(8 years, 10 months ago)
Commons ChamberRead Hansard Text Read Debate Ministerial Extracts
Roger Mullin (Kirkcaldy and Cowdenbeath) (SNP)
1. What discussions he has had with the Chancellor of the Exchequer on the potential effects on Scotland of measures in the next Budget.
The Secretary of State for Scotland (David Mundell)
This is the first Scottish questions since the passing of the former Member for Ross, Skye and Lochaber. Charles Kennedy was a regular participant at Scottish questions and I wish to pass on my personal condolences to his family at this sad time.
I have regular discussions on a range of economic issues with my Cabinet colleagues, including the Chancellor of the Exchequer.
Roger Mullin
It gives me great pleasure to welcome the Secretary of State to his new role and wish him well. In my constituency RBS has announced the closure of branches in Kelty and in Aberdour, a further sign of withdrawal from the banking sector that should be supporting small and medium-sized enterprises and communities. What is the right hon. Gentleman’s view of the retail banking sector in Scotland? Has he had discussions with the Chancellor about creating challenger banks out of RBS?
David Mundell
This is a momentous question because it is the first time that a Member representing Kirkcaldy and Cowdenbeath has asked a question at Scottish questions. I share the hon. Gentleman’s concern about RBS’s approach to branch closures, its commitment to smaller communities and its breach of a commitment not to be the last branch to leave a community. I will certainly take up with RBS the issues he has raised.
Mrs Anne-Marie Trevelyan (Berwick-upon-Tweed) (Con)
The Secretary of State will know that my Dual the A1 campaign has achieved committed funding from this Government of £290 million for the 13 miles of dualling towards the Scottish border. I will need cross-border support to build the economic case for the remaining 35 miles to complete the dualling between London and Edinburgh. Will my right hon. Friend support my campaign?
David Mundell
I have said in the House that I fully support that campaign, and I know that it also has the support of my colleague John Lamont, the local Member of the Scottish Parliament on the Scottish side of the border.
Angus Robertson (Moray) (SNP)
I associate my right hon. and hon. Friends with the comments of the Secretary of State in respect of Charles Kennedy, and I welcome the right hon. Gentleman back to his place in his role as Secretary of State for Scotland.
The next UK Budget is going to continue the austerity course of the Tory Government, and it will hit the poorest in society. Will the Secretary of State be up front and explain whom it will hit when £12 billion of cuts hit families and communities across Scotland?
David Mundell
When it comes to being up front, it is the Scottish National party that needs to be up front about its proposals for taxation and spending. It used to tell us it wanted full fiscal autonomy, but now it does not seem to want that. It is for the SNP to answer the question of where the additional spending in Scotland would come from.
Angus Robertson
The last time I looked, this was Scottish questions, where it is the Government who have to answer the questions on the powers for which they are responsible. They are about to bring in £12 billion of cuts and the Secretary of State for Scotland has not been up front about where they will hit. On a related topic, the living wage can make a huge difference to those on low incomes, and I am very proud that the SNP Scottish Government are the first Government in the UK to become an accredited living wage employer. When will his Department and his Government follow the SNP lead on the living wage?
David Mundell
I am very proud of the proposals that my colleague Ruth Davidson has taken forward in the Scottish Parliament to incentivise small businesses to pay the living wage. One would have thought, when one hears SNP rhetoric, that it supported such proposals, but it does not.
Andrew Stephenson (Pendle) (Con)
13. A number of businesses in Pendle trade with Scotland, including Carlson Filtration in Barnoldswick, which supplies products to the Scotch whisky industry. Does my right hon. Friend therefore agree that we are better together?
David Mundell
I absolutely agree with my hon. Friend that businesses right across the United Kingdom benefit from the continuance of our United Kingdom. This Government’s commitment particularly to the Scotch whisky industry is evidenced in the last Budget, which was warmly welcomed by the Scotch Whisky Association.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
First, I thank the Secretary of State for his fine words in relation to the passing of Charles Kennedy and of course associate myself and my party with them.
The Secretary of State will have seen at the weekend reports indicating that the Chancellor of the Exchequer intends to use next month’s Budget to start increasing fuel duty again. As the economic recovery starts to take hold, does the Secretary of State understand the very serious impact that that could have on the economies of rural Scotland, and will he use his office to argue against such a move?
