Mr David Amess (Southend West) (Con)
1. What steps Ministers in his Department are taking to promote Scottish business overseas.
The Secretary of State for Scotland (Michael Moore)
The Government have taken a range of actions to promote Scottish businesses overseas, including the appointment of Brian Wilson as a UK business ambassador. I have also held recent discussions with the Canadian Trade Minister and with business leaders in Canada and the USA.
Michael Moore
No Scottish business leader has ever put that point to me, possibly because they recognise the strength of Scotland’s being in the United Kingdom and the fact that there are 162 UK Trade & Investment offices backed up by 270 consulates across the world.
Angus Robertson (Moray) (SNP)
Last year, the Scotch whisky industry was worth more than £4.2 billion; it is one of Scotland’s and the UK’s biggest exporting industries. Can the Secretary of State confirm that the UK Government charge for its promotion internationally? How much do they charge and why?
Michael Moore
I join the hon. Gentleman in welcoming the success of the Scotch whisky industry, which is a huge part of the overall success of Scotland’s food and drink sector and goes alongside other significant economic areas such as financial services, energy and the like, which are so critical to Scotland’s exporting potential. I do not want to put any of that at risk; that is why I think that Scotland’s being part of an international network of embassies, consulates and UKTI offices is the best way forward.
Angus Robertson
Everyone will have noticed that the Secretary of State did not answer the question. I asked him whether he would confirm that the UK Government charge for the promotion of Scotch whisky internationally. Apparently, the Foreign Office does charge—£3,000 a time to Scottish Development International to promote Scotch whisky at international events. That is utterly ridiculous. What is he doing about it and when is it going to stop?
Michael Moore
The hon. Gentleman chooses to ignore the fact that, thanks to the UK Government, we have our network of offices across the whole world, and our embassy network is second to none—certainly when compared with what an independent Scotland would have. Scotch whisky is in a much stronger place as a result of Scotland’s being part of the United Kingdom than it would be if we were independent.
Sir Robert Smith (West Aberdeenshire and Kincardine) (LD)
Does the Secretary of State recognise how important the energy industry in north-east Scotland is to driving export potential for Scotland? We have built a strong home base for skills and technology, honed in the North sea, and that is a base for great export potential to provinces around the world.
Michael Moore
I pay tribute, as I have in the past, to my hon. Friend’s significant work in this area. He is an undoubted champion of the oil and gas sector, not just in north-east Scotland but across the whole UK. He is right to point out the sector’s potential and will be aware that I met the Brazilian ambassador and Brazilian oil and gas interests in Aberdeen a few months ago. I look forward to returning to Brazil to focus on oil and gas issues in the next few weeks.
Jim Sheridan (Paisley and Renfrewshire North) (Lab)
I go back to the question of Scotch whisky, which accounts for 25% of all UK food and drink exports, yet is held back by various tariff barriers around the world—most notably in India, where there is a tariff of 150%. Will the Secretary of State set out what action the Government are taking to help whisky industry export growth in other countries?
Michael Moore
The hon. Gentleman is right to highlight the importance of the whisky sector, not least to large chunks of Scotland; it is not just concentrated around the distilleries. We are working hard with Scotch whisky interests to ensure that we work within Europe to break down the barriers in India and elsewhere. There is a level of support for the Scotch whisky industry that it could not hope to have in an independent Scotland.
Bob Blackman (Harrow East) (Con)
2. What effect cancelling the fuel duty rise planned for January 2013 will have on motorists in Scotland.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
Cancelling the fuel duty rise planned for January will help owners of the 2.7 million motor vehicles in Scotland, saving a typical driver £40 a year and a haulier £1,200 a year.
Bob Blackman
Does my right hon. Friend not agree that cancelling Labour’s planned tax increases on fuel will save the average Scottish motorist more than £600 during the life of the coalition Government?
David Mundell
I agree that the deferral of Labour’s planned duty rise in April this year will mean that fuel will be 13p a litre cheaper than it would have been under a Labour Government.
Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)
I welcome the Government’s listening to our call to stop the rise. However, what discussion has the Minister had with the Scottish Government about what assistance can be given to small independent petrol retailers, particularly in rural areas, to ensure that people living in those areas, and not just those who live in urban areas, are able to take advantage of decent pricing?
David Mundell
The hon. Lady makes an important point. At the end of this month I will meet fuel distributors and MPs from rural areas, and she is very welcome to join that meeting to discuss fuel prices and fuel distribution in rural areas.
Mr Alan Reid (Argyll and Bute) (LD)
I am delighted that the Government have cancelled Labour’s fuel duty escalator and cut fuel duty by 1p on the mainland and 6p on the islands. Will the Minister support the call to lobby the European Union to extend the island fuel duty discount to remote parts of the mainland such as mainland Argyll?
David Mundell
Indeed. My hon. Friend will have noted that in the mid-term review the coalition Government have undertaken to examine the possibility of extending the 5p reduction to areas of the mainland that are similar to island communities.
Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
The cut in fuel duty through the rural fuel derogation has been very welcome in my constituency. I remember asking Labour to do that when in power, and it refused. When will it be extended to Skye, Lochaber, Argyll and Wester Ross—areas through which my constituents pass on the way home and on the way back to the mainland?
David Mundell
As I said in my answer to my hon. Friend the Member for Argyll and Bute (Mr Reid), in the mid-term review the coalition Government have undertaken to examine exactly that possibility.
