(9 years, 11 months ago)
Commons ChamberThe reasons for people visiting food banks are complex and frequently overlapping. It is difficult to give one particular reason for the use of food banks increasing at a time when, as the hon. Lady says, unemployment is dropping rapidly in constituencies all around the country.
That brings me to an important part of my speech, on the economy. Our broad policy approach is that economic growth and employment offer the best route to give people a better future and to reduce poverty. Our country has been through the deepest recession in living memory, and the Government inherited a tough fiscal and economic situation, including the highest structural deficit of any major advanced country.
The Government have a long-term economic plan to secure Britain’s future, and sticking to it is the best way to improve living standards. Although there is more to do, that plan is working, as the Chancellor made clear in his autumn statement. There are now more people in employment than ever before, and I hope Opposition Members will welcome that fact. The economy is growing faster than any other in the G7, and we have cut income tax for 26 million people and are freezing fuel duty, cutting child care bills and providing funding for councils to freeze council tax. It is working—disposable income per capita is rising, and income inequality is down. I welcome the news this morning that not only are jobs being created and unemployment falling, but wages are rising significantly above inflation.
However, we are not complacent. There are still hard-working families facing challenging circumstances, which is why we continue to spend £94 billion a year on working-age benefits to support millions of people who are, for instance, unemployed or on low income. More than 93% of jobseeker’s allowance and employment and support allowance claims are now processed on time, within 16 days, which as I said earlier is up 7% since 2009-10. Universal credit will further speed up that processing, and the Department for Work and Pensions will do more to raise awareness of short-term benefit advances. That work will include providing more information about such advances to claimants both online and in jobcentres. We will also update staff guidance on those advances and remind staff of the process for considering them.
The Minister spoke about the complexity of the reasons for the increased use of food banks. I know that he has studied the report in great detail, so can he tell the House what the top two reasons were?
As I said, the reasons are complex and frequently overlapping. If the hon. Lady has read the report herself, she will know what was in it, so I will leave her to cogitate on what the top reasons were.
We acknowledge that there is concern about prices. Following Ofwat’s 2014 price review, water bills across England and Wales will reduce by up to 5% before inflation, which is equivalent to about £20 a customer. I hope that Opposition Members will welcome that cut. As I have noted, we are freezing fuel duty, and road fuel prices are falling—they are at their lowest level since the end of 2010. It is also welcome news for consumers that year-on-year food prices have fallen, with an annual rate of inflation for food and non-alcoholic beverages of minus 1.7% in the year to November 2014.
(10 years ago)
Commons ChamberWhat we have said is that we want to maintain our ambition to have the lowest rate of business tax of the advanced industrial economies. We have achieved that under this Government through getting corporation tax down to 20% and I think that is a very good calling card for Britain in the world to get people to come and invest here. We have a 20% tax rate, but we do believe that it is important that companies pay their tax, so I think it is both a good advert for Britain, but also in the long term a good way of protecting and raising our revenue.
I am sure the Prime Minister agrees that we should judge the success of greater transparency in global taxation by how much it benefits those who need it the most—the poorest countries in the world. He said in his statement that £37 billion of extra tax was being paid by big companies. Can he now tell the House how much of that money has gone to developing countries?
I do not have those figures for the hon. Lady. They were figures produced by the OECD at the meeting, but she is completely right that if all that happens is that the richest countries of the world agree to exchange tax information with each other, that will help us but it will not help the poorest. That is why we have to get into these countries and help them build their tax authorities and their capacity. That is why we have not just proposals but actions like tax inspectors without borders where we actually put the capacity into other countries. I want them to benefit from the good work that is being done.
(10 years, 4 months ago)
Commons ChamberI am very grateful to my hon. Friend once again. People seem to do a lot of toasting in Somerset, which I am sure is very good for the health in all sorts of ways.
On the issue of the justice and home affairs opt-out, what we have done is to achieve the biggest return of power from Brussels to Britain that there has been since we have been members of this organisation, by exercising that opt-out. We did that on the basis that it was important to opt back into a small number of measures that will actually help us to catch criminals and terrorists, and to keep our people safe.
When did the Prime Minister realise that he had failed to convince almost everyone, and with that realisation, what adjustments did he make to the substance and style of his engagement with other EU leaders?
As I have said, the critical moment was when other leaders who had signed up in some way to this leading candidate process realised that they could not actually change their approach, which I think was the case in many European countries. They were on a conveyor belt they could not get off, so it became apparent that Britain was not going to succeed in our campaign to stop this principle and stop this person. At that point, it is important to stand up for a principle, and to take the arguments all the way to the end. If you get a reputation that every time the going gets tough, you simply give in, you get into the position in Europe that Labour Governments put us in time and again.
