Machinery of Government Change: Gender Recognition Act

Baroness May of Maidenhead Excerpts

Thursday 16th November 2017 Written Statements

[The Prime Minister (Mrs Theresa May)]

This written statement confirms that responsibility for the Gender Recognition Act 2004 will transfer from the Ministry of Justice to the Government Equalities Office. This change will be effective immediately.

[HCWS253]

Parliamentary Assembly of the Council of Europe: UK Delegation

Baroness May of Maidenhead Excerpts

Tuesday 14th November 2017 Written Statements

[The Prime Minister (Mrs Theresa May)]

This written ministerial statement confirms that the United Kingdom delegation to the Parliamentary Assembly of the Council of Europe is constituted as follows:

Oral Answers to Questions

Baroness May of Maidenhead Excerpts

Wednesday 25th October 2017 Commons Chamber

[Afzal Khan (Manchester, Gorton) (Lab)]

Q1. If she will list her official engagements for Wednesday 25 October.

[The Prime Minister (Mrs Theresa May)]

I am sure that all Members from across the House will want to join me in wishing all the home nations teams the very best of luck in the rugby league world cup, which starts this week.

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

[Afzal Khan]

Social care services in England are in crisis. Since 2010, the local council in Manchester has had its annual social care budget cut by £32 million. By March, the Government will have taken £6.3 billion out of social care. Why will the Prime Minister not match Labour’s commitment and invest £8 billion in social care in next month’s Budget?

[The Prime Minister]

As I have said in this House before, we recognise the pressure on social care as our population ages. I have said before that there are short-term, medium-term and long-term answers to this. In the short term, we have made extra funding available to local authorities. The announcement made in the last Budget by my right hon. Friend the Chancellor was for an extra £2 billion for local authorities. In the medium term, we need to make sure that best practice is observed across all local authorities and NHS trusts. Delayed discharges are higher in some cases than they are in others, and we need to make sure that best practice is followed. In the long term, we need a sustainable footing for our social care system. That is why we will, in due course, be publishing a full and open consultation on ideas and proposals to ensure that we can have a sustainable social care system in the future.

[Kevin Foster (Torbay) (Con)]

Q3. The Prime Minister will be aware of the vital role that supported housing plays for many vulnerable people in Torbay. What reassurances can she give me about the ongoing support that the Government will give to those vital services?

[The Prime Minister]

My hon. Friend raises an important issue, and this is something that we have been looking at very closely over the past year since my right hon. Friend the First Secretary of State, the right hon. Member for Ashford (Damian Green) commissioned work on it in September last year, when he was Work and Pensions Secretary. I can confirm that we will be publishing our response to that consultation on Tuesday 31 October, and it will look at a wide range of issues. We need to ensure that the funding model is right so that all providers of supported housing can access funding effectively. We need to look at issues such as the recent significant increases in service charges, making sure that we are looking at cost control in the sector.

I can also say today that as part of our response to the review, we will not be applying the local housing allowance cap to supported housing; indeed, we will not be implementing it in the wider social rented sector. The full details will be made available when we publish our response to the consultation.

[Jeremy Corbyn (Islington North) (Lab)]

I join the Prime Minister in wishing the rugby league team all the very best in the competition. I hope they win it.

Last week, the House voted 299 to zero to pause the roll-out of universal credit. Will the Prime Minister respect the will of the House?

[The Prime Minister]

As I have said before, we acknowledge the fact that people have raised concerns with universal credit. That is why, as we have been rolling it out, we have been listening to those and changes have been made. Perhaps I could just update the House on where we are on the roll-out of universal credit. Currently, of people claiming benefits, 8% are on universal credit. By January of next year, that will rise to 10%. The roll-out is being conducted in three phases, and the intention is that it will be completed by 2022, so it is being done in a measured way, and I am pleased to say that four out of five people are satisfied or very satisfied with the service that they are receiving. Universal credit helps people into the workplace and it makes sure that work pays, and that is what the welfare system should do.

[Jeremy Corbyn]

I would have thought that if only 8% of the roll-out has taken place and 20% of the people in receipt of it are dissatisfied with it, that is a cause for thought and maybe a pause in the whole process. Last week, only one Conservative MP had the courage of their convictions to vote with us on suspending the universal credit roll-out. Then a Conservative Member of the Welsh Assembly, Angela Burns, said:

“For the life of me I cannot understand why a 6 or 4 week gap is deemed acceptable.”

She called universal credit

“callous at best and downright cruel at worst”,

and concluded by saying she is “ashamed” of her Government. Can the Prime Minister ease her colleague’s shame by pausing and fixing universal credit?

[The Prime Minister]

As I have said to the right hon. Gentleman, we have been making changes to the implementation of UC as it has gone through the roll-out, but let us be very clear about why we introduced universal credit. It is because it is a system—[Interruption.]

[Mr Speaker]

Order. Members are getting rather over-excited. The question has been put, and the answer will be heard.

[The Prime Minister]

We introduced universal credit as a simpler, more straightforward system that ensures that work pays and helps people into the workplace. Let us look at what happened in the benefits system under Labour. Under Labour, the low-paid paid tax and then had it paid back to them in benefits. Under Labour, people were trapped in a life on benefits for years. Under Labour, the number of workless households doubled, and Labour’s benefit system cost households an extra £3,000 a year. What the Conservatives have done is given the low-paid a pay rise, given the workers a tax cut and ensured we have a benefit system that helps people into work.

[Jeremy Corbyn]

Under Labour, 1 million children were lifted out of poverty. Under Labour, we introduced the principle of the national minimum wage—opposed by all Tories over there.

If the Prime Minister is not prepared to listen to Angela Burns, perhaps she could listen to the architect of universal credit, the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith), who said:

“One of the reasons I resigned from Government was I didn’t actually agree with the additional waiting days. This is something the government needs to look at”.

Does the Prime Minister agree with him?

[The Prime Minister]

This is the answer that I have given not just three or four times in this PMQs but in previous PMQs: as we look at universal credit roll-out, we look at how we are introducing it. The right hon. Gentleman talks about what happened under Labour, and I am happy to talk about what happened under Labour—[Interruption.]

[Mr Speaker]

Order. There is far too much noise and finger pointing on both sides of the Chamber. The responses from the Prime Minister will be heard, as will the questions from the Leader of the Opposition and every other Member without fear or favour.

[The Prime Minister]

The right hon. Gentleman is talking about rolling out new benefit systems, but let us think about what happened when Labour rushed to introduce tax credits. I was not the only Member of Parliament who had people in my constituency surgery who had filled the forms in properly and given information to the authorities only for the Government to come back years later and land them with bills for thousands of pounds. That is what happens when you rush into a system rather than introducing it properly, as we are.

[Jeremy Corbyn]

I thought that we had passed a threshold last week and that the Prime Minister was going to answer questions, but we obviously have not achieved that yet. Labour introduced working tax credits to help people on low pay out of poverty and it made a very big difference. The sad truth is that universal credit is in such a mess that councils are forced to pick up the Bill. Let me give an example. Croydon Council, which piloted the scheme, is now spending £3 million of its own budget to prevent tenants from being evicted due to rent arrears caused by universal credit. Does the Prime Minister think that it is right or fair that hard-pressed local authorities, having their budget cut by central Government, should have to dip into what little money they have left to prevent people from being evicted when they know full well that it is this Government and their system of universal credit that are causing the problem?

[The Prime Minister]

Labour introduced working tax credits and then clawed thousands of pounds back from people who were working hard. The right hon. Gentleman raises the issue of rent arrears and I know that Members have concerns about people who are managing their budgets to pay their rent. For the vast majority of people on universal credit, managing their budgets is not an issue. After four months, the number of people on universal credit who are in arrears has fallen by a third, but we recognise the issue so we are working with landlords. We have built flexibility into the system so that landlords can be paid directly, and I want to be clear that nobody can be legally evicted from social housing because of short-term rent arrears. That is an important point for us to get across to people, but I come back to the essential point about universal credit: this is about a welfare system that helps people into work, makes work pay and does not trap people in a life on benefits for years.

[Jeremy Corbyn]

I note that the Prime Minister could not say anything about people being evicted from the private rented sector because of universal credit problems. The costs in the benefit system are being driven by low pay and high rents. In 2015, the then Chancellor, her former friend, promised a £9 an hour living wage. However, in the March Budget it was sneaked out that the Government’s minimum wage would reach only £8.75. The welfare state was not created to subsidise low paying employers and overcharging landlords, so will the Budget in November put the onus back—[Interruption.]

[Jeremy Corbyn]

My question is this: will the Budget in November put the onus back on to employers to pay a decent wage so that workers can make ends meet?

[The Prime Minister]

Of course we want to ensure that there are higher-paid jobs in this country. That is precisely why we are investing in the economy for the future. It is precisely why we are investing in our infrastructure and investing in skills for young people, and it is why we are introducing a modern industrial strategy. The right hon. Gentleman says the welfare system was not created to subsidise employers who are paying low wages. That is exactly what Labour’s working tax credits system did.

[Jeremy Corbyn]

The Government’s own Social Mobility Commission reported that low pay was endemic in the United Kingdom. One in four workers are permanently stuck in low-paid jobs. That is why Labour backed a real living wage of £10 per hour to make work pay. The Government do not really know whether they are coming or going. The Conservative party and the Government say they have full confidence in universal credit, but will not vote for it. They say they will end the NHS pay cap, but will not allocate any money to pay for it. The Communities Secretary backs £50 billion of borrowing for housing, but the Chancellor says it is not policy. The Brexit Secretary says they are planning for a no-deal Brexit. The Chancellor says they are not. Is it not the case that the Government are weak, incompetent, divided and unable to take a decision—[Interruption.]

--- Later in debate ---

[Jeremy Corbyn]

Is it not the case that this Government are weak, incompetent and divided, and unable to take the essential decisions necessary for the good of the people of this country?

[The Prime Minister]

Of course we want to see people earning higher wages. Of course we want, as we are doing, to be able to ensure we can invest in our public services. But the way to do that—the way to have a higher standard of living, to have higher wages, to invest in our public services, to have a better future for people in this country—is to build and continue to build that stronger economy. You do not build a stronger economy by losing control of public finances. You do not build a stronger economy by uncontrolled borrowing. You do not build a stronger economy by hitting people with the highest taxes in our peacetime history. You do not build a stronger economy by voting against progress in our Brexit negotiations. You do not build a stronger economy by planning for capital flight and a run on the pound. That is what Labour would do and we will never let it happen.

[Mrs Sheryll Murray (South East Cornwall) (Con)]

Q5. Some people in Plymouth are campaigning, by way of a petition, to say that lifeboats must be launched immediately when a fishing vessel is overdue. I believe this is irresponsible and puts our valiant lifeboat crews in peril if they do not know where they are going. We know this in Cornwall. Will the Prime Minister look at making safety grants available, so that all fishing boats can have an AIS, or automatic identification system, locator beacon on board? This would cost well under £4 million, even if every registered fishing vessel under 15 metres got a grant to cover the whole cost. My late husband had one aboard his boat.

[The Prime Minister]

I thank my hon. Friend for raising this issue. As she has just said, I know this is an area where she tragically has personal experience. I would like to commend her for the work she has done in this important area and for championing these causes. She is right: launching a lifeboat whenever a fishing vessel is overdue may be the wrong decision. It could, as she says, be dangerous for the crew involved. That is why the coastguard takes the time to gather valuable information before deciding how best to respond. On the issue she raises, a number of grants are available from various safety schemes. I encourage all those involved in fishing to make the most of the grants that are available.

[Ian Blackford (Ross, Skye and Lochaber) (SNP)]

Does the Prime Minister agree that migration is key to delivering sustainable economic growth?

[The Prime Minister]

What is absolutely key is ensuring we have controlled migration in this country. That is what the people of this country want and what the Government are delivering.

[Ian Blackford]

An American couple, the Felbers, moved to Scotland and invested £400,000 to run an award-winning guesthouse in Inverness. They contribute to their community and the local economy, yet they will be deported because of a retrospective change to Home Office rules. Will the Prime Minister meet me and their MP, my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), to discuss this case and the systemic problems with UK migration?

[The Prime Minister]

There are no systemic problems with UK migration. My right hon. Friend the Home Secretary is happy to meet the right hon. Gentleman to discuss the case he has raised, but it is absolutely right that the Home Office work to ensure that the immigration rules are properly applied and that action is taken according to those rules.

[Mr Speaker]

Now it is time to hear Mr Simon Hoare.

[Simon Hoare (North Dorset) (Con)]

Q9. Thank you, Mr Speaker. I have composed myself. I was greatly cheered last week, as I am sure were many colleagues in the House, to hear the German Chancellor say that a final deal on Brexit was going to happen. Does my right hon. Friend agree with my assessment that we will get a good deal that works for our country, for the EU and, possibly more importantly, for my constituents?

[The Prime Minister]

I agree with my hon. Friend. Our job is to get the best Brexit deal for Britain. I believe we can get it and that it will benefit all parts of the UK, including his constituents, and that we will maximise the benefits of leaving the UK while maintaining the greatest possible access to EU markets. That is what we are continuing to work on and the vision I set out in my Florence speech, and as we know, the EU is now preparing its response.

[Jo Platt (Leigh) (Lab/Co-op)]

Q2. The Prime Minister has previously stated her commitment to apprenticeships. In my constituency, however, the apprenticeship levy has not been helping those for whom it was designed. What steps will she take to ensure that apprenticeships help those from lower-income backgrounds?

[The Prime Minister]

Apprenticeships are important. Under the Government from 2010 to 2015, we saw 2 million more apprenticeships created, and we are committed to a further 1.9 million being created. This is important. The important point about apprenticeships is that they are an opportunity for young people not to feel encouraged down an academic route when that does not work for them. When I meet apprentices, many say that it is the best thing they have done, and we want to make sure they are available for all those who could benefit from it.

[Victoria Prentis (Banbury) (Con)]

Q12. Cherwell tops the leader board for new housing. Will the Prime Minister assure me that the right roads, school places, post boxes and especially healthcare provision will be in place to support both my new constituents and the ones I have at the moment?

[The Prime Minister]

First, may I congratulate my hon. Friend and say how pleased I am that Cherwell District Council is doing what we want to do and what we recognise we need to do to tackle our dysfunctional housing market, which is to build more homes? She is right, however, that infrastructure is also an important part of that, which is why we have committed £15 billion for our road investment strategy, why over half a trillion pounds will be spent on the NHS during this Parliament, and why a record £41 billion will be spent on core funding for schools this year. That, I am pleased to say, is the record of Conservatives in government.

[Stewart Hosie (Dundee East) (SNP)]

Q4. In 24 hours, the people of Dundee will wave off the bid for the 2023 European Capital of Culture. It is a fantastic bid that will generate 1,500 jobs and add 5% to local GDP. Will the Prime Minister, notwithstanding her current difficulties with Europe, back this bid, given that it comes from the most innovative and forward-looking city in the whole UK?

[The Prime Minister]

Of course we are always willing to back bids from any city in the United Kingdom to become the European city of culture. I welcome the fact that Dundee has put forward a bid and is part of the process, but, as I have said, we want to support all cities in the United Kingdom that are submitting bids.

[Richard Graham (Gloucester) (Con)]

It is a criminal offence for those, such as teachers, who are in a position of trust to have sexual relationships with young people under 18. However, a constituent came to me recently distressed about exactly such a relationship between his 17-year-old daughter and a middle-aged driving instructor. While—if consensual—that is not illegal, I am concerned about the possibility that young drivers might be at risk of being groomed by predatory instructors. Does the Prime Minister agree that driving instructors are, by the nature of their work, in a position of trust, and should be covered by the same rules as teachers? If so, will she ask the relevant Minister to work with me on the issue?

[The Prime Minister]

I am concerned to hear about the constituency case that my hon. Friend has raised. I recognise the position, and the role that driving instructors play. I will ask the appropriate Department to look into the matter, and to get in touch with my hon. Friend to obtain further details of that case.

[Stephen Kinnock (Aberavon) (Lab)]

Q6. In March 2017, the Prime Minister told the House that Parliament would be given a meaningful vote on the terms of the Withdrawal from the European Union (Article 50) Bill. This morning, in the Select Committee on Exiting the European Union, the Secretary of State told us that that vote might not take place until March 2019. Will the Prime Minister please explain how it is possible to have a meaningful vote on something that has already taken place?

[The Prime Minister]

As the hon. Gentleman knows, we are in negotiations with the European Union. The timetable under the Lisbon treaty allows the negotiations to take place until March 2019, but, because it is in the interests of both sides, and it is not just this Parliament that wants to have a vote on the deal—there will be ratification by other Parliaments—I am confident that we will be able to achieve that agreement and that negotiation in time for Parliament to have the vote to which we committed ourselves.

[Robert Jenrick (Newark) (Con)]

We enter a week of commemorations of the centenary of the Balfour declaration. Will my right hon. Friend re-dedicate us to the pursuit of peace and justice for both the Israelis and the Palestinians, but will she also celebrate with pride our small national contribution to the creation of a democracy in the middle east, a sanctuary for those who have suffered from anti-Semitism and fear its rise again, and, in the state of Israel, a true friend of the United Kingdom?

[The Prime Minister]

We are proud of the role that we played in the creation of the state of Israel, and we will certainly mark the centenary with pride. I am pleased about the good trade and other relationships that we have with Israel, which we are building on and enhancing. However, we must also be conscious of the sensitivities that some people have about the Balfour declaration.

We recognise that there is more work to be done. We remain committed to the two-state solution in relation to Israel and the Palestinians, which is an important aim. I think it important for us all to recommit ourselves to ensuring that we can provide security, stability and justice for both Israelis and Palestinians through such a lasting peace.

[Tonia Antoniazzi (Gower) (Lab)]

Q7. Trying to get a decision on the Swansea bay tidal lagoon is becoming like groundhog day. Swansea is ready, and the investors are ready. May I ask the Prime Minister when she will be ready?

[The Prime Minister]

As the hon. Lady well knows, that raises a number of complex issues. We were grateful to Charles Hendry for his review. The relevant Department —the Department for Business, Energy and Industrial Strategy—is still considering his report, and we will respond in due course.

[Mrs Anne-Marie Trevelyan (Berwick-upon-Tweed) (Con)]

Does the Prime Minister agree that as we leave the EU and take control of our land management policy, our manifesto commitment to plant 11 million trees is a critical part of the holistic countryside management framework that we can now build to ensure long-term home-grown wood for our housing industry, as well as increasing our natural carbon capture potential and reducing flood risks?

[The Prime Minister]

My hon. Friend is absolutely right: we did commit in our manifesto to plant 11 million trees. We are putting that at the heart of our work to protect the environment for future generations. I am pleased to say that since April 2015 we have planted just over 2 million trees, but we do have much more to do, and we will be continuing to work with landowners and stakeholders on this issue. My hon. Friend is also right that it is not just about the look of the countryside; it is also about the role that trees play in reducing flood risks and helping to hold carbon dioxide.

[Mr Kevan Jones (North Durham) (Lab)]

Q8. The Prime Minister has spoken on mental health, and I thank her for that. When she was Home Secretary, she outlawed police cells being used for those in mental health crisis. Today, however, parts of our mental health system are in crisis. In my North Durham constituency children, young people and families are waiting two years for autism assessments. The Secretary of State agrees that that is unacceptable. What is the Prime Minister going to do to turn her well-intentioned statements on mental health into action?

[The Prime Minister]

As the hon. Gentleman knows, we are taking a number of courses of action in relation to mental health, but he raises the specific issue of the autism diagnosis, and the length of time that takes in his constituency. My right hon. Friend the Health Secretary has promised to look into this and will be doing so, because we are very clear that we want to ensure that adults and children should not have to face too long a wait for an autism diagnosis. The Department of Health is working with partners to help local areas address these issues where there are long waiting times for an autism diagnosis, and the National Institute for Health and Care Excellence has published clinical guidance which sets out that assessments should begin within three months of referral. Obviously it is for the Department of Health to be working with those local areas to make sure it is possible to achieve that.

[Steve Double (St Austell and Newquay) (Con)]

Tomorrow at Cornwall Newquay airport the Bloodhound will carry out its first live test run in the next step on its quest to achieve the land speed record. Will the Prime Minister join me in wishing the whole Bloodhound team, especially driver Andy Green, a successful test run, and does she agree that such projects show that the UK continues to lead the world in innovation in science and engineering?

[The Prime Minister]

I am very happy to join my hon. Friend in wishing the Bloodhound team well; indeed, I have met some of the members of the team in the past. I also agree with my hon. Friend’s other point: this continues to show what a world leader in science and innovation the United Kingdom is. We have some of the world’s best universities, with four of them in the world’s top 10, and we have more Nobel prize winners than any country other than the United States. This is a record of which our country can be proud, and I am sure we will all be proud of the Bloodhound team and its achievements.

[Thelma Walker (Colne Valley) (Lab)]

Q10. Does the Prime Minister agree that the potential downgrading of Huddersfield Royal Infirmary— 479 professionals lost, over 300 hospital beds cut, and a 90-minute journey to the nearest A&E—is not in the best interests of my constituents? Will she meet me to discuss the detrimental impact this will have on Colne Valley and the surrounding area?

[The Prime Minister]

The principle that we want to base all these decisions on is that service changes should be based on clear evidence and led by local clinicians who best understand the local healthcare needs. I understand that Calderdale and Kirklees Councils have referred the proposed changes to my right hon. Friend the Health Secretary, and I know he will be considering the issues very carefully, and will be coming to a decision in due course.

[Nicky Morgan (Loughborough) (Con)]

Next year is the centenary of the first woman Member of Parliament. Will my right hon. Friend tell us what leadership and encouragement to the women and girls in his constituency to take part in public life the hon. Member for Sheffield, Hallam (Jared O'Mara) has shown in his remarks?

[The Prime Minister]

It is important that we mark this centenary next year, and recognise the role that women have played in this House and in public life. I want young women and women to be able to see this House as a place they actively want to come to—that they want to contribute to their society and respond to the needs of constituents and make a real difference to people’s lives. That is what I am in it for, that is why I have encouraged more women to come into this House, and I am pleased to say that we have more women on our Benches than ever before.

Finally, all of us in this House should have due care and attention for the way in which we refer to other people and should show women in public life the respect they deserve.

[Tommy Sheppard (Edinburgh East) (SNP)]

Q11. Yesterday, the Scottish Parliament voted by 91 votes to 28 to ban fracking in Scotland. May I ask the Prime Minister why she would not consider following Scotland’s lead and introduce a moratorium in the rest of the United Kingdom in order to carry out a full evaluation of the health and environmental consequences of this controversial technology, and in order for the public to be consulted?

[The Prime Minister]

This is an issue on which the hon. Gentleman and I are simply going to disagree. I think that shale gas has the potential to power economic growth in this country and to support thousands of jobs in the oil and gas industries and in other sectors. It will provide a new domestic energy source. We have more than 50 years’ drilling experience in the UK, and one of the best records in the world for economic development while protecting our environment. The shale wealth fund is going to provide up to £1 billion of additional resources to local communities, and local councils are going to be able to retain 100% of the business rates they collect from shale gas developments. We will be bringing forward further proposals in relation to this during this Parliament. This is an important potential new source of energy, and it is right that we should use it and take the benefits from it for our economy, for jobs and for people’s futures.

[Craig Tracey (North Warwickshire) (Con)]

I am sure that the Prime Minister is aware of the terrifying incident on Sunday in which a gunman held hostages at a bowling alley in my neighbouring constituency of Nuneaton, a facility that is enjoyed by my own constituents of North Warwickshire and Bedworth. Will she join me and my hon. Friend the Member for Nuneaton (Mr Jones) in praising the excellent work of Warwickshire police and the West Midlands ambulance service in ensuring that the situation was brought to a swift conclusion without any casualties?

[The Prime Minister]

Of course we were all concerned to hear about that incident as it was taking place, and I am happy to join my hon. Friend and my hon. Friend the Member for Nuneaton in commending the professionalism and bravery of the Warwickshire police in bringing it to a swift conclusion and of the ambulance service in ensuring that there were no injuries. Our emergency services do an amazing job in protecting us; they do not know, when they put on their uniforms in the morning, whether they are going to be called out to exactly this sort of incident. I was pleased to welcome a number of our emergency services personnel to a reception in Downing Street on Monday. What they always say is that they are just doing their job, but my goodness me, what a job they do for us!

[Alison McGovern (Wirral South) (Lab)]

Q13. On 29 March, I asked the Prime Minister whether she would help the people of New Ferry after the huge explosion that had devastated the town centre. She said that she was be happy to help and that support would be offered to the community in the future. Two weeks later she called a general election, and her Government seem to have all but forgotten about the people in New Ferry. Well, she may have forgotten but my constituents have not, so I ask her again: precisely when will her Government put their hands in their pockets so that the people in New Ferry can rebuild their town and their lives?

[The Prime Minister]

The Government have not forgotten about this issue. I understand from the Secretary of State for Communities and Local Government that we are waiting for the local council to produce proposals and a business case for those proposals, and we will of course look at those proposals seriously.

[John Howell (Henley) (Con)]

In acknowledging the hard work that the men and women of RAF Benson in my constituency did in the Caribbean, will the Prime Minister also acknowledge that the Puma Mk 2 helicopter was ready and available for work in the Caribbean within a couple of hours of having arrived there?

[The Prime Minister]

I am very happy to commend the work of all those at RAF Benson and indeed all those in our military and the volunteers who were able to provide support after the devastating hurricanes that took place in the Caribbean. I am also happy to agree with my hon. Friend that, contrary to some of the stories that were being put about, we were there, we were there on time and we were able to act very quickly to give people that support.

[Joanna Cherry (Edinburgh South West) (SNP)]

Q14. We can all agree that no one should ever be persecuted on account of their sexuality. Last week at the PinkNews awards, the Prime Minister said that we had come a long way on LGBT+ rights, but there is still much more to do. May I ask her to start on that remaining work today by promising that the Home Office will never again deport LGBT+ asylum seekers to countries where they are likely to be persecuted with the instruction that they pretend to be straight?

[The Prime Minister]

This is an issue that we take seriously. Indeed, I think I am right in saying that it was a Conservative Government who actually changed the rules on asylum seeking to introduce the category of those who could face persecution in their country of origin because of their sexuality. I am pleased that that was able to be done, and I am sure that the Home Office treats all these cases—I want it to treat all these cases—with the sensitivity that is appropriate.

[Luke Graham (Ochil and South Perthshire) (Con)]

As of 2016, 17% of premises in Scotland were without superfast broadband, compared with just 11% for the UK as a whole. Will my right hon. Friend join me in calling on the Scottish Government to do more and to engage constructively with Departments here in Westminster to deliver this crucial service to communities in Scotland?

[The Prime Minister]

Can I say to—[Interruption.]

[Mr Speaker]

Order. All sorts of very curious hand and finger gestures are being deployed, each trying to outdo the other in terms of eccentricity and, possibly, of prowess, but I am interested in hearing the Prime Minister’s reply.

[The Prime Minister]

I say to my hon. Friend that we all recognise the importance of broadband and of fast broadband being available to people in our constituencies. He is absolutely right—the Members of the Scottish National party come down here and spend a lot of time talking about powers for the Scottish Government, but actually it is time that the Scottish Government got on with using their powers for the benefit of the people in Scotland.

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

Q15. In the past fortnight, we have heard the announcement of the loss of many hundreds of jobs in Lancashire at BAE Systems sites at Warton and Samlesbury, which comes as a hammer blow to workers and their families. Today, I want to raise the proposed closure of the Alstom factory on Strand Road in Preston, which will mean the loss of another 180 jobs. We keep hearing hype about the so-called northern powerhouse, so why are aerospace companies and train manufacturers in the north shedding jobs by the hundred?

[The Prime Minister]

I recognise that this is a worrying time for the workers involved. We will obviously ensure through the Department for Work and Pensions that they have the support they need to look for new jobs, and that does include the rapid response service, which gives particular support to people in these areas. However, in relation to the decision by BAE Systems, for example, I can assure the House that we will continue to promote our world-leading defence industry, and I hope that all Labour Members will continue to promote our world-leading defence industry. I am very pleased that just last month my right hon. Friend the Secretary of State for Defence signed a statement of intent with Qatar, committing it to the purchase of 24 Typhoons and six Hawks from BAE. Last year, the Ministry of Defence spent £3.7 billion with BAE and is working with it to maximise export opportunities for Typhoons and Hawks in the future to ensure that we can retain jobs here in the United Kingdom.

[Bob Blackman (Harrow East) (Con)]

When it comes to tackling homelessness, prevention is better than cure, so I am delighted that the Government backed my Homelessness Reduction Act 2017. However, one of the obstacles for people who choose to rent is putting together the deposit and getting help with the rent. Will my right hon. Friend look at a scheme that would provide 32,000 people a year with the opportunity to rent for an investment of £3.1 million a year? Not only would it do that, but it would save the public purse up to £1.8 billion over a three-year period.

[The Prime Minister]

I thank my hon. Friend. He has long campaigned on homelessness and its prevention, and I am pleased that we were able to support his Homelessness Reduction Act, which will be an important contribution in this particular area. On his specific issue, he has made a pre-Budget representation to the Chancellor, who I am sure will be looking at it very carefully. On the more general issue of helping people to buy and helping them with deposits, I am of course pleased that we have been able to announce an extra £10 billion for our Help to Buy scheme, which does make a real difference to people and enables them to get into homes.

[Nigel Dodds (Belfast North) (DUP)]

The workforce, the unions and the management at Bombardier in Belfast deserve enormous credit for the way in which they have responded to the threats to their jobs and livelihoods coming from the United States, and from Boeing in particular. Can the Prime Minister assure us that she will continue building on the good work that has already happened through herself, the Secretary of State for Business, Energy and Industrial Strategy and the Secretary of State for Northern Ireland, and that she will continue to work with us, the unions and management to ensure that the threat of tariffs is removed, that the C series is a success story and that thousands of jobs in Belfast and across the United Kingdom are protected?

[The Prime Minister]

I am very happy to give that commitment. A lot of work has been done in relation to this issue by me, the Business Secretary, the Chancellor of the Exchequer and other Ministers with our opposite numbers in America and Canada. We will certainly continue that work. Obviously, the most recent announcement in relation to Airbus and the C series is important. We want to ensure that those jobs stay in Northern Ireland, because we recognise the importance of those jobs to the economy of Northern Ireland and, obviously, also to the people and their families.

European Council

Baroness May of Maidenhead Excerpts

Monday 23rd October 2017 Commons Chamber

[The Prime Minister (Mrs Theresa May)]

With permission, Mr Speaker, I will make a statement on last week’s European Council.

Long after we have left the European Union, the UK will continue to be a strong and committed partner, standing alongside our neighbours and working with them to advance our shared values and interests. This Council provided a further opportunity to demonstrate that ongoing commitment, through discussions that included migration, the digital single market, Turkey, North Korea and Iran, and it made important progress in moving towards the new, deep and special partnership with the European Union that we want to see.

On migration, the UK is playing its full part. The Royal Navy has intercepted 172 smuggling boats and saved more than 12,000 lives since Operation Sophia began. Our National Crime Agency is working with Libyan law enforcement, enhancing its capability to tackle the people-smuggling and trafficking networks. At the Council, we welcomed the reduction in migrant crossings and the renewed momentum behind the Libyan political process; but we must also continue to address the root causes driving people across the Sahara and the Mediterranean, so the UK is also continuing to invest for the long term in education, jobs and services, both in countries of origin and countries of transit.

On the digital single market, it is right to keep up the pressure on completing its implementation by the end of 2018. That will continue to benefit us even after we have left the European Union. At the Council, I also argued that the free flow of data was key to unlocking the potential of Europe’s digital trade, and we secured conclusions which recognised that. As the Government set out in a paper over the summer, such arrangements will be an important part of the future relationship between the UK and the EU.

Let me now turn to the discussions on Turkey. We share concerns over the arrests of EU nationals and others defending human rights. I raised that personally with President Erdogan when we met at the UN General Assembly, and we are publicly calling on Turkey to protect freedom of expression and to release those defending human rights. At the same time, I believe that we must take a long-term view of the enduring importance of our relationship with Turkey, which is a vital partner in ensuring a secure and prosperous European neighbourhood. We must also continue to recognise the challenges to which it is responding, not least the military coup that it faced only 16 months ago.

We must continue to work with Turkey as our ally and partner, particularly as we respond to the shared challenges of terrorism, migration and instability in the middle east. In so doing, however, we must do all that we can to convince Turkey that it must demonstrate its commitment to human rights and the rule of law. To turn away from Turkey now would undermine those who seek to secure a European future based on our shared values.

On North Korea, we welcomed the EU sanctions that were adopted last week, and reaffirmed our clear condemnation of North Korea’s aggressive and illegal missile and nuclear tests. We urged all states, including China, to play their part in changing the course that Pyongyang is taking. As for Iran, the Council built on the joint statement made by Chancellor Merkel, President Macron and myself last week, reiterating its firm commitment to the nuclear deal. The deal was the culmination of 13 years of diplomacy and is a major step towards ensuring that Iran’s nuclear programme is not diverted for military purposes, which is vitally important for our shared security. We are continuing to work particularly closely with our French and German allies on that crucial issue.