Robert Halfon (Harlow) (Con)
The Government have done their bit in cutting fuel duty at the pumps. Will my right hon. Friend lobby the oil companies to take on their responsibility in this respect, because when international oil prices fall, prices still remain high at the pumps?
David Mundell
Indeed. I am sure that my hon. Friend welcomes the fact that there is an Office of Fair Trading inquiry into fuel prices, and we very much look forward to seeing the outcome of that in January.
Michael Connarty (Linlithgow and East Falkirk) (Lab)
Has the Minister looked into whether these reductions, or lack of increases, have been passed on to motorists in Scotland? Is he aware that in Kennington road in London one can buy petrol at 129.9p? Besides the fact that there is a 5p differential between the price in London and the price in my constituency, it is now more expensive to buy petrol next to Grangemouth, where petrol is produced for Scotland, than in the Kennington road in London. Is the Minister doing anything to make sure that motorists are not being ripped off by those selling the fuel?
David Mundell
The price of fuel at different petrol stations in different communities has been a matter of long-term concern, and that is why the OFT is conducting an inquiry into it. In my previous answer, I indicated that the results of that inquiry will be available in January, and they will make very interesting reading.
David Mowat (Warrington South) (Con)
3. What discussions he has had with ministerial colleagues and Ministers in the Scottish Government on the continued use of sterling in an independent Scotland.
The Secretary of State for Scotland (Michael Moore)
The United Kingdom Government are undertaking a programme of work to inform the debate ahead of the referendum. This involves looking at a range of issues including the importance of sterling to all parts of the United Kingdom. There have been no discussions with the Scottish Government about the use of sterling by an independent Scotland.
David Mowat
The decision to use sterling after separation means that the Bank of England will be the bank of last resort and the lender of last resort to Scotland. To avoid a repetition of what happened in the eurozone, the UK residual Government must have an oversight role in Scottish spending plans. Has this been sought, and on what time scale will it happen?
Michael Moore
There have been no such discussions. The important point is that sterling has served Scotland and the whole of the UK well for 300 years. We have seen in the eurozone the risk of having a formal monetary union without a fiscal union. A fiscally independent Scotland would create real complications in that regard. All this would have to be negotiated after the referendum vote, and it would take some persuading for people in the rest of the UK to take on the role that the Scottish National party wishes for it.
Stewart Hosie (Dundee East) (SNP)
The Minister knows very well that the Scottish Government intend that Scotland should continue to use sterling after independence, and as sterling is a fully convertible and floating currency there is precisely nothing to stop that. While it makes far more sense to have a formal union, does he not agree that a stability pact based around debt and deficit levels is perfectly sensible but can in no way be portrayed as a foreign currency running Scotland’s economy?
Michael Moore
First, I am sure that the whole House will join me in welcoming the hon. Gentleman back to his place. Although we do not always agree with all his points and arguments, we are absolutely delighted with his contribution. We are glad to see him in good health and wish him all the best.
Should Scotland vote to become independent in the referendum—I do not believe that it will—the use of sterling would be a matter for negotiation. The reason for the Bank of England’s credibility as the lender of last resort at present is that we have a single, central fiscal authority and the UK taxpayer stands behind it. To complicate that would require negotiation with the rest of the UK, which would have to consider its interests. We cannot have a one-sided wish list; we have to recognise that there will be negotiation.
Mr Peter Bone (Wellingborough) (Con)
Is not the hon. Member for Dundee East (Stewart Hosie) and, in fact, the Secretary of State wrong on this? If there were an independent Scotland, I assume that it would want, mistakenly, to apply to join the European Union, so would it not then be required to accept the euro?
Michael Moore
There are many ways in the which the SNP and the hon. Member for Dundee East are completely wrong—I agree with the hon. Member for Wellingborough (Mr Bone) on that. He makes an important point that, amid all the SNP’s turmoil over its position on Europe, it has never set out how it would negotiate the opt-out from the critical central requirement to join the euro.
Jim McGovern (Dundee West) (Lab)
13. Last year, on 5 December, I took part in a Westminster Hall debate in which the Under-Secretary said that he had commissioned a report into why the separatist-led Dundee city council was the worst-performing local authority in Scotland with regard to the Work programme. I have contacted his office several times since, but he has yet to get back to me. On 19 December, he said that I would get a letter with more details, but I have yet to receive it. When will the report be published?
Mr Speaker
I am sure that the hon. Gentleman wanted to inquire about the continued use of sterling in an independent Scotland.
Michael Moore
I am not sure how the Work programme would be affected by a different currency or the currency arrangements after independence, should that be the way we go. My right hon. Friend the Under-Secretary would be delighted to meet the hon. Member for Dundee West (Jim McGovern) as soon as possible to discuss the important issue that he has raised. We will make sure that that happens.
Mr Speaker
It may be that the hon. Member for Dundee West really wanted to come in on question 4 and that he got ahead of himself. I do not know, but it is done and I am sure that he is grateful.
Ann McKechin (Glasgow North) (Lab)
9. How many people in Scotland will be affected by the Government’s plan to limit the uprating of in-work benefits to 1%.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
Yesterday the Department for Work and Pensions published an impact assessment for the Welfare Benefits Up-rating Bill, which states that about 30% of all households will be affected by the measures contained in the Bill.
Gregg McClymont
I thank the Minister for that answer. Even after changes to tax allowances, a single-earner household with children in my constituency will be £534 a year worse off by April 2015. With that priority in mind, does the Minister still believe that the Government should go ahead with their priority of a £2,000 a week tax cut for millionaires?
