Oral Answers to Questions

Danny Alexander Excerpts

Tuesday 10th December 2013 Commons Chamber

[Mr Charles Kennedy (Ross, Skye and Lochaber) (LD)]

2. What progress he has made in extending the rural fuel rebate pilot scheme; and if he will make a statement.

[The Chief Secretary to the Treasury (Danny Alexander)]

I have been asked to reply on behalf of my right hon. Friend the Chancellor who is at ECOFIN in Brussels.

On 8 November, the Government launched a supplementary call for information that gave fuel retailers in remote areas a further opportunity to submit information to the Treasury as part of our plan to extend the fuel discount to mainland rural areas. That call for information closed on Friday, although we extended the deadline until yesterday for areas affected by the recent severe weather. We received information from a further 42 filling stations. We are analysing the data at the moment, and will make a full application to Brussels in January.

[Mr Kennedy]

I thank my right hon. Friend for that reply, and for the helpful way his Department and officials have taken account of local factors that have led to such an upsurge in feedback. Does he agree that one of the real lessons of the previous discount scheme and its success is that, despite a lot of scepticism at home at a European level, when we engage positively and constructively with the European Commission—and do so punching our weight as the United Kingdom—we are much more likely to deliver the results our constituents need and want?

[Danny Alexander]

I wholeheartedly agree—as I usually do—with my right hon. Friend about that. It is a statement of fact that British leadership as a strong and committed member of the European Union is hugely to our country’s benefit. The scheme for communities in remote areas across the United Kingdom shows the benefits we get from positive engagement at European level, and that is the way we will take the proposal forward.

[Mr Simon Burns (Chelmsford) (Con)]

17. Does the right hon. Gentleman agree that those who will benefit from the rural fuel rebate scheme will also benefit from the Chancellor’s freeze on fuel duty? What benefits in pence per litre will that bring to rural people, compared with the Labour party’s plans?

[Danny Alexander]

It is noteworthy that no one from the Labour Benches wanted to comment on cutting fuel duty in remote and rural areas. I wholeheartedly agree with my right hon. Friend, and by the end of this Parliament, motorists will be paying 20p a litre less every time they fill up their tank than they would have paid had Labour’s fuel duty escalator been allowed to go forward.

[Nicola Blackwood (Oxford West and Abingdon) (Con)]

4. What steps he has taken to increase infrastructure investment.

[Andrew Selous (South West Bedfordshire) (Con)]

6. What steps he has taken to increase infrastructure investment.

[The Chief Secretary to the Treasury (Danny Alexander)]

Average annual investment in infrastructure has risen to £45 billion per year under this Government, compared with just £41 billion during the last five years of the previous Government. Last week we published an updated national infrastructure plan that set out our long-term plan for meeting those ambitions for the next decade and beyond. That included a pipeline of £375 billion-worth of projects, building on the announcements we made in June.

[Nicola Blackwood]

I thank the Chief Secretary for his answer. Does he agree that investing in strategic roads such as the A34 in my constituency can be key to unlocking vital growth and inward investment in priority sectors? Will he investigate the economic case for urgent investment in the A34?

[Danny Alexander]

I agree about the importance of the A34, which is why, through the national pinch-point programme announced in the 2011 autumn statement, we committed to a scheme to improve links between the A34 and the M40. Work on that scheme will start in March, and I am sure the hon. Lady will agree that it will make a significant difference to the economy in her part of the country.

[Andrew Selous]

Does the Chief Secretary agree that if we are to compete internationally it is essential that we build our infrastructure more quickly? Over the past decade or so, progress has been glacially slow. In my constituency, the A5-M1 link road was announced 10 years ago, in 2003, and a shovel has yet to hit the ground.

[Danny Alexander]

I agree very much with my hon. Friend, and that is why part of our national infrastructure plan last week included further improvements to the planning system for major infrastructure projects. The A5-M1 link road has been prioritised as a key project and I understand that funding was announced last year and work will start next spring.

[Mr Geoffrey Robinson (Coventry North West) (Lab)]

Is the Chief Secretary aware that figures from the Office for National Statistics show that infrastructure work, since this Government came to power, has dropped by 15%? Given its importance as a motor for growth, why is he now planning to cut it yet again in 2015?

[Danny Alexander]

I gave the figures for investment in infrastructure in answer to my hon. Friend the Member for Oxford West and Abingdon (Nicola Blackwood). We set them out in our national infrastructure plan and, what is more, with public and private investment taken together over the next decade or so, we have a pipeline of £375 billion-worth of projects. This is the first time that this country has had a serious long-term plan for investing in infrastructure. If the hon. Gentleman believes in the long-term health of the British economy, he should support our national infrastructure plan, not criticise it.

[Helen Jones (Warrington North) (Lab)]

Can the Chief Secretary confirm that the cost of High Speed 2 has increased by £10 billion under this Government, and can he tell the House when he will get a grip on the costs of this huge infrastructure project?

[Danny Alexander]

I do not recognise those figures. Back in the spending round in June, I set a cap on the costs of HS2 at £42.6 billion. We intend that it will be delivered substantially under that budget. The question for Labour Members is whether they support this project or not. Frankly, given the enormous benefits it will provide for cities across the north, Labour Members should support the scheme, not constantly undermine it.

[Priti Patel (Witham) (Con)]

I welcome the Chancellor’s decision to establish the great eastern main line taskforce, so can my right hon. Friend give an assurance that in this era of record capital spending on infrastructure he will look favourably on investing in measures that the taskforce proposes?

[Danny Alexander]

I certainly will. I know that my hon. Friend has campaigned assiduously for this, as has my hon. Friend the Member for Norwich South (Simon Wright) and many other Members in that part of the country, and the ambition that the taskforce has set out is a good one. It is very much in keeping with the direction of travel in our national infrastructure plan, so I look forward with interest to the proposals from the taskforce and to taking them forward in due course.

[John Healey (Wentworth and Dearne) (Lab)]

I refer the Chief Secretary to the graph on page 6 of his new infrastructure plan, which looks like one of those dodgy “Labour can’t win here” graphics on a Lib Dem “Focus” leaflet. The graph apparently shows, as he has boasted this morning, that annual infrastructure investment is up under the coalition, but in the footnote it says that the Treasury had “challenges” putting the graph together and that the data are “not comparable” with the rest of the document. Will he agree to submit the figures to independent scrutiny by the UK Statistics Authority or the Office for Budget Responsibility?

[Danny Alexander]

After the shadow Chancellor’s performance last week, “Labour can’t win here” is a good description of the Chamber of the House of Commons.

Any Member of this House can submit statistics to the UK Statistics Authority, but I think that those statistics present an accurate picture of the level of overall infrastructure investment in this country. I welcome the strong interest that the right hon. Gentleman has shown in infrastructure and the commitment that he has made to taking these proposals forward. I wish that other members of his party showed a similarly constructive attitude.

[Annette Brooke (Mid Dorset and North Poole) (LD)]

5. How many of the lowest paid workers have been taken out of income tax since 2010.

[The Chief Secretary to the Treasury (Danny Alexander)]

This year 2.4 million low earners have been taken out of income tax since 2010. The number will increase further to 2.7 million next April, once the personal allowance reaches the £10,000 goal that we set in our election manifesto. By next year, the Government’s increases to the personal allowance will have reduced income tax bills by up to £705 a year for 26 million working people in this country.

[Annette Brooke]

The policy is important for a fairer society, and it incentivises work. Does my right hon. Friend share my aspiration to raise the tax threshold to £10,500 and achieve equality up to the age of 74, and, in due course, further increase the threshold for all age groups to incentivise both work and savings for lower and middle-income groups?

[Danny Alexander]

I very much share my hon. Friend’s ambition for this policy. We should consider a threshold of at least £10,500 in this Parliament, and that will be an objective of my Liberal Democrat party. It would be right for the age-related threshold and the main threshold, once they are aligned, to rise in tandem thereafter.

[Gavin Shuker (Luton South) (Lab/Co-op)]

18. Does the Chief Secretary share the concerns of Citizens Advice that changes to the threshold are more than swamped by the changes to benefits in other areas?

[Danny Alexander]

No, I do not share that analysis. It ignores the fact that increases to the personal allowance, along with many of our reforms to the welfare system, increase substantially the incentives for people to go into work. The private sector has created a net 1.4 million jobs since 2010, so there are more job opportunities to go around too.

[Mr David Ruffley (Bury St Edmunds) (Con)]

The Chancellor last week published evidence showing that his bold cuts to corporation tax more or less paid for themselves because of the extra economic activity they generated. Can a similar piece of work not be done to demonstrate that further cuts in income tax will also pay for themselves in a similar way?

[Danny Alexander]

I think that is rather a good idea and I will take it up in the Treasury.

[Sheila Gilmore (Edinburgh East) (Lab)]

What does the Chief Secretary intend to do to help low-paid workers who are below the tax threshold? They will not gain from a further increase in the tax threshold and have seen previous gains wiped out by the loss of tax credits. How will it help low-paid workers?

[Danny Alexander]

I intend to stick to our economic plan, which is leading to economic growth, job creation and a sustainable economic recovery matched by rising productivity. That is the only way to raise living standards and that is what we intend to do.

[Mr Peter Bone (Wellingborough) (Con)]

Does the deputy Chancellor agree that we make a lot of the number of people taken out of tax, but do not say enough on how everybody benefits from the personal allowance increase? It is effectively a cut in income tax.

[Danny Alexander]

I am grateful, as always, to my hon. Friend for his question. He is absolutely right: it is a huge cut in income tax. In fact, over the course of this Parliament and before we take any decisions on next year’s Budget, we are already committed to spending £38 billion to reduce the income tax of working people. That is a massive commitment from this Government to cut income tax for the working people of the United Kingdom.

[Huw Irranca-Davies (Ogmore) (Lab)]

7. What recent representations he has received on reform of the Office for Budget Responsibility.

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[Sir Andrew Stunell (Hazel Grove) (LD)]

9. What fiscal steps the Government are taking to encourage the building of social housing.

[The Chief Secretary to the Treasury (Danny Alexander)]

I pay tribute to my right hon. Friend for his contribution on the housing issue while a Minister in the Department for Communities and Local Government, particularly on helping to ensure that the £4.5 billion affordable homes programme is on track to deliver 170,000 new affordable homes by March 2015—100,000 are completed so far—and to fund an extra 165,000 houses over three years from 2015.

[Sir Andrew Stunell]

That is a remarkable contrast with Labour’s disgraceful approach, which got rid of those houses. Will my right hon. Friend assure me that highly successful arm’s length management organisations, such as Stockport Homes, which just opened the 4 millionth social home in the housing stock, will have an opportunity, under the Chancellor’s proposals, to build more social housing to meet the urgent need of my constituents?

[Danny Alexander]

My hon. Friend is absolutely right, and I congratulate Stockport Homes on its success—I think it was recently voted one of the best landlords in the country. The 4 millionth social home was part of the Government’s commitment to reverse the trend under Labour, where the social housing stock in this country fell by 421,000. Over the term of our housing plan, we will build at least 315,000 new social homes, and he will also have noted that in the autumn statement we announced an increase of £300 million in headroom under the housing revenue account precisely to allow local authorities to build more social homes in this country.

[Sarah Champion (Rotherham) (Lab)]

24. The Government have presided over the lowest level of house building since the 1920s—[Interruption.] Is it not clear that we need bold action to boost housing supply, especially social housing, and to deal with housing demand?

[Danny Alexander]

Insofar as I as I could hear what the hon. Lady was saying—

[Mr Speaker]

Order. Insofar as the Chief Secretary was having trouble hearing what the hon. Lady was saying, it was because of extreme and frankly discourteous noise from his own Benches, a fact of which I know the Government’s deputy Chief Whip will have taken full note.

[Danny Alexander]

Wherever the noise was coming from, I should say that, of course, house building and construction is important in every sector, social and private. That is why, in the autumn statement last week, we announced both the increase in the housing revenue account—something for which my party, the Liberal Democrats, has campaigned for some time—and the extra funding for large sites to unlock another 250,000 new homes in the private sector.

[Robert Halfon (Harlow) (Con)]

As well as supporting the building of social housing, will my right hon. Friend continue to support the right to buy, given that over 30,000 tenants have benefited from right to buy, including many in Harlow?

[Danny Alexander]

The right to buy is an important part of the coalition Government’s housing programme. It has been substantially improved by the commitment to one-for-one replacement for social housing when each house is sold. If that policy had been in place under the previous Government, we would not have seen a net loss of 421,000 social homes throughout their time in office.

[Mr Andrew Love (Edmonton) (Lab/Co-op)]

Why is it that, over the last 18 months, 11,000 homes have been sold under right to buy, but fewer than 2,000 replacements have been started? That does not seem to me to be one-for-one replacement. How does the Minister explain it?

[Danny Alexander]

Local authorities—[Interruption.]

[Mr Speaker]

Order. I said a moment ago that the hon. Member for Rotherham (Sarah Champion) should be heard. The Chief Secretary similarly must be heard.

[Danny Alexander]

We have made a commitment to one-for-one replacement. Housing starts, under the planning system, cannot be started instantly, which is surely a lesson that the hon. Gentleman should have learned during his many years in this House. The commitment is there and every one of those homes sold will be replaced by a newly built home.

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

10. What assessment he has made of the current level of the national deficit.

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[Mr Dave Watts (St Helens North) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Chief Secretary to the Treasury (Danny Alexander)]

The core purpose of the Treasury is to ensure the stability and prosperity of the economy.

[Mr Watts]

The Chief Secretary seems to be spending most of his time feathering his own nest in his constituency, but can he take some time out from that important work to confirm that energy bills will go up by more than £50 and that energy companies, who are making fat profits, will not pay one penny to reduce bills?

[Danny Alexander]

I can confirm to the House that the action the Government are taking will ensure there is £50 off people’s bills this year. That is as a result of serious-minded work to ensure we reduce the pressure the Government are putting on people’s bills. That includes taking the warm homes discount, which helps 2 million low-income people in this country, on to the Government’s balance sheet. That is the right option, compared with the complete con that unfortunately is still being peddled by the Opposition.

[Andrew Selous (South West Bedfordshire) (Con)]

T3. Will the Financial Secretary provide any more detail on last week’s announcement that the Government will later this month provide payment for people who bought pre-September 1992 with-profits annuities from Equitable Life?

[Ed Balls (Morley and Outwood) (Lab/Co-op)]

On Thursday the Chancellor claimed in this House that living standards are rising, on Friday the Institute for Fiscal Studies said that living standards are falling, so who is right?

