(8 years, 8 months ago)
Commons ChamberIt is very good of you to give me the floor, Mr Speaker.
I do not think that the Prime Minister has done anything wrong, except, possibly, to comment on the Jimmy Carr case. Tax evasion is illegal and should be very vigorously pursued, if necessary with criminal prosecution and imprisonment. Tax avoidance is not illegal. If the Government or Parliament do not like it, there is no point in moralising. Does the Prime Minister agree that to deal with tax avoidance we need reform to close the loopholes, and vigorous tax simplification to ensure that there are fewer of them?
I am very glad that my right hon. Friend was detained before leaving the Chamber. I think that he is absolutely right. Tax evasion is illegal, and tax avoidance, if the Government disapprove of it, should be legislated against. That is the approach that we have taken. However, as I have said before and am happy to say again, there are some practices of very aggressive tax avoidance that I think do merit proper questions and then legislative action. To be fair to Jimmy Carr, as soon as it was pointed out that he was in a scheme to reduce his income artificially, he immediately changed his arrangements. He made that very clear, and I pay tribute to him for doing it.
(8 years, 9 months ago)
Commons ChamberIs it not incumbent on those who do not accept the Budget cuts to tell us how else they would reduce the deficit?
My right hon. Friend is right. There is a series of difficult decisions that we have to take when facing an 11% budget deficit, as we were in 2010, and we still need to get this country back to surplus. I would argue that this is not some artificial target. We have to make sure that in the good years we are putting aside money for a rainy day. That is what this is all about. It does involve difficult decisions. We do not always get those decisions right—I am the first to say that—but it is very important that we stick to the long-term economic plan of getting this country back into the black.
(8 years, 10 months ago)
Commons ChamberI am certainly having that conversation. My message to businesses is: if you have a view, make sure you tell people. Talk to your customers and your suppliers, and above all talk to your employees, your staff and your colleagues, because this issue is so important.
In truth, the business voice, large and small, is very much in favour of Britain staying. Many of them have said quite generous things about this renegotiation because they recognise the dangers, particularly in the area of safeguarding ourselves against discrimination because we are not in the euro. Given that, I hope that business and enterprise will speak clearly in the next four months.
Much of the protection of the euro-outs in this agreement rests on a safeguard mechanism that is set out in annex 2, but as far as I can tell, that requires nothing more than that a discussion be held about the UK’s concerns at ECOFIN—not even the European Council. That leaves eurozone members free to enforce their will by qualified majority voting. Will the Prime Minister explain what—beyond the discussion, which can be ignored—has been achieved by the safeguard mechanism?
I absolutely can answer that, and I think it is an important question. There are two things here. First, a set of principles is set out in section A on economic governance, and they are principles of non-discrimination, no cost, and no disadvantage. Crucially, paragraph 4—this was of real concern to the Bank of England and I know it will be of concern to my right hon. Friend’s Committee—makes it clear that the financial stability of member states whose currency is not the euro is a matter for their own authorities and own budgetary responsibility. Those principles are very important, and what is exciting about this is not only that they have been set out for the first time, and not only has Europe for the first time accepted that there are other currencies inside the European Union, but those changes will be incorporated into the treaties. The mechanism is something over and above a new way of ensuring that issues are raised, should we wish to raise them, at the level of the European Council. We do not have that protection today, but making the principles part of the treaty—already an international legally binding decision—is hugely important. If my right hon. Friend listens to people who speak on behalf of financial services, the Bank of England and others, he will recognise that this is really important progress for Britain.
(9 years, 2 months ago)
Commons ChamberThe right hon. Lady is absolutely right; it has taken far too long to get this sort of change in place. This is, however, exactly the sort of change that the British process of renegotiation and a referendum is putting squarely on the table. I shall look carefully at her suggestion as we go into the detailed phase of the negotiations to ensure that we get the right sort of deal.
Further to the question that has just been put, the EU institutions were specifically designed as a ratchet to deliver ever-closer union year by year. Whatever protections the Prime Minister secures in these negotiations are therefore at risk of being clawed back over time. In the light of that, does he agree that if renegotiation is to succeed in the longer term, we shall need major reform of how the EU takes its decisions in order to give a much stronger voice to member states and Parliaments, and to enable what has hitherto been a one-way street towards ever-closer union to be decisively challenged?
My right hon. Friend makes an important point. I would argue that specifically getting Britain out of ever-closer union is not just symbolic; it would also have a legal effect. We can boil down into a single sentence what is required to make a success of the organisation: it is has to be just as possible to be a successful member of the European Union outside the eurozone as it is inside it. That is where things really need to change. The European Union needs to recognise that the same set of processes and decision making is not going to be right for both types of membership. If we can achieve that change, we will have achieved something very important for the UK.
(9 years, 3 months ago)
Commons ChamberI will certainly look at that suggestion and the academic the hon. Gentleman quotes.
Given that at least part of the humanitarian crisis derives from regional instability caused by the Iraq war, I welcome the Prime Minister’s statement, because we bear a particular responsibility for it. Does he agree that the US, which contributes only half as much as the UK in Syrian aid as a proportion of GDP, and which has accepted scarcely any asylum seekers at all, should now also respond and do more, and will he ask the US Administration to do so?
I obviously look forward to discussing this matter with President Obama, but let us be fair, the US is the largest aid donor to Syria, and I am sure we will go on encouraging it and others to do more, just as we have kept our promise about the 0.7%.