Turning to our negotiations to leave the European Union, I shared the vision I set out in Florence for a creative and pragmatic approach to a new, deep and special partnership between the United Kingdom and the European Union: a partnership based on the fundamental beliefs we share—in democracy and the rule of law, but also in free trade, rigorous and fair competition, strong consumer rights, and high regulatory standards. I have also been clear that the United Kingdom is unconditionally committed to maintaining Europe’s security. Both sides have approached these talks with professionalism and in a constructive spirit, and we should recognise what has been achieved to date.

On citizens’ rights, both sides share the same objective of safeguarding the rights of EU nationals living in the UK and of UK nationals living in the EU. This has been my first priority from the very beginning of the negotiations, and it remains so. The negotiations are complicated and deeply technical, but in the end they are about people, and I am determined that we will put people first. EU citizens make an extraordinary contribution to our national life and we want them to stay. I know that EU member states also value the UK nationals living in their communities, and I want them to have their rights protected, too. We are united on the key principles, and while there are a small number of issues that remain outstanding, we are in touching distance of a deal.

This agreement will provide certainty about residence, healthcare, pensions and other benefits. It will mean that EU citizens who have paid into the UK system, and UK nationals who have paid into the system of an EU27 country, can benefit from what they have put in. It will enable families who have built their lives together to stay together, and it will provide guarantees that the rights of those UK nationals currently living in the EU, and EU citizens currently living in the UK, will not diverge over time.

We will also ensure that the implementation of the agreement we reach does not create complicated and bureaucratic hurdles. For example, I have said that applying for settled status will cost no more than a UK passport, and that people applying will no longer have to demonstrate comprehensive sickness insurance. We will also do everything possible to work closely with EU member states to ensure that their processes are equally streamlined for British nationals living in their countries.

We have also made significant progress on Northern Ireland, where it is absolutely imperative that joint work on the peace process is not affected in any way. The Belfast agreement must be at the heart of our approach, and we have clearly agreed that the unique circumstances across the whole of the island of Ireland will require specific solutions. There will not be any physical infrastructure at the border, and we have also developed joint principles to ensure the continuation of the common travel area. These principles will fully preserve the rights of UK and Irish nationals to live, work and study across these islands, and protect the associated rights to public services and social security.

This Council provided an opportunity to assess, and reflect on, how to make further progress in the negotiations. My speech in Florence made two important steps which have added a new impetus. First, I gave two clear commitments on the financial settlement: that the UK will honour commitments we have made during the period of our membership; and that none of our EU partners should fear they will need to pay more or receive less over the remainder of the current budget plan as a result of our decision to leave. As the House would expect, we are going through our potential commitments line by line, and that detailed work continues. Secondly, I proposed a time-limited implementation period based on current terms, which is in the interest of both the UK and the EU.

At this Council, the 27 member states responded by agreeing to start their preparations for moving negotiations on to trade and the future relationship we want to see. The Council conclusions call for work to continue with a view to being able to move to the second phase of the negotiations as soon as possible, and President Tusk in his press conference was clear that the EU’s internal work

“will take account of proposals presented”

in the Florence speech, and, indeed, that this agreement to start preparatory discussions would not be possible without the new momentum given by that speech.

So I am ambitious and positive about Britain’s future and these negotiations. If we are going to take a step forward together, it must be on the basis of joint effort and endeavour between the UK and the EU, but I believe that by approaching these negotiations in a constructive way—in a spirit of friendship and co-operation —we can and will deliver the best possible outcome that works for all our people, and that belief was shared by other European leaders.

We are going to leave the European Union in March 2019, delivering on the democratic will of the British people. Of course, we are preparing for every eventuality to ensure we leave in a smooth and orderly way, but I am confident that we will be able to negotiate a new, deep and special partnership between a sovereign United Kingdom and our friends in the European Union. That is my mission, that is this Government’s mission, and I commend this statement to the House.

--- Later in debate ---

[Jeremy Corbyn]

I was making it clear that Labour’s message is different and very clear indeed: only Labour can negotiate a Brexit and deliver an economy that puts jobs and living standards first, and that is what we are ready to do.

[The Prime Minister]

I welcome the right hon. Gentleman’s comments on the Iran nuclear deal. It is important that we agree across the House that we should continue to support that deal. I also agree that what we of course want to see in Libya is a peaceful settlement that can enable that country to be stable and peaceful into the future. It is important that we all support the work that is being done by UN Special Envoy Salamé on this particular issue.

The right hon. Gentleman asked about the Brexit bill. What I set out to the European Council was what I set out in my Florence speech and what I have just repeated in my statement. He talked about us making no real progress. But:

“We haven’t reached a final agreement, but it’s going to happen.”

And:

“I’d have a degree of confidence that we’ll be able to get to the point of sufficient progress by December.”

After the Florence speech, it was said

“there is a new momentum.”

And the Florence speech was “a step forward”. There

“should be a positive response to the willingness to work on the interim period”.

And:

“There has been established a momentum.”

As it happens, those are not my words; they are the words of Chancellor Merkel, the Taoiseach, the Swedish Prime Minister, the Italian Prime Minister, the Polish Prime Minister and the Danish Prime Minister respectively, so I can assure the right hon. Gentleman that progress was indeed made. The Labour party talks about the need to move ahead in the negotiations. If Labour thinks it is so important, why did Labour MEPs vote against moving ahead in the negotiations?

The Leader of the Opposition talks about the withdrawal Bill as if it is something that Labour is very eager to see before the House. If it is so eager, why did it vote against the Bill on Second Reading and, in doing so, vote against bringing workers’ rights and environmental standards into UK law?

Finally, the Leader of the Opposition spent a long time talking about no deal. Well, I can only assume that the Labour party wants to talk about no deal because it simply does not know what sort of deal it wants. It cannot decide whether it wants to be in the single market or not. It cannot decide whether it wants to be in the customs union or not. It cannot decide whether it wants a second referendum or not. It cannot decide whether it agrees with the continuation of free movement or not. And, worst of all, it says it would take any deal, whatever price it is asked to pay. That is not the way to get a good deal for the UK; it is the way to get the worst possible deal for the UK.

[Mr Kenneth Clarke (Rushcliffe) (Con)]

Is it not clear that damaging delay will be caused if we do not make progress soon? The main problem is that other European leaders can see that a noisy minority in the Cabinet and on the Back Benches of the Prime Minister’s own party have persuaded themselves that no deal at all is completely desirable, which causes European leaders to doubt whether she is able to produce a clear picture of where she eventually wants to go and whether she is able to produce a majority here for any agreement they have with her.

Has the Prime Minister considered appointing some trusted Minister—she may have already done so—to make approaches to leading Opposition Members to see whether they will live up to some of the things the Leader of the Opposition appears to say, and perhaps to do better, so that we can have consensus in this Parliament, in the national interest, at least on the outline of a transitional deal that will enable us to negotiate final details and arrangements that the majority of this House could agree are in the long-term interests of the United Kingdom?

[The Prime Minister]

That sounds rather like a job application.

It is clear from my interaction with European leaders that they recognise that the vision I set out in the Florence speech—for a deep and special partnership for the future, and also for an implementation period—did bring clarity on the thinking of the United Kingdom. The 27 have agreed that it is now for them to consider what they want to see from the future of that relationship so that the next stage of negotiations can begin.

[Ian Blackford (Ross, Skye and Lochaber) (SNP)]

I thank the Prime Minister for an advance copy of her statement.

I welcome some of the conclusions from the Council summit, particularly on migration and the stronger commitment on resettlement. The Scottish National party also welcomes the united approach on sanctions against North Korea and fully endorses the EU’s call for North Korea to

“abandon its nuclear and ballistic missile programs”.

However, it is of deep concern that the ongoing crisis in Catalonia was not covered. EU citizens were brutally thrown to the floor while exercising their right to vote, and a Parliament was stripped of its constitutional status. What representations did the Prime Minister make to address that democratic outrage?

Last week, the EU27 voted unanimously to declare that there had not yet been sufficient progress on leaving the EU. It is clear that the negotiation sticking points are the same as before—the financial settlement, EU citizens’ rights and the Irish border. Jean-Claude Juncker made a poignant remark:

“nobody explained in the first place to the British people what Brexit actually meant.”

How true, and no wonder this Government are in such a mess.

Today, the UK’s five biggest business lobby groups have called for an urgent transition deal. Time is running out for the business community, and financial institutions are already giving notice or leaving London. Ireland has clinched deals with more than a dozen London-based banks to move operations from London. Ernst & Young has warned that 83,000 City jobs could be lost if the UK loses its euro-denominated clearing rights. Businesses need certainty, and we need to know the details of our future trading relationship and any transition deal before the end of the year. It is absolutely critical that we stay in the single market and the customs union. Will the Prime Minister end her Government’s catastrophic ideological flirtation with a no-deal scenario? Take this off the table and do it today.

[The Prime Minister]

First, may I say to the right hon. Gentleman that I have spoken to Prime Minister Rajoy on the issue of Catalonia on a number of occasions, including when I saw him at the European Council? We are absolutely clear that the referendum had no legal basis. We want to see people upholding the rule of law and upholding the Spanish constitution.

On the wider issue the right hon. Gentleman talks about—the future relationship of the United Kingdom with the European Union—I have set out the vision we have for that. As I have just said in answer to the Leader of the Opposition, the EU27 will now be looking at their vision for this. I am sorry to have to repeat again to the right hon. Gentleman, because he has raised this issue in the past, that full membership of the single market and of the customs union go with the jurisdiction of the European Court of Justice and freedom of movement, and they were issues that were voted against when people voted to leave the European Union. They would effectively mean that we would remain in the European Union, and we are going to leave in March 2019.

[Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)]

May I say to my right hon. Friend that she may wish to answer some of those who want certainty by reminding them that you cannot have agreement on an implementation period until you have something to implement? That is first and foremost. Secondly, during the course of her private discussions, —the ones that the acting President of the European Union, Martin Selmayr, has not put into the papers—did she remind her colleagues in the European Union that to reach a proper free trade arrangement they will need to have concluded those discussions before the summer of next year, otherwise it will be difficult to get things through in time, both in the European Union and here? Did she get an answer, therefore, about when they might like to start?

[The Prime Minister]

I thank my right hon. Friend, because he is absolutely right; as we have said on a number of occasions, the point of the implementation period is to put in place the practical changes necessary to move to the future partnership, and in order to have that you need to know what that future partnership is going to be. Obviously, in my discussions with other leaders I have raised the issue of the timetable we have, and of course the ultimate timetable that was set by the Lisbon treaty. He talks about knowing the details of the trade deal by next summer. Of course Michel Barnier himself has suggested that October 2018 might be the point at which it would be necessary to know that, but my right hon. Friend is absolutely right that of course there will need to be a period of time for ratification of any future arrangements by the various national Parliaments—and, as we know, this can be more than one in some of the countries concerned.

[Hilary Benn (Leeds Central) (Lab)]

Can the Prime Minister explain why it is frequently said by those with whom we are negotiating that they do not know what the UK wants when it comes to a long-term deal? Does she think this has anything to do with the fact that the Cabinet appears not to have reached its own view yet about what the nature of that deal is going to be?

[The Prime Minister]

This is a negotiation and there will be different levels of detail at different stages of the negotiation. I have set out the vision for our future partnership and, as I have said in response to a number of remarks now, what happened at this European Council was that the EU27 agreed that they will now start the work of preparing their vision of what that future partnership will be, so that when we come to open those trade negotiations formally both sides have got that agenda and clearly know what those negotiations will cover.

[John Redwood (Wokingham) (Con)]

Given business’s understandable wish to deal with uncertainty, does the Prime Minister agree that the best course for a business that trades with Europe would be to prepare for a smooth transition to World Trade Organisation terms, which the Government can and will guarantee unilaterally, but to expect the Prime Minister to have good luck in bringing back something better?

[The Prime Minister]

It is absolutely right and important that business prepares for a smooth and orderly move to the future relationship we have. That is why I have proposed an implementation period, which I believe is in the interests of businesses not only in the United Kingdom but in the European Union. As my right hon. Friend says, we are working to get the good deal that will also be not just in our interests but in the interests of the EU27.

[Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)]

Further to the Prime Minister’s answer to the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith), the Secretary of State for Exiting the European Union said last week that

“a transition phase will be triggered only once we have completed the deal itself”—[Official Report, 17 October 2017; Vol. 629, c. 741.]

I understand that the Prime Minister’s spokesperson said today that an implementation period is

“a bridge to where you are heading. You need to know where you are heading.”

Will the Prime Minister clarify whether she is saying that if we have not agreed a long-term trade deal by this time next year, there will be no transition deal at all and Britain will end up on WTO terms by March 2019?

[The Prime Minister]

As I just said in my response to my right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith), an implementation period is about a period of adjustment to the future relationship. That is the basis on which I have put it forward to the European Union, and that is the basis on which we will be negotiating an agreement on it.

[Sir William Cash (Stone) (Con)]

Does my right hon. Friend accept that it is a potential bear trap if the European Court is directly involved in any implementation period? Its case law asserts its supremacy over our Parliament and our courts, and includes a commitment to the charter of fundamental rights and political integration.

[The Prime Minister]

As my hon. Friend knows, I have been clear that one of the intentions of people who voted for the UK to leave the EU was to ensure that in future the jurisdiction of the European Court of Justice no longer covered the United Kingdom. We will of course have to negotiate the basis of the implementation period. If we are going to ensure that we have the greatest possible certainty for business during that period, it will be necessary for us to see as little change during that period as is commensurate with that certainty for business. Indeed, one of the purposes of the European Union (Withdrawal) Bill is to bring the EU acquis—the EU law—into UK law to give that certainty to businesses and individuals here.

[Sir Vince Cable (Twickenham) (LD)]

Until recently, the British Government were leading the negotiations to create a digital single market in Europe that would benefit creative industries. The Prime Minister said in her statement that it is right to aim for the completion of the digital single market by 2018, but will she explain how she expects to be taken seriously when she is in the process of trying to leave it?

[The Prime Minister]

The United Kingdom continues to lead in the debate on the creation of the digital single market. We believe that it is important for the EU27 and it is important for the UK in or out of the European Union. We will therefore continue to encourage the completion of the digital single market while we are members of the European Union. It will be important for us, once we have left the EU, that that digital single market has been created. We will forge a new relationship and partnership with it.

[Anna Soubry (Broxtowe) (Con)]

I commend the Prime Minister’s statement and the progress she has made in the EU negotiations. As we have heard, representatives of British businesses of all sizes and from all sectors have today written to the Government to warn of the consequences of no deal and relying on WTO rules. They said:

“The Government should give certainty to business by immediately ruling this option out under any circumstances.”

Will the Prime Minister agree to listen to British businesses, and will she even go so far today as finally to rule out no deal?

[The Prime Minister]

We have of course been engaging with and listening to business. I was clear that the implementation period was something that business was very keen on having to ensure that businesses had that smooth and orderly process of withdrawal, but we are in a negotiation with the EU27, and it is important to remember as part of that negotiation that we want to get a good deal for the United Kingdom, but the best way to get a bad deal for the UK is to say that we will accept anything that they give us, regardless. We have to be clear that we are working for a good deal, and I am optimistic about that because we have made some progress and I believe that the good deal we are seeking is in the interests of both sides.

[Mr Chris Leslie (Nottingham East) (Lab/Co-op)]

Is it not the case that the business community will be shocked to hear the Prime Minister’s words today, which seem to suggest that there will be no clarity on transition or implementation until we get a final deal in some number of months—or possibly longer—ahead? The business community wants to know that the cliff edge will not be there in March 2019. Will she not give a commitment now to treat attaining a transitional arrangement separately from trying to get a final deal?

[The Prime Minister]

I set out in my Florence speech the concept of the implementation period, and, of course, we have to discuss that with the EU27. I am confident that we will get a good deal precisely because getting a good deal is not just in our interests, but in the interests of the EU27 of the remaining European Union. That is what we are working for, and that is what our effort is going into.

[Several hon. Members rose—]

[Sir Edward Leigh (Gainsborough) (Con)]

May I commend the Prime Minister’s approach based on the Florence speech, which is entirely sensible, pragmatic and moderate? Given that we are being entirely open about our negotiating tactics, which is that no European nation, or indeed any European citizens, should be worse off, may I encourage her to be more transparent and open with Parliament on the figures? I know that the reserve position of Whitehall is that Parliament is a nuisance, but what else was Brexit about except reviving parliamentary democracy? We still have no idea what we have offered or what is being demanded. We could do with some more information because, ultimately, there will be a vote on this in the House and that will be a vote that counts.

[The Prime Minister]

Of course we have said that there will be a vote on the deal in this House and we expect that vote to take place before the European Parliament votes on the deal. I have also said—I said this in my Lancaster House speech in January—that when we are able to make information available, we will do so. As my hon. Friend and others may recall, I also said that we will not give a running commentary on the details of the negotiations. We must not put this country in a position where we set out publicly everything that we are looking for in these negotiations, because that just hands the cards to the other side. This is a negotiation, and both sides will have to move on it.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

Given the report from the business groups today calling for transition, and the lust for the cliff edge being displayed by some on the Prime Minister’s Back Benches, will she perhaps introduce some facts? Will she list any major economies in the world that trade with the EU on the basis of WTO rules alone, with no sectoral or other agreements in place?

[The Prime Minister]

The premise of the right hon. Gentleman’s question is false. He seems to be suggesting that the purpose of the Government’s negotiations is to, somehow, engineer a no-deal scenario; it is not. In terms of our future relationship with the European Union, we are working towards a deal and a good, deep and special partnership that covers both trade and security.

[Nicky Morgan (Loughborough) (Con)]

May I follow that up? The tenor of the Prime Minister’s negotiations last week and of her statement in the House today is very much, as she says, to seek a creative and pragmatic approach to a new, deep and special partnership. “Partnership” is the key word, is it not, because no partnership would be possible without dialogue within this House, with our European neighbours, with our fellow member states and within the Cabinet? Will she assure us that those talks will continue and that she will not listen to those, unfortunately sometimes on these Benches, who want talks to stop and us to go on to WTO rules?

[The Prime Minister]

I can assure my right hon. Friend that the negotiations are continuing. As I have said, we want to ensure, as we are doing, that we work towards getting a good deal. The purpose of my Florence speech was to set out a vision for that deep and special partnership in the future, and it is that partnership that the Government are working towards.

[Joanna Cherry (Edinburgh South West) (SNP)]

There has been much talk today of the time-limited implementation period that the Prime Minister referred to in her Florence speech. Others have referred to it as a transitional deal. Has there been any discussion with the EU27 as to what the legal basis of such a transitional period would be? Would it be article 50 or something else?

[The Prime Minister]

The European Union raised a similar concept to the implementation period in its April guidelines, and that would be on the basis of the article 50 process.

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

On the matter of North Korea, the Select Committee on Defence recently took evidence from a group of academics who argued that North Korea may already have an ability to reach the United Kingdom with a thermonuclear weapon. If that is true, does the Prime Minister agree that it would be the utmost folly to abandon our independent nuclear deterrent?

[The Prime Minister]

I absolutely agree that it would be folly to abandon our independent nuclear deterrent. There are many reasons why it is important for us to maintain and, as Parliament has voted, to upgrade our independent nuclear deterrent. It is also important because it is part of the collective defence of Europe that we provide as a member of NATO.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

The Government’s position on the Brexit negotiations is simply absurd: the Prime Minister refused to rule out no deal just a moment ago; the Brexit Secretary was threatening no deal last week; and the Home Secretary was saying that no deal was “unthinkable”. What is this going to cost the British taxpayer? The Home Secretary told us that £50 million is already being spent this year on contingency planning in her Department. How much is now being spent across Government, and how many nurses, doctors or police could that pay for?

[The Prime Minister]

I have already said at this Dispatch Box that the Treasury has set aside £250 million this year to be spent across Government Departments on preparing contingencies for every eventuality.

[Vicky Ford (Chelmsford) (Con)]

I congratulate the Prime Minister on the great progress and change in tone of the negotiations. I particularly thank her for the progress that has been made on the citizens’ rights issue. Will she give us more detail on the areas where agreement has been cemented?

[The Prime Minister]

There are a number of areas where agreement has been reached, such as payments on pensions and healthcare arrangements for both EU citizens here in the UK and UK citizens in the EU. There are a small number of areas where we have yet to reach agreement but, as I said in my statement, it is clear from both sides—from the UK and from Michel Barnier and the European Union—that we can see the shape of that deal and that we are within touching distance of getting there.

[Ian Paisley (North Antrim) (DUP)]

I, too, welcome the Prime Minister’s statement and look forward to progress being made, especially after December when we move to phase 2 of the negotiations. However, has the Prime Minister taken the opportunity to remind the Republic of Ireland’s Taoiseach that it is about time that he started to pull his weight in the interests of the Republic of Ireland, rather than attempting to throw his weight around on the issue of the border? All that he doing is potentially damaging his economy more than the economy of Northern Ireland. Will the Prime Minister make an impression on the Labour party’s Front Benchers that when they visit Northern Ireland and threaten that the peace process is an exchange for Brexit, they are playing with fire and they ought not to encourage that beast?

[The Prime Minister]

It is very important that all sides are clear that we must ensure that the Belfast agreement is put into place, recognised and respected in its entirety. It is also important that we ensure that the peace programmes that have been possible through our membership of the European Union can continue. When it comes to resolving the issue of the border between Northern Ireland and the Republic, it will be for us to work with the Republic of Ireland Government and the European Union more generally to find a solution that we all want to see, whereby there is no physical infrastructure at the border and no return to the borders of the past.

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

May I reassure my right hon. Friend that anyone who is suggesting that she is weak is seriously underestimating her, seriously underestimating the Conservative party, which supports her, and underestimating the importance of the referendum mandate and the fact that she obtained more votes than any other Conservative leader for 30 years? Will she stick to her guns, follow through and have confidence that the only people undermining her on the Conservative side are those who, unfortunately, are threatening to go into the Lobby with the Labour party?

[The Prime Minister]

I thank my hon. Friend for the confidence that he has shown in me. I am sure that all members of our party want to ensure that we get the best possible deal for the United Kingdom. That is what the Government are working to, and I look forward to everyone on the Conservative Benches supporting us.

[Mr Ben Bradshaw (Exeter) (Lab)]

Did the EU Council discuss Russia, and in that context have the UK Government or their agencies been asked for help or information by the American congressional team or US special counsel Robert Mueller, who are investigating alleged Russian subversion of the US presidential election?

[The Prime Minister]

As it happens, on this occasion, Russia was not one of the subjects on the agenda of the European Union Council. As I say, we did discuss a number of foreign policy issues—North Korea and Turkey were on the agenda, but Russia was not.

[Several hon. Members rose—]

[Dr Julian Lewis (New Forest East) (Con)]

If our EU friends were to demand a sum of, say, £1 trillion, rather than £100 billion, the position of the Opposition would have to be to accept that, because they would not walk away under any circumstances. Given that the Government would walk away under unacceptable circumstances of that sort, can the Prime Minister reassure us that all necessary preparations will be made so that we can walk away without a deal if we need to, which will, of course, maximise the prospect of getting a good deal and not having to walk away?

[The Prime Minister]

Can I say to my right hon. Friend that, indeed, we are ensuring that the Government are preparing for all contingencies? That is a sensible, pragmatic approach for any Government to take. Of course, we are working for a deal, as I have set out in answer to earlier questions. Can I also thank my right hon. Friend for very graphically illustrating the position that has been taken by the Labour party, which is that it would simply pay any price for a deal, whatever?

[Liz Kendall (Leicester West) (Lab)]

The Prime Minister says she wants a deep and special partnership with the EU, but some of her colleagues want a total and complete break. Is not the truth that her failure to resolve this fundamental issue is what stalled the negotiations and put the future of our country at risk?

[The Prime Minister]

No, the hon. Lady obviously failed to recognise the progress that was made at the European Union Council and the decision that was taken—that the EU27 will now be preparing their position in the negotiations on the future partnership and an implementation period in the lead-up to that partnership. In the Florence speech, I set out our vision for what that future partnership would look like, and it is now for them to look at what they believe that partnership should be in the future, and that is exactly what they are doing.

[Mr Owen Paterson (North Shropshire) (Con)]

Last year, the European Union had a surplus with us of £71.8 billion. A report last week said that if we moved to tariffs, the German auto industry alone would lose 29,000 jobs. Was there any realisation at all, during my right hon. Friend’s discussions, of the impact of not discussing free trade arrangements, because it is massively in the interests of our partners to maintain reciprocal free trade? Do they understand that they would lose far more if we moved to WTO than we would?

[The Prime Minister]

It is very clear that, across the European Union, it is recognised that we need to look at what a trade relationship in the future might be, precisely because, as I, my right hon. Friend and others have said, this is not just about the United Kingdom’s future position; it is also about jobs in the economies in the EU27. As I say, the EU27 are now looking at what they think that partnership could be for the future, and, of course, as I am sure my right hon. Friend is aware, there are a number of organisations on the continent now starting to talk about the importance of this relationship for their businesses in the future.

[Heidi Alexander (Lewisham East) (Lab)]

Could I ask the Prime Minister a question that the Brexit Secretary was unable to answer last week? Given that the Government now envisage a two-year transition period where the existing structures of rules and regulations apply, can she clarify whether a pharmaceutical company wanting authorisation to market a new cancer drug in the UK during transition would do so via the European Medicines Agency or a new system as yet undefined?

--- Later in debate ---

[The Prime Minister]

The intention of the implementation period is, as far as possible, to ensure that there is not a cliff edge so that people are able to operate on the same basis as they do at the moment as they put in place the necessary changes leading up to the future partnership. Of course, that implementation period, which is now going to be looked at by the EU27, will be part of future negotiations.

[Mr John Whittingdale (Maldon) (Con)]

Does my right hon. Friend agree with the Committee on Exiting the European Union that it would be in the best interests of both sides if we could conduct the negotiations on the divorce settlement in parallel with those on our new relationship? Does she therefore agree further that any flexibility on the size of our exit payment must be linked to flexibility in other areas to be negotiated?

[The Prime Minister]

I, and the Government, have been very clear that the whole question of the financial settlement cannot be finally settled until we know what the future partnership will be. It is not that we are going to sign up to a deal and then negotiate what that future partnership will be, so once the formal negotiations on the future of the trade relationship, and of course the security relationship, have started, there will continue to be negotiations on issues which were initially identified as being in phase 1.

[Stella Creasy (Walthamstow) (Lab/Co-op)]

Since the Brexit vote there has been a 96% drop in EU nurses registering to work here. With an NHS vacancy rate of 86,000 and rising, just how much bigger does this crisis have to get before the Government stop using these medics as bargaining chips and do something to make sure that there are nurses and doctors in our A&Es this winter?

[The Prime Minister]

First of all, I reiterate the point that I made in my statement and have made on a number of occasions—we value the contribution that EU citizens have made here in the United Kingdom and we want them to stay. The hon. Lady talks about numbers of nurses. There are more nurses in the NHS today than there were in 2010, and we have taken off the limit on the number of nurses who can be in training. There are 52,000 nurses in training, and there were two applicants for every nurse training place here in the United Kingdom.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

Does my right hon. Friend agree that the progress achieved at the Council meeting demonstrates again that there is a weight of logic on both sides, both ours and the EU’s, that lends itself to a deal being done? Will she reassure the House that in the important weeks ahead every ounce of effort will be marshalled right across members of her Government to achieve that end?

[The Prime Minister]

I absolutely agree with my right hon. Friend that this is in both our interests. I can reassure him that Government as a whole, collectively across every Department, are putting the necessary effort into looking at what legislation we need to bring forward but also at preparing for all eventualities once these negotiations have finished. The whole effort of Government is being put into this.

[Tony Lloyd (Rochdale) (Lab)]

The Prime Minister has raised expectations about the situation between Northern Ireland and the Republic, and that is welcome. Having no physical infrastructure on the border must be welcomed by all parties. But is it conceivable that this can be done without real negotiation between Dublin and London, and of course with Brussels as well, and is it really possible that we can talk about no deal in that scenario?

[The Prime Minister]

It is not that expectations have been raised this time in relation to this—it is the position that we have taken, and consistently taken, since my Lancaster House speech in relation to not wanting to see a return to the borders of the past between Northern Ireland and the Republic of Ireland. As I said in answer to a previous question, ensuring that we get the solution to this will require us not just to work with the European Commission and with the EU27 but to work hard with the Republic of Ireland Government as well.

[Mr John Baron (Basildon and Billericay) (Con)]

The Prime Minister is absolutely right not to rule out a no deal scenario. To do otherwise would be utterly naive. What assurances can she give that the implementation period will, indeed, be strictly time-limited?

[The Prime Minister]

The key issue is that this is about the period of time required to make the practical changes that are necessary to move to the future partnership. Of course, by definition, those changes will have a time limit to them. I have said that that will be around two years, on the implications of the practicalities of what we are looking at. It is absolutely essential that it is time-limited, because we will have left the European Union and we will be moving to a new partnership. People in the United Kingdom want to ensure that we get to that partnership and our new arrangement outside the European Union.

[Mr Speaker]

I call Dr Philippa Whitford. [Interruption.] She looks surprised. It will not breach a precedent if the hon. Lady does not wish to contribute. She is not obliged to do so, but I assumed that she would wish to contribute, and she is welcome to do so. Let us hear the hon. Lady.

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

We have heard about the possibility of a no deal Brexit. What about the threat that that would pose, through leaving the single aviation market, to this country’s entire aviation industry?

[The Prime Minister]

We are aware of the necessity of looking very closely at and negotiating deals in relation to aviation, because we want people still to be able to fly, as they can today. But, once again, the hon. Lady is focusing on a no deal scenario, when the efforts of Government are being put into getting a good deal.

[Mr Speaker]

Absolutely splendid. A true parliamentarian is never lost for words.

[James Duddridge (Rochford and Southend East) (Con)]

Although we all hope that our European partners will start to negotiate on trade, is there not a silver lining if they are unreasonable? If that happens, we will have to move towards WTO rules, and suddenly the French and Germans will realise what a disaster that would be—for their economies, not ours. They will negotiate a good deal, and we will not write out the blank cheque that Labour Members want to give them.

[The Prime Minister]

My hon. Friend is right. I think it is in the interests of both sides—businesses here in the UK, and businesses in the EU27 countries—that we get that deal on trade. That is why we are working so hard for it.

[Chris Bryant (Rhondda) (Lab)]

When are we going to have the Committee stage of the European Union (Withdrawal) Bill? I ask only because if there is any hiatus or gap in the legislative programme, there is another Bill that has unanimously been given its Second Reading—an occasion on which the Conservatives did not vote, but that was because they were in support of the Bill—and that is the Assaults on Emergency Workers (Offences) Bill. Can we not just bring it into Committee and get it all the way through the process by Christmas, so that we can stand by our emergency workers?

[The Prime Minister]

I note the hon. Gentleman’s bid in relation to this matter. He tempts me to make a business statement, which I will not do because that is, of course, a matter for my right hon. Friend the Leader of the House. I am pleased that the Government are able to support the Bill that the hon. Gentleman has brought forward. I think that it is important, and we look forward to seeing it on the statute book.

[Sir Desmond Swayne (New Forest West) (Con)]

Will my right hon. Friend show caution in respect of the suggestion that she reach out to, and enlist the support of, Opposition Members, particularly those who have shown their desire to thwart Brexit at every turn by voting against the principle of the withdrawal Bill?

[The Prime Minister]

My right hon. Friend, with his many years of wisdom, is right to urge caution on me in that regard. He is absolutely right that the Labour party has tried to thwart the very measure that would enable us to put in place the decision taken by the British people.

[Chuka Umunna (Streatham) (Lab)]

As we have heard this afternoon, many Conservative Members claim that leaving with no deal and trading on WTO terms will be relatively straightforward. But if we are in a no deal scenario, we will still need the EU, in its capacity as a member of the WTO, to agree to the new terms of our independent membership of the WTO. Can the Prime Minister guarantee that if there is no deal with the EU, she will at least get its agreement to the new terms of our independent membership of the WTO?

[The Prime Minister]

The whole question of our membership of the WTO, and the independent role that we will take once we are outside the European Union, is one on which the Department for International Trade is already working. It is looking ahead, with partners such as the European Union, to the position that we are going to take.

[Philip Davies (Shipley) (Con)]

The reason why this country has been so successful in the past and will be in the future is our belief in the rule of law. May I therefore urge the Prime Minister to pay the European Union what is legally due to it when we leave the EU—not a penny less, but not a penny more either? If the Government have spare tens of billions of pounds in their coffers, and I am not sure that they do, that money should be used to pay for things such as social care and pay rises for public sector workers, not to go into the bottomless pit of the EU and into Jean-Claude Juncker’s wine cellar, which I am sure is rapidly diminishing as we speak. We cannot look public sector workers in the eye if we give tens of billions of pounds to the EU that we do not legally need to give to it and hold back their pay at the same time.

