Oral Answers to Questions

Lord Cameron of Chipping Norton Excerpts

Wednesday 30th November 2011 Commons Chamber

[Nick Smith (Blaenau Gwent) (Lab)]

Q1. If he will list his official engagements for Wednesday 30 November.

[The Prime Minister (Mr David Cameron)]

I am sure the whole House will wish to join me in paying tribute to Rifleman Sheldon Steel from 5th Battalion The Rifles. He was a highly respected soldier who had achieved a great deal and shown much potential during his time with the Army. At this very sad time, our thoughts should be with his family, his friends and his colleagues. His courage and his dedication will never be forgotten by our nation.

This morning I had meetings with ministerial colleagues and others. In addition to my duties in the House, I shall have further such meetings later today.

[Nick Smith]

I join the Prime Minister in paying tribute to that brave serviceman, who gave his life for our country. Our thoughts are with his family at this very difficult time.

Blaenau Gwent, my constituency, has high unemployment but great potential, and it would benefit greatly from £200 million of private sector-led investment in motor sport. Will the Prime Minister provide support for enhanced capital allowances for enterprise zones in Wales, including Blaenau Gwent, as well as in England?

[The Prime Minister]

I thank the hon. Gentleman for that question. First, may I congratulate him and the other 37 Members who have opted to grow additional facial hair in this month of November? It is a very good way—[Interruption.] For those who are capable of doing so, it is a very good way of raising the profile of that important illness, prostate cancer.

We are committed to providing enhanced capital allowances, and discussions are ongoing with devolved Administrations about enhanced capital allowances in their enterprise zones. We will do what we can in Blaenau Gwent, as elsewhere, and I should add that we are electrifying the line to Cardiff and looking for improvements on the M4. All the announcements that my right hon. Friend the Chancellor made yesterday will have consequentials for additional spending on infrastructure in Wales.

[Richard Drax (South Dorset) (Con)]

I am confident that the Prime Minister, like me, will praise the courage and professionalism of the Portland search and rescue helicopter. I am confident also that he will share with me the alarm, anger and disbelief of my constituents and many colleagues with coastal constituencies that it is to be axed. Will he meet me and a small delegation from South Dorset to discuss that urgent matter before a disastrous mistake is made?

[The Prime Minister]

I am very happy to meet my hon. Friend. I know how important it is that we have effective search and rescue facilities off our coast, and I know about the incredibly good work that they do. What the Government are looking at is the best way to deliver those services, including how they should be paid for, and it is important that that work goes ahead.

[Edward Miliband (Doncaster North) (Lab)]

May I join the Prime Minister in paying tribute to Rifleman Sheldon Steel, from 5th Battalion The Rifles? He served with huge commitment and courage, and our deepest condolences are with his family and friends.

In June at Prime Minister’s questions, the Prime Minister praised the head teacher of Vaynor First school in Redditch for refusing to strike. Today, she has closed her school. She says:

“This has been the most difficult decision of my professional life… The difference in the summer was that I had faith in the Government… I have not seen any progress so I have decided…to strike.”

Why does the Prime Minister think that so many decent, hard-working public sector workers, many of whom have never been on strike before, feel that the Government simply are not listening?

[The Prime Minister]

The reason why people are going on strike is that they object to the reforms that we are making to public sector pensions, but I believe that those reforms are absolutely essential. The Labour former Work and Pensions Secretary, Lord Hutton, said that

“it is hard to imagine a better deal than this.”

What I would say, above all, to people who are on strike today is that they are going on strike at a time when negotiations are still under way. The right hon. Gentleman refers to what was said in June. Let me remind him what he said on 30 June:

“These strikes are wrong at a time when negotiations are…going on”.

Why has he changed his mind?

[Edward Miliband]

Mr Speaker, the reason—[Hon. Members: “Answer.”]

--- Later in debate ---

[Edward Miliband]

The reason public sector workers do not think the Prime Minister is listening is that the Government declared negotiations at an end four weeks ago. They said that they had made their final offer. They have not even met the unions for four weeks, since 2 November. What has he gone around saying to people? He has gone around saying that he is privately delighted that the unions have walked into his trap. That is the reality. He has been spoiling for this fight. The reason people have lost faith is that he is not being straight with them. Will he admit that 800,000 low-paid workers on £15,000 a year or less are facing an immediate tax rise of 3% on his pension plan?

