(13 years, 5 months ago)
Commons ChamberMy hon. Friend is right to draw attention to today’s trade figures, which show a big increase in exports, which is exactly the sort of rebalancing that our economy needs. It is absolutely right that we need to get more women involved in the work force and at board level. In addition, in terms of entrepreneurialism, if we had the same rate of women setting up small businesses as America, we would have tens of thousands of extra businesses creating wealth and jobs.
I start by paying tribute to Lance Corporal Liam Tasker from the Royal Army Veterinary Corps. He was doing a job that put him in such danger, and he showed extraordinary bravery and courage. We remember him, and we pass on deep condolences to his family and friends.
Can the Prime Minister tell us who authorised the mission in Benghazi last weekend?
The Foreign Secretary set out the position absolutely in full in the House on Monday, but let me say clearly that I take full responsibility for everything that my Government do.
I am grateful to the Prime Minister for saying that, and I want to support him on Libya wherever I can, but there is increasing concern about the Government’s competence on the issue. We have had the flights fiasco, talk of Colonel Gaddafi heading to Venezuela when he was not, overblown briefing about potential military action, and the setback last weekend. Does the Prime Minister think that it is just a problem with the Foreign Secretary, or is it a wider problem in his Government?
I am not sure that I particularly want to take a lecture from Labour about dealing with Gaddafi and Libya. The first thing that we should have from the Labour party when it comes to Libya, Gaddafi and the release of Megrahi is an apology, which we still have not had. When it comes to this Government’s conduct, we have led the way in getting a tough UN resolution on Libya, getting Libya thrown out of the Human Rights Council and making sure that the world is preparing for every eventuality, including a no-fly zone.
Everybody will have heard the deafening silence about the performance of the Foreign Secretary. There is an issue of competence at the heart of this Government, and I want to turn to another example of incompetence. Does the Prime Minister think that people will notice the loss of 12,000 front-line police officers?
First, the right hon. Gentleman raises the issue of the Foreign Secretary. Let me tell him: I think we have an excellent Foreign Secretary. When it comes to it, there is only one person around here I can remember knifing a Foreign Secretary, and I think I am looking at him. [Interruption.] Right, I think we have dealt with that.
We want to see police on the streets fighting crime, not stuck behind their desks fighting paper. That is what we want to achieve. Let me say to the right hon. Gentleman that whoever was standing here right now would have to be reducing the Home Office budget and the policing budget. Labour was committed to a £1.3 billion cut. The question is not “Are you reducing the budget?”; the question is “What are you doing to cut the paperwork, freeze the pay, deal with the allowances and make sure the police are on the streets?”
The more that the right hon. Gentleman brings my relatives into this argument, the more that we know he is losing the argument. I have a second cousin in Belgium he will be going after next, I am sure.
On the question of crime, the Prime Minister says that he wants to improve front-line policing, but the West Midlands is losing 1,000 officers, Bedfordshire has scaled back gun licence checks, and now we hear that companies that have been burgled are to be sent fingerprint kits in the post. I know that he believes in the big society, but solving your own crimes is a bit ridiculous, even by his standards. You have to ask, Mr Speaker: does the Prime Minister actually have a clue what is going on out there?
I think the leader of the Labour party is getting a little bit touchy about this issue.
The point that I would make is that if we listen to what chief constables are saying about what they want to do—[Interruption.] Here is the chief constable of Thames Valley:
“what I haven’t done at all is reduce the number of officers who do the patrol functions, so the officers you see out in vehicles, on foot, in uniform, on bicycles. We haven’t cut those numbers at all.”
Listen to the chief superintendent in Surrey, who says:
“We are determined to increase our frontline capability by recruiting…extra”
police constables. The fact is that all the leadership of the police is engaged in the exercise of keeping costs under control to make sure that we get more officers on the beat. Whether we have to divert them to protect the right hon. Gentleman’s relatives, I do not know, but they are going to be on the beat.
