and Skills with reference to the Association (EWEA) conference in Frankfurt and Offshore Wind Industrial Strategy, what projects in participated in key events for the industry including the offshore wind have received investment from the Green Franco-British Offshore Wind Energy event, Wind Energy Investment Bank; and what the value of that investment Asia in Korea, and the EWEA conference in Barcelona. is for each such project. [192023]

Mr Iain Wright: To ask the Secretary of State for Michael Fallon: Three offshore wind projects have Business, Innovation and Skills with reference to the received investment from the UK Green Investment Offshore Wind Industrial Strategy, what progress he Bank (GIB). The first, in December 2012, was Walney has made on a supply chain analysis in the offshore Wind Farm, which received £46 million of its total £224 wind industry. [192020] million investment from the GIB. The second, in March 2013, was Rhyl Flats, which received £57 million of its £115 million funding from the GIB. Finally, the London Michael Fallon: As per the commitment in the UK’s Array wind farm received £59 million of GIB investment Offshore Wind Industrial Strategy, an analysis of the in October 2013. UK supply chain for offshore wind has been undertaken and was published on 6 February 2014 in a report entitled ’UK Offshore Wind Supply Chain: Capabilities ENVIRONMENT, FOOD AND RURAL AFFAIRS and Opportunities’. The analysis, produced by BVG Air Pollution: Denton Associates, assessed the extent of industrial capability in the UK offshore wind supply chain and estimated the Andrew Gwynne: To ask the Secretary of State for size of the UK opportunity in each major component Environment, Food and Rural Affairs what progress of the offshore wind supply chain. has been made towards bringing the standard of air 599W Written Answers19 MARCH 2014 Written Answers 600W quality in those parts of Denton and Reddish constituency United Utilities Water designated as an air quality management area to within the guideline limits. [192137] Andrew Gwynne: To ask the Secretary of State for Environment, Food and Rural Affairs what the leakage Dan Rogerson: Tameside and Stockport local authorities rate for the United Utilities Water Company was in the have designated air quality management areas within latest period for which figures are available; and what the Denton and Reddish constituency.They have introduced change there has been in that rate in the last five years. a range of measures, focusing particularly on transport, [192140] to reduce nitrogen dioxide (NO2). These include measures to reduce congestion and promote sustainable transport, Dan Rogerson: Companies must publish information which have helped to control NO levels. NO is the 2 2 on their total leakage each year on their websites. Water main pollutant of concern and is a challenging pollutant companies should operate at the Sustainable Economic for the majority of local authorities. DEFRA is working Level of Leakage, which is the level of leakage that with local authorities to better understand the evidence gives consumers the best value for money. Ofwat has set available and to improve air quality to within the guideline annual leakage reduction targets for each company limits. through to 2015 and will take action if companies fail Nature Conservation to deliver. In 2013-14 United Utilities was set a target of 464 Jim Fitzpatrick: To ask the Secretary of State for megalitres per day. It lost an average of 457 megalitres Environment, Food and Rural Affairs what steps her of water per day. By comparison, in 2008-09 United Department takes in ensuring that CITES-listed Utilities lost an average 462 megalitres per day. animals have their welfare needs met from when they are prepared and shipped for (a) import to and (b) export from the UK. [191705] COMMUNITIES AND LOCAL GOVERNMENT George Eustice: CITES requires that the transport of all live animals must be in compliance with the CITES Homelessness guidelines for Transport and Preparation for Shipment of Live Wild Animals or, in the case of air transport, Ms Buck: To ask the Secretary of State for Communities the Live Animals Regulations published by the International and Local Government how much his Department has Air Transport Association (IATA). In essence, given to each (a) local authority and (b) other organisation transportation should be well planned, well prepared to deliver the Gold Standard homelessness initiative. and effectively performed. Animals should never be [191532] transported in a way likely to cause them unnecessary fear, injury, damage to health or undue suffering. These Kris Hopkins [holding answer 17 March 2014]: We requirements are drawn to the attention of all applicants have invested £1.7 million into the Homelessness Gold seeking the relevant permits for the shipment of CITES Standard to help local authorities to deliver effective listed animals on the application forms. Signature by and cost efficient homelessness prevention services. the applicant accepts compliance with these requirements The scheme is delivered by the National Practitioner and applies equally to imports and exports. Support Service, a team of local authority practitioners Live animals imported from countries outside the based in Winchester city council, with technical support EU are imported into the UK through a designated and training provided by the National Homelessness Border Inspection Post. In the case of exports from the Advice Service (Shelter). Funding breakdown for 2012-13 UK, where a permit is required, official veterinary and 2013-14 is as follows: surgeons (private veterinary practitioners specifically trained and appointed for the purpose) inspect and £ certify that the animals presented are fit to transport. National Practitioner Support Service Sewers (Winchester city National Homelessness council) Advice Service (Shelter) Chris Ruane: To ask the Secretary of State for 2012-13 430,000 300,000 Environment, Food and Rural Affairs what recent progress 2013-14 600,000 400,000 has been made between his Department, Ofwat and the water industry on appropriate risk-based standards for Total 1,030,000 700,000 public sewerage systems. [189795] Scheme total 1,730,000 Dan Rogerson: When implemented, Section 42 of the Flood and Water Management Act 2010 will mean new sewers from new properties in England will be owned Ms Buck: To ask the Secretary of State for Communities and maintained by the appropriate water and sewerage and Local Government whether the National Housing company. The legislation also requires standards for the Advice Service will continue to deliver the Homelessness construction of new sewers to be published by the Gold Standard in 2014-15. [192075] Minister. Water UK and representatives of property developers Kris Hopkins: The £1.7 million Homelessness Gold are currently working through the remaining issues that Standard supports local authorities to deliver effective must be finalised prior to implementation, and will be and cost efficient homelessness prevention services. It is providing DEFRA with recommendations in April 2014. delivered by the National Practitioner Support Service, 601W Written Answers19 MARCH 2014 Written Answers 602W a team of local authority practitioners seconded to Planning Permission: Greater Manchester Winchester city council, with technical support and training provided by the National Homelessness Advice Andrew Gwynne: To ask the Secretary of State for Service (Shelter). Communities and Local Government what proportion A decision on further funding for the Gold Standard of planning applications to build on sites in (a) Greater will be made in due course. Manchester, (b) Tameside metropolitan borough and (c) Stockport metropolitan borough involved building Housing: Newcastle Upon Tyne on designated green belt land in the last period for which figures are available. [192153] Chi Onwurah: To ask the Secretary of State for Communities and Local Government what estimate he Nick Boles: Information on the proportion of planning has made of the benefits of self-help housing schemes applications which are on sites in the green belt is not for Newcastle upon Tyne’s housing stock. [191644] centrally available. Kris Hopkins [holding answer 17 March 2014]: There is growing interest in self build housing which has many advantages. It can be an affordable route to home ownership, providing home owners with the opportunity CULTURE, MEDIA AND SPORT to own a bespoke and sustainably designed high quality home. It also creates significant opportunities for smaller Tourism: Floods and medium sized home builders. The Government supports individuals and communities Dan Jarvis: To ask the Secretary of State for Culture, who want to build their own homes. This includes Media and Sport if she will estimate the cost of recent identifying 12 sites for self build as part of our surplus flooding to the leisure parks, piers and attractions public sector land disposal programme; making £30 million sector. [192206] available through our Custom Build Homes fund to provide; short-term project finance for group (multi-unit) Mrs Grant: We have not made an estimate of the self build projects and introducing an exemption for self costs of the recent flooding and storms to the leisure builders from the Community Infrastructure Levy. We parks, piers and attractions sector, as any cost would will also shortly be consulting on removing small scale also need to include potential impacts on business into housing projects from having to pay costly section 106 the summer. obligations. VisitEngland’s February survey of 869 tourism businesses The National Planning Policy Framework asks local in affected areas included 75 responses from businesses authorities to assess the demand for people who wish to in the attractions sector. Although 75 is a small sample, build their own homes and make provision for this in the survey showed that 59% of these attractions businesses their development plans. The Government’s recently advised that they had received fewer visitors than normal published Planning Practice Guidance provides advice for the time of year, with 12% saying they had received on this. fewer forward bookings than normal for the time of Planning Permission year and 16% advising that visitors had cancelled previously booked trips. It also suggested that 51% of attractions Fiona Bruce: To ask the Secretary of State for businesses in these areas had confirmed that flooding Communities and Local Government what help he had caused damage to their business, with only 9% gives to community groups to finalise their neighbourhood saying that their business hadn’t been affected in any plans and to protect them from legal appeal by developers way. where there is no local plan yet in place for their area. The £2 million package of support for tourism businesses [192049] in flood affected areas announced on 1 March will deliver practical help and advice on the ground, as well Nick Boles: We have put in place a £10.5 million as a focused marketing campaign to help boost trade support programme of direct support, grants and tools for Easter and early summer, which was launched on to help communities produce their neighbourhood plans. 17 March. Plans set the framework in which decisions on particular applications are taken locally. We have put plans at the UN Commission on the Status of Women heart of the planning system through our reforms in the Localism Act and National Planning Policy Framework. Mr Jim Cunningham: To ask the Secretary of State Over 960 communities have applied for a neighbourhood for Culture, Media and Sport what her objectives are area to be designated, the first step in neighbourhood for the UN Commission on the Status of Women. planning and three-quarters of councils have now published [192216] a local plan compared to only a third when this Government came to office. Mrs Grant: Our objectives at the 58th session of the The National Planning Policy Framework sets out United Nations Commission on the Status of Women clearly that plans may gain weight in planning decisions are to: before they are formally adopted or made. We have now (i) Achieve strong agreed conclusions on lessons learnt from set out in planning guidance where circumstances may the MDGs and the need to retain a standalone goal on empowering justify the refusal of planning permission on grounds girls and women and achieving gender equality, mainstreaming that an application would be premature in relation to gender throughout, and data disaggregation by sex and age, to the emerging local or neighbourhood plan. guide and inform the post 2015 framework; 603W Written Answers19 MARCH 2014 Written Answers 604W

(ii) In the run up to the 58th session, build a positive negotiation threat from international terrorism, regardless of the climate in relation to the priority theme and the post 2015 methodology employed, is currently assessed as ‘Substantial’ framework; meaning that an attack is a strong possibility. (iii) Enhance the UK’s reputation as an international leader on The Cyber Security Strategy, published in November advancing the rights of girls and women ; and, 2011, sets out how the UK will support economic (iv) Promote and showcase the UK’s initiatives to achieve prosperity and protect national security by building a gender equality. digital environment which is more resilient to cyber-attack, irrespective of whether the threat is posed by terrorists, criminals or state actors. To deliver the strategy, we have HOME DEPARTMENT put in place the National Cyber Security Programme which is backed up by £860 million of Government Counter-terrorism investment to 2016. EU Justice and Home Affairs Dr McCrea: To ask the Secretary of State for the Home Department what recent discussions she has had with the Northern Ireland Minister of Justice on Mr Raab: To ask the Secretary of State for the Home counter-terrorism issues. [191875] Department with which countries the EU is acting as a legal personality currently negotiating co-operation James Brokenshire: The Secretary of State for the agreements in the field of justice and home affairs. Home Department, my right hon. Friend the Member [191745] for Maidenhead (Mrs May), is regularly briefed on Northern Ireland Related Terrorism and counter-terrorism James Brokenshire [holding answer 14 March 2014]: issues and has meetings with officials and Ministers, In the areas for which the Home Office is responsible, including the Northern Ireland Minister of Justice, to the EU is currently negotiating cooperation agreements discuss a range of related matters. Details of these in the Justice and Home Affairs (JHA) field as a legal meetings cannot be disclosed. personality with the following countries: Algeria (EU Readmission Agreement), Crime: Nature Conservation Belarus (EU Readmission Agreement and Visa Facilitation Agreement), Justin Tomlinson: To ask the Secretary of State for Canada (Agreement on the exchange of Passenger Name the Home Department what steps she plans to take to Records), ensure that police forces create wildlife crime officer China (EU Readmission Agreement), posts; and if she will make a statement. [192200] Iceland (Agreements allowing participation in the EU’s IT Agency (eu-LISA) and in the European Asylum Support Office), Damian Green: In order for police and crime Liechtenstein (Agreements allowing participation in the EU’s commissioners to ensure that forces’ priorities across IT Agency (eu-LISA) and in the European Asylum Support England and Wales better reflect those of the communities Office), they serve, it is important that individual police forces Morocco (EU Readmission Agreement and Visa Facilitation have the flexibility to deploy their resources, including Agreement), those on wildlife crime, without interference from central Norway (Agreements allowing participation in the EU’s IT Government. Agency (eu-LISA) and Alongside individual police force activity, where wildlife in the European Asylum Support Office), crime is sufficiently serious, organised or complex, the Switzerland (Agreements allowing participation in the EU’s IT National Crime Agency will ensure that partners across Agency (eu-LISA) and in the European Asylum Support Office). the law enforcement community benefit from its The UK will not be bound by the Visa Facilitation co-ordination, tasking and intelligence arrangements, Agreements as they build on the borders and immigration as well as being able to access its specialist capabilities, aspects of the Schengen system, in which we do not as appropriate. participate. Cybercrime Female Genital Mutilation

Nicholas Soames: To ask the Secretary of State for Mr Nicholas Brown: To ask the Secretary of State for the Home Department (1) what assessment she has the Home Department (1) if she will set out how the made of the vulnerability of the UK to a terrorist (a) existence and (b) risk of female genital mutilation cyber-attack is; and if she will make a statement; to applicants for asylum in the UK is treated under the [191819] immigration rules; [191369] (2) what assessment she has made of the likelihood (2) how many requests for asylum in the UK cited of a terrorist cyber-attack on the UK; and if she will female genital mutilation as a factor in the asylum make a statement. [191820] application in each year for which figures are available; and how many such applications were (a) accepted James Brokenshire: The Government’s strategy for and (b) refused. [191370] countering terrorism, including the use of the internet by terrorists to carry out cyber-attacks against the UK, James Brokenshire: An individual who claims that is set out in ‘CONTEST’ which was published in July she would, on return to her home country, suffer female 2011. The likelihood of a terrorist attack on the UK, in genital mutilation may qualify for refugee status if she all of its manifestations, is kept under close review. The is able to demonstrate that her fear of return is well-founded. 605W Written Answers19 MARCH 2014 Written Answers 606W

Factors that are taken into account when assessing the (2) what the administrative costs associated with visa risk include evidence that female genital mutilation is and immigration applications received by the UK Visas knowingly tolerated by the authorities or that the authorities and Immigration Service which are not processed due are unable or unwilling to offer effective protection. The to reasons of eligibility were in each of the last three UK does not seek to remove individuals who face a real years. [191742] risk of persecution on return. Asylum decision-makers consider claims for international James Brokenshire: The information is as follows. protection carefully and sensitively and ensure that all In-Country Applications: evidence relating to an individual’s claim is taken into No pre-eligibility assessment is made on application. account. Each claim is considered on its own merits in An application is processed through to a determination, the light of country of origin information and guidance. whether that is a rejection for incorrect/fee application Specific guidance and training on gender-specific issues, form; in these instances a refund is made. including the risk of female genital mutilation, is provided Applications are fully case worked to other conclusions, to decision-makers. such as refusal and grant. Therefore, we can state that Information on the basis of claim for asylum is not there is no associated income, or expenditure related to centrally recorded, and the information requested in the eligibility assessments. right hon. Member’s second question could only be Overseas Applications: obtained through a manual search of individual case files. This would exceed the cost limit. The Immigration rules do not contain any pre-assessment eligibility criteria. The only circumstance in which an application is not processed is if no work has been done Human Trafficking on it, before biometrics have been taken. In these circumstances the applicant will be refunded the visa fee. Therefore there is no cost or income associated with Paul Blomfield: To ask the Secretary of State for the applications that have not been processed. Home Department pursuant to the answer of 14 January 2014, Official Report, column 481W,on human trafficking: Intelligence Services Victim Support Scheme, how many of the (a) 270 males and (b) 62 females referred to the Salvation Army since 1 July 2011 were provided shelter and Dr McCrea: To ask the Secretary of State for the assistance during a reflection and recovery period. Home Department what change in spending there has been in the security and intelligence agencies in the last [185645] three years. [191873]