David Mundell
What I believe is that the Government should continue to work to sort out the mess in the economy that the hon. Gentleman’s Labour Government left behind. The measures announced yesterday will save £5 billion and he and his colleagues have not given any answers as to where they would find such savings if they did not implement those changes.
Ann McKechin
One in five working families in Scotland who rely on tax credits will see a cut in their real income as a result of these changes. Many of them rely on low-paid, temporary and part-time jobs when, in fact, they want permanent, full-time jobs. What steps will the Minister take in 2013 to tackle the scourge of under-employment in Scotland?
David Mundell
The Secretary of State will work with the Scottish Government and stakeholders in Scotland to set up an employability forum, which will look at the two Governments and all interested parties in Scotland working together to ensure that we get more people into full-time employment.
Mrs Eleanor Laing (Epping Forest) (Con)
14. Does the Minister agree that, for better or worse, the Scottish economy is part of the UK economy, and that the economy of our whole country will not improve unless and until we bring public spending under control?
David Mundell
I absolutely agree with my hon. Friend. The benefits issue is an example of where, simply to curry favour with the electorate, the SNP Scottish Government are making promises that they could not possibly keep in an independent Scotland.
Margaret Curran (Glasgow East) (Lab)
Will the Minister tell the House how many members of the armed forces in Scotland will see their incomes cut as a result of last night’s vote?
David Mundell
Last night’s vote was about ensuring that we have a sustainable welfare system. The hon. Lady’s answer on all these issues is more borrowing, more spending and more debt. She cannot say how she would fund the rises in benefit for which she voted.
Margaret Curran
What a disappointing answer. The answer is 4,000 members of the armed forces. There might be a Liberal Democrat leading the Scotland Office, but Scots can see that this Government are just the same old Tories. In 2010, the Department told us that it had
“absolutely no desire to see people losing their jobs or being in worse circumstances than they were in before”.
Will the Minister explain why the Government are failing the test that they set themselves?
David Mundell
What the people of Scotland know is that it is the same old Labour: there is no apology for the mess that it left the economy in and its only proposal is more spending, more borrowing and more debt.
Dr Eilidh Whiteford (Banff and Buchan) (SNP)
It will come as no surprise to the Minister to learn that I opposed the cap on in-work benefits last night because it will hammer thousands of families in Scotland who are trying to bring up children while working hard in low-paid jobs. However, does he share my surprise that some senior MPs, including members of the last Labour Government, who left his Government with an almighty mess in the public finances, did not even turn up to vote last night?
David Mundell
Nothing that SNP Members say or do surprises me. The SNP’s position is totally hypocritical. The Scottish Government are asking nurses and NHS workers to take a 1% pay rise, yet they want benefits to rise by more than that.
Mr Brian H. Donohoe (Central Ayrshire) (Lab)
5. How many people in Scotland have used food banks in the last 12 months.
Lindsay Roy (Glenrothes) (Lab)
12. How many people in Scotland have used food banks in the last six months.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
Jobcentre Plus operates a food bank referral service. However, the Government do not hold information on the number of people seeking assistance from food banks.
Mr Donohoe
We are in 2013 and not 1813, are we not? The need for food banks this year in Scotland is an abominable reflection on society. There is even a food bank in Prestwick, which is one of the most salubrious parts of my constituency. According to the Trussell Trust, 15% of the people who use that food bank are in employment. What an indictment that is of the Government.
David Mundell
Although I share the hon. Gentleman’s concern about the use of food banks and the fact that there are vulnerable people in crisis situations, I do not accept the pretence that food banks have come into existence since this Government came to power. That is simply not true. There were food banks under Labour; it is simply that they were not advertised in jobcentres.
Lindsay Roy
What message does the Minister have for the increasing number of people in my constituency who are being forced to go to food banks to feed their families? What will he do to alleviate that situation?
David Mundell
I acknowledge the hon. Gentleman’s concern because he instigated a useful Westminster Hall debate on this matter. The Government will continue to do all that we can to help and support the vulnerable in his constituency and elsewhere.
Gordon Banks (Ochil and South Perthshire) (Lab)
Two years ago, the Secretary of State said about the Government’s plans that
“the horrible truth is that across the country everyone is going to have to make a contribution”.
The horrible truth of life in Scotland under his Government, however, is that a food bank in my constituency has experienced a father walking a 15-mile round trip for a bag of food to feed his family. Is that an appropriate contribution while the Government give a £2,000 a week tax cut to millionaires?
David Mundell
I have already indicated that the Government are always concerned about those who need to use food banks in any circumstances, but I will not take any lectures from the hon. Gentleman and the Labour party on millionaires when they want to give them child benefit.
Pauline Latham (Mid Derbyshire) (Con)
6. What recent discussions his Department has had on the provision of superfast broadband in Scotland.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
The UK Government have allocated a £100 million investment for rural broadband projects in Scotland. It is the responsibility of the Scottish Government to deliver on that. Scotland Office officials keep in close and regular contact with Broadband Delivery UK and Department for Culture, Media and Sport colleagues overseeing the roll-out of all broadband projects in the UK.
Pauline Latham
In the Minister’s discussions with Scottish Government Ministers, have they told him what progress they are making towards implementing superfast broadband access?