Ten months, and so out of touch with people up and down this country. The Prime Minister talks about police officers; in case he had not noticed, it is the Association of Chief Police Officers that says that 12,000 front-line police officers are going to be lost. Why are they being lost? It is because he chose to go beyond the recommendation by Her Majesty’s inspectorate of constabulary of 12% cuts. If he had made 12% cuts, the savings could have been found from the back office, but he went too far and too fast, and insisted on 20% cuts in policing.
The right hon. Gentleman is wrong. The Association of Chief Police Officers is not talking about front-line officers, so he is simply wrong about that. Let me remind him what his home affairs spokesman said at the time of the election, when asked
“Can you guarantee if you form…the next government that police numbers won’t fall?
Alan Johnson: No”.
That was the position, and this is what he said after the election:
“if Labour had won the general election, the Home Office budget would have been cut and the police would have had to make savings”.
What we see today, once again, is jumping on a bandwagon and total opportunism. The right hon. Gentleman has no plans to reform welfare, no plans to reform the NHS and nothing useful to say about policing.
We know that the Government are out of touch, and now we know that they are incompetent as well: incompetent on Libya and incompetent on policing. The Prime Minister may act like he was born to rule, but the truth is that he is not very good at it.
The usual pre-scripted questions that he dreamt up earlier. The question is: has he got a reform plan for the NHS? [Hon. Members: “No!”] Has he got a police reform plan? [Hon. Members: “No!”] Has he got a plan to cut the deficit? [Hon. Members: “No!”] It is no wonder that the former Foreign Secretary has just said that
“the…Left is losing elections on an unprecedented scale because it has lost control of the political agenda…it is also losing key arguments”—
and it has a
“deficit in ideas”.
That is what he said, and he is absolutely right.
(13 years, 7 months ago)
Commons ChamberMy hon. Friend is right. I hope that Labour Members will encourage people to start up businesses and get enterprise going, as it is a private sector-led recovery that this country needs. We should also give special help to areas such as hers, which I visited recently, to try to ensure that we do everything to help growth in Merseyside and improve the prospects of the Atlantic gateway—a very exciting prospect for her area and for everyone who lives and works on Merseyside.
I join the Prime Minister in sending deepest condolences to the families of those killed in the bombing at Moscow airport. Our thoughts are particularly with the fiancée, family and friends of Gordon Cousland.
Will the Prime Minister explain to the House what, in his view, is the cause of yesterday’s disappointing growth figures?
First, they are disappointing growth figures—and they are disappointing even excluding what the Office for National Statistics says about the extreme weather. The point I would make is that this country has a very difficult economic situation for two main reasons. First, we have the biggest budget deficit in Europe, and we have to get to grips with it, which is difficult. Secondly, we had the biggest banking boom and the biggest banking bust anywhere in Europe, and we have to deal with that. As my right hon. Friend the Chancellor, the Governor of the Bank of England and I have all said, it is inevitable that, as we recover from those things, it will be choppy and it will be difficult. The worst thing to do would be to ditch our plans on the basis of one quarter’s figures.
The Prime Minister has been going around for months saying that our economy is out of the danger zone. Only a month ago, he told the House:
“It is because Britain’s economy is out of the danger zone and recovering.”—[Official Report, 15 December 2010; Vol. 520, c. 901.]
May I ask him to confirm that? He said that if we set aside the bad weather, the figures were not good. In fact, if we set aside the bad weather, growth was completely flat. There was no growth in the last quarter of 2010: no growth at all.
That is exactly what the figures show, yes.
The right hon. Gentleman asked about the danger zone. The point that I would make is this. Britain is no longer linked with countries such as Greece, Ireland and Portugal. Everyone was clear about the position before the last election. The Institute of Directors, the Confederation of British Industry and the Governor of the Bank of England all said that there was no credible plan to deal with the deficit.
If you do not deal with your debts, you will never have growth. That is the truth, and the right hon. Gentleman knows it.
The Prime Minister does not get it. If you do not have growth, you will never cut the deficit. That is what we saw in the last quarter of 2010.