Damian Green: I have been asked to reply on behalf James Brokenshire: Information on Government of the Ministry of Justice. spending can be found at: Further to my answer of 14 January 2014, Official www.gov.uk. Report, column 481W, 49 females and 237 males were The Spending Round 2010 set out the planned expenditure provided with shelter and assistance during their recovery for all Government Departments, including the security and reflection period between July 2011 and December and intelligence agencies, from 2010 to 2015. 2012. Provision of shelter and assistance was made where the individuals were referred to The Salvation Total spending for these Departments is provided in Army and where they gave their consent to receive this the security and intelligence agencies financial statement support. 2012-13, which can be found at: www.gov.uk/government/uploads/system/uploads/ attachment_data/file/246792/0027.pdf Immigration: Fees and Charges This shows total spend in 2010-11 was £1,928,312,000; £1,986,652,000 in 2011-12; and £2,028,365,000 in 2012-13. Naomi Long: To ask the Secretary of State for the Home Department if she will introduce a pre-consideration Police: Enfield eligibility test for visas and immigration applications where the associated fees exceed £500. [191740] Nick de Bois: To ask the Secretary of State for the Home Department how many (a) managerial, (b) James Brokenshire: The Home Office makes certain clerical and (c) operational Metropolitan Police staff checks before considering an application, for example in Enfield were paid more than (i) £42,000, (ii) £69,000 ensuring that an applicant’s biometric information has and (iii) £100,000 in the last year for which figures are been recorded and the correct fee has been paid. Eligibility available. [192256] checks form part of the consideration of an application. It is the responsibility of people applying to enter or Damian Green: The Home Office does not hold this remain in the UK to ensure that they meet the requirements information. of the immigration rules, or other relevant legislation. Unmanned Air Vehicles Naomi Long: To ask the Secretary of State for the Home Department (1) how much revenue the UK Visas Mr Watson: To ask the Secretary of State for the and Immigration Service received from application fees Home Department pursuant to the answer of 25 February where the application is not processed due to reasons of 2014, Official Report, column 292W, on unmanned air eligibility in each of the last three years; [191741] vehicles, whether any policies of her Department are 607W Written Answers19 MARCH 2014 Written Answers 608W developed or monitored through use of data collected of property. Since the 2010 general election over £1.25 by remotely-piloted aircraft systems not directly employed billion has been raised by selling surplus freehold properties. by her Department. [191664] Through the exiting of property across the central civil estate, we have also delivered cumulative, gross run rate James Brokenshire: The Home Office does not use savings of over £454 million per annum. data collected from Remotely Piloted Aircraft Systems Where surplus property is awaiting disposal or lease (RPAS) to monitor or develop policies regardless of end, the Government looks to explore all disposal options, whether the RPAS is directly employed by the Department including commercially sub-letting all or part of the or not. space. Surplus property is listed on: www.gov.uk There is no liability at taxpayers’ expense for business CABINET OFFICE rates on any vacant Cabinet Office properties in the current financial year. Employment: Brigg Lone Parents: Yorkshire and the Humber Andrew Percy: To ask the Minister for the Cabinet Office how many people in Brigg and Goole constituency Andrew Percy: To ask the Minister for the Cabinet no longer claim unemployment benefit as a result of Office what estimate he has made of the number of gaining employment in 2013. [192280] children being cared for by a single parent in (a) Brigg and Goole constituency and (b) Yorkshire and the Mr Hurd: The information requested falls within the Humber. [192279] responsibility of the UK Statistics Authority, I have asked the authority to reply. Mr Hurd: The information requested falls within the Letter from Glen Watson, dated March 2014: responsibility of the UK Statistics Authority. I have As Director General for the Office for National Statistics asked the authority to reply. (ONS), I have been asked to reply to your Parliamentary Question Letter from Glen Watson, dated March 2014: asking the Secretary of State for Work and Pensions how many people in Brigg and Goole constituency no long claim unemployment As Director General for the Office for National Statistics, I benefit as a result of gaining employment in 2013. (192280) have been asked to reply to your recent Parliamentary Question asking the Minister for the Cabinet Office what estimate has been The Office for National Statistics (ONS) compiles data on the made of the number of children being cared for by a single parent number of people claiming Jobseeker’s Allowance (JSA), the in (a) Brigg and Goole constituency and (b) Yorkshire and the main unemployment related benefit, from the JobcentrePlus Humber. (192279) Administrative System. The number of dependent children living in lone parent families It is not possible to provide data on the number of people who in different areas of the UK can be estimated using the Annual have ceased claiming JSA. As an alternative we have provided Population Survey. Dependent children are those living with their data on the total number of claims that have ceased during 2013 parent(s) and either (a) aged under 16, or (b) aged 16 to 18 in which will include multiple instances for some individuals over full-time education, excluding children aged 16 to 18 who have a the year. spouse, partner or child living in the household. In 2012, an The reason for moving off JSA is not known for over 40% of estimated 2,000 dependent children were living in a lone parent UK cases and in many of these cases the claimant will have family in Brigg and Goole constituency and 265,000 in Yorkshire moved into employment. Of the 4,830 claims in Brigg and Goole and The Humber. constituency that ended during 2013, 2,476 were for the reason of As with any sample survey, estimates from the Annual Population “found work” but this will be an underestimate of the total Survey are subject to a margin of uncertainty. number of moves into employment. National and local area estimates for many labour market statistics, including employment, unemployment and claimant Statistics count are available on the NOMIS website at: http://www.nomisweb.co.uk. Katy Clark: To ask the Minister for the Cabinet Office if he will take steps to ensure that all statistics Empty Property identified as high impact outputs with less widespread support by the Office for National Statistics in its Hilary Benn: To ask the Minister for the Cabinet consultation on statistical products 2013 will continue Office what estimate he has made of the empty property to be funded for 2014-15. [191818] business rates for the vacant properties recorded on the e-PIMS database owned by (a) his Department and Mr Hurd: I refer the hon. Member to the answer I (b) any executive agencies or non-departmental public gave on 17 March 2014, Official Report, column 470W. bodies of his Department in the current financial year. [191802] Sugar Mr Maude: At the time of the last general election the central Government estate was far larger than required Keith Vaz: To ask the Minister for the Cabinet Office and taxpayers were paying to maintain, run and rent how much sugar was purchased for No. 10 Downing properties which were under-occupied while other parts Street in 2013. [192416] of the freehold estate remained vacant. The Government Property Unit has been supporting Mr Maude: The Prime Minister’s Office is an integral Departments to rationalise rapidly the Government’s part of the Cabinet Office. estate including by taking a whole of Government view This information is not held. 609W Written Answers19 MARCH 2014 Written Answers 610W

Unemployment: Clwyd Paul Flynn: To ask the Secretary of State for Energy and Climate Change what aspects of the proposed Chris Ruane: To ask the Minister for the Cabinet parent body organisation contracts planned for (a) Office what recent estimate he has made of the number Magnox Limited and (b) Research Sites Restoration of jobseekers over the age of (a) 50 and (b) 60 years in Limited will be covered by commercial confidentiality Vale of Clwyd constituency. [192078] restrictions on disclosure; and for what reasons each such aspect will be so covered. [191940] Mr Hurd: The information requested falls within the responsibility of the UK Statistics Authority. I have Michael Fallon: It is the NDA’s standard practice to asked the authority to reply. publish redacted versions of its principal contracts, Letter from Glen Watson, dated March 2014: including contracts with the site licence companies (SLCs) and parent body organisations on its website, and it will As Director General for the Office for National Statistics (ONS), I have been asked to reply to your Parliamentary Question do so in this case at an appropriate point after the award asking the Minister for the Cabinet Office what recent estimate he of the contracts. The draft contracts, used as a basis for has made of the number of jobseekers over the age of (a) 50 and the invitation to submit final tenders, are not commercially (b) 60 in Vale of Clwyd constituency. (192078) confidential and are available on request from the Nuclear For this question Jobseekers has been interpreted as those Decommissioning Authority. These drafts cover the claiming Jobseekers Allowance (JSA) which covers about half of arrangements between the NDA and the contractor those considered to be unemployed. The Office for National concerning confidentiality once the contact is placed. Statistics (ONS) compiles data on the number of people claiming The contents of the winning bid will remain confidential JSA from the JobcentrePlus Administrative System. until the contract is awarded. The table shows the number of people aged 50 to 59, 60 and over and 50 and over who were claiming Jobseeker’s Allowance in Paul Flynn: To ask the Secretary of State for Energy January 2014 resident in the requested parliamentary constituency. and Climate Change what the total expected value is of National and local area estimates for many labour market the parent body contracts to be awarded to (a) statistics, including employment, unemployment and claimant Magnox Limited and (b) Research Sites Restoration count are available on the NOMIS website at: Limited; and what the basis for valuing each contract http://www.nomisweb.co.uk. was. [192039] Number1 of people claiming jobseeker’s allowance in Vale of Clwyd, January 2014 Michael Fallon: The work that is subject to the Magnox Not seasonally adjusted and Research Sites Restoration Ltd competition is valued at between £6 billion and £7 billion. The winning bidder Aged50to59 270 will be selected on the basis of the most economically Aged 60 and over 40 advantageous tender. Aged 50 and over 310 1 Rounded to nearest 5. Totals may not equal the sum of the independently Offshore Industry rounded components. Source: Mr Nicholas Brown: To ask the Secretary of State for JobcentrePlus Administrative System Energy and Climate Change what assessment he has made of the economic viability of oil and gas extraction from the UK continental shelf in the next ENERGY AND CLIMATE CHANGE decade. [191720] Environment Protection: Taxation Michael Fallon: Sir Ian Wood’s review of the UK continental shelf identified the potential prize for properly Julie Elliott: To ask the Secretary of State for Energy managing the UKCS, a range of 12-24 billion barrel of and Climate Change whether the European Commission oil equivalent that could yet be recovered from the has reached a conclusion in its consideration of the North sea, which is consistent with DECC estimates. state aid case for the compensation scheme for the Government and industry need to work hard together carbon floor price. [191709] to secure future economic benefits for the UK, which will go well beyond the next decade. The Government Michael Fallon: I have been asked to reply on behalf supports Sir Ian’s view, and will publish a fuller formal of the Department for Business, Innovation and Skills. response later in the spring. I refer the hon. Member to the answer I gave on Full details of our current estimates relating to UK 17 March 2014, Official Report, column 419W. continental shelf reserves and economic recovery can Nuclear Decommissioning Authority be found at: https://www.gov.uk/oil-and-gas-uk-field-data Paul Flynn: To ask the Secretary of State for Energy and Climate Change what value-for-money audit procedure will apply the parent body organisation contracts planned WALES for (a) Magnox Limited and (b) Research Sites Restoration Limited. [191939] Trade Union Officials

Michael Fallon: The Nuclear Decommissioning Authority Alun Cairns: To ask the Secretary of State for Wales will put in place a Benefits Realisation Plan to monitor what funding his Department provided for staff to the delivery of value for money. This will be subject to carry out trade union activities in each of the last three internal audit, and to external audit by the National. years; and how many days staff spent on those Audit Office. activities in those years. [190695] 611W Written Answers19 MARCH 2014 Written Answers 612W

Stephen Crabb: The Wales Office is not a direct Jane Ellison: The current lung allocation system, employer and all trade union services are provided including those to cystic fibrosis patients, is monitored through the Ministry of Justice. No staff at the Wales closely to ensure there is equity for patients across the Office have undertaken trade union activities. United Kingdom. The most recent analysis showed no statistically significant differences in allocation across Trident the UK lung transplant centres. NHS Blood and Transplant (NHSBT) continue to consider practical steps within Jonathan Edwards: To ask the Secretary of State for the current allocation system which could improve patient Wales what representations he has received from the outcomes. Welsh Government on relocating Trident to the Lung allocation policy is developed by the Cardiothoracic Cleddau in the event of Scottish independence. [191694] Organs Advisory Group. It is presently reviewing the Mr David Jones: I have not received any official current approach focusing on equity and better outcomes representations from the Welsh Government regarding for patients. Any recommendations to change allocation the basing of the nuclear deterrent fleet in Wales. The policy will be considered by NHSBT, who will check to UK Government is not making plans for Scottish ensure that they meet the aims of the allocation system independence or to move the nuclear deterrent or other and that they have the support of transplant stakeholders submarines from Her Majesty’s Naval Base Clyde. The before making any changes. UK Government’s position is clear: Scotland benefits Kerry McCarthy: To ask the Secretary of State for from being part of the UK and the UK benefits from Health what assessment he has made of the report by having Scotland within it. the Cystic Fibrosis Trust entitled Hope for more: Improving access to lung transplantation and care for people with cystic fibrosis; what estimate his Department has made HEALTH of the donor lung utilisation rate for transplantation; and what measures his Department has identified as Care Bill (HL) having the greatest potential to increase that rate. [192234] Andrew Gwynne: To ask the Secretary of State for Health pursuant to the contribution by the Parliamentary Jane Ellison: NHS Blood and Transplant (NHSBT), Under-Secretary of State for Health of 11 March 2014, the organ donation organisation for the United Kingdom, Official Report, column 267, on Care Bill, whether the was involved in the development of the Cystic Fibrosis chair of the committee looking at draft guidance on Trust report and welcome all initiatives to increase Clause 119 of the Bill will be remunerated. [191716] organ donation and improve outcomes for patients in need of a transplant. Jane Ellison: The role of the right hon. Member for At present, NHSBT allocates donated deceased lungs Sutton and Cheam (Paul Burstow), in chairing a committee to designated transplant centres on a zonal basis, and to consider specific aspects of the statutory guidance the centre is responsible for selecting the patient. The for Trust Special Administrators will be unpaid. transplant surgeon will assess both the donor lungs and Cystic Fibrosis potential recipients to find the best match. Assessing donor lungs and selecting the most appropriate recipient Kerry McCarthy: To ask the Secretary of State for is complex and dependent on clinical factors and requires Health what assessment he has made of the adequacy detailed knowledge of the recipient. of psychological support available to people with cystic Between 2008 and April 2013, donation in the UK fibrosis after lung transplantation. [192192] increased by 50.3% and transplant rates by 30%. Donor rates continue to rise. A new seven year UK-wide organ Jane Ellison: The Department is aware that the Cystic donation and transplantation strategy “Taking organ Fibrosis Trust published a report on Monday 10 March transplantation to 2020” was published by NHSBT on 2014-“Hope for all: Improving lung transplantation 11 July 2013. The strategy will focus on increasing for people with cystic fibrosis”-which sets out 13 consent rates and giving many more people the opportunity recommendations around organ donation and of receiving a transplant. transplantations for people living with cystic fibrosis. NHSBT is continuing to work with transplant centres The report covered pre-and-post lung transplant standards to consider practical steps within the current system for care, including psychosocial support. which could improve patient outcomes. It continues to Decisions about psychosocial support is a matter for review the current allocation process and work with clinicians and commissioners when drawing up the provision international organisations to share learning to improve of care services for cystic fibrosis patients. NHS Blood processes. and Transplant is continuing to work with transplant centres to consider practical steps within the current Electronic Cigarettes system which could improve patient outcomes. It continues to review the current allocation process and work with David T. C. Davies: To ask the Secretary of State for international organisations to share learning to improve Health (1) if he will discuss with the e-cigarette industry processes. ways of ensuring better consumer safety through the testing of e-cigarette liquids; [192212] Kerry McCarthy: To ask the Secretary of State for (2) what steps he is taking to ensure that the supply Health what assessment he has made of the effectiveness chain of those e-cigarettes which are regulated as of the current arrangements for donor lung allocation consumer products is being adequately monitored. for people with cystic fibrosis. [192193] [192213] 613W Written Answers19 MARCH 2014 Written Answers 614W

Jane Ellison: The revised European Union Tobacco £ Products Directive will subject electronic cigarettes to consumer products legislation, unless they fall under Other income 7,983,000 the definition of a medicinal product. It further establishes Total 216,464,000 new rules for the safety, quality, ingredients and presentation of consumer electronic cigarettes, as well as refill HSCIC does not profit from the sale of data but can mechanisms. There will also be closer monitoring of only cover the costs of processing the request. Where market developments by EU member states and the the HSCIC provides a service in the market it follows European Commission. the Managing Public Money Guidance. The revised directive requires the European Commission to develop a common notification format and technical standard for electronic cigarettes. The United Kingdom National Institute for Health Research Government will work with the Commission on the development of the notification and any associated testing requirements. Tessa Munt: To ask the Secretary of State for Health what budget was allocated to the National Institute for On publication of the revised directive, the UK Health Research in each of the last three years; and Government will have two years to transpose it into how much of that budget was spent in each such year. domestic legislation and will consult key stakeholders, [191967] including the e-cigarette industry, during that period. Dr Poulter: The Department’s revenue allocations for Information Centre for Health and Social Care research and development are shown in the following table: Barbara Keeley: To ask the Secretary of State for Health what the (a) outside earnings from use of data, £ million (b) third party payment of staffing costs and (c) other 2010-11 975 funding sources of the operations and staffing of the Health and Social Care Information Centre are. 2011-12 1,004 2012-13 1,030 [191540]

Dr Poulter [holding answer 17 March 2014]: The These allocations fund the National Institute for Health and Social Care Information Centre (HSCIC) Health Research (NIHR) and the Department’s Policy has provided the following information. Research Programme (PRP). NIHR and PRP revenue expenditure is shown in the following table: The total expected income from use of data is expected to be £991,000 in 2013-14. This figure only relates to the £ million provision of direct ″data″ services, mainly Hospital 2010-11 2011-12 2012-13 Extraction Service extracts, data linkage, and research tracking services to third party customers. NIHR 920 921 955 HSCIC provide a range of other services to third PRP 40 31 30 party customers. The total income for this is expected to Total 960 952 985 be £4,760,000, the largest element of which is the clinical audit service with expected income of £1,960,000. The remaining £2,800,000 relates to income from all other Nursing and Midwifery Council services HSCIC provide to third party customers which are a mixture of system developments, training and Graham Jones: To ask the Secretary of State for programme management. HSCIC does not hold centrally Health what discussions he has had with the National the breakdown of costs between staff and other costs Midwifery Council on its membership costs and their for these activities. impact on recruitment and retention in the profession. The HSCIC is commissioned by the Department, [192073] NHS England and other health bodies for a range of other services. Of HSCIC’s other income totalling Dr Poulter: The Nursing and Midwifery Council £7,983,000, the total income from third parties is £5,751,000 (NMC) is an independent body and it is therefore for (£991,000 and £4,760,000) the remaining £2,232,000 of the NMC Council to determine the level of the annual ’other income’ outlined in the table comes from other fee it charges for registration. On 26 March 2014, the Government bodies including the Office for National NMC Council is due to review the level of this fee, but Statistics, NHS Trusts and arm’s length bodies. no decision has been made at present. Any proposed The approximate total funding for 2013-14 is as increase would be subject to consultation where the follows: NMC’s case would be scrutinised. Ministers keep the issue of professional regulation £ under regular review and the Department has frequent Grant in aid 162,000,000 contact with professional regulators, including the NMC. Most recently I, in my role as Parliamentary Under- Grant in aid—non cash 11,015,000 Secretary of State for Health, met with representatives Other income—Department of 24,479,000 Health of the NMC on 12 March 2014. At this meeting, the Other income—NHS England 10,987,000 NMC informed me as to its process for considering its registration fee. 615W Written Answers19 MARCH 2014 Written Answers 616W

Scarlet Fever provide further expert advice and support through its national Infectious Disease Surveillance and Control team in Colindale if required. Dr McCrea: To ask the Secretary of State for Health if he will hold discussions with the Northern Ireland TRANSPORT Minister of Health to discuss the recent rise in the incidence of scarlet fever in England and its implications Bus Services: Greater Manchester for Northern Ireland. [191885] Andrew Gwynne: To ask the Secretary of State for Transport how many bus operators in Greater Manchester have been reported to the Transport Commissioner in Jane Ellison: There are no plans at present to hold each year since 2005; and how many bus operators lost specific discussions about scarlet fever with the Northern their operational licence as a result of subsequent Ireland Minister for Health. However, Public Health investigations in each such year. [192139] England will continue to keep colleagues in the Public Health Agency in Northern Ireland updated on the Stephen Hammond: The numbers in the following situation in England through its weekly national tele- table refer to public service vehicle (PSV) operators in conference, to which all devolved Administrations are the north west traffic area because statistics are not invited participants. Public Health England can also collated specifically for Greater Manchester.