[The Prime Minister]

I assure my hon. Friend that, as I said in the Florence speech and have reiterated today, we are clear that we will honour our commitments, but we are going through those commitments line by line. Of course, part of the discussion about those commitments is precisely the legal nature of them. We are a law-abiding nation and we want to ensure that we stand by the commitments that we have made, but we are not just going to sign up to anything, as the Labour party would do.

[Catherine West (Hornsey and Wood Green) (Lab)]

Tomorrow, a number of EU nationals will converge on Parliament to speak to their Members of Parliament about their many feelings of distress and anxiety. What is the Prime Minister’s message to those individuals?

[The Prime Minister]

My message to them is that we value the contribution they have made here in the United Kingdom and we want them to stay. That is what we are working for, and we have made significant progress in relation to citizens’ rights. I made a number of commitments in a letter I wrote last week to EU citizens living here in the United Kingdom, and I stand by those commitments. We want them to stay.

[Crispin Blunt (Reigate) (Con)]

Does my right hon. Friend agree that, by some happy accident, we have actually ended up in a rather more constructive space for a successful deal, because we are now going to have two months of private diplomacy on the future deep and comprehensive free trade agreement with our EU partners? Even so, it is necessary for us to prepare for no deal—these talks may fail—and even Gina Miller agrees with me that we should begin to surface the Government’s own preparations for their contingency plans. Does my right hon. Friend agree that the preparations should be surfaced so that not only the Government but businesses and people can begin to make the necessary contingency plans?

[The Prime Minister]

We are working to get the deal that we believe will be in the interests of the UK and the European Union for the future. That is where our focus is. Of course, as I have said, we are working across Government to make contingency arrangements for every eventuality. However, as I have also said, we are in negotiations, and we are not going to give a running commentary on every detail of them. We continue to work for what I believe is in our best interests, which is to get a good deal for us and for the European Union.

[Stephen Kinnock (Aberavon) (Lab)]

Last week, I took part in an Exiting the European Union Committee trip to Dover, where 10,000 heavy goods vehicles are processed per day. There we were told that if an extra two minutes are added to the customs proceedings, there will be an additional 17 miles of tailback—from Dover to Ashford. We were also told that, in that context, a no deal scenario would be a total catastrophe. Will the Prime Minister please explain what measures are being put in place to avoid total gridlock in Dover in the event of a no deal scenario? [Interruption.]

[Mr Speaker]

Order. It is a long way from Northumberland. The hon. Member for Blyth Valley (Mr Campbell) is wittering away from a sedentary position in evident appreciation of the point articulated by his hon. Friend, whose constituency is far distant from his own. It is all inexplicable.

[The Prime Minister]

I think the hon. Gentleman was making the point from a sedentary position that this issue will actually affect others on the other side of the channel, as well as those in the United Kingdom.

The point is that we have published proposals. The future customs relationship will be part of the negotiations, as we look to the future trade relationship, but we published proposals in the summer about a number of options that could be adopted to ensure that we see trade that is as frictionless as possible across the borders, and the problem that the hon. Member for Aberavon (Stephen Kinnock) raises does not arise.

[Mr Speaker]

It was very good of the Prime Minister to explain what the hon. Member for Blyth Valley was blathering on about, because I could not tell. I am very grateful for that bit of information.

[Mr Peter Bone (Wellingborough) (Con)]

This morning I met a gentleman who was singing the praises of the Prime Minister, saying that she is determined yet patient and that she gets things done. I think that the whole House would agree with that. He went on to say that he reads the newspapers and is very concerned about progress not being made and about things being terrible. Does the Prime Minister agree with what the newspapers are saying or not? One other thing, Mr Speaker: I asked the man what newspaper he read and it was the Evening Standard.

[The Prime Minister]

I say to my hon. Friend that we have a free press in this country and that is an important underpinning of our democracy. What I know is what the Government are doing to ensure that we get a good deal for the future.

[Mr Speaker]

Mr Campbell, I heard you from your seat; let us hear you on your feet if you are still interested.

[Mr Ronnie Campbell (Blyth Valley) (Lab)]

And here’s me thinking you weren’t going to call me, Mr Speaker.

Seeing as we are not in the euro, will the Prime Minister guarantee that none of the money that the EU finally gets off us will be used to prop up the euro? That is a good question, like Mr Speaker said. We are not in the euro, so our money should not be used for it. The only problem the Prime Minister has is that some of her Cabinet Ministers are walking up the gangway towards the gallow.

[The Prime Minister]

My party has a track record of ensuring that we do not have to contribute to propping up the euro. That is exactly what my right hon. Friend the previous Prime Minister negotiated with the European Union.

[Mr Shailesh Vara (North West Cambridgeshire) (Con)]

I welcome the Prime Minister’s statement and the progress she has reported to the House. I do not believe that EU citizens living in the UK should have the European Court of Justice as the final arbiter of any disputes when we leave the EU. However, to the extent that this matter remains on the agenda for Brussels, will she give an assurance to the House that Britain is demanding that British citizens living in EU countries have recourse to our Supreme Court and not the ECJ?

[The Prime Minister]

The point that my hon. Friend makes shows up the issue of which court should have supremacy over such issues. What I have said in relation to citizens’ rights, which is one of the issues that remain on the table, is that we will give certainty to EU citizens in the United Kingdom by ensuring that what is agreed as part of the withdrawal agreement is put into UK law. They will then be able to take cases to the courts here in the United Kingdom. Of course, it is the case that courts here in the UK look at judgments that have been made by other courts, not just the ECJ, in matters where they are relevant. The important thing is that it is through our courts that EU citizens will be able to take their cases.

[Mike Gapes (Ilford South) (Lab/Co-op)]

The Prime Minister used her new mantra of a “deep and special partnership” three times in the statement, even though the lack of progress, the business uncertainty and the splits in her Government mean that in reality, the phrase “deep and special” is the new “strong and stable”—an empty slogan from an empty-vessel caretaker Prime Minister. [Interruption.]

[Mr Speaker]

Order. Gosh, it really is a day of name-calling. I cannot imagine that that is the sort of behaviour I would ever have indulged in.

[The Prime Minister]

I say to the hon. Gentleman that what we saw at the European Council was the EU27 moving towards their own discussions about what that deep and special partnership will be in the future.

[Alec Shelbrooke (Elmet and Rothwell) (Con)]

There are some misguided amnesiacs who think that nationalisation is good way forward. There are also some who think that we should stay in the single market. Will my right hon. Friend confirm that, due to state aid rules, a country cannot nationalise if it is in the single market?

[The Prime Minister]

My hon. Friend is absolutely right. That is yet another of the confusions in the Labour party that show that it really does not know where it is going.

[Wera Hobhouse (Bath) (LD)]

Following on from the question by the hon. Member for Aberavon (Stephen Kinnock), the members of the Exiting the EU Committee in Dover were also told, by a representative of the Port of Calais, that a lorry park would not be built in Calais. It could not operate without it, but it would not build a lorry park because of migrant issues, and the Port of Calais, under current circumstances, would have to close. Has the Prime Minister considered that problem?

[The Prime Minister]

What we have done, and what we will continue to do when we move on to the negotiations on trade, is talk about the future customs relationships we want to have with the European Union. We have set out proposals for that and we look forward to discussing them with the EU.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

I was very pleased that the Prime Minister confirmed that the UK is fully playing its part on migration, and to hear that the Royal Navy had intercepted 172 smuggling boats and saved over 12,000 lives since Operation Sophia began. Will she confirm that, at the summit, the EU reported it has a looming deficit or pay gap of £225 million in the money going to migration projects in north Africa? I understand that Germany and Sweden offered more money towards those projects. Can she confirm that and say whether any other EU countries were forthcoming in offering more money to help to save lives?

[The Prime Minister]

My right hon. Friend is referring to the trust fund that has been established in relation to migration matters in Africa to which the UK has, alongside others, contributed. She is right that the Commission reported that deficit. From the United Kingdom’s point of view, we are putting extra money into activities in Africa in relation to supporting people in countries of origin and transit. We are working alongside that trust fund. The work we are doing is amounting to £75 million.

[Helen Goodman (Bishop Auckland) (Lab)]

I am sure the Prime Minister’s confidence is well placed in that, were it necessary, the EU would agree to our being an independent member of the World Trade Organisation. In that situation, however, we would also need the agreement of every member, including Russia. What price does she think that Russia would extract?

[The Prime Minister]

We are a member of the WTO, but obviously we have that link in relation to the European Union. In future, we will want to be an independent member. We are working across the WTO to ensure we are able to put in place the necessary arrangements for that to happen.

[Jeremy Lefroy (Stafford) (Con)]

I thank the Prime Minister for the huge amount of work she is putting into these negotiations. I am sure she has the support of the whole House as she does so. Does she intend to ensure, as she mentioned in her statement, that free flow of data is an absolutely integral part of any future relationship between the UK and the EU?

[The Prime Minister]

I am very happy to give my hon. Friend that reassurance. As I said when I was at the European Council, the free flow of data is important for us in relation to operations, in particular building a digital single market. Another point that I and others made is that we should look at the digital market as not just being about the European Union. Actually, this is a global issue. We need to ensure that the work is done on a global basis.

[Angela Smith (Penistone and Stocksbridge) (Lab)]

The Prime Minister talks a great deal about an implementation deal. We all know that we will be withdrawing in March 2019. There is no disagreement on the divorce deal. The free trade deal, however, may take some time to negotiate. Does the Prime Minister accept—this is what business needs to hear—that a transition deal may help to deal with the finer detail and the final conclusion of the trade negotiation, and therefore will not be so much of an implementation but a proper transition?

[The Prime Minister]

Both sides recognise that the timetable was set out in the Lisbon treaty, which does indeed refer to the future relationship. The withdrawal agreement can only be considered and agreed taking account of the future relationship. It is important that we negotiate that future relationship, so we have both the withdrawal agreement and the future partnership, and the implementation period then is a practical implementation period.

[Angela Smith]

indicated dissent.

[The Prime Minister]

The hon. Lady looks as if she does not believe that that is possible. The point is that we start these negotiations on a completely different basis from any other third country. We start on the basis that we are already trading with the other member states of the European Union on the basis of rules and regulations, and when we leave we will have taken those EU regulations, EU law and the EU acquis, into UK law.

[Mr Speaker]

I think it is time to hear from the hon. Member for Huntingdon (Mr Djanogly), whose father is a sound Arsenal fan.

[Mr Jonathan Djanogly (Huntingdon) (Con)]

Actually, he always used to take me to Nottingham Forest, but there you are.

In contrast to the disappointment coming consistently from the bureaucracy of Europe, in my right hon. Friend’s discussions with the leadership—the politicians—of Europe and individual member states, is the position more nuanced? Is there hope for optimism?

[The Prime Minister]

Yes, there is hope for optimism. Obviously, we are negotiating a future partnership. One of the interesting issues is that the EU27 are themselves starting to think about their future and the nature of the relationship and arrangements they will have. We are working to negotiate that deal. As I indicated to the hon. Member for Penistone and Stocksbridge (Angela Smith), we will start those trade negotiations on the same basis of trading, which will make it easier for us, as it will not need to be as bureaucratic as it might in other circumstances.

[Paul Flynn (Newport West) (Lab)]

Given that the prestigious Organisation for Economic Co-operation and Development reported last week that the British economy would be far stronger in the future without Brexit, and given that new horrors about Brexit are revealed on an almost weekly basis, is it not right that three years after the referendum, when we are thinking of taking this step, we allow the public to have a second opinion, in the knowledge that second thoughts are always superior to first thoughts?

[The Prime Minister]

This is about more than the decision to leave the EU; it is about whether the public can trust their politicians to put in place the decision they took. Any suggestion that we say to the public, “Oh, you’d better have a second referendum because we think you got it wrong,” is out of the question. We will be leaving the EU.

[Suella Fernandes (Fareham) (Con)]

I welcome my right hon. Friend’s update and the tone and manner in which she is representing the UK during these negotiations. Although no deal is obviously better than a bad deal, does she agree that given reports that the German Foreign Ministry is preparing a draft trade accord and the Swedish National Board of Trade is drawing up trade plans, there are grounds for optimism that a mutually beneficial trade agreement can be struck that honours the instruction from the British people last year?

[The Prime Minister]

I absolutely agree with my hon. Friend that there are grounds for optimism that we will be able to move on to those detailed trade negotiations and get that good trade deal. As her question illustrated, it is precisely because this matters to others in the EU, not just to us, that it is in both sides’ interests to have that trade deal.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

With a third of the designated negotiating time already passed, is it not clear that the EU holds the best cards? Would it not be far wiser for the British Government to perform a tactical retreat and base their position on permanent status within the customs union and the single market, instead of accelerating towards an uncertain destiny that costs jobs and further squeezes living standards?

[The Prime Minister]

The British people voted to leave the EU and that is what we will be doing, and that means we will no longer be full members of the customs union or the single market. We should be optimistic, however, about the opportunities that will be open to the UK, as a sovereign nation, not just from a good trade with the EU but in negotiating trade deals around the world.

[Mr Nigel Evans (Ribble Valley) (Con)]

Does the Prime Minister believe that there are still too many refuseniks on the Opposition Benches who find it impossible to come to terms with the result of the referendum, that by their antics they undermine not just the Government’s bargaining position but their own constituents’ verdict, and that the image of some of them crossing the channel recently, paying homage to the Commission, holding a bowl of British taxpayers’ money, like some Oliver Twist in reverse, saying, “Please sir, can we give you more?”, was not just absurd but a slight to the British taxpayer?

[The Prime Minister]

I agree with my hon. Friend. I am afraid that all we hear from the Opposition Benches are speeches and questions and, indeed, votes that are intended to thwart the will of the British people. What British taxpayers want is for the Government to get on with the job, which is exactly what we are doing. What they do not want is an Opposition who say to the European Union, “Just tell us the bill, and we will pay whatever it is.”

[Mr Speaker]

Tom Brake.

[Tom Brake (Carshalton and Wallington) (LD)]

Thank you, Mr Speaker. I thought that that might be the timing.

When is the Prime Minister going to face down the ideologues in her party—on her Back Benches, and, indeed, in her Cabinet—who, from the safety of their stately homes and their châteaux, their trust funds and their inherited wealth, clamour for a no deal that they know would do huge damage to the “just about managing”, leave the UK weaker, and make our position in the world much smaller? When is she going to stand up for remain voters, and, indeed, for the leave voters who do not want the economic catastrophe that the Eurosceptic obsessives on her Benches wish to inflict on us?

[The Prime Minister]

I will tell the right hon. Gentleman who I am standing up for. I am standing up for the British people who voted that we should leave the European Union—unlike the Liberal Democrats, who want to tell the British people that they got the answer wrong. They did not. We gave them the choice, they voted, and we will deliver what they voted for.

[Martin Vickers (Cleethorpes) (Con)]

Over the weekend, television broadcasters and newspapers have repeatedly used a photograph in which the German Chancellor and the French President are covering their mouths. Viewers of “Match of the Day” will be familiar with that pose, which is usually adopted by managers and coaches on the bench when they do not want the opposition to see their change of tactics. Does my right hon. Friend detect a change of tactics among our European colleagues, and does she think that they have ruled out victory, fear defeat, or are playing for a score draw?

[The Prime Minister]

I do think—this was clear from some of the comments from other European leaders which I quoted earlier—that the speech that I gave in Florence has brought about a change in momentum, and has been a spur to the negotiations and the progress that was made at the European Council. However, I could not possibly comment on what Chancellor Merkel and President Macron were saying when they were talking to me in that manner.

[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

Today the North West British Leadership Team warned about the consequences of Brexit for jobs in the region, particularly manufacturing jobs. Is the Prime Minister withholding information about the risks posed to manufacturing by a bad Brexit, or, indeed, any Brexit?

[The Prime Minister]

As I have said, what I see is optimism about the trade deal that we can secure for the future with the European Union and about the trade deals that we can negotiate around the rest of the world, but also optimism about what we can do here in the UK, through our modern industrial strategy, to ensure that this is a country that works for everyone, that we see jobs being created in the north-west and in other parts of our country, and that we see those jobs—yes, in manufacturing, but also, crucially, in sectors of the future, such as artificial intelligence and driverless cars.

[Dr Sarah Wollaston (Totnes) (Con)]

I welcome the Prime Minister’s positive approach, and the news that we are within touching distance of a deal, because that is in everyone’s best interests. However, in preparing for all eventualities, would the Prime Minister be willing to reinstate the seasonal agricultural workers scheme? Businesses in my constituency are keen to plan ahead for all eventualities.

[The Prime Minister]

I was Home Secretary when the scheme ended, and at that stage the Migration Advisory Committee made it clear that it felt it was not necessary to reintroduce it, at least for a period of time. However, the current Home Secretary has asked the committee to look into immigration needs throughout the UK economy. I am sure that that will include consideration of the sector that my hon. Friend has spoken about, and of whether or not a seasonal agricultural workers scheme is necessary.

[Kevin Brennan (Cardiff West) (Lab)]

I wonder whether the Prime Minister heard the Foreign Secretary’s attempt to be helpful this morning, following the European Council, by quoting Shakespeare, including the lines:

“There is a tide in the affairs of men,

Which taken at the flood, leads on to fortune.”

Those lines, from “Julius Caesar”, were uttered by Brutus, who went on to stab his leader and came to a sticky end himself. Is that not a perfect metaphor for the Prime Minister’s predicament?

[The Prime Minister]

I always welcome the literary and classical references that my right hon. Friend the Foreign Secretary brings to bear in his speeches and statements, and he and I are both working to ensure we get the right deal for the United Kingdom when we leave.

[Oliver Dowden (Hertsmere) (Con)]

I, too, was listening to the Foreign Secretary’s speech, and I was heartened by his remarks on Korea. I thank my right hon. Friend the Prime Minister for her update on those discussions at the European Council; does she agree that, as we leave the EU, it is more important than ever that we reassure our important friends and allies in that region, such as Japan and the Philippines, that our support for them remains undimmed, and, indeed, is stronger than ever?

[The Prime Minister]

I am very happy to give my hon. Friend that reassurance. Indeed, I spoke to Prime Minister Shinzo Abe this morning to congratulate him on his victory, but also to reinforce the fact that we in the United Kingdom want to build on and enhance our relationship with Japan. We will continue to work with it and other international partners to ensure we get the right result by stopping the Democratic People’s Republic of Korea’s illegal activities, but we also want a stronger defence and trade relationship with Japan in the future.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

On European security, in the week when Hillary Clinton reminded us of how pleased the Russians are about Brexit and instability across Europe, was there a discussion in the Council about the part Russia plays in Europe and the security of our nation going forward?

[The Prime Minister]

As I said in response to the right hon. Member for Exeter (Mr Bradshaw) earlier, Russia was not a subject on the agenda of this European Council, but it has been on previous Council agendas. The hon. Gentleman talks about disruption across Europe; of course, the Russians have indulged in disruptive activity—not just the illegal annexation of Crimea, but also the actions it has taken to interfere in democratic elections in a number of countries. This is a subject that I am sure the Council will return to.

[Antoinette Sandbach (Eddisbury) (Con)]

My right hon. Friend has outlined the progress being made in the negotiations. That is particularly important in terms of exports by the services sector, which accounts for 80% of our economy. The sector has no protection under WTO rules; what assessment has been made of the impact of no deal on the services sector?

[The Prime Minister]

As I said earlier, we are obviously looking across all parts of our economy in the work we are doing for the future. My hon. Friend is right to raise the issue of the services sector, as it is very important for the UK, and it is one of the key issues we will be focusing on in the trade negotiations for the future. We have always been very clear that this is about both goods and services, and we want to retain both the value of our services sector and the world leadership that we have in many aspects of it.

[Stephen Gethins (North East Fife) (SNP)]

The Brexit Secretary rightly says that it is useful to be able to know that, when Barnier speaks, he does so on behalf of a unified EU27 in terms of the negotiations. If Barnier wants to know the unified position of the UK Government, whom should he speak to?

[The Prime Minister]

The hon. Gentleman knows very well that that is in the Florence speech.

[Stephen Hammond (Wimbledon) (Con)]

I thank my right hon. Friend for her statement and warmly welcome the progress she has outlined towards the deal that both we and our European partners require. I also welcome the statement about EU citizens. I note that my right hon. Friend says in her statement that “there are a small number of issues that remain outstanding”. What progress might be made in front of the December Council on those matters, because resolution of that would represent a real Christmas present for many EU citizens in my constituency and elsewhere?

[The Prime Minister]

I think both sides see the possible options for moving to that agreement, and I hope we can make rapid progress on that over the coming weeks leading up to the December Council.

[Clive Efford (Eltham) (Lab)]

The best contribution to the negotiations that the Government can make is the Prime Minister having a deep and special relationship with her fellow Cabinet members. If we are within touching distance of a common agreement, as she has said several times, it is surprising that there are so many different positions coming from her Cabinet colleagues so close to the recent summit. Can she get a grip of her Government, because that would be the most significant contribution to our negotiating position?

[The Prime Minister]

I used the phrase that we were within touching distance of a deal in relation to the citizens’ rights issue, and I have just indicated in response to my hon. Friend the Member for Wimbledon (Stephen Hammond) that there are a number of issues still on the table, but I think we can see where we can go to ensure that we get that deal and that agreement. The Government are very clear on the position we have taken into the negotiations. I set it out in the Florence speech, and that is setting that vision for the future deep and special partnership. It is that vision that the European Union is now responding to.

[Nigel Mills (Amber Valley) (Con)]

I welcome the conclusions about the need to have a fair and effective tax system in which all companies across Europe pay their share of taxes. Did the Prime Minister have the chance to urge the EU to follow the progress we have made on more transparency for international companies, and will she commit to extending that to overseas owners of UK properties?

[The Prime Minister]

My hon. Friend raises an interesting point. We have made clear to the European Union the work that the UK has done on this in the past. There was a particular discussion on this issue in relation to the digital market, and also a recognition in the European Union, given what we have always said and the efforts that we have made in the past, that this is an issue that has to be looked at on a global scale and not just within the European Union.

[Ian Murray (Edinburgh South) (Lab)]

Surely the Prime Minister must recognise the concerns of business leaders about the lack of progress on at least a transitional deal, given that they are having to make decisions about investment and jobs in this country over the next 18 months to two years. What message does she think it sends to the people who create jobs and wealth in this country when her Cabinet is completely split over whether there should be a no deal cliff-edge scenario?

[The Prime Minister]

The Government are working to ensure that we get the best possible deal for the United Kingdom. That is where our efforts are being focused, and that is what we will continue to do. I set out the implementation period in my Florence speech, and, as I indicated earlier, this issue was alluded to by the European Council and by the Commission in the April guidelines. This is a matter on which I believe we can make progress because it is in both sides’ interests.

[Robert Neill (Bromley and Chislehurst) (Con)]

I thank the Prime Minister for her statement, for the constructive progress that has been made, and in particular for her reference in her reply to my hon. Friend the Member for Sandbach to the importance of financial services—[Interruption.] I am sorry, I meant my hon. Friend the Member for Eddisbury (Antoinette Sandbach). Eddisbury is remarkably close to Sandbach. I speak of course as a lowly West Ham supporter, Mr Speaker.

Will the Prime Minister bear in mind the important contribution that our Crown territory of Gibraltar makes to financial services? It strongly complements the City of London. Its Chief Minister is in London today, as she will know, and we will be celebrating the links later. Will she ensure that Gibraltar’s interests are firmly taken on board in relation to financial services, professional services and the operation of a free-flowing border as we go forward in the negotiations?

[The Prime Minister]

Yes, I am happy to give my hon. Friend that assurance. We have been clear that we have been keeping the Gibraltar Government in touch with the work that we have been doing, and we continue to work with them. We will continue to assure them that we will take their interests into account at every stage.

[Mr Speaker]

I call Mr Alan Brown.

--- Later in debate ---

[Alan Brown]

Thank you, Mr Speaker. A week after the universal credit debacle, the Prime Minister has the cheek to come to the Chamber and tell us that she is determined to put people first. The reality is that we are 16 months down the line and there is as yet no agreement on settled status for EU nationals. Given that that is a No. 1 priority, this does not bode well for the rest of the negotiations that we are trusting her with. However, if we are within touching distance of an agreement on settled status, what plans does she have for being able to process up to 3 million applications?

[The Prime Minister]

That is a matter for the Home Office, which is putting the necessary arrangements in place. We have set out very clearly what we believe the arrangements in relation to settled status for EU citizens here in the United Kingdom must be, but in putting people first, we must not just put EU citizens in the UK first; we must also put UK citizens in the rest of the European Union first. That is why it is necessary for us to ensure that their rights are also being guaranteed.

[Mark Pawsey (Rugby) (Con)]

The Prime Minister will have seen the recent EEF survey of companies’ future investment plans. Does she agree that it underlines how important it is for business that we get on to discussing trade arrangements at the earliest opportunity?

[The Prime Minister]

I absolutely agree with my hon. Friend. That was why I set out in my Florence speech what our future trade relationship could be like. That has elicited a response from the EU27, and they are now preparing for negotiations on that relationship.

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

May I just say what fine fettle the Prime Minister appears to be in, given the German media reports at the weekend suggesting that she was the opposite? Something must have been lost in translation. Anyway, does she share the concern of my constituents who work in the City of London at the declaration of the CEO of Goldman Sachs that he will be spending a lot more time in Frankfurt after all this? Similar musings have come out of J. P. Morgan and Morgan Stanley. What is the Prime Minister doing to stem the brain drain and corporate exodus that faces our great capital?

[The Prime Minister]

Of course we want to ensure that the City of London retains its place as the world’s leading financial centre. That has been reconfirmed recently. I say to those who think that the City of London will be damaged by our leaving the European Union that the very reasons why the City is so important in an international financial sense are the very reasons why it is important for the City to retain that financial services provision for the rest of the EU as well.

[Rehman Chishti (Gillingham and Rainham) (Con)]

Page 7 of the Europe Council conclusions refers to

“combating terrorism and online crime”

and

“readiness to support appropriate measures at EU level”.

Germany is introducing legislation to have extremist material taken down within 24 hours. Is that something that the United Kingdom will be doing and urging other European countries to do? We are all in it together to defeat these poisonous ideologies.

[The Prime Minister]

The taking down of material is very important, as my hon. Friend says, and through the Counter Terrorism Internet Referral Unit we have been taking down significant amounts of material. My right hon. Friend the Home Secretary is working with the tech industry and with internet service providers, and they have established a global forum. We want to ensure that this material is taken down not within 24 hours, but within one or two hours. That is what we are working towards with the industry.

[Kerry McCarthy (Bristol East) (Lab)]

Did the Prime Minister have a chance over dinner with Michel Barnier to discuss the fact that he is soon to meet leaders of the UK’s core cities to discuss the Brexit negotiations? Does she welcome the fact that he is willing to meet the representatives of 19 million people? Is it not rather rude of the Brexit Secretary not to be prepared to do so himself?

[The Prime Minister]

I have to say to the hon. Lady that I am aware that Michel Barnier is meeting a number of people here in the United Kingdom and elsewhere around Europe to discuss the issues, but the Brexit Secretary has indeed put in place arrangements for meeting the metro mayors to ensure that the interests of the people they represent are taken into account.

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

Businesses on Teesside will give a warm welcome to the Prime Minister’s announcement that we are closer than ever to a deal, which is obviously great news as it is important that we get a deal as quickly as possible. However, does the Prime Minister agree with me and with so many of my constituents that Labour’s position that no deal is not an option represents not so much negotiation as capitulation?

[The Prime Minister]

I absolutely agree with my hon. Friend. It is important that it is clear when we go into the negotiations that we want to get a good deal that is the best deal for both sides. However, if it is necessary—as I have said before—no deal is better than a bad deal.

[Peter Grant (Glenrothes) (SNP)]

The EU citizens I have spoken to since they received the Prime Minister’s email a week or two ago have taken no reassurance whatsoever from it. Does the Prime Minister accept that when she appears to make concessions to EU nationals, what matters is not how loudly her Back Benchers cheer, but how reassured those 3 million people actually feel? At the moment, they are not reassured at all by her email.

[The Prime Minister]

I recognise that we want to ensure that we get to an arrangement with the EU through which we are able to guarantee the rights of the EU citizens living here in the UK. I want them to stay. I value the contribution that they have made. I recognise that they will want reassurance, which is precisely why I indicated the various issues that I did in the email and the article that I wrote about their future here in the UK. However, we also want to ensure that the rights of UK citizens living in the EU are guaranteed as well. I am sure that the hon. Gentleman, as a Member of Parliament in the United Kingdom, would want to give reassurance to UK citizens living elsewhere in Europe.

[Richard Graham (Gloucester) (Con)]

I congratulate the Prime Minister on taking the talks on citizens’ rights so close to within touching distance of a deal.

The logic of an implementation period partly implies time to prepare for our future trading relationships with Europe and elsewhere. Will my right hon. Friend confirm that, during the implementation period, we will be able to negotiate both the cloning of existing EU free trade agreements and any new arrangements with other countries so that as many as possible become effective on day one after the end of the implementation period?

[The Prime Minister]

I thank my hon. Friend for raising an important point. It is indeed our intention to be able to ensure that during the implementation period we are able to conduct negotiations so that, when we reach the end state of our future partnership, we can open those trade arrangements with other nations around the world.

[Mrs Madeleine Moon (Bridgend) (Lab)]

There are two sets of documents that it would be helpful if the Prime Minister released to the House while we consider the European Union (Withdrawal) Bill. Is she willing to release the impact studies showing how Brexit will impact across Departments and across the UK, and also the legal advice on the powers that the House will assume for the devolved Administrations, many of which feel the House has no responsibility for subjects that are within their purview? Will she release those documents, please?

[The Prime Minister]

The hon. Lady talks about devolution and the arrangements with the devolved Administrations. We have been very clear about the issue, and we want to ensure that, when the powers that are currently with Brussels are brought back to the UK, we have a discussion and negotiation about those areas where we need to ensure we have UK frameworks in place. Her party’s Front Benchers suggest that, in fact, the powers should be devolved immediately to Northern Ireland—when there is an Executive—Scotland and Wales. Of course, that could lead to the break-up of the UK internal market, which is of most importance to those devolved Administrations.

[Rachel Maclean (Redditch) (Con)]

I know at first hand that the EU citizens in my constituency of Redditch welcome the Prime Minister’s commitments and remarks. I am delighted that she has made a practical statement on the cost of settled status being no greater than the cost of a British passport, which is welcome. Will she also consider the documents needed for a person to apply for settled status? The process could be difficult for someone who has migrated to this country, and addressing that will give them reassurance.

[The Prime Minister]

My hon. Friend raises an important practical point, and I know that a number of EU citizens are concerned about the process of applying for settled status, and about how bureaucratic it will be. That is why the Home Office is working to make the process as light touch and streamlined as possible, so that people can be reassured that this will not be a difficult process.

[Mr Paul J. Sweeney (Glasgow North East) (Lab/Co-op)]

The Prime Minister has stated her intention to create a new partnership with the European Union after Brexit that is built on shared fundamental values such as democracy, the rule of law, free trade, rigorous and fair competition, strong consumer rights and high regulatory standards, but does she agree that the hard-won and hard-fought-for workers’ rights that we have built within the European Union are also critical to those shared fundamental values and that we should uphold those rights after Brexit?

[The Prime Minister]

I have been clear that this Government want not only to maintain workers’ rights but to enhance workers’ rights. I am very surprised that the hon. Gentleman should ask that question, given that the Labour party voted against the very European Union (Withdrawal) Bill that will bring workers’ rights under EU law into UK law.

[Robert Jenrick (Newark) (Con)]

One of the first things I learned about contract law at law school is that an agreement cannot be agreed that creates an obligation to enter a future agreement when its terms are not known at the time the first agreement is signed. Does my right hon. Friend the Prime Minister agree that it is legally ridiculous and a terrible negotiating position to try to amend the European Union (Withdrawal) Bill to make no deal a legal impossibility and to force us to have an implementation agreement on a deal whose contents we do not know?

[The Prime Minister]

I bow to my hon. Friend’s legal knowledge on this issue, but I think he is absolutely right. As my right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith) indicated, the issue of an implementation period is about practical arrangements to reach the future partnership, and you do not know what those practical arrangements are until you know what that future partnership is.

[Matt Western (Warwick and Leamington) (Lab)]

Last week, two significant announcements were made. First, we heard from Peugeot Citroën that it preferred to reduce the number of jobs here in the UK and maintain its investment and job levels in mainland Europe. We also heard from Lloyd Blankfein, who announced that he, like many other business leaders, would be spending more time in Europe. Do those two announcements concern the Prime Minister?

[The Prime Minister]

We are of course working with business to ensure that we can get the right arrangement for our future trade relationship and for the implementation period, to give business the certainty it has asked for. But I am optimistic, not just about that trade relationship, but about the other trade agreements we can negotiate around the world. I am also optimistic about the opportunities for the economy and for firms here in the United Kingdom, not least because of the modern industrial strategy that this Government are putting in place.