[Danny Alexander]

First, may I say what a great pleasure it is for those on this side of the House to see the shadow Chancellor in his place, and may I join him in condemning the unattributable briefing against him from the people behind him—something that never happened in his day?

The whole reason millions of Britons—[Interruption.]

[Mr Speaker]

Order. At the moment I cannot hear the Chief Secretary’s reply, but I intend to do so, however long it takes; it is very straightforward.

[Danny Alexander]

I would like you to be able to hear it as well, Mr Speaker.

The whole reason millions of Britons are under financial pressure is that Labour’s economic mess cost every household in this country £3,000. Because our plan is working, we can cut income tax, we can cut fuel duty, we can put the triple-lock on pensions, we can freeze council tax and we can take money off people’s energy bills. The only way to raise people’s living standards in this country is to have a sustainable economic recovery.

[Ed Balls]

The right hon. Gentleman is as bad as the Chancellor. Why can he not admit the truth: this Government’s economic policy is not working for working people? That is the truth. This is what the IFS said after the autumn statement—[Interruption.] Members on the Government Benches do not want to hear it. People are worse off under the Tories; that is the truth. Here is what the IFS said:

“real median household incomes will be substantially lower in 2015-16 than in 2009-10.”

And where is the Chancellor? He is in Brussels, where the Government are taking legal action to stop a cap on bank bonuses. How out of touch can they get? Let me ask the Chief Secretary: are the Liberal Democrats really right behind the Conservatives on this one, too—on stopping the bank bonus cap?

[Danny Alexander]

I know that the shadow Chancellor has made one change since last week. He has appointed a new special adviser on hand gestures: Greg Dyke. [Interruption.] That is the gesture the shadow Chancellor’s colleagues are making every time they hear him in this House of Commons. The fact is that the Liberal Democrats, as part of this coalition Government, are delivering a sustainable economic recovery. We are part of a Government who are delivering £700 for every single working person in this country and who are delivering a proactive approach in the European Union, including by ensuring that the integrity of the European treaties is maintained, and that is what this legal action is all about.

[Duncan Hames (Chippenham) (LD)]

T4. I welcome the Chief Secretary to the Treasury’s ambitious plans for capital investment for a stronger economy that were set out last week. He will have heard me urging the Prime Minister to make up for the previous Government’s failure to rebuild Wiltshire college’s Chippenham campus. Could my right hon. Friend see his way clear to making that investment, so as to equip our young people with the skills that will enable them to get on in life?

[Danny Alexander]

I know how important that project is for the college that my hon. Friend mentions. I can confirm that the Skills Funding Agency has told the college that it is prepared to make grant funding available for the project, subject to some additional assurances being received. Those assurances are being sought this week, and the agency hopes to respond to the college by the end of this week.

[Kerry McCarthy (Bristol East) (Lab)]

T2. Housing costs represent one of the biggest pressures on the cost of living, and a new study by Oxford Economics suggests that, by 2020, house prices will have risen by 35% and rents by 39%. What are the Government going to do about that?

[Danny Alexander]

I know that the hon. Lady takes a close interest in these matters, and she will have seen the Office for Budget Responsibility’s forecasts, which suggest that even by the end of the forecast period, house prices in this country will be below their level at the peak of the financial crisis in real terms. The action we are taking includes the large-scale investment in affordable housing that I described earlier, which will help people with those problems.

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[John Cryer (Leyton and Wanstead) (Lab)]

T5. What assessment has the Chief Secretary to the Treasury made of the relationship between consistently falling real wages and the rapid growth of zero-hours contracts?

[Danny Alexander]

As the hon. Gentleman knows, the Secretary of State for Business, Innovation and Skills has been acting on zero-hours contracts; it is a subject that is currently under review in his Department. I have made a strong assessment of the connection between sustainable economic growth of the kind that this Government are delivering and the availability of jobs in the private sector, 1.4 million of which have been created since 2010.

[Eric Ollerenshaw (Lancaster and Fleetwood) (Con)]

T7. Given that the autumn statement contained further encouragement for companies to get involved in shale gas production through lower taxes, is there any chance of the Government giving further encouragement to local communities to accept the shale gas industry by offering somewhat more than the 1% that is now on the table?

[Danny Alexander]

My hon. Friend makes an important point. The shale gas industry has the potential to bring jobs and growth to communities across the country. In addition, the industry will give £100,000 to communities in which fracking is taking place, as well as 1% of all production revenues. However, we will of course listen to any suggestions from my hon. Friend about how that regime could be improved.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Does the Chief Secretary to the Treasury accept that, since the financial crash, productivity in the UK has fallen 5% but has gone up 8% in the United States, and that lending to business is down 13% and lending to mortgages is at 2008 levels? What is he doing about this? It is too little, too late.

[Danny Alexander]

The hon. Gentleman is right in his description of the fall in productivity in this country. That is related to the fact that this country was hit the hardest of almost any country in the world by the financial crisis, precisely because of the unpreparedness of his party. On the whole, however, the fact that a significant number of jobs have been created in our economy in recent years, even at the cost of falling productivity, represents a preferable balance from a welfare point of view.

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[Andrew Gwynne (Denton and Reddish) (Lab)]

The Chief Secretary might like to reflect on the very poor answer he gave my right hon. Friend the Member for Wentworth and Dearne (John Healey) earlier, because I have in front of me Office for National Statistics Table 1A, which clearly shows that infrastructure construction output to September 2013 has fallen by 15%. What went wrong, or is he seriously disagreeing with the Office for National Statistics?

[Danny Alexander]

What this—[Interruption.] The hon. Member for Islwyn (Chris Evans) should pipe down. What this Government recognise is that infrastructure relies on both public and private sector investment. The Labour party seems to have forgotten that the private sector is involved in delivering infrastructure. Total infrastructure investment in this country is higher in this Parliament than it was in the last.

[John Stevenson (Carlisle) (Con)]

T9. Individuals, households and businesses in my constituency must live within their means. Does the Chief Secretary agree that that is exactly what Governments need to do and that one of the reasons for our current budget deficit is the fact that the previous Government did not run a surplus in the good years?

[Danny Alexander]

I wholeheartedly agree with my hon. Friend that Governments must live within their means. It is because the previous Labour Government did not do so that we have had to make so many difficult decisions to get this country back on the right track, which is what we are doing.

[Ian Paisley (North Antrim) (DUP)]

Her Majesty’s Exchequer and the Republic of Ireland’s Revenue services lose hundreds of millions of pounds every year as a result of fuel fraud. When will the Government, in partnership with the Republic of Ireland, implement a new fuel marker to frustrate the criminals engaged in that theft?

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[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

I ask the Chief Secretary to ponder the fact that when I talk with my constituents, the thing they always talk about first is, “Housing, housing, housing.” When are we going to give young people, and increasingly older people, the chance that many of us in this House have had to get their own homes, because we are not building enough houses? He knows that is true—get on with it.

[Danny Alexander]

In many ways I agree with the hon. Gentleman. My constituents say exactly the same thing to me. That is why we are reforming the planning system to enable housing to be built more quickly, why we are increasing substantially the number of social homes in this country, compared with his party’s lamentable record, and why we have introduced the Help to Buy scheme to help people who cannot afford a large deposit to get on the housing ladder, all of which is leading to new houses being built in this country.

[Mr Douglas Carswell (Clacton) (Con)]

Narrow measures of money show that there has been no significant growth in the money supply. However, broader measures, such as the Divisia money measure, show that there has been a significant and sharp increase since late 2011. Does that concern the Treasury, and can my hon. Friend assure the House that the monetary authorities are not cooking up yet another credit-induced boom?

[Barry Gardiner (Brent North) (Lab)]

The World Bank and the independent TEEB—the Economics of Ecosystems and Biodiversity—report both state that 7% of global GDP could be lost by the devaluation of natural capital by 2050. Will the Government investigate what percentage of UK GDP is being lost through the depletion of natural capital?

[Danny Alexander]

The hon. Gentleman makes an incredibly important point. We in the Treasury and this Government have been examining the issue of natural capital, which we have taken forward in a way that previous Governments have not. I will certainly get the Minister responsible to reply in more detail on the specific point that the hon. Gentleman raises, because it is very important.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

In the autumn statement, in addition to very welcome changes to tax and spending in relation to housing, the Government announced a proposal to look at local authorities’ opportunities to develop much more public sector housing. How soon will that initiative see the light of day?

[Danny Alexander]

I am grateful to my right hon. Friend, who has been a doughty campaigner on these issues for many years. I am sure that he welcomes the increase in housing revenue account headroom for which local authorities will be able to bid to build more houses. We have also undertaken to carry out a wider review of this issue, and I will set out the terms and the process for that in the coming weeks.

National Infrastructure Plan

Danny Alexander Excerpts

Wednesday 4th December 2013 Commons Chamber

[Chris Leslie (Nottingham East) (Lab/Co-op)]

(Urgent Question): To ask the Chief Secretary to the Treasury to update the House on the national infrastructure plan.

[The Chief Secretary to the Treasury (Danny Alexander)]

Thank you, Mr Speaker, for giving me this opportunity to explain the national infrastructure plan to the House. I thought I might have tested the House’s patience back in June with my lengthy statement on infrastructure, but I am glad that there is an appetite for further conversation on this subject.

In June, I set out our plans to invest more than £100 billion of taxpayers’ money over the next decade towards improving our transport networks, our energy networks and our digital networks, and in other specific infrastructure projects crucial to our civic life. This morning, the Government published the latest updates of the national infrastructure plan and the investment pipeline that goes with it.

First, the documents provide an update on the projects that have been delivered to date—I am sure that we will return to that later. Secondly, the documents update our plans to improve future delivery. The updated pipeline provides the most comprehensive overview of planned and potential infrastructure investment ever produced, which gives investors the long-term clarity and certainty they need to put their money into our infrastructure. The NIP also includes changes relating to legal and planning practices, including reforms to judicial review, for example, the creation of a special planning chamber to ensure that the planning system and judicial review process does not cause excessive delays in any infrastructure project.

Thirdly, the documents published today update some of the details of our previous infrastructure plan. Let me give the House a few details. First, we set out changes to the strike price regime for renewable energy, and they have a number of components. We have reduced slightly the support being offered in the future for onshore wind and large-scale solar production. We are also increasing substantially investment in offshore wind. In particular, we think that the strike prices we have announced, with the increase in 2018-19, are likely to lead to at least 10 GW of investment in offshore wind between now and 2020—more if the prices can come down. This is about meeting our growth commitments and our green commitments as cost-effectively as possible.

The NIP sets out decisions on the future of the renewable heat incentive and the prices that we pay for different technologies under it. The plan also sets out a few changes to some specific transport schemes. We have listened carefully to the public response to the consultation on the tolling of the A14 and we have decided not to go ahead with that tolling, but not at any cost in terms of the time taken to deliver that very important project. We have decided to provide new investment in the A50, a crucial road link where there are many delays and bottlenecks. We are working closely with Staffordshire county council and the local enterprise partnership to work through the delivery of that. We have decided to contribute £30 million to the development of the proposed “Garden bridge” in London. We have also made announcements about supporting Government procurement of electric vehicles and some other important developments, such as our plans to double our corporate asset sales target from £10 billion to £20 billion by 2020.

We confirm that the feasibility studies we set out in June, particularly on routes such as the A1 to Scotland, the A303, the A27 and the trans-Pennine routes, are well under way and that full plans for each of those routes will be set out by this time next year. Following correspondence from Sir Howard Davies in advance of the interim report by his airports commission, we have set out plans to improve surface access to airports around London—in particular, £50 million will be contributed to a new Gatwick airport railway station. The subject of rural broadband was mention in the earlier Question Time, and we are committing £10 million to identify the best technologies to reach those hardest-to-treat premises.

Finally, today’s publication lays out the commitment made today by a group of insurers to work with Government and regulators and invest £25 billion in UK infrastructure over the next five years. I am sure that hon. Members on both sides of the House will agree that that represents a massive vote of confidence by some of our most important companies in the UK economy. The plan also draws attention to the new agreement signed with Hitachi and Horizon this morning, which commits us in principle to offering a guarantee for their new nuclear power station in Anglesey. I am sure that hon. Members who have had a chance to look through the document will recognise that this is real evidence that we are making real progress on delivering infrastructure fit for our country’s future. The NIP demonstrates a long-term vision for our energy, transport and digital networks. It is a plan that is helping to secure long-term investment and that will lead to sustainable, strong long-term growth. As such, I look forward to the hon. Member for Nottingham East (Chris Leslie) welcoming it with open arms and congratulating us on the progress we have made.

[Chris Leslie (Nottingham East) (Lab/Co-op)]

Time and again, the Chief Secretary boasts about his grand plans for infrastructure, yet the reality is always such a let down. With the country facing a cost of living crisis, is it not about time that the Government invested in the fundamentals to strengthen our economy for the long term? When will all these reheated press releases finally translate into diggers on the ground? Is it not the truth that since this Government were elected, work on infrastructure has fallen by an astonishing 15%, according to the Office for National Statistics? A 15% fall in infrastructure output since May 2010 should be a badge of shame for this Chief Secretary to the Treasury, as it happened on his watch.

This is a Minister who has a long history of issuing press releases in the hope that they magically translate into delivery on the ground. Once upon a time, many years ago, his press releases claimed that £20 billion from the pension funds would go into infrastructure, but only £1 billion was pledged, and nothing has yet been invested. Why should we believe that today’s press release about a supposed £25 billion from insurance funds is actually going to happen? Will he confirm that there is no new Government money for infrastructure today? In fact, will he admit that he is cutting the capital infrastructure budget in real terms by 1.7% for 2015?

For all the spin from this chief press officer to the Treasury, three quarters of the projects in this pipeline will not be in service until after the next election. Nearly a fifth of them will not be in service until after 2020. Members might have a niggling sense of déjà vu. Should not the Chief Secretary be just a little bit embarrassed to go through this same routine again? He pretends that he has got this fantastic record when he is transparently not delivering. It is worse than the emperor’s new clothes. He has been left exposed by a failure to deliver, and his record is out there for all to see.

Does not the chopping and changing on the A14 tolling in Suffolk say everything about the Government’s incompetent approach to infrastructure delivery? Costs have shot up £200 million and they have wasted three years on faffing around. On flood defences, they have cut spending by £100 million. On green investment, can the Chief Secretary not see that business investors are tearing their hair out at the erratic stop-start approach to support for renewables? Are we supposed to be impressed that the Government are looking at options to bring in private capital for the green investment bank? It is beginning to look like the return of omnishambles.