David Mundell
The right hon. Gentleman should be wary of newspaper reports. Let us hear what is said in the Budget. The Chancellor has made no clear statement of any intention to increase fuel duty.
John Stevenson (Carlisle) (Con)
I, too, congratulate my right hon. Friend on his superb election victory and his appointment as Secretary of State for Scotland. Does he agree that, with greater fiscal devolution to the Scottish Parliament, places such as Carlisle will assess the potential effects on Carlisle of measures in the Scottish Government’s budgets as well as the national Budget? Does he also agree that the Carlisle principle set out during the election campaign is important not only to the north of England but to the south-west of Scotland?
David Mundell
Indeed I do agree with my hon. Friend. Of course, the nature of the devolution settlement means that different decisions will be taken in Scotland on those matters that are devolved, so inevitably different policies will be pursued on one side of the border from the other. I think that the Carlisle principle set out by the Prime Minister during the general election should be followed.
Ian Murray (Edinburgh South) (Lab)
As this is the first Scottish questions, I also pay tribute to Charles Kennedy. He was warm, he was witty, he was kind, and our condolences go out to his family, his friends and his party, and, of course, his son Donald.
How many more Scottish children of working-age families will fall into poverty as a result of his Government’s decisions on welfare?
David Mundell
There is no evidence that there will be a further increase in the number of children falling into poverty as a result of welfare changes in Scotland. Indeed, the evidence shows that since statistics began there has been a relative decrease in child poverty in Scotland. As the hon. Gentleman will know, the Scotland Bill is devolving extensive welfare provisions to the Scottish Parliament, and if the Scottish Parliament believes that there is any detriment in Scotland it will have the opportunity to top up or create new benefits.
Ian Murray
The Secretary of State says that there is no evidence. I find that answer contemptible. Let me give him some evidence. John Dickie, the head of the Child Poverty Action Group, has said that the Government’s £12 billion cuts to welfare could lead to a “child poverty crisis”. The Institute for Fiscal Studies has said that those most likely to be affected are low-income working households with children. Is it not time that the Secretary of State stopped ducking the question and came clean about the impact this will have on vulnerable Scottish families, given that 50% of children in poverty in Scotland are from families who are in work?
David Mundell
The Government’s position is clear: the best way out of poverty is into work. There is a record low number of workless households in Scotland, and I hope that the hon. Gentleman welcomes that. I also hope that he welcomes the Government’s decision to devolve significant welfare powers to the Scottish Parliament so that if there are specific issues in Scotland decisions can be made in Scotland to deal with them.
Paul Farrelly (Newcastle-under-Lyme) (Lab)
2. When he plans to publish the third annual report on the implementation and operation of part 3 (Financial Provisions) of the Scotland Act 2012.
The Secretary of State for Scotland (David Mundell)
The report has already been published: it was laid before this Parliament on 23 March 2015.
Paul Farrelly
I thank the Secretary of State and also say how much I and all my Back-Bench colleagues will miss the real gentleman who was Charles Kennedy.
Part 3 of the Act includes the power to devolve further existing taxes as well as creating new ones. Just so that we know where we stand following the election, will the Secretary of State update the House on what further taxes the emboldened Scottish Government have asked to be devolved and which requests he is minded to grant?
David Mundell
The hon. Gentleman will know from the Second Reading debate on the Scotland Bill that there was some uncertainty on the SNP Benches about whether proposals would be brought forward to put in place the SNP’s previous policy of full fiscal autonomy. I now understand that such proposals will be brought forward, but only on the basis that other parties with a real interest in Scotland will vote them down.
Mr Bernard Jenkin (Harwich and North Essex) (Con)
Will my right hon. Friend explain to SNP Members how the Barnett formula actually works? If there are spending cuts in English Departments, it follows that there are cuts in Scottish spending as well. If they support the Barnett formula in the vow, they presumably understand why these reductions have to be made.
David Mundell
It is not clear what the SNP understands in relation to fiscal matters, but I agree at least with the new hon. Member for Edinburgh East (Tommy Sheppard) that fiscal autonomy for Scotland would be “a disaster”.
John Howell (Henley) (Con)
3. What recent discussions he has had with business groups in Scotland.
The Minister for Small Business, Industry and Enterprise (Anna Soubry)
My right hon. Friend the Secretary of State for Scotland and other UK Ministers and officials meet business groups in Scotland regularly. I am pleased to say that one of my first visits in my new role will be to Aberdeen.
