Oral Answers to Questions

Wednesday 17th June 2015

(9 years, 6 months ago)

Commons Chamber
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The Secretary of State was asked—
Tom Pursglove Portrait Tom Pursglove (Corby) (Con)
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1. What discussions he has had in Wales on the implications for Wales of a referendum on the UK’s membership of the EU.

Stephen Crabb Portrait The Secretary of State for Wales (Stephen Crabb)
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As this is the first Wales Office business since the election, I would like to take this opportunity to welcome new and returning Members, especially new Welsh Members. I look forward to working with them all over the next five years in the best interests of Wales.

On the EU referendum, I have been listening to what people and businesses across Wales have to say, and what they want is a less intrusive, less costly and less burdensome membership of the EU. We intend to secure that and deliver an in/out referendum by the end of 2017.

Tom Pursglove Portrait Tom Pursglove
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Does my right hon. Friend agree that the spectacular U-turn by the Labour party demonstrates just how out of touch it is with business and local opinion in Wales?

John Bercow Portrait Mr Speaker
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The Secretary of State will focus his reply on the Government’s position. A brief sentence will suffice.

Stephen Crabb Portrait Stephen Crabb
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I completely agree with my hon. Friend. The Labour party fought its entire election campaign by scaremongering about the EU referendum, showing that it was wrong on that issue, as on so many others—wrong in Gower, wrong in Cardiff North and wrong in the Vale of Clwyd.

John Bercow Portrait Mr Speaker
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Order. I was being very generous to the Secretary of State, but he must not abuse my generosity. I was trying to be kindly to a new Member.

Ann Clwyd Portrait Ann Clwyd (Cynon Valley) (Lab)
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I am sure that the Secretary of State will agree that it is important to have an objective assessment of the implications for the people of Wales of pulling out of the EU. Will he therefore commission an objective report on the issues and publish the results?

Stephen Crabb Portrait Stephen Crabb
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The right hon. Lady makes an extremely useful and important point. We want the people of the UK to make an evidence-led decision. It is not for the Wales Office to commission such a report, but I suspect that many other independent organisations will be looking at such evidence, and we look forward to seeing the results.

David Jones Portrait Mr David Jones (Clwyd West) (Con)
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The provisions of the European Union Referendum Bill that relate to the dilution of purdah would apply no less to the Welsh Assembly Government than to Her Majesty’s Government. Will the Secretary of State please undertake to mention that to his right hon. Friend the Minister for Europe so that the people of Wales can expect a fair referendum?

Stephen Crabb Portrait Stephen Crabb
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I have had several discussions with my right hon. Friend the Minister for Europe on issues relating to the EU referendum in Wales, and the important decision that has been taken is to avoid the referendum clashing with the Assembly elections.

Stephen Doughty Portrait Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
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I welcome the Secretary of State and his team back to the House, and I offer the apologies of my hon. Friend the Member for Pontypridd (Owen Smith), who has been detained on urgent personal business.

Given that more than 150,000 jobs in Wales depend on our membership of the EU, can the Secretary of State say whether any members of his ministerial team belong to or support the Conservatives for Britain group? What does he have to say to sceptical Government Members about the benefits of EU membership for Wales?

Stephen Crabb Portrait Stephen Crabb
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I am absolutely clear: I want to approach the EU referendum campaigning for Britain to stay in a reformed EU. We have huge support from people and businesses across Wales for the Prime Minister’s strategy of seeking a less costly and less intrusive membership of the EU, and one of the most useful things we can do in this House is give him our full-throated support in those renegotiations.

Lord Davies of Gower Portrait Byron Davies (Gower) (Con)
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2. What assessment he has made of the effects in Wales of the Government’s long-term economic plan.

Alun Cairns Portrait The Parliamentary Under-Secretary of State for Wales (Alun Cairns)
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The Government’s long-term economic plan is clearly working for the Welsh economy. The UK is the fastest growing nation of the G7, and Wales is the fastest growing part of the UK. Our long-term economic plan has achieved some of the highest levels of employment in our history.

Lord Davies of Gower Portrait Byron Davies
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I thank my hon. Friend for that answer. Having hauled my constituency out of the hands of Labour dominance after 109 years, I wonder whether my hon. Friend agrees that the general election result demonstrated clearly what we knew all along, which is that the Labour party, together with its failing chums in Cardiff Bay, was consistently on the wrong side of the economic argument.

Alun Cairns Portrait Alun Cairns
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My hon. Friend hits the nail on the head. His success in Gower was one of the most remarkable across the United Kingdom. His presence here is testament to the economic success of the Conservative Government. To his credit, he has played a significant part in lobbying the Government on major infrastructure projects that will benefit his constituency, such as electrification of the Great Western main line all the way to Swansea.

Jessica Morden Portrait Jessica Morden (Newport East) (Lab)
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Cutting the Severn bridge toll should be an integral part of any plan for the Welsh economy, because we have the highest tolls in the UK, and they hit bridge users in south Wales particularly hard. Yes, VAT will come off the toll in 2018, but that is not nearly enough. Can the Minister confirm that he will be lobbying the Secretary of State for Transport extremely hard so that we get a much fairer deal for Severn bridge users?

Alun Cairns Portrait Alun Cairns
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The hon. Lady has raised that matter on several occasions. I am sure that she was pleased to hear the Chancellor announce that VAT will no longer apply, but she is right that we need to go further. We are abolishing category 2 so that white vans and pink minibuses will pay the same price as a light vehicle, unlike the way it was left by the Labour party.

Nia Griffith Portrait Nia Griffith (Llanelli) (Lab)
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I very much welcome any rise in employment in Wales, but more than half of all households with children in Wales, many of which include people working in low-income jobs, rely on tax credits to make ends meet. What reassurance can the Minister give to those Welsh families that his Government’s long-term economic plan does not include cutting their child tax credits?

Alun Cairns Portrait Alun Cairns
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The Government’s long-term economic plan is taking people out of poverty and bringing them into work. The hon. Lady should welcome the unemployment data that were announced today, which show that more than 100,000 private sector jobs have been created in the Welsh economy. Unemployment is falling and investment is growing. I hope that the hon. Lady will welcome that.

Nia Griffith Portrait Nia Griffith
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Indeed, I did welcome that. Yet again, there were no real answers from the hon. Gentleman; perhaps he is practising to be Prime Minister. Families across Wales who are going out to work and doing their best for their children will be very worried by that answer. If he cannot give full reassurance that his Government will protect tax credits, will he at least speak up and try to stop his fellow Ministers giving a kick in the teeth to working families while passing laws to protect millionaires from tax rises?