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-131

Public inquiries for 49 24 34 25 67 44 46 43 41 13 existing PSV operators Number of PSV 17 8 9 15 22 15 16 11 10 7 operator licences revoked 1 Indicates six month period April 2013-September 2013

Driver and Vehicle Agency: Northern Ireland Heathrow Airport Mr Gregory Campbell: To ask the Secretary of State for Transport (1) how many employees of the Driver Zac Goldsmith: To ask the Secretary of State for and Vehicle Agency in Northern Ireland have been Transport how many aircraft have had to land due to employed there for (a) five years or fewer, (b) six to 10 (a) engine problems, (b) fuel shortages and (c) other years, (c) 11 to 15 years, (d) 16 to 20 years and (e) technical problems at Heathrow Airport in the last five more than 20 years; [192125] years. [191935] (2) how many employees of the Driver and Vehicle Agency in Northern Ireland are (a) under 30, (b) 31 to 40, (c) 41 to 50, (d) 51 to 60 and (e) over 60 years. Mr Goodwill: The number of events where an aircraft [192126] landed at Heathrow for (a) engine related problems (b) instances of low fuel and (c) other technical problems, Stephen Hammond: The Department for Transport are shown in the following table. The source of these does not hold this information. The Driver and Vehicle data is the Civil Aviation Authority: Agency (DVA) is an agency of the Northern Ireland Reporting period 2009-13 (last five full years) Department of the Environment and its employees are (c) Other part of the Northern Ireland Civil Service. (a) Engine (b) Fuel Technical Total

Empty Property 2009 8 3 52 55 Hilary Benn: To ask the Secretary of State for Transport 2010 9 6 60 66 what estimate he has made of the empty property 2011 8 2 52 54 business rates for the vacant properties recorded on the 2012 5 2 38 40 e-PIMS database owned by (a) his Department and 2013 4 3 48 51 (b) any executive agencies or non-departmental public bodies of his Department in the current financial year. [191813] Zac Goldsmith: To ask the Secretary of State for Transport how many near-miss aircraft incidents have Stephen Hammond: The information is not held in occurred under 7,000ft with aircraft (a) arriving at and the format requested and could be provided only at (b) taking off from Heathrow Airport in the last five disproportionate cost. years. [191936] The Department for Transport aims to hold only core property (i.e. which is needed for the delivery of its business). All non-core property (unless it is held pending Mr Goodwill: The independent UK Airprox Board, transport scheme use) will be disposed or re-allocated at which is responsible for investigating all reported near the earliest opportunity in a way which is both consistent miss incidents by pilots and controllers in UK airspace, with official guidance and achieves value for money. has provided the following relevant information: 617W Written Answers19 MARCH 2014 Written Answers 618W

Mr Goodwill: Ministers and officials meet regularly Date of incident Aircraft types involved with metropolitan local authorities and passenger transport 27 July 2009 Boeing 777 and Cessna 525 executives and discuss a wide range of transport issues. 19 November 2009 Airbus A320 and Boeing 737 The introduction of red route measures on principal 4 January 2011 Airbus A319 and Bell 206 Jet transport corridors in cities and conurbations is entirely Ranger a matter for each local highway authority and passenger 8 September 2013 Embraer 190 and unknown transport executive. paraglider 21 November 2013 Boeing 747 and Cessna 750 Public Transport: Tickets

The first three incidents listed were all assessed to be Andrew Gwynne: To ask the Secretary of State for non risk-bearing airproxes. The last two incidents have Transport what plans his Department has for the roll-out yet to be assessed. of smartcard technology for travel on (a) buses, (b) trams and (c) metro systems outside London. [192148] Large Goods Vehicle Drivers: Sleep Apnoea Stephen Hammond: Further details on the Department’s smart and integrated ticketing ambitions can be found Meg Munn: To ask the Secretary of State for Transport in chapter 4 of the Door-to-Door Strategy. This states what steps his Department is taking to raise awareness that we will use smart technology to deliver seamless of obstructive sleep apnoea among lorry drivers. door-to-door journeys, making it easier to use public [192111] transport. Specific aims are: We will work closely with existing city smartcard schemes to Stephen Hammond: Advice on obstructive sleep apnoea utilise fully the existing smart ticketing infrastructure and is available on GOV.UK and the Driver and Vehicle actively encourage interoperability between smart ticketing Licensing Agency (DVLA) includes an information leaflet systems. on the risks of driving while tired with every digital We will publish multi-operator ticketing guidance to support tachograph card that is issued. local authorities in introducing and/or improving integrated local tickets. The DVLA has also worked with the Obstructive We will pilot a Managed Service to help smaller bus operators Sleep Apnoea Partnership group to promote an awareness benefit from smart ticketing. campaign that was launched in October 2013. Information We will encourage the use of new technology to make buying was published on a range of private sector websites and using tickets easier, and to future-proof operator investments. relating to obstructive sleep apnoea. We have made good progress encouraging the use of smartcard technology on public transport. Over 75% of Large Goods Vehicles England’s buses outside London now have smart ticketing equipment. Richard Burden: To ask the Secretary of State for A pilot programme is currently taking place in Norfolk Transport what discussions he has had with (a) his that will help us to understand the opportunities that counterpart in the Scottish Government, (b) the smart ticketing brings to those smaller operators that freight and haulage industry and (c) the European haven’t got smart ticketing yet and their passengers, Commission on payment of the HGV user levy should and the types of delivery model that might work elsewhere. Scotland vote to leave the UK in September 2014. The ’Smart Cities Partnership’, comprising DFT, the [192235] Passenger Transport Executives, major cities and bus operators, was established in October 2013. The initiative Mr Goodwill: No specific discussions have taken place aims to build on the considerable achievements and on this matter at ministerial level. Officials from the understanding of nine cities, establish where best practice Department of Transport have discussed the HGV levy can be shared and where barriers, local and national, with colleagues at Transport Scotland and with the still need to be addressed. The outcome of this partnership major haulage and logistics trade associations such as approach will be greater co-ordination of efforts, the FTA and RHA who have their own representatives concentration on resolving long-standing delivery in Scotland. As part of the UK, Scottish HGVs will challenges, a framework for other transport authorities benefit from the offsetting reductions to vehicle excise to adopt and an acceleration of delivery of smart duty when the HGV Levy is introduced. In the event of ticketing products for passengers. These cities encompass Scottish independence and irrespective of whether or almost all of England’s passenger tram and metro not Scotland joins the EU, Scottish HGVs would be networks outside London. Representation of the cities liable for the HGV Levy if they were to travel on roads in the Partnership is led by a Transport for Greater in the UK. As such they would need to pay for the HGV Manchester senior official. Levy as would any other non UK registered vehicle. Officials work closely with other bus policy areas of the Department and funding for smart schemes has also Priority Routes come from the Local Sustainable Transport Fund and from the Better Bus Area Fund. Andrew Gwynne: To ask the Secretary of State for Railways: Repairs and Maintenance Transport what discussions his Department has had with (a) metropolitan local authorities and (b) Dr Thérèse Coffey: To ask the Secretary of State for passenger transport executives on the introduction of Transport what recent discussions he has had with red route measures to principal transport corridors in companies within the supply chain for railways on the cities and conurbations. [192147] wheel sets and other spare parts for trains. [192339] 619W Written Answers19 MARCH 2014 Written Answers 620W

Stephen Hammond: The Secretary of State for Transport, Stephen Hammond: The Department for Transport my right hon. Friend the Member for Derbyshire Dales (including its executive agencies) does not currently, nor (Mr McLoughlin), regularly meets with the rail industry has it in the last three years, provided funding or paid supply chain and has had wide-ranging discussions on time off to staff for trade union activities. supporting innovation and skills but not specifically on Reasonable unpaid time off may be provided to staff wheel sets or other spare parts. The management of for trade union activities. The Department does not wheel sets is a matter for the rail industry. hold information centrally on how many unpaid days were spent on trade union activities in those years. Roads: Accidents

Meg Munn: To ask the Secretary of State for Transport ATTORNEY-GENERAL what proportion of road accidents resulting in a (a) serious injury and (b) fatality involved people driving Amicus Curiae for business purposes in each of the last four quarters. [192047] Sadiq Khan: To ask the Attorney-General (1) how many times the Attorney-General has appointed an Mr Goodwill: The proportions of reported road accidents amicus curiae in each month since May 2010; [192195] resulting in (a) serious and (b) fatal injuries involving (2) how much has been spent by the Attorney- at least one driver driving as part of work in each General’s Office on appointing amicus curiae in each quarter of 2012 are given in the following tables. month since May 2010. [192196] Fatal road accidents As a percentage The Attorney-General: The Attorney-General has of all fatal appointed an amicus curiae (or advocate to the court), Fatal accidents accidents where at 28 times since May 2010. An amicus curiae is appointed involving at least As a percentage least one driver’s one driver driving of all fatal journey purpose is at the request of the court to assist the court with as part of work accidents known guidance on the law when such assistance might not otherwise be available. A table showing, in each month, Q1 134 34 75 how many appointments were made and the amount Q2 119 32 69 spent on advocates to the Court appointed since May Q3 121 28 63 2010 is set out as follows. The expenditure shown is the Q4 130 30 63 expenditure in the month referred to. It does not necessarily Total 504 31 67 relate to the advocate(s) appointed in that month. Serious road accidents Number of As a percentage appointments Total spent (£) of all serious Serious accidents accidents where at May 2010 1 689 involving at least As a percentage least one driver’s June 2010 1 207 one driver driving of all serious journey purpose is as part of work accidents known August 2010 — 23 September 2010 1 3,981 Q1 1,205 24 56 October 2010 — 3,479 Q2 1,126 22 53 November 2010 1 462 Q3 1,251 22 54 December 2010 — 5,338 Q4 1,211 23 52 January 2011 — 1,065 Total 4,793 23 54 February 2011 — 762 March 2011 2 13,380 Journey purpose information is only available for April 2011 — 2,223 46% of fatal accidents and 43% of serious accidents. May 2011 — 3,445 June 2011 1 11,628 Meg Munn: To ask the Secretary of State for Transport July 2011 2 4,251 what discussions he has had with the Secretary of State for Work and Pensions on the role of the Health and August 2011 — 9,945 Safety Executive in reducing accidents by people who September 2011 1 482 October 2011 — 473 drive as part of their employment. [192113] November 2011 1 3,566 Mr Goodwill: The Department has had no discussions December 2011 — 4,302 with the Department for Work and Pensions on this January 2012 — 210 topic. February 2012 — 209 March 2012 2 5,037 Trade Union Officials April 2012 1 33,602 May 2012 — 3,683 June 2012 — 26 Alun Cairns: To ask the Secretary of State for July 2012 1 3,120 Transport what funding his Department provided for August 2012 1 513 staff to carry out trade union activities in each of the September 2012 — 636 last three years; and how many days staff spent on October 2012 2 1,077 those activities in those years. [190696] 621W Written Answers19 MARCH 2014 Written Answers 622W

under sections 2A and 4A of the Protection from Number of appointments Total spent (£) Harassment Act 1997. [191735]

November 2012 — 1,865 December 2012 2 1,311 The Solicitor-General: I refer the hon. Member to the January 2013 — 10,759 answers the Attorney-General gave him on the 13 March February 2013 1 8,055 2014, Official Report, column 290W. March 2013 — 23,313 April 2013 1 3,772 Mr Llwyd: To ask the Attorney-General how many May 2013 — 427 people have been charged under (a) section 2A and June 2013 1 1,334 (b) section 4A of the Protection from Harassment Act July 2013 — 17,149 1997 in each police force in England and Wales since August 2013 — 649 those sections came into force. [191736] September 2013 1 711 October 2013 — 875 The Solicitor-General: The Crown Prosecution Service November 2013 1 2,100 (CPS) maintain a central record of the number of December 2013 — 2,619 offences charged under section 4A of the Protection January 2014 1 1,284 from Harassment Act 1997 that reached a first hearing February 2014 1 3,734 in the magistrates court. Offences data are not held by March 2014 1 224 defendant or outcome. Grand total 28 197,988 The CPS case management system shows that the Stalking number of offences charged under section 2A and 4A of the Protection from Harassment Act 1997 in each Mr Llwyd: To ask the Attorney-General how many police force area which reached a first hearing in the people have been (a) charged and (b) prosecuted magistrates court are as follows:

PfHA 1997 2012-13 2013-14 4A(1)(a)(b)(i) 4A(1)(a)(b)(ii) 4A(1)(a)(b)(i) 4A(1)(a)(b)(ii) 2A and (5) and (5) 2A and (5) and (5)

Avon and Somerset 5 0 0 10 1 3 Bedfordshire000501 Cambridgeshire 000505 Cheshire000837 Cleveland 000211 Cumbria 100600 Derbyshire0001000 Devon and Cornwall 3 0 0 14 0 3 Dorset 200517 Durham000500 Dyfed Powys 000100 Essex 1011521 Gloucestershire 000805 Greater Manchester 8 4 1 25 7 2 Gwent 510800 Hampshire and IOW 2 0 2 25 0 4 Hertfordshire 2 0 0 13 0 0 Humberside 100501 Kent 1011203 Lancashire 5 0 0 14 1 4 Leicestershire 1 1 0 12 2 3 Lincolnshire100101 London 9 1 1 37 6 16 Merseyside 100421 Norfolk200601 Northamptonshire010110 Northumbria 4 0 0 16 0 2 North Wales 2 0 0 10 0 1 NorthYorkshire000402 Nottinghamshire 1 0 1 10 0 6 South Wales 2 0 0 12 1 2 South Yorkshire 0006.01 Staffordshire000600 623W Written Answers19 MARCH 2014 Written Answers 624W

PfHA 1997 2012-13 2013-14 4A(1)(a)(b)(i) 4A(1)(a)(b)(ii) 4A(1)(a)(b)(i) 4A(1)(a)(b)(ii) 2A and (5) and (5) 2A and (5) and (5)

Suffolk 100510 Surrey 000401 Sussex 200810 Thames Valley 1 0 I 18 1 5 Warwickshire100000 WestMercia101701 West Midlands 3 1 1 23 2 12 West Yorkshire 2 0 0 13 4 4 Wiltshire 200600 Total 72 9 10 405 37 106 Note: 2013-14 figures include April 2013 to January 2014.

NORTHERN IRELAND National Crime Agency

Corporation Tax Dr McCrea: To ask the Secretary of State for Northern Ireland what recent discussions she has had with the Dr McCrea: To ask the Secretary of State for Northern Social Democratic and Labour Party on the introduction Ireland what recent discussions she has had with the of the National Crime Agency for Northern Ireland. Chancellor of the Exchequer on the devolution of [191874] responsibility for levying of corporation tax to the Northern Ireland Assembly. [191889] Mrs Villiers: It is vitally important that the people of Northern Ireland are afforded the same protection from Mrs Villiers: I regularly hold discussions with Treasury organised crime as the rest of the United Kingdom now Ministers, including the Chancellor, on a wide range of does through the work of the National Crime Agency. I economic issues including the potential devolution of continue to urge the Northern Ireland parties to regard corporation tax powers to the Northern Ireland Assembly. protecting the public as their key priority and that they should allow the Agency to work properly in Northern As set out in ‘Building a Prosperous and United Ireland for the good of everyone who lives there. Community’, the Government will make a final decision on the devolution of corporation tax powers no later I have had a number of discussions with the SDLP than the autumn statement 2014. on the importance of allowing the NCA to become fully operational in Northern Ireland.