[The Prime Minister]

I know that the right hon. Gentleman’s entire party is paid for by the unions, but I must say that what he has just told the House is extraordinary and completely and utterly untrue. The fact is there were meetings with the trade unions yesterday, there will be meetings with them tomorrow and there will be meetings on Friday. The negotiations are under way. Let me repeat what he said in June. He said that it is wrong to strike

“at a time when negotiations are…going on”.

Yet today he backs the strikes. Why? Because he is irresponsible, left-wing and weak.

[Edward Miliband]

The difference is that, unlike the Prime Minister, I am not going to demonise the dinner lady, the cleaner or the nurse, people who earn in a week what the Chancellor pays for his annual skiing holiday—[Interruption.]

[Edward Miliband]

The Prime Minister is the one—he did not deny it—who went around saying that he is privately delighted because the unions have walked into his trap. That is the reality. The truth is that it is not only public sector workers who are paying for the failure of his plan, but private sector workers. Will he confirm that, as a result of the cuts to tax credits announced yesterday, a family on the minimum wage, taking home £200 a week, will lose a week and a half’s wages?

[The Prime Minister]

First, let me be absolutely clear—[Hon. Members: “Answer.”] I will answer the question—

[Mr Speaker]

Order. Let me say again that the Prime Minister’s answer, however long it takes, will be heard. That is the principle of democracy. The Leader of the Opposition and the Prime Minister must be heard.

[The Prime Minister]

Let me be clear that I do not welcome these strikes one bit. I think that we have made a very reasonable and very fair offer to public sector workers, and that is why the former Labour Pensions Secretary said that

“it is hard to imagine a better deal.”

I do not want to see any strikes. I do not want to see schools close. I do not want to see problems at our borders, but this Government have to make responsible decisions.

Let me just remind the right hon. Gentleman and the House of the facts about public sector pensions. Anyone earning less than £15,000 on a full-time equivalent salary will not see any increase in the contributions they have to make. In terms of the reforms we are making, a nurse retiring on a salary of just over £34,000 today would get a pension of £17,000, but in future she would get over £22,000. A teacher retiring on a salary of £37,000 would have got £19,000, but will now get £25,000. These are fair changes. I will tell the House why they are fair. We rejected the idea that we should level down public sector pensions. We think that public sector pensions should be generous, but as people live longer it is only right and fair that they should make greater contributions. What we see today on the Opposition Benches is a party that is in the pocket of the trade union leaders, that has to ask their permission before crossing a picket line and that take the irresponsible side of trade union leaders who have called their people out on strike when negotiations are under way.

Now let me answer his question about the low-paid—[Interruption.]

[Mr Speaker]

Order. I remind the Prime Minister gently that a large number of Members are listed on the Order Paper—Back Benchers, whom I want to hear and he wants to hear. A brief sentence will suffice.

[The Prime Minister]

I will wait for his next trade union-sponsored question, and then give my answer.

[Edward Miliband]

I am proud that millions of hard-working people in this country support the Labour party—better that than millions from Lord Ashcroft.

The problem is that the Prime Minister does not understand his own policy. He does not understand that there are part-time workers earning less than £21,000 who will be hit—800,000 low-paid, part-time workers, 90% of whom are women, will pay more. He denies that, but it is true. That is the reality.

[The Prime Minister]

indicated dissent.

[Edward Miliband]

The Prime Minister sits there shaking his head. He does not understand his own policy, and of course, he could not explain or justify what he did to everyone on low pay with the miserable deal cooked up with the Deputy Prime Minister to cut £1 billion from tax credits in the autumn statement yesterday. They have no explanation for why they are doing that—[Interruption.]

--- Later in debate ---

[Edward Miliband]

Let me try the Prime Minister on another matter. What will unemployment be at the time of the next autumn statement on the Office for Budget Responsibility forecast?

[The Prime Minister]

If we compare the end of this Parliament with the start of this Parliament, the Office for Budget Responsibility figures—let us remember that the OBR is independent, but when the right hon. Gentleman was sitting in the Treasury, the figures were fiddled by Ministers and advisers, and that no longer happens—show that 500,000 more people will be in jobs, 90,000 fewer people will be on the claimant count, and the unemployment rate will be 7.2% instead of 8.1%. That is the OBR’s forecast; it is not fiddled. The OBR is independent; and that is what the figures show.