Alun Cairns Portrait Alun Cairns
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I am surprised that the Labour party is still pursuing the wrong priorities. It is on the wrong side of public opinion. The public rightly demand that we reform welfare and incentivise people to work. That policy worked over the past five years and I hope that she will welcome its continuation over the next five years.

Susan Elan Jones Portrait Susan Elan Jones (Clwyd South) (Lab)
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3. What recent discussions he has had with the Chancellor of the Exchequer on the level of funding received by the Welsh Government.

Carolyn Harris Portrait Carolyn Harris (Swansea East) (Lab)
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5. What recent discussions he has had with the Chancellor of the Exchequer on the level of funding received by the Welsh Government.

Gerald Jones Portrait Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)
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11. What recent discussions he has had with the Chancellor of the Exchequer on the level of funding received by the Welsh Government.

Stephen Crabb Portrait The Secretary of State for Wales (Stephen Crabb)
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I have regular discussions with the Chancellor of the Exchequer, Treasury Ministers, the First Minister and the Welsh Finance Minister on the level of funding received by the Welsh Government.

Susan Elan Jones Portrait Susan Elan Jones
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The Secretary of State may be aware that my constituency had the terrible news yesterday that Dobson & Crowther in Llangollen had gone into administration. Will he assure me that he will work with the Welsh Government on that? Does he agree that the £50 million of in-year cuts to the Welsh Government’s budget that the Chancellor has brought in are a very bad thing and that we cannot have the same thing again, because we need to be working together for the people of Wales?

Stephen Crabb Portrait Stephen Crabb
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We are aware of the situation in the hon. Lady’s constituency. We stay in close touch with Jobcentre Plus and the Welsh Government to find ways to support those who face uncertainty over their jobs. We have just been through an election campaign in which responsibility over finances was at the heart of the debate. The fact that she is standing here today, saying that the Welsh Government should somehow be immune from shouldering any of the responsibility for getting on top of our national finances, shows that she has learned nothing from the past five years.

Carolyn Harris Portrait Carolyn Harris
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Wales did not benefit from Barnett consequentials from the Olympics. Will the Secretary of State tell the House whether south Wales will benefit from HS2? If it will not, will there be a Barnett consequential?

Stephen Crabb Portrait Stephen Crabb
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I welcome the hon. Lady to the House. HS2 is a strategic project that will benefit the whole United Kingdom. It will benefit Wales, not least through the new hub station at Crewe, which will increase the potential for electrification in north Wales. On that basis, there is no argument for a Barnett consequential.

Gerald Jones Portrait Gerald Jones
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Does the Government’s failure to eliminate the deficit in the last Parliament not mean that Wales faces further significant cuts, which will be deeper than those we have had so far? Why should the people of Merthyr Tydfil and Rhymney pay for the Chancellor’s broken promises?

Stephen Crabb Portrait Stephen Crabb
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The hon. Gentleman risks repeating the mistakes that his colleagues made throughout the five years of the last Parliament, when they set their face against responsibility and failed to support any of the measures that we took to get on top of the national deficit. Something that they might want to learn as they review their election defeat is that people up and down the United Kingdom support financial responsibility.

Glyn Davies Portrait Glyn Davies (Montgomeryshire) (Con)
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12. Does the Secretary of State agree that the Welsh Government should be held more financially accountable to the Welsh taxpayer for the money they spend? Will he consider including in the anticipated Wales Bill the devolution of income tax without the unnecessary block of a referendum?

Stephen Crabb Portrait Stephen Crabb
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I absolutely agree with my hon. Friend about the need for the Welsh Government to assume greater responsibility for raising money, as well as just spending it. I hear his argument about the referendum, and other people are making similar arguments. However, if the Welsh Government are not up for the challenge of greater financial responsibility, any discussion about whether there should be a referendum is academic.

Seema Kennedy Portrait Seema Kennedy (South Ribble) (Con)
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If money is so tight, how have the Welsh Government found millions of pounds to spend on refurbishing their offices and expanding the ministerial car fleet?

Stephen Crabb Portrait Stephen Crabb
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I thank my hon. Friend for that question. There are many mysteries about the way in which the Welsh Government operate their finances—we could point to others. The important thing to remember is that at the general election the people of this country gave a strong mandate to this Government to get on top of our deficit and fix our national finances. It is beholden on every Department, where taxpayers’ money is spent, to play its part.

Mark Williams Portrait Mr Mark Williams (Ceredigion) (LD)
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The historic underfunding of Wales is not in doubt. Has the Secretary of State given any further attention to commissioning an urgent report, by someone such as Gerald Holtham, into the precise figure of that underfunding, so that we can act accordingly?

Stephen Crabb Portrait Stephen Crabb
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I thank the hon. Gentleman for that question. One of my first conversations after being reappointed as Secretary of State was to meet Gerry Holtham to talk about his analysis of Welsh funding. He agrees with me that we do not need to commission any independent new evidence. The work has been done and we need to crack on with introducing the fair funding floor. We are committed to doing that.

Liz Saville Roberts Portrait Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
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Both Labour and Conservative parties have cynically sought to redefine what constitutes fair funding for Wales, with both parties seeing it as a funding floor rather than putting us on an equal footing with Scotland. Will the Government join the people of Wales, 78% of whom believe that Wales should be funded to the same level per head as Scotland?

Stephen Crabb Portrait Stephen Crabb
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Plaid Cymru had one single theme and policy during the general election campaign: funding and seeking parity with Scotland. [Interruption.] A voice behind her asks what about the north-east of England. The trouble with seeking parity with Scotland is that one would have to start dividing up the whole pie. The important thing is that we are delivering on a fair funding floor for Wales that will correct the way the Barnett formula operates for Wales, and she should be supporting that.

Justin Madders Portrait Justin Madders (Ellesmere Port and Neston) (Lab)
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4. How the views of English rail passengers will be taken into account after the transfer of responsibility for the Borderlands Line rail franchise to the Welsh Government.

Alun Cairns Portrait The Parliamentary Under-Secretary of State for Wales (Alun Cairns)
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I have met the Under-Secretary of State for Transport to discuss aspirations to upgrade north Wales’ rail infrastructure. On the franchise, the Wales Office is working closely with the Department for Transport and the Welsh Government to agree which services will be devolved. Specific proposals will be consulted on in due course and I hope the hon. Gentleman will play his part.

Justin Madders Portrait Justin Madders
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I thank the Minister for that answer. He has highlighted the difficulties in implementing some of the practicalities of devolution. Will he meet me and interested bodies from both sides of the border to discuss the practicalities, and how my constituents can be best represented during this process?