[Matt Warman (Boston and Skegness) (Con)]

There is a lot of talk of deals and no deals. Is it not a crucial distinction that the Prime Minister has shown total commitment to a deal on Northern Ireland, on citizens’ rights, on security and on a host of other issues, but where she is rightly sceptical is on whether a punishment deal is better than no deal on trade?

[The Prime Minister]

My hon. Friend is absolutely right, and this is where the Labour party gets it absolutely wrong; it thinks it should be signing up to any deal, across the whole board, regardless of the price and regardless of the conditions applied by the European Union.

[Patrick Grady (Glasgow North) (SNP)]

Was the Prime Minister able to share any of the perspectives of the devolved Administrations with the other Governments at the summit, particularly the concerns around the European Union (Withdrawal) Bill? Given that the Secretary of State for Scotland has promised a powers “bonanza” for Holyrood, I wonder whether she could name today just one power that will definitely be devolved to Holyrood after Brexit.

[The Prime Minister]

Don’t worry, we will be making it clear where we expect further devolution to take place. The hon. Gentleman asks whether I discussed the European Union (Withdrawal) Bill with the European Council, and I have to say that that Bill is a matter for this Parliament and it is this Parliament that will decide on it.

[Charlie Elphicke (Dover) (Con)]

I congratulate my right hon. Friend on her excellent statement. Does she agree that money invested in contingency planning and being ready on day one is money well invested, as an insurance policy, in giving us a stronger hand in the negotiations and as no-regrets investment in our world-class customs systems, our world-class border system and resilient roads that do not need to have the kind of gridlock that the Labour party hopes for?

[The Prime Minister]

I absolutely agree with my hon. Friend, and in fact some of the work being done on contingency arrangements will apply regardless of the nature of the outcome, whether there is a deal or not a deal.

[Andrew Bridgen (North West Leicestershire) (Con)]

I was disappointed with the European Council, as on this occasion it did not find the time to discuss the ongoing appalling situation in Venezuela. Does my right hon. Friend believe that this was to spare the blushes of the Leader of the Opposition, who, apparently, was in town working with the EU to undermine the UK’s negotiating position?

[The Prime Minister]

That may well indeed have been the case. I know the Leader of the Opposition was in town at the time, and of course what he was doing was basically saying to the European Union that he would be willing to take any deal, at any price. That is not the position of this Government.

[Stewart Malcolm McDonald (Glasgow South) (SNP)]

I am starting to think it is the Christmas cards I am sending, Mr Speaker. You know how to give me a complex. Having relegated EU nationals to spectator status in this entire debate—

[The Prime Minister]

indicated dissent.

[Stewart Malcolm McDonald]

The Prime Minister shakes her head but she voted to exclude them from the referendum. Does she not think it is at best a tad gauche, if not outright rude, to charge them 70-odd quid in order to settle a status that they had no hand in establishing in the first place?

[The Prime Minister]

As part of the negotiations, we will be ensuring that we get those guarantees for EU citizens here in the UK and putting into place here in the UK the arrangements necessary to ensure that they are able to get that settled status, because we value the contribution they have made here in the UK.

[Steve Double (St Austell and Newquay) (Con)]

Does the Prime Minister share my view that one factor that may well have contributed to the progress recently made was the fact that the EU has come to understand that the UK is not afraid of a no-deal outcome? Does this show why, in order to continue progress and focus minds, no deal has to stay on the table?

[The Prime Minister]

My hon. Friend is right. We are of course working to get a deal and to get the best deal for the United Kingdom, but we have to be very clear that we are prepared to say that no deal is an option if we are not able to get that good deal for the UK.

[Nigel Huddleston (Mid Worcestershire) (Con)]

Thank you for calling me Mr Speaker—you have saved me a trip to the gym today.

Does the Prime Minister agree that in order to better represent the interests of EU citizens, the EU negotiators could benefit from a remedial course in economics so that they understand the difference between a £70 billion surplus and a £70 billion deficit? They seem to be getting it the wrong way around at the moment.

[The Prime Minister]

My hon. Friend makes an important point that just emphasises how the deal we are working towards is going to be to the benefit of the EU as well as the UK.

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

I warmly welcome the Prime Minister’s statement. In contrast to Scottish National party Members, I also warmly welcome her comments on and commitment to EU citizens, her commitment to putting people first and her open letter last week. I urge her to continue that work, because this issue is important not only to EU citizens but to UK citizens who live and work in the EU.

[The Prime Minister]

My hon. Friend is absolutely right. I was clear from the start that we needed to make that one of the early agreements we came to. It was part of the first stage of the negotiations and, as I say, we are within touching distance of a deal. It is important not just to EU citizens here but to UK citizens who have made their home elsewhere in the European Union.

Oral Answers to Questions

Baroness May of Maidenhead Excerpts

Wednesday 18th October 2017 Commons Chamber

[Ms Esther McVey (Tatton) (Con)]

Q1. If she will list her official engagements for Wednesday 18 October.

[The Prime Minister (Mrs Theresa May)]

I am sure that Members throughout the whole House will wish to join me in marking Anti-Slavery Day. Slavery is an abhorrent crime and I am determined to bring it to an end.

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

--- Later in debate ---

[Mr Speaker]

Order. We have 32 questions to get through and I want to hear the Prime Minister’s answer. I ask colleagues to contain themselves.

[The Prime Minister]

My right hon. Friend referred to the voice of the north being heard, and it has indeed been heard by the Conservatives in government. It is a Conservative Government who committed—and remain committed—to the northern powerhouse, and it is a Conservative Government who are putting investment into skills and transport infrastructure for the northern powerhouse. We are backing business growth across the north, as I saw when I visited the north-west last week. We are putting £60 million into Transport for the North for looking at northern powerhouse rail; that is part of £13 billion of infrastructure investment. It is the Conservatives in government who recognise the importance of a country that works for everyone and of growth across the whole country.

[Jeremy Corbyn (Islington North) (Lab)]

I join the Prime Minister in recognising Anti-Slavery Day. The slave trade was one of the most grotesque times in the history of this planet and we must all be resolved to drive out slavery in any form whatsoever. I hope that the Prime Minister will join me in expressing sympathy to, and solidarity and support for, the people of Somalia following the horrific terrorist atrocity in Mogadishu last weekend.

I welcome today’s fall in unemployment—[Interruption]—but the same figures show that real wages are lower today than they were 10 years ago. Most people in work are worse off. Does the Prime Minister really believe that falling wages are a sign of a strong economy?

[The Prime Minister]

I join the right hon. Gentleman in expressing our concern about the terrible terrorist attack that took place in Mogadishu, killing nearly 300 people and injuring many hundreds. Terrorism in Somalia undermines the stability of the horn of Africa. We will continue to work with the international community to try to bring stability to Somalia and that part of Africa. Of course, an aspect of that involves dealing with the terrorist threat that people face there.

The right hon. Gentleman might have done a first in the House of Commons today, because I think this is the first time—certainly since I became Prime Minister—that he has actually welcomed a fall in unemployment. It is good news that more people are in work and that unemployment is at its lowest rate for more than 40 years. That means that people are taking more money in wages to their families.

The right hon. Gentleman asks about the cost of living. I will tell him what we have done in relation to that. Some 30 million people have been given a tax cut that is worth £1,000 to a basic rate taxpayer every year. We have given the low-paid the highest pay increase for 20 years through the national living wage. For those who take the full entitlement, the doubling of free childcare is worth £5,000 per child per year to every family. That is what we are doing to help people with the cost of living.

[Jeremy Corbyn]

I wonder whether the Prime Minister could do a first—answer a question. The question I asked her was about falling wages. Christine, a worker in a village shop, wrote to me this week to say:

“I am worse off. I cannot afford to keep my car, which I struggled to buy, on the road. I need my car to attend appointments, job hunt for a better position, and take my son to activities. We don’t have a luxurious lifestyle and don’t want one. We just want to feel secure.”

When millions of workers are having to rely on the benefits system just to make ends meet, is not that a sign of not a strong economy, but a weak economy?

[The Prime Minister]

I have recognised since I came into this role that there are people in this country, like Christine, who are finding life difficult. That is why it is so important that the Government take steps to help people with the cost of living—the costs they find themselves facing week in, week out. It is why the measures that I just listed to the right hon. Gentleman, including tax cuts and the national living wage, are important, and it is why it is important that we have frozen fuel duty. We have ensured that we take some of the lowest paid people out of paying income tax altogether. We are going to introduce an energy price cap—[Interruption.] Yes. It is all about helping people with the cost of living, but you can only do that if you have a strong economy, and you only get a strong economy with a Conservative Government.

[Jeremy Corbyn]

People struggling to make ends meet; private sector rental evictions up; wages down; universal credit in a shambles. Is Christine wrong or is she just an example of what it is like to live in modern Britain?

Last week, I asked the Prime Minister to scrap the unfair charges on the universal credit helpline. Today she has finally bowed to that pressure, but the fundamental problems of universal credit remain: the six-week wait, rising indebtedness, rent arrears and evictions. Will the Prime Minister now pause universal credit and fix the problems before pressing ahead with the roll-out?

[The Prime Minister]

Yes, it is absolutely right—[Hon. Members: “Hooray!]

[Dawn Butler (Brent Central) (Lab)]

Sit down now!

[The Prime Minister]

I suggest that Opposition Members listen to the whole sentence.

Yes, it is absolutely right that we have announced this morning that we will change the telephone charge. I said last week that we were listening to a number of proposals that have been made—we have done that. It is right to do this now because there is a lot of emphasis and a lot of publicity about universal credit at the moment, and I want people to know that they can ring in and get advice without being worried. That is exactly what we are going to do.

The right hon. Gentleman talks about universal credit and pausing it. Why have we introduced universal credit? It is a simpler system. It is a system that encourages people to get into the workplace. It is a system that is working, because more people are getting into work. Pausing universal credit will not help those people who would be helped by moving to universal credit, getting into the workplace and bringing home more pay for their families.

[Jeremy Corbyn]

There is a very long list of people urging the Prime Minister to pause universal credit, including Citizens Advice, the Trussell Trust, John Major and, I understand, two dozen of her own Back Benchers, who have a chance this afternoon to vote to pause universal credit and show that they are representing their constituents.

The public sector pay cap is causing real suffering and real staff shortages. Last week, the Health Secretary announced that the NHS pay cap was scrapped, but when asked if the NHS was going to get extra money to fund any agreed pay rise, he replied:

“That is something I cannot answer right now”.—[Official Report, 10 October 2017; Vol. 629, c. 163.]

Well, this is right now, and the Prime Minister is here right now. How about an answer right now?

[The Prime Minister]

As I have explained to the right hon. Gentleman and the House in the past, the way in which we approach the whole question of public sector pay is through the work of the pay review bodies. They have all reported for the current year, and they did their work against the remit set by the Government of a blanket cap of 1% on public sector pay. For the 2018-19 year, we have changed that remit to ensure that there is flexibility in the system for that period.

Perhaps I could just explain something else to the right hon. Gentleman, because I fear that for all his years in Parliament there is one thing that he has failed to recognise—Government has no money of its own. Government gets money—[Interruption.]

[Mr Speaker]

Order. Mr MacNeil, you are becoming over-excitable again, young man. Calm yourself. There is no need for excessive gesticulation; it serves no useful purpose whatsoever. Let us hear the Prime Minister’s reply. The Prime Minister will be heard, however long it takes.

[The Prime Minister]

Government has no money of its own. It collects money in taxes from businesses and people to spend on the NHS and on the services that people need. If businesses are not being set up, if businesses are not growing, and if people are not in work, Government does not have the money to spend on NHS pay, on schools, and on hospitals. Of course, the only way we ensure that those businesses are growing, and the only way we ensure that people are in jobs and that Government has the money to spend on schools and hospitals and NHS pay, is with a Conservative Government.

[Jeremy Corbyn]

The Prime Minister seemed to have no problem finding £1 billion in a couple of days for the DUP. She needs to make it clear to the NHS workers what pay rise is being offered, when they will receive it, and what funding is being provided—and what cuts she is proposing to make elsewhere in order to deal with that.

Young people are in record levels of debt. This week, the Financial Conduct Authority warned of

“a pronounced build-up of indebtedness amongst the younger age group”

to fund “essential living costs”. Is not this yet another sign not of a “strong economy” but of a weak economy?

[The Prime Minister]

I have to say to the right hon. Gentleman that we have heard from the OECD that the deficit that the Labour Government left us was unsustainable. Since then, we have indeed found money for the people of Northern Ireland. We have also found, as I explained earlier, £20 billion to give a tax cut to 30 million people and £38 billion to freeze fuel duty. That is about helping ordinary working people, day in and day out. When it comes to students and young people and their fear about debt, there is one thing we know, and that is that we should not be racking up debts today, like Labour proposes, that those young people would have to pay off tomorrow.

[Jeremy Corbyn]

It is very interesting that the Prime Minister talks about what happened 10 years ago. Her former friend George Osborne said earlier this week:

“did Gordon Brown cause the sub-prime crisis in America? No.”

He went on to say that “broadly speaking” the Government

“did what was necessary in a very difficult situation”.

Under this Prime Minister, we have a weak economy. UK growth is currently the worst among the 10 largest EU economies. We are the only major economy where wages are lower today than they were 10 years ago. Even without the risks posed by this Government’s bungled Brexit negotiations—it is very interesting to see that the Home Secretary is necessary to keep the two protagonists apart—we now have weak growth, falling productivity, falling investment, and falling wages. How does the Prime Minister have the nerve to come here and talk about a “strong economy” when the figures show the exact opposite?

[The Prime Minister]

I have to say to the right hon. Gentleman that the OECD says about the United Kingdom that we have the most efficient, accessible healthcare system, that fiscal sustainability has improved, that important steps have been taken to improve educational outcomes, and that jobs and earnings are good. That is what the OECD says about the strong economy under this Conservative Government. The way to get a weak economy is to borrow £500 billion like the Labour party is proposing. The way to get a weak economy is to ensure that you are promising spending after spending after spending and people are going to have to pay for that. The only way we get money to put into public services, and the only way we can give people tax cuts to help them with the cost of living, is to ensure that we deal with the deficit, get our debts down, and deal with Labour’s great recession which put us into this position in the first place.

[Luke Hall (Thornbury and Yate) (Con)]

Q5. Following the rather flaccid response from the Leader of the Opposition, may I welcome the announcement that the Government are scrapping the universal credit helpline charges—a move that demonstrates that the Government are supporting people who want to get up, work hard and get on in life? Can the Prime Minister now confirm that all welfare claim DWP helplines will be completely free to all claimants?

[The Prime Minister]

I am very happy to confirm that, and it is useful to be able to do so. My right hon. Friend the Work and Pensions Secretary announced this morning that we have taken the decision to change the universal credit helpline to a freephone number. I can also tell my hon. Friend that by the end of the year, DWP will extend freephone numbers to all its phone lines. I think that that will be welcomed and will be helpful to all who use them.

[Ian Blackford (Ross, Skye and Lochaber) (SNP)]

Will the Prime Minister do today what her Brexit Secretary was unable to do in this Chamber yesterday and rule out a no deal scenario on leaving the EU?

[The Prime Minister]

I can confirm that what we are doing is working for the best possible deal for the United Kingdom, but it would be irresponsible of Government not to prepare for all possible scenarios, and that is exactly what we are doing.

[Ian Blackford]

May I point out to the Prime Minister what her Home Secretary said yesterday—that a no deal scenario is “unthinkable”? I agree with the Home Secretary. Brexit has contributed to a fall in the pound and a subsequent rise in inflation, squeezing household budgets. Folk are getting poorer in Britain today. It has been reported that Government analysis shows that Scotland and the north-east of England would lose out from breakfast—I mean Brexit—but the Government responded to an FOI by saying that such analysis—[Interruption.] Well, there is hilarity on the Government Benches—

--- Later in debate ---

[Ian Blackford]

What is the Government’s analysis of the impact of Brexit on a no deal scenario?

[The Prime Minister]

Once again, the right hon. Gentleman stands up and talks about the Scottish economy and makes reference to issues such as jobs in Scotland. I am sorry that in his rather lengthy question he did not make any reference to the fact that since 2010, nearly a quarter of a million more people in Scotland are in work. That is the result of the actions of this Government.

[Mr Speaker]

Now we are going to hear Back Benchers. Back Benchers in this place must be heard.

[Martin Vickers (Cleethorpes) (Con)]

Q10. As the Prime Minister pointed out in answer to the first question, the northern powerhouse initiative has done a great deal to help the economies of northern areas. But our coastal communities are desperately in need of further investment and support. In north-east Lincolnshire we have established a private sector-led project board that benefits from the expertise of its members, who include a former Chancellor and a former head of the civil service. Could the Prime Minister give her support to the initiative for a town deal for north-east Lincolnshire, which might provide a model for other areas?

[The Prime Minister]

I am grateful to my hon. Friend for raising this, and I recognise and understand that ambitious regeneration plans are being developed by the Greater Grimsby project board. I welcome that because it is based on a very strong private-public sector approach and partnership that is being put forward, and I know my hon. Friend is himself playing an active role in that. I believe there have been some positive meetings with my right hon. Friend the Communities Secretary and my hon. Friend the Northern Powerhouse Minister, and I would encourage the board to continue engagement with officials about the details of their plans.

[Rachel Reeves (Leeds West) (Lab)]

Q2. At the general election, both main parties committed to an energy price cap and the Government have now published a Bill for which I believe there is strong cross-party support, so will the 14 million customers on standard variable tariffs actually see their energy prices come down this winter, and if not, when will the Prime Minister get on the statute book legislation to ensure that this is the last winter when customers can be ripped off by their energy company?

[The Prime Minister]

I welcome the fact that the hon. Lady says she and others on the Labour Benches will support the legislation that the Government have—[Interruption.] No, it was not. It is important that we take action to deal with energy prices: the draft legislation will see those rip-off prices being capped for millions of households—all standard tariff customers—and while this will initially run to 2020, we will be able to extend it on an annual basis until 2023, on the advice of Ofgem. I think we have sent an important message to the industry, which I would hope is actually going to make changes even before we get the legislation on the statute book.

[Fiona Bruce (Congleton) (Con)]

Does the Prime Minister share the great concerns that were expressed in this House yesterday, including by Ministers, about the implications for the one country, two systems principle in Hong Kong of the recent refusal of the authorities there to allow Ben Rogers, a UK national, entry? Will the Prime Minister confirm that the Government will work with the Hong Kong and Chinese authorities to ensure that the democratic freedoms in the one country, two systems principle are honoured and preserved?

[The Prime Minister]

My hon. Friend is absolutely right that we want to ensure that the principle of one country and two systems is preserved and continues to operate. On the specific case and the specific issue that she has raised, my right hon. Friend the Foreign Secretary informs me that the Foreign Office has raised this issue at various levels in relation to Hong Kong and China, and we will continue to do so.

[Margaret Greenwood (Wirral West) (Lab)]

Q3. I refer Members to my entry in the Register of Members’ Financial Interests. People in my constituency, many of whom work at Vauxhall’s Ellesmere Port plant, are devastated by the announcement of 400 job losses this week. PSA stated that clarity on the UK’s future trading relationship with the EU was needed before the company would be in a position to consider future investment at Vauxhall. Cabinet Ministers have plenty to say to each other about Brexit, but what have the Government got to say to the 400 workers at Vauxhall Ellesmere Port, who face losing their jobs in the run-up to Christmas?

[The Prime Minister]

Of course, we never want to see people in the position of losing their jobs, and if people do lose their jobs, support is available to them through the DWP to help them to get back into the labour market and to get back into work. We are in the process of a negotiation on Brexit. We will leave the European Union in March 2019, and we are negotiating for the best possible deal we can get for the United Kingdom. We have also indicated that we want an implementation period after that deal has been negotiated to ensure that businesses do not face a cliff edge but can have certainty about the rules under which they are going to operate in the future. If there is one thing that is certain it is that we will leave the EU in March 2019.

[Mr Richard Bacon (South Norfolk) (Con)]

Given that the Self-build and Custom Housebuilding Act 2015 is now on the statute book—it is a very good piece of legislation—will the Prime Minister confirm that the community home building fund, available last year for group housing projects, is still available, and does she agree that providing service plots of land at scale is a good way to fix our broken housing market?

[The Prime Minister]

My hon. Friend has raised an important point. I know that he has campaigned long and hard on the particular area of self-build and of course has a great deal of expertise in it. He is absolutely right: if we are going to fix our broken housing market, we do need to build more homes. That is why we have made bold proposals in our housing White Paper—to make more land available, to build homes faster and to give local authorities the tools they need. I had a roundtable with house builders and others earlier this week, looking at how we can ensure that we unlock the potential of our housing market. I am sure my right hon. Friend the Communities Secretary will be happy to discuss with him the very specific issues that he has raised.

[Ruth George (High Peak) (Lab)]

Q4. Prime Minister, you said that universal credit is working. I wonder what you would say to my constituent, Fred, who claimed universal credit for a short time more than two years ago and has been working ever since, but suddenly got a letter in August demanding that he repay £366. Despite spending hours on the phone line, Fred was not told why he was being charged, and more than £100 a month was taken out of his wages, meaning that he incurred bank charges. Will you take personal responsibility so that no more claimants suffer injustice and debt, as Fred has?

[Mr Speaker]

I will take no responsibility for those matters myself, and the hon. Lady will be advised on the protocol, but the Prime Minister may wish to respond.

[The Prime Minister]

As I have indicated, changes have been made to the phone line. I repeat to the hon. Lady that the evidence shows that on universal credit, more people are getting into the workplace than on jobseeker’s allowance. Universal credit is about helping people get into the workplace and ensuring that, as they earn more, they keep more of what they earn. That is exactly what universal credit does.

[David Tredinnick (Bosworth) (Con)]

Is my right hon. Friend aware of the wonderful work at Twycross zoo in my constituency, breeding endangered species? Is she also aware of the critical problem of the demise of African elephants, which are being slaughtered at the rate of 20,000 a year? What will she do about banning ivory sales in London?

[The Prime Minister]

My hon. Friend raises an important point, and I commend those in his constituency who are doing that valuable work. Earlier this month, we set out proposals for a ban on ivory sales that we believe will help bring an end to poaching elephants. That would put the UK front and centre of global efforts to end the trade in ivory. I am sure that Members across the House are concerned about that issue. Ivory should not be seen as a commodity for financial gain or a status symbol. I think our proposals will make a real difference.

[Laura Pidcock (North West Durham) (Lab)]

Q6. Universal credit is not just a benefit for jobseekers; it is for people in work to subsidise their low pay, for carers and those who cannot work. My constituents have endured the brunt of austerity for many years. Now the Department for Work and Pensions proposes to roll out the universal credit system in my constituency over Christmas—the toughest financial time for people. My question to the Prime Minister is this: is the roll-out a matter of gross incompetence or calculated cruelty?

[The Prime Minister]

The DWP has been rolling out universal credit. As it has done so, it has listened to the concerns that have been raised. I am pleased to say that we are seeing a much better performance from the DWP.

[Laura Pidcock]

indicated dissent.

[The Prime Minister]

It is no good the hon. Lady shaking her head. The figures show that the performance in getting payments to people on time has improved substantially—more people are getting advance payments. We want to ensure that all those who need advance payments can get them. The fundamental reason for moving to universal credit—a simpler, more straightforward system—[Interruption.] The hon. Lady may not want to listen, but there is a reason for universal credit. [Interruption.]

[Mr Speaker]

Order. Colleagues know that I am determined to get through the list to help Back Benchers, but when questions are asked, the answers must be heard. Today is exceptionally noisy, and we are not setting a very good example to our Dutch friends. I am sure that they do it much better. The questions, and the Prime Minister’s answers, will be heard.

[The Prime Minister]

Finally, I would simply say to the hon. Lady that the purpose of universal credit is to have a more straightforward, simpler system that helps people to keep more as they earn more and encourages more people into work. That is what it does.

[Victoria Prentis (Banbury) (Con)]

It is great to have the Prime Minister back in her usual fine voice. Will she join me in encouraging Members, who have demonstrated what good voices they have, to hold events in their constituencies for Singing for Syrians? The situation on the ground in Syria gets ever more desperate, and I am sorry to say that the Hands Up Foundation, which does great work, has an ever increasing list of prosthetic limbs that are needed.

[The Prime Minister]

I think we all recognise the desperate situation in Syria, which is why we continue to be proud of our country’s record of giving humanitarian aid to Syria and to refugees from Syria: £2.46 billion has been committed since 2012, our largest ever response to a humanitarian crisis. I am very happy to join my hon. Friend in encouraging Members of this House to support the Singing for Syrians initiative and various events throughout the country. This is another important initiative focused, as is our humanitarian aid, on helping those people who are in a desperate situation in Syria.

[Lilian Greenwood (Nottingham South) (Lab)]

Q7. Notts fire service tells us that sprinklers save lives. Nottingham City Council plans to retrofit sprinklers in all its high rise blocks, but the Government will not provide a penny to support it. After Grenfell, the Prime Minister promised:“We cannot and will not ask people to live in unsafe homes”—[Official Report, 22 June 2017; Vol. 626, c. 169.] How safe would she feel living on the 20th floor of Pine View or Southchurch Court in my constituency with one staircase and no sprinklers?

[The Prime Minister]

Since Grenfell, much has been said in this House about sprinklers. There are a number of aspects that have to be looked at in relation to the safety of tower blocks. It is not the case that sprinklers are the only issue that needs to be looked at or addressed; nor is it the only solution to ensuring their safety. On expenditure by the hon. Lady’s local council, it is of course up to the council to make decisions about what it wishes to do. We have been very clear that discussions have taken place with the Department for Communities and Local Government and local authorities.

[Robert Courts (Witney) (Con)]

The mental health of our servicemen, servicewomen and their families is rightly gaining the attention it deserves. Will the Prime Minister join me in welcoming the initiative between the Royal Foundation and the Ministry of Defence to ensure targeted support across the whole armed forces family?

[The Prime Minister]

I am very happy to welcome the initiative to which my hon. Friend refers. We know we need to address mental health more carefully and with greater attention across the public in general, but mental health concerns for those in the armed forces and those who have left the armed forces are a very real challenge that we need to face, because they have put themselves on the line for us and we owe it to them.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

Q8. A major Southampton housing association tells me that 65% of its tenants who are on universal credit are now in rent arrears averaging £700, hampering the association’s ability to get on with building new houses. What message does the Prime Minister have for my local housing association? Is it just “Tough, get on with it”, or has she got something more positive to say?

[The Prime Minister]

We are indeed giving support to housing associations to build more homes. That is why, a couple of weeks ago, we announced that an extra £2 billion will be going to housing associations to enable them to do exactly that.

[Sir David Amess (Southend West) (Con)]

Does my right hon. Friend agree that with the death of Sir Teddy Taylor the country has lost an outstanding parliamentarian, a great constituency Member of Parliament and a true patriot? Does my right hon. Friend further agree that if Sir Teddy were alive today he would be delighted to learn that the outgoing Labour mayor of Southend, plus three unaligned councillors, have all joined the Conservative party?

[The Prime Minister]

I join my hon. Friend in recognising the great contribution Sir Teddy Taylor made in his time in this House as a Member of Parliament for different seats, including Southend, although I have to say to my hon. Friend that one of my abiding memories of Sir Teddy is the number of times we had to evacuate Portcullis House because he had set the fire alarm off by smoking where he was not supposed to—in his office. I am very pleased to welcome the former Labour mayor and the unaligned councillors who have now joined the Conservative party. We welcome them to the Conservative party and look forward to working with them.

[Julie Cooper (Burnley) (Lab)]

Q9. Government failure to fund schools adequately is hurting children in my constituency. Lancashire schools will lose £40 million of funding and 828 teachers by 2020. Will the Prime Minister explain how this will help raise standards and aspirations?

[The Prime Minister]

I will tell the hon. Lady what is helping with standards and aspirations: first, the record funding that the Government are putting into our schools, and secondly, our reforms to the education system which mean already that over 150,000 children are at good or outstanding schools in her area, which is an increase of nearly 40,000 since 2010. More children are in good or outstanding schools—that is what the Government are providing.

[James Cleverly (Braintree) (Con)]

Earlier this year, I opened a state-of-the-art manufacturing training facility at Braintree’s further education college. On Friday, I opened a new training centre for Contracts Support Services, a family-run business. Now that unemployment is at a record low and employment at a record high, will the Government commit to supporting both public and private sector trainers to increase productivity in the British economy?

[The Prime Minister]

My hon. Friend is absolutely right. Increasing productivity is a key aim of our Government—it is very important for the economy and the future—and investing in skills is a key part of that. I am pleased to hear that he has been so active in opening new facilities in his constituency. The changes we are making—our support for FE colleges, the new T-level, the emphasis we are putting on technical education and the £500 million we are putting into it—will all help to increase the skills levels of young people in this country.

[Joan Ryan (Enfield North) (Lab)]

Q11. Trust for London’s latest property profile shows that levels of homelessness in Enfield have risen by 82% in the last two years alone and that the eviction rate is the highest in the capital. What hope can the Prime Minister give to those of my constituents who are in work in the private rented sector that they can achieve their reasonable aspiration for themselves and their children to live in a safe, secure and affordable home?

[The Prime Minister]

I will tell the right hon. Lady what hope we are giving to people. It was precisely why I sat with house builders, housing associations and others in No. 10 Downing Street earlier this week—to encourage a faster rate of building houses and homes in this country so that more people can reach their aspiration of having a safe and secure home—and it is why we are putting £500 million over a period of years into dealing with homelessness. It is all very well, however, her standing up in the House and asking the Government what they are doing. We are putting more money into house building. She should ask the Labour Mayor of London what he is doing.

[Lucy Frazer (South East Cambridgeshire) (Con)]

Yesterday, the director general of MI5 said that internet companies had an ethical responsibility to deal with terrorist material online. The Prime Minister has previously indicated that if they do not meet this challenge she will consider regulation. Will she confirm that if regulations are necessary they will be robust and enforced?

[The Prime Minister]

I am very happy to give my hon. and learned Friend that confirmation, but there is work to be done before we get to that stage. My right hon. Friend the Home Secretary has done important work, for instance, with the tech companies, which have come together and formed a global forum looking at how to deal with terrorist material on the internet. It is a real issue that we need to address. I was pleased to hold an event on exactly this issue with President Macron and Prime Minister Gentiloni at the margins of the UN General Assembly this year attended by representatives of more than 70 countries and representatives of all the major tech companies. We need to work together, but I want those tech companies to recognise their social and moral responsibility to work with us to do something about this material.

[John Mc Nally (Falkirk) (SNP)]

Q12. Does the Prime Minister notice that I am wearing a red card in my pocket today? She will be aware that the hon. Member for Moray (Douglas Ross) is not in his place. Indeed, he is in Barcelona doing his other job—today of all days. What signal does she think this sends to hard-working members of the public who are expected to turn up for their day jobs or face sanctions?

--- Later in debate ---

[Mr Speaker]

I am grateful to the hon. Gentleman for that confirmation.

[The Prime Minister]

Let me say to the hon. Gentleman that I think the constituents of Moray will be very pleased that they have a Conservative Member of Parliament who is looking after their interests in the House. Let me also say to him that the Scottish Conservative Members are doing more for the interests of Scotland in this Parliament than the Scottish nationalists have ever done. [Interruption.]

[Mr Speaker]

Mr Spencer, what is the matter with you? My dear fellow! You eat home-produced food, you are a very respected farmer, and you are normally of a most taciturn disposition. I do not know what has come over you. Perhaps you should go and have a rest later. You must cheer up. Cheer up!

[Philip Davies (Shipley) (Con)]

Along with the Scottish National party, the Labour party has said that it will not accept no deal with the European Union in any circumstances. That means that Labour will pay whatever final bill the EU demands, and accept any conditions on which it insists. Does the Prime Minister agree that no one with even an ounce of common sense would enter into a negotiation making such an announcement in advance, and does she agree that the stance proposed by the Labour party and the SNP is not a negotiation, but a capitulation?

[The Prime Minister]

My hon. Friend has put it very well indeed. We cannot enter the negotiations taking the stance that the Labour party and the SNP have taken. As my hon. Friend says, their rejection of a “no deal” means that they would accept a deal at any price to the British taxpayer, whatever the damage it would do to our economy, and we will not do that.

[Sir David Crausby (Bolton North East) (Lab)]

Q13. We are seeing the loss of skilled jobs at British Aerospace in Lancashire and more at Vauxhall in Ellesmere Port, as well as redundancies at Austin in Preston and Monarch in Manchester. What has happened to the northern powerhouse? Has its battery gone flat? If so, will the Prime Minister recharge it, as she rightly did in Northern Ireland?

[The Prime Minister]

As I said earlier to my right hon. Friend the Member for Tatton (Ms McVey), the Government are committed to the northern powerhouse, and, indeed, are putting money into it to encourage economic growth, particularly through our investment in infrastructure. The hon. Gentleman raised a number of cases, and the issue of Vauxhall was raised by one of his hon. Friends earlier. We are continuing to work with Vauxhall throughout the process to do all that we can to protect United Kingdom jobs, as we have done with BAE Systems and as we are doing with others. What matters, however, is ensuring that we have an economy that can enable more jobs to be created, and 3 million more people are in work today than in 2010.