On schools, the Government scrapped Labour’s Building Schools for the Future, but of the 261 schools that their replacement Priority School Building programme was supposed to deliver, construction has started on only two. There is not a single word in this proposal today about housing investment. The Chief Secretary’s emergency guarantees legislation for £40 billion of underwrites has been a flop. His new version of private finance has not taken off. None the less, I must give him some credit today for one major advance for society. On the front page of his press release today, he pledges £8 million for new light bulbs for NCP car parks. What a shining example of infrastructure investment that is. I must ask: how many Treasury Ministers does it take to announce a change in the light bulbs? It is one thing putting out press releases, but can he at least try to make them vaguely convincing? He even resorts to claiming credit for projects that started before the election. This is a Treasury that has neglected the fundamentals that we need for a economic recovery that is built to last. For all the hype, the hot air and those press releases, we are left with a shambolic infrastructure programme and cuts in infrastructure plans. When will he get a grip?

[Danny Alexander]

It is very rare that I find myself thinking that Labour Members must wish that they had the shadow Chancellor on the Front Bench asking the questions and not the shadow Chief Secretary—the former policy wonk in the shadow Chief Secretary role with no new ideas of his own whatsoever.

The shadow Chief Secretary is quite right to say that this plan is not about new Government money, as I announced £100 billion-worth of new Government policy in June. He is wrong, however, on his comparisons with capital spending. Capital spending is higher in this Parliament as a share of the economy than it was under the previous Government. He is also wrong to criticise our announcements on energy today. The announcements on strike prices have been welcomed by commentators as diverse as Greenpeace, which states that it is right to focus on the costs of offshore wind, and the Renewable Energy Association, which described today’s announcement as a good day for renewable energy and renewable heat. I remind the hon. Gentleman that this Government were the first to put in place a green investment bank, something his party never bothered to do when it was in office.

Hearing the hon. Gentleman talking about infrastructure reminds me that his party cannot even decide what it thinks about the most important infrastructure project in the country, let alone what to do about it. The moment the Labour party comes out with a proper policy on High Speed 2 is, I suspect, a long time away. That is a pretty pathetic failure on Labour’s part to back investment in the north, northern cities and Scotland.

On delivery, let me say this. Onshore and offshore, underground and overground—[Interruption.]—wired and wireless, tarmac and train track, this Government are delivering. [Interruption.]

[Mr Speaker]

Order. There has been far too much noise on both sides of the Chamber. I appeal to Members to hear the Chief Secretary and I will then facilitate questioning for an appropriate period.

[Danny Alexander]

As we show in our national infrastructure plan today, investment in infrastructure in this country was up an average of £41 billion a year in the last Parliament, and £45 billion a year in this Parliament. Frankly, given our record, it is not clear which part of the word “delivery” the hon. Gentleman does not understand. Of the 646 programmes in our infrastructure pipeline, 291 are in construction. Under this Government since 2010: 36 transport schemes, delivered; 353 flood defences, delivered; superfast broadband to 10,000 rural homes every week, delivered—[Interruption.]

[Mr Speaker]

Order. Mr Lucas, your apprenticeship to become a statesman has several years to run at this rate.

[Danny Alexander]

A new prison is being commissioned in north Wales, Mr Speaker, should the hon. Member for Wrexham (Ian Lucas) wish to visit. That will be delivered very soon.

I have already mentioned superfast broadband to 10,000 homes, and 150 railway station upgrades and 80 electricity generation schemes have also been delivered. Making Britain the best country in the world to invest in infrastructure—delivered, and confirmed by a £25 billion commitment today from the insurance sector, which the hon. Member for Nottingham East should have welcomed rather than criticised. We on the Government Benches are building the foundations of Britain’s economic future—the only thing the Opposition built was debt.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

I welcome the much-needed announcement on infrastructure from the Government this morning, particularly the announcement on Wylfa and the reduction in onshore wind. I can support both wholeheartedly. However, there is an announcement in the plan that is not much needed by my constituents—that is, that on HS2. On page 40 of the plan, the Government say that the hybrid Bill on HS2 will go through in a year. Is that not a totally unrealistic timetable and is there not a danger that the Government are cutting corners on this major infrastructure project, not least by allowing only eight weeks for a consultation on a 50,000 page document on the environmental statement? Is it not about time that the Government considered the subject again more carefully?

[Danny Alexander]

On HS2, I would say that far from cutting corners we are making every effort to ensure that the programme is delivered as quickly as possible. That is what I think the country needs. I welcome the right hon. Lady’s comments on Wylfa nuclear power station and I was pleased to sign the agreement with Hitachi and Horizon this morning. On onshore wind, I feel that I might have to disappoint the right hon. Lady. We have reduced the prices we will pay in recognition that the costs are coming down, which will make that market more competitive. It should not necessarily be seen as a reduction in the delivery of onshore wind at all.

[Mr Alistair Darling (Edinburgh South West) (Lab)]

I am sure that I was not the only Member of the House who had a sense of déjà vu when listening to what the Chief Secretary had to say. Indeed, I seem to remember announcing a number of those projects myself 10 years ago. Perhaps that demonstrates the problem we face, because successive Governments have found it very difficult to deliver on those large-scale projects, whether for housing, transport or energy, which we desperately need. I know that central Government planning went out of fashion about 40 or 50 years ago, but is there not a case for seeing whether central Government could take a grip of those projects and match them up with the funds, including insurance funds, which is a good thing, to ensure that they actually happen? They are too important to the country to be left to chance. I am sure that he does not want to join the long list of Ministers who have announced these projects, only to find a few years later that they are filled with disappointment because they simply are not there.

[Danny Alexander]

I am grateful to the right hon. Gentleman for his comments—as usual, he makes a much more cogent and compelling argument on these matters than his Front Benchers. In all seriousness, the document, “The National Infrastructure Plan 2013”, is intended to do precisely that—to set out a clear pipeline. The changes we are making—I pay tribute to my noble friend Lord Deighton, who has joined the Government as the Minister with responsibility for infrastructure—are intended to ensure that Departments are better equipped with the commercial capability to deliver projects, to ensure that central Government are better able to track in real time what is happening with the projects, and to ensure that we have the mechanisms to deal with problems and blockages that central Government might put in the way. For example, I chair the Cabinet Committee on Infrastructure, which exists precisely to crack some of those policy problems and ensure that I do not suffer the disappointment that the right hon. Gentleman is so clearly filled with.

[Sir Alan Haselhurst (Saffron Walden) (Con)]

I welcome the Government’s commitment to improving connectivity to the principal airports. Will my right hon. Friend say a little more on the prospects for improving the link to Stansted airport, which would help not only air passengers, but many commuters in my constituency?

[Danny Alexander]

My right hon. Friend is absolutely right. As part of what we have announced today in the national infrastructure plan, we are also commissioning feasibility studies for improving surface access, by both road and rail, to Stansted and Heathrow, and that is alongside the money for the Gatwick railway station and the feasibility study we have commissioned on the rail link between London and Brighton, including the important Lewes to Uckfield line.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Will the Chief Secretary say a little more about the sell-off of national assets? Many of my constituents feel bruised, because they all used to own a bit of Royal Mail, but now only a few rather wealthy people do. Will such transactions continue with the sale of other national assets? Harold Macmillan once said that the Tory Government were selling the family silver. Is the furniture now following?

[Danny Alexander]

The hon. Gentleman asks an important question. Let me address it briefly. On Royal Mail, he will know that 10% of the shares are owned by the employees, which I think is an extremely good step that has not been taken before in the sale of national assets. The Government should not own assets that they do not need and in which investment could be made more effectively in the private sector, particularly when their sale would release receipts that could then be used to invest further in our critical national infrastructure. That is why we are raising our target for sales from £10 billion to £20 billion. I think that we have been under-ambitious in the past. There are assets that could be sold, such as the Government’s stake in Eurostar. No final decision has been taken on that, but we are working towards ensuring that we can put those assets into the private sector, where they can be better run and better managed, and use the resources for the infrastructure projects contained in the plan.

[Dr Julian Huppert (Cambridge) (LD)]

I very much welcome the announcement that the A14 toll will be scrapped and congratulate my right hon. Friend on listening to me and so many others on that. I also welcome the Renewable Energy Association’s comment that today is a good day for renewable electricity and renewable heat. Will he continue to campaign for this Government to be the greenest ever and resist any temptation to do anything else?

[Danny Alexander]

I am grateful to my hon. Friend for his remarks on the A14. It is fair to say that he has been one of the most assiduous campaigners in the House for the toll to be dropped, alongside many other hon. Members from the east of England. I certainly maintain my commitment both to renewable energy and to ensuring that this Government are the greenest ever. With the first green investment bank, the first renewable heat incentive, the strike prices and incentives for renewable energy and the many other policies we have announced, we are well on the way to achieving that objective.

[Caroline Lucas (Brighton, Pavilion) (Green)]

I can only say “dream on” in response to that answer. Will the Chief Secretary admit that the falling costs of renewable energy confirmed by the cuts to onshore wind and solar subsidies announced today simply demonstrate that the Government’s grotesque subsidy for nuclear is economic madness, since it is now clearer than ever that it will be cheaper and quicker to cut carbon and meet our energy needs through renewable energy, rather than nuclear power?

[Danny Alexander]

I am rather surprised not to hear the representative of the Green party welcome our commitments to making onshore wind more cost-effective and the big commitment to offshore wind set out in the national infrastructure plan. We must ensure that we have balance in our energy mix, and having nuclear power stations alongside renewable energy is the right mix. The Government are committed to that and I intend to ensure that we see it through.

[Andrea Leadsom (South Northamptonshire) (Con)]

I welcome today’s announcement on the national infrastructure plan. However, with regard HS2, it was made very clear at the beginning that no individual should be left out of pocket for the sake of a national infrastructure project, so will my right hon. Friend look again at the response that I received from the Department for Transport to a parliamentary question, stating that there would be no support for those families and communities who wished to petition on the hybrid Bill and no financial compensation? In fact, to be able to petition they need to figure it out for themselves, from reams of paperwork, and pay a £20 fee for the privilege.

[Danny Alexander]

I have not seen the correspondence, but if my hon. Friend would like to pass it to me, I will gladly look at it. I have to say, however, that it sounds as through what the Department has recommended is in line with normal practice, and I would not necessarily want to recommend any changes.

[Derek Twigg (Halton) (Lab)]

Why is the Chief Secretary dropping plans to charge a toll on the A14 in affluent Cambridgeshire but continuing plans to force Halton borough council to charge tolls across the proposed new Mersey Gateway bridge and the current toll-free bridge in one of the most deprived boroughs in the country? Will he think again and drop the charges for the Mersey Gateway?

[Danny Alexander]

The decision on the A14 was taken in direct response to our public consultation. The A14 would have been the only road in the country to be tolled in that way. We said that we were considering that and wanted to know what people thought, and they told us what they thought. Tolling on estuarial crossings, I am reliably informed, is usual practice and an important part of financing such projects.

[Neil Parish (Tiverton and Honiton) (Con)]

I welcome the Chief Secretary’s pipeline of funding. Will he turn the tap on in relation to the A30 and the A303 running east out of Honiton so that it can be continuously dualled and we can have a second pipeline of roads into the west country?

--- Later in debate ---

[Danny Alexander]

I can reassure my hon. Friend that the pipeline of money is already open for that project, as I announced in June. The work is now being done to work out precisely what improvements are available for the A303 and the A30 in that important link to the south-west of England. The Government are committed to ensuring that the route is upgraded, which is why we are conducting a feasibility study. By this time next year, we will set out the details for the House.

[Albert Owen (Ynys Môn) (Lab)]

I very much welcome the positive step forward on the Wylfa nuclear power station and the conversion of the Liberal Democrats on new nuclear build. I also welcome the extra resources for offshore wind, which will benefit not only my constituency, but the whole north Wales region. One missing element from the infrastructure plan is port development in Wales, which is a reserved matter. Will the Chief Secretary agree to meet me, so that we can have a level playing field for both English and Welsh ports in the development of offshore wind?

[Danny Alexander]

I am grateful to the hon. Gentleman for welcoming the steps that we are taking on the Wylfa power station and on offshore wind. My right hon. Friend the Secretary of State for Energy and Climate Change has changed our party’s approach to the issue, which I think was the right and realistic recognition of our energy needs in future. With regard to port development, it might be better if the hon. Gentleman met a representative of the Department for Transport, but if that is unsuccessful, I would be glad to meet him.

[Jesse Norman (Hereford and South Herefordshire) (Con)]

The greatest catastrophe in infrastructure procurement over the past 20 years was the private finance initiative under Labour. My investigations this week have shown a pattern of poor construction and inadequate maintenance at Hereford hospital on the part of the PFI contractors, and that relates to fire compartmentation, hospital ventilation, infection control, the emergency alarm system and maternity. That has been damaging to patient and staff safety and gave no incentive within the contracts to save money. Will my right hon. Friend reassure the House that the evils of PFI under Labour will never be repeated in this new round of investments and that the apparently systematic pattern of delaying and thwarting necessary remedial actions will never be part of the plans that he has laid before the House?

[Danny Alexander]

My hon. Friend has played a very important role in scrutinising and making public many of the most appalling features of PFI under the previous regime, and I congratulate him on that work. As he will know, a few months back, we announced the new private finance 2 model, which strips out an awful lot of the things that he is concerned about. We are also engaged in a detailed cost review of PFI projects to try to make sure that, where we can, we reduce cost pressures, as we did successfully with the Romford hospital PFI.

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

Will the Chief Secretary to the Treasury say a little more about what will be the benefits for Scotland as a result of his announcement?

--- Later in debate ---

[Danny Alexander]

I am grateful for that question. I will mention a couple of things. First, Scotland within the United Kingdom is one of the key places for developing renewable energy, particularly offshore wind. I hope that the strike price that we have set out today will be a real benefit to investors and potential investors in Scotland. Secondly, the availability of a lower rate from the Public Works Loan Board—in other words, cheaper borrowing for local authorities for key local infrastructure projects—is being extended from local enterprise partnerships in England to local authorities in Scotland and Wales, so that those areas, too, can benefit from it. Cheaper borrowing is one of the things that we certainly would not get if Scotland were ever independent. That is further confirmation of why we are better together.

