(13 years, 10 months ago)
Commons ChamberOrder. There is a lot of interest and little time, so brevity both from Back Benchers and Front Benchers is vital.
How will we be less bossed about and over-regulated as a result of these changes?
Liberal Democrat Back Benchers welcome the statement on the grounds of cost, improved efficiency and, above all, embarking on dealing with the problem of democratic deficit. However, behind the names of these organisations there are many people genuinely fearful for their jobs. Will the Minister emphasise this line in his statement: “For those bodies that we are abolishing, I should stress that in many cases this does not mean the end of the function”? That is very important, and that reassurance needs to be made to many other people.
On the ending of Consumer Focus and the passing of its responsibilities to citizens advice bureaux, the Minister is aware that there are many concerns about funding for Citizens Advice at a central level. What discussions has he had with his colleagues about enhancing the role of CABs and, indeed, increased funding—
I am extremely grateful to the hon. Gentleman, and I will be grateful to the Minister for a brief reply.
My hon. Friend makes a perfectly proper point about staff. We hope that jobs will not be lost, although some will be; we recognise that every single one is a personal disaster for the family involved. The chief executives of all bodies affected by the changes I am announcing should have communicated with staff this morning to give them as much certainty as possible about the future.
As regards Consumer Focus and consumer activities, the funding implications are being considered by my right hon. Friend the Business Secretary, and results will emerge in due course. We recognise that we cannot just hand these functions over to outside bodies without any resource implications.
(13 years, 10 months ago)
Commons ChamberI beg to move, That the clause be read a Second time.
With this it will be convenient to take the following:
Amendment 4, page 1, line 1, leave out clause 1.
Amendment 3, in clause 2, page 3, line 14, at beginning insert ‘Subject to subsection (2A),’.
Amendment 2, page 3, line 14, at end insert—
‘(2A) Section 1 shall not come into force until the Minister has laid a report stating that the affected members of the relevant trade unions under section 2(3) of the Superannuation Act 1972 have given their approval by means of ballots to the terms of section 1, and the House of Commons has come to a Resolution on a Motion in the name of a Minister of the Crown approving the report.’.
Amendment 5, in title, leave out from ‘provision’ to end and insert
‘modifying the effect of section 2 (3) of the Superannuation Act 1972 for benefits to be provided by way of compensation to or in respect of persons who suffer loss of office or employment.’.
Government amendment 1.
In my statement to the House in July and again on Second Reading in September, I made it clear the Government’s intention is to make the civil service compensation scheme affordable, and I set out our intention to legislate to underpin the negotiations to achieve that. However, I have made it clear at all stages—and I make it clear again today—that our principal aim has been to reach a negotiated settlement with all six civil service unions to introduce a new successor scheme that would provide, in particular, better protection for lower-paid civil servants.
The current civil service compensation scheme is unaffordable and completely out of kilter with practice in the rest of the public sector, let alone in the private sector, and it actually makes more likely redundancies among the lowest paid and shortest-tenured civil servants. The previous Government recognised that and engaged in protracted negotiations over many months—indeed, over several years—with the Council of Civil Service Unions to try to reach agreement on a successor scheme. I pay tribute today, as I did on the previous occasion, to the right hon. Member for Dulwich and West Norwood (Tessa Jowell) and her predecessors, who persisted in trying to get full agreement from all members of the Council of Civil Service Unions.
Despite those months of negotiations, the previous Government were unable to achieve full agreement. I understand that it looked as though an agreement was there, but at the last minute the PCS—the Public and Commercial Services Union, the largest of the civil service unions—pulled out, leaving a proposed new scheme in place that had been agreed by five unions, but not by the sixth.
Given the extensive consultations and negotiations that took place, which gained agreement from five out of the six unions, the previous Government felt and concluded—I said at the time that I agreed—that it was only right that one union should not hold the right of veto on any change. So in April the previous Government imposed a new compensation scheme that reflected the agreement with the five unions. But for the action of the PCS, that might have been where the story ended, but the subsequent actions of the PCS have led us to where we are today.
The PCS challenged in the High Court the right of the Government to impose a settlement in such circumstances and the Court subsequently quashed the February scheme. So almost literally on my first day in office after the election, I was confronted with a situation in which the previous civil service compensation scheme was still in force and had not been reformed at all. That scheme, as I have said, is completely unaffordable, inherently unfair and in urgent need of reform. It was striking that on Second Reading, when this issue was extensively and thoroughly debated in a constructive and open spirit with no element of partisanship creeping in, every Member who spoke agreed that the current scheme was unsustainable and needed reform. There was complete consensus across the House.