David Mundell
It is clear that people throughout Scotland want broadband access implemented as soon as possible, particularly in rural areas. We will work closely with the Scottish Government to ensure that they deliver on the undertakings that they have given on the £100 million that they have received.
Mr Russell Brown (Dumfries and Galloway) (Lab)
Although I recognise the important role that the Scottish Government play in the provision of broadband in rural areas—[Interruption.] I thought those cheers were for me. The Minister is fully aware that in areas such as his and mine, small and medium-sized enterprises depend upon good connectivity. What is his Department doing to ensure that the Scottish Government are delivering?
David Mundell
I can assure the hon. Gentleman that we will hold the Scottish Government to account for that investment. Although the UK Government have funded investment in the cities—in Edinburgh, Aberdeen and Perth—we want the Scottish Government to deliver for Dumfries and Galloway and equivalent rural areas throughout Scotland. [Interruption.]
Mr Speaker
Order. I appeal for a bit of order. There are now far too many very noisy private conversations taking place. Let us hear Sir Malcolm Bruce.
Sir Malcolm Bruce (Gordon) (LD)
I thank the UK Government for the support they have given to Aberdeen city’s bid under the small cities broadband fund, and for their contribution along with the Scottish Government, the city of Aberdeen and Aberdeenshire to the expansion of broadband. May I urge the Minister to recognise that although we want superfast broadband in the cities, we also need access in rural areas at sufficient speeds to enable businesses to flourish rather than forcing people to migrate to cities?
David Mundell
I can advise the right hon. Gentleman that I have met Aberdeenshire council to discuss exactly that issue. Although superfast broadband is welcome in Aberdeen, we want it rolled out into Aberdeenshire as well.
Ian Paisley (North Antrim) (DUP)
The use of superfast broadband is of course one effective way to promote the identity of our country. Will the Minister welcome to Parliament today the Ulster-Scots Agency? It is promoting the links between Ulster and Scotland, of which the Secretary of State is a wonderful example as a born Ulsterman who is now serving Scotland. Will the Minister use superfast broadband to continue to promote our wonderful culture and shared Ulster and Unionist heritage?
David Mundell
The Secretary of State is a wonderful example of many things, and the answer is yes. [Interruption.]
Mr Speaker
Order. There is now far too much noise. I am sure the House will want to hear Mr Karl MᶜCartney.
The Secretary of State for Scotland (Michael Moore)
Against a difficult economic backdrop, the autumn statement set out a range of measures to protect Scotland’s economy, to help equip Scottish businesses to compete in the global race and deliver growth, and to ensure that businesses and households in Scotland are treated fairly.
Karl MᶜCartney
Would my right hon. Friend confirm that one disastrous consequence of any hypothetical independent Scotland would be a disjointed transport system? Although my Lincoln constituency might benefit from more capacity on the east coast line, does the Minister agree that many people in Scotland would not be happy to see direct rail services on the line from London to Edinburgh and beyond curtailed in any way?
Michael Moore
My hon. Friend makes an important point about the importance of keeping Scotland within the United Kingdom, to the benefit not just of Scotland but of the whole United Kingdom.
Gemma Doyle
The Government said that they would get the deficit down, balance the books fairly and get people back to work. However, the deficit is billions of pounds higher this year than it was last year, one in five working families is having its tax credits slashed, and long-term unemployment is rising faster in Scotland than in the rest of the UK. Is the Secretary of State happy to be part of a Government who are failing all their own tests?
Michael Moore
The deficit has come down by a quarter, and the hon. Lady should acknowledge that the Government are clearing up the mess that Labour left behind. We will take absolutely no lessons from the hon. Lady or her party. We have cut income tax for the lowest earners: they did not. We have restored the earnings link to pensions: they refused to. We have helped millions of Scottish motorists during difficult times: they were planning to do the opposite. We will take no lessons from Labour on how to manage the economy.
Karl MᶜCartney (Lincoln) (Con)
Q1. If he will list his official engagements for Wednesday 9 January.
The Prime Minister (Mr David Cameron)
This morning I had meetings with ministerial colleagues and others, and in addition to my duties in this House I shall have further such meetings later today.
Karl MᶜCartney
May I wish you, Mr Speaker, the Prime Minister and the rest of the House a prosperous, positive and happy new year?
Does my right hon. Friend the Prime Minister agree that if public servants are having a 1% pay rise, it is only fair for those on benefits to be given the same increase?
The Prime Minister
My hon. Friend is entirely right. These are difficult decisions that we have to make, but they should be made in the context of the fact that over the past five years, benefits have gone up by 20% yet average earnings are up by only 10%. I think it is fair and right to have a 1% cap on out-of-work benefits, a 1% cap on tax credits, and a 1% cap on public sector pay. What is inexplicable is the position of the Labour party which supports a 1% public sector pay cap but wants more for welfare claimants. That is not fair or right and it should think again.
Edward Miliband (Doncaster North) (Lab)
Can the Prime Minister tell us why on Monday when he published his mid-term review he failed to publish his audit of coalition broken promises?
The Prime Minister
We will be publishing absolutely every single audit of every single promise—all 399 pledges set out in the mid-term review. Unlike the Labour party, the audit will be full, frank and completely unvarnished and the right hon. Gentleman will see it this afternoon. Let me perhaps remind him of some of those pledges. We said we would cut the deficit and it is down by 25%; we said we would cut immigration and it is down by 25%; we said we would rebalance the economy and there are 1 million private sector jobs. That is a record to be proud of.