[Andrew Selous (South West Bedfordshire) (Con)]

Respectful and committed family relationships reduce poverty, improve wellbeing, and help the Government to live within their means. They are a key part of a country that works for everyone. Will the Prime Minister therefore implement the proposals of the recently published family manifesto?

[The Prime Minister]

My hon. Friend is absolutely right. We are, of course, looking into what more we can do to ensure that we see those stable families, which lead to the benefits that he has described. He has campaigned on this issue since he came to the House, and I welcome the valuable contributions that he has made.

[Mr Speaker]

Last but never forgotten: Mr Dennis Skinner.

[Mr Dennis Skinner (Bolsover) (Lab)]

Q14. Is the Prime Minister aware that INEOS, the fracking company, has been accused of creating a massive deterioration in the water supply, run by Severn Trent, on the Oxcroft estate in the Bolsover area? Will she, as Prime Minister, investigate this matter, and call on INEOS to halt the process while the investigation takes place?

[The Prime Minister]

I am sure that the issue will be properly looked into, but underlying it is the question of ensuring that we are able to have a secure and safe supply of energy in the future. That is why the fracking is continuing, and that is why we are supportive of the Shell gas exploration. There are opportunities there for the United Kingdom. As I have said, however, I am sure that the specific issue raised by the hon. Gentleman will be looked into appropriately.

Oral Answers to Questions

Baroness May of Maidenhead Excerpts

Wednesday 11th October 2017 Commons Chamber

[Ian Mearns (Gateshead) (Lab)]

Q1. If she will list her official engagements for Wednesday 11 October.

[The Prime Minister (Mrs Theresa May)]

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

[Ian Mearns]

The Prime Minister will know that yesterday was World Mental Health Day. Mental health problems affect one in four people, but only £1 out of every £8 in clinical commissioning group budgets is spent on mental health services. Newcastle Gateshead CCG is set to cut its budget by a further 1.1% next year, bringing the total spend for mental health to less than 10% of its entire budget. If parity of esteem for mental health is to be achieved, the Government will have to match their words with more strong and stable, ring-fenced funding. With those cuts and with increasing demand, when will the Prime Minister end the talking and promise to increase and ring fence funding for mental health and specialist psychological services?

[The Prime Minister]

The hon. Gentleman is right about the importance that we should attach to mental health. Giving that parity of esteem is an important step that this Government have taken, but we are also doing much more on mental health. In fact, more money overall is going into mental health. More people are able to access NHS talking therapies and receive treatment for their mental ill health, but we also need to look at the issue more widely. That is precisely why I have set up a scheme to train staff in schools to ensure better awareness of mental health problems and to enable them to know how to deal with individuals in schools who are suffering from mental health problems. There is more for us to do, but this Government are putting more money in and are taking more action on mental health than any previous Government.

[Robert Neill (Bromley and Chislehurst) (Con)]

Q2. The Prime Minister will know that financial and professional services are the UK’s largest source of tax revenue and our largest driver of trade surpluses. Yesterday I met representatives of that sector, who wanted me to pass on to the Prime Minister their warm support for the pragmatic, sensible arrangement that she has made to ensure the critical legal and contractual continuity that the sector needs as we leave the European Union. As well as recognising that, will she perhaps build on that positive approach by considering issuing a White Paper on our future vision for trade in services, as we have done for other sectors?

[The Prime Minister]

My hon. Friend raises an important point. He is right that we need to build a bridge from our existing partnership to our future partnership to allow time for practical adjustments to be made. That is exactly what we are doing when we talk about the implementation period, which I set out in my speech in Florence, together with our vision for our future partnership. I am sure that my hon. Friend will know that we published a White Paper on our future trade policy earlier this week, and we will continue to publish papers in the coming months.

[Jeremy Corbyn (Islington North) (Lab)]

I hope that the whole House will join me in paying tribute to the late Rodney Bickerstaffe, the former general secretary of Unison who died last week. He will be remembered for his warmth and the esteem in which he was held throughout the Labour movement and throughout the community. More than that, he, almost more than anyone else, made sure that the national minimum wage happened in this country. Millions of workers are better off due to the great work that Rodney did during his life. Can we say, “Thank you, Rodney, for everything you did in your life”?

The roll-out of universal credit is already causing debt, poverty and homelessness. Does the Prime Minister accept that it would be irresponsible to press on regardless?

[The Prime Minister]

Of course we offer our condolences to Rodney Bickerstaffe’s friends and family on his death. He and I would probably never have agreed on very much in politics, but obviously he played his role with commitment and dedication through his life.

The right hon. Gentleman asks about universal credit. It is perhaps worth our recognising why we brought in universal credit in the first place. What we want is a welfare system that provides a safety net for those who need it, and that helps people to get into the workplace, earn more and provide for their families. The system that we inherited from Labour did not do that. It was far too complicated, there were far too many different sorts of payment and, crucially, too many of those who earned more found themselves with less money in their pockets. Under Labour, too many people were better off on benefits. That is not the system that we want. We want universal credit, which is simpler and more straightforward, and makes sure that work always pays.

[Jeremy Corbyn]

I wonder which planet the Prime Minister is on. Citizens Advice describes universal credit as

“a disaster waiting to happen”.

It has made that conclusion based on its work assisting tens of thousands of claimants with debt. Housing associations report an increase of up to 50% in the eviction of tenants in rent arrears due to universal credit. Can the Prime Minister and Department for Work and Pensions not wake up to reality and halt this process?

[The Prime Minister]

As I have explained, we have very good reasons for changing the system. Yes, the DWP has been—[Interruption.] We have been listening to concerns raised about the way in which universal credit has operated. Changes have been made; performance has improved, for example. At the beginning of this year, only 55% of people were getting their first payment on time. Now that is more than 80%. Of course there is more for us to do, and that is why the Secretary of State and the Department for Work and Pensions continue to monitor this and to ensure that performance improves. Underlying this is a need to ensure that we have a system that ensures that work pays and that people are not better off on benefits.

[Jeremy Corbyn]

The Halton Housing Trust reports a 100% year-on-year increase in the number of evictions. Half of all council tenants on universal credit are at least a month in arrears in their rent. This weekend, the former Prime Minister, Sir John Major, described universal credit as

“operationally messy, socially unfair and unforgiving.”

He is right, isn’t he? It is years behind schedule. It is forcing people to food banks, driving up evictions and leaving families in debt. Can the Prime Minister not see it? If the former Prime Minister can understand it, why can’t this one?

[The Prime Minister]

In fact, research shows that after four months the number of people on universal credit in rent arrears had fallen by a third. As I said in my previous answer to the right hon. Gentleman, of course we recognise that there have been some issues to address in the rolling out of this benefit, and that is why we have been taking our time doing it. The underlying reason for moving to universal credit is still the right one. We see more people getting into work on universal credit than on jobseeker’s allowance, and there is the possibility for those people who cannot wait for their first payment to ask for an advance if they are in need, and the number of people getting an advance has increased.

[Jeremy Corbyn]

At last the Prime Minister recognises that there are problems. The Institute for Public Policy Research and the Child Poverty Action Group estimate that universal credit is going to put another 200,000 children into poverty. Last month, apparently, a dozen Conservative MPs wrote to the Work and Pensions Secretary calling for a pause. Perhaps they should have listened to people like Georgina, who contacted me this week. She says:

“All summer we were left with no money to survive as it just stopped abruptly. We would have lost everything if it weren’t for my family.”

Others cannot rely on family and are facing eviction. I urge the Prime Minister: show some leadership, pause universal credit, and stop driving up poverty, debt and homelessness, because that is what this does.

[The Prime Minister]

First, may I say to the right hon. Gentleman that I would be happy to look at the case of Georgina if he would like to send me those details?

As I have just said—once again, I referred to this in my previous answer, had the right hon. Gentleman listened to it—it is possible for those who are in need to get advance payments. The number of those getting advance payments has increased from 35% to just over 50%—the majority. So we are seeing the system being improved and performance improving. But let us just think about the Labour party’s record on this whole issue of welfare. Under the Labour party, 1.4 million people spent most of the last decade trapped on out-of-work benefits. Under the Labour party, the number of households where no—[Interruption.]

[Mr Speaker]

Order. The Prime Minister’s response must be heard.

[The Prime Minister]

Under the Labour Government, the number of households in which no member had ever worked nearly doubled. The welfare bill went up by 60% in real terms, which cost every household an extra £3,000 a year. That is not the way to run a system; that is the way to have a system that is failing ordinary working people.

[Jeremy Corbyn]

The last Labour Government lifted a million children out of poverty. Gloucester City Homes has evicted one in eight of all of its tenants because of universal credit. The Prime Minister talks about helping the poorest, but the reality is a very, very different story. Not only are people being driven into poverty but, absurdly, the universal credit helpline costs claimants 55p per minute for the privilege of trying to get someone to help them claim what they believe they are entitled to. Will the Prime Minister today show some humanity, intervene and make at least the helpline free?

[The Prime Minister]

I have made it very clear that we continue to look at how we are dealing with this and ensuring that we get this system out in a way that is actually working for people. The performance is increasing, and it is working because more people are getting into work on universal credit than were doing so on jobseeker’s allowance. [Interruption.] I do want people to be able to find work. I want people to be able to get better jobs, to earn more and to get on without Government support. That is why it is so important that we help businesses to create jobs. Perhaps when the right hon. Gentleman stands up he would like to welcome the fact that 3 million more jobs have been created due to a strong economy under a Conservative Government.

[Jeremy Corbyn]

Sadly, universal credit is only one of a string of failures of this Government. Everywhere we look we see a Government in chaos. On the most important issues facing this country it is a shambles: Brexit negotiations that have made no progress; Bombardier and other workers facing redundancy; most working people worse off; young people pushed into record levels of debt; 1 million elderly people not getting essential care; and our NHS at breaking point. This Government are more interested in fighting among themselves than in solving these problems. Is it not the case that if the Prime Minister cannot lead, she should leave?

[The Prime Minister]

Let me tell the right hon. Gentleman what the record of this Government is: the deficit is down by more than two thirds; 3 million more people are in jobs; 1.8 million more children are in good or outstanding schools; more people are visiting A&E; more people are getting operations than ever before; there are record levels of funding into the NHS; and there are record levels of funding into our schools. What did we see about the Labour party from its conference? [Interruption.] Wait for it.

[Mr Speaker]

Order. Members are becoming very overexcited. The Prime Minister’s response will be heard.

[The Prime Minister]

What did we hear from Labour’s conference? What happened at Labour’s conference? First, Shelter said that the Labour party’s housing policy would end up harming people on low incomes; Labour’s flagship Haringey Council rejected another of Labour’s policies; the Equality and Human Rights Commission said that Labour

“needs to…establish that it is not a racist party”;

and the Labour leader of Brighton Council threatened to ban Labour conferences because of freely expressed anti-Semitism. That was all before the shadow Chancellor admitted that a Labour Government would bring a run on the pound and ordinary working people would pay the price.

Hon. Members: “More!”

[Heidi Allen (South Cambridgeshire) (Con)]

Q3. I fear that that “more” was not for me. I am afraid I must return to the subject of universal credit, but perhaps the difference between Government Members and Opposition Members is that we believe in universal credit’s transformative properties and want it to work. And work it will, but we have to get it right. I thank the Secretary of State for Work and Pensions for promising on Monday to advertise more widely that advances are available to claimants, but many of us on the Government Benches feel that more people taking up those advances must surely mean that the in-built six-week wait just does not work. Will the Prime Minister please consider meeting me so that I can explain to her why, if we reduce that six-week wait, we will do a better job of supporting those just about managing families who are struggling to make ends meet and who have no savings to cover them over that period?

[The Prime Minister]

My hon. Friend makes the important point about the fundamental benefits of universal credit, but she is of course right, and that is why the DWP is continuing to look at the performance of universal credit and how it is operating. I am happy to meet her to look into the issue. She mentioned the advance payments; as she said, it is important that those who need those payments are aware of them, so it is about not only advertising but making sure that jobcentre staff are trained and are being retrained to ensure that they are aware of what they can do to help people. The advance payments can be with people within five days or, in an emergency, on the very same day. I am happy to meet my hon. Friend to discuss them.

[Ian Blackford (Ross, Skye and Lochaber) (SNP)]

If there was another European Union referendum now, I know that I would vote to remain. Why has the Prime Minister not been straightforward about how she would vote?

[The Prime Minister]

There is no second referendum. The people of the United Kingdom voted and we will be leaving the European Union in March 2019.

[Ian Blackford]

The Prime Minister cannot answer a simple question. [Interruption.] I am quite happy to wait. The reason why the Prime Minister cannot answer a simple question is that she is hamstrung by the parliamentary majority and a divided party of right-wing Brexiteers. This morning—[Interruption.]

[Ian Blackford]

This morning, Chancellor Philip Hammond admitted that a cloud of uncertainty hangs over the UK economy. The Scottish National party is the only party in this House that is united on the issue. We know that crashing out of the single market and the customs union will cost 80,000 jobs in Scotland and £2,000 per person. Now is the time for leadership. Will the Prime Minister come off the fence and recognise that, if we are to save this economy, we need to stay in the single market and the customs union?

[The Prime Minister]

Now is the time for the SNP leadership to accept that, to save jobs in Scotland, it needs Scotland to remain part of the United Kingdom.

[Mark Menzies (Fylde) (Con)]

Q7. Following yesterday’s announcement of almost 2,000 job losses at BAE Systems, many hundreds of which are in Warton in my constituency where very dedicated and highly skilled people work, can the Prime Minister assure me that she and her Government will continue to do everything they can to support export orders to Saudi Arabia and Qatar as well as supporting those dedicated workers in finding alternative employment and the wider Lancashire economy?

[The Prime Minister]

My hon. Friend is absolutely right: this is obviously a very worrying time for workers at BAE Systems, including those at Warton in his constituency. He raises two issues. I can reassure him that the Department for Work and Pensions will ensure that people have all the support they need to look for new jobs. That will include the rapid response service, which will help with CVs, training and information about benefits. We will also continue to promote our world-leading defence industry right across the globe, so that companies like BAE Systems can secure contracts for UK-made equipment. Just last month, my right hon. Friend the Defence Secretary signed a statement of intent with Qatar, committing the country to the purchase of 24 Typhoons and six Hawks from BAE. We will continue to promote these first-class products from first-class manufacturers such as those in my hon. Friend’s constituency. We will also ensure that support is given to those who lose their jobs.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

Q4. Prime Minister, last week you announced that you would fund 25,000 extra socially rented homes over five years. The waiting list in Brighton is already that. Along with Brighton, my other local authority, Lewes District Council, is wanting to build more council houses, but your policies will not help them, because they are limited not by the open market, but by the Government’s arbitrary cap on borrowing and financing against housing stock. Will the Prime Minister agree with me, the Conservative-led Lewes District Council and the Labour-led Brighton that the cap on the housing revenue account must be lifted to get councils building for Britain again?

[Mr Speaker]

I just point out to the hon. Gentleman that I have made no announcement and have no policy on this matter.

[The Prime Minister]

The hon. Gentleman is referring to our announcement that we are putting £2 billion extra into our successful affordable housing programme, bringing the amount dedicated entirely to creating affordable homes to more than £9 billion. For every pound the Government put in, housing associations raise a further £6, which means that thousands more families get the homes that they need and can afford every single year over the next five years. This is a good announcement from the Government. It means that more people will get the homes that they need. I would have expected him to welcome it.

[David T. C. Davies (Monmouth) (Con)]

Q13. In my constituency of Monmouth, children as young as 12 have been labelled as transgender and prescribed potentially life-altering sex change drugs. Does the Prime Minister agree that the law needs to be tightened to prevent this potential mistreatment of vulnerable young people?

[The Prime Minister]

My hon. Friend raises a very sensitive issue. As he will be aware, health is a devolved matter in Wales. The NHS in England has strict guidelines regarding the prescriptions of these sorts of medications to young people. They can be prescribed only with the agreement of a specialist team after a careful assessment of the individual, and generally only to patients who are 15 or older. I recognise the concern raised by my hon. Friend.

[Ms Karen Buck (Westminster North) (Lab)]

Q5. In her radio interview yesterday, the Prime Minister was pressed three times on the position of EU nationals in the UK in the event of no deal. She was unable to answer, suggesting that this was a “technical” issue. But people do not live technical lives. Their lives involve relationships, jobs and their children’s schools. With the clock ticking and the possibility of a no-deal Brexit looming nearer, will she reassure my 10,000 plus constituents who are EU residents exactly what their rights will be if there is no deal?

[The Prime Minister]

First, let me re-emphasise—I have said this before in this House—that we value the contribution that EU citizens have made in this country and we want them to stay. That is why we made citizens’ rights one of the key issues, and one of the early issues that is being discussed in the negotiations that are currently taking place. We are working to ensure that we get a good deal. If there is no deal, we will obviously have to have arrangements with other member states regarding not just EU citizens here, but UK citizens in those member states. But we are working for the best deal for the United Kingdom. We are very close to agreement on citizens’ rights. We want EU citizens to stay here in the UK because we value the contribution they are making.

[Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)]

On Monday, my right hon. Friend was clear about her negotiations, saying that it remains the Government’s priority to get a very good free trade arrangement with our European friends and partners before we leave. She also made it clear that, alongside that, we would make plans and all necessary arrangements to depart under World Trade Organisation terms should no such agreement be available. Will she confirm, then, that all moneys necessary will be allocated to this project as and when required?

[The Prime Minister]

I am happy to give my right hon. Friend that confirmation. We are preparing for every eventuality. We are committing money to prepare for Brexit, including a no-deal scenario. It might be helpful if I update the House. The Treasury has committed over £250 million of new money to Departments such as the Department for Environment, Food and Rural Affairs, the Home Office, Her Majesty’s Revenue and Customs and the Department for Transport in this financial year for Brexit preparations. In some cases, Departments will need to spend money before the relevant legislation has gone through the House. The Treasury will write to Departments and to the Public Accounts Committee explaining this process shortly. Where money needs to be spent, it will be spent.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

Q6. My constituent, Mr Geoffrey Ellwell, was transitioned from disability living allowance to personal independence payment in October 2016. He previously had the higher rate mobility and the standard rate for care. His PIP assessment gave him zero points. He appealed that decision in January 2017. Six months later, on 21 June, he passed away without his appeal being heard. The appeal that took place two days after his death posthumously awarded him the higher rate for both elements, backdated to January. What message would the Prime Minister like me to take back to Geoffrey’s partner, Carol, about the way in which this Government treated Geoffrey when he most needed help, compassion and support?

[The Prime Minister]

The message that I would like the hon. Gentleman to take back to his constituent’s partner is that we offer our condolences at the death of her partner. We are working to ensure that there is greater consistency in the judgments that are originally given on PIP assessments. We introduced PIP in order to ensure that we are able to focus payments on the most vulnerable. I completely understand how she feels about the position she is in. We offer her our deepest condolences.

[Maggie Throup (Erewash) (Con)]

HS2 Ltd continues to fail my constituents living along the line of route for HS2, with some being offered tens of thousands of pounds less than the true value of their homes. Will the Prime Minister now personally intervene to ensure that my residents living in the affected areas of Erewash do not lose out as a result of this major national infrastructure project?

[The Prime Minister]

My hon. Friend has raised an important point, and it is right that she is speaking up on behalf of her constituents. I know that the Department for Transport is looking carefully at these issues and that my hon. Friend the rail Minister is determined to see that fair and comprehensive compensation for those directly affected by the route is paid, and it will be paid as if HS2 did not exist, plus the 10% and reasonable moving costs. We are committed, as ever, to infrastructure investment—we are investing in infrastructure—but it is important with a major infrastructure change such as HS2 that we do ensure that those compensation payments for people are being paid properly. As I say, my hon. Friend the rail Minister is focusing on this issue.

[Heidi Alexander (Lewisham East) (Lab)]

Q8. This week, the public have witnessed the most extraordinary spectacle: the Prime Minister ramping up the no-deal rhetoric on Brexit and backtracking on her commitment to stay in the single market and customs union for transition, all because she is afraid of the most right-wing, rabid elements in her own party. When prices are going up in our shops, when the country’s credit rating has been cut and when businesses are actively considering moving jobs overseas, do the British people not deserve better than a Prime Minister simply running scared?

[The Prime Minister]

The hon. Lady could not be more wrong. First of all, we are not ramping up a no-deal scenario; we are actively working in negotiations with the European Union to ensure that we get a good deal—the right deal for Britain—for a brighter future for this country, which is what I believe we can and will achieve. It is what I set out in my Florence speech. I recommend the speech to the hon. Lady.

On the second point, I made very clear—perhaps I need just to explain it again to members of the Opposition—that when we leave the European Union in March 2019, we will cease to be full members of the single market and the customs union. That will happen because you cannot be full members of the single market and the customs union without accepting all four pillars—free movement; continued, in perpetuity, European Court of Justice jurisdiction. During the implementation period, we will be looking to get an agreement that we can operate on much the same basis as we operate at the moment—under the same rules and regulations—but that will not be the same as full membership of the customs union and the single market.

[Mr Gary Streeter (South West Devon) (Con)]

Does my right hon. Friend agree that the Royal Marines, supported by a specialist amphibious fleet, have served our country with great distinction for many, many years? Does she share my concern that one of the proposals currently being considered by the Royal Navy is to downsize the amphibious fleet? In an uncertain world, is this not both short-sighted and dangerous, and will she please intervene?

[The Prime Minister]

First, I absolutely agree that we can commend and applaud the contribution that the Royal Marines and our amphibious fleet have made to the defence of this country and, indeed, the defence of others. It is absolutely right that, as we look at how threats are changing, we look at how we should best spend the rising defence budget to support our national security. We have committed to spending 2% of GDP on defence every year of this Parliament. We are spending £178 billion between 2016 and 2026 on equipment for our armed forces. Naturally, we do not always discuss the specific operational details, but if I might just say to my hon. Friend, I understand that the claims he has referred to are pure speculation at this stage.

[Kerry McCarthy (Bristol East) (Lab)]

Q9. In the past 18 months, two students from St Brendan’s Sixth Form College in my constituency, Izzy Gentry and George Zographou, tragically died from meningitis B, and only this week we heard reports of the death from suspected meningitis of another Bristol pupil, from Orchard School. The free vaccinations for babies, introduced two years ago, are of course very welcome, but they came far too late to save Izzy and George, so will the Prime Minister do more to raise awareness of meningitis and extend free vaccinations to today’s teenagers, which is the group, after babies, that is most at risk?

[The Prime Minister]

First, of course we send our deep condolences to the families and friends of all those students in the hon. Lady’s constituency who have died as a result of contracting meningitis. The point she raises about raising awareness of meningitis is a very valuable one, and it is something that we do need to continue to do. Very often, when decisions are taken by the Government, such as on the vaccination that is already in place, it is very easy to think that that is a job done, but, actually, we need to continue to look at see how we can ensure that we do not see these deaths from meningitis in the future.

[Wendy Morton (Aldridge-Brownhills) (Con)]

I was shocked the other week to hear the shadow Chancellor predicting a run on the pound if Labour took office. For my constituents that would mean an increase in their household bills and in the cost of their weekly shopping. Does my right hon. Friend agree that the biggest risk to this country would be letting the shadow Chancellor into No. 11 Downing Street?

[The Prime Minister]

I absolutely agree; my hon. Friend is right that a run on the pound would mean higher prices and that it would make life much more difficult. It would mean job losses, businesses leaving the country and people being poorer. The one thing that we absolutely must do is ensure that the shadow Chancellor gets nowhere near the Treasury. The Leader of the Opposition asked me earlier what planet I was on. Well, we all know what planet he and his shadow Chancellor are on: Planet Venezuela.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

Q10. Is it the Prime Minister’s intention that the United Kingdom should remain part of the common fisheries policy during any transitional period after we leave the European Union?

[The Prime Minister]

When we leave the European Union, we will be leaving the common fisheries policy. As part of the agreement that we need to enter into for the implementation period, obviously that and other issues will be part of that agreement. But when we leave the European Union, we will leave the common fisheries policy.

[Mr Peter Bone (Wellingborough) (Con)]

It has been assumed that triggering article 50 means that on 29 March 2019 we will come out of the EU if there is no agreement, but is it not the case that the negotiations can be extended if the Government and the EU agree to do that? Will the Prime Minister assure the House that under no circumstances will the negotiations be extended?

[The Prime Minister]

My hon. Friend is accurate in his interpretation of the treaty, which does allow for an extension of negotiations. I have been very clear that by March 2019 we want not only for those negotiations to have ended but to have an agreement on the future relationship and on our withdrawal, and we will leave the EU in March 2019.

[Chris Elmore (Ogmore) (Lab)]

Q11. The Prime Minister will be aware that last month Jaguar Land Rover announced that it was ending its contract early, putting 640 jobs at risk. She has scrapped rail electrification and is flip-flopping on delivering the tidal lagoon, so will she now step up, work with the Welsh Government, Ford and the trade unions, help to save the jobs, and help to ensure a positive future for the south Wales economy?

[The Prime Minister]

Of course we want to work to see a positive future for the south Wales economy. That is what the United Kingdom Government are doing across the whole United Kingdom: working for that brighter and more positive future. With regard to the tidal lagoon, we will publish our response to the Hendry review in due course.

[Will Quince (Colchester) (Con)]

I recently visited the Rohingya refugee camps in Bangladesh, which was truly harrowing. It can only be described as a humanitarian disaster. I am immensely proud of the work that the United Kingdom Government are doing through UK aid, but what pressure can my right hon. Friend put on the Myanmar Government to end the persecution, so that the Rohingya people can go home?

[The Prime Minister]

My hon. Friend raises a very important point. We remain deeply concerned by what is happening to the Rohingya. We know that there are now over 500,000 refugees in Bangladesh. It is a major humanitarian crisis. We have been providing support through our international development and aid, and we have provided money to the Red Cross in Burma and bilateral donations to support the refugees who have crossed into Bangladesh. We have raised the matter three times at the UN Security Council. The international community has delivered a clear message that the Burmese authorities must stop the violence, allow the safe return of refugees and allow full humanitarian access. We have also suspended any practical defence engagement that we had with Burma because of our concerns.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

Q12. I make no apologies for the fact that my question is similar to that asked by my hon. Friend the Member for Bristol East (Kerry McCarthy). Layla-Rose Ermenekli, from Oldham, was just six years old when she contracted meningitis and later died in hospital. There were failings by the Royal Oldham Hospital, which did not spot important signs of meningitis, and those failings will be addressed. But, fundamentally, Layla would be alive today if she had received the MenB vaccination. Will the Prime Minister meet Layla’s parents, Ricky and Kirsty, and campaigners to discuss expanding the meningitis B vaccination programme to cover all children?

[The Prime Minister]

The hon. Gentleman again raises a very serious case, and our condolences go to the family of his constituent. This is an issue on which, as I have said, we need to raise awareness. He raises the question of the response by medical professionals. This is not just about individuals—about parents—recognising the symptoms, but about ensuring that healthcare professionals are identifying them. I will ask the Health Secretary to meet the hon. Gentleman and people who are anxious about this to hear directly from them their concerns regarding vaccinations.

[Antoinette Sandbach (Eddisbury) (Con)]

On Monday, at the start of Baby Loss Awareness Week, this Conservative Government launched 11 pilot projects for a national bereavement care pathway. This groundbreaking pathway will look at support for parents who have lost a child from conception to the age of one. May I ask the Prime Minister to congratulate the parents, the charities and the health professionals who have worked so hard to develop this project, and to make sure that it is rolled out more widely once the lessons from the pilots have been learned?

[The Prime Minister]

I am happy to join my hon. Friend in congratulating all who have worked so hard on this issue, which, sadly, brings such distress to too many people—including, I know, Members of this House. I am sure that everybody will want to join me in marking Baby Loss Awareness Week. There was a debate on the matter yesterday, and I pay tribute to Members from across the House who spoke very movingly about their own experiences.

I am happy to welcome, as my hon. Friend has done, the pilot of the national bereavement care pathway this week. The Department of Health is also providing funding to Sands, the stillbirth and neonatal death charity, to work with other baby loss charities and royal colleges to improve the quality of bereavement care in the NHS. We expect the pathway to be rolled out nationally in October 2018. As my hon. Friend says, it is important to conduct a pilot, so that we can learn from it as we come to the national roll-out.

[Vicky Foxcroft (Lewisham, Deptford) (Lab)]

Q14. A woman came to my office fleeing domestic violence. We rang round every women’s refuge in London, but we were unable to find her a place because of Government budget cuts. What advice would the Prime Minister give to my constituent?

[The Prime Minister]

I fully understand the hon. Lady’s concern about her constituent, who is fleeing domestic violence. We do not want anybody in this country to be subjected to domestic violence and abuse. That is why the Government have actually been putting more money into supporting refuges across the country. It is why we have ring-fenced money for domestic violence support across the country, and it is why we have introduced new legislation. But we are also going to look at what more we can do, through a domestic violence Act, to provide the support that is necessary to ensure that we deal with the perpetrators, support survivors and, as all of us across the House should want to do, end domestic violence.

[Mr Ranil Jayawardena (North East Hampshire) (Con)]

May I commend my right hon. Friend for her pledge to build hundreds of new free schools? Does she agree that they are critical to drive up standards and increase parental choice, and is it not true that we are committed to creating a school system that works for everyone, while the Opposition want to hold everyone back?

[The Prime Minister]

My hon. Friend is absolutely right. Free schools have performed a very important function in raising standards in education in this country, and I am pleased that we have so many more children now in good or outstanding schools. Free schools have done something else as well, as I see in my own constituency, where one of the free schools is specifically for children who are on the autistic spectrum. That is very important, and it is a service that was not available previously. Free schools have enabled that to happen. They are providing for people up and down the country, and we should welcome them.

[Hywel Williams (Arfon) (PC)]

Q15. Vascular services in my constituency are to be moved to an as yet untested centre, while in Bangor we already have a facility with an international reputation. Does the Prime Minister share my concern that, due to bungling over health by the Labour Government in Cardiff, seriously ill Welsh patients will have to travel further and even, like the late Irfon Williams, have to move to live in England just to access proper treatment?

[The Prime Minister]

The hon. Gentleman raises an important point. I am obviously not aware of the details of the particular services and of the transfer that he has referred to, but the overall point he makes is that people living in Wales are often seeing that they are getting a less good service from the Labour Government NHS in Wales—[Interruption.] Oh, yes. Yes, this is the case. As the hon. Gentleman says, there are people who will travel from Wales to England to get the service that is available in the NHS in England, and the Labour Government in Wales need to take a hard look at what they are doing to the NHS in Wales.

UK Plans for Leaving the EU

Baroness May of Maidenhead Excerpts

Monday 9th October 2017 Commons Chamber

[The Prime Minister (Mrs Theresa May)]

With permission, Mr Speaker, I would like to update the House on our plans for leaving the European Union. Today, the fifth round of negotiations begins in Brussels and this Government are getting on with the job of delivering the democratic will of the British people. As I set out in my speech in Florence, we want to take a creative and pragmatic approach to securing a new, deep and special partnership with the European Union which spans both a new economic relationship and a new security relationship. So let me set out what each of these relationships could look like, before turning to how we get there.

I have been clear that when we leave the European Union we will no longer be members of its single market or its customs union. The British people voted for control of their borders, their laws and their money, and that is what this Government are going to deliver. At the same time, we want to find a creative solution to a new economic relationship—[Interruption.]

[Mr Speaker]

Order. Members must calm themselves; a little hush, please. The hon. Member for Bermondsey and Old Southwark (Neil Coyle) has had something for breakfast which I counsel colleagues to avoid.

[The Prime Minister]

At the same time, we want to find a creative solution to a new economic relationship that can support prosperity for all our peoples. We do not want to settle for adopting a model enjoyed by other countries. So we have rejected the idea of something based on European economic area membership, for this would mean having to adopt—automatically and in their entirety—new EU rules over which, in future, we will have little influence and no vote. Neither are we seeking a Canadian-style free trade agreement, for compared with what exists today, this would represent such a restriction on our mutual market access that it would benefit none of our economies.

Instead, I am proposing a unique and ambitious economic partnership. It will reflect our unprecedented position of starting with the same rules and regulations. We will maintain our unequivocal commitment to free trade and high standards, and we will need a framework to manage where we continue to align and where we choose to differ. There will be areas of policy and regulation which are outside the scope of our trade and economic relations where this should be straightforward. There will be areas which do affect our economic relations where we and our European friends may have different goals, or where we share the same goals but want to achieve them through different means. And there will be areas where we want to achieve the same goals in the same ways, because it makes sense for our economies. Because rights and obligations must be held in balance, the decisions we both take will have consequences for the UK’s access to the EU market and for EU access to our market. But this dynamic, creative and unique economic partnership will enable the UK and the EU to work side by side in bringing shared prosperity to our peoples.

