Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)
1. What recent discussions he has had with the Secretary of State for Business, Innovation and Skills on the future provision of services currently provided by Consumer Focus Scotland.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
The Government carried out a review of the landscape of consumer protection bodies and will publish a consultation early next year with proposals to streamline and transfer the functions of Consumer Focus Scotland to Citizens Advice Scotland.
Cathy Jamieson
I thank the Minister for his answer. I know that he will be aware of the significant work done by Consumer Focus Scotland and indeed of the very worthy work of citizens rights bureaux in Scotland in upholding citizens’ rights. A report published today highlights one trend of serious concern: the number of people approaching citizens advice bureaux regarding employment support allowance has almost doubled in the last 12 months. In the light of the damaging cuts to the welfare budget announced last week and the significant additional pressures it will put on citizens advice bureaux, what discussions have the Minister and Secretary of State had directly with Citizens Advice Scotland regarding the transfer of these functions?
David Mundell
The Scotland Office has been in dialogue with Citizens Advice Scotland—and, indeed, with the Scottish Government—about the services it currently provides and those it will provide if the functions from Consumer Focus Scotland are transferred to it. The hon. Lady makes an important point about the provision of advice, not just about the benefit she mentioned, but about all benefits.
Katy Clark (North Ayrshire and Arran) (Lab)
2. What recent discussions he has had with ministerial colleagues on trends in levels of employment in Ayrshire; and if he will make a statement.
The Secretary of State for Scotland (Michael Moore)
The Government are committed to creating the right conditions in Ayrshire and elsewhere to ensure sustainable economic growth and, with it, employment opportunities.
Katy Clark
I thank the Secretary of State for that answer. Has he had the opportunity to look at the Experian report, which has received some coverage in the press over the last few days? It says that, owing to the high dependence on public sector jobs and the poor performance in other sectors of the economy, North Ayrshire will be the part of Scotland that finds it most difficult to recover from the recession. Will he look at that report, consider what impact the loss of public sector jobs will have in North Ayrshire and meet colleagues who represent the area to discuss what needs to be done to protect the economy?
Michael Moore
I have seen the report and I appreciate the challenges faced in North Ayrshire and elsewhere. Our challenge as a Government is to tackle the deficit we inherited from the previous Labour Government, under whom unemployment was rising significantly. All the measures we have announced in the Budget and the spending review are designed to tackle that, but I would be happy to meet the hon. Lady and other colleagues to discuss the situation.
Ann McKechin (Glasgow North) (Lab)
The Government have repeatedly stated that they always want to make work pay, but in areas such as North Ayrshire, which my hon. Friend the Member for North Ayrshire and Arran (Katy Clark) represents, many families that desperately want to work can find only temporary or part-time jobs. The charity Gingerbread reported this week that one third of all jobcentre vacancies are for jobs offering fewer than 16 hours a week, yet the Secretary of State’s Government propose to remove working tax credits for all families working between 16 and 24 hours a week. How many hard-working families in Scotland will lose their credit because of this change? Will the right hon. Gentleman stand up and urge the Secretary of State for Work and Pensions to abandon this draconian measure?
Michael Moore
I welcome the hon. Lady to her post. She knows the Scotland Office well from her previous position as a Minister. I look forward to working with her on issues where we agree, although we will also have robust exchanges where there is room for disagreement. I am afraid that this issue is one such area. As I said to the hon. Member for North Ayrshire and Arran (Katy Clark) a moment ago, we inherited from the Labour Government the largest deficit in peacetime history—£155,000 million. The measures we announced in the Budget to help reduce corporation tax and the burden of national insurance and now the measures in the comprehensive spending review to invest in energy projects for the future show that we are setting out on our plan to get sustainable employment for the whole of Scotland.
Ann McKechin
I thank the Secretary of State for his initial remarks. I am sure there will be areas where we can work together, but on this issue his answer is certainly disappointing. Yet again his Government admit to taking twice as much from people with families as they do from our banks. His Government now propose a 10% cut in housing benefit entitlement for those on jobseeker’s allowance for more than 12 months—regardless of the fact that they have complied with all the rules and looked for work at every opportunity. Most people regard this as no better than a form of punishment. The Secretary of State missed the vote on the VAT rise; is he going to miss this vote, too, or will he now stand up for decency and fairness?
Michael Moore
What matters is for us to have a welfare system that supports those in need, helps them to get back into work, and, when they get back into work, makes work pay. All too rarely have the existing arrangements met those tests. We are determined to support those in need on an ongoing basis, and to ensure that the system is fair to those who need it and fair to those who pay for it.
David Cairns (Inverclyde) (Lab)
3. What recent discussions he has had with representatives of the broadcasting industry in Scotland on the Government’s plans for local television networks.
Greg Hands (Chelsea and Fulham) (Con)
4. What discussions he has had with the Secretary of State for Culture, Media and Sport on the likely effects in Scotland of the implementation of the Government’s proposals for local television networks.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
Both my right hon. Friend the Secretary of State and I have met broadcasters to discuss a range of issues. We also have regular exchanges on broadcasting with ministerial colleagues.
David Cairns
Given the inevitable adverse implications for the BBC’s programme-making budget of the massive real-terms cut in the licence fee, is it not more important than ever for us to encourage television production from all sources in Scotland? Can the Minister update me on the progress of the plan initiated by the last Government to grant qualifying independent producer status to STV?
David Mundell
I am aware of the hon. Gentleman’s interest and expertise in broadcasting in Scotland. In answer to his question, I can tell him that an announcement will be made shortly.
Greg Hands
Local television is popular, and will make a real difference to communities in Scotland. The Minister will be aware that even the Scottish Government’s own Scottish Broadcasting Commission has concluded that television should remain a reserved matter. Will the Minister undertake to work with his DCMS colleagues to ensure that any framework resulting from the Shott review takes account of Scotland’s specific needs?