The current compensation scheme is extremely generous compared with the rest of the public sector, let alone private sector, equivalents. A comparison with the statutory redundancy scheme shows that payouts, particularly for lower-paid workers in the private sector, are capped at 32 weeks’ pay at a maximum weekly pay that is still, I think, capped at £380. The maximum that can be paid out to anyone under that scheme is less than £12,000. By contrast, the maximum value under the civil service scheme is the equivalent of six years and eight months’ salary. Typical schemes in the private sector—particularly the statutory scheme—pay one week’s salary for each year worked. The civil service scheme pays at least four times that amount—a month’s salary for each year worked, and in some cases up to three months’ salary for each year of service.
The previous Government spent £1.8 billion on civil service redundancy payouts in the last three years, including a number of spectacular six-figure settlements for individuals. The result of the scheme’s being so generous and unaffordable is that Departments cannot afford to make civil servants redundant, even if they are willing to go voluntarily, if they are highly paid and of long tenure. If Departments need to save money—as they had to under the previous Government and as they will have to under the coalition Government—through redundancies, they simply cannot afford to choose those individuals on high pay and long tenure. In order to make the same savings in salary terms, they need to make many more lower-paid and shorter-tenured staff redundant. The unjust effect of the current scheme’s being so badly structured and unsustainable is that if it were allowed to remain in place, more civil servants would lose their jobs and more civil servants on lower pay would lose their jobs. The coalition Government are not willing to see that happen.
(13 years, 11 months ago)
Commons ChamberI join the Secretary in State in condemning attacks by dissident republicans on police personnel, property and community. I also join him in thanking the shadow Secretary of State and the shadow Minister for their work in Northern Ireland over recent years.
I would like to move on in respect of terrorist violence in Northern Ireland to today’s findings of the Independent Monitoring Commission, which state that the Ulster Volunteer Force leadership sanctioned the murder of Bobby Moffett and that it could have stopped it if it had wanted. I am sure that the Secretary of State and all Members would agree that that should be viewed very seriously. Does the right hon. Gentleman agree that it undermines the assurances that we were given about UVF decommissioning? Does he have no concerns that a decision not to re-categorise the UVF ceasefire will send a signal that a planned killing is par for the course and represents an acceptable level of violence? Does he further agree that all this raises the question of when is a ceasefire a ceasefire?
I am grateful for the hon. Lady’s question. This was a disgusting murder, carried out at just after 1 o’clock in the afternoon in front of good, ordinary people going about their daily business, and it should be utterly condemned. The IMC report makes clear how extremely serious the matter is, but it does not recommend that we consider specification. We in Westminster, those in Stormont, the police, those responsible for security in Northern Ireland and, above all, the community have to bear down on this small number of people. I pay tribute to the very large number of people who turned out for the funeral, showing what the local community really thinks.
Let me put the right hon. Gentleman straight: my right hon. Friend the Secretary of State and I meet Treasury Ministers regularly and have done of late, not least to discuss the issue that confronts us all to do with the Presbyterian Mutual Society, and we will continue to do so. The right hon. Gentleman makes a very good point, however, in that this issue brings to the fore once more the fact that it is completely unacceptable and unsustainable in the longer term for Northern Ireland’s economy to be so dependent on the state sector—the relevant figures are about 70% as opposed to 30% for the private sector. We have to address that, such as by looking at other ways to kick-start the private sector, not least through corporation tax measures. We have to look at enterprise zones, too. All those things we are doing—
4. What progress he has made in discussions with the Northern Ireland Executive and the Chancellor of the Exchequer on changes to corporation tax in Northern Ireland.
The right hon. Gentleman will know that Northern Ireland is over-dependent for a very good reason: because of the troubles. The answer to the question is contained in the report produced by Sir David Varney for the Treasury, and it is that £300 million would be taken out of the block grant. I simply say to the right hon. Gentleman that the net cost to the Exchequer for 10 years would be estimated at £2.2 billion. He is a very good sort of fellow, so why does he not level with the people of Northern Ireland? Just as his party’s electoral pact with the Ulster Unionists left them with nothing, just as his party’s talks on the Presbyterian Mutual Society look like leaving small investors with nothing, the promises on corporation tax will result in at best nothing and at worst an invitation to his right hon. Friend the Chancellor to wield the axe.
