Oral Answers to Questions
Debate between Ed Balls and Lord Cameron of Chipping Norton(9 years, 9 months ago)
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The Prime Minister
I am very much looking forward to explaining how our long-term economic plan will really benefit and continue to benefit Yorkshire and north-east Lincolnshire. My hon. Friend is absolutely right: we have got employment up by 114,000 since the election; private sector employment is up by almost 200,000 since the election. [Interruption.]
The Prime Minister
The shadow Chancellor says come to Morley and Outwood. Believe me, I will be there, and I am afraid to say I have a plan to increase unemployment in that constituency by one, to give him a bit more time to remember a single business man who supports him.
Oral Answers to Questions
Debate between Ed Balls and Lord Cameron of Chipping Norton(11 years, 5 months ago)
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The Prime Minister
My hon. Friend makes a good point. It is this Government who are putting aggressive tax avoidance at the heart of the G8 agenda, and what do we hear this week from the Labour party? It gives tax avoidance advice to its donors. That is what it has been doing: £700,000 of tax has been avoided because of what Labour advised its donor to do.
Oral Answers to Questions
Debate between Ed Balls and Lord Cameron of Chipping Norton(11 years, 9 months ago)
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The Prime Minister
I will look at any individual case, and the Department for Work and Pensions will look at any individual case, but may I first make the point that this is not a tax? A tax is when someone earns money, it is their money, and the Government take some of it away. Frankly, the Opposition have got to engage with the fact that housing benefit now accounts for £23 billion of Government spending. That is a 50% increase over the last decade. We also have to address the fact that we have 250,000 families in overcrowded accommodation and we have 1.8 million people waiting for a council house.
The Prime Minister
The right hon. Gentleman is shouting “Shameful”, but let him listen to what Labour’s Housing Minister in the last Government, the hon. Member for Hartlepool (Mr Wright), said:
“We have reiterated time and again in this Committee the need to ensure that houses that are too large for people’s current needs are allocated accordingly.”––[Official Report, Housing and Regeneration Public Bill Committee, 31 January 2008; c. 697.]
That is what Labour said in Government. Now that it is in opposition, all we get is rank opportunism and irresponsibility.
European Council
Debate between Ed Balls and Lord Cameron of Chipping Norton(11 years, 9 months ago)
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The Prime Minister (Mr David Cameron)
I am sure the whole House will join me in sending our best wishes to Pope Benedict following his announcement today. He has worked tirelessly to strengthen Britain’s relations with the Holy See and his visit to Britain in 2010 is remembered with great respect and affection. Pope Benedict’s message on that visit—of working for the common good—is something that spoke to our whole country, and I am sure his successor will continue to provide a voice of inspiration for millions around the world.
Last week’s European Council agreed the overall limit on EU spending for the next seven years, starting in 2014. When these multi-year deals have been agreed in the past, spending has gone up, but last week we agreed that spending should come down. By working with like-minded allies, we delivered a real-terms cut in what Brussels can spend for the first time in history. As the House knows, the EU budget is negotiated annually, so what we were negotiating—initially at the Council last November and again last week—was not the individual annual budgets, but rather the overall framework for the next seven years. This includes the overall ceilings on what can be spent—effectively, the limit on the European Union’s credit card for the next seven years.
During the last negotiation, which covered the period 2007 to 2013, the last Government agreed to an 8% increase in the payments ceiling, to €943 billion. Put simply, this gave the EU a credit card with a higher limit, and today we are still living with the results of allowing the EU’s big spenders to push for more and more spending each year.
In fact, only last year, while member states were having to make tough decisions to tighten their belts at home, the big spenders succeeded in increasing the 2012 European budget by another 5% compared with the previous year. If no deal had been reached, the existing ceilings would have been rolled over and annual budgets could have continued to soar for the next seven years. Because annual budgets are negotiated by qualified majority voting, it can be difficult to constrain spending in these annual negotiations. By contrast, the seven-year limits are agreed by unanimity, so this was our chance to get the ceilings down in line with what could be afforded.