Edward Miliband
I am afraid the Prime Minister will have to do better than that. His adviser said that the Government should not publish the secret audit because it had “problematic areas”, would lead to “unfavourable copy”, and identify “broken pledges”—that is a far cry from the rose garden, isn’t it? The Government said they would
“throw open the doors…to enable the public to hold politicians…to account.”
Have another go; it is a simple question. Was it the Prime Minister’s decision not to publish the audit because —and I quote from his adviser—it would “overshadow” favourable coverage? [Interruption.] The Prime Minister should calm down; it is early in the year so calm down. You’ve got difficult times ahead. Was it the Prime Minister’s decision not to publish the audit?
The Prime Minister
It is my decision that it is being published this afternoon. Is that really the best he can do? He has had a week sitting in the Canary Islands with nothing else to think of. He cannot ask about unemployment because it is falling; he cannot ask about business creation because it is rising; he does not want to talk about the deficit because we have got it down; he cannot ask about welfare because he knows he is on the wrong side of the argument.
Edward Miliband
The only people on the wrong side of the argument are the Prime Minister and the Chancellor, who are trying to divide the country.
We have not seen the secret audit, but let us see whether we can get a sneak preview of it. The coalition agreement said:
“We will stop the top-down reorganisations of the NHS”.
I think we can all agree that that promise has been broken, so can the Prime Minister confirm that it is on the list?
The Prime Minister
What will be on the list is the 5,000 more doctors and 6,000 fewer managers in the NHS. The right hon. Gentleman talks about wanting to divide the country. The division is this: two parties came together in the national interest to take the difficult decisions, and one party refuses to apologise for the past and to talk about the deficit, and has no economic policy to speak of. That is the division in British politics today.
Edward Miliband
I have to say that if the Prime Minister cannot even admit that he has broken his promise on the top-down reorganisation of the NHS, I do not have high hopes for this secret audit. Let us talk about another broken promise, this time on women. In his usual, modest way, he said:
“We want to make sexual inequality history.”
That is a big commitment. He added:
“That needs a serious commitment…clear policies”
and clear “leadership”. Will the secret audit therefore acknowledge another broken promise that the tax and benefit changes he is making are hitting women—[Interruption.] The part-time Chancellor should calm down a bit too. Will the Prime Minister admit that the tax and benefit changes he is making are hitting women three times as hard as men?
The Prime Minister
There are more women in work than at any—[Interruption.]
Mr Speaker
Order. There is excessive noise in the Chamber. The questions from the Leader of the Opposition must be heard, and the answers from the Prime Minister must be heard.
The Prime Minister
The Leader of the Opposition will be able to see when the document is published that there are more women in work than at any time in our history; that our pension reforms are helping women; that our public sector pay freeze, which excludes the lowest paid, is helping women; and that we are helping women with extra child care for four, three and two-year-olds. What a contrast between a Government who are prepared to publish every piece of information about every pledge and what has been achieved, and the Labour party, which cannot even apologise for the mess it left this country in.
Edward Miliband
After that answer, it is no wonder the Prime Minister did not take any questions from women journalists at his relaunch press conference.
Let us turn to the Prime Minister’s biggest broken promise of all. The Chancellor hits hard-working people and the most vulnerable with his strivers’ tax, but at the same time, he is giving—this April—a massive tax cut to millionaires. If the Prime Minister’s audit is to be a candid assessment, will it not have to admit that he has broken that symbolic promise that we are all in this together?
The Prime Minister
The right hon. Gentleman knows the facts about the top rate of tax. His move to 50p meant that millionaires paid £7 billion less in taxes than they did previously. The fact is that, under this Government, the top rate of tax will be higher in every year than it was in any year under his Government.
The truth is this. The right hon. Gentleman talks about promises, but let us have a little audit of his promises. He promised us a fully costed deficit reduction programme, but we have had nothing; he promised us proper reforms of welfare, but we have had nothing; and he promised us that he would show how he would have a new policy on tuition fees, but we have had nothing. I have audited all of the Government’s spending programmes and I have identified one where the waste is simply appalling: the £5 million of Short money that goes to the Labour party every year—we get nothing from it.
Edward Miliband
The more the Prime Minister rants and blusters, the less convincing he is. The facts are these: he is cutting the top rate of income tax by an average of £107,000 for everyone earning more than £1 million in Britain at the same time as he is raising taxes on everyone else. What do we know from this week? We know that he is a PR man who cannot even do a relaunch. Halfway through this Parliament, we know that the Government are incompetent, that they break their promises and that the nasty party is back.
The Prime Minister
It is perfectly clear what has happened since the start of this year. It is this Government who are setting out their plans for the future; it is the right hon. Gentleman’s party that is on the wrong side of the argument on welfare, that has nothing to say about the deficit, and has no credible policy on the economy. He has a shadow Chancellor who he will not back, but cannot sack. Nothing has changed in politics and nothing has changed in Labour.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
Q2. Does my right hon. Friend agree that we should be cutting taxes for hard-working people in Basildon and Thurrock, rather than taking money away from them only to then return their own money through tax credits?
The Prime Minister
My hon. Friend is entirely right. Of course, he will know that in April every working family will see a £220 tax cut as we lift the tax threshold yet further—everyone will benefit from that. In our view, what we should be doing is cutting people’s taxes, rather than taking more in taxes and recycling them through the massive tax credits business. That is what we believe on the Government Benches, and that is what will work for working families.