As millions of families and businesses are worried about their livelihoods and see unemployment rising, inflation rising and growth stalled, what the country wants to know from the Prime Minister is whether he is going to change his strategy in any way in order to get the economy moving.
What we need to do in our country is get the deficit down, and at the same time do everything that we can to encourage growth. Let me read to the right hon. Gentleman what the head of the OECD said about the British economy, because I think that it is absolutely vital. He said:
“the UK was exceptional in terms of its needs of fiscal consolidation because the deficit had gone completely out of control.”
He also said:
“I think dealing with the deficit is the best way to prepare the ground for growth in the future. In fact, if you don't deal with the deficit you can be assured that there will not be growth because confidence will not recover.”
This man, who is entirely independent and in charge of the OECD, is giving us good advice, and I advise the right hon. Gentleman—as he has a new shadow Chancellor and can make a new start—to follow it.
The difference is that when we left office the economy was growing. Now the Prime Minister is in office, and it is not.
I have a very specific question to ask the Prime Minister. He has already made clear his decision on VAT, but he still has a choice to make about whether to go ahead with the decision to take another £20 billion out of the economy this year when the recovery is fragile. Is he telling the House and the country that he is determined to go ahead, irrespective of the figures and irrespective of what people up and down the country are feeling?
We have now heard what I think we are going to hear a lot more of: the theory that there was a golden inheritance from the Labour party. That is one of the most laughable propositions that I have ever heard put in the House of Commons.
We will not forget that we had the biggest budget deficit in the whole of Europe, and that we were spending £120 million every day just on the interest on that deficit. We inherited a situation in which, because of the regulation carried out by the right hon. Gentleman and the shadow Chancellor when they were in the Treasury, we had the biggest boom and the biggest bust in our banking system. We had a growth model that was based on uncontrollable boom in housing, uncontrollable boom in financial services, uncontrolled public spending, and uncontrolled immigration. We inherited a completely bust system from the two people who worked in the Treasury throughout the last Labour Government.
I suppose we can take it from that answer that the Prime Minister is not going to change course. He is not going to do anything to bring about growth in the economy. This is how out of touch he is. What people up and down the country are saying is that he is going too far and too fast with deficit reduction, and that that is what is inhibiting growth in this country.
The evidence shows that while cuts are being made in the public sector and while jobs are being lost in the public sector, jobs are not being created in the private sector. Why does not the Prime Minister, just for once, put his arrogance aside, and admit that he knows how to cut jobs but has absolutely no idea how he is going to create them?
The right hon. Gentleman has got to stop writing his questions before he comes to the Chamber and actually listens to the answer. He asks about changing course, and I have to say to him that he seems to have replaced a shadow Chancellor who did not understand Labour’s programme with one who does not agree with it. He asks specifically about cuts next year. Let me just remind him that it is Labour’s own plan for significant cuts in spending to start in April this year. He shakes his head, but that is his plan, which he is meant to be committed to. If he is now saying that that has all gone and Labour is just going to spend more and borrow more, he ought to tell us. As far as I can hear, his only plan is to borrow money we have not got, to spend money on things we cannot afford, and not to do the work we need to do to sort this economy out.
I am surprised that the Prime Minister is raising personnel issues this week of all weeks, because who has made the right judgment, me, who appointed the shadow Chancellor, or him, who clung on to Andy Coulson for months?
When people listen to the Prime Minister they know what the right hon. Member for Haltemprice and Howden (Mr Davis) meant when he said that the Prime Minister and Chancellor
“don’t have a sense of what a large part of the country”
feels. They are out of touch with people’s lives, they are taking a reckless gamble, and what these figures show is that for millions of people up and down the country it is hurting but it is not working.
If it was such a good decision to have the right hon. Member for Morley and Outwood (Ed Balls) as shadow Chancellor, why did the right hon. Gentleman not appoint him in the first place?