David Mundell
I agree with my hon. Friend. It was interesting to note that both the broadcasting commission established by the SNP Government and the Calman commission concluded that broadcasting should remain reserved. Nicholas Shott has visited Scotland, and has met various interested parties in the broadcasting sector there. I am sure that Scotland’s particular needs will be taken into account when his final report is issued later this year.
Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
The television channel BBC Alba manages to be both local and national, but its funds are already parsimonious, and it is able to broadcast for only part of the day. May we have a assurance from the Government that its funding—already cut to the marrow—will be defended, and that the process of putting it on to Freeview, which has been delayed still further, will be sorted out soon?
David Mundell
The hon. Gentleman will be pleased to learn that I shall visit the offices of BBC Alba during a visit to the Western Isles on 5 November. The Freeview issue is clearly one for the BBC Trust, but I understand that it has not yet made a decision.
John Thurso (Caithness, Sutherland and Easter Ross) (LD)
5. What discussions he has had with ministerial colleagues on expenditure on port infrastructure in Scotland for the development of marine renewable energy projects; and if he will make a statement.
The Secretary of State for Scotland (Michael Moore)
I was delighted to visit my hon. Friend’s constituency last month, and to find out more about the plans there for the development of marine renewable energy projects.
Scottish Ministers can direct Ofgem to pay an amount from the Scottish fossil fuel levy account to the Scottish Consolidated Fund, which could be used for such projects. If Scottish Ministers do that, they will benefit from our arrangements for the devolution of at least £250 million for Scotland from the green investment bank.
John Thurso
I am sure that my right hon. Friend is aware of the immense potential of the Nigg yard in Easter Ross. Is he also aware that its current owner, KBR, has declined to use it, and is dragging its feet over selling it? Will he make it clear to KBR that a speedy completion is necessary to return the yard to use and create important jobs?
Michael Moore
When we visited Scrabster and other parts of my hon. Friend’s constituency, I was impressed by the serious efforts that are already being made to develop marine renewable projects in the far north. I recognise my hon. Friend’s concern about the situation at Nigg, and his comments will have been heard by the management team there. It is important for us to secure, across Scotland, as much investment as possible in the new renewables projects. I hope that the Scottish Government will respond positively now that we have ring-fenced money in the green investment bank.
Gordon Banks (Ochil and South Perthshire) (Lab)
What representations has the Secretary of State made on behalf of Scotland for the green investment bank to be located there?
Michael Moore
The hon. Gentleman and others are making a strong case for that, and I am certainly interested in working with colleagues in all parts of the House to make the strongest possible case for it as well.
Mr Alan Reid (Argyll and Bute) (LD)
I am sure that the Secretary of State will be aware of the announcement earlier this week that Danish company Skykon has suspended payments to creditors. Skykon owns a factory in my constituency that makes towers for wind turbines and it was building a new factory. Will he do his best to ensure that that partially completed factory is completed and goes into production, protecting badly needed jobs and producing towers for the wind industry?
Michael Moore
Like my hon. Friend, I regret the announcement that was made. I realise that that will have a huge impact on that community in his constituency. It is important that we get to the bottom of this and understand the reasons behind it, but I hope that, working with the Scottish Government and through any meetings that he and I might have, we will be able to work our way through this.
Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)
I ask the Secretary of State to join me in pressing for the green investment bank to be based in Scotland, to take a bit of initiative and to put some urgency and energy into that matter, because, given the level of expertise and knowledge in Scotland, it is the ideal place for the green investment bank to be based.
Michael Moore
First, I am delighted to have the opportunity to welcome the hon. Gentleman to his new responsibilities. Like the shadow Secretary of State, he knows the Scotland Office very well and I look forward to our encounters across the Dispatch Box and to working together where we can. The decision on the location of the green investment bank has still to be taken. His comments, those of his hon. Friends and those of Members on the Government Benches are strongly made, and I will work with everyone to make the best possible case for Scotland.
John Glen (Salisbury) (Con)
6. what discussions he has had with the Department for Work and Pensions on the implementation in Scotland of proposals to establish a universal credit.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
The Secretary of State and I have been in contact with Ministers from the Department for Work and Pensions about a number of aspects of welfare reform in relation to Scotland.
John Glen
I thank my right hon. Friend to that reply. Many areas of Scotland, notably Glasgow, have suffered from the previous Government’s shameful failure to reform welfare over the past 13 years. Does he agree that, far from fearing the universal credit and the work programme, those areas, particularly Glasgow, will benefit because it will pay to be in work and there will be more help into employment for those who need it?
David Mundell
I do agree with my hon. Friend. Our programme is designed to support those who are in the most need but also to ensure that work always pays.
Mr Brian H. Donohoe (Central Ayrshire) (Lab)
On the question of work, or the lack of it, the Minister will have doubtless seen the national publicity around Irvine, because of the demise of the development corporation, created by a previous Conservative Administration. Does he believe that it is now time to bring back the Irvine development corporation?
David Mundell
The hon. Gentleman is always a strong advocate for interests in his constituency, but he will know that responsibility for that particular one rests with the Scottish Government.
Malcolm Bruce (Gordon) (LD)
The Minister will be aware that the pilot scheme for getting people off incapacity benefit and into work is under way in Aberdeen, and it will be a desirable outcome if people can be freed from benefit. May I share with him the experience of a constituent who came to see me this week? He said that he had just successfully got DLA, incapacity benefit and carer’s allowance, but it required three separate applications and two medical examinations, which involved two separate doctors being sent from Glasgow to carry out the examinations. Is that not an example of how incompetently inefficient the system currently is?