Order. I ask for brevity, please, from Front Benchers; other Members want to get in.
I am sorry that the tone has descended. All my colleagues in Front-Bench positions inherited the odd prawn behind the radiator. We inherited Northern Ireland and a whole bag full of old langoustines stuck under a radiator going at top speed. We face a long-term problem with the economy. The Varney report is, sadly, now out of date. It cited a figure of more than £300 million, whereas the independent Northern Ireland Economic Reform Group, which carried out a detailed study of the benefits that a reduction of corporation tax would bring, gave a lower figure. The fact is that we do not know yet, and we will be studying this in detail and introducing our proposals later in the autumn.
My apologies for missing the joke. Next time I will look more carefully. I did not know that we were allowed props, Mr Speaker, but obviously you take a more relaxed view of these things.
My hon. Friend raises a very important point and the conference—[Interruption.]
Order. I may take a relaxed view about some things, but not about excessive noise. The Prime Minister must be heard.
My hon. Friend raises a very important point about the millennium development goals, set in 2000 and meant to be completed by 2015, and there is a vital conference, which the Deputy Prime Minister will be attending next week, on that specific issue. This country—this applies to parties on both sides—can hold its head up high, given that we are going to hit the 0.7% target of gross national income going to aid. That means that we will be playing our part in making sure that those vital MDGs are met. It is important, although spending decisions are going to be difficult, that we hold our head up high not only overseas but at home and say, “This is right, to help the poorest in our world, even when we have difficult budget decisions at home.”
One person’s announcement is another person’s sneaking out; I do not quite understand that. Let me tell the person who was largely responsible for designing Building Schools for the Future what a completely shambolic and disastrous programme it was. It took three years and £250 million before a single brick was laid; well, maybe we should assess that. The other thing that we could perhaps assess—it is worth reminding people of this—is the bureaucracy of Building Schools for the Future. There were nine meta-stages to putting in a bid. Each of the nine stages had further sub-stages. This is what a local authority had to do—[Interruption.] Well, the hon. Gentleman was responsible for the programme; I am sure this will be a trip down memory lane for him. [Interruption.]
Thank you very much.
Local authorities that wanted to get involved needed a partnership for schools director, a director of education project adviser, a 4Ps adviser, an enabler from the Commission for Architecture and the Built Environment—[Interruption.] I am sorry the list is so long, but it goes on and on. [Hon. Members: “Answer the question!”] The answer is that it was a disastrous programme, completely overspent and totally out of control. The last Government had announced 50% cuts and had not told us where a penny was coming from, and the hon. Gentleman is largely responsible for it.
Q12. I want to help the Prime Minister to reconsider the fact that we are not signing up to the directive on human trafficking, which, as he may understand, I know a little about. As a consequence, we rely on sections 57 and 59 of the Sexual Offences Act 2003. That means that we cannot, for example, pursue or have any jurisdiction over someone who is normally a resident of the UK but is not a UK national, who is involved in human trafficking. More importantly, we cannot have jurisdiction when a UK resident in another EU country is trafficked by a non—
I will obviously listen very carefully to what the hon. Gentleman says, and perhaps he would like to set out in detail why he thinks this is so important. The point is that the UK’s victim care arrangements are already in line with internationally agreed standards, as set out in the Council of Europe convention on trafficking. The UK already does what is required by the proposed directive on assisting victims, so the proposed directive would not improve the provision of victim care. Those are the facts, and Opposition Members need to engage with that point.
(13 years, 11 months ago)
Commons ChamberOrder. A great many right hon. and hon. Members are seeking to catch my eye, so I appeal for short questions and short answers.
I thank the shadow Lord Chancellor for his courtesy in telling me a short while ago that he was going to mention what I had said on this matter. As this might really be his very last appearance at the Dispatch Box—we hope for a Frank Sinatra-style comeback, of course—I should like to pay tribute to him and wish him well on behalf of Members on both sides of the House. He will recall that we have argued over this matter for more than five years. The previous Government delayed and delayed, but at the eleventh hour they at last brought in individual voter registration. However, they still built in delays. Of course I have said in the past that I do not want anything to undermine the integrity of the democratic system, and I stick to that, but nothing that the Minister has said today appears to undermine that integrity. On the contrary, he has said that he will proceed carefully, step by step, and he has assured us that he has learned from the Northern Ireland experience. Also, the new system that he has devised will save money as well as time.