Let me just make the point that the absolute key for this country and our economy is two things: we have to deal with our deficit; and we have to help deliver growth from our private sector. I think that the right hon. Gentleman should listen to what the Governor of the Bank of England said last night in his speech. [Interruption.] Perhaps Labour Members will want to listen to the Governor of the Bank of England, who said:
“The UK economy is well-placed to return to sustained, balanced growth over the next few years”.
He said that this was partly as a result of the
“credible…path of fiscal consolidation”.
He continued:
“the right course has been set, and it is important we maintain it.”
I prefer the advice of the Governor of the Bank of England to that of the man sitting opposite.
(13 years, 8 months ago)
Commons ChamberI am grateful for that question. England 2018 has a very strong bid. With regard to the technical aspects, we have the stadiums, the facilities and the transport networks. We have the enthusiasm in our country for football and we can put on an absolutely first-class World cup. I know that many people will ask, “Are you spending too much time on something that might not succeed?” I would say, “If you don’t get on to the pitch, you have no chance of winning.” We should all get behind the bid.
I start by wishing the Prime Minister well as he plays his part in efforts to secure England’s bid for the 2018 World cup. As he says, ours is a fantastic bid and all of us will be hoping for a successful outcome tomorrow.
We note that the Deputy Prime Minister is away on official business, and left the country before the tuition fees vote, but of course we understand that he had urgent business to attend to in Kazakhstan and we wish him well in that.
The Office for Budget Responsibility forecast on Monday was hailed as a great sign of success by the Chancellor, but I want to test out what it will mean for families up and down the country. The Prime Minister has been telling us for months that under his plans unemployment will fall next year, but on Monday the OBR said that unemployment would rise next year. Can he explain why that is the case?
First, I thank the right hon. Gentleman for his kind remarks about the England 2018 bid. I know that the former Prime Minister worked extremely hard on it, and I know that there is cross-party support for it. We need to maintain that as we go into the vital last 48 hours.
The right hon. Gentleman asked about the OBR forecast, which the Chancellor announced on Monday. Let me stress again that these are independent forecasts, published for the first time independently, and not interfered with by a Chancellor of the Exchequer. On unemployment, what the Office for Budget Responsibility found is that unemployment this year will be lower than previously forecast. It has not altered its forecast for unemployment next year, for which it is forecasting a rate of 8%, but it is forecasting increases in employment all the way through the forecast period. Above all, what the forecasts showed is that our policy of trying to cut the deficit and get growth at the same time is working.
What the OBR actually shows is that growth will slow next year compared with the forecast, and that is what will mean that unemployment will rise. What the Prime Minister needs to explain is why unemployment will fall next year in the USA, in Germany and in other major industrial countries, but will rise in the United Kingdom. Why is that the case?
I know that the right hon. Gentleman is determined to talk down the economy, but even he will find difficulty in finding depressing statistics in the OBR’s report, because, generally speaking, what it reported was good news for the UK economy. It finds, and the last European Commission forecast report found, that average UK growth for the next two years will be higher than in Germany, France, the US, Japan, and the eurozone, or the EU average. It would be more worth while for us to debate across the Dispatch Box how we get the country’s growth rate up. What reforms do we make to try to make our economy more efficient? Has he got something to say about that, or is it another blank page?
The Prime Minister asks how we get the growth of the economy up—absolutely right. What we should not do is put up VAT next year from 4 January and cut public spending by £20 billion. That is why the OBR says that we will have the weakest recovery from recession for 40 years. I come back to my point about unemployment. Can he tell us when, over the five years of the Parliament, unemployment will return to pre-crisis levels? That tests the strength of the recovery. When will it return to the levels before the recession?
We inherited an 8% unemployment rate, and the OBR says that it will be 6% by the end of the Parliament. He asked the question, he gets the answer. Let me just remind the right hon. Gentleman of something. At the last election, the Labour party, himself included, said that if we cut £6 billion out of the Budget, it would end in catastrophe for the British economy. He was proved completely and utterly wrong.