Electoral Register Older Workers

Dr McCrea: To ask the Secretary of State for Northern Dr McCrea: To ask the Secretary of State for Northern Ireland what assessment she has made of the voter Ireland what recent discussions she has had with the registration effects in Northern Ireland. [191856] Northern Ireland Executive on providing older workers in Northern Ireland with adequate skills training. Mr Robathan: The Northern Ireland electoral register [191854] was published on 1 December 2013 and more people were registered during last year’s canvass than during Mrs Villiers: These matters are devolved to the Northern the previous canvass in 2007. Approximately 88.3% of Ireland Executive and developing skills training in Northern the eligible population is now registered to vote. This is Ireland is the responsibility for the Northern Ireland close to the highest number since the introduction of Minister for Employment and Learning. individual electoral registration in Northern Ireland. Northern Ireland continues to be successful in attracting The Chief Electoral Officer has arranged an extensive direct foreign investment—in part because of its highly programme of registration surgeries, in co-operation skilled work force—and I have had discussions with with local councils, in advance of the elections in May several Northern Ireland Ministers on the need to ensure 2014. that all sections of the workforce are adequately trained to meet needs of business and potential investors. Fuels: Tax Evasion I am due to meet the Northern Ireland Minister for Employment and Learning and will discuss the issue of Dr McCrea: To ask the Secretary of State for Northern skills training with him then. Ireland what assessment she has made of the role of alleged dissident republicans in illegal fuel laundering. Police Service of Northern Ireland [191860] Dr McCrea: To ask the Secretary of State for Northern Mrs Villiers: Fuel laundering continues to offer significant Ireland what funding has been made available to the profits to organised crime groups, and some of these Police Service of Northern Ireland in each of the last may involve dissident republicans. five years. [191858] 625W Written Answers19 MARCH 2014 Written Answers 626W

Mrs Villiers: Police funding is a matter for the Pupils with special educational needs with a primary need of ‘Autistic Department of Justice and Northern Ireland Policing Spectrum Disorder’ in special schools in England, January 2013 Board. However, in recognition of the SEVERE threat Number for terrorism the following additional funding has been England 20,735 made available to PSNI since the devolution of policing London 3,640 and justice in 2010: Lambeth 150 Note: £ million Figures are rounded to the nearest 5. Source: 2010-11 50.3 School Census 2011-15 199.5 2015-16 31 Information on special educational needs is published annually in the publication ‘Special Educational Needs As the hon. Gentleman is aware, this additional in England’, available at: funding has been committed despite this being a time of https://www.gov.uk/government/publications/special- unprecedented pressures on the public finances as a educational-needs-in-england-january-2013 result of the fiscal position inherited by the Government in 2010. Mr Sheerman: To ask the Secretary of State for Education what steps he is taking to improve the education of children on the autistic spectrum. [192331] Terrorism Mr Timpson: Children on the autism spectrum will Dr McCrea: To ask the Secretary of State for Northern benefit from the changes to the special educational Ireland how many successful prosecutions of alleged needs system which the Government is bringing about republican terrorists there have been in the last 12 through the Children and Families Act 2014, including months. [191857] the strengthened arrangements, through 0-25 Education, Health and Care plans, for the transition from children’s Mrs Villiers: These are matters for the Northern services to adulthood which young people with autism Ireland Public Prosecution Service which acts independently can find particularly difficult. of Government. The hon. Gentleman may wish to The Department for Education is funding the Autism contact them regarding this matter. Education Trust to provide training to early years, school and further education staff on autism. From Dr McCrea: To ask the Secretary of State for Northern January 2012 to February 2014, 22,451 staff have received Ireland when she last met the Chief Constable of the level 1 basic awareness training, 3,214 have received Police Service of Northern Ireland to discuss terrorist level 2 hands-on tools and techniques training and 775 activity. [191876] have received level 3 training for those who want to develop their knowledge of autism further and those Mrs Villiers: I hold regular meetings with the Chief who will themselves take on a training role, such as Constable of the Police Service of Northern Ireland. school Special Educational Needs Co-ordinators. We discuss a range of subjects including security matters. The Department is also funding three autism organisations from 2013 to 2015, including Ambitious about Autism, to work with four general further education colleges and schools to test innovative ways of supporting EDUCATION the transition of young people with autism from school to college and the National Autistic Society to help young people with autism take part in the development of ’local offers’, to provide advice to professionals and Children: Autism to fund an exclusion adviser for parents and professionals. Mr Umunna: To ask the Secretary of State for Education Empty Property how many available school places there are at schools that provide specialist support for children and young people on the autism spectrum in (a) the UK, (b) Hilary Benn: To ask the Secretary of State for Education England, (c) London, (d) Lambeth and (e) Streatham what estimate he has made of the empty property parliamentary constituency; and how many such places business rates for the vacant properties recorded on the will be available in each of the next 15 years. [191883] e-PIMS database owned by (a) his Department and (b) any executive agencies or non-departmental public Mr Timpson: These figures are not collected centrally. bodies of his Department in the current financial year. The Department for Education does not collect information [191806] on the number of places available to provide specialist support in schools for children and young people on the Elizabeth Truss: Since May 2010 the Department for autism spectrum. Local authorities are expected to keep Education has reduced the size of its estate from 30 their arrangements for providing special educational properties, at a cost of circa £51 million per annum, to needs under review. 11 properties costing circa £34 million per annum. This We do collect the numbers of pupils in special schools is a saving of circa £17 million per annum. The Department in England with a primary need of ‘Autistic Spectrum is planning to further reduce the size of the estate to six Disorder’ are given in the following table. properties. This will achieve further annual savings to 627W Written Answers19 MARCH 2014 Written Answers 628W the Department of circa £2.5 million. The Department training on educational provision for children and young also plans to vacate Sanctuary Buildings at lease expiry people on the autism spectrum in each of the last five in 2017. years. [191882] The Department for Education, including the Children and Family Court Advisory and Support Service (Cafcass), Mr Timpson: These figures are not collected centrally. has the following vacant properties recorded on the Schools make their own decisions on what training their e-PIMS property database. staffs need to support their pupils based on the individual circumstances of the school. Number of Business Rates The Department for Education funds the Autism properties 2013-14 (£) Education Trust (AET) to provide tiered training on Department for 3 79,010.25 autism: basic awareness training for teaching and non- Education teaching staff at level 1; practical knowledge and hands-on Children and 1 9,222.00 tools and techniques for all staff working directly with Family Court children and young people with autistic spectrum disorders Advisory and at level 2; and level 3 training for those seeking more Support Service advanced knowledge and those pursuing a training role, such as lead practitioners in autism and Special Educational The Department for Education properties are legacy Needs Co-ordinators. Between 2011 and 2013 the AET Training and Enterprise Council (TEC) properties which received grant funding to provide training to schools became the Department’s responsibility following the and from 2013 to 2015 is receiving funding under contract closure of the TEC in the early 2000s. The Department to provide training to early years providers, schools and had successfully sub-let a number of facilities, although further education colleges. over the last three years some of the sub-tenants have operated lease break options and the properties are again vacant. These properties are advertised on the Government FOREIGN AND COMMONWEALTH OFFICE Property Unit’s e-PIMS property database for use by other Government Departments and we are also marketing these facilities to the private sector, via letting agents, to Afghanistan secure new sub-tenants in order to mitigate costs, including business rates. The Department has offered all vacant Paul Flynn: To ask the Secretary of State for Foreign properties listed above to the Government business and Commonwealth Affairs what assessment he has incubator initiative and for free schools. made of the effect of British intervention on the level of opium production in Helmand Province, Afghanistan, Primary Education: Academies since 2001. [191930] Hugh Robertson: In the early years of the intervention Mr Gibb: To ask the Secretary of State for Education it is clear the International Community underestimated what proportion of state-funded primary schools have the complexity of the problem and the length of time acquired academy status in each local authority. needed to address the drugs trade and build up the [192209] capabilities of the Afghan Government after three decades of civil war. Achieving a permanent reduction in opium Mr Timpson: A table showing the proportion for each cultivation will take decades; it needs a strong Afghan local authority has been placed in the House Library. lead supported by effective regional and international action. Despite falls in cultivation between 2007 and Secure Accommodation 2010, the narcotics trade in Helmand remains strong and entrenched in the political, social and economic Dan Jarvis: To ask the Secretary of State for Education fabric of the province. Ongoing challenges of poverty, what estimate he has made of the annual cost of insecurity and effective rule of law continue to create transporting children from secure children’s homes in the conditions where some communities are dependent London and the South East to elsewhere in the UK. on opium cultivation to survive. Helmand is particularly [192205] susceptible to this problem due to its relatively porous border with Pakistan which is exploited by smugglers, Mr Timpson: The financial responsibility for transporting and its history of opium production. This however welfare young people to and from secure children’s should not detract from the progress made in security, homes is a matter for the placing local authority. political participation, improvements in education and health care that have been achieved in Helmand with The financial responsibility for transporting justice the support of the UK. young people to and from secure children’s homes is a matter for the Youth Justice Board (YJB). Significantly reducing opium production in Helmand will require a generation of effort and Afghan will. The UK will continue to support efforts to provide a viable Teachers: Training alternative to poppy cultivation in Helmand. We will do so through the Comprehensive Agriculture and Mr Umunna: To ask the Secretary of State for Education Rural Development Facility (CARD-F), which promotes what proportion of teachers teaching in (a) the UK, legal rural employment and income opportunities by (b) England, (c) London, (d) Lambeth and (e) Streatham increasing the profitability of local agriculture and small parliamentary constituency have undertook specialist business. 629W Written Answers19 MARCH 2014 Written Answers 630W

Paul Flynn: To ask the Secretary of State for Foreign hon. Friend the Member for Richmond (Yorks) and Commonwealth Affairs what estimate he has made (Mr Hague), has consistently made clear that the UK. of the levels of opium cultivation in the area within a remains committed to supporting BiH on their path 10-mile radius of Camp Bastion, Afghanistan, in each towards EU membership including in his statement of of the last three years. [191931] 11 February immediately after the protests first broke out. The Secretary of State has also raised the importance Hugh Robertson: The UK does not produce its own of continuing commitment to BiH’s EU path with his data on Afghan poppy cultivation, but contributes funding EU colleagues. for the UN Office Drugs and Crime (UNODC), which conducts its own annual survey of opium production Empty Property and cultivation across Afghanistan’s 34 provinces. While UNODC opium cultivation figures do not specifically Hilary Benn: To ask the Secretary of State for focus on the 10-mile radius around Camp Bastion, the Foreign and Commonwealth Affairs what estimate he 2013 UNODC Opium Survey reported 19,136 hectares has made of the empty property business rates for the of opium cultivation in the district of Nad’ Ali, up from vacant properties recorded on the e-PIMS database 8,038 in 2012 and 5,413 hectares in 2011. This is the owned by (a) his Department and (b) any executive closest district to Camp Bastion for which cultivation agencies or non-departmental public bodies of his figures are available. Department in the current financial year. [191809] The 2013 UNODC Opium Survey reported that with Mr Lidington: No buildings for which the Foreign 100,693 hectares in 2013 (48% of total cultivation in and Commonwealth Office (FCO) is responsible for Afghanistan), Helmand remains Afghanistan’s single business rates were vacant in the current financial year largest opium-cultivating province. Cultivation in Helmand in the UK. Two FCO-owned freehold properties recorded was estimated at 65,045 hectares and 63,307 hectares in on the e-PIMS database have been partly under 2010 and 2011, Ongoing challenges of poverty, insecurity refurbishment or otherwise unavailable for use during and effective rule of law continue to create the conditions the current financial year as the Department progresses where some communities are dependent on opium a project to consolidate its London headquarters in cultivation to survive. King Charles street (KCS) by late 2015: FCO main building, King Charles street, London SW1A 2AH BBC World Service (KCS); Old Admiralty Building, London, SW1A 2AP (OAB). Andrew Selous: To ask the Secretary of State for Business rates due on these two properties during the Foreign and Commonwealth Affairs pursuant to the current financial year total £4,104,760 and £1,664,490, oral answer from the Deputy Prime Minister of 12 March respectively. 2014, Official Report, column 316, what Korean language During the current financial year the FCO has so far service the BBC World Service previously offered; for received a refund of £45,992.00 for empty property rate how long it had made such transmissions; what the cost relief for areas of the KCS building, and a refund of of that service was; and what savings were made when £173,987.31 for empty property rate relief for areas of that service was discontinued. [192233] the OAB. Mr Swire: I would like to clarify the answer given by Information on overseas properties is not held centrally the Deputy Prime Minister on 12 March 2014, Official and would in any case not be covered by the e-PIMS Report, columns 315-6, concerning proposals to initiate database. BBC World Service transmissions to the Korean peninsula At the time of the last general election the central and his remarks on a review of that. The review carried Government estate was far larger than required and out in 2013 was into the viability of a BBC World taxpayers were paying to maintain, run and rent under- Service Korean language service. There has not previously occupied properties while parts of the freehold estate been a Korean language service offered by the BBC remained vacant. The Government Property Unit has World Service so the question of savings from its therefore been helping Departments to rationalise their discontinuation has never arisen. portions of the Central Civil Estate by taking a whole of Government view of property. Since the 2010 general Bosnia and Herzegovina election over £1.25 billion has been raised by selling surplus freehold properties. Through the exiting of property Stephen Phillips: To ask the Secretary of State for across the central civil estate, cumulative, gross run rate Foreign and Commonwealth Affairs what recent savings of over £454 million per annum have also been assessment he has made of the progress of Bosnia and delivered. Herzegovina towards EU accession. [191834] Where surplus property is awaiting disposal or lease end, the Government is looking to explore all disposal Mr Lidington: Bosnia and Herzegovina’s (BiH) leaders options, including commercially sub-letting all or part have made little recent progress towards EU accession. of the space, and the listing of surplus property on the Continuing protests across BiH demonstrate clearly gov.uk website. Where surplus property is awaiting disposal that many people feel frustrated with the slow progress or lease end but cannot yet be sold or sub-let commercially, their country is making on its economic, social and the Space for Growth scheme, run by the Government political reforms, and the impact that this is having on Property Unit, invites small and medium-sized businesses, BiH’s path towards the EU. The UK continues to charities and social enterprises to utilise this space free engage with BiH’s leaders to encourage them to respond of charge, boosting economic growth. Over 1,500 to the population’s calls for reform. The Secretary of workstation spaces are now available in 57 different State for Foreign and Commonwealth Affairs, my right locations around England. 631W Written Answers19 MARCH 2014 Written Answers 632W

Middle East The resolution was supported by 13 of the 15 Security Council members. China abstained and Russia used its Andrew Selous: To ask the Secretary of State for veto to prevent the resolution being passed. Nevertheless Foreign and Commonwealth Affairs what recent the vote delivers a resounding international condemnation discussions he or officials in his Department have had of Russian efforts to annex Crimea, and makes clear with the Israeli government about recent deaths of Russia’s isolation in the Security Council and in the Palestinians following encounters with Israeli forces. international community. [191897] On 13 March the UNSC held its sixth urgent session on the crisis in Ukraine since 28 February. Jeffrey Hugh Robertson: We make frequent representations Feltman, UN Under-Secretary-General for Political Affairs to the Israeli authorities about Israel Defence Forces’ underlined UN Secretary-General Ban Ki-moon’s concern use of live fire and appropriate force in both Gaza and regarding the deterioration of the situation in Crimea the West Bank, as well as about the process for investigating and rising tensions in eastern Ukraine. such incidents. During the meeting, the UK ambassador to the UN North Korea made a statement which praised the restraint shown by Ukraine in the face of repeated provocation. He expressed Fiona Bruce: To ask the Secretary of State for Foreign the UK’s deep concern about the decision to hold a and Commonwealth Affairs with reference to the referendum in Crimea on 16 March and about the publication of the UN Commission of Inquiry’s report legislative steps Russia was taking to facilitate it. He and the UN Human Rights Council resolution on urged Russia to: de-escalate and return its forces to North Korea, what mechanisms will be implemented to their bases; allow international monitors into Crimea; ensure ongoing monitoring, investigation and reporting distance itself from the proposed referendum; and agree on human rights in North Korea by the UN, including to dialogue with Ukraine. In the afternoon, Ukrainian violations of women’s rights as a result of sexual violence Prime Minister Yatsenyuk briefed the UNSC and spoke and human trafficking; and if he will make representations powerfully about Russia’s violation of Ukraine’s territorial that the mandate and resources of the UN Special integrity. Rapporteur on Human Rights in North Korea should At the UK’s request, the UN Security Council held be strengthened and increased and that a database of closed consultations to discuss the situation in Ukraine evidence and testimonies to support a process of justice on 6 March. During the meeting, the UK expressed and accountability should be established. [192048] regret that UN Envoy Robert Serry’s visit to Crimea had been obstructed by threats and cut short and stressed Mr Swire: The United Nations Commission of Inquiry that Russia should withdraw all its forces to their bases investigating human rights violations in the Democratic and to the levels agreed under the Black Sea Fleet People’s Republic of Korea (DPRK) has recommended basing agreements. The UK declared the decision of the the creation of a new structure, based in the region, that Crimean Parliament to hold a referendum as illegal can continue the Commission’s work of collecting and under Article 73 of the Ukrainian Constitution and had documenting reports and testimony of human rights already been ruled as such by the Ukrainian Electoral violations. The UK supports this proposal and is working Commission. for its inclusion in the DPRK resolution at the Human Following a request by Russia, the UN Security Rights Council, alongside renewal of the mandate of Council held a public meeting on Ukraine on 3 March. the Special Rapporteur for Human Rights in the DPRK. During this meeting, the UK ambassador to the UN Russia made a strong statement in which he condemned Russian actions in Ukraine. Dr McCrea: To ask the Secretary of State for Foreign On 1 March the UK called an urgent meeting of the and Commonwealth Affairs what steps he plans to take UNSC. In the meeting the UK expressed deep concern to prevent further acts of aggression by Russia. at the escalation of tensions in the Crimean Peninsula, [191862] and the fact that the Russian Parliament had authorised Russian military action on Ukrainian soil against the Mr Lidington: I refer the hon. Member to my answer wishes of the Ukrainian Government. We called upon of 18 March 2014, Official Report, column 514W all political actors to show restraint. Members of the Council called for international monitors to be sent to Ukraine Ukraine to observe the situation.

Mr Andrew Smith: To ask the Secretary of State for Mr Dodds: To ask the Secretary of State for Foreign Foreign and Commonwealth Affairs what steps the and Commonwealth Affairs what discussions he has Government has taken or is supporting at the United had with his NATO counterparts on Ukraine. [191946] Nations to diminish tensions in Ukraine. [191738]

Mr Lidington: On 15 March the United Nations Mr Lidington: NATO has a valuable political role to Security Council (UNSC) met to vote on a draft resolution play in support of the international effort towards on Ukraine. The resolution was co-sponsored by de-escalation. My right hon. Friend the Prime Minister, 42 members of the UN including the UK and all other the Secretary of State for Foreign and Commonwealth EU member states and invited Council Members to Affairs, my right hon. Friend the Member for Richmond uphold the sovereignty, unity and territorial integrity of (Yorks) (Mr Hague), and I are all in regular contact a UN member state, and reaffirm core UN principles. with our counterparts in the Alliance. 633W Written Answers19 MARCH 2014 Written Answers 634W

In addition to bilateral discussions, NATO Allies Mr Lidington: Political guidance for Members of have held regular discussions about Ukraine in the Parliament and Peers who are members of the UK North Atlantic Council, most recently on 17 March. delegation to the Parliamentary Assembly of the Council Allies have also discussed Ukraine during meetings of of Europe (PACE) is a matter for political parties. The the NATO-Ukraine Commission, the Euro-Atlantic UK Government provides briefing to the UK Delegation Partnership Council and the NATO-Russia Council. on all plenary agenda items, including debates, in advance These discussions with Allies in these fora have culminated of each PACE plenary session. This briefing consists of in NATO making strong political statements, including re-stating of existing UK Government positions or today’s statement on the so-called referendum in Crimea. policy. For example, in advance of PACE’S most recent In addition, as a consequence of Russian actions, Allies session in January 2014, briefing was provided on issues have agreed to suspend all working level and operational as diverse as climate change, preventing racism and activity conducted under the NATO-Russia Council intolerance, the impact of ICT on democracy, Syria, until the Foreign Ministers’ meeting in April. Ukraine and Palestine.