Let me turn to the new security relationship. As I said when I visited our troops serving on the NATO mission in Estonia last month, the United Kingdom is unconditionally committed to maintaining Europe’s security. We will continue to offer aid and assistance to EU member states that are the victims of armed aggression, terrorism and natural or man-made disasters. We are proposing a bold new strategic agreement that provides a comprehensive framework for future security, law enforcement and criminal justice co-operation: a treaty between the UK and the EU. We are also proposing a far-reaching partnership on how, together, we protect Europe from the threats we face in the world today. That partnership will be unprecedented in its breadth and depth, taking in co-operation on diplomacy, defence and security, and development.

Let me turn to how we build a bridge from where we are now to the new relationship that we want to see. When we leave the European Union on 29 March 2019, neither the UK nor the EU and its member states will be in a position to implement smoothly many of the detailed arrangements that will underpin the new relationship we seek. Businesses will need time to adjust and Governments will need to put new systems in place, and businesses want certainty about the position in the interim. That is why I suggested in my speech at Lancaster House that there should be a period of implementation, and that is why I proposed such a period in my speech in Florence last month. During this strictly time-limited period, we will have left the EU and its institutions, but we are proposing that, for this period, access to one another’s markets should continue on current terms and Britain should also continue to take part in existing security measures.

The framework for the period, which can be agreed under article 50, would be the existing structure of EU rules and regulations. I know that some people may have some concerns about that, but there are two reasons why it makes sense. First, we want our departure from the EU to be as smooth as possible, so it would not make sense to make people and businesses plan for two sets of changes in the relationship between the UK and the EU. Secondly, we should concentrate our negotiating time and capital on what really matters: the future long-term relationship we will have with the EU after the temporary period ends.

During the implementation period, people will continue to be able to come and live and work in the UK, but there will be a registration system—an essential preparation for the new immigration system required to re-take control of our borders. Our intention is that new arrivals would be subject to new rules for EU citizens on long-term settlement. We will also push forward on our future independent trade policy, talking to trading partners across the globe and preparing to introduce deals once the implementation period is over. How long the period should be will be determined simply by how long it will take to prepare and implement the new systems we need. As of today, those considerations point to an implementation period of around two years.

As I said in Florence, because I do not believe that either the EU or the British people will want us to stay in the existing structures for longer than necessary, we could also agree to bring forward aspects of the future framework—such as new dispute resolution mechanisms—more quickly, if that can be done smoothly. At the heart of the arrangements, there should be a double lock: to guarantee a period of implementation, giving businesses and people the certainty that they will be able to prepare for the change, and to guarantee that that implementation period will be time-limited, giving everyone the certainty that it will not go on forever.

The purpose of the Florence speech was to move the negotiations forward, and that is exactly what has happened. As Michel Barnier said after the last round of talks, there is a “new dynamic” in the negotiations. I pay tribute to the Secretary of State for Exiting the European Union, my right hon. Friend the Member for Haltemprice and Howden (Mr Davis), for all he has done to drive through real and tangible progress in a number of vital areas.

On citizens’ rights, as I have said many times, this Government greatly value the contributions of all EU citizens who have made their lives in our country. We want them to stay. In Florence, I gave further commitments that the rights of EU citizens in the UK—and UK citizens in the EU—will not diverge over time, and committed to incorporating our agreement on citizens’ rights fully into UK law and to making sure that the UK courts can refer directly to it.

Since Florence, there has been more progress, including reaching agreement on reciprocal healthcare and pensions, and encouraging further alignment on a range of important social security rights. I hope that our negotiating teams can now reach full agreement quickly.

On Northern Ireland, we have begun drafting joint principles on preserving the Common Travel Area and associated rights, and we have both stated explicitly that we will not accept any physical infrastructure at the border. We owe it to the people of Northern Ireland—and indeed to everyone on the island of Ireland—to get this right.

Then there is the question of the EU budget. As I have said, this can only be resolved as part of a settlement of all the issues through which we are working. I do not want our partners to fear that they will need to pay more or receive less over the remainder of the current budget plan as a result of our decision to leave. The UK will honour the commitments that we have made during the period of our membership. As we move forwards, we will also want to continue working together in ways that promote the long-term economic development of our continent. That includes continuing to take part in those specific policies and programmes that are greatly to our joint advantage, such as those that promote science, education and culture and our mutual security. As I set out in my speech at Lancaster House, in doing so, we would want to make a contribution to cover our fair share of the costs involved.

I continued discussions on many of these issues when I met European leaders in Tallinn at the end of last month. In bilateral discussions that I have had with Chancellor Merkel, Prime Minister Szydlo, President Tusk and the Taoiseach Leo Varadkar, there was a welcome to the tone set in Florence and the impact that it was having on moving the negotiations forwards.

Preparing for life outside the EU is also about the legislative steps that we take. Our European Union (Withdrawal) Bill will shortly enter Committee, carrying over EU rules and regulations into our domestic law from the moment that we leave the EU. Today, we are publishing two White Papers on trade and customs, which pave the way for legislation to allow the UK to operate as an independent trading nation and to create an innovative customs system that will help us achieve the greatest possible tariff and barrier-free trade as we leave the EU. Although it is profoundly in all our interests for the negotiations to succeed, it is also our responsibility as a Government to prepare for every eventuality, so that is exactly what we are doing. The White Papers also support that work, including setting out steps to minimise disruption for businesses and travellers.

A new, deep and special partnership between a sovereign United Kingdom and a strong and successful European Union is our ambition and our offer to our European friends. Achieving that partnership will require leadership and flexibility not just from us, but from our friends—the 27 nations of the EU. As we look forward to the next stage, the ball is in their court, but I am optimistic that we will receive a positive response, because what we are seeking is the best possible deal not just for us, but for our European friends too. Progress will not always be smooth, but by approaching these negotiations in a constructive way—in a spirit of friendship and co-operation and with our sights firmly set on the future—we can prove the doomsayers wrong, and we can seize the opportunities of this defining moment in the history of our nation.

Much of the day-to-day coverage is about process, but this, on the other hand, is vital. I am determined to deliver what the British people voted for and to get it right. That is my duty as Prime Minister. It is our duty as a Government, and it is what we will do. I commend this statement to the House.

--- Later in debate ---

[Jeremy Corbyn]

Rather than fighting over their own jobs, the reality is that millions of people’s jobs and living standards depend on the success of these negotiations. If this Government cannot negotiate a deal for Britain, they should make way for a team that can.

[The Prime Minister]

The right hon. Gentleman talks about what has happened over the last 15 months. Well, I will tell him what has happened: this Government have triggered article 50 and are negotiating the leaving of the European Union. We are negotiating the practical details that need to be in place to ensure that, first of all, we get the best possible deal for the UK and that, secondly, we get a deal where the withdrawal is as smooth and orderly as possible.

The right hon. Gentleman talks about a number of the issues. He says that the Florence speech was due to give momentum to the talks; indeed, it has given momentum to the talks. But I happily say to him that the last thing we need in these talks is his Momentum.

The right hon. Gentleman said, “Will we leave the single market and the customs union in March 2019?” Yes, and I have said that we will. He said, “Will freedom of movement as we know it end?” and I have said yes. I have set out in the statement I made today—if he had read it—the point about the difference that will come in during that period.

The right hon. Gentleman talked about citizens’ rights. There is considerable agreement between us and the European Union on this issue; there are some remaining issues to be dealt with. I have been very clear at every stage that we want EU citizens in this country to stay. We welcome the contribution that they have made. But I am also clear that we want UK citizens in the 27 member states of the European Union to be given their rights too. Everybody in this House of Commons should have a care for UK citizens as well as for EU citizens.

Finally, he says that this is an historic moment. It is indeed an important moment for this country. This is an important and significant set of negotiations that will set this country’s future for generations to come and I am optimistic and ambitious about what we can achieve for our country. He said that we need to negotiate carefully. Yes, we do. That is why the article 50 letter reflected the principles I set out in the Lancaster House speech. The Florence speech updates that and reflects the principles of the Lancaster House speech. What a contrast with a Labour party that said that it would respect the result of the referendum, then voted against the withdrawal Bill. The Opposition said that they wanted to leave the single market; now they might stay in the single market. They said that staying in the customs union was deeply unattractive; now they want to stay in the customs union forever. They used to be against a second referendum, but now they have refused to rule it out. With such a confused position on Brexit, no wonder it is said that there will be a run on the pound if Labour gets into power.

[Mr Kenneth Clarke (Rushcliffe) (Con)]

Will the Prime Minister reassure me that the statement clarifies that it is not the Government’s policy to seek, on the one hand, to remove all trading barriers with countries such as Japan and the United States, while on the other hand, to create new regulatory customs and tariff barriers with the European Union, with which we have free trade at the moment and which is our largest trading partner in the world? If that is correct and consistent with what she has just said, she will no doubt recall that ultra-Brexiteers, including the present Foreign Secretary, assured citizens during the referendum campaign that there would be no difference at all with our trading relationships with Europe, because they needed to sell us their Mercedes and their prosecco. Would it not be best to proceed with the negotiations on the basis that our ideal solution would be to stay in the single market and the customs union? She could then seek to negotiate changes to the conditions attached to that, which are the things to which she refers when she tries to explain where she is at the moment.

[The Prime Minister]

My right hon. and learned Friend has always been consistent on the issue of membership of the European Union. When people voted in the referendum for the UK to leave the European Union, I think they were voting for us to take control of our borders, our laws and our money. If we were to remain full members of the customs union and the single market, that would bring with it the continuing jurisdiction of the European Court of Justice forever and would also bring a requirement for free movement. I set out in the Florence speech and in the offer we made to the European Union what I have described previously as a deep and special partnership with the EU. He is right that we want to ensure that our trading relationship with the European Union can be as tariff free and as frictionless as possible, but we also see advantage in being able to negotiate new trading agreements around the rest of the world. I think that that is to the advantage of the United Kingdom, and that is what the Government will be pursuing.

[Ian Blackford (Ross, Skye and Lochaber) (SNP)]

I thank the Prime Minister for a copy in advance of her statement, although I must say that for a statement to take 13 minutes to deliver with not one mention of the devolved Administrations shows the lack of respect—[Interruption.]

[Ian Blackford]

Thank you, Mr Speaker. We respect the fact that the UK has voted to come out of Europe, but we were told during our referendum in 2014 that if we stayed in the UK, our future in Europe would be preserved. Scotland has voted to remain and, in particular, wants to stay in the single market and the customs union, so it is about time that we got some respect from the Government. The situation is now critical. [Interruption.] I can hear Conservative Members chuntering; if they want to catch the Speaker’s eye, they are entitled to do so, but perhaps they might show a little respect. These are important matters, and the public are watching this behaviour.

We stand on the brink of being dragged out of the European Union with no deal in place and facing the automatic introduction of World Trade Organisation rules. That would be a catastrophe for Scotland, threatening up to 80,000 jobs in our country alone. The President of the European Commission has said that “miracles” need to happen for there to be any progress in the negotiations. Meanwhile, the European Parliament voted last week to stop negotiations moving on to the next phase, citing lack of progress. The clock is running against the Prime Minister in more ways than one.

On EU citizens’ rights, the Government continue to drag their heels. There must now be a universal declaration from the Prime Minister that EU citizens in the UK can have their current citizenship and rights protected after exit day. No ifs, no buts—do it today. I urge the Prime Minister to listen to the voices of the devolved Administrations. We will not accept the legislation as it stands; it is a complete violation of the Scotland Act and the biggest power grab since devolution. Indeed, just last week the author of Article 50, Lord Kerr, said that Westminster was trying to break the founding principle of the devolution settlement.

The SNP has set out three key tests on Brexit for this Government: first, as an absolute minimum, we want continued membership of the single market and the customs union; secondly, the Government must declare now, without delay, that EU citizens’ rights are guaranteed; and, thirdly, the Government must accept that the withdrawal Bill cannot proceed in its current form. Will the Prime Minister live up to those asks, and will she end the immoral floundering over EU citizens’ rights now?

[The Prime Minister]

As I am sure the right hon. Gentleman knows, there will be a meeting next week of the Joint Ministerial Committee, which brings the devolved Administrations together with Ministers here in the Government. There have also been bilateral discussions between the First Secretary of State and Ministers in the Scottish and Welsh Governments on an ongoing basis over the summer.

The right hon. Gentleman refers to citizens’ rights. I remind him that during the Scottish independence referendum in 2014, which he referred to, the First Minister told EU nationals that if the EU did not allow an independent Scotland to rejoin—it was clear that the EU would not do so—EU nationals would

“lose the right to stay here.”

[Interruption.] SNP Members are shaking their heads, but that is what the First Minister said at the time.

The right hon. Gentleman referenced what I said in my statement. My statement was about the position of the United Kingdom Government in the UK’s negotiations with the European Union, and Scotland is part of the United Kingdom.

[Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)]

I warmly welcome the statement by my right hon. Friend and very good friend, our Prime Minister, on her plans for the negotiations. May I press her and ask her to elaborate a little further? In her statement, she made it clear that the ball was back in the EU’s court. Is it not reasonable to expect that, given all the negotiations and discussions and the progress that has been made, the EU should now engage the United Kingdom on something that is beneficial to it and us—namely, an ongoing free trade arrangement, to be completed by March 2019?

[The Prime Minister]

My right hon. Friend is absolutely right, and we see increasing interest in moving on to talk about that issue. That will absolutely be, as he says, not just in our interests but in the interests of the European Union; that is what is right for us both. We want the matter to be negotiated by March 2019, so that the UK comes out of the European Union knowing what the new partnership and trade agreement will be.

[Edward Miliband (Doncaster North) (Lab)]

The Prime Minister has said very clearly she believes that, on her plans, we will be out of the customs union and the single market by March 2019. That was not the impression I got from the Florence speech. Will she therefore explain how the arrangements she is seeking for the transition differ from being a member of the single market and the customs union for the period of the transition?

[The Prime Minister]

I have to say to the right hon. Gentleman that, as we leave the European Union in March 2019, we will leave full membership of the customs union and full membership of the single market. What we then want is a period of time when practical changes can be made, as we move towards the end state—the trade agreement—that we will have agreed with the European Union. We have to negotiate for the implementation period what the arrangements would be. We have suggested that that should be a new agreement—an agreement that we should be able to operate on the same basis and on the same rules and regulations.

[Sir William Cash (Stone) (Con)]

My right hon. Friend’s Florence speech stressed the fundamental principles of UK democracy and accountability in this House, upon which all else depends. The Opposition voted against the withdrawal and repeal Bill, and the repeal of the European Communities Act 1972. Does she agree that our voters have every right to hear a public explanation from the Opposition—remainers and reversers—about why, despite the referendum vote, they still subscribe, under the EU’s undemocratic system of lawmaking, to the closed-door Council of Ministers, where decisions are taken behind closed doors and largely in secrecy, which contrasts so vividly with what goes on in this House, with Bills and amendments, and with speeches and votes recorded?

[The Prime Minister]

My hon. Friend is absolutely right to point the finger at the Opposition on this particular issue. They claim they are going to support the result of the referendum, yet they vote against the very Bill that will put that in place. Not only do they do that, but in voting against the European Union (Withdrawal) Bill, they have voted against bringing environmental regulations into UK law and bringing workers’ rights into UK law. The Labour party voting against bringing workers’ rights into UK law; it is this Government who are supporting them.

[Hilary Benn (Leeds Central) (Lab)]

Four days ago, the deputy governor of the Bank of England said that the UK financial services industry needs a transitional deal by Christmas, or else it will begin implementing its contingency plans—the Chancellor is well aware of them—to shift jobs and activities across the channel. Telling the House that the ball is now in the EU’s court, as the Prime Minister did today, does not exactly give those businesses the comfort and certainty they require, so will she tell the House what her plan now is to break the negotiating logjam and achieve such a deal in time for it to do its job for a sector of the economy that employs over 1 million people?

[The Prime Minister]

I say to the right hon. Gentleman that the Florence speech set out some details on an implementation period and how we think that that could operate. We now wait for the European Union to respond to the detail that we have set out. I recognise the concerns that business has for an implementation period, but I would say, finally, to the right hon. Gentleman that this whole process is not helped by the vast majority of Labour MEPs voting against moving on to the next phase of talks.

[John Redwood (Wokingham) (Con)]

I welcome the Prime Minister’s statement that the Government will press on with working out the details for no deal. That is a very prudent thing to do and means there will be no cliff edge for British business. Does she agree that it will send the very good message to the European Union that we can do that, but that she is offering something so much better and more positive that it is in their interests to accept, and that any deal they counter with has to be better than no deal?

[The Prime Minister]

Yes, my right hon. Friend is absolutely right. I think we have offered a very good arrangement for the future to the European Union—I think it is not only in our interests, but in their interests as well—but as any prudent Government would, we continue to make plans for every eventuality. I think that is the only sensible thing for us to do.

[Mr Ben Bradshaw (Exeter) (Lab)]

Is it the Prime Minister’s understanding that, if necessary, it is possible to halt the article 50 process?

--- Later in debate ---

[The Prime Minister]

The position was made clear in a case that went through the Supreme Court in relation to article 50. The Government have made it clear that we have no intention of revoking that. We will be delivering on the vote of the British people.

[Sir Nicholas Soames (Mid Sussex) (Con)]

As my right hon. Friend wrestles with the inevitable compromises essential to securing the opportunities of Brexit in the national interest, and in view of this enormous administrative challenge, will she consider refining the machinery of government by creating an inner Cabinet to drive forward the work across the Government and thus retain greater grip and control over the whole process?

[The Prime Minister]

Ministers meet in a variety of forms to consider these issues. Before the Florence speech, I was pleased that the whole Cabinet came together and signed up to that speech. Of course, we have various discussions about the various elements of the negotiations, but I can assure my right hon. Friend that we are aware of the need to be able to ensure that we can make swift decisions when that is necessary in the negotiating process.

[Mr Chris Leslie (Nottingham East) (Lab/Co-op)]

May I press the Prime Minister to clarify her answer to my right hon. Friend the Member for Exeter (Mr Bradshaw)? He was not asking about Government policy: he was asking a straightforward question. Have the Government received any legal advice that the article 50 notice can be revoked?

[The Prime Minister]

I said to the right hon. Member for Exeter (Mr Bradshaw) that the position in relation to the revocation of article 50 was addressed by the Supreme Court in a case that went before it. It was very clear about that. We were clear as a Government that we were not revoking and it was clear in its consideration of the case of no revocation of article 50.

[Anna Soubry (Broxtowe) (Con)]

I congratulate the Prime Minister on her excellent Florence speech. It was widely welcomed, not just by British business but by people across the country, and it marked a real attempt by her to form a consensus on Brexit between the 48% and the 52% that everyone is crying out for. Forgive my throat, Mr Speaker—women with bad throats will not be silenced. [Hon. Members: “Hear, hear.”]

I may not have heard properly or understood, but did the Prime Minister say that if by the end of March 2019 we do not have a deal on the final Brexit arrangements, we will jump off the cliff and there will be no deal? Or did she say that we will go into a period of transition and during that time those vital negotiations can continue?

[The Prime Minister]

The period after March 2019 is an implementation period to implement the practical changes necessary to move to the final arrangement and the new partnership we will have with the European Union. As the article 50 process sets out, the expectation is that it is a two-year process to negotiate the arrangements—to negotiate withdrawal and take into account, and therefore know, what the future relationship is going to be. I expect, and we are working on, having that future arrangement negotiated by 29 March 2019, but because the chances are that the details of that may come quite late in the process, it will not have been possible for anyone—Governments, businesses or individuals—to have taken the practical steps necessary to move to that position. To get as smooth as possible a withdrawal, so that there is not a cliff edge, we have that period of implementation. That moves us to the final arrangement that has been negotiated by March 2019.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

Further to the question asked by my hon. Friend the Member for Nottingham East (Mr Leslie), which—with respect to the Prime Minister—was not about the Gina Miller case but about Government legal advice, can she tell the House whether the Government have received legal advice that article 50 is revocable?

[The Prime Minister]

I have to say to the right hon. Gentleman—perhaps I should have said this initially to the right hon. Member for Exeter—that of course we do not comment on legal advice that has been received, but the position was very clear in the case that he mentioned. The Supreme Court was clear that it operated on the basis that article 50 would not be revoked.

[Mr Owen Paterson (North Shropshire) (Con)]

I thank my right hon. Friend for her most encouraging statement. Recently in Washington, I found widespread enthusiasm among our American friends at the prospect of signing a free trade deal—[Interruption.]

[Mr Paterson]

I will say it again, Mr Speaker, for your benefit: I found widespread enthusiasm right across the American political firmament for the prospect of signing a free trade deal with the United Kingdom. Our American friends will welcome my right hon. Friend’s statement, yet again, that we will leave the customs union, as that is a prerequisite for signing a deal. Will she give them her best estimate of when, after March 2019, we can sign a deal with third countries of a friendly nature, like the United States of America?

[The Prime Minister]

I echo the comments that my right hon. Friend has made. That is exactly what we found in our dealings with the American Government. We have a working group on issues relating to trade working with the American Government. The exact arrangements during the implementation period will be a matter for the negotiations, but we are clear that during the implementation period it should be possible for us to continue to negotiate trade agreements. We would not enter into anything that was contrary to the agreement we had come to with the European Union.

[Chuka Umunna (Streatham) (Lab)]

The Prime Minister has been asked several times about implementation of transition and has not made any sense at all in the answers she has given. She has said today that she foresees a framework for transition of around two years along the existing structure of EU rules and regulations. The existing structure has the single market and customs union at its heart. How can what she is proposing for her implementation period be anything other than continued membership of the customs union and the single market, which our companies require?

[The Prime Minister]

I thought that I had explained this in response to one of the hon. Gentleman’s hon. Friends. As of 29 March 2019, we leave the European Union. That means we leave full membership of the customs union and full membership of the single market. We will, as part of that—this is our proposal to the EU—have negotiated an implementation period to take us in a smooth and orderly process, so that the practical changes can be made towards the end agreement with the European Union. How long that needs to last will depend significantly on the nature of that agreement and how different it is from the current arrangements, but during that period what we are proposing is that it is in the interests of individuals and businesses on all sides to be able to continue to operate on the same basis as they do today. That would be part of the withdrawal agreement that we propose to negotiate with the European Union, so that negotiation would be about the basis on which we operate during the implementation period.

[Several hon. Members rose—]

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

Will my right hon. Friend confirm unequivocally that after 29 March 2019 the European Court of Justice’s writ will no longer run in any way in this country and that any new laws agreed under the acquis communautaire after that date will not have effect here unless agreed specifically by Parliament?

[The Prime Minister]

My hon. Friend has actually raised two separate issues but elided them together. The first is about the European Court of Justice. As I have just said in answer to a number of questions, we want to have a smooth and orderly process of withdrawal with minimum disruption. That is why we want the implementation period. We will have to negotiate what will operate during the implementation period. Yes, that may mean that we start off with the ECJ still governing the rules we are part of for that period, but we are also clear that we can bring forward discussions and agreements on issues such as a dispute resolution mechanism. If we can bring that forward at an earlier stage, we would wish to do so.

The second issue my hon. Friend referred to was the question of new rules brought in during the implementation period. Given the way things operate, it is highly unlikely that anything will be brought forward during that period that has not already started discussions through the European Union to which we are party until we leave and about which we would have been able to say they were a rule we would sign up to or one we would not. Any new rules put on the table during the implementation period, given the way these things operate, are highly unlikely to be implemented during the implementation period.

[Tom Brake (Carshalton and Wallington) (LD)]

Our European friends are aghast at the chaos the Cabinet is creating. The Prime Minister has to put an end to the back-stabbing, briefing and counter-briefing from her Ministers and their surrogates. Will she show real leadership by ring-fencing the issue of EU citizens’ rights; by confirming that the UK will stay in the single market and customs union—because I am not aware of anyone who believes that the border between Ireland and Northern Ireland is safe without it; and by sacking the Foreign Secretary, whose leadership ambitions blind him to the sustained damage his back-seat driving is doing to the UK’s negotiating credibility and are increasing the chances of our crashing out of the EU?

[The Prime Minister]

The right hon. Gentleman is absolutely correct that we want the right resolution to the issue of the border between Northern Ireland and the Republic of Ireland. As I have said, we are all clear that we do not want physical infrastructure on the border or a return to a hard border or the borders of the past. I am interested in his approach, however, as I seem to remember that at one stage the Liberal Democrats were actively promoting the idea of a referendum on EU membership. Now we have had one, they do not seem to want to accept it.

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

Will my right hon. Friend simply point out to people complaining that the negotiations are going too slowly that after the referendum on 23 June last year the EU refused to negotiate until we had triggered article 50; that even when we had, it refused to discuss the long-term relationship it wanted with the UK; and that even after her emollient and conciliatory speech, it is still refusing to discuss that long-term relationship? When does she call time?

[The Prime Minister]

My hon. Friend is right that it was clear early on that we had to trigger article 50 before the negotiations could start. We waited to do that until we had done considerable work in government to prepare us for triggering article 50, which we did, and the extent of that work has now been shown in the negotiations and position papers we published over the summer. On his last point, I simply say, as I have said before, that public pronouncements are of course sometimes made about the negotiations, but we are in a negotiation, and very often our discussions behind the scenes in private are more positive and constructive than some of the public pronouncements suggest.

[Alison McGovern (Wirral South) (Lab)]

The Prime Minister’s statement has been confusing. Can I get to the heart of that confusion? She says she wants the benefits of exactly the same terms of trade with the EU as we have now, for which we need regulatory equivalence. She also says we want the benefits of not being bound by EU rules in perpetuity, for which we need regulatory divergence. It is a simple matter of logic that equivalence is the opposite of divergence. She says we want a thing and its opposite. How will she resolve this obvious contradiction?

[The Prime Minister]

When two countries enter into a trade agreement, both sides agree the set of rules and regulations pertaining to it, but they also agree how disputes will be resolved and what will happen if either side chooses to change or diverge from the rules and regulations. That is the position regarding our trade agreement with the EU, except that we already operate on the basis of the same rules and regulations. The European Union (Withdrawal) Bill will bring the EU acquis into UK law, so the key question, which will be part of the negotiations, is how we manage divergence on either side after that. It is the same as with any trade agreement.

[Mr Christopher Chope (Christchurch) (Con)]

Does my right hon. Friend believe that the EU genuinely wants a dynamic and creative future trade relationship with the UK in accordance with her vision? If so, where is the evidence for it?

[The Prime Minister]

Yes, I believe that such a relationship is in the interests of the remaining 27 members states of the EU and that as they come to look at this issue—they were not previously focusing on it, but Florence has now triggered their thinking on it—they will see the benefits of such a relationship not just to us but to them as well.

[Kate Hoey (Vauxhall) (Lab)]

The European Commission talks continually about the need for Her Majesty’s Government to provide certainty and clarity. Is there not one area in which we could provide that certainty and clarity very plainly, today and in our negotiations? Could we not make it clear that in March 2019 we will withdraw from the common fisheries policy, take back all our fisheries, and ensure that our fishing communities actually take back control of who fishes in British waters?

[The Prime Minister]

The hon. Lady is right to suggest that when we leave the European Union one of the aspects of leaving it will be leaving the common fisheries policy. Of course, we will need to consider the arrangements that we want to put in place here in the United Kingdom for the operation of our coastal waters and the operation of fishing around them.

[Vicky Ford (Chelmsford) (Con)]

I thank the Prime Minister for the positive tone of her Florence speech, and for the constructive meetings that have taken place since then. Does she agree that it is in the interests of consumers on both sides of the channel for us to have a deep, special and bespoke partnership that covers goods and services? In that regard, I am thinking particularly of the hundreds and thousands of German consumers who have bought life insurance products from British insurance companies, and who will find that unless there is agreement, their pension plan savings are lost.

[The Prime Minister]

My hon. Friend has made an important point. People often assume that only UK businesses and UK individuals will be affected, but actually people living in the remaining 27 countries of the European Union will also be affected, which is precisely why I think that the deep and special partnership to which my hon. Friend has referred is in the interests of both sides.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

The shambles and division on the Front Bench would be funny if there were not such serious consequences for our economy, for jobs, and for the future of this country and the world. The Prime Minister is simply not being honest about a whole series of consequences for this country. [Interruption.] Excuse me, Mr Speaker. The Prime Minister is not being transparent with the public about the consequences for our economy. Will she say how much money she has put aside to deal with a disastrous “no deal”, and will she publish the economic assessments made by the Department for Exiting the European Union—whose Secretary of State is sitting next to her—of the impact on 50 sectors in our economy?

[The Prime Minister]

The hon. Gentleman talks about the position of the Government. The position of the Government is very clear, and was set out in the Florence speech. It is our offer to the European Union, and we await discussions with the EU about that particular issue. I have also made it clear, from Lancaster House onwards, that when it is possible for us to give information and updates on the negotiations, we will do so, but we will do nothing that would undermine our position in the negotiations.

[James Duddridge (Rochford and Southend East) (Con)]

Given that Germany and France export more to us than we export to them, what discussions has the Prime Minister had with her French and German counterparts? Has she asked them to pressurise the EU institutions to secure a good deal for those countries, which means negotiating faster, more effectively, and with a shared understanding of what we can both gain from this deal?

[The Prime Minister]

I assure my hon. Friend that I do have discussions with the leaders of France and Germany, and, indeed, with the leaders of other EU member states. Others, such as the Dutch and the Belgians, also have a significant economic interest in our future relationship because of the economic activity at their ports. We discuss arrangements for the future with the leaders of those countries, and, as I said a little earlier, there is a growing sense and recognition of the importance of that deep and special trading relationship to the future of both sides.

[Catherine West (Hornsey and Wood Green) (Lab)]

Will the Prime Minister please tell the House the cost of Brexit to the public purse (a) if there is a deal and (b) if there is no deal?

[The Prime Minister]

It is not, of course, possible to answer that question at this stage. We are negotiating a deal, and we will not have negotiated that deal until, I suspect, close to the end of the period that has been set aside for it. At that point, we will be able to see what the benefits of the deal will be for the future of the British economy.

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

I commend the Prime Minister for her detailed statement. It was in stark contrast to what was said by the Leader of the Opposition, who left the House completely in the dark about his own position. Can the Prime Minister solve a dilemma for him? Why, if Labour Members are so concerned about Brexit, or even, indeed, about the security of EU nationals after we leave, could they not bring themselves to debate the matter at all at their own party conference in Brighton?

[The Prime Minister]

My hon. Friend makes a very good point. At the Labour party conference they actually refused to have a full debate on the issue that they now say is a matter of such consequence to them, but then that is typical: they take one position on a Tuesday and the next position on a Wednesday.

[Chris Bryant (Rhondda) (Lab)]

We did debate the European Union and Brexit at our conference actually, but let me ask about another matter. As a result of our membership of the European Union, there are some 200,000 Britons living in Catalonia, and roughly the same number of Catalan Spaniards living in the UK. I do not think that anybody in this House supports the police brutality that we have seen in Spain, but the French Government have been absolutely clear that they will not recognise Catalonia if it tries to declare itself independent unilaterally. Will the Prime Minister today make that same guarantee for Britain?

[The Prime Minister]

None of us wants to see the sort of violent scenes that we saw on the streets of Catalonia; I want to see this situation resolved peacefully, as I am sure do all hon. Members. But we are very clear as a Government that the Spanish Government have the right to uphold the Spanish constitution and that all parties should be operating under the rule of law.

[Philip Davies (Shipley) (Con)]

I very much support the Prime Minister in the final destination that she set out again today, but I have to say that her speech in Florence seemed like a reward for the EU’s intransigence. Can she confirm that we buy around £70 billion more in goods and services from the EU each year than it does from us, and that when we leave we will be the EU’s single biggest export market? Can she therefore confirm that there will be no more rewards for the EU’s intransigence?

[The Prime Minister]

My hon. Friend is of course right that the trading relationship between the United Kingdom and the European Union is very important to the EU, as well as important to the UK. What I did in my Florence speech was set out a vision—a proposal—for the future relationship between the UK and the EU, based on our current relationship, showing how we can develop that relationship in a way that is in the interests of both sides. This has switched the dial in our negotiations, and obviously we look forward to being able to enter negotiations on those aspects in more detail.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

The Prime Minister said in her statement that she proposes “a unique and ambitious economic partnership” with the EU. If she is confident that the new unique and ambitious economic partnership that she envisages will be better for the UK economy than our current quite ambitious economic partnership and membership of the single market and customs union, then, further to the question from my hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty), why will she not today, alongside her White Papers, finally publish the list of the sectors of the economy for which she has undertaken impact assessments and their results, so that the public can have the information about the impact of Brexit on the economy?

[The Prime Minister]

The full list of sectors will be published shortly.

[Sir Hugo Swire (East Devon) (Con)]

Following the recent German elections, power has moved from Berlin to Paris, so will the Prime Minister remind President Macron of the importance of being a good neighbour to the United Kingdom, because post Brexit, France will still be our neighbour, tens of thousands of French people will still want to visit and study here, and vice versa; we will still want to co-operate on environmental issues and immigration; and we will still wish to preserve our special defence arrangements with the French?