At the moment, we send national insurance numbers to young people who are approaching their 16th birthday, yet, on the declaration form that goes to the local authority, only those who are 17 and older are identified. How can we ensure that we pick up those who are 16 and over and put them into the registration process in anticipation? Would it be possible to promote this through the schools system? The other thing I would like to ask is about the arrangements that are going to be made to check up on those living abroad. What will happen? Is there any capacity to—
Order. May I gently explain to the hon. Lady that on these occasions Members should ask a single, short supplementary question? She has had a good run, but we will leave it there for today.
The hon. Lady’s first point was valid. This is indeed something that the chief electoral registration officer in Northern Ireland has been doing—working with schools and also picking up the points the hon. Lady makes about national insurance numbers. In her evidence to the Select Committee on Political and Constitutional Reform yesterday, the chair of the Electoral Commission drew attention to the work in Northern Ireland that has been particularly effective at getting younger voters on the register. That is exactly the sort of thing that we will be able to do once we introduce individual registration and make individuals responsible for registering to vote.
Order. May I just say to the hon. Member for Vale of Clwyd (Chris Ruane) that anybody would think he was auditioning to be a television sports commentator judging by the frequency of his sedentary interventions? He had his go much earlier—he did very well out of me. He should now listen to the Minister’s reply.
The whole point of using the data-matching pilots and so forth is so that the electoral registration office can identify eligible voters and encourage them to register to vote. It would not be right to use population data because constituencies should be based on eligible voters and not everyone who lives in a certain area is eligible to vote in parliamentary elections. That is why it is not right to use census data. We should use electoral registration data instead.
(13 years, 11 months ago)
Commons ChamberI have it in command from Her Majesty the Queen to acquaint the House that Her Majesty, having been informed of the purport of the Bill, has consented to place her prerogative, so far as it is affected by the Bill, at the disposal of Parliament for the purposes of the Bill.
I am grateful to the Deputy Prime Minister and I invite him to introduce the measure and address the House.
(13 years, 11 months ago)
Commons ChamberAs the right hon. Member will know, anyone can seek judicial review in normal practice, but on the criteria given to the boundary commissions, it is worth stressing that they will retain their existing ability to refer to local links, geography, county boundaries and so on, but subject to a principle of equality. That is a simple—yes, it is simple—straightforward principle of equality that we are enshrining in the legislation.
By having more frequent boundary reviews—one every five years—constituencies will be kept more up to date, reflecting changes in where people live. In order to make that possible, we are changing the consultation process. Consultation is, of course, vital, but as leading academics concluded in a report published just last week, local inquiries have become “the playthings” of political parties and have had, in practice, little impact on the commissions’ final recommendations, so we will abolish local inquiries. Instead, we will triple the time that people have to make representations to the commissions to have their say—from one month to three months. Residents will have—
Order. I apologise for interrupting the Deputy Prime Minister. Let me assure him and the House that I am no authority on the subject of the equality of size, but the reason I rise is that the House should know that no fewer than 74 Back Benchers are seeking to speak in the debate, so a little self-restraint is necessary. The more noise and the longer the Front Benchers take with their speeches, the greater the delay.
Aside from these improvements, the arrangements for drawing the boundaries will remain untouched. For more than 60 years, the responsibility for drawing constituency boundaries has rested with the four independent boundary commissions. That guarantee of impartiality will remain. This is not, as some critics have sought to suggest, an elaborate attempt to gerrymander the boundaries, because the Government will have no say in where the new constituency perimeters will fall.
Order. It is helpful if the Deputy Prime Minister indicates clearly to whom he is giving way.
I said I was giving way to the right hon. Lady. Is the hon. Member for Sheffield South East (Mr Betts) answering to that?
(14 years ago)
Commons ChamberThe Deputy Prime Minister talks a good talk about devolution and localism, but that is about all he does. In fact, he and the Business Secretary acquiesced in the abolition of the regional development agencies. I have here a letter from him in which he acquiesced in the abolition of Government offices—one of the few areas in which local representatives can have an input.