(10 years, 5 months ago)
Commons ChamberMy hon. Friend is absolutely right about that. What Russia has done is wrong—wrong in respect of the bogus referendum in Crimea and wrong in respect of the support that has been given to groups in eastern Ukraine. The only thing that it will respect is a very clear, very firm and very predictable response from the EU and the US. What has been noticeable is that while a lot of people have thought there would be great divisions opening up between the United States and the countries of the European Union, we have actually, I think, delivered a fairly joined-up and clear response to what is unacceptable.
On the three T’s of tax, transparency and trade, what leadership is the Prime Minister giving and what progress has been made on establishing public registers of beneficial ownership in the overseas territories and Crown dependencies?
I am delighted to be able to do that. The first thing was our putting the whole issue on the agenda at last year’s G8 and getting countries to sign up to the Lough Erne declaration, which specifically talked about registers of beneficial ownership. The second thing was our announcement in the Queen’s Speech of a world first, I think, in publishing, here in the United Kingdom, the open register of beneficial ownership. As for the overseas territories and Crown dependencies, we should commend them for the work that they have done to bring their arrangements up to date. I had this conversation with them almost exactly this time last year before the trooping of the colour. They have made huge steps forward, and we should commend them for that and encourage them to go further.
(10 years, 11 months ago)
Commons ChamberI am grateful to my hon. Friend for what he has said. It is a transformative programme. Some 66,000 young people have already been through it since 2010. It now forms part of what Prince Charles wants to see—a decade in which we encourage volunteering and we get 50% of all young people taking part in volunteering. I hope that Members from all parts of the House are having an experience similar to that of my hon. Friend, with people stopping them and talking about the NCS and what it has done for young people and their confidence. It really is a good programme, and I am delighted that it has all-party support.
As the Prime Minister is trying to come over all family friendly, can he confirm whether maternity and paternity pay will be included in the benefits cap announced in the autumn statement?
(11 years, 2 months ago)
Commons ChamberMy hon. Friend is absolutely right to say that Britain is alone among G20 countries in meeting its aid promises. I see that as a source of national pride rather than of national embarrassment. We made a promise to the poorest of the world and we have kept it. If we look at the argument in a different way, I would argue that if we care about getting things done in the world that are in Britain’s interests as well as those of the poorest, keeping such a promise and using our aid budget to demonstrate that Britain can get things done is good from that point of view, too.
All 10 tax havens among the UK’s overseas territories and Crown dependencies committed at the G8 to sign the multilateral convention on mutual and administrative assistance in tax matters. Will the Prime Minister tell the House whether the timetable is in place yet and, if so, how many have signed?
They all agreed to take the necessary action on tax exchange with the UK, international tax co-operation and beneficial ownership, all of which was set out at the meeting I had with them. I cannot recall the exact timetable off the top of my head, but I will make this point: I do not think it is fair any longer to refer to any of the overseas territories or Crown dependencies as tax havens. They have taken action to make sure that they have fair and open tax systems. It is very important that our focus should now shift to those territories and countries that really are tax havens. The Crown dependencies and overseas territories, which matter so much—quite rightly—to the British people and Members have taken the necessary action and should get the backing for it.
(11 years, 5 months ago)
Commons ChamberWe commissioned the OECD to help us. The simple principle is that there should be a tool to enable a country to see how much revenue, profit and tax a company is paying in each jurisdiction. Sometimes non-governmental organisations and others have asked for full disclosure of every piece of information, but, frankly, boxfile after boxfile of information does not necessarily get us the high level tax tool we need to see whether there is a problem, to share information with other tax authorities and to find an answer. This is the right approach for the reasons I have just given.
The Prime Minister has in the past supported the public disclosure of ownership of companies, so why is he hesitating now, rather than seizing the opportunity to show leadership again and committing the UK to a public register in its action plan?
As I said, we will set up a central registry and consult on whether it should be public. There are strong arguments for it to be public, but let me make two points. First, the point at which one says one’s own registry will be public, one gives up rather a lot of leverage over other countries we might want to encourage to do that at the same time. Secondly, it is important to take the business community that believes in responsible behaviour with us on this journey of greater transparency and fairness. To be fair, the CBI has been supportive of this agenda, so there is nothing to fear from a consultation where we try to take people with us on this important progress.
(11 years, 6 months ago)
Commons ChamberOn the issue of plain packaging for cigarettes, the consultation is still under way, and we are looking at the issue carefully. On minimum pricing for alcohol, it is important that we take action to deal with deeply discounted alcohol, with cans of lager sometimes selling for as little as 25p in supermarkets. We will be bringing forward a package of measures, and it is important that we get this right.
The Prime Minister spoke about how all of us in the House cherish and love our children and families, so where is the protection for children when it comes to plain packaging for cigarettes? For the record, the consultation is closed.
The hon. Lady’s party had 13 years in office to take such measures and did precisely nothing.
