Oral Answers to Questions

Ed Miliband Excerpts

Wednesday 13th October 2010 Commons Chamber

[The Prime Minister]

I thank my hon. Friend for that question. It was good to see the alternative vote in practice, if I can put it that way, although of course, to be fair to my colleagues on the Government Benches, when it comes to the referendum the trade unions will not have quite such a large involvement.

I should like to take this opportunity to congratulate the right hon. Member for Doncaster North (Edward Miliband). It is an important job that he does, calling the Government to account and standing up for Opposition Members. I am sure that there will be many times when we can work together on issues of national interest, such as on Afghanistan, which I was just talking about. I hope that he will not mind me saying that, as well as wishing him well, I hope that he does the job for many, many years to come.

[Edward Miliband (Doncaster North) (Lab)]

May I start by thanking the Prime Minister for his kind words just then, and for the kind words that he gave to me when I was elected leader of the Labour party? As he said, there will be issues on which we can work constructively, including on Afghanistan.

I join him in paying tribute to our troops who have died in Afghanistan. They were Sergeant Andrew Jones of the Royal Engineers and Trooper Andrew Howarth of the Queen’s Royal Lancers, who died on 18 September; Corporal Matthew Thomas from the Royal Electrical and Mechanical Engineers, who died on 25 September, Rifleman Suraj Gurung from 1st Battalion the Royal Gurkha Rifles, who died on 2 October and Sergeant Peter Rayner from 2nd Battalion the Duke of Lancaster’s Regiment, who died on 8 October. Each of them showed the highest dedication, commitment and bravery. We honour their memory and pass deep condolences to their families.

We also honour Linda Norgrove, who died doing a simple job trying to make the lives of people in Afghanistan better—a necessary part of any political settlement. She too showed immense bravery. May I say to the Prime Minister that we fully support the decision the Foreign Secretary took to authorise her rescue? We must always make it clear from all parts of this House that responsibility for her death lies solely and squarely with those who took her hostage. May I ask the Prime Minister to update the House on his phone call with President Obama about the circumstances surrounding Linda Norgrove’s death and the progress on the inquiry into those circumstances?

[The Prime Minister]

I am grateful for what the right hon. Gentleman says and the way that he says it, both about our troops and about the tragic case of Linda Norgrove. As he knows, I spoke to President Obama to stress the point that we think it is extremely important that this is a joint US and UK investigation. I do not think there are any further details I can give about what happened that night—the picture is still unclear—but it was right, I think, to correct the early information, which most likely was wrong, about how Linda died. This investigation is now under way. When there is new information to bring to the House, we will bring it to the House. Most important of all, though, is to keep the family informed at every stage. I will meet General Petraeus tomorrow to discuss this further. I particularly want to echo what the right hon. Gentleman says about the responsibility for this. It is an impossibly difficult decision to make about whether to launch a raid and try to free a hostage. In the end we must all be clear: the responsibility for Linda’s death lies with those cowardly, ruthless people who took her hostage in the first place.

[Edward Miliband]

I thank the Prime Minister for that answer and for undertaking to keep the House informed. He has our full support on the issue.

Let me turn to the issue of benefits and say to the Prime Minister that we will work with him on his reforms to disability living allowance and to sickness benefits, because they are important reforms and they need to be done. On child benefit, though, I think that those on his own Benches and the country at large do have concerns. May I ask him, first, how many families where one parent stays at home will be affected by the changes that he has proposed to child benefit?

[The Prime Minister]

In terms of the number of families who will be affected, higher-rate tax is paid by 15% of taxpayers, and the decision that we have taken is to say that child benefit should not be received by families where there is a higher-rate taxpayer. I accept that this is a difficult choice, but the fact is—

[The Prime Minister]

I have answered the question, “How many?” The answer is that 15% of taxpayers are higher-rate taxpayers. This is a difficult choice, because as we deal with the deficit we have to ask better-off people to bear their share of the burden. The fact is that today we spend £1 billion giving money through child benefit to relatively better-off homes. We think that has to change, and I have to ask the right hon. Gentleman why he thinks that that is not the case.

[Edward Miliband]

I may be new to this game, but I think that I ask the questions and the Prime Minister should answer them.

I am afraid that that the Prime Minister did not provide an answer to the specific question I asked. By my reckoning, there are hundreds of thousands of families where one parent stays at home, and the question they are asking is this: why should a family on £45,000 where one person stays at home lose their child benefit—£1,000, £2,000, £3,000 a year—but a family on £80,000 where both partners in the couple are working should keep their child benefit? That does not strike people as fair, and it does not strike me as fair: does it strike the Prime Minister as fair?