The European Commission produced an initial proposal for increasing the payments ceiling still further to €988 billion. This was strongly supported by a number of member states. The first negotiation took place at the Council in November, and although the President did then reduce this during the Council itself, it was still some way short of the real-terms cut we were looking for. So together with like-minded allies from a number of countries, including Germany, Sweden, the Netherlands and Denmark, we rejected the deal on the table and told them to think again.
At this Council, we made further progress. Together with allies, many of whom like Britain write the cheques, we achieved a proper look across all the areas where spending in the Commission proposal could be cut. While there are areas where we could and should go further, not least on reforming the common agricultural policy and reducing the bureaucratic costs of the European Commission, we agreed a real-terms cut in the payment limit to €908 billion. That is €80 billion lower than the original proposal; €35 billion lower than the deal agreed by the last Government, which is still in operation today; and €60 billion lower than the emergency arrangements that would have come into place if there were no seven-year deal. My aim was not simply to cut the credit-card limit; I wanted to set the limit at a level that would deliver at worst a freeze and at best a cut in actual spending over the next seven years. That is what this deal delivers—a real-terms cut.
If we take the latest complete budget—the one for 2012—and freeze spending at that level for the next seven years, we would have spending limits of €932 billion. Our new payments limit means spending cannot rise above €908 billion, so we have slashed €24 billion off a real freeze on the last completed budget. Of course, the budget set in 2012, which Britain voted against, was unacceptably large, but even against the average of the last two completed years—2011 and 2012—this deal still delivers a real-terms cut.
This deal must now, of course, be voted on by the European Parliament, and the European Council has said it is prepared to accept some flexibilities about how spending is divided between different budget years and different areas of spending, but we are absolutely clear that this must be within the framework that the member states have now agreed. The EU’s seven-year budget will now cost less than 1% of Europe’s gross national income for the first time in its history.
Let me say a word about how this deal is likely to affect the UK’s contribution; a word about how it is likely to affect what the UK receives from the EU for research, for our regions and for our farmers; and a word about what this means for growth and competitiveness across the European Union as a whole.
On the UK’s contribution, the House will remember how the last Government gave away almost half of our rebate. This has had a long-term and continuing effect on the UK’s net contributions. It is worth remembering why. It is because when the European Union spends money on structural funds and cohesion payments in eastern European countries, for example, the UK no longer gets a rebate on this money. As a result, almost whatever budget deal was done, our net contributions were always likely to go up. As a result of this deal, however, they will be going up by less. The only two sensible things we could do to protect the British taxpayer in these negotiations were to get the overall budget down and to protect what is left of our rebate.
The Prime Minister
The right hon. Gentleman keeps on saying “Hear, hear”, but he was the one who gave away our rebate in the first place. Even he is welcome on a happy day like today. That is exactly what we have done.
While the actual amount that the UK contributes will depend on technical factors, such as the size of the annual budgets, economic performance and exchange rates, as a result of this deal we now expect the UK’s contribution to the EU to fall as a share of our gross national income. As for the rebate that this Government inherited, it is now completely untouched. As ever, throughout the negotiations the rebate was attacked repeatedly, but I successfully rejected all the calls for change, and under this Government the British rebate is safe.
In terms of what the UK receives, I wanted to make sure that our universities were well placed to receive research work, that our less well-off regions were treated fairly compared with others, and that our farmers continued to receive support for the environment schemes that they put in place. Let me deal with each of those points.
The section of the budget that includes spending on research, innovation and university funding is up by over a third. The money is handed out on the basis of quality, so Britain’s universities are particularly well placed to benefit. We have ensured that structural funds will continue to flow to our less well-off regions, and Britain’s share will remain broadly the same, at around €11 billion. While we have cut spending on the common agricultural policy overall, we have protected the flexibility that will allow us to direct funds to support both the environment and the livelihoods of our farming communities.