Alun Cairns Portrait Alun Cairns
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I am grateful to the hon. Gentleman for that question; he makes an important point. Rail passengers just want smooth services on both sides of the border. Administrative boundaries should be there to support rather than to hinder. I look forward to the hon. Gentleman’s involvement in any discussions.

Jo Stevens Portrait Jo Stevens (Cardiff Central) (Lab)
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Many Welsh passengers use railway lines, such as the Great Western line, that are under the control of the UK Government. They are concerned about suggestions that the Government are going to break up and privatise parts of Network Rail. Will the Minister rule that out?

Alun Cairns Portrait Alun Cairns
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That is, of course, a matter for the Department for Transport, but I will take no lessons from the Labour party on electrification. When the Labour party was in government it left Wales languishing with Moldova and Albania as one of only three nations in Europe without a single track of electrified railway. Some £1.5 billion has been invested in the electrification of the main line right the way through to Swansea. I would hope that the hon. Lady welcomed that.

Albert Owen Portrait Albert Owen (Ynys Môn) (Lab)
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The new franchise offers a golden opportunity for extra routes connecting north Wales with England and the Republic of Ireland. Does the Minister agree that it is important that we look at the new European structural funds, so that we can have trans-European networks going from Dublin to London, via north Wales?

Alun Cairns Portrait Alun Cairns
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The hon. Gentleman makes a constructive point. There is a need to develop a project board in north Wales that brings in the Welsh Government, potential European funding and Department for Transport support to develop the best possible, strongest case.

Jonathan Edwards Portrait Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
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6. What plans he has for the future of air police services in the Dyfed Powys area; and if he will make a statement.

Alun Cairns Portrait The Parliamentary Under-Secretary of State for Wales (Alun Cairns)
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The National Police Air Service plays an important role in keeping the people of England and Wales safe. Operational capability decisions regarding the provision of police air support remain the responsibility of the strategic board.

Jonathan Edwards Portrait Jonathan Edwards
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Maps produced by NPAS show that about half of the Dyfed Powys police force area will fall within 30 minutes’ flying time from a helicopter base, despite NPAS wanting to reach 90% of the population of Wales and England within 20 minutes. Is the Minister content with this extension of response times and with the fact that parts of Dyfed Powys will still not be reachable even within the extended 30-minute timescale?

Alun Cairns Portrait Alun Cairns
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The hon. Gentleman has a strong record in scrutinising such changes—the Westminster Hall debate just last week was testimony to that—but I also pay tribute to the police and crime commissioner, who is seeking to improve cover and save money at the same time. Any money saved, of course, will create an opportunity to support more officers on the beat.

Jonathan Edwards Portrait Jonathan Edwards
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Anyone looking at the proposed NPAS division will come to the conclusion that the residents of Dyfed Powys will receive a second-class service compared with the dedicated police helicopter service currently enjoyed. Considering that the commissioner is powerless to act, will the Minister join me in calling on the Home Office to hold an urgent review of the situation in Wales, and Dyfed Powys in particular, as it is doing in the north-east of England?

Alun Cairns Portrait Alun Cairns
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I encourage the hon. Gentleman to meet the police and crime commissioner, who has said he is more than happy to meet him to discuss such issues. There is an opportunity, however, not only to save money but to improve cover. At the moment, the station he talks about operates limited hours, whereas the NPAS proposals would operate 24-hour cover and also provide access to more helicopters and added resilience.

John Bercow Portrait Mr Speaker
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To ask about Dyfed Powys, rather than Lichfield, I call Mr Fabricant.

Michael Fabricant Portrait Michael Fabricant (Lichfield) (Con)
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My hon. Friend will know how rural an area Wales is, and the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) is absolutely right to raise this point, but what consideration has the Minister given to combining the Wales police force covering the hon. Gentleman’s constituency with north Wales police in order to provide a better service?

Alun Cairns Portrait Alun Cairns
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There are no proposals to merge the police forces, but co-operation between them is one way of saving money and operating a much better service. [Interruption.] The reorganisation of the helicopter service under NPAS provides the opportunity for 24-hour cover, which will be much better, as we all know that offenders do not restrict their activities to daylight hours. [Interruption.]

John Bercow Portrait Mr Speaker
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Order. I understand the House is in a state of high excitement and anticipation of Prime Minister’s questions, but I am sure that the people of Wales would expect us to treat their concerns seriously. Let us have a bit of order for Mr Hywel Williams.

Hywel Williams Portrait Hywel Williams (Arfon) (PC)
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7. What discussions he has had on returning control of health policy from the Welsh Government to Westminster.

Hywel Williams Portrait Hywel Williams
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I am grateful for that reply. Will the Secretary of State ignore any siren calls there might be for the repatriation of health policy? Does he agree that this is not a matter of a war with Wales or of Offa’s Dyke being the border between life and death, and will he put the responsibility where it lies—with the Labour Governments who have reorganised health and tolerated the situation in north Wales for far too long?

Stephen Crabb Portrait Stephen Crabb
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I agree with the hon. Gentleman’s point. The Welsh Government have full policy responsibility for health services and all the levers available to them. Full responsibility for the challenges and problems in Welsh health services lies with them.

David T C Davies Portrait David T. C. Davies (Monmouth) (Con)
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Does my right hon. Friend agree that all those looking across the River Severn enviously at the shorter waiting times and better ambulance response times under the Conservative-run NHS in England have an opportunity for change next May, when they can vote for a Conservative Government in the Welsh Assembly?

Stephen Crabb Portrait Stephen Crabb
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As ever, the Chairman of the Welsh Affairs Committee speaks truth and wisdom. It is not healthy for Wales or the Welsh Labour party for the latter always to assume it will be in power in Cardiff Bay. A non-Labour alternative to running the Assembly would do the Welsh health service the world of good.

Chris Evans Portrait Chris Evans (Islwyn) (Lab/Co-op)
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Many constituents receive excellent cancer care from Velindre hospital. Is there not a danger when the NHS is used as a political football of diminishing the great work done in such hospitals by the fantastic professionals in the Welsh NHS?

Stephen Crabb Portrait Stephen Crabb
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I do not know what the hon. Gentleman is referring to, but I know that the former leader of his party said he wanted to “weaponise” the NHS.

Chris Davies Portrait Chris Davies (Brecon and Radnorshire) (Con)
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Does my right hon. Friend share my concern about the fact that the Welsh Government are ignoring calls for the provision of a cancer drugs fund in Wales, thus putting my constituents at a severe disadvantage in comparison with those on the other side of Offa’s Dyke?