Will the Deputy Prime Minister now give an undertaking to the House that he will intervene on his colleagues in the Government to make sure that the new regional growth fund decisions have a proper input from elected councils and local authorities, rather than—
I am interested that the hon. Gentleman should think that the abolition of the regional development agencies and Government offices is somehow a blow against localism. Our view is that the Government offices had become a representation of Whitehall in the regions, rather than a voice for the regions in Whitehall. Equally, some RDAs do a good job, but he knows as well as I do that many local communities do not identify with regional development agencies. That is why we were right to say that it was up to local communities to come together with the private sector and others to create local enterprise partnerships, which are genuinely representative of what local communities want.
Order. Let me say to the right hon. Gentleman that the second question needs to be shorter.
The Minister has obviously not read his own Bill. If community cohesion is good enough for separate seats on the outer isles of Scotland and for the invention of an entirely artificial rule to protect the seat of a former leader of the Liberal Democrats, why is it not good enough for the rest of the United Kingdom?
Order. Witticisms aside, I want to hear the reply of the Deputy Prime Minister.
My constituent Karen Taylor received a letter from the Deputy Prime Minister on 21 June saying that we can cut public spending in a way that is fair and responsible and asking her to provide ideas about getting more for less, not to hold back, to be innovative, radical and challenge the ways things are done. I know that my constituent has replied to you, indicating that she wants you to invest more in public services, to pull the economy out of recession and stop the use of consultants. How do you intend to reply?
Order. I do not intend to reply at all, but I hope that the Deputy Prime Minister does.
I certainly agree with the last suggestion—that there was a bonanza of consultants in the programmes conducted by the last Government. One consultant was even made a millionaire from the fees alone in the Building Schools for the Future programme. So of course we need fewer consultants. As the hon. Gentleman knows, we have entered government having to deal with a very difficult situation. The last Government announced £50 billion of cuts, but had not bothered to tell people what they meant in practice, so we are having to do the work for them. The structural deficit is £12 billion higher than we were told by the previous Government. These are difficult decisions. However, I hope the hon. Gentleman will agree that what we have said in the Budget on increasing the allowance—the point at which people start paying income tax—on the extra, including up to £2 billion over the coming years in child tax credits, on the guarantee that pensions will be increased by 2.5% above inflation—
T10. [11091] Just this morning, the Deputy Prime Minister sent us all a very helpful letter about the forthcoming Bill on the alternative vote system and so on. In it, he wrote: “The Government also believes it is important to give people a choice over their electoral system.”Given that, why will the forthcoming referendum offer only a choice between first past the post and AV, which he himself described as a pathetic excuse for a voting system? Why will it not also offer the single transferable vote?
I thank the hon. Gentleman for that answer. Individual voter registration is something that the Electoral Commission has always favoured and has passed through this House on the promise that steps would be taken to ensure that it did not impact on the number of people registered to vote. Has he had any discussions with the Commission about what it is going to do to ensure that individual voter registration, which has now been speeded up by the current Government, will not mean that thousands and thousands of extra people are not registered to vote?
Let me say to the hon. Gentleman and others that there are other questioners. Questions need to be a lot shorter and sharper.
The Electoral Commission is extremely concerned to maintain the accuracy and completeness of the register, and the hon. Gentleman is right to raise the point. It now awaits the Government’s bringing forward of their proposals on speeding up individual electoral registration. It will then, of course, give its advice to Government in the usual way.
(14 years, 1 month ago)
Commons ChamberI congratulate my hon. Friend on her part in getting that to happen, and her council on taking that admirable attitude. One reason why we are so keen to decentralise and to give councils much more responsibility and power is precisely that they can then take sensible local initiatives of that kind to encourage local and community groups to flourish, which of course is part of our big society agenda.
Order. May I just appeal to the right hon. Gentleman to face the House so that we can all enjoy his mellifluous tones?
The whole point is to bring together young people from different backgrounds, rather in the way that national service was a great leveller. People from all sorts of backgrounds and geographies came together to work together, and that did promote cohesion. We are especially concerned that young people from disadvantaged backgrounds should not be excluded from this process. I hear what my hon. Friend says and it would be good if one of the pilot schemes next year could involve disadvantaged young people from his constituency. [Interruption.]
Order. An enormous number of private conversations are taking place in the Chamber, and it is not only unseemly, but unfair on the Member asking the question and on the Minister to whose reply we all wish to listen.
North Yorkshire county council has four fantastic outdoor education centres, including Bewerley park in Nidderdale in my constituency. I suspect that my right hon. Friend does not have time for potholing, but would he come and meet me so that I can show him how those four centres could deliver on the national citizens programme?