David Mundell
Yes. The right hon. Gentleman is correct to highlight the inefficiencies of the current system, which is why the coalition Government are committed to the reform of the welfare system. It is an issue that I will draw to the attention of the Minister at the Department for Work and Pensions who will visit Scotland tomorrow.
Ian Lucas (Wrexham) (Lab)
7. if he will discuss with the Deputy Prime Minister the merits of enabling UK-resident Scots living outside Scotland to vote in any future referendums on the relationship between the UK Government and the Scottish Executive.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
The Government have no plans for a referendum on the relationship between Scotland and the rest the United Kingdom and, as far as I know, neither do the Scottish Government. The franchise for a referendum is normally provided for in the legislation setting the referendum question and rules.
David Mundell
I am sure that, like me, the hon. Gentleman will do everything he can to campaign to retain Scotland’s place in the United Kingdom, and I see no immediate prospect of any such referendum.
Miss Anne McIntosh (Thirsk and Malton) (Con)
I am an enthusiastic campaigner for British people living abroad obtaining the vote in all elections after they have lived abroad for 25 years. Can my right hon. Friend explain what the Labour Government spent the previous 13 years doing and why they did not implement this policy before the general election?
Mr Speaker
Order. May I suggest that the Minister’s reply should be focused exclusively—and, I hope, briefly—on the policy of the Government rather than on that of the official Opposition?
David Mundell
The Government will have noted my hon. Friend’s representations.
Michael Connarty (Linlithgow and East Falkirk) (Lab)
8. What discussions he has had with the Chancellor of the Exchequer on the implications of the mechanisms for calculating the effects of the comprehensive spending review year on year in Scotland.
The Secretary of State for Scotland (Michael Moore)
The Scottish Government’s budget is calculated using the Barnett formula. The Chancellor has set out a decisive plan to reduce the UK’s unprecedented deficit and restore confidence in the UK economy. For Scotland, the spending review provides a fair deal in tough times.
Michael Connarty
The Secretary of State has not answered the question. I was asking about the year-on-year calculations. Is it not a fact that his Tory puppet-masters offered the Scottish National party Government a deal whereby there is less of a cut in the first year and more of a cut in future years to help the SNP in its efforts to get re-elected as the Scottish Government? Will the Secretary of State talk about the implications year on year for future years, when Scotland will be punished more than it is being this year?
Michael Moore
May I reassure the hon. Gentleman that his fears about political machinations are ill founded? I can confirm, however, that, in response to a request from the Scottish Government, flexibility was given to transfer some of the in-year savings from the current financial year to future years. It is for the Scottish Government to respond to, and make decisions on, such matters, and they are accountable for the spending choices they will make for the next four years.
Angus Robertson (Moray) (SNP)
The UK Government have known for months the social and economic consequences of defence cuts in Scotland, so will the Secretary of State confirm what specific resources were allocated as part of the comprehensive spending review to mitigate the effects of base closures?
Michael Moore
I welcomed the opportunity to meet the hon. Gentleman in Moray last week. I recognise that the decisions taken in the defence review following an overall assessment of Britain’s national security needs have not been good for him and his constituents, and I appreciate that there is a lot of concern about the future. I repeat today what I said in Moray: I am happy to work with the hon. Gentleman to ensure we work through the consequences of this.
Angus Robertson
So, one week after the closure announcement, is the Secretary of State confirming to the House today that no specific resources have been put in place and that the UK Government are providing no support on the ground in places such as Moray?
Michael Moore
I am happy to repeat what I made clear to the hon. Gentleman when we were in Moray: we will work with him, the taskforce and others who are interested in the future of the Moray bases to ensure we resolve things as well as possible. May I also assure the hon. Gentleman, particularly since he has raised this issue separately this week, that no decision has been taken on the future of the Tornadoes at RAF Lossiemouth?
Mr Speaker
Order. As usual at this time, far too many private conversations are taking place in the Chamber. That is very unfair on the hon. Member asking the question and the Minister answering it. Let us have a bit of order, therefore.
Sheila Gilmore (Edinburgh East) (Lab)
9. What recent discussions he has had with the Secretary of State for Business, Innovation and Skills on the implications for cross-border students of the Government’s proposals for higher education funding.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
My right hon. Friend the Secretary of State for Business, Innovation and Skills announced the publication of Lord Browne’s report on higher education and student finance on 12 October 2010. The Government plan to publish a White Paper outlining detailed proposals in the winter.
Sheila Gilmore
There are obviously considerable consequences for Scotland in any proposals to reduce the teaching grant because of the proposals on loans. What discussions have taken place about the possibility of large numbers of English students wishing to study in Scotland, to the detriment of Scottish students?
David Mundell
The hon. Lady raises an important point. Her question is one of those posed by Lord Browne’s report, and it will need to be addressed through debate and consultation. We intend to publish a White Paper in the winter leading, subject to parliamentary time, to a higher education Bill in autumn 2011.
Mark Menzies (Fylde) (Con)
10. What discussions he has had with the Deputy Prime Minister on whether to hold elections to the Scottish Parliament on the same day as the proposed UK general election in 2015.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
The Government have made it clear that they will work with all the devolved Administrations and legislatures to consider the issues raised by the coincidence of elections in 2015.
Mark Menzies
Does the Minister agree that when we get to the 2015 elections the new equal-sized boundaries will ensure a far fairer result than those held under the current set-up?
David Mundell
Yes, I agree with my hon. Friend, and I am sure that he will welcome, as I do, the protection of important constituencies in Scotland such as Orkney and Shetland, and the Western Isles.
Mr Russell Brown (Dumfries and Galloway) (Lab)
I recognise that the Minister has read the Gould report. Is he now saying that he disagrees with its central finding that two ballots on different issues in different systems should not be held on the same date?