Mr John Spellar (Warley) (Lab)
Q3. Is it not a clear example of how out of touch the Prime Minister is that while the overwhelming majority of the public want to maintain the ban on fox and stag hunting, he actually plans to repeal it? Will he tell us why?
The Prime Minister
As I explained before Christmas, I have never broken the law and the only little red pests I pursue these days are in this House.
Andrew Selous (South West Bedfordshire) (Con)
Does the Prime Minister accept that under this Government—[Interruption.]
Andrew Selous
Does the Prime Minister accept that we have brought in an 11% rise to the child element of tax credits, followed by a 5% rise, and that our recent rises build on them, meaning a cash increase of £470 in the child element of tax credits under this Government?
The Prime Minister
My hon. Friend makes an important point about how we focus help on those most in need. I would also make the point that, because we have lifted the income tax threshold, someone on minimum wage who works full-time will have seen their income tax bill cut in half under this Government. We are on the side of people who want to work hard, get on and provide for their families.
Paul Goggins (Wythenshawe and Sale East) (Lab)
Q4. There are more than 1 million children living in poverty who do not qualify for a free school meal. Several children’s charities are concerned that that number will increase when universal credit is introduced. Will the Prime Minister take this opportunity to allay their fears by giving a clear guarantee that any child who qualifies for a free school meal under the current rules will keep that entitlement when the rules are changed?
The Prime Minister
I will look carefully at what the right hon. Gentleman says about free school meals, but let me just make the point that universal credit will extend help to more people and to more families. It will help those people who are only able to work a few hours a week, and help them with child care as well.
Jason McCartney (Colne Valley) (Con)
Q5. It was good to see the Prime Minister out running over Christmas, and he is now setting the pace on welfare reform. I have been out training for the London marathon to raise funds for my local Forget Me Not children’s hospice. Will my right hon. Friend join me in praising all those who fundraise and volunteer for local hospices, and reaffirm the Government’s support for such schemes as the capital fund for hospices, for which my local Kirkwood hospice is currently applying?
The Prime Minister
First, I wish my hon. Friend every good luck for the London marathon—that is far more than I am capable of, I can assure him. We are continuing to support children’s hospices by carrying on with the £10 million funding. In this financial year, we have provided an additional £720,000. We are also making £60 million of capital funding available to adult and children’s hospices. Crucially, in the coalition agreement, a full audit of which will be published later today, we will be demonstrating how we will fulfil our pledge for a per-patient funding system for palliative care, which will help all children’s hospices as they do such important work for our country.
Lucy Powell (Manchester Central) (Lab/Co-op)
Q6. Will the Prime Minister confirm that single mum Maggie from my constituency, who works all the hours she can in Tesco but does not earn enough to gain from the new tax allowances, will, after his changes to tax credits and universal credit, be a staggering £1,255 a year worse off?
The Prime Minister
The point I would make to the hon. Lady is that everybody is affected by these changes. Everyone on tax credits will be affected by the fact that there is only a 1% increase. Everyone on out-of-work benefits will be affected by the fact that there is only a 1% increase. The question we have to ask ourselves is this: if we are saving £5 billion through these changes, which I believe are fair, how would Labour fill in this £5 billion black hole? What would it take it off? Would it take it off the NHS? Would it take it off the defence budget? It is time we had some answers from the Labour party.
Mike Crockart (Edinburgh West) (LD)
I thank the coalition Government for allocating £10.7 million to Edinburgh’s super-connected city bid. It will revolutionise home and business internet use in parts of my constituency such as Kirkliston and Ratho. Unfortunately, my constituents are immensely frustrated at Edinburgh council’s year-long procurement process. What can the Prime Minister do to help speed up that process?
The Prime Minister
It is vital that everyone has access to broadband and that increasingly we have that overwhelming access to superfast broadband. I suspect that Edinburgh city council has seen some of the same problems that councils up and down the country have seen with getting state-aid clearance. We now have that clearance for broadband in England, but I am happy to look at the situation in Edinburgh. That has been one of the problems holding back this vital programme.
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
Q7. “You shouldn’t have to fill in long forms from the Revenue. You’re working. You need help. We want to help you.” I am sure the Prime Minister recognises his words to families receiving child benefit. How many families could face a fine for not filling out a long tax form?
The Prime Minister
The point about the child benefit change is that 85% of families who receive child benefit will go on getting it. The question we all have to ask is whether it is right for people earning £20,000 or £30,000 to go on giving child benefit to people earning £70,000, £80,000 or £90,000. We do not believe it is right, but apparently the Labour party thinks it is right to give child benefit to millionaires. We do not think that is a good use of money.
Stephen Phillips (Sleaford and North Hykeham) (Con)
Q8. My right hon. Friend the Prime Minister rightly recognises that there needs to be a new relationship between this country and the European Union. He has said—and I agree—that the British people must be offered a “real choice” with regard to our continued membership. I hope that he can confirm to the House today that it is his intention to seek a fresh settlement with the EU and then to seek the consent of the British people to that settlement.
The Prime Minister
I can confirm that that is exactly what I believe this country should do. It is the right thing for Britain, because it is right that we are involved in the single market and are active players in the EU, but there are changes that we would like in our relationship that would be good for Britain and good for Europe, and because of the changes taking place in the eurozone, which is driving a lot of the change in the European Union, there is every opportunity to achieve that settlement and then seek consent for it.