Mr Dodds: To ask the Secretary of State for Foreign Vietnam and Commonwealth Affairs what discussions he has had with the NATO Parliamentary Assembly on Ukraine. Stephen Phillips: To ask the Secretary of State for [191947] Foreign and Commonwealth Affairs what steps he is taking to encourage the improvement of human rights in Vietnam. [191842] Mr Lidington: I hold regular discussions on security issues with the UK Delegation to the NATO Parliamentary Mr Swire: We highlight Vietnam as a country of Assembly ahead of their spring and annual sessions. I concern in the annual Foreign and Commonwealth remain open to requests for discussion and briefing Office human rights report. sessions from the UK Delegation. Our main concerns relate to freedom of expression Regular contact between the Foreign and Commonwealth and use of the death penalty. We continue to raise these Office and both the NATO Parliamentary Assembly issues with the Vietnamese Government at all levels. We President and the UK Delegation is conducted at official use the annual UK-Vietnam Strategic Dialogue to engage level. on human rights and have recently supported a visit by Lord Dubs, Vice Chair of the All Party Parliamentary Mr Dodds: To ask the Secretary of State for Foreign Group on the abolition of the death penalty, in February and Commonwealth Affairs what recent discussions he 2014. His visit aimed to encourage greater debate in has had with the US Secretary of State on Ukraine. Vietnam and the reduction of crimes punishable by [191948] death. Our embassy in Vietnam continues to support projects Mr Lidington: My right hon. Friend the Prime Minister funded by our Human Rights and Democracy Fund, and the Secretary of State for Foreign and Commonwealth focusing on improving journalists’ safety, access to Affairs, my right hon. Friend the Member for Richmond information and legal protection. (Yorks) (Mr Hague) met US Secretary of State John We also continue to work closely with our international Kerry on the morning of Friday 14 March. The Foreign partners, supporting the annual EU-Human Rights Secretary and other key international partners were Dialogue. In February we participated in the UN Universal briefed by Secretary Kerry on Friday evening following Periodic Review recommending improvements to freedom his bilateral with Russian Foreign Minister Sergey Lavrov of expression. Vietnam is due to respond in June. and subsequently on the evening of Sunday 16 March after the Crimean referendum. The Foreign Secretary and the US Secretary of State remain in close contact as the situation develops. INTERNATIONAL DEVELOPMENT Developing Countries: Gender United Arab Emirates Mr Jim Cunningham: To ask the Secretary of State Katy Clark: To ask the Secretary of State for Foreign for International Development if she will take steps to and Commonwealth Affairs what reports he has ensure a gender goal is included in the post-2015 framework received of the convictions of Khalifa Rabeiah and in the post-millennium development goals agenda. Othman al-Shehhi in the United Arab Emirates. [192218] [191767] Justine Greening: I refer the hon. Member to the Hugh Robertson: We have received no specific reports answer I gave to the hon. Member for Solihull (Lorely of the convictions of these individuals. Burt) on 24 October 2013, Official Report, column 269W. United Russia UN Commission on the Status of Women

Mr Crausby: To ask the Secretary of State for Foreign Mr Jim Cunningham: To ask the Secretary of State and Commonwealth Affairs what guidance he has given for International Development if she will take steps to to the UK delegation to the Parliamentary Assembly of support women’s social and political participation in the Council of Europe on political groupings and other fragile states at the UN Commission on the Status of associations with United Russia. [192130] Women. [192217] 635W Written Answers19 MARCH 2014 Written Answers 636W

Lynne Featherstone: Our objective at the 58th session Incapacity Benefit of the United Nations Commission on the Status of Women is to secure agreed conclusions, including on Dame Anne Begg: To ask the Secretary of State for women’s social and political participation in fragile Work and Pensions pursuant to the answer of 5 March states, that reflect lessons learnt from the millennium 2014, Official Report, column 848W, on incapacity development goals and support the UK’s call for a benefit, what estimate his Department originally made standalone goal on gender equality, and mainstreaming of the number of Incapacity Benefit claimants who of this issue across the post-2015 framework. would be migrated to employment and support allowance; what his Department’s latest estimate of the number of such claimants is; and what proportion of such claimants are still to be migrated. [191719] WORK AND PENSIONS Carrington Wire Mike Penning: The Department published an impact assessment on the migration of existing incapacity benefits Dan Jarvis: To ask the Secretary of State for Work customers to employment and support allowance (ESA) and Pensions whether members of the Carrington Wire which can be found on the internet at the following link: Pension Fund are able to access the Pension Protection http://www.legislation.gov.uk/uksi/2010/875/pdfs/ uksiem_20100875_en.pdf Fund. [192207] The Department regularly publishes official statistics Steve Webb: The Carrington Wire Defined Benefit on employment and support allowance (ESA), the work Pension Scheme entered a Pension Protection Fund capability assessment (WCA) and the reassessment of (PPF) assessment period in February 2013. incapacity benefit claimants. The latest WCA report on During a PPF assessment period the PPF establishes incapacity benefit reassessment was published in January whether the scheme can afford to secure benefits which 2014 and can be found on the internet at the following are at least equal to the compensation that the PPF link: would pay. The scheme will transfer to the PPF unless it https://www.gov.uk/government/publications/esa-outcomes- has sufficient assets to pay benefits greater or equal to of-work-capability-assessments-january-2014 PPF compensation levels or it is rescued, for instance, The latest official statistics show that as of March by another employer taking responsibility for it. 2013, 77% of claimants had been found to be eligible for ESA. Around 27% of the caseload had by March Foreign Companies: Pensions 2013 yet to commence the migration process.

Dan Jarvis: To ask the Secretary of State for Work Jobcentre Plus and Pensions what steps he has taken to ensure that any foreign company found to have abandoned its Stephen Timms: To ask the Secretary of State for pension responsibilities to UK pension holders can be Work and Pensions how much his Department spent made to refund that pension deficit. [192208] on the Jobcentre estate in 2012-13. [192190]

Steve Webb: I refer the hon. Member to the written Mike Penning: It is not possible to provide a figure answer I gave him on 23 January 2014, Official Report, specifically for the delivery of Jobcentre business, as column 267W. other parts of the Department, such as staff from the Corporate Centre, the Pensions Service and Child Housing Benefit: Corby Maintenance Divisions are co-located in Jobcentre sites, and each business unit pays for their space proportionate Andy Sawford: To ask the Secretary of State for to their occupancy. Work and Pensions how much in discretionary housing payments has been allocated in Corby and East Jobseeker’s Allowance Northamptonshire constituency for those affected by the under-occupancy penalty in (a) 2013-14 and (b) Steve McCabe: To ask the Secretary of State for 2014-15. [192229] Work and Pensions what guidance he has issued on the requirement to have £16,000 or less in savings for Steve Webb: Discretionary housing payments (DHP) eligibility for income-based jobseeker’s allowance. are allocated by local authority not parliamentary [191792] constituency. The following table details the overall DHP allocation and the Removal of the Spare Room Esther McVey: For jobseeker’s allowance (JSA), guidance Subsidy (RSRS) element for Corby and East on the requirement to have £16000 or less in capital and Northamptonshire local authorities. savings is in the JSA procedural guidance. Corresponding Government allocation of DHP by local authority guidance for Decision Makers is in the Decision Makers £ Guide, chapter 29. 2013-14 2014-15 Public facing communications are available via the: Total Total Government website www.gov.uk; RSRS DHP RSRS DHP information leaflet INF4: changes you must tell us about; and Corby 25,669 92,250 92,809 134,854 jobseeker’s allowance: help while you look for work leaflet. East 24,304 85,490 59,253 99,565 Northamptonshire There has always been a level above which income-based JSA was not payable if savings were held since 1996. 637W Written Answers19 MARCH 2014 Written Answers 638W

Stephen Timms: To ask the Secretary of State for Number of individuals who had their jobseeker’s allowance sanctioned Work and Pensions (1) how many people who were for failure to attend, from April 2000 to September 2013 entitled to contributory jobseeker’s allowance when Failure to attend they first claimed ceased claiming that benefit within England 1,408,227 (a) one, (b) two, (c) three, (d) four, (e) five and (f) six Hampshire 16,794 months of making their initial claim in each of the last Portsmouth UA 5,169 two years for which figures are available; [192210] Portsmouth South constituency 3,158 (2) how many people who were entitled to income-related Notes: jobseeker’s allowance (JSA), but not to contributory 1. Jobseeker’s allowance (JSA) figures have been randomly adjusted JSA, when they first claimed ceased claiming that benefit to avoid the release of confidential data. within (a) one, (b) two, (c) three, (d) four, (e) five and 2. A table produced with no breakdowns, only containing a total, will be a measure of the total number of individual people who have had a (f) six months of making their initial claim in each of (JSA) sanction decision made ie an individual person will be counted the last two years for which figures are available. once, irrespective of their characteristics, sanction decision outcome, [192211] reason for referral etc. 3. New sanctions rules came into force for JSA from 22 October 2012. The number of JSA sanctions applied for the new regime is the Esther McVey: The volumes of successful new claims number of low, intermediate, and high level referrals where the in 2010/11 and 2011/12 which were entitled to contributory decision was found against the claimant. Further information can be jobseeker’s allowance at the time of claim by duration found here: of claim: https://www.gov.uk/government/publications/jobseekers-allowance- overview-of-sanctions-rules 4. Information on the old JSA regime is available from April 2000 to Number leaving jobseeker’s allowance (in thousands) 21 October 2012. The number of JSA sanctions applied was the within: number of fixed length, varied length and entitlement decisions where Year (a) (b) (c) (d) (e) (f) the decision was found against the claimant. of one two three four five six 5. The figure for Hampshire includes the following local authorities: claim month months months months months months Basingstoke and Deane, East Hampshire, Eastleigh, Fareham, Gosport, Hart, Havant, New Forest, Rushmoor, Test Valley and Winchester. 2010/11 180 410 590 710 810 870 6. Failure to attend includes: Failure to attend a place on a training 2011/12 150 350 510 620 700 750 scheme or employment programme, Failure to attend or failure to participate in an Adviser interview and Failure to attend Back to Work Session, without good reason. The volumes of successful new claims in 2010/11 and 7. This information is published and available at: 2011/12 which were entitled to income-related but not https://stat-xplore.dwp.gov.uk/ contributory jobseeker’s allowance at the time of claim Source: by duration of claim: DWP Information, Governance and Security Directorate: Sanctions and Disallowance Decisions Statistics Database. Number leaving jobseeker’s allowance (in thousands) within: Poverty: Children Year (a) (b) (c) (d) (e) (f) six of one two three four five months claim month months months months months Julie Hilling: To ask the Secretary of State for Work and Pensions what estimate his Department has made 2010/11 360 740 1,040 1,280 1,450 1,580 of the effect of the removal of the under-occupancy 2011/12 370 760 1,070 1,290 1,450 1,580 penalty on the number of children living in relative Notes: 1. These figures are not National Statistics and have not been quality income poverty. [191718] assured to National Statistics level. 2. Figures are subject to sampling error. Esther McVey: This information could be provided 3. The figures presented are cumulative, for example, those leaving only at disproportionate cost. within one month are also in the leaving within two months category. 4. Figures represent total claims to jobseeker’s allowance and not This Government has made good progress in tackling total people claiming jobseeker’s allowance. the root causes of child poverty and has recently published 5. Duration based on case status at end of month. Onflows within a the 2014-17 draft child poverty strategy for consultation month are counted as having duration of zero months ie within one which outlines the actions we are taking. The latest month. 6. Excludes successful new claims to credits only jobseeker’s allowance. figures from 2011-12 show that 2.3 million (17%) children Sources: are in relative income poverty-down 300,000 since 2009-10. Department for Work and Pensions INFORM model, based on a 5% These are the lowest level since the mid-1980s. sample of the 100% Work and Pensions Longitudinal Study

Trade Union Officials Jobseeker’s Allowance: Disqualification Alun Cairns: To ask the Secretary of State for Work Mr Mike Hancock: To ask the Secretary of State for and Pensions what funding his Department provided Work and Pensions how many people have received for staff to carry out trade union activities in each of sanctions of their jobseeker’s allowance for non- the last three years; and how many days staff spent on attendance in (a) Portsmouth South constituency, (b) those activities in those years. [190698] Portsmouth, (c) Hampshire and (d) England to date. [191713] Mike Penning: The information is as follows: 1. The Department provides no funding for any trade union Esther McVey: The information requested is shown related activities. However it does allow time for these activities to in the following table. be undertaken. 639W Written Answers19 MARCH 2014 Written Answers 640W

2. The Department did not report on the amount of trade Business union activities taken by our representatives in the years 2011-12 and 2012-13, as such the figures shown are estimates based on the allocation of time we allowed for union representatives to use on David T. C. Davies: To ask the Secretary of State for trade union activities. Scotland what estimate he has made of the potential 3. The Department has undergone a significant amount of cost to cross-border companies if Scotland becomes change in its facility time arrangements over the last 12 months as independent. [903079] it has introduced the Cabinet Office reforms from June 2013, this has resulted in a decrease in the amount of time taken by our David Mundell: Government estimates suggest that people for trade union activities. the transaction costs of an international border to 4. The data relating to 2013-14 covers the period April 2013 to Scottish firms would be around £600 million, and about December 2013. £500 million to firms in the continuing UK.

Facility time taken by union Pay representatives Percentage of total (days) working days Margaret Curran: To ask the Secretary of State for 2011-12 17,219 0.09 Scotland what estimate he has made of the change to 2012-13 15,409 0.08 average wages in Scotland since 2010. [191840] 2013-14 3,124 0.02 Mr Alistair Carmichael: Official ONS data taken Work Programme from Annual Survey of Hours and Earnings (ASHE) Results for the years 1997 to 2013, published on 27 Stephen Timms: To ask the Secretary of State for February 2014, show that median gross annual earnings Work and Pensions what assessment he has made of the in Scotland rose by 5.0% between the years 2010 and effectiveness of the differential payment regime in the 2013. Work Programme in reducing creaming and parking. [192191] Unemployment: Young People

Esther McVey: The independent evaluation explores Margaret Curran: To ask the Secretary of State for the pricing structure of the Work programme. The Scotland how many people aged 18 to 24 years in Department will publish findings once the independent Scotland have been unemployed for (a) six months, (b) evaluation of the Work programme is complete. one year, (c) two years and (d) more than two years. [191839]

SCOTLAND Mr Alistair Carmichael: According to the latest official statistics, in January 2014 the number of 18 to 24-year-olds Unemployment in Scotland claiming unemployment benefit was as follows: 8,700 claiming for over six months, 4,700 claiming 10. Mr Donohoe: To ask the Secretary of State for over 12 months and 2,000 claiming for over 24 months. Scotland how many 18 to 24 year olds in Scotland have been unemployed for two years or more. [903089]

David Mundell: Latest official labour market statistics JUSTICE from today show that in February the number of 18 to 24-year-olds claiming jobseeker’s allowance in Scotland for over 24 months was 1,900. Electronic Tagging

11. Pamela Nash: To ask the Secretary of State for Dan Jarvis: To ask the Secretary of State for Justice Scotland how many 18 to 24 year olds in Scotland have how many offenders have been electronically monitored been unemployed for two years or more. [903091] under Part 3 of the Criminal Justice and Court Services Act 2000 since its introduction. [191651] David Mundell: Latest official labour market statistics from today show that in February the number of 18 to Jeremy Wright: Data required to disaggregate the 24-year-olds claiming jobseeker’s allowance in Scotland number of new electronic monitoring starts by legislative for over 24 months was 1,900. provision under which electronic monitoring was imposed are not held centrally and could be obtained only at Scottish Independence disproportionate cost. 12. Michael Connarty: To ask the Secretary of State for Scotland what steps he is taking to encourage small Family Proceedings: Wales and medium-sized businesses to participate in the debate on Scottish independence. [903092] Jessica Morden: To ask the Secretary of State for Justice how many private family law cases there were in Mr Alistair Carmichael: My ministerial colleagues, (a) Gwent and (b) Wales civil and family tribunals my officials, and I, engage with businesses of all sizes cluster between April 2012 and April 2013; and in how across Scotland on a regular basis, encouraging them to many such cases both parties had legal representation. fully participate in the debate on Scottish independence. [191564] 641W Written Answers19 MARCH 2014 Written Answers 642W

Mr Vara: Information for parties representation is release by the Parole Board. A life sentence prisoner available for family courts at a national level in table 2.4 with a minimum term will only be released if and when of Court Statistics Quarterly and it is available at this the Parole Board is satisfied that it is safe to do so. If link: released, the offender will remain on licence and subject https://www.gov.uk/government/publications/court-statistics- to recall to prison for the rest of his or her life. All quarterly-july-to-september-2013 offenders serving a life sentence, therefore, remain subject Breaking down the parties representation figures for to the sentence for the whole of their lives. Wales nationally and for Gwent locally, private law Reliable electronic records on sentences given to offenders disposals in Family Proceedings courts and County are only available from 1984 onwards. A manual search courts are listed in the following table: through all sentencing records prior to this date would Financial year 2012-13 be required to identify the number of offenders given Wales Gwent life sentences. Completing this exercise would be at a disproportionate cost. Both applicant and 3,332 602 respondent Table 1 therefore presents the number of offenders All cases 5,557 994 sentenced to life imprisonment for each of the last three decades since 1984, up to and including 2012 which is Homicide the latest full year for which data is available. Data for 2013 is due for publication in May 2014. Nick de Bois: To ask the Secretary of State for Justice Reliable electronic records on prisoner discharges are (1) what representations he has received on legislation only available from 1992 onwards. A manual search on killing by one punch; and if he will make a through all prisoner records prior to this date would be statement; [190184] required to identify which of those were serving life (2) what plans he has to bring forward legislative sentences, and how long they served. Completing this proposals on killing by one punch; and if he will make a exercise would be at a disproportionate cost. statement; [190185] The Ministry of Justice has, however, published the (3) if he will introduce a mandatory 10 year minimum average time served by prisoners discharged on first prison sentence for anyone who kills someone with a release from prison on life licence. For the period 2002 single punch while under the influence of alcohol; and to 2012, which is the latest available, this information if he will make a statement. [190186] can be found in Offender Management Caseload Statistics 2012, Discharge Tables 2012, Table A3.5. Data for 2013 Jeremy Wright: The Lord Chancellor and Secretary is due for publication in April 2014. Offender Management of State for Justice, my right hon. Friend the Member Caseload Statistics 2012 is available at this link: for Epsom and Ewell (Chris Grayling), has not received https://www.gov.uk/government/publications/offender- any recent representations on legislation relating to management-statistics-quarterly--2 killing by one punch. Such offending behaviour is covered by the existing offence of manslaughter and we have no There were 7,463 life prisoners held in prisons in plans to change the law in this area. England and Wales on 31 December 2013. Of these Manslaughter carries a maximum penalty of life 7,188 received their sentence in or after 1980. There imprisonment, which gives the courts full flexibility to were 164 life prisoners for whom a sentence date has not deal with all the circumstances of the cases which come been updated or completed on the administrative IT before them. This is particularly important as manslaughter system from which this information is taken. Although covers a broad range of behaviour. The Court of Appeal not recorded electronically, this information will be issued a guideline judgment in 2009 on sentencing for recorded on each individual’s prison record and will unlawful act manslaughter in which it stated that attention therefore be known to NOMS staff dealing with their should be paid to the problem of gratuitous, unprovoked case. Table 2 presents this information broken down by violence in our city centres and streets. decade. Reliable electronic records on the number of deaths Life Imprisonment of life sentenced prisoners are only available from 1990 onwards. Jim Shannon: To ask the Secretary of State for Justice While the database on deaths in prison custody holds how many people received a life sentence in each of the details of deaths since 1978, information on the sentence last three decades; what length of sentence each served; of prisoners is not recorded for all prisoners who died how many such prisoners are still in prison; and how prior to 1990. To ascertain this information a manual many such prisoners died while serving their sentence. search through all prisoner records prior to this date [190386] would be required to identify which of those were serving life sentences and died in prison custody.Completing Jeremy Wright: A life sentence is mandatory on this exercise would be at a disproportionate cost. conviction for murder and is the maximum penalty available for other very serious offences. When imposing Table 3 therefore presents the number of deaths of a life sentence, the court must determine whether the life sentenced prisoners who were sentenced to life offence is so exceptionally serious that a whole life order imprisonment since 1980, for each decade since 1990 up must be imposed or, if not, what minimum term must to and including 2012, which is the latest full year for be served for the purposes of punishment and deterrence which data is available. Data for 2013 is due for publication before the offender is eligible to be considered for in April 2014. 643W Written Answers19 MARCH 2014 Written Answers 644W