David Mundell
I agree with Ron Gould’s submission to the Scottish Affairs Committee, in which he said that although he would prefer the referendum on AV and the Scottish elections to be held on different days, he saw no reason why they should not be held on the same day and did not anticipate that causing the same confusion that arose in 2007.
Alun Cairns (Vale of Glamorgan) (Con)
11. What recent discussions he has had with ministerial colleagues on the relationship between the UK Government and the Scottish Executive under the devolution settlement.
Robert Halfon (Harlow) (Con)
15. What recent discussions he has had with ministerial colleagues on the relationship between the UK Government and the Scottish Executive under the devolution settlement.
The Secretary of State for Scotland (Michael Moore)
I have discussions with ministerial colleagues on a range of issues, including the relationship between the UK Government and the Scottish Government under the devolution settlement. We will introduce a Scotland Bill in the near future, which will implement our proposals for strengthening and deepening the devolution settlement for Scotland.
Alun Cairns
Does the Secretary of State believe that the public in Scotland recognise the need to tackle the budget deficit? If so, will he condemn the Scottish Executive for manufacturing disagreements with the Westminster Government and encourage them to work constructively with the Scotland Office on tackling the budget deficit?
Michael Moore
I certainly agree with my hon. Friend that the settlement for Scotland was better than the Scottish Government anticipated, and it should now be for them to get on with setting out their plans for not only the next year, but the next four years.
Robert Halfon
Does the Secretary of State recognise that residents in my constituency and elsewhere believe that alongside his plans for Scottish devolution, England deserves a fair constitutional settlement, with English votes for English laws?
Michael Moore
The hon. Gentleman’s passionate case has been heard in a very busy Chamber, but I am concentrating on getting on with the continuation of Scottish devolution.
Mr Jim Hood (Lanark and Hamilton East) (Lab)
Will the Secretary of State accept that this would be an excellent subject for discussion in the Scottish Grand Committee? Can he have a word with the Leader of the House, who is sitting two up from him, so that we can immediately initiate the next meeting of that Committee, which has not sat for many a year?
Michael Moore
I pay tribute to the hon. Gentleman for his unhesitating campaigning on this issue, but may I gently point out to him that the imminent publication of the Scotland Bill means that there will be more than a little chance to debate these issues?
Pete Wishart (Perth and North Perthshire) (SNP)
Does the Secretary of State not agree that the relationship between Westminster and the Scottish Government has gone from being one of respect to one of almost total contempt? Why will the UK Government not consult the Scottish Government in advance about very important constitutional issues?
Michael Moore
I am absolutely astounded by the hon. Gentleman’s charge because, unlike the previous Government, we have gone out of our way to work with the Scottish Government to ensure that this takes place. [Interruption.] We cannot get around the fact that there are fundamental disagreements about the way we see the constitutional settlement developing, but I say to him that we have been sharing information and discussing things with his ministerial colleagues in Scotland regularly, and we will continue to do so—I hope that they will engage.
Mr Speaker
Order. There is still far too much noise in the Chamber. I want to hear Mr Frank Doran.
Mr Frank Doran (Aberdeen North) (Lab)
12. When he last had discussions with representatives of the oil and gas industries on the future of that industry in Aberdeen.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
Both my right hon. Friend the Secretary of State and I meet frequently representatives of the oil and gas industry. The UK Government recognise the ongoing needs of the industry and its commitment to the future of the UK continental shelf.
Mr Doran
I am sorry for that, Mr Speaker, but it is what happens when we do not expect to be called.
The Secretary of State will be well aware that the oil and gas industry is a global one and that its European headquarters is in my constituency. He will also be aware of the serious problem of skills shortages, and of the fact that the industry depends on the skilled people it can bring in from other countries and on exporting our knowledge. What is he doing to assist with the removal of the cap, which is seriously damaging the oil and gas industry and other industries in this country?
David Mundell
Oil & Gas UK has submitted replies to both consultations run by the Home Office and the Migration Advisory Committee. The consultation responses are now being considered and early outcomes are expected before the end of December. Lin Homer, the UK Border Agency chief executive, met representatives of the oil and gas sector on 9 September.
Sir Robert Smith (West Aberdeenshire and Kincardine) (LD)
I remind the House of my entry in the Register of Members’ Financial Interests as a shareholder of Shell. May I reinforce to the Minister the concerns in that global industry now that it is so much into the export market? Not only is there the problem of work permits and getting people into this country, but, because of the way we treat people coming to this country, it is more difficult to get skilled people into other countries where we have an export market.
David Mundell
I take the hon. Gentleman’s points on board. He will recognise that the potential of the industry has been recognised again this morning with a statement to the House about the potential award of 144 seaward production licences in the 26th oil and gas licensing round.
Harriett Baldwin (West Worcestershire) (Con)
Q1. If he will list his official engagements for Wednesday 27 October.
The Prime Minister (Mr David Cameron)
I am sure that the whole House will wish to join me in paying tribute to Corporal David Barnsdale from 33 Engineer Regiment (Explosive Ordnance Disposal), who died on 19 October. He was a brave and highly skilled member of our armed forces whose service and sacrifice must not be forgotten. Our thoughts must be with his family, his friends and his colleagues.
This morning I had meetings with ministerial colleagues and others. In addition to my duties in the House, I shall have further such meetings later today.
Harriett Baldwin
May I associate myself with the condolences expressed by my right hon. Friend?
Does the Prime Minister agree that yesterday’s excellent growth numbers show that the private sector is growing and will create the jobs that my constituents need? [Interruption.]