Chris Evans (Islwyn) (Lab/Co-op)
Q9. A colleague of Lord Marland said: “He likes the foreign travel, leading trade delegations, meeting foreign leaders, but wasn’t so keen on the detailed”policy of his new job. Hmm, I wonder if the Prime Minister knows anybody else like that.
The Prime Minister
The hon. Gentleman had all morning to think of that! It is important that we have Ministers in both Houses who are linking up with the fastest-growing countries in the world. That is why our exports to China and India are up 50%. We are connecting Britain with the fastest-growing parts of the world.
Sir Peter Tapsell (Louth and Horncastle) (Con)
Bearing in mind that Bills that might be thought to affect the royal prerogative require the signification of the Queen on Second Reading, will the Prime Minister tell us whether he has yet heard from the palace whether it regards any of the major constitutional changes proposed in the Succession to the Crown Bill as intruding on either the royal prerogative or the coronation oath that Her Majesty took?
The Prime Minister
Throughout the process of bringing forward this proposal, to which of course the Heads of all the Commonwealth—the dominion realms—have also signed up, there has been very thorough contact between No. 10 Downing street and the palace, and all the issues are settled and agreed.
Dr Alan Whitehead (Southampton, Test) (Lab)
Q10. Hundreds of thousands of householders in high flood-risk areas cannot understand why the Government have effectively abandoned efforts to reach agreement with the British insurance industry on future insurance for their homes and fear that they will not be able to insure their homes after June 2013. Why is the Prime Minister fiddling while the country floods?
The Prime Minister
I am happy to put the hon. Gentleman right. The discussions are still under way. They have made very good progress. I am confident that we will reach an agreement. As he said, the current agreement does not run out until June this year. I am regularly updated about how those discussions are going. I know from my own constituency, which has been subject to regular flooding, just how important they are. I would also add that we have put in an extra £120 million in flood defences. I think everyone can now see that the flood defence work that has been done over recent years has made a significant difference when we have had high levels of rainfall and very high water in our rivers and streams.
Charlotte Leslie (Bristol North West) (Con)
Q11. Can the Prime Minister confirm to the House that disability benefits are being uprated as usual and will not be subject to changes?
The Prime Minister
My hon. Friend is entirely right. Disability living allowance, which is the key benefit received by people who are disabled, is not subject to the 1% cap. The 1% cap is for in-work benefits. It is very important that we go on paying disability living allowance in the way that we have been.
Teresa Pearce (Erith and Thamesmead) (Lab)
Q12. Can the Prime Minister confirm that my constituent, who is a nurse as well as a single father to his two children, will lose £400 a year as a result of the Chancellor’s cuts to child benefit and other benefits?
The Prime Minister
The results of the cuts to child benefit are that the best-off 15% of families in this country will no longer receive child benefit at all. That is what is going to happen. That saves around £2 billion a year. Again, Labour has now voted against £83 billion of welfare changes. I am afraid that the Opposition have to start filling in the blanks of where they are going to make up this money. I think it is right that we say to people earning £60,000, £70,000, £80,000 or more, “You shouldn’t be receiving child benefit.” It is not an easy decision, but government is about making decisions; and frankly, opposition is about making some decisions too.
Ian Swales (Redcar) (LD)
Can I recommend that the Prime Minister takes a look at Monday’s excellent Back-Bench debate on corporate tax avoidance? Can I ask what he hopes to achieve on this vital issue at the G8?
The Prime Minister
I will certainly look closely at the debate and read Hansard, because this is not just a vital issue for our country, but one that needs to be settled internationally. That is why I put the issue of corporate tax avoidance at the heart of the G8 this year, and we are also looking very closely at whatever else we can do here in the UK.
Stephen Pound (Ealing North) (Lab)
Q13. Further to the question from my hon. Friend the Member for Hackney South and Shoreditch (Meg Hillier), may I ask the Prime Minister what estimate he has made of the number of families who are still unaware that they are no longer entitled to child benefit, particularly bearing in mind that the bill for the first full year’s charges will come wafting through the nation’s letterboxes in April 1915? [Interruption.] Sorry, 2015.
The Prime Minister
We have written out to 800,000 families. There has been a huge advertising campaign and this has been properly covered right across the media, but I have to say that it is absolutely extraordinary, in a week when Labour is complaining about difficult welfare decisions for people who are in work and people who are out of work, that Labour Members also want to make a priority of opposing taking away child benefit from people earning £100,000 or £150,000. They have really got to start taking some responsible decisions about how we deal with our deficit and get our economy under control.
Nigel Adams (Selby and Ainsty) (Con)
Will the Prime Minister join me in congratulating the business men—the entrepreneurs—and the staff who work at the jobcentre in my constituency, whose efforts over the last two and a half years have ensured that unemployment in Selby and Ainsty is down by a quarter since the last election?
The Prime Minister
I will certainly join my hon. Friend in that. The people in our jobcentres up and down the country do an excellent job helping people to find work and to make sure that they get all the help they need. The fact is that the unemployment rate today is lower than the rate that we inherited at the last election. Over the last year, job creation in Britain was faster than in any other G7 country. We still have a long way to go to rebalance our economy and to get the growth in the private sector that we need, but we are on the right track—1 million new private sector jobs over the last two years, the fastest rate of new business creation for decades. There are good signs that the economy is rebalancing. We need to encourage that by staying on top of our deficit and getting it down, rather than just giving in on every decision, as we have seen today from the Labour party.