[The Prime Minister]

My right hon. Friend makes an important point about not only our future relationship with the EU, but our future bilateral relationship with France. I can assure him that all the discussions that I have with President Macron, and that other Ministers have with their opposite numbers, are based on our not only maintaining but enhancing that bilateral relationship.

[Paul Flynn (Newport West) (Lab)]

Do the two crippling tariffs imposed by the Prime Minister’s American friends on British Bombardier jobs prove that Brexit or no deal will create a jobs hell?

[The Prime Minister]

The judgment that came out of the American Department of Commerce is a preliminary one. We await the final judgment of that Department, and the issue can then go to a trade Commissioner. We continue to work with the US and Canadian Governments, and Boeing and Bombardier, to bring about a resolution to this dispute and protect the important jobs in Northern Ireland. I understand that my right hon. Friend the Business Secretary will be making a statement on the matter tomorrow.

[George Freeman (Mid Norfolk) (Con)]

After the funfair of the conference season, may I welcome the Prime Minister back to her place as leader of this party, this Government and this country, and to the serious business of government? I congratulate her on the steely determination that she showed last week, including her setting out of an inspiring commitment to see this issue through on behalf of the next generation.

When the Prime Minister heard the Leader of the Opposition refer to Labour’s policy of a transition phase, did she, like me, think that that must be the one that she herself announced in her Lancaster House speech? The only transition in Labour that I see is the one from a once great party to a party of Venezuelan socialism.

[The Prime Minister]

My hon. Friend is absolutely spot on, on both counts. Indeed, in my Lancaster House speech, I said:

“I want us to have reached an agreement about our future partnership by the time the two-year Article Fifty process has concluded. From that point onwards, we believe a phased process of implementation”

to enable us to

“prepare for the new arrangements…will be in our mutual self-interest.”

So we thought of the implementation period quite a long time ago.

[Ann Clwyd (Cynon Valley) (Lab)]

I have asked the Prime Minister the same question three times in this Chamber, given the importance of the European Parliament in the negotiations. Last time I asked her when she would address the plenary of the European Parliament. When will she do that?

[The Prime Minister]

I thank the right hon. Lady. I have spoken to the President of the European Parliament about my going over there and speaking with either the plenary or the Conference of Presidents of the European Parliament. I believe that our offices are negotiating on a date at the moment.

[James Cleverly (Braintree) (Con)]

I am sure that Members on both sides will confirm that listening to senior Danish politicians is a very good idea. Would my right hon. Friend recommend that the leaders of the other 27 EU countries listen to the wise counsel of the Danish Foreign Minister, who suggests that they stop playing games and now move on to negotiating our future trade arrangements?

[The Prime Minister]

I thank my hon. Friend, who reaffirms the point I was making earlier: there are many in the European Union who do believe that the time is now right to move on to trade negotiations.

[Mr Speaker]

I call Mr Stephen Kinnock.

--- Later in debate ---

[Stephen Kinnock]

I won’t do it in Danish—not today.

The Prime Minister’s commitment to a transition deal was a welcome reality check in this whole process, but the European Parliament resolution of 3 October states that a transition period can happen only on the basis of the existing EU regulatory, budgetary, supervisory, judiciary and enforcement instruments. Does the Prime Minister agree with the terms of that resolution?

[The Prime Minister]

That is the view of the European Parliament in its resolution. In my statement and my Florence speech, I put out that we expect that the implementation period will be based on the current rules and regulations, but of course this is part of the negotiation.

[Sir Desmond Swayne (New Forest West) (Con)]

To negotiate an outcome consistent with the ambition that my right hon. Friend has set out, is it not absolutely essential that we invest in preparations against the possibility of no agreement at all?

[The Prime Minister]

Yes, I can absolutely agree with my right hon. Friend on that, and that is precisely why that is exactly what the Government are doing.

[Helen Goodman (Bishop Auckland) (Lab)]

I am sure the Prime Minister knows that the Supreme Court did not opine on the question of whether article 50 was revocable, because the question before it was about our involvement. Therefore, why, when asked by my right hon. Friend the Member for Exeter (Mr Bradshaw) what advice she had had recently, did she rely on the Supreme Court?

[The Prime Minister]

The point that I made in relation to the Supreme Court is that the court proceeded on the basis that article 50 would not be revoked; and I gave the answer to another of the hon. Lady’s hon. Friends about what the Government do or do not say about legal advice.

[Crispin Blunt (Reigate) (Con)]

May I congratulate the Prime Minister on the tone she has set in the run-up to the decision of the October Council? I also thank her for the reply she has just given to my right hon. Friend the Member for New Forest West (Sir Desmond Swayne), making it clear that the Government have followed the recommendations of the Select Committee on Foreign Affairs in its March report about the need to prepare for no deal. Will she confirm that individuals and businesses will also need to be in a position to make their contingency plans? Does she accept that, if the negotiations on the final settlement are postponed for at least two months in October, the Government will have to surface their no-deal preparations, so that businesses and individuals can share in making the necessary preparations? This will also rely on a vote of the European Parliament, and we saw what happened last week, with the Labour MEPs supporting a position that was absolutely against the interests of the United Kingdom.

[The Prime Minister]

First of all, obviously, I still expect that we will be able to negotiate a good deal, and that is what we are working for. It is important that we take businesses along with us and that we discuss and hear from businesses their reaction to the various issues being raised in the negotiations. Indeed, I and a number of other Cabinet Ministers were present at the business advisory council that was held in No. 10 Downing Street today. However, my hon. Friend’s question seemed to be based on the premise that, if we did not get a formal notification of sufficient progress in October, that would mean that we would not be likely to get a deal. I do not believe that that is the case. I believe, as has been indicated by other hon. Friends, that we are seeing more of a movement on the European Union side to recognise the importance of discussing the trade negotiations and to consider the necessity of an implementation period.

[Lady Hermon (North Down) (Ind)]

Let me begin by commending the Prime Minister warmly for keeping going at her conference speech. It could not have been easy.

The Prime Minister—and, I am sure, other Members of the House—will be well aware that the Good Friday agreement of 1998 was voted on by thousands and thousands of people in Northern Ireland and the Republic of Ireland and secured a majority in both Northern Ireland and the Republic of Ireland. I am very pleased today that the Prime Minister has said that we owe it to the people of Northern Ireland and the Republic of Ireland to get Brexit right. Will she therefore please look seriously at introducing a Government amendment to the European Union (Withdrawal) Bill to guarantee on the face of the legislation that no regulations made under the Bill will repeal or amend the Good Friday agreement? That would be very helpful to people in Northern Ireland and the Republic of Ireland.

[The Prime Minister]

Both this Government and the Irish Government—and indeed, increasingly in the discussions we have been having on the issues relating to Northern Ireland and the Republic, the European Union—have confirmed an absolute commitment to the Good Friday agreement. We are very clear that we stand by the Good Friday agreement, which, as the hon. Lady said, was hard negotiated and welcomed by a majority. We are absolutely committed to ensuring that nothing that we do in the Brexit negotiations in any way jeopardises the implementation of the Good Friday agreement.

[Mr Shailesh Vara (North West Cambridgeshire) (Con)]

May I congratulate the Prime Minister on her very encouraging and positive statement? Does she agree that it would be helpful if British businesses with interests in other European Union countries used their influence with the political leadership in those countries to impress upon them the need to have an agreement in everyone’s interest? In particular, does she agree that they need to emphasise that the economic impact of not having an agreement by March 2019 will not only affect Britain, but hugely affect the other EU countries as well?

[The Prime Minister]

My hon. Friend has made a very important point, and I certainly would encourage businesses and others to ensure that they are making that clear with their contacts in the 27 member states. I believe that that is already happening, and I certainly meet people from across the European Union who make exactly the point that it is in their economic interests to ensure that we get a good deal negotiated by March 2019.

[Chris Ruane (Vale of Clwyd) (Lab)]

Over the past 17 years, Wales has received £9 billion in grants from Europe. During the Brexit debates and the referendum, Tory Ministers said that Wales would not lose out as a result of Brexit. Can the Prime Minister tell us how much funding Wales will get—additional funding—after Brexit is completed?

[The Secretary of State for Exiting the European Union (Mr David Davis)]

Nice bid.

[The Prime Minister]

Nice bid, as the Secretary of State says. Let me say to the hon. Gentleman—[Interruption.] Well, he changed from “not losing out” to “additional money” in his question. We have been very clear in relation to a number of elements where people currently receive funding related to the EU, such as under the common agricultural policy and structural funds, that we will meet any agreements entered into before we leave the European Union—in relation to the structural funds, as long as they meet UK priorities and are value for money. Thereafter, once we are outside the EU, it will be for us here in the UK to decide how we wish to ensure that different parts of the country are supported in the way that is necessary for them. What I have put forward is that there should be a shared prosperity fund, which will look at the diversity and disparity within regions and between regions, and we will act accordingly.

[Mr Peter Bone (Wellingborough) (Con)]

Last week, I met a leading UK industrialist and we discussed Brexit and the hundreds of thousands of people employed in the sector in this country. Although he wanted to see an agreement and understood entirely the Prime Minister’s implementation period, he is concerned that, if no agreement is reached, it is no good saying that on 29 March 2019—he needs to know now what Brexit without a deal would look like, so that he can plan for that eventuality. He asked whether the Prime Minister could publish those plans prior to Christmas.

[The Prime Minister]

I recognise the concerns people have about ensuring they know what the situation is going to be. The Government are working on what steps will be necessary for whatever the eventuality—whether we do negotiate a deal or whether we do not—and in doing that we are holding discussions with business.

[Hywel Williams (Arfon) (PC)]

I thank the Prime Minister for prior sight of her statement. We have heard a great deal from her about the non-border that she envisages between the north of Ireland and the Republic, but I do not think we have heard a word about the border between Wales and the Republic of Ireland, even though the north Wales route through Holyhead is second only to Dover in its volume of traffic. Will she tell the House what she is doing to ensure that north Wales does not grind to a halt after Brexit?

[The Prime Minister]

I am very clear that as we look for a solution for the border between Northern Ireland and the Republic of Ireland we do not want to set up a new border between the island of Ireland and the mainland of the United Kingdom. Obviously, what happens at the border the hon. Gentleman refers to will depend on the future partnership that we agree with the EU. We have put some proposals forward for customs arrangements that could pertain. When we get into the negotiation of that phase, we will be able to look at those issues in detail.

[Michelle Donelan (Chippenham) (Con)]

Will the Prime Minister confirm that we will rule out a second referendum, unlike the Labour party, whose Members seem to be confused as to whether we should be speeding up the process or reversing it?

[The Prime Minister]

My hon. Friend makes an important point. I am very clear that there will be no second referendum. The British people were given their opportunity to choose, they chose to come out of the European Union and that is what this Government will deliver.

[Tulip Siddiq (Hampstead and Kilburn) (Lab)]

My constituent Jessica Simor, QC, from Matrix Chambers has done important work on the legal status of revoking article 50, and she is of the opinion that it can be revoked. The Supreme Court case that the Prime Minister referred to rules that the Government cannot trigger article 50 without an authorising Act of Parliament. Article 50 provides for the notification not of withdrawal but of an intention to withdraw, and the Prime Minister will be aware that in law an “intention” is not a binding agreement. So I ask her once again: will she publish the legal advice she has received, which is important for the wider public to see?

[The Prime Minister]

I say to all those Opposition Members who have stood up today and asked about the legal position on revoking article 50 that the position is very clear. The British people voted in a referendum to leave the European Union.

[Mr Laurence Robertson (Tewkesbury) (Con)]

Will the Prime Minister confirm that no money will be paid for access to the single market, for two reasons? First, the EU sends a lot more goods and services to us than we send to it. Secondly, there are countries around the world that export to the EU single market without any problems at all.

[The Prime Minister]

My hon. Friend is of course right that the EU has a number of trade agreements with countries around the world that enable those countries to deal with the single market on the basis set out in those agreements. As I have set out, we will honour our commitments—that is important for us as a country—and there are some areas, possibly in fields such as security and science, in which we will want to continue to be members of specific projects and programmes. If we do, it will be right that we pay an element of the costs of those projects and programmes. Those are the two elements that I have set out in our financial proposals.

[Ian C. Lucas (Wrexham) (Lab)]

Has the EU agreed in principle to a transitional arrangement with the UK?

[The Prime Minister]

Having an implementation period will be part of the negotiations. The EU has previously referenced the possibility of there being such a period, but we need to negotiate the length of that period and its implementation.

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

There are five key NATO countries that are committed to the defence of our continent that are not members of the EU, and we will soon join that group. Will the Prime Minister give me an assurance that she will work closely with those countries, and with countries such as Poland that are on the frontline with Russia, to ensure that NATO continues to be the supreme defence posture for our continent, rather than a single European army?

[The Prime Minister]

We continue to believe that NATO is the bedrock of European security and we will continue to play a full role in NATO, as we have done over the years since its formation. I am pleased that we have British troops involved in NATO operations on the eastern border of the EU, protecting that border and giving that guarantee of European security.

[Paula Sherriff (Dewsbury) (Lab)]

The Prime Minister has said that there will be no new infrastructure on the Irish border and no customs border over the Irish sea, and that we will not remain a member of the customs union. If all those options are ruled out, can she explain exactly what kind of customs border we will have?

--- Later in debate ---

[The Prime Minister]

I suggest that the hon. Lady has a look at the paper on that issue that we published in the summer.

[Bill Wiggin (North Herefordshire) (Con)]

I congratulate my right hon. Friend on her excellent answer to the hon. Member for Rhondda (Chris Bryant), but the vile brutality of the Spanish police really does disturb me. Any bold new strategic agreement on law enforcement and criminal justice cannot allow bullying of that nature, whether by member states or EU negotiators.

[The Prime Minister]

I assure my hon. Friend that the agreement that we envisage entering into with the remaining states of the EU on security, criminal justice and law enforcement matters will be mutually beneficial, particularly on the sort of data we can exchange across borders to ensure we are able to deal with the many challenges we face, especially those relating to human trafficking and modern slavery, organised crime and, of course, terrorism.

[Karin Smyth (Bristol South) (Lab)]

As the vice-chair of the British-Irish Parliamentary Assembly, I recently visited Jersey with the hon. Member for Romford (Andrew Rosindell). While there, we discussed the customs union, a customs union and a customs arrangement, but we did not get around to talking about a customs system. The Prime Minister has used various words to describe the border, from somewhere between hard and soft, to now talking about a physical border. Further to the comments by the hon. Member for North Down (Lady Hermon) and the Prime Minister’s rather flippant answer to my hon. Friend the Member for Dewsbury (Paula Sherriff), when will the Prime Minister do the communities on the Irish border the courtesy of visiting them to explain her analysis of the customs system in relation to the Good Friday agreement?

[The Prime Minister]

In relation to that issue, we have looked at the broader question of the customs arrangements and, as I say, we have published a paper that contains proposals for systems that could operate in future. In relation to the Northern Irish border with the Republic of Ireland, we are discussing with the parties in Northern Ireland, the EU and the Irish Government what the future arrangement might look like, but the EU recognises that it is not possible to confirm what that future arrangement will look like until we have looked into some of the wider issues of the future partnership between the UK and the EU.

[Michael Fabricant (Lichfield) (Con)]

Kristian Jensen has joined Wolfgang Schäuble—both are Finance Ministers—in saying that the negotiation would be easy were it not for the game playing. It is the modus operandi of the EU to bully on occasion, to brief the media negatively on occasion, and to bide for time right up until the wire. May I tell my right hon. Friend not to be naive—not that she would be—and listen to the ridiculous comments from Labour Members who have never negotiated their way out of a paper bag, let alone the EU?

[The Prime Minister]

My hon. Friend is absolutely right. We know the things that can be done in negotiations to appear to make life difficult. What matters is that the Government have their vision very clearly set on the end state and the arrangement we wish to negotiate, and we are firmly committed to that negotiation. I can think of no better person than my right hon. Friend the Secretary of State for Exiting the European Union to deal with the sort of methods that my hon. Friend set out.

[David Linden (Glasgow East) (SNP)]

Is not the major issue the fact that the Government’s Brexit agenda is being driven by the Foreign Secretary on the pages of the Daily Telegraph—that is, when he is not moonlighting as Bernard Manning? Will the Prime Minister listen to the Scottish Government and not sacrifice 80,000 jobs on the altar of internal party politics by leaving the single market?

[The Prime Minister]

I have explained this on a number of occasions, but I shall do so again. The British people voted to leave the European Union. Leaving the European Union means not being a full member of the single market and the customs union. We have set out a proposal for a deep and special economic partnership with the EU that continues to enable both sides to trade with each other in a way that protects jobs and brings increasing prosperity to the United Kingdom and to the European Union. I say again, as I have said in the past: if the hon. Gentleman wants to ensure that jobs in Scotland are protected, he needs to make sure that Scotland remains part of the United Kingdom.

[Andrew Rosindell (Romford) (Con)]

The very last thing my constituents would want is the revocation of article 50. The British people voted for Brexit, they expect the Prime Minister to deliver it, and they have every confidence that she will. Will she reassure the people of Gibraltar that no agreement will be made unless they are fully included in that agreement, and that Spain has no veto over their future?

[The Prime Minister]

We are very clear on that. We have continued to hold talks with the Gibraltar Government—as, indeed, we have with others—to make sure that they are fully aware of the negotiations as they go along. We are very clear about Gibraltar’s position. My hon. Friend makes an important point about the Labour party and the rest of the Opposition: they claim that they want to respect the referendum vote, yet here they are trying to suggest we should revoke article 50. That is the exact opposite of what the British people wanted.

[Jack Dromey (Birmingham, Erdington) (Lab)]

As a lifelong negotiator who has stood up for workers all my life against the actions of Conservative Governments, I say to the hon. Member for Lichfield (Michael Fabricant) that the jewel in the crown of British manufacturing is the automotive sector. It is a world-class success story that has transformed the lives of hundreds of thousands of workers, and more than half our cars are sold into the EU. Will the Prime Minister provide more detail on the implementation period? The industry is facing mounting problems, particularly given the importance of regulatory alignment to the sector and the integrated nature of European supply chains. If the Government get this negotiation wrong, they will do grave damage to the automotive sector and thousands of workers will pay the price with their jobs.

--- Later in debate ---

[The Prime Minister]

I recognise the importance of the automotive industry, but there are also a number of other industries here in the United Kingdom that are very important for our jobs and future prosperity. We have set out the framework for the implementation period. I have been clear both here and in the Florence speech about the rules and regulations that are required during that implementation period, but they have to be negotiated with the European Union, and that is exactly what we want to start to do.

[Several hon. Members rose—]

[Oliver Dowden (Hertsmere) (Con)]

Businesses in my constituency are concerned about outcomes, particularly the frictionless movement of goods across Europe and the mutual recognition of standards, rather than membership of particular institutions. Will the Prime Minister reassure me that, during the second phase of negotiations, those outcomes will be the Government’s priority?

[The Prime Minister]

Yes, I can give my hon. Friend that assurance. That is exactly why we have said that we want to negotiate a new agreement and a new partnership with the European Union. It will be the interests of businesses across the United Kingdom that will be part of what is driving us towards that new arrangement.

[Paul Girvan (South Antrim) (DUP)]

I thank the Prime Minister for her statement to the House today. I listened with interest when she stated that she was both a proud Unionist and strong on the Union. I take heart from that. I want to give comfort to the people in Northern Ireland on this matter of not having a soft or hard border down the middle of the Irish sea. I want that assurance because the people of Ulster feel that they are being set on the sidelines.

[The Prime Minister]

I am very happy to give that assurance. We do not want to see a border down the Irish sea either. We want to maintain the integrity of the internal market of the United Kingdom.

[Richard Graham (Gloucester) (Con)]

Former New Zealand High Commissioner Lockwood Smith has said that there are few advantages to the UK in leaving the EU without bringing back ambitious responsibility for our own trading arrangements across the world. Does my right hon. Friend agree that, while we all accept the importance of a short period of transition, we should not lose sight of the longer-term goal of pursuing our own trade deals?

[The Prime Minister]

My hon. Friend is absolutely right. There are real opportunities for the UK in negotiating those other trade agreements around the world. Although we will have that implementation period, we will be negotiating and ensuring that we can put into place trade agreements that will be of benefit both to this country and to jobs in this country.

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

The writing is not on the wall for this Government as some say: it is just slowly sliding off. Why did the Prime Minister choose to deliver her statement from Florence when Ealing town hall would have had her? What was the cost of flying the entire Cabinet there in pounds or euros or in terms of the carbon footprint—any will do?

[The Prime Minister]

I am asked why I gave a speech about our future relationship with Europe on mainland Europe. I do not need to give any answer to that.

[Mr Marcus Fysh (Yeovil) (Con)]

Will my right hon. Friend confirm that her concept of an implementation phase will only be enacted if firm plans and a schedule for implementation of permanent new arrangements between the EU and UK have already been agreed?

[The Prime Minister]

Yes. It is very simple: the implementation phase is a period for practical changes to be put in place. We cannot know what those practical changes are until we know the end state that we are driving towards. Having agreed on that end state and that future relationship, the period of implementation is purely to put the practicalities in place.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

Within these important plans for leaving the EU, will the Prime Minister please confirm that safeguards have been put in place to ensure that the promised £350 million will be made available for our NHS?

[The Prime Minister]

As I said earlier, one reason why people voted to leave the EU was to control our money, so we will not be sending huge sums of money every year in perpetuity to the European Union. When we have left the European Union, this Government will be able to decide how we will deploy the funds that are available.

[Robert Neill (Bromley and Chislehurst) (Con)]

I congratulate the Prime Minister on her statement, and the tone of pragmatism in her Florence speech. Does she agree that, throughout this time and the implementation period, it will be right and proper to place our commercial interests front and centre in these matters regardless of any arcane or theoretical considerations, and that patience and pragmatism are not only important in the interests of this country, but most consistent with the spirit of our party too?

[The Prime Minister]

My hon. Friend is absolutely right to put such emphasis on patience and pragmatism. That is exactly the spirit in which we are entering these negotiations. He is right that we need to consider fairly and squarely the commercial interests. We must also ensure that the deal that we reach is clearly in the United Kingdom’s national interest.

[Bambos Charalambous (Enfield, Southgate) (Lab)]

In her statement, the Prime Minister referred to a post-Brexit United Kingdom as being an independent trading nation. Can she explain how that will apply to just-in-time manufacturing in the United Kingdom?

[The Prime Minister]

An independent trading nation is one that is able to determine its own trading policy and to enter into trade agreements around the rest of the world. What the hon. Gentleman is talking about is something that depends on having frictionless borders, and, as I have said, we want to negotiate with the European Union as frictionless a border as possible.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

It is good to hear not only the Prime Minister’s optimism about the chances of striking a trade deal, but that we are preparing for no deal. In order to give businesses as much time as possible to adjust, will she consider drawing a line in the sand with a date attached to it by which, if we have not made sufficient progress, we will finally and simply walk away from the negotiating table?

[The Prime Minister]

One of the important points about negotiation is that we keep our hands as free as possible. We do want to ensure that we take business with us. As I have said, there are a number of ways in which we are discussing the future arrangements with business. The implementation period is important, and I hope that we can get on to discuss that as early as possible with the European Union, but we do need to maintain a degree of flexibility in our negotiating positions.

[Graham Stringer (Blackley and Broughton) (Lab)]

By having not yet sat down to talk about trade, the European Commission has shown that its priorities are the integrationist European project and punishing this country for having the temerity to choose to govern ourselves. That does not bode well for any deal. Can the Prime Minister tell us what balance of resources is going into contingencies in the event of no deal compared with the amount of resources going into the negotiations?

[The Prime Minister]

We are doing the work that is necessary to ensure that we are prepared for whatever outcome emerges from the negotiations. The hon. Gentleman is right: there have been a number of speeches recently that suggest a more integrationist approach for the EU in future. I am clear that it is important that we are that self-governing nation and that we get that good deal with the European Union because it is in the economic interests of both sides.

[Nigel Huddleston (Mid Worcestershire) (Con)]

Given that the EU has a £70 billion annual trade surplus with the UK, does the Prime Minister agree that the European business community should be far more vocal in its communications with its political leaders, because failure to conclude a deal would not reflect well on its competence?

[The Prime Minister]

My hon. Friend is right: it is important for businesses based in the European Union that we achieve a good trade agreement and a good new economic partnership with the EU, and I encourage them to make that point.

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

Would the Prime Minister care to comment on the remarks of John Bruton, who said that the EU cannot really trust the UK because of the huge divisions within her Government? Is that the impression we are giving our European partners?

[The Prime Minister]

No, the European Union is very clear on our position as it was set out in the Florence speech.

[Robert Jenrick (Newark) (Con)]

At times such as this, it is important that Britain speaks with one voice—[Laughter.] The Opposition may laugh, but if that is the case, does my right hon. Friend agree that it was deeply disappointing that British MEPs voted against a furthering of the negotiations, which would have taken them to the crucial stage? Was she as surprised as I was that she was the only party leader to withdraw the Whip from those individuals?

[The Prime Minister]

My hon. Friend is absolutely right. It is in the interests of this country that we move forward on those trade negotiations. I was astounded to hear that any MEPs had voted in favour of a resolution saying that sufficient progress had not been made and that we should not move to those trade negotiations. I have acted regarding the two Conservative MEPs who voted against British interests. It is time that the right hon. Member for Islington North (Jeremy Corbyn) did something about the 18 Labour MEPs who did so.

[Albert Owen (Ynys Môn) (Lab)]

I very much welcome a transitional period for businesses to adjust, as will businesses and port authorities in my constituency. The Prime Minister has mentioned on three occasions the Irish border with Welsh, Scottish and English ports. I have read the paper this summer. I have read the House of Lords report and what the EU has said. Will the Prime Minister be clear on whether there will be a special customs union with Wales, Scotland, Northern Ireland and the Republic of Ireland? Can she categorically say that there will be no physical borders in Welsh ports?

[The Prime Minister]

I have referenced the paper that the hon. Gentleman says he read this summer. It sets out a couple of options for the customs relationship overall between the UK and the EU once we have left the European Union. Of course, we need to get into these negotiations so that we can sit down with the European Union and discuss what will work for both sides. I repeat what I have said: we want to maintain the integrity of the internal market of the United Kingdom and we are very clear that there should be no physical infrastructure on the border between Northern Ireland and the Republic.

[David Morris (Morecambe and Lunesdale) (Con)]

My local chamber of commerce welcomes the two-year transition period because business is, quite simply, booming in my constituency. The chamber of commerce actually gets that. It also gets that if there is a run on the pound, as the Opposition say there will be if they ever reach government, it will create not just job losses, but interest rate increases. If I am going to criticise my Prime Minister, it has to be on this statement—not what is in it, but the font. My ailing eyes cannot see it. In future, Prime Minister, please put it in large print not just for my ailing eyes, but so the Leader of the Opposition and his Front Bench can understand it.

[The Prime Minister]

I thank my hon. Friend for that suggestion. I will certainly give careful thought to it. I am sure that businesses in his constituency are thriving and recognise the value that is brought to them by having such a good constituency Member of Parliament.

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

The Prime Minister says that she wants a unique trading relationship with the EU after Brexit, so she will be pleased to know that the citizens’ assembly convened last month by the constitution unit at University College London reached the same conclusion. However, the members of the assembly also said that if a bespoke deal was not possible, the next best thing would be for us to remain in the customs union and single market. May I invite the Prime Minister to look at that piece of work? It was deliberatively arrived at and there was a three to one majority among leave and remain voters for retaining those options if a deal cannot be achieved.

[The Prime Minister]

We are always happy to look at any contributions made to the debate around the negotiations, but I repeat that the European Union has been very clear about the indivisibility of the four pillars. If we want to be a full member of the single market and a full member of the customs union, it means maintaining free movement and the overall jurisdiction of the European Court of Justice. That is, effectively, not leaving the European Union. The British people voted to leave the European Union.

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

I warmly welcome the Prime Minister’s statement, particularly her comments about EU citizens and, equally importantly, UK citizens living and working in the EU. She is right that the ball is very much in the EU’s court, but will she ensure that the issue remains front and centre and is resolved as quickly as possible?

[The Prime Minister]

I am happy to give my hon. Friend that confirmation and reassurance. We said we wanted this issue to be looked at from an early stage and it has been. Significant progress has been made and I hope that the negotiators will be able to clear up the remaining issues between us in relation to citizens’ rights so that we can give citizens that absolute certainty.

[Stephen Timms (East Ham) (Lab)]

Will the Prime Minister confirm that there will be no new restrictions at the UK border for EU citizens wishing to come into the UK during the implementation period of “around two years”? I think that is the implication of what she has been saying. She also said that there will be a registration scheme. Who will she require to register?

[The Prime Minister]

It is right that people will be able to come to live and work in the United Kingdom, but those coming from the European Union after the point at which we have left the European Union will be required to register. This is part of the building block to the new immigration rules that will be in place at the end of the implementation period.

[Alex Chalk (Cheltenham) (Con)]

Constituents of mine at GCHQ play an expert and invaluable role in the defence of this nation and the continent of Europe. Does the Prime Minister agree that the unconditional guarantee of ongoing intelligence co-operation is a constructive step that should help to pave the way to early trade talks?

[The Prime Minister]

I would hope that the European Union would recognise the benefit of our security relationship and the relationship we have on matters of counter-terrorism, as well as on law enforcement and criminal justice more widely. That relationship is in both our interests, and I hope the EU recognises its importance.

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

Will the Prime Minister say which particular elements of full membership of the single market she thinks should not apply in any transitional arrangements?

[The Prime Minister]

As I have said, being a full member of the single market is indivisible from full membership of the customs union, free movement and the complete jurisdiction of the European Court of Justice. We will be negotiating an implementation period and the arrangements on which we are able to operate. We will negotiate those as a country that will no longer be a member of the European Union.

[Liz McInnes (Heywood and Middleton) (Lab)]

The Prime Minister has said that her position on Gibraltar is clear. If that is the case, can she explain why she made no reference to Gibraltar in her statement? Will she clarify what conversations she has had with the Spanish Government about the Gibraltar-Spain border?

[The Prime Minister]

We are very clear that the issue of borders and relationships is one that we wish to discuss as part of the overall future relationship between the United Kingdom and the European Union. As I said earlier, we have been continuing to discuss with the Government of Gibraltar their particular concerns and interests to ensure that we can provide a deal that works for Gibraltar as well as the United Kingdom.

[Mr Paul J. Sweeney (Glasgow North East) (Lab/Co-op)]

Does the Prime Minister agree that in the haste to seize control of laws, borders and money, no consideration has been given to how that is best achieved within the British state itself? Would it not be more satisfactory to convene a constitutional convention that would properly consider how the distribution of legislative and regulatory governance across the UK is achieved through each component part of the United Kingdom, including England itself?

[The Prime Minister]

We are doing a very simple thing. We are putting into place the wishes of the British people as expressed in a referendum and we are negotiating towards that future deal. I suggest that the hon. Gentleman talks to the leader of his party. The Leader of the Opposition says that we are being too slow, but the hon. Gentleman says we are being too hasty.

[Rachael Maskell (York Central) (Lab/Co-op)]

The Prime Minister seems to have failed to notice that the vote in the European Parliament was 557 votes to 92—a clear rejection of the Government’s chaotic strategy. It is confusing for everyone and, most of all, deeply damaging for business confidence and future investments. When will we hear exactly when the transitional arrangements will be in place? Businesses need to know now.

[The Prime Minister]

As I implied in my statement and have said in answers to questions, we have put forward a proposal for the implementation period. But this is a negotiation, which means that we need to negotiate the details of the implementation period with the European Union. The European Parliament gave that view, although it is not a binding vote. If the hon. Lady wants us to get on and negotiate the implementation period, she should have suggested to those 18 Labour MEPs who voted against that resolution, not in favour.

[Peter Grant (Glenrothes) (SNP)]

I gently remind the Prime Minister that if she wants to make a habit of suspending Conservative parliamentarians who act against the British interest, she really does not have to go as far as Brussels to find some prime candidates. Given her often professed concern for the fate of UK nationals living in the European Union, how does she feel about the fact that when we had the opportunity to debate that precise matter in Westminster Hall on 12 September, not a single Conservative Back Bencher saw fit to remain for the entire 90 minutes of the debate? Does that not speak volumes for the real lack of concern that her party has for the 1.5 million Brits overseas and the 3 million Europeans living here?

[The Prime Minister]

The hon. Gentleman cannot have it all ways. The Scottish National party complains to me that I am not making unilateral declarations about EU citizens here. My point is very clear: we have the interest of UK citizens in hand as well and we want to consider that interest. We are working on that. We are actively ensuring the interests of those UK citizens through the negotiations. It is not about standing up and talking about it; it is about doing something about it.

[Mr Speaker]

I am most grateful to the Prime Minister and to colleagues.