The Prime Minister
My hon. Friend is entirely right. The growth figures yesterday were twice as good as market expectation. Of course, Opposition Members do not like good news, but they should celebrate it when it comes. This was strong growth, largely driven by the private sector, and it was accompanied by the Standard & Poor’s agency saying that we should no longer be in the danger zone for our credit rating, which is welcome news. Opposition Members who are waiting for a double dip have had a bit of double depression, but I am sure that we will get lots of questions about the economy this morning.
Edward Miliband (Doncaster North) (Lab)
May I start by joining the Prime Minister in paying tribute to Corporal David Barnsdale from 33 Engineer Regiment (Explosive Ordnance Disposal)? He died serving his country; we honour his memory and send the deepest of condolences to his family.
There are reports this morning that the Government are reconsidering aspects of their housing benefit reforms. Are they?
The Prime Minister
No, we are bringing forward our plans for housing benefit reform. Let me tell the right hon. Gentleman why we are doing that. Housing benefit for working-age people over the last five years has gone up by 50%. This is a budget that is completely out of control. The proposals we are bringing forward are difficult, but they need to be done, not least because we want to make sure that we protect the schools budget. We want to make sure that we protect the NHS budget. That is why we are taking difficult decisions about welfare and I hope that he will be able to tell us this morning whether he is going to support them.
Edward Miliband
I thank the Prime Minister for that answer. Let me get complete clarity from him. The Secretary of State for Work and Pensions is reported as saying that the Government are “open to suggestions” on the issue of housing benefit. Is the Prime Minister saying that all the aspects of housing benefit reform are fixed and are not going to change?
The Prime Minister
We are going forward with all the proposals that we put in the spending review and in the Budget. I am sure that we would all love some suggestions from the right hon. Gentleman.
Edward Miliband
This is Prime Minister’s questions—the clue is in the title. He is supposed to answer the questions. I have a specific question for him on one aspect of the housing benefit changes. The plan is to cut by 10% the housing benefit—the help with rent—that someone receives after they have been out of work for a year, even as they have been searching for work. Does the Prime Minister think that that is fair?
The Prime Minister
These are difficult changes, but I think that they are right. Everyone on jobseeker’s allowance is expected to work, and everyone knows that there is a problem when people claim jobseeker’s allowance and maximum housing benefit for long periods of time, which creates a serious disincentive to work. That is why we are making this change, and that is why it is right.
The key change that we are looking at is the £20,000 cap on maximum housing benefit claims. Is the right hon. Gentleman really saying—[Interruption.] I am answering the question. I know that Labour Members do not like the answer that we are sticking to our plans, but we are sticking to our plans. The point that everyone in this House must consider is whether we are happy to go on paying housing benefit of £30,000, £40,000 or £50,000. Our constituents are working hard to give benefits to other people to live in homes that they themselves cannot dream of, and I do not think that is fair.
Edward Miliband
The whole House has heard that the Prime Minister has dug himself in on the proposal to cut by 10% the help that people receive with rent after they have been out of work for a year. I ask him, because he will have obviously thought about this, what advice he would give to a family who are seeing 10% of their income from housing benefit being taken away. What advice would he give them, when they are seeing such a large cut in their income, on how they should make ends meet?
The Prime Minister
In the Work programme, we will have the best and biggest programme to help those people back into work. It will not just be the state doing it; we are going to get training companies and voluntary bodies to help those people into work. I know that the right hon. Gentleman likes figures, so let me give him the figures for London. There are 37,390 people who have been on jobseeker’s allowance for more than a year, and those people would be affected by this change—I accept that; it is difficult. Every month, there are 30,000 new vacancies in London, which makes 400,000 vacancies a year. We want to get those people back into work. What does he want to do?
Edward Miliband
The Prime Minister is about to make 500,000 people redundant as a result of the cuts announced by the Chancellor of the Exchequer. It is clear that his policy on housing benefit is a complete shambles. He has talked about London, but in London alone councils are saying that 82,000 people will lose their homes—they are already booking the bed-and-breakfast accommodation. How many people does he think will lose their homes as a result of that policy?
The Prime Minister
If we are prepared to pay—as we are—£20,000 in housing benefit, there is no reason why anyone should be left without a home. The Leader of the Opposition has talked about economic policy and cuts, and we now know from the Labour party’s own memorandum what its cuts would be. This is not the Institute for Fiscal Studies, the Government or the Conservative party; this is a Labour memorandum. It said that the cuts—[Interruption.]
Mr Speaker
Order. I apologise for interrupting the Prime Minister. Members must remain calm—if they are not serene, then they must at any rate be calm at all times. We must hear the Prime Minister.
The Prime Minister
The people responsible for making the mess should be quiet when they are told how it will be cleared up. The Labour memorandum states that the cuts implied by its spending plans would have been £44 billion in 2014-15. Those are the Labour party’s cuts, which we are having to implement. I was always told that if you have got nothing to say, it is better not to say it.
Edward Miliband
We can see the faces on the Liberal Democrat Benches. The hon. Member for Bermondsey and Old Southwark (Simon Hughes) has described that policy as “harsh and draconian”. No wonder he looks glum. Then we have glummer, the Deputy Prime Minister—it is no wonder that he is back on the fags. Is not the truth that the Prime Minister just does not get it? He is out of touch. Other people will pay the price for his cuts. Is it not time that he thought again on housing benefit?
The Prime Minister
We all had the chance to read about it in The Times this morning—the advice to the Leader of the Opposition:
“It’s important to have a cheer line that goes down well in the chamber.”
You have to have something that
“can be clipped easily by the broadcasters”,
and:
“It is important to get to your feet looking as if you are seizing on something new.”
The right hon. Gentleman has a plan for Prime Minister’s questions, but he has no plan for the economy, no plan for the debt and no plan for the mess Labour made—absolutely nothing worth while to say. That is it.