[John Glen (Salisbury) (Con)]

In welcoming the news about the progress on the feasibility study for the A303, will the Chief Secretary bear in mind my constituents’ concerns about Stonehenge and Winterbourne Stoke? Unless that area is properly unblocked, people will not be able to get down to Devon to enjoy Tiverton and Honiton. This has been going on for several generations, and we need to make sure that it is sorted in any plans that come forward next year.

[Danny Alexander]

I think Stonehenge has been there for more than several generations, and I do not intend to remodel it at this Dispatch Box or anywhere else. My hon. Friend is absolutely right to draw attention to one of the issues on that route. We are conducting the feasibility study to work out what are the right steps to take at every stage. I am sure that his concerns will have been heard by colleagues in the Department for Transport, and I will certainly make sure that they are taken on board, as the feasibility plan is developed.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

The Chief Secretary paid tribute to my right hon. Friend the Member for Edinburgh South West (Mr Darling). I hope that he will also condemn the stupid, destructive briefing against him that has been coming out of the Government in recent days.

I do not know whether the Chief Secretary has ever seen the film, “Groundhog Day”, but if he has not, I recommend that he go home and watch it later. Infrastructure spending fell by 3.7% in the third quarter compared with a year ago, the CBI has said that progress is too slow, and most of the projects in the top 40 list were begun under the Labour Government. Can he give us a simple answer to the simple question why we should believe this statement any more than those that he gives every year at this time?

[Danny Alexander]

I have seen the film, “Groundhog Day”, and listening to the right hon. Gentleman’s Cassandra-like remarks, it feels a bit like that in the House, because he has made them before. The plan is based on a detailed pipeline worked on with industry and with Government, and he should have a great deal of confidence in it. On the first part of his question, let me take this opportunity to pay tribute to the work of the right hon. Member for Edinburgh South West (Mr Darling), who is doing a fantastic job in leading the campaign to keep Scotland in the United Kingdom. I very much hope that we will continue to work together in making sure that this country stays together.

[David Mowat (Warrington South) (Con)]

A large part of the plan concerns Hinkley Point C and Wylfa, which are badly needed and vital, yet we are now hearing that the EU is minded not to give state-aid clearance for those programmes, which could delay them both by three to four years. Can the Chief Secretary put our minds at rest?

[Danny Alexander]

I can certainly put my hon. Friend’s mind at rest. He should not believe all the rumours that he hears about the European Union, particularly if they are circulating on the Conservative Back Benches. The truth is that we have just started the state-aid clearance process, which does take a bit of time and is there for good reasons. All the work that my right hon. Friend the Energy Secretary and his colleagues have done leads us to have a great deal of confidence that the clearance will be forthcoming.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

What mechanisms will the Welsh Government need to put in place to access finance directly from the infrastructure plan for their own projects—or is it a matter of the Treasury determining which capital projects will be spent on in Wales?

[Danny Alexander]

That is a very good question. The Welsh Government’s capital budget is allocated to them through the Barnett formula, so they have complete freedom to determine how they use the money. I urge them to consider the principles laid down in the infrastructure plan as applicable to Wales. I draw the hon. Gentleman’s attention to our decisions in responding to the Silk review, whereby the Welsh Government will now have borrowing powers, particularly to fund the M4 project, which is such an important investment not just for Wales but for the whole UK.

[Ben Gummer (Ipswich) (Con)]

I pay tribute to my hon. Friend the Member for Suffolk Coastal (Dr Coffey), who led the campaign on the A14 well in advance of the point at which the hon. Member for Cambridge (Dr Huppert) became pregnant on the matter. May I ask the Chief Secretary whether the diggers will arrive as promised in 2016?

[Danny Alexander]

Several hon. Members have been assiduous in their campaigning on this matter, but I can speak only for those who have come to lobby me personally. I am sure that a lot of remarks have been made by a lot of hon. Members, and I pay tribute to them all. The simple answer to the hon. Gentleman’s question is yes.

[Fiona Mactaggart (Slough) (Lab)]

The Chief Secretary will be aware that the major gateway for inward investment to Britain is Heathrow. In his announcement, he committed the Government to take forward projects such as the northern hub at Manchester airport, the Birmingham gateway and the development of western rail access to Heathrow. If he accelerated the latter, we could get western rail access to Heathrow within about three years. Why does he not get it going faster?

[Danny Alexander]

That is a bit of a laugh coming from Labour, which never bothered to look at the idea at all. Aside from that, this was one of the plans in the statement that I made in June where we set out a £100 billion plan for transport investment. I would happily arrange for the relevant Minister to give the hon. Lady a direct update on progress with the project.

[Andrew Bingham (High Peak) (Con)]

I welcome this plan, too. I draw my right hon. Friend’s attention to the feasibility study for the trans-Pennine route. I am delighted to see that in the plan, particularly with regard to the Mottram-Tintwistle bypass through my constituency and that of the hon. Member for Stalybridge and Hyde (Jonathan Reynolds). He and I have worked together and agree on that project, and I implore the Chief Secretary to bring it forward as quickly as possible. I look forward with great anticipation to the autumn statement, when I hope that we will have a solution to a problem that has bedevilled the House and my constituency for nearly 50 years.

[Danny Alexander]

The hon. Gentleman can be assured that that project will be considered as part of our work on the feasibility study on trans-Pennine access. It is good to hear that there is cross-party support for the project and, indeed, that there is any infrastructure project that Labour Members are prepared to support.

[Sammy Wilson (East Antrim) (DUP)]

Coming as I do from a part of the United Kingdom where an £18 billion investment project for the next 10 years has already been cut by 20%, the Minister will understand why I am cynical about this plan. How can we have any confidence in his estimate of the asset sales income to finance it given, first, that he cannot necessarily commit future Administrations to capital budgets, secondly, that the pension funds have already failed to deliver on private finance, and thirdly, that it must be seen in the context of the Government’s record on asset sales?

[Danny Alexander]

Let me start by paying tribute to the hon. Gentleman, who until recently performed a fantastic service to Northern Ireland in his role as Finance Minister in the Northern Ireland Government. He and I worked closely together in that regard. I would have thought that that work alone gave him confidence in the plans that I have set out. I do not think that his claim about the £18 billion for Northern Ireland is factually accurate, for reasons that he and I have discussed many times and, I am sure, will continue to discuss long into the future. As for the rest of the plan, he can be confident in it for the reasons set out in the document, which I very much encourage him to read and support.

[Mr David Nuttall (Bury North) (Con)]

Why do the Government still need to own Channel 4?

[Danny Alexander]

That is a good question, and I suggest that the hon. Gentleman raise it at Culture, Media and Sport questions.

[Geraint Davies (Swansea West) (Lab/Co-op)]

The Chief Secretary knows that 80% of the money in the infrastructure plan is being spent in London and the south-east to shore up the Tory vote, but is that also why the company behind the Atlantic array has ditched its plans for offshore energy off Swansea? If not, what is the explanation?

[Danny Alexander]

The hon. Gentleman will have to talk to the project developer about that. I completely refute his allegation with regard to where the infrastructure projects are taking place. One of the most important projects in the plan is High Speed 2, which will benefit the whole country, including, potentially, north Wales with regard to rail access. We have also made announcements about the M4 and borrowing powers for the Welsh Government. The largest single project where there is progress today is the Wylfa nuclear power station, which the hon. Member for Ynys Môn (Albert Owen) welcomed, and I should hope the hon. Member for Swansea West (Geraint Davies) would, too.

[Mr Stephen O'Brien (Eddisbury) (Con)]

In welcoming the statement and, in particular, knowing the Chief Secretary to be the guardian of value for money, which has led to the justification for non-carbon-emitting nuclear power, may I ask him to guide me to where I can find in all the HS2 documents that have now been published the business case that judges double-decking carriages to relieve the passenger capacity problem on the west coast main line versus HS2? Try as I might, I cannot find it. It does not appear to be there, even though it would seem to me the one business case needed to prove the case that has been made.

[Danny Alexander]

I might have been able to give the right hon. Gentleman a page reference if he had asked a question about the national infrastructure plan. I think that expecting an answer from me about the voluminous range of papers on HS2 is a little bit too much, but I will make sure that he receives an answer from my friends at the Department for Transport.

[Nick Smith (Blaenau Gwent) (Lab)]

Will the Government consider bringing forward the electrification of the south Wales valleys line? That would make a big difference to boosting employment in a deprived area.

[Danny Alexander]

I agree with the hon. Gentleman about the importance of electrifying the south Wales valleys line. That is why the Government added it to the Network Rail plan; it was not there before. I will certainly look at the case for accelerating it, if possible. The structure of this country’s rail industry is such that Network Rail is given a regulatory set of obligations and has to work out for itself the most efficient way to deliver them, but I would be very happy to ask that question of Network Rail and to share any answers with the hon. Gentleman.

[Iain Stewart (Milton Keynes South) (Con)]

Contrary to the rather dreary words from the shadow Chief Secretary, the hon. Member for Nottingham East (Chris Leslie), about the progress of infrastructure projects, is my right hon. Friend aware that very good progress is being made on reopening the east-west rail line through my constituency, with Network Rail engineers out doing the important surveying work ready to get the trains running again?

[Danny Alexander]

I think that “dreary” is rather a positive description of what the shadow Chief Secretary had to say, but I welcome the fact that he was given the opportunity to show from the Dispatch Box what a good plan the Government have, including the east-west line, and what a hopeless contribution the Opposition are making to this debate.

[Diana Johnson (Kingston upon Hull North) (Lab)]

On rebalancing the economy, why is the Chief Secretary able to spend £1 billion to put two extra Northern line tube stations in prosperous parts of London but not able find the money to fund the electrification of the line to Hull, and why is he spending £30 million on a new Thames garden bridge but nothing for putting a bridge over the A63 in Hull? Both those things are needed, following our successful 2017 city of culture bid.

[Danny Alexander]

I think that the hon. Lady is being unkind to the Government. We have cut the tolls on the Humber bridge, which I know she and other Members from that region welcomed. Under this Government, 880 miles of railway are being electrified in this country, compared with a full 9 miles during Labour’s 13 years in office. The chair of the Humber local enterprise partnership, Lord Haskins, recently raised with me the importance of the electrification of the Selby to Hull line, which is something I am looking at right now.

[Andrew Griffiths (Burton) (Con)]

I refer the House to my entry in the Register of Members’ Financial Interests.

On behalf of business and residents in Uttoxeter, may I thank the Chief Secretary for the huge investment in road improvements on the A50? Does he agree that this kind of investment in roads can help not only to improve road safety and cut congestion, but to deliver growth, jobs and prosperity in the north?

[Danny Alexander]

I wholeheartedly agree with my hon. Friend and I pay tribute to him, because he has made a fantastic contribution to making the argument for the project to Ministers, which has led to its inclusion in the infrastructure plan. He is right: road improvements are not just about dealing with congestion for motorists, but about unlocking growth opportunities for the whole country, and I think that is precisely what the A50 investment will do.

[Mr William Bain (Glasgow North East) (Lab)]

Given the pitiful rate of housing construction in Scotland presided over by the Scottish Government, Scotland faces a shortfall of 160,000 properties by 2035, but is the Chief Secretary able to point to a single announcement in his statement that would help contribute to alleviating a housing crisis across the United Kingdom?

[Danny Alexander]

Housing is not, of course, directly part of the national infrastructure plan—it never has been—but I can say a word about it. A number of the infrastructure projects will directly unlock housing developments. For example, the investment in the A14 will unlock sites for 10,000 or more new homes in that part of England. That is precisely the sort of project we need to see more of.

Our Help to Buy scheme, which is enabling people who cannot afford large deposits to get a mortgage and to get on the housing ladder, is helping people in the hon. Gentleman’s constituency and mine, as well as across England and Wales, to access the housing market. That, in turn, will help to stimulate house construction in Scotland as well as in other parts of the UK.

[Jason McCartney (Colne Valley) (Con)]

Does my right hon. Friend agree that if Opposition Front Benchers stopped their mithering, got out more from their Primrose Hill mansions and came up north, they would see a succession of major infrastructure projects finished ahead of schedule? For example, the M1 and M62 managed motorway schemes came in under budget and finished under time, and the new Acre Mill site at Huddersfield royal infirmary has nearly been completed. The trans-Pennine route is also being electrified and we have the northern hub. If the shadow Transport Secretary, the hon. Member for Wakefield (Mary Creagh) went to her constituency of Wakefield in two weeks’ time, she would see a nearly completed new railway station, which I use every week.

[Danny Alexander]

My hon. Friend makes the case incredibly powerfully. We are investing in infrastructure up and down this country. We are delivering massive investment. He gave a list and I could give an even longer list from the north, the south, the midlands and across the whole of the United Kingdom. The Labour party has called for consensus on infrastructure. That consensus could best be achieved by Labour setting out its support for the best long-term plan for infrastructure this country has ever had.

[Richard Burden (Birmingham, Northfield) (Lab)]

If the Government’s record in delivering infrastructure projects is as the Chief Secretary claims, rather than as my hon. Friend the shadow Chief Secretary claims, why did the Financial Times this week quote John Cridland, director general of the CBI, accusing the Government of “talking the talk” rather than delivering on projects, and why did Richard Laudy, head of infrastructure at the construction law firm Pinsent Masons, echo the view of much of the industry when he said he expected more “smoke and mirrors” from the Government?

[Danny Alexander]

Some things are beyond the ken of most of us in this world and the editorial decisions of the Financial Times are one such matter. There has been a very strong welcome from industry for this plan and its previous iterations, including, as we have heard, from constituencies where projects are being taken forward. That is precisely because this Government are the first to have a long-term plan for infrastructure with a clear pipeline of projects that are being delivered up and down the country. The hon. Gentleman should welcome that.

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

There is so much to welcome in the updated national infrastructure plan, including the announcements about nuclear power stations and offshore wind. In particular, I want to thank my right hon. Friend for listening to the public consultation and the voice of business from Suffolk and cancelling the A14 toll. Like my hon. Friend the Member for Ipswich (Ben Gummer), I am very keen to get on with the project. Is there any chance of bringing it forward a few months?

--- Later in debate ---

[Danny Alexander]

I pay tribute to my hon. Friend for her important contribution to the debate on the A14. I said in my statement that the decision not to go ahead with tolls on the road will not delay the project. We are working with the Department for Transport to make sure that the time scale is as rapid as possible. I cannot give my hon. Friend any particular assurances at the moment, but I am sure my colleagues in the Department for Transport will have heard her comments.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

This is actually the coalition’s fourth national infrastructure plan in three and a half years. The Chief Secretary is not a press officer now; do we not need a bit more effort in implementation and rather less on presentation?