[The Prime Minister]

What I believe is fair is asking better-off people to make a contribution to reducing the deficit. Let me try putting it this way to the right hon. Gentleman—think about it like this: there are thousands of people in his constituency earning one sixth of what he earns. Through their taxes, they will be paying for his child benefit. Is that really fair?

[Edward Miliband]

I am afraid it is nought out of two on straight answers. We should try to change the tone of these exchanges, but the Prime Minister must provide straight answers to straight questions that I ask him. I am not defending the rich—[Interruption.]

[Mr Speaker]

Order. The Leader of the Opposition will be heard, and if there are colleagues chuntering away who then hope to catch the eye of the Chair, I am afraid they are deluded.

[Edward Miliband]

I am defending the deputy head teacher in her primary school and the police inspector, who are asking a simple question. The Prime Minister used to agree with me. Before the election he went to Bolton, in an event that I gather was called “Cameron Direct”, and he said:

“I’m not going to flannel you. I’m going to give it to you straight. I like child benefit. . . I wouldn’t change child benefit, I wouldn’t means test it, I don’t think that’s a good idea.”

I agree with the Prime Minister: why doesn’t he?

[The Prime Minister]

The problem that the right hon. Gentleman has to face up to is that he left us the biggest budget deficit in the G20, and he has absolutely no proposals to deal with it. He opposes our changes on housing benefit, yes? You oppose those? He opposes our changes on a benefit cap—[Interruption.]

[The Prime Minister]

The right hon. Gentleman opposes our changes on a benefit cap, yes? Just nod. And he opposes our changes on child benefit. He quoted something to me; let me quote him something back:

“We have to be frank with people and show our mettle. In times of plenty, giving child benefit to high earners is a luxury the country”

cannot afford. That was Alan Milburn, someone who cared—[Interruption.] Ah, he’s gone. I love this—all the Labour politicians who used to win elections have been thrown out of the window. The right hon. Gentleman has to face up to the truth. We have a big budget deficit, and we have to ask better-off people to make their contribution. We say higher earners should not get child benefit. Their child benefit is being paid for by some of the poorest people in our country, and it is about time he protected them.

[Edward Miliband]

I really want the Prime Minister to face up to the scale of the changes he is proposing, and I say to right hon. and hon. Members on the Government Benches that they should face up to the scale of the loss. Take a family on £33,000 after tax. If they have three kids, they will be losing £2,500 as a result of these changes. That is the equivalent of 6p on the basic rate of income tax. That is an enormous loss that the Prime Minister is inflicting on a particular group in the population. If he wants to take people with him on deficit reduction, he has to show that his changes are fair and reasonable. I come back to this point: I do not believe his changes are fair and reasonable—does he?

[The Prime Minister]

I do not think it is fair for the poorest constituents in the right hon. Gentleman’s constituency to contribute to his child benefit. That is what he is asking them to do. Let me remind him of something he said in July, which was that

“whoever is the Labour leader will, by the time of the spending review, have to show that they have an alternative plan”.

Where is the alternative plan? That was a speech he made to an organisation called Left Foot Forward. Could I suggest that he put both his left feet forward and tell us what the plan is?

[Edward Miliband]

The truth is, as the whole country will have heard—[Interruption.]

[Mr Speaker]

Order. People should stop shouting. The public hate it, it is bad for politics and it should not happen.

[Edward Miliband]

The truth is that the Prime Minister has no defence of that policy. He cannot explain to families up and down the country why they will sustain that loss. I see the Chancellor sitting there. Let us be honest: the policy has been a shambles from day one. The rest of the Cabinet knew nothing about it, and the Local Government Secretary said he found out from the media that it would be announced. The Children’s Minister, whom I cannot see in the Chamber, went on the run because he was too scared to defend the policy. I bet the Prime Minister wishes the BBC blackout had gone ahead, given that his conference was such a shambles.

On child benefit, is it not time that the Prime Minister had the grown-up sense to admit that he has got it wrong and that he has made the wrong decision? He should tell middle-income families up and down Britain that he will think again.

[The Prime Minister]

The right hon. Gentleman has suddenly discovered middle-income families. We are now hearing about the squeezed middle, but who squeezed the middle? Who doubled the council tax and put up tax 122 times, and who taxed the pensions, the petrol, the marriages and the mortgages? Suddenly, having done all that to middle-income earners, Labour wants to stand up for them. That is a completely transparent political strategy to cover up the inconvenient truth that he was put where he is by the trade union movement. It is short-term tactics and political positioning: it is not red, it is Brown.