For some people, two weeks is too long. That is the whole point. If a target contributes to good clinical outcomes, it stays; if it does not, it goes.
Now let the right hon. and learned Lady answer a question. Is it your policy—[Interruption.] I know that the right hon. and learned Lady is not involved in the leadership election, which basically involves sucking up to the trade unions, but she is capable of answering a question. Is it Labour policy to cut the NHS?
Order. I hope that the right hon. and learned Lady will confine herself—as I know she will want to do—to her role, which is not to answer questions but to ask them.
Thank you, Mr Speaker, and the Prime Minister has still not answered. He is obviously ditching the guarantee for cancer patients, but he has not the guts to admit it to the House. Perhaps he can be more straightforward with this question. The White Paper says that his reorganisation of the NHS will mean extra up-front administration costs, but it does not give the figure. Surely he must know the figure. How much extra will it cost next year?
We are not reorganising the bureaucracy; we are scrapping the bureaucracy. Is it really Labour’s great new tactic that the right hon. and learned Lady will be left defending the bureaucracy of primary care trusts and strategic health authorities and all the quangos and all the bureaucrats, all of whom are paid vast salaries and huge pensions? Is that the new divide in British politics: they back the bureaucracy, we back the NHS? [Interruption.]
Order. The hon. Member for South West Bedfordshire (Andrew Selous) should calm himself. If he is trying to catch my eye, he has not got much chance at this rate.
Voluntary organisations and charities were not responsible for the banking crisis, nor for the financial crisis left by the last Labour Government. As we both value voluntary organisations and charities, will the Prime Minister discuss with his Treasury colleagues how the increase in VAT that those organisations have to pay can be refunded to them?
Order. Much as it might be fascinating to hear the Prime Minister’s reply, I do not think it is a matter of Government responsibility at all.
Q4. Taking account of the measures in the Budget and the briefing the Prime Minister has received from the Treasury, does he believe that unemployment in the north of England in 12 months’ time will be higher or lower?
(14 years, 1 month ago)
Commons ChamberI thank the Prime Minister for acknowledging dimensions of this issue that the previous Government either denied or dithered about. Does he also accept, however, that not all of us can join in the canonisation of the security services, because many of us believe that they were complicit in some of worst crimes carried out by both loyalists and republicans in Northern Ireland? Can the Prime Minister address the peculiar sequence that now seems to be in front of us: mediation, compensation, then investigation by this inquiry—and then, presumably, adjudication and publication thereafter? Might that not be a self-frustrating sequence?
(14 years, 1 month ago)
Commons ChamberWith permission, Mr Speaker, I would like to make a statement on the Government’s proposals for parliamentary reform.
Every Member of this House was elected knowing that this Parliament must be unlike any other—that we have a unique duty to restore the trust in our political system that has been tested to its limits in recent times—and if anything was clear at the general election it was that more and more people realised that our political system was broken and needs to be fixed. They want us to clean up politics. They want to be able to hold us properly to account.
So the Government have set out an ambitious programme for political renewal, transferring power away from the Executive to empower Parliament, and away from Parliament to empower people. That programme includes: introducing a power of recall for MPs guilty of serious wrongdoing; tackling the influence of big money as we look again at party funding; taking forward long overdue reform of the other place; implementing the Wright Committee recommendations, and taking steps to give people more power to shape parliamentary business; speeding up the implementation of individual voter registration; and increasing transparency in lobbying, including through a statutory register.
Today, I am announcing the details of a number of major elements of the Government’s proposals for political reform. First, we are introducing legislation to fix parliamentary terms. The date of the next general election will be 7 May 2015. This is a hugely significant constitutional innovation. It is simply not right that general elections can be called according to a Prime Minister’s whims, so this Prime Minister will be the first Prime Minister to give up that right.
I know that when the coalition agreement was published there was some concern about these proposals. We have listened carefully to those concerns, and I can announce today how we will proceed, in a Bill that will be introduced before the summer recess. First, traditional powers of no confidence will be put into law, and a vote of no confidence will still require only a simple majority. Secondly, if after a vote of no confidence a Government cannot be formed within 14 days, Parliament will be dissolved and a general election will be held. Let me be clear: these steps will strengthen Parliament’s power over the Executive. Thirdly, there will be an additional power for Parliament to vote for an early and immediate Dissolution. We have decided that a majority of two thirds will be needed to carry the vote, as opposed to the 55% first suggested, as is the case in the Scottish Parliament. These changes will make it impossible for any Government to force a Dissolution for their own purposes. These proposals should make it absolutely clear to the House that votes of no confidence and votes for early Dissolution are entirely separate, and that we are putting in place safeguards against a lame-duck Government being left in limbo if the House passes a vote of no confidence but does not vote for early Dissolution.