[Danny Alexander]

The hon. Gentleman’s party may not be very good at maths, but I am sure even Labour could work out that when a Government are in their fourth year in office and have promised to update a plan annually, they will give four iterations.

[Glyn Davies (Montgomeryshire) (Con)]

I, too, welcome my right hon. Friend’s statement, particularly his reference to a slight decrease in the strike price for onshore wind. Will he tell us exactly what that strike price will actually mean? Energy companies seem desperate to build wind farms on every hilltop in rural Britain, despite their impact on the landscape and the view of popular opinion. Does my right hon. Friend agree that there is scope for more than just a slight decrease in the subsidies to onshore wind and for a greater increase in those for offshore wind?

[Danny Alexander]

I am grateful for the question. The published strike prices are set out in table 3.D on page 50 of the national infrastructure plan. I do not intend to read out all the numbers, as I am sure you will be pleased to hear, Mr Speaker. The real point is that we are moving to competitive allocations for onshore wind and solar earlier than we thought, precisely because prices are coming down. There is a degree of competition to secure the best and most cost-effective projects, and that should help to secure the objectives that he and I share.

[Kate Green (Stretford and Urmston) (Lab)]

I note from the document published today that the Government will monitor progress on the Manchester Metrolink extension programme. What conversations are the Treasury and the Government having with Greater Manchester authorities and Transport for Greater Manchester to ensure that the extension link through Trafford Park is both properly financed and on time?

[Danny Alexander]

That is one of the projects that we will track under our new infrastructure tracking regime, which will make sure that any problems are surfaced for Ministers much more quickly than they have in the past. If the hon. Lady is aware of any particular causes of delay, I encourage her to let me know. I will of course make sure that Transport Ministers are aware of her concerns.

[Henry Smith (Crawley) (Con)]

In the week that Gatwick is celebrating its fourth year as a successful independently operated airport, I very much welcome the £50 million investment in upgrading the important connectivity of the rail station, which will help the local economy and help Gatwick as a preferred UK gateway. Does the churlish chuntering of the Opposition just prove that they have nothing to offer the economy in terms of recovery and investment?

[Danny Alexander]

I agree wholeheartedly with my hon. Friend on both his points. On the latter, I have said enough, but the Opposition are just completely hopeless on the economy, as they have demonstrated again today.

I travel through Gatwick regularly when flying back and forth to Inverness—this is not the reason why Gatwick is in the plan—and I have to say that the airport railway station does not present a great face to the world for people arriving in this country for the first time. That is why the investment is much needed, and we welcome the fact that Sir Howard Davies has suggested making such an improvement. The £50 million we are providing will of course need to go alongside investment by the airport, but provided that that is forthcoming, we can get on with the project.

[Huw Irranca-Davies (Ogmore) (Lab)]

How many of today’s announcements and the many re-announcements are in response to real tragedies for the economy, such as RWE’s decision to walk away from a potential £4 billion investment in the Atlantic array, which would have brought much-needed jobs? Has the Chief Secretary had discussions with RWE on resetting the strike rate, and would it now be at the table if he had done so sooner?

[Danny Alexander]

As RWE said at the time, its decision about the project was a commercial one taken for a range of reasons. It was aware of the timetable for setting out the strike prices. I know that my hon. Friends in the Department of Energy and Climate Change had conversations with that company.

[Richard Fuller (Bedford) (Con)]

I have listened to the many questions from hon. Members, but none has referenced the fact that, despite making progress on the deficit, the Government’s finances are still not in balance. Having listened to the scepticism of a former Chancellor, the right hon. Member for Edinburgh South West (Mr Darling), does my right hon. Friend think that the Government would do better by being more modest in their scope, more effective in their delivery and more stringent in their evaluation of the projects?

[Danny Alexander]

The evaluation of all the projects is very stringent, and I ensure that that happens, but we have also taken some very difficult decisions to constrain public spending in other areas to make more investment available for infrastructure projects. I think that that is the right balance, because infrastructure projects are so important for the long-term future of the country. Under-investment in infrastructure has been a British disease for decades, and we need to end it.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

Further to the very good question from the hon. Member for High Peak (Andrew Bingham), may I politely say to the Chief Secretary that since his announcement on 27 June of the transport routes feasibility study, it has been very hard to get details even of its terms? It took me three letters to the Department for Transport just to achieve that; it was obviously very busy delivering all the numerous projects around the country. Will he reaffirm his commitment to work with not only me and the hon. Member for High Peak, but colleagues from around the affected area—from Sheffield, Barnsley, Derbyshire—because trans-Pennine connectivity is truly awful at the minute? It needs a lot more attention than it is getting, and there is huge consensus in the House about trying to improve that.

[Danny Alexander]

I certainly agree that the Department for Transport is working very hard to deliver a large number of projects. I am grateful that that is recognised by at least one Opposition Member. As I said in my remarks, we need to make sure that local views are listened to as part of feasibility studies. I am sorry if the hon. Gentleman has had difficulties in getting across such views, and I will certainly pass that point on to colleagues in the Department for Transport. I wholeheartedly agree with him about the importance of trans-Pennine connectivity. That is why we initiated the feasibility study in the first place, and I hope that he will welcome its proposals when they are made.

[Guy Opperman (Hexham) (Con)]

A clear timetable and a change from the Labour Government’s failure to address the problems of the A1 and the A19, as well as rail projects, will be very welcome in the north-east. My right hon. Friend has visited Northumberland, and he knows that some truly rural areas have no broadband whatever. Will he expound in a little more detail how communities such as mine, which has no broadband and no possibility of getting it under the present schemes, can access the extra funding?

[Danny Alexander]

My hon. Friend draws attention to a very serious problem. Like him, I represent a large rural constituency, so I am very aware of these issues. Back in June, I announced additional funding to extend the target for the proportion of the population with access to superfast broadband. Today, we are announcing a small fund to stimulate innovation to find the best and cheapest technological solutions for getting superfast broadband to absolutely everybody, no matter how far they live from an exchange. We will get as far as we can towards that objective. If my hon. Friend has any ideas or if innovative companies in his constituency have any thoughts about that, I would be glad for them to contribute to the process.

[Sheila Gilmore (Edinburgh East) (Lab)]

Will the Chief Secretary rethink his view that housing does not have a place in infrastructure planning, particularly in relation to direct investment in affordable housing? Such investment would be a real win-win-win situation, because it provides the necessary houses, improves construction skills in apprenticeships and helps to bring down housing benefit spending far more effectively than the Government’s engaging in the kind of tinkering, such as the bedroom tax, that so much affects individuals, but makes no real saving.

[Danny Alexander]

I am very glad that the hon. Lady has given me the chance to talk about affordable housing, because I can refer to the fact that the number of affordable houses in this country fell by 421,000 during Labour’s time in office. We now have the largest annual house building programme for affordable homes through housing associations for two decades. I would have hoped that she would welcome rather than criticise that.

[Mr Robin Walker (Worcester) (Con)]

The coalition Government are delivering progress on new nuclear and transport infrastructure where the Labour Government utterly failed during their time in office. On the transport front, I particularly welcome the inclusion of the Birmingham airport runway extension—it will be completed in 2014, according to the document—which will provide direct links between the engine room of the British economy in the midlands and China and far east, where we are drumming up so much business.

[Danny Alexander]

My hon. Friend is absolutely right to highlight the runway extension at Birmingham airport. A year or so ago, with my hon. Friend the Member for Solihull (Lorely Burt), I had the privilege to visit that fantastic project, which will open up access to a much wider range of destinations from Birmingham airport, and that is a good thing for the whole country.

[Alison McGovern (Wirral South) (Lab)]

The Chancellor of the Exchequer has said that he wants to rebalance the British economy, but is now defending bankers’ bonuses in court. Today’s infrastructure announcement highlights the fact that the Office for National Statistics has said that infrastructure work has dropped by 15%. May I give the Chief Secretary to the Treasury an opportunity to say whether he still believes in rebalancing, and if so, what further steps must the Government now take?

[Danny Alexander]

I wholeheartedly believe in rebalancing the economy, which is why we are investing in infrastructure: £45 billion a year was invested in infrastructure in the first three years of this Parliament, compared with an average of £41 billion a year in the previous Parliament. Rebalancing the economy is about investing in infrastructure and the skills of our work force, and about supporting vital industries, such as the automotive and aerospace sectors, as we are again doing in this plan. The industrial strategy set out by my right hon. Friend the Secretary of State for Business, Innovation and Skills has played a very important role in rebalancing the economy. It will, however, be a long-term job to get away from the very unbalanced economy—all focused on London and the City—left to us by the hon. Lady’s party.

[Mr Philip Hollobone (Kettering) (Con)]

Thousands of houses are being built in and planned for the borough of Kettering, but the town of Kettering will grind to a halt under all the extra traffic unless new junction 10A is built on the A14. The junction would cost £30 million, but it would generate £1 billion of economic benefit to the local area under the Treasury’s Green Book rules. Despite the best efforts of everyone involved, and the lobbying of the Departments for Communities and Local Government, for Business, Innovation and Skills and for Transport, the funding has not been forthcoming. Will my right hon. Friend agree to meet me and a delegation from Kettering to see how we can solve the problem?

--- Later in debate ---

[Danny Alexander]

I am not aware of the specifics of junction 10A on the A14. Clearly, I do not want the town of Kettering to grind to a halt. We want the hon. Gentleman to be able to get here to his place of work as often as possible. It might be appropriate for him to meet a Minister from the Department for Transport to discuss this matter. I will gladly keep up to speed with what happens and hold a meeting if it is absolutely necessary.

[Mr Speaker]

I would go so far as to say that the continuing presence of the hon. Member for Kettering (Mr Hollobone) in the Chamber on a daily basis is a vital national interest.

[Ian Lucas (Wrexham) (Lab)]

Solar energy provides hundreds of manufacturing jobs in my constituency. The Government have presided over numerous changes to the investment framework for that industry and another change has been announced today. Will the Chief Secretary provide an assurance that there will be no further changes to the investment framework before the next general election?

[Danny Alexander]

Solar energy plays an important part in helping us to meet our energy obligations. However, I am sure that the hon. Gentleman would not argue that consumers should continue to pay costs at a high level as the costs come down in that sector. The framework that we have set out today will ensure that that does not happen. I hope that it will give a degree of confidence to that industry, which I know creates a lot of jobs in his constituency.

[David Rutley (Macclesfield) (Con)]

The Chief Secretary will know that progress is being made on the link road from Manchester airport to the A6. Will he join me in supporting the calls for a related relief road for the village of Poynton, which was promised in the 1990s and which will be vital in tackling the growing traffic congestion?

[Danny Alexander]

Again, I am afraid that I do not know the details of that project, but it sounds like there is a strong case for it at a local level. If my hon. Friend writes to me with the details, I will happily see how it could be progressed.

[Peter Aldous (Waveney) (Con)]

As a Suffolk MP, I, too, welcome the announcements on the A14 and the further investment in offshore wind. Does my right hon. Friend agree that those commitments will help to attract private sector investment and to create jobs that will be of significant benefit to the East Anglian economy and, in particular, to my Waveney constituency?

--- Later in debate ---

[Danny Alexander]

I agree wholeheartedly with my hon. Friend. The attraction of private sector investment alongside Government investment is one of the principal objectives of the national infrastructure plan. That is why I am so pleased today to welcome the commitment of £25 billion-worth of additional investment from British insurance companies in British infrastructure. It is precisely that sort of investment that will ensure that all of the projects are delivered.

[Stephen Mosley (City of Chester) (Con)]

I welcome the £15 billion of inward investment in infrastructure since 2010 that is detailed in the report. Does that not show, despite the best efforts of the Labour party to talk down our economy, that when foreign investors look at the UK, they see a country that is on the up and that has a bright future?

[Danny Alexander]

That is absolutely right. I am very grateful to the shadow Chief Secretary for giving us the opportunity to have this conversation in the House today and to demonstrate the paucity of his policies. If my hon. Friend is interested in foreign investment in infrastructure, there is a very good table in the document that has been published today, I think on page 87, which sets out a range of projects in this country that have been funded by overseas investment.

[Mr Peter Bone (Wellingborough) (Con)]

My constituents will greatly welcome the deputy Chancellor’s decision to scrap tolling on the A14. Last week, Councillor Thomas Pursglove and I launched a major listening campaign on the A45, which links the M1 to the A14. There are two pinch points: one at Chowns Mill and one on the last 5 miles of the road, which are not dualled. I am sure that the statement and the increased spending on roads will help us in that regard, but is there anything else that I should be doing to encourage people to do something about those problems?

[Danny Alexander]

I am grateful to my hon. Friend for welcoming the plan. In June, we set out considerable funding for the Department for Transport to deal with such local pinch points. Local enterprise partnerships have a role in identifying where action is needed. I urge him to engage with his local enterprise partnership, as I am sure he is already doing, because if it identifies such schemes as priorities for the area, they will in turn be made into priorities for Government funding and the problems can be dealt with.

[Mr Speaker]

I had anticipated a point of order, because I had received notice of one, but it appears that it will not be raised at this stage. So be it.

National Infrastructure Plan 2013

Danny Alexander Excerpts

Wednesday 4th December 2013 Written Statements

[The Chief Secretary to the Treasury (Danny Alexander)]

This Government are committed to reversing the effects of historic under-investment and equipping the UK with world-class infrastructure.

The Government are today publishing the “National Infrastructure Plan 2013”, which updates their plan for the next decade and beyond, and announcing a package of measures which will further support their ambition.

Economic regulators’ study

The Government recognise the value of fully independent regulation for economic infrastructure, and remain committed to this system. There is nevertheless scope for broader consideration of the way regulators work together and with the Government on issues related to cross-sectoral infrastructure delivery. They have therefore initiated a joint HMT/BIS study to look particularly at developing better joint working, more clearly explaining the role of economic regulation, and facilitating cross-sector infrastructure investment. Recommendations from the study will be made in spring 2014.

Broadband fund and local procurement

The Government will open a £10 million competitive fund in 2014 to market test innovative solutions, delivering superfast broadband services to the most difficult-to-reach areas of the UK; the Government will continue to support local bodies to develop appropriate strategies to procure additional coverage in areas not covered by current plans, using the £250 million allocated at spending round 2013.