Mr. Speaker, have you ever heard a more complacent answer to a question? Families up and down the country are worried about their jobs and unemployment will rise next year, and all the Prime Minister can say is that it is some kind of rosy scenario. Let us take the rise in VAT, because that is one of the reasons why unemployment will rise next year. Can the Prime Minister tell us what impact that will have on economic growth and jobs next year?
First of all, let me deal with VAT precisely. The former Chancellor, the right hon. Member for Edinburgh South West (Mr Darling) said:
“VAT would have allowed you to pay off a sizeable chunk of the deficit.”
That is the policy that the last Chancellor supported.
If we had followed over the last six months the advice of the Leader of the Opposition, we would be linked with Portugal, with Ireland—[Hon. Members: “No.”] Yes. We would not be standing here today discussing how we will get faster growth and lower unemployment; we would be sitting around discussing how to rescue and bail out Britain.
Okay, Mr. Speaker—[[Hon. Members: “Ooh!”] You can rewrite history for only so long. Let us be—[Interruption.] Let us be absolutely clear about this—[Interruption.]
Order. We are wasting the time of Back-Bench Members. Let us hear the Leader of the Opposition.
The deficit was 2.5% of national income before the crisis—the recession—hit all around the world. It went up all around the world; it was a global economic recession. The question is: should we cut too far and too fast, which is what the Prime Minister is doing, so that there are four years of sluggish recovery—the most sluggish recovery from recession in 40 years? Why does the Prime Minister not answer the question? Is this the most sluggish recovery from recession in Britain for the last 40 years? Yes or no?
This is one of the fastest recoveries in Europe, and the point is, if we had followed the right hon. Gentleman’s advice we would not be discussing recovery; we would be discussing meltdown. He can have a blank sheet of paper about the future; he cannot have a blank sheet of paper about the past. We know we were left a record budget deficit; we remember “no more boom and bust”; we remember all the things that he was responsible for. I have to say to him that, after all that—and he has been doing the job for the last three months—people are beginning to ask, “When’s he going to start?”
With that answer, it is no wonder that today we learn that the Foreign Secretary describes this gang as the “children of Thatcher”. It sounds just like the 1980s—out of touch with people up and down the country. Why does the Prime Minister not admit that he is complacent about the recovery and complacent about the people who will lose their jobs? And it is they who will pay the price.
Not waving, but drowning. My mother is still with us, so she is able to testify that what the right hon. Gentleman has just claimed is not literally true, but let me say this: I would rather be a child of Thatcher than a son of Brown. [Interruption.]
(13 years, 10 months ago)
Commons ChamberMy hon. Friend is entirely right. The growth figures yesterday were twice as good as market expectation. Of course, Opposition Members do not like good news, but they should celebrate it when it comes. This was strong growth, largely driven by the private sector, and it was accompanied by the Standard & Poor’s agency saying that we should no longer be in the danger zone for our credit rating, which is welcome news. Opposition Members who are waiting for a double dip have had a bit of double depression, but I am sure that we will get lots of questions about the economy this morning.
May I start by joining the Prime Minister in paying tribute to Corporal David Barnsdale from 33 Engineer Regiment (Explosive Ordnance Disposal)? He died serving his country; we honour his memory and send the deepest of condolences to his family.
There are reports this morning that the Government are reconsidering aspects of their housing benefit reforms. Are they?
No, we are bringing forward our plans for housing benefit reform. Let me tell the right hon. Gentleman why we are doing that. Housing benefit for working-age people over the last five years has gone up by 50%. This is a budget that is completely out of control. The proposals we are bringing forward are difficult, but they need to be done, not least because we want to make sure that we protect the schools budget. We want to make sure that we protect the NHS budget. That is why we are taking difficult decisions about welfare and I hope that he will be able to tell us this morning whether he is going to support them.
I thank the Prime Minister for that answer. Let me get complete clarity from him. The Secretary of State for Work and Pensions is reported as saying that the Government are “open to suggestions” on the issue of housing benefit. Is the Prime Minister saying that all the aspects of housing benefit reform are fixed and are not going to change?