Let me answer the right hon. Gentleman’s question, as I was not able to do so earlier, about helping the poorest people in our country. It is his party that got rid of the 10p tax—the biggest attack on the working poor. It is this Government who have taken 1.1 million people out of tax, who froze the council tax, cut the petrol tax, introduced free nursery care for two, three and four-year-olds, and are putting up the child tax credit by £390 this year and next. That is a record to be proud of, instead of the right hon. Gentleman’s appalling record of attacking the working poor.

[Edward Miliband]

With child poverty going up as a result of the autumn statement yesterday, the truth is that the Prime Minister could not answer the question because he is too embarrassed by the truth—[Interruption.] The Education Secretary should calm down. He tells children to behave; why does he not behave himself?

The Prime Minister is too embarrassed. There are 2.8 million people out of work according to the forecast of the Office for Budget Responsibility. He is another Conservative Prime Minister for whom unemployment is a price worth paying. Because he is failing on unemployment and growth, he is failing on borrowing. He told the CBI conference last year that, no ifs or buts, by 2015

“we will have balanced the books.”

Will he now admit that on the central test he set himself, he has failed?

[The Prime Minister]

The right hon. Gentleman complains about the level of borrowing, but his answer is to borrow even more. That is the utter illiteracy. Let me tell him what we are doing. Because we have a plan to meet the mandate and to meet the test set out by the Chancellor in his emergency Budget, we have some of the lowest interest rates in Europe. That is right; for every percentage point they went up under Labour, that would be another £1,000 on a family mortgage, another £7 billion out of business and another £21 billion on our national debt. That is what we would get under Labour and that is why it is this Government who will take the country through this storm.

[Edward Miliband]

The Prime Minister is borrowing an extra £158 billion to pay for his economic failure. The truth is that his plan has failed. He refuses to change course and he is making working families pay the price. At the very least, we now know that he will never, ever be able to say again, “We’re all in this together.”

[The Prime Minister]

The leader of the Labour party has taken sides today: he is on the side of the trade union leader who wants strikes and not negotiations and he is on the side of people who want to disrupt our schools, disrupt our borders and disrupt our country. And when it comes to borrowing, he cannot even bring himself to welcome the fact that there are low interest rates.

Let me tell him this. The shadow Chancellor—[Interruption.] Mr Speaker, they are all shouting in unison—[Interruption.] Or should that have been they are all shouting on behalf of Unison? I am not quite clear. Let me remind the House of what the shadow Chancellor said about low interest rates. He said that long-term interest rates are

“the simplest measure of monetary and fiscal policy credibility”.

That is what he said, and that is what this Government are delivering.

We are being tested by these difficult economic times. We will meet that test by getting on top of our debt and getting on top of our deficit. The Leader of the Opposition is being tested too, and he is showing that he is weak, left-wing and irresponsible.

[Jo Swinson (East Dunbartonshire) (LD)]

rose—

[Jo Swinson]

Q2. Thank you, Mr Speaker. I would like to associate myself with the words of condolence from the Prime Minister and Leader of the Opposition.Ten years on from the military intervention, more than 3 million girls in Afghanistan are now in school. With the Bonn conference on Monday, will the Prime Minister send a clear message that the rights of those girls should not be traded away in a false choice between women’s rights and security? The evidence shows that women’s involvement in post-conflict resolution is essential for stability.

[The Prime Minister]

First of all, may I wish my hon. Friend and everyone in Scotland or who is Scottish a very happy St Andrew’s day? She is absolutely right to talk about women’s rights in Afghanistan. All too often, we talk about security without talking about some of the things that that security is making possible. It is the case that whereas in 2001 there were fewer than 1 million children in school in Afghanistan, none of them girls, today there are 6 million children regularly in school, 2 million of whom are girls. All those of us who have been to Afghanistan and met women MPs and other leaders in that country who want to stand up for women’s rights know what an incredible job those people are doing, and we are on their side.

[Lilian Greenwood (Nottingham South) (Lab)]

Q13. According to the Office for Budget Responsibility, half a million more people will be on the dole in 2013 than previously thought. That is a terrible human cost, but how much more will be lost in tax and paid out in benefits as a result of his Chancellor’s economic failure?

[The Prime Minister]

What the OBR shows is that by 2015 we are going to have half a million more people in jobs, fewer people on the claimant count and a lower unemployment rate. But there is a serious point here, because the figures do show a sharp decline in public sector employment. That is shown by the figures. There is a much bigger increase in private sector employment.

What I would say to the Opposition—in fact, to everyone in the House—is that if we want to reduce the amount of unemployment from the public sector, we have to reform welfare, which they oppose, we have to freeze public sector pay, which they oppose, and we have to reform public sector pensions, where they are on the side of the irresponsible trade union leaders.