Public Works Loan Board (PWLB)

The Government are allocating the remaining £800 million of borrowing at the Public Works Loan Board (PWLB) project rate as part of growth deals. This will be available to LEPs working in partnership with local authorities in 2014-15 and 2015-16 and allocated on a competitive basis alongside the single local growth fund.

The Government are also announcing that local authorities in Scotland and Wales will have access to the Public Works Loan Board project rate to support priority infrastructure projects. A total of £400 million of borrowing will be available from 2014-15 to 2015-16, subject to agreement with the devolved Administrations on the precise mechanics and conditions.

Airport surface access

The Government are today taking forward measures proposed by the Airports Commission by introducing a package of improvements to airport surface access. These measures include making available £50 million for a full redevelopment of the railway station at Gatwick airport (subject to satisfactory commercial negotiations with the airport), setting up a new study into Southern Rail access to Heathrow, and including access to Stansted on a current study of the East Anglian mainline.

Sir Howard Davies’ letter recommending these measures has today been published on the Airports Commission’s website.

Queen Elizabeth Olympic Park

The Government will support the London Legacy Development Corporation and Mayor of London in developing their plans for the Queen Elizabeth Olympic park. This includes plans for a new higher education and cultural quarter on the park, in partnership with University College London and the Victoria and Albert museum.

Ultra-low emission vehicles

The Government will invest £5 million during 2014-15 in a large-scale electric vehicle readiness programme for public sector fleets. The programme aims to promote the adoption of ultra-low emission vehicles, demonstrating clear leadership by the public sector to encourage future widespread acceptance.

River Thames Garden Bridge

The Government will provide a £30 million contribution to support the construction of a new Garden Bridge across the River Thames in London. This will supplement funding from Transport for London and private donations.

A50

The Government will provide funding to support improvements to the A50 around Uttoxeter starting no later than 2015-16 (subject to statutory procedures) to support local growth, jobs and housing; this project will be subject to the usual developer contributions.

A14

The Government are confirming that there will be no tolling on the planned A14 scheme between Cambridge and Huntingdon (one of its “top 40” priority investments), construction of which is planned to start in 2016; it has listened to concerns from local residents and businesses who rely on this road and, following a consultation, have decided to take forward a scheme which does not include a tolling element

Driverless cars

The Government will review the legislative and regulatory framework to ensure there is a clear and appropriate regime for the testing of driverless cars that supports the world’s car companies to come to develop and test them here. The review will report at the end of 2014.

The Government will also provide a prize fund of £10 million for a town or city to develop as a test site for consumer testing of driverless cars.

Strike Prices

The Government are today announcing the “strike prices” for key renewable energy generation technologies from 2015-16 to 2018-19. These prices confirm the level of support that private sector developers will be guaranteed to be paid for their electricity through a top-up from the wholesale price, under the new electricity market reform regime.

The Government will announce further details on contract terms by the end of 2013.

Judicial Review Reform

The Government will establish a specialist planning court with set deadlines to accelerate the handling of cases, take forward work to ensure that minor procedural claims are dealt with proportionally and allow appeals to “leapfrog” directly to the Supreme Court in a wider range of circumstances.

Development Benefits

The Government want to ensure that households benefit from development in their local area. Building on the measures already in place (including the neighbourhood funding element of the community infrastructure levy and the new homes bonus), the Government will work with industry, local authorities and other interested parties to develop a pilot passing a share of the benefits of development directly to individual households.

Planning System

The Government are taking further steps to speed up the town and country planning system.

The Government will consult on measures to improve plan making, including a statutory requirement to put a local plan in place.

The Government will legislate to treat planning conditions as approved where an authority has failed to discharge a condition on time, and will consult on legislative measures to strengthen the requirement for planning authorities to justify any conditions that must be discharged before building can start.

The Government will consult to reduce the number of applications where unnecessary statutory consultations occur and pilot a single point of contact for cases where conflicting advice is provided by key statutory consultees.

Nationally Significant Infrastructure Project Planning Review

The Government are today launching a review of the nationally significant infrastructure planning regime and are publishing a discussion document on making this regime even more effective.

The Government will freeze planning application fees for the nationally significant infrastructure planning regime for at least the remainder of this Parliament.

“Top 40” Planning Applications

To support the delivery of “ the top 40”, the Government will ensure where possible that these projects have the option to use the regime. These projects and programmes have been identified by Government as critical priorities for delivery and, while each application to use the nationally significant infrastructure regime must be considered on its merits, Government will have regard to this “top 40” designation in those considerations.

National Networks National Policy Statement

Alongside the national infrastructure plan the Government have published the National Networks National Policy Statement (NPS) for consultation and parliamentary scrutiny

UK Guarantee Scheme

The Government have agreed the terms of a UK Guarantee facility with the GLA to support up to £1 billion of borrowing for the construction of the Northern line extension to Battersea power station (subject to a satisfactory Transport and Works Act order). This in turn has facilitated a commercial agreement between the GLA, Transport for London and the developers at Battersea power station for the redevelopment of the site.

In addition the Government have approved a guarantee for a £10 million deal under the scheme to help provide finance for the installation of energy-saving lighting equipment across a portfolio of car parks managed and operated by National Car Parks Limited (NCP) resulting in a 60% reduction in energy consumption.

And the Government have confirmed that they have entered into a co-operation agreement with Hitachi and Horizon with the aim of being able to agree an in-principle guarantee by the end of 2016 to support the financing of a new nuclear power plant at Wylfa Newydd, subject to final due diligence and ministerial approval.

UK Insurance Growth Action Plan

As part of the Government’s “UK Insurance Growth Action Plan”, also published today, UK insurers have agreed to work alongside partners with the aim of delivering at least £25 billion of investment in UK infrastructure over the next five years, including, but not restricted to, projects in the published infrastructure pipeline.

Asset Sales

The Government have identified further assets with the potential for sale and the target for the sale of corporate and financial assets will be increased from £10 billion to £20 billion between 2014 and 2020.

Copies of the “National Infrastructure Plan 2013” will be available on the gov.uk website and have been deposited in the Libraries of both Houses.

Oral Answers to Questions

Danny Alexander Excerpts

Tuesday 5th November 2013 Commons Chamber

[Jason McCartney (Colne Valley) (Con)]

8. What recent steps he has taken to increase investment in infrastructure.

[The Chief Secretary to the Treasury (Danny Alexander)]

Investment in infrastructure is a key priority for this Government. In June, I set out a pipeline of investment in specific projects, worth over £100 billion out to 2020, including the largest investment in our railways since the Victorian era and the biggest investment in roads since the 1970s.

[Jason McCartney]

I welcome the support of my local Labour leader of Kirklees council for the new north-south railway, but does my right hon. Friend agree with the leader of Manchester council, who said that politicians need to stop taking cheap shots at HS2

“unless we want an increasingly disconnected North…slowly grinding to a halt”?

[Danny Alexander]

I wholeheartedly agree with those sentiments. My hon. Friend could have added to that list the leader of Nottingham city council, who said that the Labour Front Bench should get off the fence on HS2. The project is needed to promote growth, and connectivity outside London. I agree with that, and so should they.

[Robert Flello (Stoke-on-Trent South) (Lab)]

22. When the Chancellor talks about increased investment, is that what he meant to cover the £10 billion increase in the HS2 costs, which have gone up on his watch?

[Danny Alexander]

We set out in June the budget for HS2. We will absolutely stick to that budget. Using the excellent leadership we have brought in, with Sir David Higgins and others, we will make sure that the project is delivered under budget. The hon. Gentleman should be committed to the project because it will support growth all over the United Kingdom. It is the most significant investment in our railways for 100 years, and his party should support it.

[Andrew Griffiths (Burton) (Con)]

17. I refer the House to my entry in the Register of Members’ Financial Interests.I congratulate the Chancellor and his Government on their investment in infrastructure in the west midlands, which helped to deliver the Jaguar Land Rover plant, and thousands of manufacturing jobs in the process. I also draw the Minister’s attention to the A50, a key corridor in my constituency, connecting Stoke to Derby, which involves a number of manufacturing businesses that could hugely benefit from road improvements and infrastructure spending.

[Danny Alexander]

The hon. Gentleman is right that targeted infrastructure investment can unlock job creation in enterprise zones, including at JLR and in various places around the country. I am well aware of the particular scheme that he is promoting and I look forward to discussing it further with him to see how we can take it forward.

[Mr Geoffrey Robinson (Coventry North West) (Lab)]

The Chief Secretary will be aware that several conflicting and not very encouraging cost-benefit analyses for HS2 are currently in circulation. Could he not clear the air by commissioning and publishing a genuinely independent internal Treasury cost-benefit analysis of the project?

[Danny Alexander]

The Government have set out various cost-benefit analyses of the project. With respect to the hon. Gentleman, what is needed in this project is not more procrastination, delay and extra reports, but a commitment in all parts of the House to get on with this north-south railway and allow economic growth in every part of the United Kingdom.

[John Howell (Henley) (Con)]

9. What recent fiscal steps he has taken to support small businesses.

--- Later in debate ---

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

12. What recent assessment he has made of the effect of fiscal policy on the level of youth unemployment.

[The Chief Secretary to the Treasury (Danny Alexander)]

The UK labour market is showing some signs of recovery. Youth unemployment, excluding those in full-time education, fell over the last quarter and the number of young people claiming jobseeker’s allowance is lower now than it was in 2010. The Government are committed to supporting long-term unemployed young people, which is why we launched the Youth Contract in 2012 and why we have increased the number of apprenticeships, with over 1 million starts so far.

[Bridget Phillipson]

The Chief Secretary refers to the Youth Contract, but does he not accept the assessment of the Government’s own social mobility adviser that it is having a limited impact on the

“appallingly high levels of youth unemployment”?

[Danny Alexander]

I certainly accept that there is a great deal more that we have to do to get people off benefit and into work, but if the hon. Lady looks at the work experience programme within the Youth Contract, she will see that it is having a significant effect on the number of young people getting off benefit and into work, and at one 20th of the cost of the future jobs fund, which I think is good value for money.

[George Freeman (Mid Norfolk) (Con)]

Is not the single most important measure we can take to tackle youth unemployment the creation of jobs? I therefore welcome the creation of over 1.5 million new jobs and 600,000 new apprenticeships and the news that last year this country had more small businesses than ever before. Does that not show that we have a Government who are seriously tackling youth unemployment, after it rose for 13 years?

[Danny Alexander]

My hon. Friend is right. In fact, there are now more people in work, including more women, than ever before in our country’s history, and there are now more households in which someone works than in any year under the previous Government. There is a lot more to do, but that is a record to be proud of.

[David Mowat (Warrington South) (Con)]

13. What representations he has received on Yorkshire bank and lending to small and medium-sized businesses.

--- Later in debate ---

[Ms Margaret Ritchie (South Down) (SDLP)]

What progress has been made on the extension to the fuel duty rebate scheme, which is due for further implementation via a submission to the European Commission?

[The Chief Secretary to the Treasury (Danny Alexander)]

We have completed a call for evidence on that subject and have put forward an initial list of locations that meet the strict criteria that are required to make a successful application at the European level. Further work is needed to ensure that we have all the information that is necessary to submit the application. That will be the subject of a supplementary piece of work and we will submit the application early in the new year.

--- Later in debate ---

[Ian Swales (Redcar) (LD)]

Companies up and down the country have been investing in manufacturing capacity for the green infrastructure of tomorrow. Those in the north-east Energi Coast consortium have already invested £400 million. Will the Chancellor confirm the Government’s commitment to support the renewable energy industry?

[Danny Alexander]

I am grateful to my hon. Friend for the question, and I congratulate him on his new appointment in this House. I can reassure him on his point. We are, of course, looking at the range of support that exists in terms of people’s energy bills, but we will not compromise on our commitment to renewable energy and green infrastructure investment. That means we remain absolutely committed to the renewables obligations and the contracts for difference, and that will not change as part of this process.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

The Institute for Fiscal Studies estimates that more than 1 million more children will be living in poverty in 2020, which absolutely wipes out the number of those lifted out of poverty under the previous Labour Government.

--- Later in debate ---

[Sir Malcolm Bruce (Gordon) (LD)]

If Scotland chooses to vote for independence next September, how will handing over control of the Scottish economy to a foreign bank, namely the Bank of England, benefit Scotland’s economy?

[Danny Alexander]

My right hon. Friend makes an important point. It would be very foolish indeed for anyone to vote for independence on the basis that Scotland will keep the pound. It is highly unlikely that a currency union would be workable, and therefore highly unlikely that any euro-style arrangement for the UK would be in the best interests of either Scotland or the rest of the UK. The only way to be sure of keeping the pound is to keep the UK together.

[Several hon. Members]

rose—

Infrastructure Guarantees

Danny Alexander Excerpts

Tuesday 22nd October 2013 Written Statements

[The Chief Secretary to the Treasury (Danny Alexander)]

UK Guarantees was announced in July 2012 with enabling legislation, the Infrastructure (Financial Assistance) Act 2012, receiving Royal Assent on 31 October 2012.

Today I am announcing that 40 projects, worth £33 billion, are now “prequalified” for the UK Guarantees scheme. A robust assessment and due diligence process is required before final approval of a guarantee can be given, but this means that these projects are eligible for support. The Government have already announced that the guarantee scheme is being offered to help support the Northern line extension, the Mersey gateway bridge and Hinkley Point C. In addition, the following projects have agreed to be listed on the gov.uk website:

Able Marine Energy Park, Humberside

Chinook Energy—Renewable Energy from Waste

Countesswells Development, Aberdeen

Five Quarter Energy Holdings Limited—Deep Gas Winning

Gasrec plant and refuelling stations

Melius Energy—Avonmouth biomass power generation

Intergen UK Development Ltd—Gateway Energy Centre

Intergen UK Development Ltd—Spalding Expansion

Islandmagee Gas Storage Facility

Neart na Gaoithe Windfarm

Tilbury Green Power—waste wood-fired power generation

University of Northampton

University of Roehampton

In April 2013, the Government approved a guarantee for £75 million to Drax Finance Ltd to finance the partial conversion of a coal-fired power station to biomass.

UK Guarantees was launched to address constraints in the long-term debt markets by providing a sovereign-backed guarantee to help infrastructure projects raise debt finance. In exchange for a guarantee the borrower will pay a fee, determined by the nature of the guarantee and the risks inherent in the project. Guarantees for up to £40 billion in aggregate can be offered under the initiative.