Stephen Crabb Portrait Stephen Crabb
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My hon. Friend makes a good point. On doorsteps throughout Wales during the election campaign, people expressed anger and frustration about their inability to gain access to the life-enhancing cancer drugs that are available to patients in England. A petition calling on the Welsh Government to introduce a cancer drugs fund has been signed by 100,000 people in Wales, and I cannot for the life of me understand why the Welsh Government are being so stubborn.

Neil Carmichael Portrait Neil Carmichael (Stroud) (Con)
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8. What steps he is taking to promote engineering as a career in Wales.

Alun Cairns Portrait The Parliamentary Under-Secretary of State for Wales (Alun Cairns)
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Engineers have highly adaptable skills that are valuable across the whole economy. Thanks to the priority that the Government have given to nationally significant infrastructure, there has never been a better time to work or train as an engineer in Wales, or, indeed, throughout the United Kingdom.

Neil Carmichael Portrait Neil Carmichael
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I am delighted to note that Renishaw is developing excellent industrial links with Wales, but does the Minister agree that we need more science, technology, engineering and maths and more STEM pupils in the pipeline, so that we can make a proper effort to generate more careers in engineering?

Alun Cairns Portrait Alun Cairns
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My hon. Friend makes an important point. Renishaw, which is in his constituency, is doing exceptionally well in Wales, including, I should add, in my constituency. It is providing the higher engineering skills and investment that we are seeing across the United Kingdom and beyond.

My hon. Friend makes an important point about STEM subjects. He will welcome the establishment of the STEMNET UK-wide network of volunteer ambassadors to support STEM careers. Additional funding of £6.3 million has been provided to support the network.

Geraint Davies Portrait Geraint Davies (Swansea West) (Lab/Co-op)
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Wales’s output per head amounts to 70% of the United Kingdom average, which explains why we have the lowest wages in Britain yet some of the largest cuts. What is the Minister doing to ensure that we have our fair share of investment in engineering, in order to boost productivity, boost wages, and boost family incomes for once?

Alun Cairns Portrait Alun Cairns
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I am surprised to hear that question from the hon. Gentleman. After all, it was his party that left Wales the poorest part of the United Kingdom. Since then, it has become the fastest-growing part of the United Kingdom, and the UK is the fastest-growing nation in the G7. He ought to welcome that, along with the fact that wages and gross domestic household income are growing faster in Wales than in any other part of the United Kingdom. However, we will further improve both productivity and wealth through significant infrastructure spending.

Ian C. Lucas Portrait Ian C. Lucas (Wrexham) (Lab)
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9. What discussions he has had with the Secretary of State for Transport on cross-border road links between Wales and England.

Alun Cairns Portrait The Parliamentary Under-Secretary of State for Wales (Alun Cairns)
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I met the Department for Transport and Highways England last week to express my concern about the delays to the A483/A55 roadworks at the Posthouse roundabout. The Government have invested £6 million in that complex scheme, which will deliver significant benefits to road users on both sides of the border. I am sure that the hon. Gentleman supports such investment to improve passenger journeys, tackle congestion and clear the way for business investment in the cross-border region.

Ian C. Lucas Portrait Ian C. Lucas
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But the Government told me in February that the work would be completed by April, by the time of the general election. That has not happened, and the Wales Office did nothing before then to get this work done. Will the Minister assure me that it will completed by 28 June?

Alun Cairns Portrait Alun Cairns
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Although the hon. Gentleman called for an improvement in the network for many years, his party did nothing in government to bring that improvement about. It was only when my right hon. Friend the Chancellor of the Exchequer announced the scheme as part of the pinch point programme in 2011 that action was taken to improve the network. We are now working closely with the Department for Transport.

The hon. Gentleman must be the only Member who calls for roadworks and then complains when that construction is under way.

Kerry McCarthy Portrait Kerry McCarthy (Bristol East) (Lab)
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10. What discussions he has had with the leaders of Newport, Cardiff and Bristol councils on the great western cities devolution proposal.

Stephen Crabb Portrait The Secretary of State for Wales (Stephen Crabb)
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Last week I brought together council leaders from across the Cardiff capital region to hear their views on an emerging vision for an ambitious city deal for Cardiff that will create new economic opportunities for the wider area, including the great western cities region.

Kerry McCarthy Portrait Kerry McCarthy
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I thank the Secretary of State for his response, but obviously my concern is Bristol rather than Cardiff. How does he see a cross-border initiative such as this fitting in with the agenda for city regions, combined authorities and everything else that is going on?

Stephen Crabb Portrait Stephen Crabb
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I am clear that my priority is Cardiff and not Bristol, but having a strong Cardiff capital region supported by an ambitious city deal will provide opportunities for both cities. That represents good news for Wales and for the hon. Lady’s constituency.

Craig Williams Portrait Craig Williams (Cardiff North) (Con)
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I know that the Secretary of State shares my excitement about the Cardiff city deal. It has huge potential for Cardiff and it really will deliver for south Wales. Does he share my view that all parties should come together constructively to ensure that Cardiff does not miss out on this opportunity of a generation?

Stephen Crabb Portrait Stephen Crabb
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I agree with my hon. Friend, and I pay tribute to him for the leadership that he has shown in driving forward a Cardiff city deal proposal. I am clear in my mind that a Cardiff city deal will work only with the Welsh Government, the UK Government, local partners and, crucially, the business community all working together.

The Prime Minister was asked—
Heidi Alexander Portrait Heidi Alexander (Lewisham East) (Lab)
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Q1. If he will list his official engagements for Wednesday 17 June.

George Osborne Portrait The First Secretary of State and Chancellor of the Exchequer (Mr George Osborne)
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The Prime Minister is in Italy and I have been asked to reply. This morning I had meetings with ministerial colleagues and others, and in addition to my duties in the House I shall have further such meetings later today.

Heidi Alexander Portrait Heidi Alexander
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Under this Government’s leadership, the construction of social rented homes has fallen to a 20-year low, but since 2010 the amount of housing benefit paid to private landlords has risen by £1.5 billion. Does the Chancellor understand the connection, or would he like to come to my next advice surgery so that my constituents can explain it to him?

George Osborne Portrait Mr Osborne
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Of course we are aware that there is an acute housing shortage in London, which is why we need to build more homes, but I can tell the hon. Lady that we built more council housing in the last five years than was built in the entire 13 years of the last Labour Government. I am very happy to come to Lewisham, where we will talk about the fact that today the claimant count is down by 25% over the year and long-term youth unemployment is down 45% in the last year. The economic plan in Lewisham is working.