Julie Hilling (Bolton West) (Lab)
Q14. According to the Children’s Society, up to 40,000 soldiers, 150,000 teachers and 300,000 nurses will lose out as a result of the Prime Minister’s decision to cut tax credits and other benefits. Why are hard-working people like that paying for his economic failure?
The Prime Minister
The hon. Lady needs to remember why we are having to take these decisions in the first place: it is to deal with the record budget deficit and the mess left by the Labour party. That is the background. The real question about public sector workers—about soldiers, about teachers and about people who work in our public services—is that if they are being restricted to a 1% increase, why on earth does the Labour party think that people on out-of-work benefits should see their incomes go up faster? That is the question that Labour has to answer. We are being fair, because we are restricting the increase on tax credits and restricting the increase on public sector pay, but we are also asking the same of those on out-of-work welfare. What we see as completely unfair is backing the public sector pay increase but wanting welfare to go through the roof. That is completely wrong, it is not fair and Labour must see that it has to change its mind.
Claire Perry (Devizes) (Con)
Q15. Last week, I visited the T. H. White group in Devizes and heard about its healthy order book and its recruitment plans for 2013. Like many British employers, however, it cannot find enough engineers to hire. Britain’s universities lead the world in teaching science and engineering, yet we have an annual shortfall of 60,000 graduates, and nine out of 10 postgraduate students in those subjects are from overseas. What more can we do to plug that critical skills gap?
The Prime Minister
My hon. Friend is entirely right: we have to tackle that problem at every level. That means making sure that we are teaching maths and science and other STEM subjects properly in schools. There are signs that the number of people taking those subjects is increasing. We need to ensure that our universities are properly funded; the tuition fees will make sure that that is the case. We also need to raise the profile of engineering, and that is one of the reasons that we introduced the £1 million Queen Elizabeth prize for engineering. That, combined with the 34 university technical colleges, will help to ensure that we train the engineers we need for the future.
Mr Nigel Dodds (Belfast North) (DUP)
It is more important than ever that we seek to continue to move forward and away from violence in Northern Ireland, and to create stability. I am sure that the Prime Minister will agree that full participation in and support for the political and democratic process by everyone, so that the politicians can address the people’s issues, is absolutely vital. In that context, and in the light of what is happening in Northern Ireland, will the Prime Minister agree to meet us to discuss the forthcoming legislation on Northern Ireland, so that we can consider measures to increase democratic participation by people in deprived communities, look at the deplorable state of the electoral register in Northern Ireland, which is in a bad state, and deal with the discrimination against elected Members of this House from Northern Ireland who play by the rules while others get money without taking their seats? All of that needs to be addressed.
The Prime Minister
I would be happy to meet the right hon. Gentleman. Indeed, I have a meeting with a number of members of his party straight after Prime Minister’s questions to discuss the vital issue of ensuring that the military covenant is properly fulfilled in Northern Ireland. He made a number of points in his question. I would throw back part of the challenge to him and his party, just as I would to others in other parties, in saying that we need to build a shared future in Northern Ireland in which we break down the barriers of segregation that have been in place for many years. That is part of the challenge to take away some of the tensions that we have seen in recent days.
Philip Davies (Shipley) (Con)
Just in case anybody is in any doubt, will the Prime Minister confirm who he is closest to, politically? Is it Lord Tebbit or the Deputy Prime Minister?
The Prime Minister
I managed to get through Christmas without spending any time with either of them. I would remind my hon. Friend that I am closer to all Conservatives than I am to anyone from any other party.
Dame Joan Ruddock (Lewisham, Deptford) (Lab)
Yesterday, the Secretary of State for Health received a report recommending the downgrading of maternity services and the closure of the A and E department at Lewisham hospital. Does the Prime Minister recall the coalition promise to end the forced closures of A and E and maternity services? If this is not to be on the list of broken promises, will he ensure that these closures do not go ahead?
The Prime Minister
What the Government and I specifically promised was that there should be no closures or reorganisations unless they had support from the GP commissioners, unless there was proper public and patient engagement and unless there was an evidence base. Let me be absolutely clear: unlike under the last Government when these closures and changes were imposed in a top-down way, if they do not meet those criteria, they will not happen.
Mr John Baron (Basildon and Billericay) (Con)
The Prime Minister will remember that this House gave the green light to stem cell research some years ago, but we now find that the EU Court of Justice is hindering progress by bringing into question the validity of the patents protecting research. On behalf of the millions of people in this country who suffer from long-term medical conditions, will the Prime Minister do what he can to clear this blockage?
The Prime Minister
My hon. Friend makes an extremely serious point. I will look closely at it, because I think this country has a competitive advantage from our having taken difficult decisions about stem cell research. It is important that we continue to lead in that area—not only, as my hon. Friend says, for economic and scientific reasons, but because we want to make sure that for people with long-term and debilitating conditions, for children with disabilities and other concerns, we crack those problems for the future. Without that level of research, I do not believe that we shall. I will look very carefully at what my hon. Friend has said and I will write to him with an answer.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
Is the Prime Minister proud of the growth of food banks across this country, including in my constituency? Has he visited one, and if not, will he do so?
The Prime Minister
I am proud of the fact that 1 million more people are in work in this country than there were when this Government came to office, that we have made sure that the lowest paid are not paying income tax and that we have protected the poorest families. I am proud of all those things. Unlike the hon. Gentleman, I do not look down at, or talk down to, people who work hard in our communities to help people.