Table 1: Number of offenders sentenced to life imprisonment1, England percentage of MIAMs undertaken was 65%, well above and Wales, 1984-2012 the average, suggesting that a greater percentage of Period Number of offenders people are progressing to mediation. From 1984 to 1989 1,340 While the number of referrals to MIAMs and couples From 1990 to 1999 3,085 starting mediation has fallen, the percentage of cases From 2000 to 2009 5,216 where full or partial mediation agreements are reached From 2010 to 2012 1,187 increased to 73% (4,066 of the 5,589) in April-September Total 10,828 2013, compared with 70% (5124 out of the 7,310) 1 The figures given in the table on court proceedings relate to persons during the same period in 2012. for whom these offences were the principal offences for which they The Ministry of Justice and the Legal Aid Authority were dealt with. When a defendant has been found guilty of two or are monitoring referral levels to ensure that services can more offences it is the offence for which the heaviest penalty is imposed. Where the same disposal is imposed for two or more be accessed from ever local area. More widely, the offences, the offence selected is the offence for which the statutory Government is committed to making sure that more maximum penalty is the most severe. people make use of mediation rather than go through the confrontational and stressful experience of going to Table 2: Number of prisoners on a life1 sentence in the prison population as at 31 December 2013 broken down by date of sentence, court. The Children and Families Act 2014 places a England and Wales legal obligation on an applicant to attend MIAM to Date of sentence Number of prisoners consider mediation before being able to issue court proceedings in certain private family law matters (unless Before 1980 111 exemptions apply—such as increase in domestic violence). From 1980 to 1989 357 We are undertaking a range of activities to raise From 1990 to 1999 1,093 awareness of family mediation and the fact that it is still From 2000 to 2009 4,255 in scope for public funding, for those that qualify. In From 2010 to 2013 1,483 addition the Department is working closely with the Sentence length not recorded2 164 mediation profession and recently held a roundtable Total 7,463 event to discuss current issues. We have also provided 1 Includes mandatory, discretionary, automatic life sentences and posters and leaflets to help services promote themselves. those relating to young adults and juveniles held in prison custody. 2 Although not recorded electronically, this information will be recorded on each individual’s prison record and will therefore be known to Prisoners’ Release NOMS staff dealing with their case. Table 3: Number of deaths in prison custody of prisoners sentenced to Sadiq Khan: To ask the Secretary of State for Justice life since 1980, England and Wales, 1990-2012 how many releases from prison in error there have been Period Number of deaths in each month since May 2010, by category of prisoner. [189947] From 1990 to 1999 110 From 2000 to 2009 231 From 2010 to 2012 103 Jeremy Wright: Releases in error are taken very seriously and action has been taken to tighten processes and Total 444 focus managers’ attention in this area. All incidents are All of these tables have been produced using information subject to investigation. The majority of prisoners released taken from administrative IT systems which, as with in error are returned to custody quickly. Releases in any large scale recording system, are subject to possible error are infrequent. In the 12 months to September errors with data entry and processing. 2013 there were 46 releases in error from prison, which equated to 0.06% of all discharges from prison. These Mediation: Matrimonial Proceedings are the latest data on discharges from prison. This compares to 68 releases in error in 2009-10. John Pugh: To ask the Secretary of State for Justice It is not possible to provide details of releases in error what assessment the Government has made of trends by category of prisoner. The category of prisoner at in the take-up of mediation following recent legal aid time of release in error is not recorded in incident changes applicable to matrimonial law. [180342] reports and live data shows details of the current security category only. No category A prisoners have been released Simon Hughes: Monthly data is collated by the Legal in error since May 2010. Aid Agency on the number of mediation cases which Table 1: Releases in error from prisons, by month between May 2010 receive public funding for the mediation information and September 2013 and assessment meeting (MIAM) and for mediation Month Number of releases in error starts. The position in respect of privately funded mediation is unknown. 2010 Available comparative data for the period April- May 2 September 2013 over the same period for 2012 shows a June 4 51% decrease in MIAMs; and a 34% decrease in mediation July 6 starts. August 7 Although a case on case analysis is not possible, the September 5 data available suggests the take up of mediation following October 7 a MIAM remains steady and year on year between 2011 November 2 and 2013 it has averaged at about 51%. For the period December 3 April-September 2013 the take up of mediation as a 645W Written Answers19 MARCH 2014 Written Answers 646W

Table 1: Releases in error from prisons, by month between May 2010 homicide, other: non-natural and other: awaiting further and September 2013 information. A range of statistics on deaths in prison Month Number of releases in error custody is published annually in the Safety in Custody 2011 statistical bulletin supplementary tables on deaths with updates on the number of deaths of prison custody January 5 published quarterly. This bulletin is published at: February 6 https://www.gov.uk/government/collections/safety-in-custody- March 3 statistics April 3 The supplementary tables on deaths in prison custody May 3 cover the period between 1978 and 2012; statistics for June 3 2013 are due for publication on 24 April 2014. July 3 As some prisons share both adult and youth functions August 6 statistics on the number of deaths in prison custody is September 3 presented in Table 1 by gender and age. Table 2 presents October 3 the number of deaths in prison custody of black, Asian, November 2 mixed and other non-white ethnic groups. Minority December 1 groups of white ethnicity will not be included in this table as they will be classified in the broader white 2012 ethnic group. January 2 Table 1: Number of deaths in prison custody by classification, gender February 8 and age group March 3 Male Female April 3 2010 2011 2012 2010 2011 2012 May 3 Self-inflicted June 3 15 to 17 012000 July 3 years old August 2 18 to 20 462010 September 1 years old October 5 21 years old 534855111 November 1 and over December 3 Natural 2013 causes 15 to 17 000000 January 3 years old February 5 18 to 20 000000 March 3 years old April 2 21 years old 122 118 118 3 3 3 May 4 and over June 6 July 4 Homicide August 3 15 to 17 000000 September 7 years old Notes: 18 to 20 000000 1. These figures have been drawn from live administrative data years old systems which may be amended at any time. Although care is taken 21 years old 120000 when processing and analysing the returns, the detail collected is and over subject to the inaccuracies inherent in any large scale recording system. 2. The number of releases in error may change should further incidents Other: non- be reported. natural Prisoners: Death 15 to 17 000000 years old 18 to 20 000000 Sadiq Khan: To ask the Secretary of State for Justice years old (a) (b) (1) how many self-inflicted, non self-inflicted, 21 years old 892300 (c) other non natural causes, (d) restraint, (e) homicide, and over (f) awaiting classification deaths there were in (i) adult male prisons, (ii) adult female prisons, (iii) youth male Other: prisons and (iv) youth female prisons in each year since awaiting 2010; [191290] further (2) how many deaths in custody in (a) 2010, (b) information 2011, (c) 2012 and (d) 2013 were prisoners of black, 15 to 17 000000 Asian and minority ethnic origin. [191292] years old 18 to 20 000000 Jeremy Wright: The National Offender Management years old 21 years old 239000 Service classification system for deaths in prison custody and over uses the following terms: self-inflicted, natural causes, 647W Written Answers19 MARCH 2014 Written Answers 648W

Table 2: Number of deaths in prison custody of prisoners by non-white Jeremy Wright: The information requested is not ethnic groups collected centrally and could not be obtained without 2010 2011 2012 incurring disproportionate cost. Self-inflicted Black 2 2 4 Risley Prison Asian 3 3 3 Mixed115Helen Jones: To ask the Secretary of State for Justice Other 1 1 0 (1) when workshops have been closed at HM Prison Risley since October 2013; [183443] Natural causes (2) which wings at HM Prison Risley have been Black 8 10 7 locked down for half a day due to staff shortages since Asian 7 5 4 October 2013; [183444] Mixed030(3) how many times a wing at HM Prison Risley Other 0 0 0 has been locked down during the lunch period since 1 October 2013. [183445] Homicide Black 0 0 0 Jeremy Wright: A workshop was closed at Risley Asian 0 0 0 prison on 110 occasions, either for a morning or an Mixed100afternoon, between 1 October 2013 and 17 January Other 0 0 0 2014. Seven wings at the prison have been locked-down for Other: Non-natural half-a day at some point as a result of staff sickness. The prison management take every step possible to Black 1 0 0 reduce this to a minimum. Asian 1 0 0 Mixed000There have been 76 occasions when a single wing at Other 0 0 0 Risley has been locked down during lunchtime during the same period.

Other: Awaiting All unplanned regime curtailments have been caused further information by high levels of staff sickness absence and not staff Black 0 0 0 shortages; A new strategy for managing staff sickness Asian 0 0 0 was introduced in February to address this. The prison Mixed000remains fully resourced to deliver an effective and purposeful Other 0 0 0 regime. We also recently introduced changes to the regime to rotate necessary wing closures during the core day, but ensure that workshops and education remain Prisons open at all times.

Sadiq Khan: To ask the Secretary of State for Justice Social Security Benefits: Appeals which prisons have been locked out in each month since May 2010; and on how many occasions each such prison has been locked out. [189680] John Hemming: To ask the Secretary of State for Justice (1) how many tribunals have been stayed pending Jeremy Wright: The information requested is not decisions in other courts relating to decisions on benefits collected centrally and could not be obtained without for over six months; how many claimants this involves; incurring disproportionate cost. and what the total value of benefits involved is; [190406] (2) how many tribunals considering appeals on Prisons: Food benefits decisions are currently held pending decisions Mark Pritchard: To ask the Secretary of State for in other courts; how many claimants this affects; what Justice what the cost is of preparing (a) halal and (b) the value of such benefit claims is; and if he will make a statement. [190408] non-halal food in the Prison Service. [191311] Jeremy Wright: While public sector prisons in England Mr Vara: The first-tier tribunal—social security and and Wales provide around 82 million prisoner meals per child support (SSCS), administered by HM Courts and year, the National Offender Management Service (NOMS) Tribunals Service (HMCTS), hears appeals against does not require prisons to provide food preparation Department for Work and Pensions (DWP) decisions costs categorised by religious, cultural or medical need, on a range of benefits. rather all meal costs are included within the total food (1) As at 30 September 2013 (the most recent period for which account figure. statistics have been published) there were 1,179 stayed cases aged over six months. Each case represents one claimant. It is not Prisons: Overcrowding possible to quantify the amount of benefit due to these claimants as every case awaiting an appeal would potentially have a different Sadiq Khan: To ask the Secretary of State for Justice amount due. how many prisoners sent to local prisons by courts have (2) As at 30 September 2013 there were no appeals against been sent on to a alternative prison due to overcrowding benefit decisions on hold at the tribunal pending decisions in in each month since September 2013. [189681] other courts. 649W Written Answers19 MARCH 2014 Written Answers 650W

Squatting (3) what the (a) quantity and (b) value of all single use military equipment tangible fixed asset items Sir Tony Cunningham: To ask the Secretary of State valued at £1 million or over held on Air Command’s for Justice pursuant to the answer of 10 December balance sheet is. [191823] 2013, Official Report, column 127W, on squatting, what the cost to the public purse has been of hearings in Mr Dunne: Only one of Air Command’s tangible relation to the case of a constituent of the hon. Member fixed asset items with a present Net Book Value of over for Workington, Gary Tomlinson, Claim Number £1 million is held on its Balance Sheet. It is valued at OWH00080, Cert Number JBIRQK61BB77/A/E/1; for £3 million. The remaining assets are held on the Defence what reasons legal aid funding in relation to this case Equipment and Support Balance Sheet. The total number was withdrawn; and if he will place in the Library a and value of such assets, rounded to the nearest million, copy of the report in relation to that withdrawal decision. is shown in the following table. [191542] Total Value Mr Vara: The overall cost to the public purse of Asset Type Total Number (£ million) hearings in relation the case of Gary Tomlinson cannot be provided. Assets Under 49 M14 Construction1 The cost to HM Courts and Tribunals Service of the IT and Comms 5 8 hearings involved in this case would require an estimate Single Use 263 6,726 of the of the judicial time spent on each of the hearings, Military and the time of each member of staff spent on Equipment administrating those hearings. This could be provided 1 The values held for Assets Under Construction (AUC) are at only at disproportionate cost. Programme level; it is only at Delivery stage that a value is attached The receipt of legal aid is considered to be personal to an individual asset. data and the Department has certain obligations under The asset types are those categories under which the the Data Protection Act 1998 which would prevent it assets are recorded in the Ministry of Defence fixed from disclosing this type of information. Furthermore, asset register. the LAA is further prohibited by statute from disclosing information relating to the provision of legal aid in Armed Forces: Disciplinary Proceedings individual cases (under section 34 of the LASPO Act 2012, section 20 of the Access to Justice Act 1999, and before this under section 38 of the Legal Aid Act 1988). Mrs Moon: To ask the Secretary of State for Defence how many cases were taken to summary appeal courts Theft: Metals in each year since 2006 by members of each branch of the armed forces; and if he will make a statement. Philip Davies: To ask the Secretary of State for Justice [191445] how many people have been (a) charged with and (b) convicted of any offences relating to scrap metal theft in Anna Soubry: The following table shows the number each of the last three years. [191467] of summary appeal cases (SAC) taken to court since 2009 (when the Service Prosecuting Authority came Jeremy Wright: Information held centrally by the into full operation) and by which service: Ministry of Justice on the Court Proceedings Database does not contain information about the circumstances Service 2009 2010 2011 2012 2013 behind each case, beyond the description provided in the statute under which proceedings are brought. It is Royal Navy 13 12 8 11 7 not possible to identify from this centrally held information Army 39 43 56 59 43 those found guilty of offences specifically of scrap Royal Air 1111554 metal theft as opposed to other offences of theft. This Force detailed information may be held on the court record but due to the size and complexity is not reported The figures relate to the year the case was heard at centrally to the MOJ. As such, the information requested court. This is not necessarily the same year as the SAC can be obtained only at disproportionate cost. referral was received. Charging data is not held by the Ministry of Justice. The most relevant information available for earlier years is contained in the answer my predecessor (Mark Francois) gave on 22 April 2013, Official Report, column 613W,However these figures are not directly comparable DEFENCE because each case as reported above may include more Air Force: Assets than one defendant and more than one charge.

Nicholas Soames: To ask the Secretary of State for Mrs Moon: To ask the Secretary of State for Defence Defence (1) what the value of each asset under contraction how many (a) serving and (b) former members of each valued at £1 million or more held on Air Command’s branch of the armed forces received compensation following balance sheet is; [191821] the end of the previous policy of disciplining personnel (2) what the (a) quantity and (b) value of all who received a police caution; and if he will make a information technology tangible fixed assets items statement. [191502] valued at £1 million or over held on Air Command’s balance sheet is; [191822] Anna Soubry: No such compensation has been paid. 651W Written Answers19 MARCH 2014 Written Answers 652W

Mrs Moon: To ask the Secretary of State for Defence Army: Northern Ireland how much compensation has been paid to (a) serving and (b) former members of each branch of the armed Dr McCrea: To ask the Secretary of State for Defence forces who were disciplined following receipt of a how many (a) army applications and (b) successful police caution; and if he will make a statement. army applications from Northern Ireland there have [191503] been in the last three years. [191855] Anna Soubry: No such compensation has been paid. Anna Soubry: The total number of soldiers from Northern Ireland who applied and who entered service Mrs Moon: To ask the Secretary of State for Defence in the last three years, including 2013-14 to date, is how many serving members in each branch of the shown in the following table: armed forces were deemed to have lost out on promotion following receiving a police caution in the last 10 years; Northern Ireland and if he will make a statement. [191525] Regular Reserve Applications Entrants Applications Entrants

Anna Soubry: This information could be provided 2011-12 1,950 280 1,160 280 only at disproportionate cost. 2012-13 1,500 270 1,010 200 2013-14 1,200 200 800 80 Note: Armed Forces: Inquiries All figures have been rounded to 10. All figures ending in 5 have been rounded to the nearest multiple of 20 to prevent systematic bias.