Nigel Huddleston Portrait Nigel Huddleston (Mid Worcestershire) (Con)
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Q2. Pensions are a really important issue to my constituents, and the Government have delivered on their side of the bargain by giving savers the freedom to access their pensions. Will the Chancellor do all he can to ensure that the industry lives up to its side of the bargain and delivers on those freedoms?

George Osborne Portrait Mr Osborne
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My hon. Friend is absolutely right. The pension freedoms that we introduced in April are delivering the fundamental Conservative principle that people who have worked hard and saved hard all their lives should be trusted with their own money, and 60,000 people have accessed their pension savings. There are clearly concerns, however, that some companies are not doing their part to make those freedoms available. We are investigating how to remove the barriers, and we are now considering a cap on charges. I am asking the Financial Conduct Authority to investigate. People who have worked hard and saved hard deserve a better deal.

Hilary Benn Portrait Hilary Benn (Leeds Central) (Lab)
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May I begin by congratulating the right hon. Gentleman on his appointment as First Secretary of State?

It was reported this week that Talha Asmal, a 17-year-old from Dewsbury, blew himself up in an ISIL attack that killed 11 people. I am sure the right hon. Gentleman would agree that we need to do everything we can to prevent our young people from travelling to Iraq and Syria, so will he tell the House whether the Government now have an agreement in place with all the airlines to raise alerts when unaccompanied minors travel to known Syrian routes, and whether our police are being notified by the Turkish authorities when British citizens arrive at transit points to Syria?

George Osborne Portrait Mr Osborne
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I thank the right hon. Gentleman for his welcome, and I welcome him to his place. I think his father would have been extremely proud to see him leading for the Labour party today. Speaking for those on this side of the House, we are extremely relieved to see that there is no Benn in the Labour leadership contest but plenty of Bennites.

The right hon. Gentleman raises the very serious situation around ISIL, and I think everyone in this House is shocked that a 17-year-old citizen of our country can become radicalised and, apparently, become a suicide bomber on the other side of the world—of course, we also have had the distressing reports of the families from Bradford. So we are taking a number of steps. First, we want to work with schools, mosques and other community institutions to help prevent the radicalisation—there is a new statutory duty to do that. Secondly, we are working with the airlines, including getting in place those agreements that the right hon. Gentleman talks about and providing training at the borders, to stop people travelling to countries such as Syria and to remove their passports if they attempt to do so. Thirdly—this will be an issue in this Parliament—we also need to make sure that our security and intelligence services have the powers they need to track people who are trying to get back into this country. I look forward to cross-party support on that issue.

Hilary Benn Portrait Hilary Benn
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I am grateful for that reply. I think the House would appreciate an update on the progress of those discussions with the airlines, and I noted that the right hon. Gentleman was not able to respond to the question I asked about the Turkish authorities. This is a very serious matter and we need to know where things have got to.

We know that, for some time, a growing number of young people have been groomed to travel to Syria and Iraq. Last November, the Intelligence and Security Committee criticised the Government for not giving the Prevent programme sufficient priority and concluded that

“counter-radicalisation programmes are not working.”

Why does he think that is?

George Osborne Portrait Mr Osborne
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Frankly, I do not accept all those conclusions, and there has been a disagreement about the Prevent programme. In the past, there was a confusion between the programmes that supported integration and the programmes that tried to prevent radical extremism. As a result, certain organisations that should never have got public money did so under the last Government.

The Prevent programme is doing its work, but we have also passed a very important law in this Parliament that now ensures there is a statutory duty on public authorities such as a schools, universities and the police to develop the Prevent strategy and the counter-radicalisation strategy. Where I think we agree—after all, on an issue such as this let us try to find areas where we agree—is on the need to try to do more in these communities to prevent this radicalisation from taking place in the first place.

Hilary Benn Portrait Hilary Benn
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I assure the right hon. Gentleman that he will, of course, have the full support of Members on the Opposition Benches on measures that are taken to try to deal with this problem. But can he assure us that community-led Prevent programmes are now actually being implemented in places such as Dewsbury and elsewhere, including by providing appropriate training to teachers and other workers in the public sector, as the new public sector duty to which he has just referred comes into force in two weeks’ time?

George Osborne Portrait Mr Osborne
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I can confirm that that training is taking place—indeed, we have provided additional resources. In the spirit of this constructive conversation, may I say that we have an extremism Bill in the Queen’s Speech which goes further in seeking to disrupt groups that are plotting either to commit offences here in this country or to travel abroad and become further radicalised? I hope the Labour party looks seriously at that Bill and offers its support to the Government.

Hilary Benn Portrait Hilary Benn
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It is now clear that right across the middle east and north Africa, the common enemy is ISIL. Does the right hon. Gentleman agree that our strategic objective must be to continue to bring together all of the countries affected, in the region and internationally, to put aside other differences and co-operate to confront ISIL?

George Osborne Portrait Mr Osborne
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I of course completely agree with the right hon. Gentleman on that. Britain plays a leading role in bringing together the various allies that are delivering the impact against ISIL. Indeed, we have had some welcome news of prominent terrorist leaders, not necessarily in ISIL but in other organisations, who have been killed in the past couple of days. If those reports are correct, it is a very welcome step forward in the global fight against terrorism.

The right hon. Gentleman is absolutely right; ultimately, the Iraqi Government and the Syrian people are going to have to find a way to take greater control of their own security. In Iraq, we work with the legitimate Government there. In Syria, we support the moderate Opposition, continuing to support and train them in the tasks that they undertake.

Hilary Benn Portrait Hilary Benn
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Turning now to how we resolve that crisis, which, as the right hon. Gentleman will know, has seen the largest movement of refugees since the end of the second world war, can he tell the House what expectations he has for the new round of talks that UN special envoy Staffan de Mistura is holding in Geneva?

George Osborne Portrait Mr Osborne
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First of all, the right hon. Gentleman is right to talk about the displaced persons, particularly in countries such as Jordan and Turkey, which are bearing an enormous burden. That is why Britain has such a massive aid contribution. Across this House, we can be incredibly proud that the parties in the recent general election stood on a commitment to deliver 0.7% of our national income in development aid. That is not just a humanitarian effort but to make sure that we are able to help in situations such as this. When it comes to burden sharing across the region, of course we want to help, but we must be realistic. We cannot take large numbers of Syrian refugees into our country.