Christopher Pincher (Tamworth) (Con)
Will the Prime Minister join me in congratulating Ocado on creating 2,000 much-needed new jobs on the edge of Tamworth? While he is at it, will he congratulate the chief executive, Tim Steiner, on making it clear that he supports the difficult decisions that the Government are making to fix our finances and promote growth—decisions that the Labour party flunked?
The Prime Minister
My hon. Friend makes a very good point. Business leaders in Britain who are going to create the jobs that will employ thousands of people in our country support what the Government are doing and they want us to follow it through. I am happy to congratulate the person running Ocado, not least because I am one of its customers.
Mr David Blunkett (Sheffield, Brightside and Hillsborough) (Lab)
Q2. The Prime Minister sets great store by devolving decision making to ordinary people. That already exists, of course, with the Welsh Assembly—population 3 million and devolved budget of £14.5 billion —and the Scottish Parliament, with a population of 5 million and, even after the cuts, a budget, through the block grant, of £27.3 billion. Using the formula applied to Wales, the 5.2 million people of Yorkshire would be entitled to a devolved budget of £24 billion. Can he think of one single reason why the people of Yorkshire should not determine their own priorities and, mischievously, one reason why they should not have their own white rose Parliament?
The Prime Minister
I did not know that the right hon. Gentleman, for whom I have considerable respect, was making these arguments all through the past 13 years. This is a revelation. We are saying to councils in Yorkshire and up and down the country, “We’re getting rid of the ring-fences and giving you the power to spend your money in the way that you choose.” We have got rid of the bossy, centralising, interfering approach that I am afraid he was rather part of.
Tessa Munt (Wells) (LD)
Is the Prime Minister aware that more than 420 people died in Somerset last winter from causes related to cold and poor living conditions? Will he join me in supporting a local charity, the Somerset Community Foundation, which has a surviving winter appeal whereby all those who can forgo all or part of their winter fuel payment can donate the money for redistribution to those for whom it is not nearly enough?
The Prime Minister
I will certainly join the hon. Lady in congratulating the charity on the work it does. It sounds absolutely essential. I know that she will welcome, as I did, the decision by the Chancellor in the spending statement that cold weather payments would be put on the higher level permanently, not just before an election.
Mr Eric Illsley (Barnsley Central) (Lab)
Q3. Yorkshire Forward, the Yorkshire regional development agency, owns assets in my constituency in Barnsley that are crucial for a major redevelopment programme in the town centre. Will the Prime Minister look urgently at ensuring that the ownership of those assets is transferred from Yorkshire Forward to the local authority so that the programme can go ahead? Could that transfer be facilitated before the body’s abolition in 2012?
The Prime Minister
The hon. Gentleman makes a good point. The transition from regional development agencies to the new local enterprise partnerships has to be handled carefully, ensuring that such assets are put to good use. So far, the proposals for local enterprise partnerships that are coming in are extremely encouraging and will lead to more of what the right hon. Member for Sheffield, Brightside and Hillsborough (Mr Blunkett) talked about—more control locally rather than in distant regions that people do not identify with.
Mr Andrew Turner (Isle of Wight) (Con)
It is claimed that the EU will need a new treaty to legitimise money going to Greece. What is the Prime Minister’s response?
The Prime Minister
The argument being put forward, particularly by the Germans, is that a new treaty clause is needed to put the eurozone on a stronger footing. Clearly, from our point of view, we are not in the euro and we are not planning to join the euro, so any treaty change would not apply to us—just as, in terms of the new rules on the stability and funding mechanism, we have always had a carve-out from them. We shall be discussing that at the European Council this week.
The greatest priority for Britain should be to fight very hard to get the EU budget under control. It is completely unacceptable, at a time when we are making tough budget decisions here, that we are seeing spending rise consistently in the European Union. I think that is wrong and I shall be doing everything I can to try to sort out the budget for next year, and also to look at the future financing of the European Union, where we want to see strict controls. That should be our priority.
Kate Hoey (Vauxhall) (Lab)
Q4. The Prime Minister must realise that the British public are facing cuts in services and in their livelihoods. They do not want to see a single penny more given to the EU. In fact, they would like to see brought back some of the money that was given away, unfortunately, by our Prime Minister. Will this Prime Minister please ensure that when he goes into battle for our money, he does not—as happens to many leaders when they are involved in that bloated bureaucracy—roll over? Will he promise that if the EU demands that money, we will just say, “Sorry, we’re not paying”?
The Prime Minister
As ever, the hon. Lady talks a good deal of sense. It is worth recalling that since Margaret Thatcher won that rebate at Fontainebleau it has saved Britain £88 billion. That is what tough negotiation achieved. The European Parliament has insisted on a higher budget than the one set by the Council, so the first thing we have to do is to say that is not acceptable, and build a majority on the Council to get the budget down again. It pains me to say this to the hon. Lady, but we would be assisted if Labour MEPs did not keep voting for higher budgets, which is exactly what they did this week.
Andrew Bingham (High Peak) (Con)
Q5. Last year, the Prime Minister saw how High Peak borough council, through a pioneering alliance with Staffordshire Moorlands, had delivered efficiency savings of almost £2.4 million over the past two years. Will he assure the House that he will strive to support councils such as High Peak, which have sought to deliver better value for money and ensure that local people benefit as a result?
The Prime Minister
My hon. Friend makes an extremely good point. My council does exactly the same thing: it shares a chief executive, and soon more of the management team, with a neighbouring council. All councils can look at that. Frankly, it is not just councils—police forces and other organisations can look at shared services to drive down costs, so that we make sure we focus on the front line. Those are some of the reforms we need, to make sure that at a time of tight budgets we keep the good services we want.