Angus Robertson: To ask the Secretary of State for D-Day Landings: Anniversaries Defence what conditions have to apply in order to prevent the release of a Service Inquiry report to the general public. [191597] Vernon Coaker: To ask the Secretary of State for Defence (1) what estimate his Department has made of Anna Soubry: The publication of Service Inquiry how many veterans of the D-Day landings will travel to reports is considered on a case by case basis. The Normandy for the 70th anniversary of those landings; arrangements are set out in Chapter seven of Joint [191645] Service Publication 832 (’Guide to Service Inquiries’). (2) what steps his Department is taking to assist A copy of that document can be found at veterans of the D-Day landings to take part in the https://www.gov.uk/government/collections/service-inquiry-si Normandy 70 commemorations; [191646] along with a list of published reports of Service Inquiries, (3) what plans his Department has to hold a national Boards of Inquiry, and Military Aircraft Accident event in London to mark the 70th anniversary of the Summaries. D-Day landings; [191647] (4) what representations his Department has received Armed Forces: Museums and Galleries about holding a national event in London to mark the 70th anniversary of the D-Day landings. [191648]

Michael Fabricant: To ask the Secretary of State for Anna Soubry: The Ministry of Defence (MOD) is Defence how many visitors there were at the (a) working closely with partners across Government and National Army Museum, (b) Royal Air Force with external agencies, including the Normandy Veterans Museum, (c) National Museum of the Royal Navy Association (NVA) and the Royal British Legion (RBL), and (d) National Memorial Arboretum in the last year to deliver a fitting programme of commemorations to for which figures are available; and what the planned mark the 70th anniversary of the D-Day landings. grant-in-aid is for each such attraction in 2014-15. Veterans interested in attending events in Normandy [191425] have been asked to register their interest with the RBL, to allow an estimate of numbers planning to travel. Anna Soubry: The information requested is contained in the following table: Veterans wishing to make the trip to Normandy are able to apply for financial support from the Big Lottery Planned grant in aid Fund, which has extended its Heroes Return 2 programme Visitors (2012-13) 2014-15 (£ million) until 31 December 2015. This enables veterans, widows, spouses and carers to apply for travel and accommodation Royal Naval 585,276 3.444 expenses to make trips back to places across the world Museum where they served, or make a commemorative visit National Army 254,108 6.540 within the UK. Museum Royal Air Force c.500,000 8.336 The UK’s national events to commemorate the 70th Museum anniversary will take place in Normandy, France. A National Memorial 244,944 1— large event is being organised by Portsmouth city council Arboretum on 5 June 2014 supported by the MOD. The Department 1 Grants in aid to the National Memorial Arboretum from the has received some correspondence from MPs and their Ministry of Defence ceased in September 2013. In April of that year, constituents about holding a national event in London a successful application was made for £625,000 from the LIBOR and will be considering then further veterans groups. fines to offset the end of the grant in aid. The NVA plans to disband this year and will hold 653W Written Answers19 MARCH 2014 Written Answers 654W services to mark the occasion, including the dedication Mr Dunne: As a key element in their training for of a new memorial at the National Memorial Arboretum operational deployment, members of the UK Defence in September 2014. Medical Services attend military Exercise Surgical Training courses in Denmark. Empty Property These exercises are essential to ensure our medical personnel are capable of carrying out potentially life-saving Hilary Benn: To ask the Secretary of State for Defence surgery on casualties with serious bullet and blast wounds. what estimate he has made of the empty property Injuries of such severity are not routinely encountered business rates for the vacant properties recorded on the during their clinical practice in NHS hospitals, but they e-PIMS database owned by (a) his Department and are regularly required to treat them when on operational (b) any executive agencies or non-departmental public deployment. Participating in Danish training minimises bodies of his Department in the current financial year. the number of animals involved. The pigs are treated [191805] humanely with full use of anaesthetics. There are a number of sophisticated simulation models Dr Murrison: As of 14 March 2014 empty property on the market that provide effective training in certain business rates paid on properties owned by the Ministry surgical techniques, and the Ministry of Defence already of Defence for the current financial year is £520,000. uses these where clinically appropriate. However, none While a site is vacant and awaiting disposal it will incur of those currently available provide a viable alternative Empty Property Business rates as any buildings until it to the serious bullet and blast wound training that our is disposed of. surgeons receive from live pig models. There are no empty properties owned by executive agencies or non-departmental bodies, therefore no rates have been paid in the current financial year. ELECTORAL COMMISSION COMMITTEE Marines: Northern Ireland Elections

Dr McCrea: To ask the Secretary of State for Chris Ruane: To ask the hon. Member for South West Defence how many people from Northern Ireland have Devon, representing the Speaker’s Committee on the joined the Royal Marines in each of the last five years. Electoral Commission, what assessment the Electoral [191867] Commission has made of the use of positive role models and celebrities to increase electoral registration and Anna Soubry: Recruitment into the Royal Marines is voter turnout. [190821] co-ordinated through Armed Forces careers offices, not by geographic areas. Candidates from Northern Ireland Mr Streeter: The Electoral Commission informs me would normally be processed through the Belfast office that it has not made an assessment of the use of positive but any candidate may apply to any recruitment office role models and celebrities in its public awareness work. in the UK. In addition, a number of officer candidates, This is due to the risk that they might have political notably specialists, are processed centrally through the affiliations which would lead to the neutrality of the Admiralty Interview Board. Commission’s work being called into question. The numbers shown in the following table relate to entrants processed through the Belfast office only, and Electoral Register do not reflect the region the recruit originates from. Chris Ruane: To ask the hon. Member for South West Number Devon, representing the Speaker’s Committee on the Electoral Commission, for what reasons the Commission’s 2008-09 19 estimate of unregistered voters was four million in 2010 2009-10 22 and six million in December 2011. [190818] 2010-11 26 2011-12 20 Mr Streeter: The Electoral Commission informs me 2012-13 30 that it provided estimates for the completeness of the 2013-14 21 December 2010 and April 2011 registers in Great Britain in its ‘Great Britain’s electoral registers 2011’ report. These figures are Single Service Estimates for officers The report indicated that at least six million people and other ranks for the Regular Service only, including were not registered at their current address in December Royal Marine Band Service entrants. 2010 and this figure had risen to 8.5 million by April 2011. Military Exercises This change to the accuracy and completeness of the electoral register within such a time period is not unexpected. Caroline Lucas: To ask the Secretary of State for In any given year there will be a variety of reasons why Defence if his Department will abandon the use of live such a change would occur, the most significant of pigs in military battlefield exercises; whether he has had which will usually be the impact of home movement discussions with his counterpart in Germany, Italy, the after the annual canvass, which was the case in this Netherlands and Poland to learn from their use of instance. mannequins as a replacement; and if he will make a The Commission’s report explaining the background statement. [191896] to its research can be found here: 655W Written Answers19 MARCH 2014 Written Answers 656W

http://www.electoralcommission.org.uk/__data/assets/ pdf_file/0007/145366/Great-Britains-electoral-registers- Percentage 2011.pdf Green Amber Red Ward matches matches matches

Chris Ruane: To ask the hon. Member for South Cefn Glas 88.7 0.7 10.6 West Devon, representing the Speaker’s Committee on Coity 73.8 3.5 22.7 the Electoral Commission, what the data matching Connelly 84.2 1.8 14.0 rates were for university students living in university Coychurch Lower 83.6 3.1 13.3 towns. [190822] Felindre 85.0 1.3 13.7 Hendre 87.8 1.2 11.0 Mr Streeter: The Electoral Commission refers the hon. Member to the answer to his previous question Litchard 88.6 0.6 10.7 (177062), on 29 November 2013, Official Report, columns Llangeinor 84.3 1.6 14.2 455-56W, which outlined the background on match Llangewydd and 87.0 1.1 11.9 Brynhyfryd rates for students in university towns. Llangynwyd 88.4 1.6 10.0 Chris Ruane: To ask the hon. Member for South Maesteg East 87.6 1.8 10.7 West Devon, representing the Speaker’s Committee on Maesteg West 87.5 2.2 10.3 the Electoral Commission, what the registration rates Morfa 82.4 1.4 16.2 were in the review of the national estimate of the Nant-y-moel 85.3 2.1 12.6 completeness of the electoral register in England and Newcastle 84.8 1.5 13.7 Wales in 2000 and the Electoral Commission’s research Newton 83.7 2.5 13.7 on Great Britain’s electoral register in 2011. [190823] Nottage 85.5 2.3 12.2 Ogmore Vale 85.6 1.9 12.4 Mr Streeter: The Electoral Commission informs me Oldcastle 82.8 1.7 15.4 that its research on the December 2000 registers in Pendre 83.8 1.4 14.9 England and Wales found that 8%-9% of eligible people Penprysg 88.3 1.7 10.0 were not registered at their current address. Pen-Y-Fai 83.8 3.1 13.1 Their subsequent research across Great Britain found Pontycymmer 84.2 2.1 13.7 that, in December 2010 and April 2011, 13%-15% and Porthcawl East 84.3 2.5 13.2 18% respectively of eligible people were not registered Central at their current address. Porthcawl West 79.2 5.1 15.7 Central Electoral Register: Bridgend Pyle 85.8 1.4 12.8 Rest Bay 85.4 2.7 12.0 Mrs Moon: To ask the hon. Member for South West Sarn 89.1 1.6 9.4 Devon, representing the Speaker’s Committee on the Ynysawdre 83.5 2.2 14.4 Electoral Commission, what the electoral registration figures were in each ward in the recent confirmation Results for all wards are available on the Commission’s dry run conducted in Bridgend County Borough website here: Council; and if he will make a statement. [191195] http://www.electoralcommission.org.uk/__data/assets/ excel_doc/0003/163146/Confirmation-dry-run-2013-Results- Mr Streeter: The Electoral Commission informs me Wards.xls that the confirmation dry run involved matching all The Electoral Commission also produced a report entries on the electoral registers against the Department analysing the results of the Confirmation Dry Run for Work and Pensions (DWP) Customer Information Process, which can be found on its website here: System database. Entries would be marked as green if http://www.electoralcommission.org.uk/__data/assets/ they matched with DWP, amber if they were a partial pdf_file/0019/163144/Confirmation-Dry-run-2013-Results- match or red if there was no match. report.pdf The ward results for Bridgend county borough council were as shown in the following table: Electoral Register: Gateshead

Percentage Mr Anderson: To ask the hon. Member for South Green Amber Red West Devon, representing the Speaker’s Committee on Ward matches matches matches the Electoral Commission, what the electoral registration figures were in each ward in the recent Aberkenfig 84.3 2.1 13.7 confirmation dry run conducted in (a) Gateshead Bettws 87.7 1.5 10.8 Council and (b) Blaydon constituency. [191206] Blackmill 84.6 2.3 13.1 Blaengarw 87.2 1.9 10.9 Mr Streeter: The Electoral Commission informs me Brackla 82.5 1.0 16.5 that the confirmation dry run involved matching all Bryncethin 82.7 1.3 16.1 entries on the electoral registers against the Department Bryncoch 81.2 2.9 15.9 for Work and Pensions (DWP) Customer Information Bryntirion Laleston 83.2 1.5 15.3 System database. Entries would be marked as green if and Merthyrmawr they matched with DWP, amber if they were a partial Caerau 86.2 1.7 12.1 match or red if there was no match. Cefn Cribwr 85.3 2.8 11.9 The ward results for Gateshead council were as follows: 657W Written Answers19 MARCH 2014 Written Answers 658W

http://www.electoralcommission.org.uk/__data/assets/ Percentage excel_doc/0003/163146/Confirmation-dry-run-2013-Results- Green Amber Wards.xls Ward matches matches Red matches Electoral Register: Greater Manchester Birtley 85.6 1.4 13.0 Blaydon 84.0 1.2 14.8 David Heyes: To ask the hon. Member for South Bridges 73.7 2.0 24.3 West Devon, representing the Speaker’s Committee on Chopwell and 85.1 1.8 13.1 Rowlands Gill the Electoral Commission, what the electoral registration figures in each ward were in the recent confirmation dry Chowdene 88.7 1.3 10.0 run conducted in (a) Oldham Metropolitan Borough Crawcrook and 84.6 1.9 13.5 Greenside and (b) Tameside Metropolitan Borough. [191196] Deckham 82.8 1.5 15.7 Dunston and 80.5 1.4 18.1 Mr Streeter: The Electoral Commission informs me Teams that the confirmation dry run involved matching all Dunston Hill 87.6 1.4 11.0 entries on the electoral registers against the Department and Whickham for Work and Pensions (DWP) Customer Information East System database. Entries would be marked as green if Felling 84.5 1.3 14.2 they matched with DWP, amber if they were a partial High Fell 85.5 1.9 12.6 match or red if there was no match. Lamesley 84.8 2.0 13.1 The ward results for Oldham metropolitan borough Lobley Hill and 82.1 1.7 16.2 council were as follows: Bensham Low Fell 85.1 1.3 13.6 Percentage Pelaw and 85.6 1.2 13.2 Amber Heworth Ward Green matches matches Red matches Ryton, 85.3 1.6 13.1 Crookhill and Alexandra 75.7 2.8 21.5 Stella Chadderton 84.1 1.4 14.5 Saltwell 76.9 2.1 21.0 Central Wardley and 88.0 1.0 11.0 Chadderton 83.6 1.6 14.9 Leam Lane North Whickham 86.4 1.2 12.4 Chadderton 82.7 1.4 15.8 North South Whickham 88.2 1.4 10.4 Coldhurst 71.2 4.6 24.1 South and Crompton 86.4 1.4 12.2 Sunniside Failsworth East 84.1 1.7 14.2 Windy Nook 88.1 1.0 10.9 Failsworthwest 84.0 1.2 14.7 and Whitehills Hollinwood 83.5 2.0 14.5 Winlaton and 87.1 1.7 11.2 High Spen Medlock Vale 79.2 3.0 17.7 Royton North 86.6 1.4 12.0 The ward results for the Blaydon constituency were Royton South 84.8 1.1 14.1 as follows: Saddleworth 82.0 3.8 14.2 North Green Amber Saddleworth 83.7 2.2 14.1 Ward matches matches Red matches South Saddleworth 83.2 1.3 15.5 Birtley 84.0 1.2 14.8 West and Lees Blaydon 85.1 1.8 13.1 Shaw 83.2 1.6 15.2 Chopwell and 84.6 1.9 13.5 St James’ 83.1 1.2 15.8 Rowlands Gill St Mary’s 75.7 4.5 19.8 Crawcrook and 87.6 1.4 11.0 Waterhead 80.8 2.4 16.8 Greenside Werneth 72.9 4.9 22.2 Dunston Hill 84.8 2.0 13.1 and Whickham The ward results for Tameside metropolitan borough East council were as follows: Lamesley 85.3 1.6 13.1 Ryton, 86.4 1.2 12.4 Amber Crookhill and Ward Green matches matches Red matches Stella Whickham 88.2 1.4 10.4 Ashton Hurst 84.70 1.30 13.90 North Ashton St 79.70 1.90 18.30 Whickham 87.1 1.7 11.2 Michael’s South and Ashton 83.80 1.70 14.50 Sunniside Waterloo Winlaton and 84.0 1.2 14.8 Audenshaw 83.80 0.90 15.30 High Spen Denton North 83.20 1.20 15.60 East Results for all wards are available on the Commission’s Denton South 85.60 1.20 13.20 website here: 659W Written Answers19 MARCH 2014 Written Answers 660W

Amber Percentage Ward Green matches matches Red matches Amber Ward Green matches matches Red matches Denton West 84.80 1.20 14.00 Droylsden 83.70 1.20 15.10 Hazel Grove 85.5 0.9 13.5 East Heald Green 85.1 1.1 13.8 Droylsden 85.00 1.00 14.00 Heatons North 79.7 1.7 18.6 West Heatons South 81.0 1.3 17.7 Dukinfield 82.20 1.40 16.50 Manor 82.7 1.3 15.9 Dukinfield 84.30 1.20 14.50 Marple North 85.5 1.5 13.0 Stalybridge Marple South 84.7 1.6 13.7 Hyde Godley 80.50 2.10 17.40 Offerton 85.1 0.8 14.0 Hyde Newton 82.10 1.30 16.60 Reddish North 82.0 1.3 16.7 Hyde Werneth 81.20 2.10 16.70 Reddish South 81.7 1.3 17.0 Longdendale 83.30 2.10 14.60 Stepping Hill 85.1 1.0 13.9 Mossley 78.70 2.00 19.30 St Peter’s 75.40 2.50 22.00 The ward results for Tameside metropolitan borough Stalybridge 83.20 1.40 15.50 council were as follows: North Stalybridge 83.10 1.30 15.60 Percentage South Amber Ward Green matches matches Red matches Results for all wards are available on the Commission’s website here: Ashton Hurst 84.7 1.3 13.9 Ashton St 79.7 1.9 18.3 http://www.electoralcommission.org.uk/__data/assets/ Michael’s excel_doc/0003/163146/Confirmation-dry-run-2013-Results- Wards.xls Ashton 83.8 1.7 14.5 Waterloo Audenshaw 83.8 0.9 15.3 Andrew Gwynne: To ask the hon. Member for South Denton North 83.2 1.2 15.6 West Devon, representing the Speaker’s Committee on East the Electoral Commission, what the electoral registration Denton South 85.6 1.2 13.2 figures were in each ward in the recent confirmation dry Denton West 84.8 1.2 14.0 run conducted in (a) Stockport Metropolitan Borough Droylsden East 83.7 1.2 15.1 Council, (b) Tameside Metropolitan Council and (c) Droylsden West 85.0 1.0 14.0 [191197] Denton and Reddish constituency. Dukinfield 82.2 1.4 16.5 Dukinfield 84.3 1.2 14.5 Mr Streeter: The Electoral Commission informs me Stalybridge that the confirmation dry run involved matching all Hyde Godley 80.5 2.1 17.4 entries on the electoral registers against the Department Hyde Newton 82.1 1.3 16.6 for Work and Pensions (DWP) Customer Information Hyde Werneth 81.2 2.1 16.7 System database. Entries would be marked as green if Longdendale 83.3 2.1 14.6 they matched with DWP, amber if they were a partial Mossley 78.7 2.0 19.3 match or red if there was no match. St Peter’s 75.4 2.5 22.0 The ward results for Stockport metropolitan borough Stalybridge 83.2 1.4 15.5 council were as follows: North Stalybridge 83.1 1.3 15.6 Percentage South Amber The ward results for the Denton and Reddish Ward Green matches matches Red matches constituency were as follows: Bramhall North 84.9 1.1 13.9 Bramhall South 86.3 1.1 12.6 Percentage Bredbury and 84.5 1.0 14.5 Amber Woodley Ward Green matches matches Red matches Bredbury Green 85.4 1.0 13.6 Audenshaw 83.8 0.9 15.3 and Romiley Denton North 83.2 1.2 15.6 Brinnington 76.3 2.1 21.5 East and Central Denton South 85.6 1.2 13.2 Cheadle and 81.8 1.5 16.7 Droylsden West 85.0 1.0 14.0 Gatley Dukinfield 82.2 1.4 16.5 Cheadle Hulme 83.5 1.2 15.3 North Reddish North 82.0 1.3 16.7 Cheadle Hulme 85.0 1.1 13.9 Reddish South 81.7 1.3 17.0 South Results for all wards are available on the Commission’s Davenport and 78.0 1.7 20.3 Cale Green website here: Edgeley and 78.9 1.5 19.5 http://www.electoralcommission.org.uk/__data/assets/ Cheadle Heath excel_doc/0003/163146/Confirmation-dry-run-2013-Results- Wards.xls 661W Written Answers19 MARCH 2014 Written Answers 662W