The Government will report to Parliament on the financial assistance given as guarantees in line with the requirements set out in the Infrastructure (Financial Assistance) Act 2012.

Public Service Pension Reform

Danny Alexander Excerpts

Tuesday 8th October 2013 Written Statements

[The Chief Secretary to the Treasury (Danny Alexander)]

The interim report of the Independent Public Service Pensions Commission (IPSPC) found that current pension structures, combined with fair deal requirements, are a barrier to plurality of public service provision. The Government announced at the spending review 2010 that they would accept the suggestion to review the fair deal policy.

The Government confirmed via a written ministerial statement on 4 July 2012, Official Report, column 53WS, that the overall approach to the fair deal would be retained, but that this would be delivered by offering access to the public service schemes for staff compulsorily transferred out of the public sector. In November 2012 the Government published their response to the consultation which set out their position in more detail.

On publishing the consultation response in November 2012 the Government announced a further consultation to seek views on how the reformed fair deal policy should apply to staff that have already been compulsorily transferred out of the public sector under the old fair deal.

The consultation process has now concluded. When existing contracts are retendered, there will be a presumption that staff covered by the fair deal policy should be offered access to a public service scheme. However, we will provide flexibility for employers to provide a broadly comparable scheme where—but only where—legal requirements are a bar to providing access to a public service scheme. The Government expect that in the vast majority of cases, when a contract is retendered, previously transferred staff will be offered access to a public service pension scheme.

Yesterday I published both the response to the consultation on retendering of existing contracts, and new guidance setting out how the reformed policy will operate. Both documents are available at the link:

https://www.gov.uk/government/consultations/further-consultation-on-the-fair-deal-policy.

The Government are grateful to all those who responded to the consultation and assisted with reform. The new approach to fair deal will ensure that staff compulsorily transferred out of the public sector will continue to have access to good quality pensions. It will also achieve better value for money for the taxpayer by reducing the costs and risks to employers associated with the provision of broadly comparable pension schemes, thereby opening public services to greater competition.

I am placing a copy of the consultation response on retendering and the new fair deal guidance in the Libraries of both Houses.

Scotland Analysis

Danny Alexander Excerpts

Tuesday 3rd September 2013 Written Statements

[The Chief Secretary to the Treasury (Danny Alexander)]

The Government have published the fifth paper in the Scotland analysis programme. This series of publications is designed to inform the debate on Scotland’s future within the United Kingdom ahead of next year’s referendum.

“Scotland analysis: Macroeconomic and fiscal performance” looks at Scotland’s economic performance and finds that, as part of the UK, Scotland is outperforming most other parts of the country and its performance is comparable to many other independent European countries as a result of the benefits of deep economic integration with the rest of the UK.

These benefits include free access to the larger UK market, a common regulatory framework, integrated supply chains and a highly flexible labour market. As a result, Scottish companies trade more goods and services with the rest of the UK than with the rest of the world, exporting £36 billion of goods and services to the rest of the UK. Flexible labour movement between Scotland and the rest of the UK allows businesses to recruit the best people from across the whole UK, and the benefits of being part of the UK have made Scotland an attractive destination for foreign investment.

The paper finds that the absence of a border is key for economic integration. Even where free trade agreements exist and physical borders are weak, neighbouring countries with similar economies are affected by the presence of a border. The analysis finds, for example, that that trade between the US and Canada is thought to be 44% lower than it could be as a result of the border between them. Canadian provinces trade around 20 times more with one another than with US states of a similar size and proximity, despite a free trade agreement between Canada and the US. Labour migration between Scotland and the rest of the UK is also estimated to be as much as 75% higher within an integrated UK, allowing the sharing of skills and knowledge.

The UK’s diverse economy protects Scotland from economic shocks and the volatility of oil prices. An integrated UK and a broader and more diverse tax base helps to maintain the stability of public spending in Scotland and smooth the impact of volatile sources of revenue, such as North Sea oil and gas.

The paper shows that since 1999, Scotland’s onshore economy has generated 8.3% of the UK’s tax receipts, while at the same time Scotland has received an average of 9.4% of UK public spending. Relative to the UK generating and spending £100, this means that Scotland’s onshore economy has generated £98 for the UK Exchequer, while receiving £112 of public spending.

Integration is at the heart of the UK’s current economic and fiscal union. Independence would fundamentally transform and fragment this relationship, ending the pooling of resources and risk-sharing between Scotland and the rest of the UK, and erecting a border where one does not currently exist. Research in the paper concludes that remaining part of the borderless United Kingdom could boost real incomes in Scotland by as much as 4% after 30 years, equivalent to £5 billion in 2012 prices or £2000 per household, compared to the outlook if Scotland were to become independent.

Future papers from the Scotland analysis programme will be published over the course of 2013 and 2014 to ensure that people in Scotland have access to the facts and information ahead of the referendum.

Commission on Devolution in Wales

Danny Alexander Excerpts

Wednesday 17th July 2013 Written Statements

[The Chief Secretary to the Treasury (Danny Alexander)]

The first report of the Commission on Devolution in Wales made 33 recommendations to increase the financial accountability of the National Assembly for Wales and the Welsh Government.

After careful consideration of the commission’s recommendations, the Government recognise that the Assembly’s financial accountability and autonomy would be enhanced if it was funded through a combination of block grant and self-financing.

However, the Government wish to consult with business on the potential impacts of devolving stamp duty land tax (SDLT) to the Assembly in advance of making a full response to the commission’s first report.

The commission’s first report included the recommendation that SDLT

“should be devolved to the Welsh Government with Welsh Ministers given control over all aspects of the tax in Wales”.

Further to the commission’s analysis underpinning their report and the Government’s subsequent assessment of its recommendation, the Government would like to seek further views, especially from business, on devolving SDLT. In particular, the aim would be to understand the potential impacts on the construction industry and housing market given the populous border between Wales and England.

Based on the outcome of this short and targeted consultation, the Government will make their response to the commission’s recommendations. The Government will also set out how this can help, including through looking at the Welsh Government having early access to borrowing, to support a funding solution for the M4 improvement scheme in south Wales.

Fiscal Sustainability

Danny Alexander Excerpts

Wednesday 17th July 2013 Written Statements

[The Chief Secretary to the Treasury (Danny Alexander)]

Today the independent Office for Budget Responsibility (OBR) published its third fiscal sustainability report (FSR). This document meets its requirement to prepare an analysis of the sustainability of the public finances each financial year, and provides an important insight into the state of the public finances taking into account the significant impact of demographic change. The report was laid before Parliament earlier today and copies are available in the Vote Office and Printed Paper Office.

The OBR/FSR projections show that public sector net debt is expected to fall to a trough of 66% of GDP in the early 2030s, before rising to reach 99% of GDP in 2062-63 in the absence of further policy change. The FSR shows that, without additional policy change, an ageing population is projected to increase age-related spending by 4.4% of GDP between 2017-18 and 2062-63, as health, social care and pension expenditure become an ever larger proportion of total public spending and the economy.

The FSR also examines the long-term sustainability of Government revenues. As in previous years, the OBR projects that oil and gas revenues will decline markedly over the coming decades. Updated projections show revenues declining from 0.4% of GDP this year to 0.03% of GDP in 2040-41, with total revenues over the projection period revised down by £11 billion. The OBR consider the impact of alternative scenarios for oil and gas prices and for production and conclude that revenues will fall below 0.1% of GDP in the coming decades, even in these more optimistic scenarios.

The Government are committed both to strengthening our fiscal position now and making it sustainable for the long term. The OBR analysis makes it clear that the Government’s medium-term consolidation plan is essential to restoring long-term sustainability of the public finances. A deterioration in the primary balance in 2017-18 worth 1% of GDP could increase projected public sector net debt in 2062-63 to around 150% of GDP. The OBR discusses the impact of changes to policy on their long-term projections. They show that excluding policy changes announced since the 2012 FSR, public sector net debt would have been projected to be around 50% of GDP higher by 2062-63. They identify the additional spending reductions announced for 2017-18 as one of the key factors in containing the growth of spending over the long-term, demonstrating the importance of the Government’s programme of fiscal consolidation for the long-term health of the public finances.

The FSR presents long-term projections of state pension expenditure including the Government’s new single tier state pension. The single-tier reforms will restructure current expenditure on the state pension into a simple flat-rate amount, to provide clarity and confidence to better support saving for retirement. This reform will cost no more than the current system.

The single tier reforms will complement the bold measures already taken by this Government to improve the sustainability of UK pension systems. Bringing forward the increase in the state pension age to 66 to 2020 is expected to deliver savings of around £30 billion while bringing forward the increase to 67 to 2028 is expected to deliver savings of around £70 billion. Further, the Government have set out their plans to consider future changes to the state pension age in a more regular and structured manner, ensuring that the state pension age keeps pace with changing demographics and putting state pension expenditure on a more sustainable footing.

Together, single tier and state pension age reform will provide individuals with greater certainty about their retirement income and ensure a more sustainable system which represents a fair outcome across generations. This provides a solid foundation upon which individuals can plan for their retirement.

Reform of the state pension comes alongside the Government’s reforms to public service pensions. The Government have set out a package of reforms to rebalance taxpayer and member contributions in the short term, and to ensure that costs are sustainable and fair in the long term. The new scheme designs, rebalancing of contributions between members and the taxpayer, and switch to uprating by the consumer price index (CPI) are forecast to save £430 billion over the next 50 years.

The OBR’s report also focuses on the pressures of an ageing population on social care spending, and the projections reflect for the first time the impact of the historic reforms to social care funding announced earlier this year. The Government will introduce a cap on lifetime care costs, greater means-tested support for residential care and deferred payments, so that nobody faces unlimited care costs, more people get support with their residential care costs sooner, and nobody is forced to sell their home in their lifetime to pay for residential care. The Government are also taking action to deliver better, more efficient care. For example, the spending round set out radical plans to create a £3.8 billion pooled budget shared across health and care, to deliver more integrated services, which we expect to manage down pressures across both services.

Trident Alternatives Review

Danny Alexander Excerpts

Wednesday 17th July 2013 Commons Chamber

[The Chief Secretary to the Treasury (Danny Alexander)]

I beg to move,

That this House has considered the Trident Alternatives Review.

Thank you, Mr Speaker; I shall certainly do as you say. I will also tailor the number of interventions I take to meet your invocation.

Yesterday, the Prime Minister and the Deputy Prime Minister published the Trident alternatives review—the most thorough review of nuclear weapon systems and postures that the UK has undertaken for decades, and the most comprehensive analysis ever made public. For the first time in a generation—

[Dr Julian Lewis (New Forest East) (Con)]

rose—

[Danny Alexander]

I will make some progress before giving way.

For the first time in a generation, the Trident alternatives review shows that there are credible and viable alternatives to the United Kingdom’s current approach to nuclear deterrence. A different approach would allow the UK to contribute meaningfully to the new multilateral drive for disarmament initiated by President Obama, while maintaining our national security and our ultimate insurance policy against future threats.

[Caroline Lucas (Brighton, Pavilion) (Green)]

rose—

[Mr John Baron (Basildon and Billericay) (Con)]

rose—

[Danny Alexander]

I will take some interventions later, but in the light of what Mr Speaker has said, I will make some progress.

A different approach could allow long-term savings—about £4 billion over the life of the system—to be made against current plans. Let me be clear: this does not change current Government policy to maintain Britain’s nuclear deterrent and prepare for a successor system. It does mean that we can at last have an open and much more informed debate about what our nuclear weapons are for and how they should be deployed—a debate that provides our country with a chance to change course before the main-gate decision for a successor system is taken in 2016.

[Dr Julian Lewis]

I am grateful to the Chief Secretary for giving way. He says this is the most comprehensive examination for many years—that is open to question—but will he explain why it considered only the four-boat and three-boat options for Trident, not the two-boat options that the Liberal Democrats plan to put to their conference as Liberal Democrat policy?

--- Later in debate ---

[Danny Alexander]

My hon. Friend will have a chance to see the proposed Liberal Democrat policy paper when it is published in a few weeks’ time. The purpose of this debate is to consider the Trident alternatives review.

[Caroline Lucas]

On the review’s comprehensive nature, does the right hon. Gentleman not agree that a review that fails even to consider the option of not replacing Trident at all and having no nuclear submarines is ultimately flawed? Decades after the cold war and in the midst of austerity, the key question that has to be asked is whether Britain needs a nuclear submarine system that will cost us £100 billion over the next 30 years.

[Danny Alexander]

That is of course a legitimate point for political debate, but the purpose of the review was to consider alternative nuclear weapon systems that could act as a deterrent. The review was never designed to consider the option of unilateral disarmament, although the hon. Lady is free to argue for that.

[Mr Bob Ainsworth (Coventry North East) (Lab)]

rose—

[Danny Alexander]

I give way to the former Secretary of State.

[Mr Ainsworth]

If this was the most comprehensive examination of our nuclear weapons system in a generation, why did the right hon. Gentleman not take evidence from individuals outside government?

[Danny Alexander]

It was a review conducted within government, taking advice from senior officials, as with every other government review. Indeed, the right hon. Gentleman has been involved in such reviews in the past, and I am sure he knows better.

[Mr Baron]

rose—

[Mr Tobias Ellwood (Bournemouth East) (Con)]

rose—

[Danny Alexander]

I will take one more intervention and then make some progress.

[Mr Ellwood]

I am grateful to the right hon. Gentleman for coming to the Chamber today. He says this is the most comprehensive review we have had. That is open to question, but is he saying that after a two-year study we still do not know what the Liberal Democrat position is on this important subject?

[Danny Alexander]

I am here to set out the details of the review. Those are the terms of the debate today. I will set out my own views in the course of my speech, if my hon. Friend will allow me time to get on with it.

[Mr Arbuthnot]

rose—

[Danny Alexander]

I will, however, give way to the Chairman of the Select Committee first.

[Mr Arbuthnot]

I am grateful to the Chief Secretary. I am trying to take this document seriously, but I am having some difficulty, not least because of the removal by my right hon. Friend the Deputy Prime Minister of the excellent Liberal Democrat Minister from the Ministry of Defence, which shows something of his party’s attitude towards defence. Does the Chief Secretary to the Treasury accept that his policy would destroy the submarine building industry of this country?

[Danny Alexander]

No, I certainly do not accept that, but I join my right hon. Friend in paying tribute to my hon. Friend the Member for North Devon (Sir Nick Harvey), who made an enormous contribution to this review.