I am also announcing today the details of the Government’s proposals to introduce a Bill before the summer to provide for a referendum on the alternative vote system, and for a review of constituency boundaries in order to create fewer and more equally sized constituencies, cutting the cost of politics and reducing the number of MPs from the 650 we have today to a House of 600 MPs.
Together, these proposals help to correct the deep unfairness in the way we hold elections in this country. Under the current set-up, votes count more in some parts of the country than others, and millions feel that their votes do not count at all. Elections are won and lost in a small minority of seats. We have a fractured democracy, where some people’s votes count and other people’s votes do not count; where some people are listened to and others are ignored. By equalising the size of constituencies, we ensure that people’s votes carry the same weight, no matter where they live. Only months ago the electorate of Islington North stood at 66,472, while 10 miles away, in East Ham, the figure was 87,809. In effect, that means that a person voting in East Ham has a vote that is worth much less than a vote in Islington North. That cannot be right. These imbalances are found right across the United Kingdom.
Reducing the number of MPs also allows us to bring our oversized House of Commons into line with legislatures across the world. The House of Commons is the largest directly elected Chamber in the European Union, and it is half as big again as the US House of Representatives. It was never intended that the overall size of the House should constantly keep rising, yet that is precisely the effect of the current legislation—the Parliamentary Constituencies Act 1986. Capping the number of MPs corrects that, and it saves money too. Having 59 fewer MPs saves £12 million a year on pay, pensions and allowances alone.
On the referendum, by giving people a choice over their electoral system, we give that system a new legitimacy. Surely, when dissatisfaction with politics is so great, one of our first acts must be to give people their own say over something as fundamental as how they elect their MPs. The question will be simple, asking people whether they want to adopt the alternative vote, yes or no; and the precise wording will be tested by the Electoral Commission. [Interruption.]
As for the date of the referendum, in making that decision we have been driven by three key considerations: first—[Interruption.]
Order. I am sorry to interrupt the Deputy Prime Minister. The statement by the Deputy Prime Minister must be heard with courtesy. If Members want to question him, they will have the chance to do so. The Deputy Prime Minister will be heard.
The first is that all parties fought the general election on an absolute pledge to move fast to fix our political system, so we must get on and do that without delay; secondly, it is important to avoid asking people to keep returning to the ballot box; and finally, in these straitened times we must keep costs as low as possible. That is why the Prime Minister and I have decided that the date for the referendum on the Bill will be 5 May 2011, the same day as the elections to the devolved legislatures in Scotland, Wales and Northern Ireland, and local elections in England. That will save an estimated £17 million. I know that some hon. Members have concerns over that date, but I believe that people will easily be able to distinguish between the different issues on which they will be asked to vote on the same day.
Our Bill will make explicit provision for the Boundary Commissions to report on more equally sized constituencies and for the process to be completed by the end of 2013, allowing enough time for candidates to be selected ahead of the 2015 election; and we will ensure that the boundary commissions have what they need to do that. That means that, in the event of a vote in favour of the alternative vote, the 2015 general election will be held on the new system, and according to new boundaries. These are complementary changes—the outcome of the referendum is put in place as the new boundaries are put in place, too.
The Bill will require the Boundary Commissions to set new constituencies within 5% of a target quota of registered electors, with just two exceptions: Orkney and Shetland, and—[Laughter.]
The exceptions are Orkney and Shetland, and the Western Isles, which are uniquely placed, given their locations.
Order. I am sorry to have to interrupt the Deputy Prime Minister, but the hon. Member for Isle of Wight (Mr Turner) must not, however strongly he feels, shriek from a sedentary position in that way. It is very unseemly and, if I may say so, very untypical of the hon. Gentleman, who is normally grace itself.
The two exceptions are Orkney and Shetland, and the Western Isles, which are uniquely placed, given their locations. We have listened also to those who have very large constituencies, so the Bill will provide that no constituency will be larger than the size of the largest one now, and we intend that in future boundary reviews will be more frequent, to ensure that constituencies continue to meet the requirements that we will set out in our Bill.