Hilary Benn Portrait Hilary Benn
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Finally, as more and more people gather in Libya to try to cross the Mediterranean, HMS Bulwark is doing an extraordinary job in rescuing frightened people. But we learned yesterday that its deployment is under active review. Having made a grave error last October in withdrawing support from the Mare Nostrum search and rescue operations, will the right hon. Gentleman assure the House that the Government will continue to save the lives of those in peril on that sea?

George Osborne Portrait Mr Osborne
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Of course I can give the right hon. Gentleman the assurance that we will continue to play our full part in the search and rescue operation in the Mediterranean. As I understand it, essential maintenance needs to be carried out on HMS Bulwark, which is clearly an operational issue, but no one should doubt Britain’s determination to play its role in helping with this situation.

May I end on this point? Taking people out of the water and rescuing them is essential—we are a humanitarian nation and we need to deal with those issues—but, in the end, we must break the link that enables someone to get on a boat and then claim asylum in Europe and spend the rest of their lives on the European continent. That is what draws these people. They are aiming for a better life, but circumventing proper immigration controls on the European continent. We should work across Europe to break that link. I look forward to the right hon. Gentleman’s role in helping us do that.

Helen Whately Portrait Helen Whately (Faversham and Mid Kent) (Con)
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Businesses in Kent need capable school leavers and graduates to employ. Will my right hon. Friend explain what the Government are doing to ensure that pupils study the most important academic subjects, such as maths, which employers value?

George Osborne Portrait Mr Osborne
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I completely agree with my hon. Friend. My right hon. Friend the Education Secretary set out really important education reforms yesterday. The introduction of the EBacc, which will increase rigour in our schools, will ensure that children are learning the essential subjects they need to get great jobs. Of course, today—this has not been much talked about yet, but perhaps will be later in this Session—we should reflect on the fact that unemployment is down again in our country, employment is up, and long-term unemployment is down. For the first time, wages are growing faster than since the great recession. That shows that our economic plan is working.

Angus Robertson Portrait Angus Robertson (Moray) (SNP)
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The Iraq war a decade ago and its aftermath have been an unmitigated disaster. The Chilcot inquiry into the causes of that war has now been running for six years at a cost of £10 million. Is it true that the Chilcot report has been delayed until next year?

George Osborne Portrait Mr Osborne
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The Chilcot inquiry is completely independent of Government, and we do not determine when it publishes its conclusions. I agree with the hon. Gentleman that it has been a long time coming, and people are running out of patience, as they want to see that report. I make a broader observation, which is that there was a cross-party alliance between the Scottish nationalists and the Conservative party when we called for that inquiry to be set up earlier than it actually was. If it had been, we would have the conclusions now.

Angus Robertson Portrait Angus Robertson
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It is worth remembering that the Chancellor of the Exchequer and the Prime Minister both voted for the war that we were led into by the then Labour Government. Does the Chancellor feel that he has no moral or political responsibility to get to the bottom of the reasons why we went into this catastrophic war in the first place, and what is he going to do about it?

George Osborne Portrait Mr Osborne
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That responsibility was fulfilled when we voted to create an independent inquiry. We want to see the results of that independent inquiry. Those involved in Chilcot will have heard the view of the House of Commons today, and indeed the public concern, about how long the inquiry is taking, but ultimately it is an independent inquiry. If it was not independent, people would question its motives and the basis on which it had been set up. It is independent, but it should get on with it.

Angela Watkinson Portrait Dame Angela Watkinson (Hornchurch and Upminster) (Con)
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The tunnel boring part of the Crossrail project is now completed. The route will run through my constituency at Harold Wood. Will the Chancellor join me in congratulating everybody who has been involved in this most amazing feat of engineering, of which this country must be truly proud?

George Osborne Portrait Mr Osborne
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My hon. Friend rightly draws attention to one of the great engineering marvels of the world—the fantastic Crossrail tunnel that has been built under one of the oldest capital cities on the planet. [Interruption.] Hon. Members ask, “How much did it cost?” It did cost money, but I tell you what: this Government are investing in the infrastructure to provide the jobs in the future, and if we were not making the savings in the Government budget elsewhere, we would not be able to provide for our children. [Interruption.]

John Bercow Portrait Mr Speaker
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Mr Campbell, it is all that hot curry; it is getting to you. Calm yourself, man! Calm down! A bit of yoga would help.

David Lammy Portrait Mr David Lammy (Tottenham) (Lab)
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Q3. It is both sad and disturbing that the number of reported rapes in Greater London has risen by 68% in the last 10 years. Sexual crime is up by 35% in the last year. Will the Chancellor commit the extra resources to the police to ensure that they catch and jail the perpetrators, and that they continue to support organisations working with women in the most sensitive manner?

George Osborne Portrait Mr Osborne
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Of course we continue to provide that support. Indeed we have, through the operational independence of the Metropolitan police, seen the police focusing more on these heinous crimes. One of the better pieces of news is that there has been increased reporting as well, and women coming forward who have been victims of this horrific crime, but I am always prepared to look at extra requests for resources if there is more we can do to help.

Lord Harrington of Watford Portrait Richard Harrington (Watford) (Con)
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Q4. In my constituency, in Watford, in one year alone in the last Parliament, the number of apprenticeships doubled. They were among more than 2 million apprenticeship starts in the country as a whole, and clearly very beneficial to businesses and young people alike. Would my right hon. Friend confirm that a further growth in apprenticeships is an important priority for this Government?

George Osborne Portrait Mr Osborne
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I can confirm that 3 million apprenticeships is the objective of this Government in this Parliament, building on our success of providing 2 million apprenticeships in the last Parliament. I think the whole House will want to congratulate my hon. Friend on becoming the apprenticeships adviser to the Prime Minister. He has a very important role to play, because there are many great companies who run great apprenticeship programmes, but not enough companies do have apprenticeship programmes. I hope they will receive a knock on the door from my hon. Friend.

Geraint Davies Portrait Geraint Davies (Swansea West) (Lab/Co-op)
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Q5. Will the Chancellor confirm that the waste water from fracking will be properly treated, so that it is safe to drink again?

George Osborne Portrait Mr Osborne
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We will have the proper environmental standards around the exploration of shale gas, but I think for this country to turn its back on one of these great natural resources, which other countries are using, would be to condemn our country to higher energy bills and not as many jobs. Frankly, I do not want to be part of a generation that says, “All the economic activity was happening somewhere else in the world, and was not happening in our country, and was not happening on our continent.” So we should get on with the safe, environmentally protected exploration of our shale gas resources.