[Several hon. Members]

rose—

[Danny Alexander]

I will take one more intervention, then I will make some progress.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

I very much appreciate the Chief Secretary to the Treasury giving way. Further to the point on the submarine building industry, and in relation to the £4 billion saving that he has just mentioned, does he accept that chart 2 on page 42 of the document includes the platform, the missile, the infrastructure, the warhead and the policy change costs, but does not include the cost of bringing forward the next submarine project to plug the gap in the Barrow shipyard’s order book? That omission could cripple submarine building in this country for ever.

[Danny Alexander]

One of the review’s assumptions is that we would wish to maintain our sovereign submarine building capability. That is the policy of the Government and it sounds as though it is the hon. Gentleman’s policy, too—[Interruption.] If hon. Members will calm down for a second, I will tell them that it does include the cost of maintaining that capability. All the alternatives include the procurement of further submarines after the successor.

As the House knows, the review was commissioned by the Prime Minister and Deputy Prime Minister, initially with my hon. Friend the Member for North Devon as the Minister in charge. My hon. Friend deserves a huge share of the credit for this work. It has been taken forward under the auspices of the Cabinet Office, with a cross-government team of expert civilian and military officials. I should like to take this opportunity to thank them for their hard work.

During my visits to Aldermaston, Faslane and Coulport as part of the review, I had the privilege of meeting many of the submariners of the Royal Navy, as well as the scientists, engineers and other civilians who support them. They are some of Britain’s hidden heroes, often unsung, who operate at the limits of human understanding. Seeing them in action also gives me confidence that if the next Government were to change their mission, they would deliver it just as effectively, and in the most efficient and credible way. The review will provide the opportunity to do that.

As I said in response to an earlier intervention, it is also important to be clear what the review was not about. First, it was not about short-term savings to help to deal with the current deficit. It is possible under some of the options that savings against current plans would start to accrue from the mid-2020s, but this is not about back-filling budgets in the next Parliament. As I also said earlier, the review has not addressed the question of whether the UK should remain a nuclear weapon power, because complete unilateral disarmament is not the policy of either the Conservative party or the Liberal Democrats—or, indeed, of Labour. The review did not seek to address the question of whether we should possess nuclear weapons. However, the scale and posture of our nuclear weapon capability can change.

[Mr Baron]

Many of us who believe that a continuous-at-sea nuclear deterrent is absolutely essential, and that anything else involves living in cloud cuckoo land, also believe that we should honour those who were in at the very beginning of our nuclear arms age—the British nuclear test veterans. The British Nuclear Test Veterans Association and many parliamentarians from both sides of the House have come together to campaign for recognition for the veterans. We have written to the Prime Minister and had meetings with Ministers. Will the Government look again at the campaign, because we rank very lowly on the international table of decency on this issue—

[Madam Deputy Speaker (Dawn Primarolo)]

Order. The hon. Gentleman’s intervention has gone on for too long.

[Danny Alexander]

I certainly hear the point my hon. Friend is making. The veterans clearly played an important role in the development of the deterrent, and I am sure that the Under-Secretary of State for Defence, my hon. Friend the Member for Ludlow (Mr Dunne), who is going to reply to the debate, will be able to add something more on that in his comments.

The review was tasked to answer three questions. First, are there credible alternatives to submarine-based deterrence; secondly, are there credible submarine-based alternatives to the current proposal; and, thirdly, are there alternative nuclear postures that could maintain credibility? The review has been thorough, detailed, extensive and objective. The analysis looks in detail at specific combinations of platform, delivery vehicle and warhead design, but excludes technologies that could not be ready by 2035. Variants of the current successor programme are included.

As for alternative platforms, the review considered large aircraft, combat jets, surface ships and multiple types of submarine, including those with a dual role. As for alternative delivery systems, the final analysis was focused on two types of potential future cruise missile—a subsonic stealthy cruise missile and a supersonic cruise missile, each carrying one warhead. Warhead design issues were considered and were important in the review.

An assessment of our ability to deliver alternative options showed that producing the warhead and its integration into a cruise missile or bomb would be the critical challenge. The reality is that the UK nuclear warhead programme is highly optimised around producing and maintaining warheads for the Trident missile. The review found that moving towards an alternative would add technical, financial and schedule risk to the programme. Delivering a warhead for an alternative system would therefore take at least 24 years—deliverable with some risk by about 2040. The crucial point is that the review judged this warhead time scale to be longer than the Vanguard submarines can safely be operated for. There are, of course, options to bridge the gap, but when we look at the cost of alternative systems, it becomes clear that each cruise missile-based option includes an extra £10 billion on its price tag because of the need to bridge the gap.

The bottom line is this, and I quote from the review:

“The analysis has shown that there are alternatives to Trident that would enable the UK to be capable of inflicting significant damage such that most potential adversaries around the world would be deterred.”

The analysis shows that cruise missile-based options are militarily credible, but, because of the gap, my conclusion is that a replacement nuclear deterrent based on the current Trident system is the most cost-effective for the period we are considering.

[Mr Julian Brazier (Canterbury) (Con)]

I am most grateful to my right hon. Friend for giving way and I welcome his conclusion on submarines, but will he accept that continuous-at-sea deterrence is rather like pregnancy—nature admits of no middle position?

[Danny Alexander]

I will come to that, but I do not accept the point; that may be an accurate description of pregnancy, but not of deterrent postures.

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

I want to come back to the right hon. Gentleman’s analysis of the threat. Does he agree with President Obama who said in Prague that

“the threat of global nuclear war has gone down, but the risk of a nuclear attack has gone up”?

[Danny Alexander]

I agree with many of the things President Obama has said, including in his recent Berlin speech. I would point the hon. Lady, however, to the Government’s own threat assessment in the strategic security and defence review, which says that state-on-state nuclear attacks are a tier 2 threat. I will come to the threat analysis in a moment.

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

This is the nub of matter. That is just one threat assessment, but no serious conflict with which this country has been involved over decades—extending even to the second world war—has been expected. Wars are unexpected, so why does the right hon. Gentleman rest any assurance on a single threat assessment? How does he know that that threat assessment will not have to be changed in a few days’ time, let alone in 10 or 20 years?

[Danny Alexander]

I will address that point as I move through my speech, although I am glad to have taken my hon. Friend’s intervention. All I would say is that the degree of readiness of our conventional weapons and forces is scaled to the threats of the time, and my precise proposal is that we could adopt a similar approach here.

[Sir Menzies Campbell (North East Fife) (LD)]

In assessing the contribution of President Obama to this debate, will my right hon. Friend take into account the fact that the United States is intending to reduce its fleet of submarines carrying Trident missiles from 18 to 12, and that the Berlin speech was the second time that President Obama has argued very strongly for multilateral nuclear disarmament?

[Danny Alexander]

I entirely agree. I applaud President Obama’s leadership of the disarmament debate. I think that the review gives the United Kingdom an opportunity to contribute further both to disarmament and to the global movement towards the de-alerting of our nuclear weapons.

[Jeremy Corbyn (Islington North) (Lab)]

Will the right hon. Gentleman give way?

[Danny Alexander]

No, I will not. I will give way later, but I want to make some progress first.

The review presents a much greater opportunity for change and the consideration of alternative postures, and that in turn presents the possibility of maintaining our nuclear deterrent capability with fewer submarines. This is where the real opportunity resides for making long-term savings, for recalibrating our policy to the requirements of our ages, and—as we just heard from my right hon. and learned Friend the Member for North East Fife (Sir Menzies Campbell)—for contributing to nuclear disarmament.

Analysis of the national security strategy confirms the position adopted by successive Governments that

“no state currently has both the intent and the capability to threaten the independence or integrity of the UK. But we cannot dismiss the possibility that a major direct nuclear threat to the UK might re-emerge.”

With no hostile backdrop and a surprise attack against the UK highly unlikely, the United Kingdom could adopt a number of viable and credible alternative postures while maintaining a nuclear deterrence capability that meets the needs of national security.

The review demonstrates that our current nuclear posture of continuous-at-sea deterrence is not the only one available. Let me briefly describe four of the alternative postures that were considered in the review, from highest to lowest readiness. Each of them represents a different rung on the nuclear ladder, with CASD at the top.

A posture of focused deterrence would maintain a continuous nuclear deterrent for a specific period in response to a specific threat. At all other times, the system could adopt a reduced readiness level. We considered three options for reduced readiness. A so-called sustained-deterrence posture would mean regular patrols that maintained deterrence capability, but the number of platforms could be reduced. A responsive posture would allow gaps of irregular frequency and length between deployment, so that a potential adversary could not predict when and for how long a gap in deployment might occur. A posture of preserved deterrence would hold forces at low readiness. Under preserved deterrence, no platforms would be regularly deployed, but the UK would maintain the ability to deploy if the context changed.

The review clearly demonstrates that the concept of a ladder of nuclear capability and readiness is viable and credible, and that there are a number of options for taking steps down the rungs without getting off altogether.

[David T. C. Davies (Monmouth) (Con)]

Will the right hon. Gentleman give way?

--- Later in debate ---

[Danny Alexander]

I will happily give way after I have made a bit more progress.

According to the review’s description of alternative postures, those options could include operating fewer Vanguard submarines, ending CASD for less frequent patrols, and unarmed patrols.

Of course, coming down the ladder depends on judgments that we make about future threats and our legal and international obligations. I should make it clear that adopting a non-continuous posture means accepting a different calculation of risk from that which existed during the cold war. However, I consider it imperative for us to update our calculation of risk. If CASD is an insurance policy, we are paying too high a premium for our needs.

[Dr Liam Fox (North Somerset) (Con)]

Will my right hon. Friend give way?

[Danny Alexander]

I am going to make some more progress.

The 2010 national security strategy considers state-on-state nuclear war to be a second-tier threat. The argument that a current adversary would take the opportunity to target the UK during a period when no boat is covertly deployed and to launch an overwhelming nuclear strike against Britain is not supported by any analysis that I have seen.

[Dr Fox]

Will my right hon. Friend give way on that point?

[Danny Alexander]

I am going to make some progress—oh, I am sorry. I will give way to the former Defence Secretary.

[Dr Fox]

What level of threat assessment would require us to go back up the ladder and reinstate CASD, and how quickly could that be done if it had been abandoned at this point?

[Danny Alexander]

As my right hon. Friend will know, the first question is a matter of political judgment for the Government of the day. As for the second, it would depend on which of the alternative postures was adopted. They would all be designed to allow us to surge back to the so-called focused deterrence, which would sustain a continuous posture in response to our needs.

The reality is that in the current circumstances, and for the foreseeable future, the ultimate guarantee does not need to sit on a hair trigger. We can afford to go much further in de-alerting our nuclear deterrent. The option of non-continuous deterrence does not threaten current security, and by changing postures we can reduce cost at the same time. For example, ending CASD and procuring one fewer successor submarine would make a saving of about £4 billion over the life of the system.

[Jeremy Corbyn]

May I put a simple question to the right hon. Gentleman? In what circumstances would he envisage the use of nuclear weapons, and the problems that would follow as a result of their use?

[Danny Alexander]

The whole purpose of nuclear deterrents is to deter their use.

The judgment must be made about where on the ladder we believe that it is credible to stand, provided that the ability to scale up or down as threats change and the momentum of proliferation on the one hand and disarmament on the other shift. As a recognised nuclear weapon state under the non-proliferation treaty, we have an obligation to move towards a world in which nuclear weapons are no longer part of state security and defence postures. It is true that Britain has made significant steps since the cold war in disarmament terms. Some would argue that Britain has done its bit for disarmament and we have reached the minimum level possible. That argument has been deployed at every point at which we have scaled down over the past 20 years, but each time it has proven not to be true. The next step down the ladder is to reduce the salience of nuclear weapons in our defence policy itself, which means accepting that a cold-war-style continuous deterrent has become unnecessary.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

If the right hon. Gentleman accepts that the UK will have a non-continuous deterrent, it means that there will be times when the UK does not have an active deterrent. Why then did he rule out the option, at least, of not continuing with the deterrent programme at all?

[Danny Alexander]

I do not accept the premise of the hon. Gentleman’s question and I have answered the substance of it in answer to an earlier intervention.

[David T. C. Davies]

Surely we either have a full-time deterrent or we do not. If we do not have one, we might as well stand as high as we possibly can on the ladder so that our enemies can see the white flag that we will need to wave at them.

[Danny Alexander]

I am afraid that my hon. Friend has clearly not been listening to the analysis or read the review. Just last month, in Berlin, President Obama called for movement beyond the “cold war nuclear postures” and announced a major reduction in the US nuclear arsenal. It is my hope that in the next Parliament the UK will answer that call with a serious consideration of ending continuous nuclear deterrence.

The review is the most comprehensive study on nuclear weapon platforms and postures ever published by the UK Government. I believe that as large numbers of nuclear weapons remain and the risk of proliferation continues, it is right that the UK retains a nuclear capability for as long as the global security situation makes that necessary. But I also believe that that capability should be scaled and deployed to meet the threat we face now, and held as a contingency to deal with the threats we may face in the future. We should seek to balance the costs of this insurance policy against the other needs of defence and, indeed, other priorities across government.

The conclusion I draw from the Trident alternatives review is that although alternatives exist, there is no new system available before the lives of the current Vanguard submarines come to an end to meet those criteria. But a step down the ladder is available: ending 24-hour patrols when we do not need them and procuring fewer successor submarines, moving on from an outdated cold war concept of deterrence to one fit for the world we inhabit now. For the remainder of this Parliament the coalition Government’s policy will remain exactly as set out in the strategic defence and security review. We will maintain the deterrent as it is, and preparations for a successor system will continue. But the final main-gate decision on whether to proceed with a like-for-like replacement of Trident will be made in 2016, after the next general election. It is therefore up to the different political parties in this House to decide the positions they will take before that time. For the country, I hope that the publication of this review will mark the start of a national debate on one of the most profound questions of our time, and I commend the Trident alternatives review to the House.

--- Later in debate ---

[Mr Jones]

As my right hon. Friend reminds me, we also consulted on the issue and did not conduct our review behind closed doors, as was the case with this one.

We also believe that the best way to deliver the nuclear deterrent is through a continuous-at-sea deterrent. The review does not appear to suggest anything to the contrary. In fact, it reinforces our point.

[Danny Alexander]

How much longer have you got?

[Mr Jones]

The Chief Secretary asks how much longer I have left. It is taking time to get through the nonsense he has come up with, but I will draw my remarks to a conclusion. I know that this is not very comfortable for the Chief Secretary, but he is going to have to sit there and listen.