I understand that this announcement will raise questions from those in all parts of this House, as these are profound changes. Let me just say that, yes, there are technical issues that will need to be scrutinised and approached with care as these Bills pass through Parliament, but ensuring that elections are as fair and democratic as possible is a matter of principle above all else. These are big, fundamental reforms that we are proposing, but we are all duty-bound to respond to public demand for political reform. That is how we restore people’s faith in their politics once again. I commend this statement to the House.
Order. A great many right hon. and hon. Members are seeking to catch my eye, and accommodating most, let alone all, of them will require economy in questions and answers.
Does the right hon. Gentleman agree that if a referendum on a major constitutional issue such as voting reform is to be seen as fair, it should not be the case that a mere 50% of those voting on the day should make the decision? Ought there not to be a threshold of, say, 40% of those entitled to vote, as was the case in 1978 in Scotland?
Order. I apologise—[Interruption.] Order. There is simply too much noise in the Chamber. The House must behave in a more seemly fashion.
I hope that the hon. Gentleman will also agree, however, that the measures that we have announced today will strengthen the role of Parliament in holding the Executive to account. They will strengthen the power of this House to throw out a Government through a motion of no confidence, and if a Government are not re-formed within 14 days there will be a general election and a Dissolution of the House. That seems to me to be a very significant shift that takes power away from the Prime Minister, which has never been done before, and gives more power to the House. It is something that I hope the hon. Gentleman will welcome.
May I reiterate the request for short questions and economical replies? A very large number of colleagues wish to contribute, and I would like to enable them to do so.
Does the Minister now regret using the term “fix” in the context of the political system? Does he believe that the referendum that takes place—I would support that—will remain simply on the question of the voting system, or might it not also give people the opportunity to express a view on whether they support the programme of increasing VAT and making cuts that the Liberals have endorsed, and allow us to give a verdict on whether we approve or disapprove of the Liberals?
Order. I genuinely apologise that I have to keep interrupting the Deputy Prime Minister, but I want to hear him. I want to hear the content of his arguments and his mellifluous tones, and I keep being prevented from hearing him by people chuntering away from a sedentary position. Please do not.
They chunter because they do not like to be reminded that they did nothing on voter registration for 13 years. They did nothing to give people the chance to have a say about how we are elected to this House, or to rectify the unfairness of the way in which votes are distributed across constituencies. If we could work together across parties to deal with these big issues, including ensuring that those who are not registered become properly registered, I would welcome that, but I just do not think it is helped by the right hon. Member for Holborn and St Pancras (Frank Dobson) somehow accusing a new coalition Government, who have been in power for only a few weeks, of failing to do something about a problem that his Government did nothing to rectify for 13 years.
We are the only Parliament in the world whose second Chamber is larger than the first, and Labour’s next phase of reform would have addressed that—[Interruption.]
Is it true that the Tory-Liberal Democrat coalition plans not only to allow existing peers to remain until they die, but to create nearly 200 more peers at a time when they are going to cut the number of MPs?
At the rate the Opposition are going, there is never going to be another phase.
Order. It has been a bit broad so far. I gently remind the Deputy Prime Minister that we must focus on the policies of the Government, rather than those of the Opposition.
Will my right hon. Friend confirm that it is the responsibility of local authorities to address their record in electoral registration in time for this new electoral roll to be used in his boundary review?
Order. I am sorry to interrupt the hon. Gentleman, but I did appeal for economy in questions and time is moving on; we must progress. I think that we have got the thrust of his question, and we are grateful for it.
The figures I cited were the figures that prevailed at the time of the last general election.
May I ask the Deputy Prime Minister not to read a history book before providing his answer?
This is 20 questions by a historian. The last Government—the hon. Gentleman’s party in government—governed for five years. We are merely legislating—[Interruption.] Instead of setting history questions, why does he not think about why his party, which was once a party of political reform, now seems to be backing off from that long-standing political tradition? It is a great shame that that is happening.
They may do, but the intention is that they will none the less retain the key building block of any constituency, which is ward boundaries. We want to keep that building block in place, as it would be simply too complicated to conduct the boundary review on the scale that has been proposed by any other means.
Order. We shall now move on to the statement on education funding. I ask Members wishing to leave the Chamber to do so quickly and quietly.