[Mr Laurence Robertson (Tewkesbury) (Con)]

Q3. Is the Prime Minister aware that in the last financial year, taxpayers paid more than £113 million to trade unions by way of paid staff time and direct grants? In the light of today’s disruption to hospitals and schools, is it not time to review that situation?

[The Prime Minister]

I think it is time. I do not think full-time trade unionists working in the public sector on trade union business rather than serving the public is right, and we will put that to an end. That is absolutely the case, and the evidence today makes that case even stronger.

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

Q4. Why are the Government freezing working tax credit, which helps the lowest paid workers, including those whose wages are too low for them even to pay tax, to make work pay?

[The Prime Minister]

As the hon. Lady knows, what we are doing with tax credits is that there will be a £255 increase this year, which is the largest ever increase in child tax credit, and there will be a further £135 increase next year—a 5.2% increase. I think that is the right increase in child tax credit. Helping those families, genuinely helping people to get out and stay out of poverty, helping on nursery education and helping to get low paid people out of tax is even more valuable.

[Jacob Rees-Mogg (North East Somerset) (Con)]

As the United Kingdom’s borders are being kept open today by patriotic volunteers, will the Prime Minister consider imitating the robust action of the late US President Ronald Reagan in relation to recalcitrant air traffic controllers?

[The Prime Minister]

I thank all those people, including a number from No. 10 Downing street, who are helping to keep our borders open and to make sure that Heathrow and Gatwick are working properly. Let me report to the House that the evidence so far suggests that about 40% of schools are open; less than a third of the civil service is striking; on our borders, the early signs are that the contingency measures are minimising the impact; we have full cover in terms of ambulance services; and only 18 out of 900 jobcentres have closed. Despite the disappointment of the Labour party, which supports irresponsible and damaging strikes, it looks like something of a damp squib.

[Mark Hendrick (Preston) (Lab/Co-op)]

Q5. May I ask the Prime Minister if he came into politics to sack three quarters of a million civil servants and public sector workers, most of whom are women and most of whom have families?

[The Prime Minister]

I came into politics to try to improve the welfare of people in our country. The fact is that, at the end of this public sector pension reform, those people working in the public sector will have far better pensions than most people in the private sector, who are contributing that money to them. [Interruption.] I know the Leader of the Opposition and the shadow Chancellor are paid to ask questions; they do not have to wave as well. [Interruption.] If they give the money back to the unions, I will calm down.

[Chris Kelly (Dudley South) (Con)]

Will my right hon. Friend join me in condemning the outrageous attack on our embassy in Tehran yesterday and in paying tribute to our diplomatic staff serving in such difficult environments with such distinction?

[The Prime Minister]

I certainly join my hon. Friend in doing that, and I am sure the whole House will join me in praising the incredible devotion of our staff in the foreign and diplomatic service, who often face great dangers, as they did yesterday in Tehran. I chaired a meeting of Cobra yesterday and another one this morning and spoke to our ambassador about the safety of his staff. That should be our No. 1 concern—their safety, their security and making sure those are maintained. After that, we will consider taking some very tough action in response to that completely appalling and disgraceful behaviour by the Iranians.

[Several hon. Members]

rose—

[Mr Graham Allen (Nottingham North) (Lab)]

Q6. What plans he has to change the machinery of Government to facilitate the implementation of early intervention policies; and if he will make a statement.

[The Prime Minister]

I lead a Committee of Cabinet Ministers that looks specifically at family issues, including the importance of early intervention, which is central to what the Government are trying to achieve. We believe that if we change the life chances of the least well off, we have a much better chance of genuinely lifting young people out of poverty and keeping them out of poverty. I take a close interest—as do my right hon. Friends the Secretary of State for Education and the Chancellor of the Exchequer—in the hon. Gentleman’s work, and in the real difference that he has made in prioritising early intervention in our country.

[Mr Allen]

I thank all three party leaders for their consistent support for early intervention and their generous welcome for my two reports. May I ask the Prime Minister to make early intervention in the lives of babies, children and young people a theme for all Departments in the next comprehensive spending review, so that not only will all children be able to make the best of their life chances, but Government and the taxpayer will be able to reduce the massive costs of failure—including educational underachievement, 120,000 dysfunctional families, summers of discontent, and many, many lifetimes wasted on benefits?