David Rutley Portrait David Rutley (Macclesfield) (Con)
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Q6. In recent months, Jodrell Bank successfully secured the future of the globally significant Square Kilometre Array telescope project at its site, and over £12 million in heritage lottery funding to highlight its unique science heritage. Does my right hon. Friend agree that this is further evidence of the importance of science in his compelling vision of a northern powerhouse?

George Osborne Portrait Mr Osborne
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My hon. Friend is right to draw attention to the success that Manchester University and Jodrell Bank have had in securing the international headquarters of the Square Kilometre Array experiment. I visited Jodrell Bank in the middle of the election campaign—I dropped in to congratulate them on the achievement, which was achieved during the purdah period but under instructions issued by the previous Government. It is the world’s largest science experiment. It is an incredible collaboration across nations, and I am extremely proud that its headquarters are in the northern powerhouse.

Caroline Lucas Portrait Caroline Lucas (Brighton, Pavilion) (Green)
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Today sees a mass lobby here in Westminster of people who are demanding urgent action on climate change. Since coal is the most damaging of the fossil fuels, does the Chancellor agree that as well as phasing out coal, we in this House have a responsibility to divest our parliamentary pension fund from fossil fuels, as has been done in Norway very recently?

George Osborne Portrait Mr Osborne
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It is way above my pay grade to interfere with the parliamentary trustees of the pension fund here, and I leave the decisions on investments to them. I agree with the hon. Lady that the lobby of Parliament today is important and the Paris talks at the end of the year are a real opportunity to get a global commitment to binding standards and carbon targets. Britain will play its full part. What we want to achieve is dealing with those greenhouse gas emissions and meeting our international obligations on climate change, but doing so in the cheapest way possible for the consumers of electricity here in Britain.

Johnny Mercer Portrait Johnny Mercer (Plymouth, Moor View) (Con)
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Q7. After years of undeserved neglect my city, Plymouth, is beginning to enjoy some infrastructure investment and realise its brilliant potential. We can see that from today’s jobs figures, which show an unemployment fall of almost half since this Chancellor came in. A most important step in that is our Hitachi trains deal. Will he please clarify where we are today with that?

George Osborne Portrait Mr Osborne
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My hon. Friend is already doing a great job in speaking up for the city of Plymouth, alongside my hon. Friend the Member for Plymouth, Sutton and Devonport (Oliver Colvile), and as a result we have major investments in transport in the south-west, such as the upgrade of the A303 and the new trains on the Great Western line down to the south-west. I can confirm that we are in active discussions to provide those new trains and we hope to have further good news later this summer.

Jess Phillips Portrait Jess Phillips (Birmingham, Yardley) (Lab)
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Q8. According to the Women’s Aid annual survey last year, on one single day there were 132 women aged 18 to 20 living in refuge after being attacked, assaulted and in some cases raped. Will the Chancellor guarantee for me and those women that those living in supported accommodation like refuge will not be included in his Government’s plans to remove housing benefit from those aged 18 to 21, or will he see 132 women who have been abused return to their violent partners every day?

George Osborne Portrait Mr Osborne
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We made it very clear when we set out our proposals on housing benefit that we would protect particularly vulnerable people, such as those that the hon. Lady refers to, and I welcome her to the House.

I would make a broader argument about welfare reform. This country faces a very simple choice. We have 1% of the world’s population and 4% of its GDP, but we undertake 7% of the world’s welfare spending. We can either carry on on a completely unsustainable path or we can continue to reform welfare so that work pays and we give a fair deal to those on welfare and a fail deal to the taxpayers of this country who pay for it.

Lord Tyrie Portrait Mr Andrew Tyrie (Chichester) (Con)
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Does the Chancellor agree that today’s elections to chairmanships of Select Committees are a great success story for Parliament as a whole? [Interruption.] Particularly for me—[Interruption.] I am very grateful for that further gesture of support from the whole House of Commons. Since those elections are a success, and particularly if the Prime Minister is going to miss a few Wednesdays, will my right hon. Friend suggest to the Prime Minister that he appear before the Liaison Committee more than three times a year?

George Osborne Portrait Mr Osborne
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I will certainly pass on the request. My hon. Friend is right to draw attention to the success of these elections, which did not exist before the Conservatives came into office. I am not sure that his own election is the best possible example, as I think he is unelected and unopposed in his own election.

John Bercow Portrait Mr Speaker
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Well, elected unopposed, anyway. I think that is what the right hon. Gentleman meant.

Stephen Doughty Portrait Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
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Q9. I, too, want to add my tribute to CAFOD, Christian Aid and the thousands of others who are outside today making the case for a tough deal on climate change. Will the Chancellor explain what the Government are doing diplomatically to support a tough global deal and to ensure that there is a level field for carbon-efficient companies in the UK, such as Celsa Steel UK in my constituency, so that global emissions are not simply increased by being offshored to places such as China?

George Osborne Portrait Mr Osborne
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That, of course, is why a global deal is so important. We are actively engaged in these negotiations; indeed, the Prime Minister was speaking to the French President about the matter only last week. We are absolutely determined that Britain should play a leading role along with our colleagues in Europe in delivering that binding global target so that individual parts of the world cannot opt out.

Henry Smith Portrait Henry Smith (Crawley) (Con)
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Q10. Employment in Crawley is at a record high level, with companies such as Creative Pod having created extra jobs. Will my right hon. Friend tell us what additional policies the Government can introduce to ensure that small and medium-sized companies can flourish further still?

George Osborne Portrait Mr Osborne
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Small and medium-sized businesses, of which around three quarters of a million have been created in the past five years, are the engine of growth in our economy, and they are one of the reasons why the claimant count in my hon. Friend’s constituency is down by almost two thirds. Even more encouragingly, the long-term youth claimant count is today down by 75%. We will go on doing things such as providing the employment allowance, which helps small businesses to employ more people. Of course, what would be disastrous would be to abandon the economic plan and borrow and spend more, because the worst thing for a small business is economic instability that puts them out of business.

Judith Cummins Portrait Judith Cummins (Bradford South) (Lab)
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The Chancellor will be aware of the appalling incident last Thursday at Dixons Kings Academy in my constituency, where a pupil is accused of stabbing his teacher, Mr Vincent Uzomah. I am sure that the whole House will wish to join me in expressing its shock at this horrifying incident, and in wishing Mr Uzomah a swift and full recovery. Will the Chancellor tell the House what steps he is taking to tackle knife crime in our schools?