At the heart of the Queen’s Speech is a commitment to get behind the aspiration of people who work hard, save hard and do the right thing. The pensions Bill, which, by the way, is the biggest reform of the state pension for 50 years, did not merit a single mention from the Leader of the Opposition. The Bill marks a major shift towards encouraging saving in our country. Under the current system, many people are discouraged from saving during their working life. Why? It is because the more they save, the less pension credit they will get. A single-tier pension, at about £144 a week, changes that. It will take hundreds of thousands of people in our country out of the means test, and it will give people the certainty of knowing that the savings they make when they work will benefit them when they retire.
Another problem that can discourage saving is the fact that in so many cases people’s homes are taken away to pay their care bills. The family that has saved is asked to pay for care; the family that has not saved gets all this for free. I do not believe that is fair. This Queen’s Speech makes an historic move to put a cap on individual contributions to pay for social care. Combined with changes in the insurance market, that should mean that no one has to sell their home to pay for care—a major breakthrough in this vital market.
(12 years, 5 months ago)
Commons ChamberGiven that the hon. Gentleman has not given me the chance to talk about our plans and approach, perhaps he will be patient and contain himself until that moment.
As I was about to say, nothing has yet been decided. Any proposals for each work force must be based on strong evidence. We want to hear from everyone with a contribution to make, and we are committed to making any future decision on the basis of evidence, which is the right way to approach the matter. That is why we have invited the various pay review bodies to consider the matter on that basis.
However, as I said earlier, we are not the only Government to think that there is a case for looking at this issue. The case was recognised by the last Government, and they gave it, I presume, serious thought. Indeed, in 2003, the then Chancellor announced a stronger local dimension to pay review body remits, noting that there was significant scope to increase the flexibility and responsiveness of public sector pay. He told the House:
“With this national framework for fairness in place, it makes sense to recognise that a more considered approach to local and regional conditions in pay offers the best modern route to full employment”.—[Official Report, 9 June 2003; Vol. 406, c. 412.]
Does anyone on the Opposition Benches disagree with that? It seems a considered and sensible approach to me.
I will not give way, if the hon. Lady will forgive me, because I need to make some progress and Back-Bench contributions are already likely to be constrained because the debate started rather late.
The then Chancellor also said that pay for the civil service should include a stronger local and regional dimension, while in that year’s Budget he set out
“action to increase regional and local flexibility in public service pay”.
As I have mentioned, the then Chancellor’s advisers included the current Leader of the Opposition and the current shadow Chancellor. It seems pretty opportunistic for Labour, at the 11th hour, to produce this motion, when its own Government took the public sector further down this path than we are at this stage contemplating.
Indeed, Labour did not just talk about localised pay; it actually introduced it. In 2007, the last Government introduced localised pay for civil servants across the courts service. They did so in response to the Treasury’s pay guidance, issued in 2007, at a time when, as far as I can make out, the current Leader of the Opposition was the Minister in the Cabinet Office responsible for civil service matters and the shadow Chancellor was the Economic Secretary to the Treasury. Yet that pay guidance, which went out across the civil service, asked Departments that operated across different locations to differentiate between pay levels across regional labour markets. Following that guidance, which was issued under the aegis of the current Leader of the Opposition and the current shadow Chancellor, the previous Government introduced localised pay in the courts service across the country. That was, if I may say so, a sensible and unusually well-judged move, and it has been successful.
(13 years, 5 months ago)
Commons ChamberI will certainly support the campaign. My hon. Friend makes the extremely good point that many people with diabetes find the illness embarrassing and something that they do not want to talk about, yet it affects more and more people. We have to find a way to encourage people to come forward and say that there is nothing abnormal or wrong about it. We need to help people to manage their diabetes, especially because we want them to have control over their health care and to spend less time in hospital, if at all possible. I fully support the campaign, and I think that we need to look at the long-term costs of people getting diabetes and recognise that there is a big public health agenda, particularly around things such as exercise, that we need to get hold of.
Q10. The Prime Minister will know that this is my first opportunity to ask him a question. I stand here fresh and full of hope, so I shall give him one more chance to answer this question. People in my constituency and throughout the country face the enormous increases in their energy bills announced by Scottish Power. They need help now. When will the Prime Minister keep the promise that he made in opposition to take tough action on excessive energy prices?
As I said some moments ago, we are taking action. There is only a certain amount that can be done when fuel prices have gone up by as much as they have over the past year—a 50% increase in oil and gas. We do have the warm home discount and the Warm Front scheme. We are making sure that when there are special tariffs, companies must offer them to users; that makes a difference. There is also the point about Post Office card account holders. At present they do not get all the discounts available to people who pay by direct debit, but we are ensuring that they will get those discounts. The hon. Lady shakes her head, but that is a lot more done in one year than the previous Government did in 13.