We are going forward with all the proposals that we put in the spending review and in the Budget. I am sure that we would all love some suggestions from the right hon. Gentleman.
This is Prime Minister’s questions—the clue is in the title. He is supposed to answer the questions. I have a specific question for him on one aspect of the housing benefit changes. The plan is to cut by 10% the housing benefit—the help with rent—that someone receives after they have been out of work for a year, even as they have been searching for work. Does the Prime Minister think that that is fair?
These are difficult changes, but I think that they are right. Everyone on jobseeker’s allowance is expected to work, and everyone knows that there is a problem when people claim jobseeker’s allowance and maximum housing benefit for long periods of time, which creates a serious disincentive to work. That is why we are making this change, and that is why it is right.
The key change that we are looking at is the £20,000 cap on maximum housing benefit claims. Is the right hon. Gentleman really saying—[Interruption.] I am answering the question. I know that Labour Members do not like the answer that we are sticking to our plans, but we are sticking to our plans. The point that everyone in this House must consider is whether we are happy to go on paying housing benefit of £30,000, £40,000 or £50,000. Our constituents are working hard to give benefits to other people to live in homes that they themselves cannot dream of, and I do not think that is fair.
The whole House has heard that the Prime Minister has dug himself in on the proposal to cut by 10% the help that people receive with rent after they have been out of work for a year. I ask him, because he will have obviously thought about this, what advice he would give to a family who are seeing 10% of their income from housing benefit being taken away. What advice would he give them, when they are seeing such a large cut in their income, on how they should make ends meet?
In the Work programme, we will have the best and biggest programme to help those people back into work. It will not just be the state doing it; we are going to get training companies and voluntary bodies to help those people into work. I know that the right hon. Gentleman likes figures, so let me give him the figures for London. There are 37,390 people who have been on jobseeker’s allowance for more than a year, and those people would be affected by this change—I accept that; it is difficult. Every month, there are 30,000 new vacancies in London, which makes 400,000 vacancies a year. We want to get those people back into work. What does he want to do?
The Prime Minister is about to make 500,000 people redundant as a result of the cuts announced by the Chancellor of the Exchequer. It is clear that his policy on housing benefit is a complete shambles. He has talked about London, but in London alone councils are saying that 82,000 people will lose their homes—they are already booking the bed-and-breakfast accommodation. How many people does he think will lose their homes as a result of that policy?
If we are prepared to pay—as we are—£20,000 in housing benefit, there is no reason why anyone should be left without a home. The Leader of the Opposition has talked about economic policy and cuts, and we now know from the Labour party’s own memorandum what its cuts would be. This is not the Institute for Fiscal Studies, the Government or the Conservative party; this is a Labour memorandum. It said that the cuts—[Interruption.]
The people responsible for making the mess should be quiet when they are told how it will be cleared up. The Labour memorandum states that the cuts implied by its spending plans would have been £44 billion in 2014-15. Those are the Labour party’s cuts, which we are having to implement. I was always told that if you have got nothing to say, it is better not to say it.
We can see the faces on the Liberal Democrat Benches. The hon. Member for Bermondsey and Old Southwark (Simon Hughes) has described that policy as “harsh and draconian”. No wonder he looks glum. Then we have glummer, the Deputy Prime Minister—it is no wonder that he is back on the fags. Is not the truth that the Prime Minister just does not get it? He is out of touch. Other people will pay the price for his cuts. Is it not time that he thought again on housing benefit?
We all had the chance to read about it in The Times this morning—the advice to the Leader of the Opposition:
“It’s important to have a cheer line that goes down well in the chamber.”
You have to have something that
“can be clipped easily by the broadcasters”,
and:
“It is important to get to your feet looking as if you are seizing on something new.”
The right hon. Gentleman has a plan for Prime Minister’s questions, but he has no plan for the economy, no plan for the debt and no plan for the mess Labour made—absolutely nothing worth while to say. That is it.