George Osborne Portrait Mr Osborne
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The hon. Lady speaks for the whole House in sending our sympathies to Mr Uzomah and to the pupils and staff at the school. Our hearts go out to them. The leadership in the school dealt with the situation incredibly well, and I know my right hon. Friend the Education Secretary has spoken to the headteacher. What we have done is to give teachers powers to search pupils’ bags and the like, but if there is more that we can do as we learn the lessons of this incident, of course we will.

Richard Drax Portrait Richard Drax (South Dorset) (Con)
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Q11. Figures released today show that the number of jobseeker’s allowance claimants in my constituency has dropped over the past five years by nearly 60%. May I thank my right hon. Friend for his recent letter, and may I ask him to agree that further rail investment to Weymouth and Portland will increase jobs and prosperity in my constituency?

George Osborne Portrait Mr Osborne
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My hon. Friend has raised with me the case of the particularly slow rail service to Weymouth and Portland, and we will look into it. We are making a massive commitment to the south-west—a £7 billion programme, which is the biggest ever commitment of infrastructure to the south-west—and I will look to see what we can do to improve the rail service for his constituents so that we properly connect up the south-west.

Tom Brake Portrait Tom Brake (Carshalton and Wallington) (LD)
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The Chancellor will be aware that under the coalition, £219 million was allocated to rebuilding St Helier hospital. Will he restate the commitment to that funding so that we can save St Helier?

George Osborne Portrait Mr Osborne
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We did commit to that hospital project, and provided that it continues to represent value for money, which I am pretty clear that it does, we will go on providing that support. What we have done is to commit to the Simon Stevens plan for the national health service—an additional £8 billion of NHS spending —which we can only do if we have our public finances in better order and we are growing our economy, which is precisely what we are doing.

Amanda Solloway Portrait Amanda Solloway (Derby North) (Con)
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Q12. Since my right hon. Friend became Chancellor, unemployment in Derby has fallen by 64%, and our city recently topped a list of 138 cities, towns and counties as the fastest-growing economy in the UK. This will come as no surprise to the Chancellor, who recently visited my constituency and spoke about the midlands being Britain’s engine for growth. Does he agree that we should do even more to support small business across the midlands to create more jobs and better skills, and boost our economy even further?

George Osborne Portrait Mr Osborne
- Hansard - - - Excerpts

I very much enjoyed visiting the engineering firm Garrandale in my hon. Friend’s constituency a couple of weeks ago. It is an outstanding example of a successful medium-sized business growing in the east midlands and exporting around the world, and we want to see more of that in our country. That is why we have a policy that delivers economic security for our nation in uncertain times, more jobs, more infrastructure, and more support for small businesses—all so that we can back the working people of this country.

Paula Sherriff Portrait Paula Sherriff (Dewsbury) (Lab)
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The right hon. Gentleman referred to Talha Asmal from my constituency, who is alleged to have become the UK’s youngest-ever suicide bomber. Will he agree to convene a meeting between myself and Home Office Ministers to discuss a review of counter-terror policy, particularly with reference to tackling radicalisation?

George Osborne Portrait Mr Osborne
- Hansard - - - Excerpts

Home Office Ministers will be very happy to meet the hon. Lady and her constituents. Of course, we want to work together to try to prevent other tragic cases like this one; and of course, let us not forget the victims of the suicide bomb as well as the suicide bomber. That is going to be a great generational task for us. It is clear that Islamic extremism and the radicalisation of our young people is not going to be something that we solve in space of a week or a month, or even, potentially, in this Parliament. We need to work across party divides. We also need to work with all the different public services to make sure that we prevent these young people from thinking that somehow their life, or their death, is better on the other side of the world.

Alan Mak Portrait Alan Mak (Havant) (Con)
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Q13. Today’s employment figures are good news for my constituency of Havant, where the number of people out of work is down by 895. During the election, the Chancellor set out his plans for the south coast. Will he update the House on what steps he is taking to deliver on those commitments, which will deliver aspiration and growth for my region? [Interruption.]

George Osborne Portrait Mr Osborne
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First, I very much welcome my hon. Friend to the House. Is it not extraordinary that after 32 minutes of this session there has been not a single question from Labour on jobs, and when an hon. Member stands up to talk about the good news in his constituency, he gets shouted down by the Opposition? The truth is that the long-term youth claimant count in his constituency is down by 50%. We are going to go on investing in the south coast. At the general election, Labour wanted to cancel the improvements to the A27; that spoke volumes for its long-term vision for our country. We are going to go on investing in that vital road on the south coast and the other key infrastructure we need—road and rail and broadband—across the south of England.

Jim Dowd Portrait Jim Dowd (Lewisham West and Penge) (Lab)
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Q14. Is the First Secretary aware of the concern among authors that the calculation of public lending rights is being distorted by the increasing number of public libraries being run by volunteers because of the huge cuts in local council spending? Will he ask the Culture Secretary, who is extremely knowledgeable in these matters, to ensure that this is rectified and that writers can reasonably expect the rewards to which they are entitled?

George Osborne Portrait Mr Osborne
- Hansard - - - Excerpts

We have been able to address some of the concerns about lending rights in the past couple of years. I am very happy to look specifically at the issue the hon. Gentleman raises to see if there is more we can do.

Gerald Howarth Portrait Sir Gerald Howarth (Aldershot) (Con)
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Today’s unemployment figures provide further compelling evidence of the strength of the United Kingdom’s economic recovery, thanks in large measure to the long-term economic plan for this country. But given the strength of that recovery, may I lodge an appeal to my right hon. Friend that we now commit to spending 2% of GDP on our defences, both to plug the military capability gaps we have had to sustain and, in these troubled times, to assure our principal ally, the United States of America, that so long as we have a Conservative Government, defence of the realm will be the No. 1 priority of this Government?

George Osborne Portrait Mr Osborne
- Hansard - - - Excerpts

First, I welcome my hon. Friend’s support for the economic plan that is delivering those jobs in Aldershot. Of course, the military and defence industries are an incredibly important employer in his constituency. He is absolutely right that we cannot have strong defence without a strong economy, and he is right to link the two. We are spending 2% of our GDP on defence. We have made a big commitment to the future equipment programme for defence, and we will set out our future plans at the spending review.

Since my hon. Friend raises a military matter, I will, if I may, Mr Speaker, at the end of this session, say that this is the 75th anniversary of the sinking of HMT Lancastria. It was the largest loss of British lives at sea in the history of this maritime nation. Some of the survivors are still alive today, and many of course mourn those who died. It was kept secret at the time for reasons of wartime secrecy. It is appropriate today in this House of Commons to remember all those who died, those who survived and the families who still mourn them.