Overall, this is a better-framed budget in terms of growth, jobs and competitiveness. It is disappointing that administrative costs are still around 6% of the total, but overall spending on the CAP will fall by 13% compared with the last seven-year budget. Research and development, and other pro-growth investment, will now account for 13% rather than 9% of the total budget.
Reform of EU spending is a long-term project, but this deal delivers important progress. Working with allies, we took real steps towards reform in the European Union. This is a good deal for Britain, a good deal for Europe, and above all a good deal for all our taxpayers. That is what we have delivered, and I commend my statement to the House.
EU Council
Debate between Ed Balls and Lord Cameron of Chipping Norton(12 years, 4 months ago)
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The Prime Minister
Let me start with the right hon. Gentleman’s questions about the inquiry into the banking scandal. I think that what he said was rather demeaning to Parliament, the House of Commons and the House of Lords. I see no reason why Parliament cannot get to the bottom of this if we take the best and brightest from both Houses and all parties, and there are few better people to do that than my hon. Friend the Member for Chichester (Mr Tyrie), who has considerable expertise. The key point, however, is that this needs to be done speedily. The Vickers Bill—the banking Bill—will be introduced in the House of Commons in January, and I want an inquiry to be completed by then so that we can take the best of that inquiry and put it in the Bill. I think that that is the right thing to do.
The Prime Minister
The shadow Chancellor is intervening from a sedentary position. No one would like to see him in the dock of a courtroom more than me, but the job here is to get on with it, find the answers, and put them into law.
Let me now deal with the questions that the Leader of the Opposition asked about the European Union. He asked some very specific questions, including one about Russia and Syria. At the weekend, following some very hard negotiation by my right hon. Friend the Foreign Secretary, all parties agreed on transition by mutual consent. We now need to implement the policy, and all the P5 members need to do that.
The right hon. Gentleman talked about taking responsibility on the economy. When is Labour going to take responsibility for the twin crises: the crisis of the deficit and the crisis of failed banking regulation? He asked what we had done to protect the single market. If he looks at the summit conclusions, he will see that it says very specifically that the single market and its integrity must be protected. On whether the eurozone funds are sufficient, frankly, I think he is right to ask that question. We continually say it is very important that the firewall—the bazookas—are big enough.
On the right hon. Gentleman’s description of recent events, I think he probably ought to give up the hokey-cokey and stick to the Rubik’s cube. But let me tell him this: I am not going to take any lectures from a group of people who gave up the rebate and got nothing in return, who gave up our social chapter opt-out and got nothing in return, and who took us into the bail-out funds when we were not even part of the euro. Those are the people who say that the European Union has not got too much power and that they would join the euro if they were in power for long enough. The right hon. Gentleman likes to tell us endlessly about standing up to vested interests, but the fact is that he will never stand up to two big vested interests: the trade unions and Brussels.
G20 Summit
Debate between Ed Balls and Lord Cameron of Chipping Norton(12 years, 5 months ago)
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The Prime Minister
Oh dearie me.
First, let me thank the right hon. Member for Doncaster North (Edward Miliband) for his support over Afghanistan. I welcome that. On Syria, I agree that we should continue to back tough sanctions. On Russia, I had useful conversations with President Putin. Clearly the stance that the Russians take is a matter for them, but we believe that there is a real case for getting together and working to implement, in particular, the parts of the Annan plan that are about political transition, and we will continue to make those arguments.
On the economy, I do not over-claim—
The Prime Minister
I will tell you about that in a minute. I am trying to remember the words that you are and are not allowed to use in the House, Mr Speaker.
I would not over-claim for this summit—clearly, it was a G20, not a eurozone, summit—but I would say to the right hon. Gentleman that there are some battles that we have to fight every year, and the battle to prevent the rise of protectionism is just such a battle. This year, we have moved forward the date before which no one can put in place protectionist measures by another year, to 2014. Frankly, I wish that had gone further, but the idea that we fight this battle once and the fight is over is quite wrong.