[The Prime Minister]

That is a very sensible suggestion. I think that we can look at it in the context of the next spending round, but I do not even want to wait for the next spending round. That is why the family Committee that I lead, and of which the Deputy Prime Minister is a member, is considering how we can make effective action such as intervention in the lives of the 120,000 neediest and most broken families. Government—all the different Departments—spend a huge amount of money on those families, but we are not satisfied that that money has been spent on actually intervening in the lives of those families, and trying to turn them around in order to solve their very real problems. We have a programme for doing that now, but I hope that the hon. Gentleman will continue with his very positive work.

[Andrew Rosindell (Romford) (Con)]

Q7. The Prime Minister will be aware that there remain 16 British overseas territories around the world where the Union flag still flies proudly. Will he pledge that Her Majesty’s Government will protect, defend and cherish the loyal subjects of all those territories?

[The Prime Minister]

I can happily give my hon. Friend that guarantee. Let me add that the overseas territories will remain British for as long as the people of those territories want to maintain their special relationship with us, and that the Union flag will continue to fly over the Governors’ residences. We are increasing our assistance to overseas territories—my hon. Friend will be familiar with what we are doing in St Helena with the airport—and, of course, next year is the anniversary of the liberation of the Falkland Islands, which will be a moment for genuine celebration in all overseas territories.

[Julie Hilling (Bolton West) (Lab)]

Q8. My constituent Jackie contacted me to ask how she is to manage with a 3% tax on her pension, no pay increase until 2013, and rocketing fuel and food bills. How is she to feed her family? Why is the Prime Minister making people like Jackie pay for his Government’s failure?

[The Prime Minister]

The fact is, I am afraid, that the whole country is having to pay for the failure of the last Government to get on top of debt and deficit, but what I would say to the hon. Lady’s constituent is that we are trying to help. That is why we are freezing council tax, cutting petrol tax, taking 1.1 million of the poorest people out of tax altogether, and increasing child tax credit in the way that I described earlier. We will continue to take all those steps, but I would say to the hon. Lady’s constituent—as I would say to all others—that the most dangerous thing that we could do now is lose control of our debts and see interest rates go up. When this Government came to power, our interest rates were at the same level as Italy’s. Today, Italy’s interest rates are 5% higher. If ours were at the same level, we would see higher mortgage costs and businesses going bust, and we would have a real problem in our country. That, however, is the policy of the Labour party.

[Fiona Bruce (Congleton) (Con)]

Q9. What message has the Prime Minister today for the thousands of people who run and work in small businesses in my constituency, who work tremendously hard to keep those businesses and the local economy going, and who, in some cases, can barely afford to make provision for their own pensions?

[The Prime Minister]

The hon. Lady is entirely right. This Government are squarely on the side of people who work hard, play by the rules, and want to do the right things for their families. Today I would say to all those people “Thank you for what you do to contribute to public sector pensions that are far more generous than anything that you are able to afford. For our part, we promise to ensure that public sector pensions remain strong but are affordable.” What is so notable about today is that the Labour party has taken the side of trade union leaders who want to disrupt our country.

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

Q10. With taxpayers set to pay up to £100 million to BAE Systems to make workers redundant, is the Prime Minister aware that £100 million would pay for five new Hawk planes to be built at Brough for our Red Arrows? Is that not a better use of £100 million?

[The Prime Minister]

I strongly support British Aerospace and all that it does. It is an extraordinarily strong British company. It has the full backing of the British Government and an enormous order book from us in terms of the strategic defence review. It also has massive backing from us in selling Hawk aircraft, Typhoons and Eurofighters all over the world to countries that need them. Clearly at Brough there have been issues and difficulties. That is why we have put in an enterprise zone, and we will do everything we can to help those people and help that company.

[Mr Mark Spencer (Sherwood) (Con)]

Q11. Does the Prime Minister share my belief, and until recently the belief of the Leader of the Opposition, that now is not the time to strike, before negotiations have been completed?

[The Prime Minister]

My hon. Friend makes a very good point. Just in case anyone did not get it the first time, let me say it again:

“These strikes are wrong at a time when negotiations are…going on”.

Negotiations are going on, so the Leader of the Opposition should think the strikes are wrong. He does not think that they are wrong, because he is in the pocket of the trade union leaders.

[Mr Frank Roy (Motherwell and Wishaw) (Lab)]

In every city and village in the country, home helps, carers, nurses and teachers are on strike for the very first time in their lives. These hard-working people—

[Mr Roy]

Well, we hear laughter from the Government Benches, but this is no laughing matter to hard-working families. Are these hard-working people out-of-touch left-wing trade union militants, as demonised by the two parties on the Government Benches, or are they men and women who have said to the Government, “Enough is enough”?