Electoral Register: Nottingham Electoral Register: Oxford

Mr Allen: To ask the hon. Member for South West Mr Andrew Smith: To ask the hon. Member for South Devon, representing the Speaker’s Committee on the West Devon, representing the Speaker’s Committee on Electoral Commission, what the electoral registration the Electoral Commission, what the electoral registration figures were in each ward in the recent confirmation figures were in each ward in the recent confirmation dry dry run conducted in (a) Nottingham city council and run conducted in Oxford East constituency. [191199] (b) Nottingham North constituency. [191198] Mr Streeter: The Electoral Commission informs me that the confirmation dry run involved matching all Mr Streeter: The Electoral Commission informs me entries on the electoral registers against the Department that the confirmation dry run involved matching all for Work and Pensions (DWP) Customer Information entries on the electoral registers against the Department System database. Entries would be marked as green if for Work and Pensions (DWP) Customer Information they matched with DWP, amber if they were a partial System database. Entries would be marked as green if match or red if there was no match. they matched with DWP, amber if they were a partial The ward results for the Oxford East constituency match or red if there was no match. were as follows: The ward results for Nottingham city council were as follows: Percentage Amber Percentage Ward Green matches matches Red matches Green Amber Ward matches matches Red matches Barton and 75.6 2.1 22.3 Sandhills Arboretum 42.4 3.4 54.2 Blackbird 77.9 2.2 19.9 Aspley 82.6 1.4 16.0 Leys Basford 79.3 1.6 19.0 Carfax 17.6 2.1 80.3 Berridge 65.0 3.7 31.3 Churchill 54.1 2.4 43.5 Bestwood 83.2 1.4 15.4 Cowley 70.3 2.5 27.2 Bilborough 85.0 1.6 13.4 Cowley 55.6 2.5 41.9 Marsh Bridge 64.0 3.2 32.8 Headington 63.4 3.1 33.5 Bulwell 83.0 1.7 15.4 Headington 53.8 1.9 44.3 Bulwell Forest 85.6 1.4 13.0 Hill and Clifton North 71.8 1.5 26.7 Northway Clifton South 84.3 1.3 14.3 Hinksey Park 60.8 2.7 36.4 Dales 76.4 3.0 20.6 Holywell 7.5 1.2 91.3 Dunkirk and 35.3 1.7 63.0 Iffley Fields 63.6 3.3 33.1 Lenton Littlemore 72.8 2.2 25.0 Leen Valley 81.5 2.5 16.0 Lye Valley 68.6 2.2 29.1 Mapperley 69.5 3.2 27.4 Marston 77.2 1.7 21.1 Radford and 41.8 3.1 55.1 Northfield 79.0 1.7 19.3 Park Brook Sherwood 77.0 2.4 20.6 Quarry and 73.3 2.5 24.2 St Ann’s 65.1 2.7 32.1 Risinghurst Wollaton East 34.0 1.1 64.9 Rose Hill and 75.4 2.5 22.1 and Lenton Iffley Abbey St Clement’s 42.1 3.3 54.6 Wollaton West 85.2 1.5 13.3 St Mary’s 36.1 4.0 59.9

The ward results for the Nottingham North constituency Results for all wards are available on the Commission’s were as follows: website here: http://www.electoralcommission.org.uk/__data/assets/ Percentage excel_doc/0003/163146/Confirmation-dry-run-2013-Results- Green Amber Wards.xls Ward matches matches Red matches Electoral Register: St Helens Aspley 82.6 1.4 16.0 Basford 79.3 1.6 19.0 Mr Watts: To ask the hon. Member for South West Bestwood 83.2 1.4 15.4 Devon, representing the Speaker’s Committee on the Electoral Commission, what the electoral registration Bilborough 85.0 1.6 13.4 figures were in each ward in the recent confirmation Bulwell 83.0 1.7 15.4 dry run conducted in (a) St Helens metropolitan Bulwell Forest 85.6 1.4 13.0 borough council area and (b) St Helens North constituency. [191239] Results for all wards are available on the Commission’s website here: Mr Streeter: The Electoral Commission informs me http://www.electoralcommission.org.uk/__data/assets/ that the confirmation dry run involved matching all excel_doc/0003/163146/Confirmation-dry-run-2013-Results- entries on the electoral registers against the Department Wards.xls for Work and Pensions (DWP) Customer Information 663W Written Answers19 MARCH 2014 Written Answers 664W

System database. Entries would be marked as green if Percentage they matched with DWP, amber if they were a partial Amber match or red if there was no match. Ward Green matches matches Red matches

The ward results for St Helens metropolitan borough Windle 84.0 0.9 15.1 council were as follows: The ward results for the St Helens North constituency Percentage were as follows: Amber Ward Green matches matches Red matches Percentage Amber Billinge and 87.5 1.3 11.1 Ward Green matches matches Red matches Seneley Green Blackbrook 87.6 0.8 11.6 Billinge and 87.5 1.3 11.1 Bold 82.8 1.6 15.6 Seneley Green Earlestown 82.0 1.4 16.6 Blackbrook 87.6 0.8 11.6 Eccleston 87.9 1.1 11.0 Earlestown 82.0 1.4 16.6 Haydock 86.2 1.1 12.6 Haydock 86.2 1.1 12.6 Moss Bank 86.5 0.9 12.7 Moss Bank 86.5 0.9 12.7 Newton 81.9 1.2 16.9 Newton 81.9 1.2 16.9 Parr 80.7 1.3 18.0 Parr 80.7 1.3 18.0 Rainford 86.7 1.9 11.4 Rainford 86.7 1.9 11.4 Windle 84.0 0.9 15.1 Rainhill 87.3 1.0 11.6 Sutton 85.0 1.1 13.9 Results for all wards are available on the Commission’s Thatto Heath 82.1 1.5 16.4 website here: Town Centre 76.8 1.5 21.7 http://www.electoralcommission.org.uk/__data/assets/ West Park 82.1 1.0 16.9 excel_doc/0003/163146/Confirmation-dry-run-2013-Results- Wards.xls 9MC Ministerial Corrections19 MARCH 2014 Ministerial Corrections 10MC

Figures for the number of escapes and absconds since Ministerial Correction 1995 are provided in the Prison Digest contained in the Prison and Probation Trusts Performance Statistics. Wednesday 19 March 2014 This can be found at: https://www.gov.uk/government/uploads/system/uploads/ attachment_data/file/225234/prison-performance-digest-12- JUSTICE 13.xls

Prisoner Escapes The correct answer should have been:

Philip Davies: To ask the Secretary of State for Justice whether any prisoners serving a sentence for murder are still unlawfully at large following an escape Jeremy Wright: Escapes have been falling for over a or abscond since 1 April 2004. [190098] decade with the current low levels having been sustained for some years now. This is despite considerable increases [Official Report, 10 March 2014, Vol. 577, c. 116W.] in population over the same period. Despite a slight Letter of correction from Jeremy Wright: increase in 2012-13, absconds have been falling for An error has been identified in the written answer nearly two decades. given to the hon. Member for Shipley (Philip Davies) on 10 March 2014. The following table shows the number of absconders still unlawfully at large who have an index offence of The full answer given was as follows: murder. There are currently no prisoners unlawfully at large with an index offence of murder who have escaped Jeremy Wright: Escapes have been falling for over a from prison or prison escort. This information was decade with the current low levels having been sustained correct as of 3 March 2014. for some years now. This is despite considerable increases in population over the same period. Despite a slight Table 1: Number of absconders still unlawfully at large, with index increase in 2012-13, absconds have been falling for offence of murder, by financial year nearly two decades. Financial year Index offence of murder The following table shows the number of absconders 2004-05 0 still unlawfully at large who have an index offence of 2005-06 1 murder. There are currently no prisoners unlawfully at 2006-07 1 large with an index offence of murder who have escaped from prison or prison escort. This information was 2007-08 0 correct as of 3 March 2014. 2008-09 0 2009-10 0 Table 1: Number of absconders still unlawfully at large, with index offence of murder, by financial year 2010-11 0 Financial year Index offence of murder 2011-12 0 2012-13 0 2004-05 0 2005-06 1 Note: These figures have been drawn from live administrative data systems 2006-07 2 which may be amended at any time. Although care is taken when 2007-08 0 processing and analysing the returns, the detail collected is subject to 2008-09 0 the inaccuracies inherent in any large scale recording system. 2009-10 0 2010-11 0 Figures for the number of escapes and absconds since 2011-12 0 1995 are provided in the Prison Digest contained in the 2012-13 0 Prison and Probation Trusts Performance Statistics. Note: This can be found at: These figures have been drawn from live administrative data systems which may be amended at any time. Although care is taken when https://www.gov.uk/government/uploads/system/uploads/ processing and analysing the returns, the detail collected is subject to attachment_data/file/225234/prison-performance-digest-12- the inaccuracies inherent in any large scale recording system. 13.xls

ORAL ANSWERS

Wednesday 19 March 2014

Col. No. Col. No. PRIME MINISTER ...... 770 SCOTLAND—continued Engagements...... 770 Currency Union ...... 766 North Sea Oil Industry ...... 769 SCOTLAND...... 761 Scottish Devolution Model (England) ...... 769 Child Poverty ...... 763 Scottish Independence ...... 765 Crown Estate ...... 761 Zero-hours Contracts...... 762 PETITION

Wednesday 19 March 2014

Col. No. PRESENTED PETITION ...... 5P Freezing of Bank Accounts ...... 5P WRITTEN ANSWERS

Wednesday 19 March 2014

Col. No. Col. No. ATTORNEY-GENERAL ...... 620W EDUCATION...... 625W Amicus Curiae ...... 620W Children: Autism...... 625W Stalking...... 621W Empty Property ...... 626W Primary Education: Academies...... 627W BUSINESS, INNOVATION AND SKILLS ...... 590W Secure Accommodation ...... 627W Consumers: Protection...... 590W Teachers: Training...... 627W Intelligence Services ...... 591W Mass Media: Competition ...... 591W ELECTORAL COMMISSION COMMITTEE ...... 654W Non-domestic Rates: Empty Property...... 591W Elections ...... 654W Offshore Wind Investment Organisation...... 594W Electoral Register...... 654W Postal Services...... 594W Electoral Register: Bridgend ...... 655W Public Sector: Food...... 595W Electoral Register: Gateshead ...... 656W Wind Power: Seas and Oceans ...... 596W Electoral Register: Greater Manchester ...... 658W Electoral Register: Nottingham...... 661W Electoral Register: Oxford...... 662W CABINET OFFICE...... 607W Electoral Register: St Helens...... 662W Employment: Brigg...... 607W Empty Property ...... 607W ENERGY AND CLIMATE CHANGE ...... 609W Lone Parents: Yorkshire and the Humber ...... 608W Environment Protection: Taxation ...... 609W Statistics...... 608W Nuclear Decommissioning Authority...... 609W Sugar ...... 608W Offshore Industry...... 610W Unemployment: Clwyd ...... 609W ENVIRONMENT, FOOD AND RURAL COMMUNITIES AND LOCAL GOVERNMENT.. 600W AFFAIRS...... 598W Homelessness...... 600W Air Pollution: Denton ...... 598W Housing: Newcastle Upon Tyne...... 601W Nature Conservation...... 599W Planning Permission ...... 601W Sewers ...... 599W Planning Permission: Greater Manchester ...... 602W United Utilities Water...... 600W FOREIGN AND COMMONWEALTH OFFICE..... 628W CULTURE, MEDIA AND SPORT ...... 602W Afghanistan ...... 628W Tourism: Floods...... 602W BBC World Service ...... 629W UN Commission on the Status of Women ...... 602W Bosnia and Herzegovina ...... 629W Empty Property ...... 630W DEFENCE...... 649W Middle East ...... 631W Air Force: Assets...... 649W North Korea ...... 631W Armed Forces: Disciplinary Proceedings...... 650W Russia ...... 631W Armed Forces: Inquiries...... 651W Ukraine...... 631W Armed Forces: Museums and Galleries...... 651W United Arab Emirates ...... 633W Army: Northern Ireland...... 652W United Russia ...... 633W D-Day Landings: Anniversaries...... 652W Vietnam ...... 634W Empty Property ...... 653W Marines: Northern Ireland...... 653W HEALTH...... 611W Military Exercises ...... 653W Care Bill (HL)...... 611W Col. No. Col. No. HEALTH—continued NORTHERN IRELAND—continued Cystic Fibrosis ...... 611W Police Service of Northern Ireland...... 624W Electronic Cigarettes ...... 612W Terrorism ...... 625W Information Centre for Health and Social Care ..... 613W National Institute for Health Research ...... 614W SCOTLAND...... 639W Nursing and Midwifery Council ...... 614W Business ...... 640W Scarlet Fever ...... 615W Pay...... 640W Scottish Independence ...... 639W HOME DEPARTMENT...... 603W Unemployment ...... 639W Counter-terrorism ...... 603W Unemployment: Young People...... 640W Crime: Nature Conservation ...... 603W Cybercrime ...... 603W TRANSPORT ...... 616W EU Justice and Home Affairs...... 604W Bus Services: Greater Manchester...... 616W Female Genital Mutilation...... 604W Driver and Vehicle Agency: Northern Ireland...... 615W Human Trafficking ...... 605W Empty Property ...... 615W Immigration: Fees and Charges ...... 605W Heathrow Airport ...... 616W Intelligence Services ...... 606W Large Goods Vehicle Drivers: Sleep Apnoea...... 617W Police: Enfield ...... 606W Large Goods Vehicles ...... 617W Unmanned Air Vehicles ...... 606W Priority Routes...... 617W Public Transport: Tickets ...... 618W INTERNATIONAL DEVELOPMENT...... 634W Railways: Repairs and Maintenance ...... 618W Developing Countries: Gender...... 634W Roads: Accidents ...... 619W UN Commission on the Status of Women ...... 634W Trade Union Officials...... 619W

JUSTICE...... 640W TREASURY ...... 589W Electronic Tagging ...... 640W Banks: EU Action ...... 589W Family Proceedings: Wales...... 640W Credit...... 589W Homicide ...... 641W Financial Markets...... 589W Life Imprisonment ...... 641W Housing: Prices ...... 590W Mediation: Matrimonial Proceedings...... 643W Non-domestic Rates: Manufacturing Industries..... 590W Prisoners: Death ...... 645W Prisoners’ Release ...... 644W WALES...... 610W Prisons ...... 647W Trade Union Officials...... 610W Prisons: Food...... 647W Trident ...... 611W Prisons: Overcrowding ...... 647W Risley Prison...... 648W WORK AND PENSIONS ...... 635W Social Security Benefits: Appeals ...... 648W Carrington Wire...... 635W Squatting ...... 649W Foreign Companies: Pensions ...... 635W Theft: Metals ...... 649W Housing Benefit: Corby ...... 635W Incapacity Benefit ...... 636W NORTHERN IRELAND ...... 623W Jobcentre Plus ...... 636W Corporation Tax ...... 623W Jobseeker’s Allowance...... 636W Electoral Register...... 623W Jobseeker’s Allowance: Disqualification...... 637W Fuels: Tax Evasion...... 623W Poverty: Children ...... 638W National Crime Agency ...... 624W Trade Union Officials...... 638W Older Workers...... 624W Work Programme...... 639W MINISTERIAL CORRECTION

Wednesday 19 March 2014

Col. No. JUSTICE...... 9MC Prisoner Escapes ...... 9MC Members who wish to have the Daily Report of the Debates forwarded to them should give notice at the Vote Office. No proofs of the Daily Reports can be supplied. Corrections which Members suggest for the Bound Volume should be clearly marked in the Daily Report, but not telephoned, and the copy containing the Corrections must be received at the Editor’s Room, House of Commons,

not later than Wednesday 26 March 2014

STRICT ADHERENCE TO THIS ARRANGEMENT GREATLY FACILITATES THE PROMPT PUBLICATION OF THE VOLUMES

Members may obtain excerpts of their Speeches from the Official Report (within one month from the date of publication), on application to the Stationery Office, c/o the Editor of the Official Report, House of Commons, from whom the terms and conditions of reprinting may be ascertained. Application forms are available at the Vote Office.

PRICES AND SUBSCRIPTION RATES DAILY PARTS Single copies: Commons, £5; Lords, £4. Annual subscriptions: Commons, £865; Lords, £600. LORDS VOLUME INDEX obtainable on standing order only. Details available on request. BOUND VOLUMES OF DEBATES are issued periodically during the session. Single copies: Commons, £105; Lords, £60 (£100 for a two-volume edition). Standing orders will be accepted. THE INDEX to each Bound Volumeof House of Commons Debates is published separately at £9·00 and can be supplied to standing order. All prices are inclusive of postage Volume 577 Wednesday No. 139 19 March 2014

CONTENTS

Wednesday 19 March 2014

Oral Answers to Questions [Col. 761] [see index inside back page] Secretary of State for Scotland Prime Minister

Financial Statement [Col. 781] Statement—(Mr George Osborne)

Budget Resolutions and Economic Situation [Col. 795] Debate (First day) Debate adjourned

Health Care (Gloucestershire) [Col. 886] Debate on motion for Adjournment

Westminster Hall Metropolitan Police [Col. 301WH] Illegal Wildlife Trade [Col. 319WH] Child Care (London) [Col. 325WH] Zero-hours Contracts [Col. 347WH] Newspaper Supply Chain [Col. 355WH] Debate on motion for Adjournment

Petition [Col. 5P] Presented Petition

Written Answers to Questions [Col. 589W] [see index inside back page]

Ministerial Correction [Col. 9MC]