Grenfell Tower Inquiry: Terms of Reference

Baroness May of Maidenhead Excerpts

Thursday 14th September 2017 Written Statements

[The Prime Minister (Mrs Theresa May)]

On 15 August 2017, 1 announced the formal setting up of a public inquiry into the Grenfell Tower fire, to be chaired by Sir Martin Moore-Bick, and its terms of reference. This followed Sir Martin Moore-Bick’s letter to me of 10 August, which advised me of the outcome of the public consultation on the scope of the terms of reference, and his recommendations. I was happy to accept Sir Martin’s recommendations without amendment.

The inquiry’s full terms of reference are:

to examine the circumstances surrounding the fire at Grenfell Tower on 14 June 2017, including the immediate cause or causes of the fire and the means by which it spread to the whole of the building;

the design and construction of the building and the decisions relating to its modification, refurbishment and management;

the scope and adequacy of building regulations, fire regulations and other legislation, guidance and industry practice relating to the design, construction, equipping and management of high-rise residential buildings;

whether such regulations, legislation, guidance and industry practice were complied with in the case of Grenfell Tower and the fire safety measures adopted in relation to it;

the arrangements made by the local authority or other responsible bodies for receiving and acting upon information either obtained from local residents or available from other sources (including information derived from fires in other buildings) relating to the risk of fire at Grenfell Tower, and the action taken in response to such information;

the fire prevention and fire safety measures in place at Grenfell Tower on 14 June 2017;

the response of the London Fire Brigade to the fire; and

the response of central and local government in the days immediately following the fire; and

to report its findings to the Prime Minister as soon as possible and to make recommendations.

Sir Martin has said that he is considering appointing assessors to assist him in his task. He considers it likely that he shall wish to appoint a diverse group of people whose experience extends to the occupation and management of social housing and the administration of local government more generally, as well as to matters of a more technical scientific nature. He also states that at a later stage, he may also wish to appoint others to assist on particular aspects of the investigation. He will make his decisions public in due course. I have not appointed any other members to the inquiry panel at this stage. However, the Inquiries Act 2005 allows for appointments to be made, with the consent of Sir Martin, during the course of the inquiry. This enables the composition of the inquiry panel to be kept under review.

My exchange of correspondence with Sir Martin is in the Library of the House.

Sir Martin is holding a preliminary hearing later today where he will set out further detail on how he intends on conducting the inquiry.

In addition to the work of the inquiry, my right hon. Friend the Secretary of State for Communities and Local Government has already announced an independent review into building regulations and fire safety, led by Dame Judith Hackitt. This will urgently assess the effectiveness of current building and fire safety regulations and related compliance and enforcement issues, with a focus on multi-occupancy high-rise residential buildings. The review will co-operate fully with the inquiry. Sir Martin has set out his reasons for not looking into the broader social housing issues but, as he said in his letter, they should not be ignored and I am determined that these important questions are not left unanswered. As a first step, I have asked my hon. Friend the Housing Minister (Alok Sharma) to personally meet and hear from as many social tenants as possible, as well as other residents of social housing estates, both in the immediate area around Grenfell Tower and across the country. The Housing Minister has already met a number of representative groups and will continue to meet tenants during October and November.

[HCWS135]

Home Buying Policy, Commonhold Law and Protected Persons

Baroness May of Maidenhead Excerpts

Thursday 20th July 2017 Written Statements

[The Prime Minister (Mrs Theresa May)]

This written statement confirms three machinery of Government changes.

Responsibility for home-buying policy, including estate agent regulation, will transfer from the Department for Business, Energy and Industrial Strategy to the Department for Communities and Local Government. Responsibility for commonhold law will transfer from the Ministry of Justice to the Department for Communities and Local Government. These changes will be effective immediately.

Responsibility for protected persons policy will transfer from the Ministry of Justice to the Home Office. This change will be effective immediately.

[HCWS88]

Oral Answers to Questions

Baroness May of Maidenhead Excerpts

Wednesday 19th July 2017 Commons Chamber

[Mr Geoffrey Robinson (Coventry North West) (Lab)]

Q1. If she will list her official engagements for Wednesday 19 July.

[The Prime Minister (Mrs Theresa May)]

As we approach recess, I am sure that Members from all parties wish to thank the staff of the House for their dedication to our work here in what has been a particularly challenging year. We saw terrorists attack our democracy and our way of life—not just in the Westminster attack, but in the attacks at Manchester, Finsbury Park and London Bridge. It is thanks to the professionalism and bravery of people such as Elizabeth Bryan, an off-duty A&E nurse from Cambridgeshire who ran to help at the scene of the Borough Market attack and who is with us in the Gallery today—[Hon. Members: “Hear, hear]—that these attacks will never succeed. We are united in defending the values that define our nation.

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

[Mr Robinson]

Of course the whole House associates itself with the Prime Minister’s words about defending our values. Her schedule does not seem so busy, so could she find time to visit Coventry? I can assure her of a warm welcome from the city’s three Labour MPs, who all doubled their majorities in the recent general election that she called; we were very grateful for that.

On a serious note, is the Prime Minister aware that Coventry is the designated national research and development centre for the controls of driverless vehicles? Would she not consider it an appropriate location to relocate her whole Government to? Then she could see the controls of driverless vehicles in practice.

[The Prime Minister]

Well, I am always happy to visit the west midlands. I am particularly pleased to visit the west midlands under its new Mayor, Andy Street, who is doing a very good job. The hon. Gentleman mentioned automated vehicles. This country is a leader in automated vehicles. That is part of building a strong economy and that is what this Government are doing.

[Helen Whately (Faversham and Mid Kent) (Con)]

Q4. Our national health service was last week judged the best, safest and most affordable healthcare system—better than that of France, Germany, Norway, Sweden, Switzerland, Australia and New Zealand. Too often in this House, we focus on the negatives. I have heard the Labour party attempt to weaponise the NHS. Will my right hon. Friend—and, I hope, the Leader of the Opposition when he stands—congratulate NHS staff on their skills and dedication, and on the hard work they have put in to achieve these high standards?

[The Prime Minister]

I am very happy to stand here and congratulate all NHS staff, who are delivering such a fantastic service and who have made the NHS, once again—this is not the first time—the No. 1 health system in the world. We are determined to continue to enable that high level of service to be provided, which is why we will be investing more than half a trillion pounds in our NHS between 2015 and 2020.

[Jeremy Corbyn (Islington North) (Lab)]

I join the Prime Minister in thanking all the staff of this House for all the work they do all the year round. They are fantastic, supportive and inclusive, and they are great with the public who come here. I want to thank them for everything they do.

I also join the Prime Minister in thanking all our emergency services for the way they coped with all the terrible emergencies we have had over the past few months in this country, and I thank those communities, such as my own in Finsbury Park, that have come together to oppose those who try to divide us as a community and as a people. The emergency services were in action again yesterday, protecting the people of Coverack from the flood they suffered. We should always remember that we rely on those services.

The Chancellor said this week that some public servants are “overpaid”. Given that the Prime Minister has had to administer a slapdown to her squabbling Cabinet, does she think the Chancellor was actually talking about her own Ministers?

[The Prime Minister]

First, I join the right hon. Gentleman not only in praising the work of our emergency services, but in recognising the way in which after the terrible terrorist attacks, and of course the appalling tragedy of the Grenfell Tower fire, we have seen communities come together and support those who have been victims of those terrible incidents. I was very pleased, as he knows, to be able to visit Finsbury Park after the attack there and see for myself the work that had been done in that community and the work that he had done that night in working among his constituents to ensure that the community came together after that terrible attack.

On public sector pay, I simply say this to the right hon. Gentleman: I recognise, as I said when I stood on the steps of Downing Street a year ago, that some people in our country are just about managing—they find life a struggle. That covers people who are working in the public sector and some who are working in the private sector, which is why it is important that the Government are taking steps to, for example, help those on the lowest incomes through the national living wage. It is why we have taken millions of people out of paying income tax altogether; and it is why under this Government basic rate taxpayers have seen a tax cut of the equivalent of £1,000. But you only get that with a strong economy, and you only get that with a Conservative Government.

[Jeremy Corbyn]

I thank the Prime Minister for what she said about my own community; I am obliged to her for that. However, my question was about whether the Chancellor had said that public service workers are overpaid or not. The reality in this country is simply this: a nurse on a median salary starts on £23,000; police officers start on £22,800; and jobcentre clerks start on £15,000. I had a letter from Sarah who wrote to me this week about her sister-in-law, who is a nurse. Sarah said:

“she has sacrificed her health for the caring of others. She has had a pay freeze for the last five years. Only her dedication and passion for her vocation keeps her going. Why is this happening”.

What does the Prime Minister say to Sarah and those others working in our NHS?

[The Prime Minister]

What I say to Sarah and to those working in the national health service is that we recognise the excellent work they are doing. We recognise the sacrifice that they and others have made over the past seven years. That sacrifice has been made because we had to deal with the biggest deficit in our peacetime history—left by a Labour Government. As we look at public sector pay, we balance being fair to public sector workers, protecting jobs and being fair to those who pay for them. The right hon. Gentleman seems to think it is possible to go around promising people more money and promising that nobody is ever going to have to pay for it. He and I both value public sector workers. We both value our public sector services. The difference is that on this side of the House we know that you have to pay for them.

[Jeremy Corbyn]

The Prime Minister does not seem to have had any problem finding money to pay for the Democratic Unionist party’s support. The Conservatives have been in office for 84 months, and 52 of those months have seen a real fall in wages and income in our country. In the last Prime Minister’s Question Time before the general election, the Prime Minister said:

“every vote for me is a vote for a strong economy with the benefits felt by everyone across the country.”—[Official Report, 26 April 2017; Vol. 624, c. 1104.]

Does she agree you cannot have a strong economy when 6 million people are earning less than the living wage?

[The Prime Minister]

I will tell the right hon. Gentleman when you cannot have a strong economy: it is when you adopt Labour party policies of half a trillion pounds of extra borrowing, which will mean more spending, more borrowing, higher prices, higher taxes and fewer jobs. The Labour Government crashed the economy; the Conservative Government have come in—more people in work, more people in jobs, more investment.

[Jeremy Corbyn]

May I invite the Prime Minister to take a check with reality on this? One in eight workers in the United Kingdom—that is 3.8 million people in work—are now living in poverty. Some 55% of people in poverty are in working households. The Prime Minister’s lack of touch with reality goes like this. Low pay in Britain is holding people back at a time of rising housing costs, rising food prices and rising transport costs; it threatens people’s living standards, and rising consumer debt and falling savings threaten our economic stability. Why does the Prime Minister not understand that low pay is a threat to an already weakening economy?

[The Prime Minister]

The best route out of poverty is through work, and what we now see is hundreds—[Interruption.] Yes, it is.

[Mr Speaker]

Order. The question has been asked. The Prime Minister’s answer must—and however long it takes, it will—be heard.

[The Prime Minister]

The best route out of poverty is through work. That is why it is so important that, over the last seven years, we have seen 3 million more jobs created in our economy. It is why we now see so many thousands of people in households with work, rather than in workless households, and hundreds of thousands more children being brought up in a household where there is work rather than a failure to have work. That is what is important. But what is important for Government as well is to ensure that we provide support to people. That is why we created the national living wage. That was the biggest pay increase ever for people on the lowest incomes. When did the Labour party ever introduce the national living wage? Never! That was a Conservative Government and a Conservative record.

[Jeremy Corbyn]

It was Labour that first introduced the minimum wage—with opposition from the Conservative party.

Wages are lower than they were 10 years ago. The Prime Minister has been in office for just one year, and during that time disposable income has fallen by 2%. The economic consequences of austerity are very clear, and so are the social consequences: life expectancy stalling for the first time in 100 years. Today, the Institute for Fiscal Studies forecasts that income inequality is going to get worse and that child poverty will rise to 5 million by 2022. Does the Prime Minister—[Interruption.]

--- Later in debate ---

[The Prime Minister]

The right hon. Gentleman is, of course, wrong in some of the facts that he is putting forward. In fact, inequality is down. Life expectancy is continuing to rise. What we know is that what will not deliver a strong economy for this country is Labour’s policies of more borrowing, more spending, higher taxes and fewer jobs. What the right hon. Gentleman wants is a country that is living beyond its means. That means making future generations pay for his mistakes. That is Labour’s way, and the Conservatives will never do that.

[Jeremy Corbyn]

What we want is a country where there are not 4 million children living in poverty and where homelessness does not rise every year. I look along the Front Bench opposite and I see a Cabinet bickering and backbiting while the economy gets weaker and people are pushed further into debt. [Interruption.] Well, they can try talking to each other. The economy is—[Interruption.]

[Jeremy Corbyn]

The reality is that wages are falling, the economy is slowing, the construction sector is in recession, the trade deficit is widening, and we face crucial Brexit negotiations. Is not the truth that this divided Government are unable to give this country the leadership it so desperately needs now to deal with these issues?

[The Prime Minister]

I will tell the right hon. Gentleman the reality. The reality is that he is always talking Britain down and we are leading Britain forward. Let us look at the record of the Conservatives in government: 3 million more jobs, 4 million people out of paying income tax altogether, over 30 million with a cut in their income tax, record levels of people in employment, record numbers of women in work, the deficit cut by three quarters, inequality down, and record levels of foreign direct investment. That is a record to be proud of, and you only get it with a Conservative Government. [Hon. Members: “More!”]

[Mr Speaker]

I call Mike Wood. I do not think the hon. Gentleman knew how popular he was.

[Mike Wood (Dudley South) (Con)]

Q5. The black country flag has come under attack from Labour Members in recent days. Will the Prime Minister join me in again congratulating Gracie Sheppard, who designed the flag, reflecting our industrial heritage, when she was just 12 years old? Does the Prime Minister agree that the latest figures showing the west midlands as the fastest-growing part of this country show once again that the black country remains a great place to do business?

[The Prime Minister]

As my hon. Friend says—he is absolutely right—the black country remains a great place to do business. I would like to congratulate Gracie on designing that flag at the age of only 12. I am sure that she and others, including the Express & Star, have been surprised at the attitude from the Labour Benches on this particular issue. I commend my hon. Friend and my other hon. Friends in the black country, and indeed the Express & Star, for the work that they are doing to promote the black country as that great place to do business, to live, and to bring up children like Gracie.

[Ian Blackford (Ross, Skye and Lochaber) (SNP)]

Does the Prime Minister believe that her Government have delivered pension fairness for women who, like her, were born in the 1950s?

[The Prime Minister]

What the Government are delivering for women is a better state pension for women so that women in future will be better off under the state pension than they have been in the past. We are equalising the state pension age, and I think that everybody across the whole House will recognise that that is the right thing to do.

[Ian Blackford]

The Prime Minister has found up to £35 billion for Hinkley Point C nuclear power station, up to £200 billion to replace the Trident missile system, and £1 billion for a deal with the DUP just so she can keep her own job. She seems to be able to shake the magic money tree when she wants to. Will she now end the injustice for those women who are missing out on their pensions before she herself thinks about retiring?

[The Prime Minister]

I am a little surprised, given the hon. Gentleman’s background, that he said what he did about Hinkley Point. Hinkley Point is actually privately funded—this is not money that is coming from the Government to develop Hinkley Point—so I find that a little strange. We have put £1 billion extra into the question of the change in the state pension age to ensure that nobody sees their state pension age increase by more than 18 months from that which was previously expected. I must also say to the hon. Gentleman that the Scottish Government of course now have extra powers in the area of welfare. Perhaps it is about time that the Scottish Government got on with the day job and stopped talking endlessly about independence.

[Jeremy Lefroy (Stafford) (Con)]

Q8. Businesses in Stafford and other constituencies need as much certainty as possible now about what will happen after we leave the EU in March 2019 for investment decisions they are making in the coming weeks and months. As the Government work on the comprehensive future relationship with our European neighbours, will they also negotiate time-bound transitional arrangements that prioritise the jobs of our constituents and the health of our economy?

[The Prime Minister]

My hon. Friend is absolutely right. As I have said in this Chamber and elsewhere, we want to avoid a cliff edge for businesses, because people want to know where they stand, and to be able to carry on investing in the UK and creating the jobs that we have seen being created. As I have also said before, once we know—once we have negotiated through this two-year period—what the end-state relationship for the UK and the European Union will be in the future, it will then be necessary to have an implementation period when people can adjust to that new end state that is coming in. There will be some very practical things that need to be done during that period. As part of the negotiations, it will be important for us to agree what that implementation period, or periods, is, and what the arrangements will be during that.

[Kirsty Blackman (Aberdeen North) (SNP)]

Q2. Since Winnie Ewing’s maiden speech 50 years ago this year, SNP MPs and MSPs have been arguing for the voting age to be lowered. In recent elections, young people have proven themselves to be the most knowledgeable and most engaged that they have ever been. I believe there is a majority in this House in favour of lowering the voting age. Will the Prime Minister support giving votes to 16 and 17-year-olds?

[The Prime Minister]

I would say to the hon. Lady that this is one of those issues on which people will obviously have different views. My view has always been and continues to be that 18 is the right age. We expect people to continue in education or training until the age of 18, and I think that is the right point for the voting age.

[Bob Blackman (Harrow East) (Con)]

Q9. In Harrow and up and down the country, young people will be eagerly anticipating their A-level results to see whether they qualify for a university education. Will my right hon. Friend confirm the dramatic increase in the number of people from disadvantaged backgrounds going to university, and can she think of anyone who should apologise for misleading the British public?

[The Prime Minister]

I think it is very important, as people are thinking about going to university, that they are not misled in any way. It is the case that more disadvantaged 18-year-olds are now applying to university than ever before. I believe the Leader of the Opposition said exactly the opposite, and I think he should apologise for that. I think the Labour party should actually go further. At the election, the Leader of the Opposition vowed to deal with student debt, and Labour were going to abolish student debt; now they say it was not a promise at all. Students know Labour cannot be trusted on student fees.

[Mr Paul J. Sweeney (Glasgow North East) (Lab/Co-op)]

Q3. The Prime Minister will now know what it is like to have a job but to lack job security. Sometimes it can even bring a tear to the eye. Given her new-found empathy for millions of workers in insecure work, why is she now cutting six Department for Work and Pensions jobcentres in Glasgow and also back-office staff at Springburn in my constituency, where unemployment is twice the national average?

[The Prime Minister]

May I start by welcoming the hon. Gentleman to his new job in this House? What is happening in relation to jobcentres in Scotland is that the DWP is ensuring it is using the estate properly and to the best advantage. As a result of what is happening, no services are going to be cut. In fact, services to people using jobcentres will be enhanced in future. I think what matters is actually the service that is provided to people attending those jobcentres.

[Richard Drax (South Dorset) (Con)]

Q11. The brave men and women of our armed forces put themselves in extremely challenging situations in their efforts to keep us all safe. We therefore owe it to them to do all we can to support them and their families when they have completed their service. I warmly welcome the launch of the “Defence people mental health and wellbeing strategy” yesterday, but will my right hon. Friend tell the House how we can co-ordinate this excellent programme with our international allies? May I also wish her a very well deserved break when she finally decides to take it in the recess?

[The Prime Minister]

My hon. Friend raises a very important issue. Members across the House recognise the importance of ensuring that we provide that support to those who are in our services and our veterans. The issue of mental health and wellbeing is very important, and I welcome the new strategy for mental health and wellbeing in the armed forces. I also pay tribute to the tireless work of my hon. Friend the Member for Plymouth, Moor View (Johnny Mercer), particularly on mental health, since he came to the House.

My hon. Friend the Member for South Dorset (Richard Drax) raises an issue that is important not just for us in the UK; we need to see how we can work internationally on it. That is why my right hon. Friend the Secretary of State for Defence launched the strategy at an international conference yesterday, with counterparts from the United States, Australia, Canada and New Zealand. We will all campaign against the stigmas around mental health so that members of our armed forces and our veterans can get the help they need.

[Dan Carden (Liverpool, Walton) (Lab)]

Q6. In my constituency of Liverpool, Walton, almost 40% of children are growing up in poverty. With schools closing this week and local support services cut to the bone, austerity bites and kids do not get fed. The Prime Minister says that her mission is to make Britain “a country that works for everyone”.What is she doing now to stop kids going hungry this summer in Liverpool, Walton?

[The Prime Minister]

May I first of all welcome the hon. Gentleman to his place in this House? He is right to say that it is important that we look at the provision made in school for children and at the issue of households and poverty, but as I said to his right hon. Friend the Leader of the Opposition, the best way we can deal with poverty—the best route out of poverty—is for people to get into the workplace and then for us to ensure that other, better-paid jobs are provided for people in the workplace in the future.

[Lucy Allan (Telford) (Con)]

Q12. A young woman in Telford who gave evidence in a horrific child sexual exploitation case five years ago is living in fear. The perpetrator, who received a 22-year sentence, is about to be released early. CSE victims are too often overlooked and ignored. Does the Prime Minister agree that CSE victims should be properly consulted on the release of perpetrators and that in this case the perpetrator should not be returned to Telford?

[The Prime Minister]

My hon. Friend raises a very important issue. We all know that child sexual exploitation is an absolutely horrific crime. It is absolutely right that if victims are going to come forward to report this abuse, they need to know that they will be supported so that they can have the confidence to do so and be confident in their future security and safety. The victim contact scheme is supposed to treat victims properly and ensure that consideration is given to victim-related conditions when looking at an offender’s licence on release. If my hon. Friend would like to write with the details of the case to my right hon. Friend the Justice Secretary, he will look at it very carefully.

[Ian Murray (Edinburgh South) (Lab)]

Q7. The interim Prime Minister has repeatedly refused to answer the question asked by my right hon. Friend the Leader of the Opposition, so may I try again? It was reported over the weekend, by the temporary Chancellor’s own Cabinet colleagues, that he had said that some public sector workers are “overpaid”. Will the Prime Minister tell the House, the country and those public sector workers which ones she thinks are overpaid, which ones she thinks are underpaid and what she is going to do about it?

[The Prime Minister]

As I said earlier, I recognise that there will be people working in the public sector who do find life a struggle and are just about managing, and there will be people in the private sector who are in the same place. I also say to the hon. Gentleman that, as we have seen in the figures released today, there are some people working in the public sector who are very well paid. We need to ensure that, when we look at public sector pay, we balance being fair to workers, protecting jobs and being fair to those who pay for the public sector, and that we also support people by ensuring that they can keep more of the money they earn. That is why we believe in cutting taxes.

[Mr Kenneth Clarke (Rushcliffe) (Con)]

The Government are under predictable pressure on public sector pay and public sector spending, which we would all like to respond to if there were some sensible demands. However, does my right hon. Friend agree that the only way in which a responsible Government can increase public sector pay is if we restore to this country strong economic growth and a sensible Government fiscal balance sheet, and that the biggest threats to our achieving either of those things over the next two years are a bad Brexit deal that puts up barriers to trade and investment, or the return of a hard-left, old-fashioned socialist Government?

[The Prime Minister]

My right hon. and learned Friend is absolutely right. As a very successful former Chancellor of the Exchequer, he speaks with expertise on this issue. He is right that we need to get a good Brexit deal, but he is also right that the policies of the Leader of the Opposition and the shadow Chancellor, were they ever to get the opportunity to put them into practice, would not lead to more money for nurses, our national health service or our public sector; they would lead, through higher spending and higher borrowing, to jobs going, higher prices, higher taxes for people, less money available for our health service and less money available for our nurses.

[Gordon Marsden (Blackpool South) (Lab)]

Q10. Does the Prime Minister know that her universal credit process is failing my constituents? The Salvation Army and Streetlife report that vulnerable Blackpool people are juggling a month’s money without help, that there are unfair sanctions for people with mental health issues, that a six-week wait for money is causing more stress, and that there is a phone helpline that Citizens Advice says can cost claimants 55p a minute and take 39 minutes to answer. Can she start by getting them a freephone number?

[The Prime Minister]

The importance of the universal credit scheme is that it is ensuring that being in work always pays. With the universal credit scheme, we are seeing more people getting into the workplace. The DWP is constantly looking at the scheme and how it is operating around the country to ensure that any problems that people raise are addressed.

[Antoinette Sandbach (Eddisbury) (Con)]

Thousands of my constituents and millions of consumers in this country have to pay surcharges when they use their credit or debit card—a highly unfair practice. Will my right hon. Friend outline the impact of lifting surcharges on consumers in this country?

[The Prime Minister]

My hon. Friend is absolutely right. It is very important that this issue is being addressed. We believe that rip-off charges have no place in modern Britain. That is why card charging abuse is going to come to an end. This is about fairness and transparency. We do not want people to be surprised, when they come to pay for something, that an extra surcharge is suddenly added because they have used a particular card. The total value of such fees in 2010 was estimated to be £473 million. That money will be put back in the hands of shoppers across the country, so that they have more cash to spend on the things that matter to them.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

Q13. In her Lancaster House speech, the Prime Minister said that the UK would be leaving the single market. Will she tell the House whether that red line on the single market also applies to any transitional agreement or implementation period that might be agreed for the period after March 2019?

[The Prime Minister]

We said that we would no longer be a member of the single market because we will no longer be a member of the European Union and, as the European Union says consistently, its four pillars are indivisible. Therefore, the fact that we do not wish to be subject to other issues, like the European Court of Justice and free movement requirements, means that we will no longer be a member of the single market. At the end of the two years, when we have negotiated the end state deal, there will be an implementation period for that deal, but we are very clear that at the point at which we reach the end of the negotiations, we will be out of the European Union.

[Andrew Bridgen (North West Leicestershire) (Con)]

I welcome the Institute for Fiscal Studies report this week on income inequality in the UK. It clearly shows that, contrary to Labour propaganda that was often repeated during the general election, the income gap between rich and poor in our country has reduced every year since 2010. Does my right hon. Friend agree that that clearly shows that those with the broadest shoulders are bearing the heaviest burden in dealing with the debt we inherited from the last Labour Government?

[The Prime Minister]

My hon. Friend is absolutely right. The IFS report clearly shows what he has said today. As we know, the top 1% of taxpayers are bearing 27% of the tax burden. That is a higher burden than in any year under the Labour Government.

[Louise Haigh (Sheffield, Heeley) (Lab)]

Q14. NHS England commissions child and adolescent mental health beds at a private hospital in my constituency, which recently received a damning Care Quality Commission report. The CQC found that the hospital was unsafe not least because, on inspection, it found a young woman with MRSA with open wounds on a ward. Does the Prime Minister share my concern that a shortage of mental health beds risks the NHS placing vulnerable young people in unsafe environments, and will she consider giving NHS England the responsibility for, and the resources to investigate, the quality of care before it commissions?

[The Prime Minister]

The hon. Lady has raised a very significant point. On mental health, of course we are boosting the funding that is going into mental health in the national health service and across the picture, across Government, in terms of dealing with mental health. We are taking a number of steps to improve mental health. She has raised a very particular case, which I am sure everyone in the House will have been concerned to hear, and I will ensure that the Secretary of State looks into the case she has raised.

[Ms Nusrat Ghani (Wealden) (Con)]

Daesh’s atrocities have failed to deliver a caliph or a fictional caliphate. Does my right hon. Friend agree that our international partners must provide resources and commitment to apply international law and bring prosecutions against Daesh fighters and those who choose to partner with them, making it clear that wherever a death-cult terrorist hides, we will find them and hold them accountable for their barbaric crimes?

[The Prime Minister]

My hon. Friend is absolutely right about this. It is important that those who have committed these horrific crimes are brought to justice. We have done good work as a United Kingdom in helping those in these theatres to see how they can collect evidence that can then be used in prosecutions. We want to do this work internationally through the United Nations and it is an issue that I spoke about to Prime Minister al-Abadi of Iraq yesterday. We want to work with them and others to ensure that we can send the very clear message that my hon. Friend identifies.

[Sarah Jones (Croydon Central) (Lab)]

Q15. Does the Prime Minister agree that the huge increase in knife crime has tragic consequences for families in constituencies such as mine? What will she do to work with me and other Members on both sides of the House to find solutions to this blight on young lives, including looking again at the budget for policing?

[The Prime Minister]

I welcome the hon. Lady to her place in the House. Her presence has enabled me to appoint a very good chief of staff to my office at No. 10. She raises the very serious issue of knife crime. The Government have been taking a tougher stance on knife crime. We do think this is an issue and we have done this in a variety of ways. Now, if people carry a knife in public they are much more likely to go to prison. But we do recognise that there is more to do in this area. That is why yesterday my right hon. Friend the Home Secretary announced plans to consult on new offences to toughen up knife crime laws, including restricting the online sale of knives—we have done some of that already, but we think there is more for us to do—and banning possession of dangerous or offensive weapons on private property. The hon. Lady has raised an important issue and the Government have been addressing it. We recognise that we need to do more, and that is what my right hon. Friend the Home Secretary is doing.

[Sir Edward Leigh (Gainsborough) (Con)]

Before the election, the Government committed to removing the faith-based cap for free schools and even included that promise in our election manifesto. Catholic dioceses up and down the country are anxious to open free schools and some have even purchased sites. Will the Prime Minister commit her Government to honouring that solemn pledge in our manifesto?

[The Prime Minister]

My hon. Friend will recognise that the reason we put that in our manifesto, and the reason it was in the schools Green Paper that we published before the election, is that we do believe it is important to enable more faith schools to be set up and more faith schools to expand. This is an issue that my right hon. Friend the Secretary of State for Education is considering and she will publish further details on our overall view in terms of improving school diversity and encouraging the creation of more good school places in the near future.

[Caroline Lucas (Brighton, Pavilion) (Green)]

Last week the Prime Minister refused to make public a report on the foreign funding of extremists in the United Kingdom, despite pressure from Members in all parts of the House and beyond. Last night, survivors of 9/11 also urged her to make the report available. Has she refused to do so simply because the content of the report will embarrass the Government’s friends in Saudi Arabia, or because Ministers care rather more about arms sales to Riyadh than they do about public safety in Britain?

[The Prime Minister]

It is absolutely nothing to do with that. There is certain confidential information in the report that means that it would not be appropriate to publish it, but my right hon. Friend the Home Secretary has made it available, on a Privy Council basis, to Opposition parties.

[Rebecca Pow (Taunton Deane) (Con)]

For signs of the strong economy that the Prime Minister has so eloquently outlined this morning, we need look no further than Taunton Deane. It is a microcosm of the national picture, with record house building, record employment, and record Government investment in road schemes such as the A358 upgrade and the expansion of junction 25. Does the Prime Minister agree that to build on the economic success that this Government have overseen, those key road projects should not just speed up traffic and ease congestion but unlock more jobs, thus further fuelling the rise in productivity?

[The Prime Minister]

I am very happy to recognise Taunton Deane as a microcosm of the excellent economy that we see across the country. My hon. Friend has made an important point about the need to invest in infrastructure in order to boost our economy. It is a point that the Government readily understand and accept, which is why, in last year’s autumn statement, my right hon. Friend the Chancellor of the Exchequer was able to announce a £23 billion national productivity investment fund, a considerable portion of which will go into infrastructure. We fully recognise not just the importance of large-scale transport projects such as Crossrail, HS2 and the expansion of Heathrow, but the importance of investing in projects at a more local level if we are to unlock further economic growth in areas like Taunton Deane.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

With no legal powers, funds or criteria, and with schools and Parliament not open, Epsom and St Helier University Hospitals NHS Trust is once again consulting on the closure of the hospital and the building of a new £400 million hospital in Belmont. There have been five consultations over 18 years, wasting £40 million of taxpayers’ money. Is it not time for the Prime Minister to step in and put a stop to it, and allow this important hospital to get on with the day job?

[The Prime Minister]

I understand that Epsom and St Helier Trust is indeed seeking views on future specialist care at the trust, and on how the existing buildings can be improved. I also understand that the discussions are at an early stage, that no final decisions have been made, and that any proposals for major service change will be subject to a full public consultation.

[Vicky Ford (Chelmsford) (Con)]

Not only has the Institute for Fiscal Studies said that we have the narrowest income gaps for a decade, but the Office for National Statistics has said that Britain has some of the lowest levels of persistent poverty in Europe. Does my right hon. Friend agree that it is right that this country is governed by the true facts and not by fake news, and that this Government are committed to building a strong economy for all?

[The Prime Minister]

Let me start by welcoming my hon. Friend to the Chamber. She is absolutely right: we owe it to our constituents—we owe it to the public—to ensure that when we debate these issues we debate them on the basis of the facts, and not on the basis of the sort of fake news that we hear all too often in the Chamber.

[Jack Dromey (Birmingham, Erdington) (Lab)]

Lakeside children’s centre is a lifeline for often struggling kids and their parents in one of the poorest wards in Britain, giving them the best possible start in life, yet it is one of 26 children’s centres that face closure in Birmingham. Does the Prime Minister understand the consequences of her actions? Does she understand that £700 million of cuts in the city council’s budget are having a devastating impact on the provision of children’s centres? Will she act properly to fund those centres, and to reverse a tidal wave of closures that will otherwise have a devastating impact on the life chances of a whole generation of children?

[The Prime Minister]

Obviously, decisions on this issue are being taken by the Birmingham local authority, but it ill behoves any Member of the Labour party to stand up in this House and complain about the issues with public spending that we have had to address, because they are the direct result of the failure of a Labour Government to manage our economy.

[Alison Thewliss (Glasgow Central) (SNP)]

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