[The Prime Minister]

I know that people feel strongly about this, but we have a responsibility to deliver an affordable public sector pension system. We have rejected the idea of levelling down public sector pensions. What we will deliver on public sector pensions is a generous and fair offer that will give public sector pensioners, unlike others in our country, a defined benefit system. That is why Lord Hutton says that this is an incredibly generous offer. What a pity it is that the Labour party has left reality and will not back that view.

[Andrew Bingham (High Peak) (Con)]

Q12. The Prime Minister will know that I recently held a small businesses event in my constituency, and many of the businesses that attended complained bitterly about the red tape and bureaucracy that they have to jump through to deal with public bodies. What message can he send to these businesses, as we look to them to help rebuild the economy, about getting rid of some of this obstructive bureaucratic nonsense?

[The Prime Minister]

My hon. Friend is absolutely right to raise this subject. It is why we have introduced the red tape challenge, so that all these rules are published on line and businesses and individuals can tell us which ones can be scrapped without harming public safety. At the same time, we have the one-in, one-out rule so that Ministers cannot introduce a new regulation until they have scrapped an existing one. This Government are determined to scrap unnecessary regulation and to help small businesses to employ more people in our country.

[Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)]

At the last spending review, the Prime Minister said that the £110 rise in child tax credits would have an impact on child poverty. Now that he has taken away that rise and is freezing working tax credit, can he say how many more children will be in poverty in the coming year?

[The Prime Minister]

What we are doing in terms of child tax credit is that it is going to be £390 higher than at the time of the last election. That is a £255 increase this year, which is the largest ever increase in child tax credit. We are adding a further £135 next year—an increase of 5.2%. That is what is happening on child tax credit. Let me make this additional point. If the pension is increased, we see child poverty figures go up, under the definition used by the Labour party. I think that it is right that we increase the pension; I do not think that we harm the life chances of children by giving pensioners what we have given, which is a record cash increase in pensions next year.

[Amber Rudd (Hastings and Rye) (Con)]

Q14. May I ask the Prime Minister to ensure that this House remains a free and democratic institution, accountable only to voters? Does he share my indignation that some Members had to ask permission from the GMB to be here today? [Interruption.]

[Mr Speaker]

Order. There is a matter of basic courtesy here. The question from the hon. Lady should be heard. I think that she has completed her question, but it really is a lesson for the future. When questions are being asked, they should be heard with courtesy, and when the answers are given, whatever Members think of them, they should be heard with courtesy.

[The Prime Minister]

It is genuinely baffling to people that somebody who said that they would not back strike action while negotiations were under way has come to the House today to speak on behalf of trade union leaders. I want to say that it is a flashback to Neil Kinnock, but even Kinnock was not as bad as that.

[Owen Smith (Pontypridd) (Lab)]

Does the Prime Minister think it fair that the Chancellor yesterday decided to take just £300 million extra from the banks, and £1.3 billion from working families in this country? Is that a fair distribution?

[The Prime Minister]

What the Chancellor announced yesterday was that we will take £2.5 billion off the banks, not through a one-off bonus tax one year, but every year. It is this Government who are properly putting a tax on the banks, whereas the Labour party, year after year, gave knighthoods to Fred Goodwin, did not regulate the banks or tax them properly, and gave us the biggest boom and the biggest bust, from which we are having to recover.

[Roger Williams (Brecon and Radnorshire) (LD)]

Q15. While I welcome the reduction in corporation tax, which will encourage the businesses affected to expand, 90% of the businesses in my constituency are not incorporated and will not benefit from the tax reduction. Will the Prime Minister ensure that in the spring Budget those businesses are given similar tax incentives to ensure that they grow to their full potential, in the economy and the communities they serve?

[The Prime Minister]

May I again praise the hon. Gentleman for the magnificent specimen lurking underneath his nose? We will not wait until the Budget to help those small businesses: we have already extended the rate relief freeze for small businesses, and the national loan guarantee scheme, which will help small businesses to access credit, will be up and running soon.

[Mr Speaker]

Order. We now come to the statement from the Minister for the Cabinet Office and Paymaster General. I appeal to right hon. and hon. Members leaving the Chamber to do so quickly and quietly, so that the Minister can deliver his statement and the House can listen to and hear it.