The right hon. Gentleman’s problem with the communiqué —of course, he did not say whether or not he would have signed it—is that what he wants is more spending, more borrowing and more debt. The fact is that, while there might be some countries that could afford to spend more, because of the mess he left, Britain is not one of them. I have to remind him that he left us with a deficit that was bigger than those of Greece, Portugal and Spain. He quoted President Hollande, but he might remember President Hollande’s statement in which he said that the national debt is the “enemy” of the left. What a pity it is not an enemy of the left politicians sitting across from us. The right hon. Gentleman says we are part of the problem: frankly, he created the problem.
As for the issue of Jimmy Carr and all the rest of it, we learned from what happened in respect of Ken Livingstone that it is Labour politicians who are involved in tax avoidance, and now we know a new rule: they will stand up for tax avoiders wherever they are.
Oral Answers to Questions
Debate between Ed Balls and Lord Cameron of Chipping Norton(12 years, 6 months ago)
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The Prime Minister
Oh dear, he is having a bad day. Let me try to explain. Whoever was standing here right now would have to cut police budgets—they accept that, we accept that. But if you did not have the courage to deal with allowances, to deal with paperwork and to deal with pay, you would have to make deeper cuts. This is what—
The Prime Minister
I am extremely calm. This is what the Leader of the Opposition’s own police spokesman said. He was asked, “Aren’t you accepting the need for a freeze on police pay? That is what Yvette Cooper has said recently.” “No”, he replied. So that is it: they do not accept the freeze on pay, they do not accept the pension reform, they would not do the paperwork cuts; they would be cutting the police more deeply. That is their position—they have absolutely no policy ideas at all.
Oral Answers to Questions
Debate between Ed Balls and Lord Cameron of Chipping Norton(13 years, 2 months ago)
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The Prime Minister
We are making a specific exclusion to deal with people who have carers living in the home, but we do have to reform housing benefit. I think the whole House knows, frankly, that housing benefit was one of those budget items that was completely out of control. In some parts of London, we had families claiming £60,000, £70,000 and £80,000 in housing benefit just for one family, so this does need to be reformed. It is no good for the Labour party—
The Prime Minister
Frankly, too many. And it is no good for the Labour party to complain about every single reduction to public spending when it left us with the biggest budget deficit in Europe.
Oral Answers to Questions
Debate between Ed Balls and Lord Cameron of Chipping Norton(13 years, 7 months ago)
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The Prime Minister
This is a very brief quote from a Labour MP who is now a GP. He said:
“My… discussions with fellow GPs… reveal overwhelming enthusiasm for the chance to help shape services for the patients they see daily”.
That is what Labour MPs, now acting as GPs, think of the reforms. That is what is happening.
The Prime Minister
I am not going to apologise; you do need to calm down. [Interruption.]
Oral Answers to Questions
Debate between Ed Balls and Lord Cameron of Chipping Norton(13 years, 9 months ago)
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The Prime Minister
I certainly would not, and my hon. Friend makes an extremely good point, which is that at the weekend the shadow Chancellor stated boldly that there was no structural deficit when Labour left office, even though—
The Prime Minister
He nods now, even though the Institute for Fiscal Studies could not be clearer that we had one of the biggest structural deficits of anywhere in the advanced world. I have to say, if you start in opposition from a position of complete deficit denial, you will never be taken seriously again.
Oral Answers to Questions
Debate between Ed Balls and Lord Cameron of Chipping Norton(13 years, 10 months ago)
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The Prime Minister
I thank my hon. Friend for what he says. There are no simple answers. We face an enormously dangerous terrorist threat, and it is a threat that the British judicial system has struggled to meet. I think that all parties—including the Labour party, funnily enough—have the same goal. The reason we have all talked about reviewing control orders is that we want to ensure that the answer that we come up with is good for liberty and good for security.
The Prime Minister
I can see the shadow Home Secretary nodding, and I hope that we can reach all-party agreement on this important issue.
Oral Answers to Questions
Debate between Ed Balls and Lord Cameron of Chipping Norton(14 years ago)
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