Angus Robertson (Moray) (SNP)
In a few weeks’ time, the Prime Minister will decide whether he will close RAF Lossiemouth, in addition to closing RAF Kinloss, which would lead to the biggest loss of jobs in Scotland since the Tories closed manufacturing industry in the 1980s. As a consequence, that would mean that Scotland would have fewer service personnel, fewer military bases, aircraft, vessels and Army battalions and less defence spending than all our independent Scandinavian neighbours of comparable size. Will the Prime Minister explain why he is concentrating defence spending in the south and cutting defence spending disproportionately in Scotland?
The Prime Minister
We are going ahead with the aircraft carriers, which are being built in Scotland. I have to say to the hon. Gentleman that if we had an independent Scotland, he would not be flying planes but flying by the seat of his pants.
Dr Julian Huppert (Cambridge) (LD)
Q6. Can the Prime Minister reassure the House that the Government have no plans to revive Labour’s intercept modernisation programme, whether in name or in function, and that he remains fully committed to the pledge in the coalition agreement to reverse the substantial erosion of civil liberties and to roll back state intrusion?
The Prime Minister
I would argue that we have made good progress on rolling back state intrusion in terms of getting rid of ID cards and in terms of the right to enter a person’s home. We are not considering a central Government database to store all communications information, and we shall be working with the Information Commissioner’s Office on anything we do in that area.
Paul Goggins (Wythenshawe and Sale East) (Lab)
Ending child trust funds will close off a route for children in care to build up a modest nest egg, with which they could start their future life as adults. Will the Prime Minister ask his Treasury colleagues to work with me and others to devise an affordable alternative that will give looked after-children the prospect of an asset they can rely on?
The Prime Minister
I am very happy to ask my colleagues to work with the right hon. Gentleman because we all want to see saving encouraged, but I am afraid that when it came to the child trust fund we had to take a difficult decision, which was that that was £500 million we needed to save. My right hon. Friend the Chancellor and I sat on the Committee considering the Bill that introduced child trust funds, but we have to take some difficult decisions on spending, and that was one of them. Can we look at alternative ways of encouraging saving? Yes, we can. We are happy to work with the right hon. Gentleman.
David Rutley (Macclesfield) (Con)
Q7. I know the Prime Minister is aware that last week’s decision to cancel the Nimrod programme will lead to the early closure of the BAE Systems Woodford site near Macclesfield. Does my right hon. Friend agree that it is now an important priority for the Ministry of Defence to work closely with BAE to ensure that the dedicated and highly skilled staff get the best possible support for both retraining and redeployment?
The Prime Minister
My hon. Friend is entirely right. The MOD should work closely with BAE and with his constituents, who have worked extremely hard over many years to produce that equipment, to make sure there is a strong future. We have had to make difficult decisions in the defence review, and we have made the difficult decision about Nimrod, but in terms of BAE as a whole, we will be spending £17 billion with that company between now and 2015 on a range of projects, including the A400M. But my hon. Friend is right—we should make sure that we help those people to find new jobs.
Luciana Berger (Liverpool, Wavertree) (Lab/ Co-op)
Q8. Video games development is a highly skilled, low-carbon creative industry that provides more than 600 jobs in my constituency and is important for the north-west as a whole. Before the election, all three main parties pledged to introduce a video games tax relief so that we can compete internationally on a level playing field. Why have the Government reneged on that promise?
The Prime Minister
We had to make difficult decisions about tax relief—[Interruption.] Opposition Members groan. Can we think of one thing they will support to get the deficit down? I cannot think of a single thing. We have to take difficult decisions, and I am afraid that that tax relief, which was not particularly successful or well targeted, must go. Those are the difficult decisions that we have to take.
Rehman Chishti (Gillingham and Rainham) (Con)
Q9. Can the Prime Minister confirm that the Government have no plans at all to build an airport in the Thames estuary, or in Medway or Kent?
The Prime Minister
The Department for Transport has no plans for a new airport in the Thames estuary or in any other part of Medway or Kent and, as my hon. Friend knows, we have scrapped the plan to build a third runway at Heathrow.
Siobhain McDonagh (Mitcham and Morden) (Lab)
As a former PR man, does the Prime Minister agree that no matter how much Bell Pottinger tries to spin the Sri Lankan Government, the demands for an international independent war crimes tribunal intensify as more evidence of alleged assassination and civil rights abuses comes out?
The Prime Minister
The hon. Lady makes a fair point. We need to see an independent investigation of what happened. Everyone has read the papers and seen the TV footage, but we need an independent investigation to work out whether what she suggests is right.
Mark Pawsey (Rugby) (Con)
Q10. The development of land without planning permission for use as Gypsy and Traveller sites is of concern to many communities, including the villages of Barnacle and Bulkington in my constituency, where local residents have had to put up with illegal developments on their doorstep, although they are pleased with the proposals of the coalition Government to give additional powers to local authorities to deal with the matter. Will the Prime Minister acknowledge the wish of my constituents to see those powers made available at the earliest opportunity?
The Prime Minister
As my hon. Friend probably knows, we will bring forward the localism Bill. It is important, as I have said before, that everyone obeys the law of the land, including that on planning. That should apply to Gypsies and Travellers as well. In the localism Bill we will make sure that it is worth while for local authorities to go ahead with development—they should see a benefit when houses are built, whereas at present there is so little benefit for local areas in getting businesses in and getting homes built. There should be a benefit where they make available sites for Gypsies and Travellers, but that should not be done on the basis of lawbreaking, which it all too often is at present.
Emma Reynolds (Wolverhampton North East) (Lab)
In July the Education Secretary promised that Wolverhampton’s Building Schools for the Future programme would be unaffected by cuts. Can the Prime Minister confirm that the much needed refurbishment of secondary schools across the city will go ahead as planned, and not suffer devastating cuts of 40%?
The Prime Minister
I am afraid that what happened was that the previous Government set out 50% cuts—[Interruption.] I know the Opposition do not like hearing it. They set out 50% cuts in capital spending, but did not tell us where one penny piece was going to come from. That is what happened. We have had to scrap the unaffordable and badly put forward Building Schools for the Future programme, but in the spending plans for the next four years are £15 billion additional capital for school building, so there are plenty of opportunities for additional school building, and not just secondary schools, but primary schools as well. That is what we will be making available.
Neil Carmichael (Stroud) (Con)
Q11. In my constituency, Stroud college, a further education college, has launched an engineering centre to encourage training and apprenticeships. Does the Prime Minister agree that in the light of the encouraging economic figures, such programmes should be supported by business?
The Prime Minister
My hon. Friend is absolutely right. We are making sure that money goes into FE colleges. That is essential for the skills agenda of the future, and we want to free up those colleges to have more agreements with business. In the past they were over-regulated in respect of the courses they could run and the qualifications they could offer. We want to see much greater collaboration between FE colleges so that we get the skills that we actually need.
Mr Tom Harris (Glasgow South) (Lab)
Until 18 months before the general election, the Prime Minister supported Labour’s spending plans. At what point did he decide to rewrite history?
The Prime Minister
We realised that the spending plans were unaffordable, and we came off them. We went into the last election promising to make spending reductions. It needed to be done, and I remember sitting where the right hon. Member for Doncaster North (Edward Miliband) is, week after week, asking the former Prime Minister, “Aren’t you really saying there are going to be cuts?”, and he said, “No, no cuts. There won’t be any cuts.” Do you remember? It happened week after week. Now we have the evidence from Labour’s own memo. It was planning £44 billion in cuts, and not a word about it to anyone. That is thoroughly dishonest.
Sajid Javid (Bromsgrove) (Con)
Q12. Yesterday, the international credit rating agency Standard & Poor’s said something that would make Opposition Members quite upset. It upgraded our nation’s credit outlook from negative to stable, but will the Prime Minister also heed its warning that that credit rating upgrade would be at risk if, in its own words,
“against our expectations the coalition’s commitment to fiscal consolidation faltered
The Prime Minister
That is an absolutely vital point. It was this Government’s changes that took the British economy out of the danger zone, and since the election we have seen interest rates coming down in Britain, whereas in some other countries they have been going up. Why? Because they have not taken the necessary action to get their budget and their deficit under control. What we are now seeing is businesses throughout the world recognising that this is a great country to invest in, because we are sorting out the mess that we inherited.
Robert Flello (Stoke-on-Trent South) (Lab)
The Prime Minister will be aware that by 7 July the Education Secretary would have already understood the financial situation and the “state of the books”, as the Prime Minister is so keen to keep stating, so why on 7 July, in this House, did the Education Secretary say:
“One announcement that I was able to make on Monday was that Stoke-on-Trent, as a local authority that has reached financial close, will see all the schools under Building Schools for the Future rebuilt”?—[Official Report, 7 July 2010; Vol. 513, c. 490.]
Is there some confusion between the Prime Minister and the Education Secretary?
The Prime Minister
We were left a complete mess in terms of Building Schools for the Future. Here was a programme that took up three years and hundreds of millions of pounds before a single brick was laid. The cost of building those schools was twice what it should have been, so we have scrapped that programme and made available £15 billion for the next four years. That means that school building will be higher under this Government than it was under the Labour Government starting in 1997.
Alun Cairns (Vale of Glamorgan) (Con)
Q13. Figures published this week show that four fifths of economic growth is coming from the private sector. Does the Prime Minister accept that it is wrong to say that public spending is propping up economic development? Does he further recognise that more work needs to be done in supporting the private sector throughout the United Kingdom?
The Prime Minister
This is the news that the Opposition do not want to hear. Four fifths of that growth was coming from the private sector, and that is an encouraging sign that we should celebrate rather than look miserable about.
Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)
The Prime Minister talks of difficult decisions, and last week the Chancellor said that government is about choices. The Opposition agree, but we would have made different choices—
The Prime Minister
I am afraid to say that the choice the Opposition have made is not to make any choices—absolutely none at all. The hon. Lady mentions the importance of taxing the banks, but the point I would make is that we introduced a bank levy—within six months of taking office, that has been sorted out. The Opposition had 13 years. The Leader of the Opposition either sat in the Treasury, as one of the chief economic advisers, or sat in the Government, and they did absolutely nothing to introduce that bank levy. Was he arguing for it across the Cabinet table? We have no idea. It did not happen; we have done it. We are asking the banks to pay a fair amount. What we should be focusing on is getting the revenue out of banks so that they contribute to rebuilding our country after, frankly, the mess it was left in.
Mr Speaker
I call Bob Russell. [Hon. Members: “Hear, hear!”] Order. I want to hear Mr Russell too.
Bob Russell (Colchester) (LD)
Earlier the Prime Minister and the Leader of the Opposition had fun and games over housing benefit cuts. This is not a laughing matter for the thousands of children who could well become homeless. I am confident that this was an unintended consequence because the cost of putting children in bed-and-breakfast accommodation is greater than housing benefit. Will the Prime Minister look at this again, please?
The Prime Minister
I completely agree with the hon. Gentleman; this is an incredibly serious issue. We have a housing benefit bill that is out of control—up 50% over the past five years for working-age adults. The key change that we are suggesting is a cap of £20,000—let me repeat that: £20,000—that a family can get for their rent. The fact is that there will be many people working in Colchester, Doncaster or west Oxfordshire who are paying their taxes and who could not dream of living in a house that cost £20,000 to rent each year. It is an issue of fairness that we tackle this budget, get it under control, and do not ask hard-working people to support benefit levels to get things they simply could not have themselves.