John Howell
The UK Government are committed to reducing the burden of red tape on businesses. The Scottish Government have some powers in this area. Is it not a good idea for them both to work together to reduce the burden of regulation on businesses full stop?
Anna Soubry
Absolutely. It is imperative that Administrations right across the United Kingdom work together to reduce the burden of red tape and deregulate as much as they can. We achieved £10 billion of benefit to small businesses and other sectors under the previous Government, and our aim is to achieve another £10 billion of savings for the benefit of everybody in the United Kingdom.
Alan Brown (Kilmarnock and Loudoun) (SNP)
Has the Minister met the open-cast coal industry recently, and if so will she urge the Chancellor to introduce a site-specific coal carbon tax exemption in the July Budget? This move would create 1,000 jobs, provide a net income for the Exchequer and restore open-cast sites in east Ayrshire.
Anna Soubry
That is the set of proposals we are considering. May I make it very clear to the hon. Gentleman that I am more than happy to speak to and meet him? If he would like to contact me after this session, we can arrange such a meeting.
Mr David Anderson (Blaydon) (Lab)
4. What recent discussions he has had with trade unions in Scotland on the Government’s proposed legislation on trade unions.
The Minister for Small Business, Industry and Enterprise (Anna Soubry)
We are in the process of bringing forward new legislation in relation to trade unions to make sure that we carry out our manifesto commitment. I have not yet met any of the trade unions in Scotland. I look forward to that so that we can make progress with the Bill.
Mr Anderson
From what the Minister has just said, it is quite clear that she has regular discussions with business, but no discussions with trade unions. It is clear that trade union association is a matter of human rights, and that the right to strike makes the difference between people being workers and being slaves. Will she assure the House that she will listen to the voice of the trade unions, and will she confirm that these rules will not breach International Labour Organisation conventions?
Anna Soubry
May I make it very clear to the hon. Gentleman that as a former trade unionist and shop steward I am more than willing to listen to trade unions? Equally, however, it is really important to understand that in the modern world it cannot be right that a minority vote to strike has the most profound effect on travellers and on carers and children. It is in everybody’s interests for us to make sure that our trade unions are democratic and work for everyone.
Kirsten Oswald (East Renfrewshire) (SNP)
Does the Minister agree that strong trade unions are vital if we are to ensure that people receive fair pay for the work they do? What steps is she taking to work with Scotland’s trade unions to promote the living wage in Scotland?
Anna Soubry
As I hope I have made clear, I agree with the hon. Lady. Trade unions play an important part in economic success, or at least they should do. The difficulty is that too many trade unions do not represent their members and do not engage and work with their members. We therefore need to make sure that we have modern legislation for our trade unions so that they do not hold people, in effect, to ransom.
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
5. What steps he is taking to tackle security issues on the Stranraer to Larne ferry route.
The Secretary of State for Scotland (David Mundell)
Home Office Immigration Enforcement in Northern Ireland and Police Scotland work together closely to intercept and share information about illegal immigrants travelling between the west of Scotland and the Northern Ireland ports.
Meg Hillier
Of the people stopped on that route—they are a small percentage of the total number of travellers—a very high number are illegal migrants or people who mean to do harm to our country and seek backdoor routes between the Republic and mainland Britain. What conversations has the Secretary of State had with Police Scotland to ensure that the resources are there to catch those people?
David Mundell
I have been heavily involved in this issue and I was very disappointed that the Scottish Government chose to dissolve Dumfries and Galloway police force, which had considerable expertise in that area. Police Scotland has set up a ports unit, which is seeking to deal with these issues, but I will continue to pursue the hon. Lady’s concerns with the Scottish Government.
Richard Arkless (Dumfries and Galloway) (SNP)
This is yet another example of the Scottish Government having to step in and stump up following further UK Government cuts. Given the security concerns raised by the hon. Member for Hackney South and Shoreditch (Meg Hillier) and the further cuts proposed to Scotland’s budget, will the Secretary of State commit to revisit his Government’s decision to withdraw border agency staff from the port of Stranraer in 2010?
David Mundell
I particularly welcome the hon. Gentleman to his place because he is my neighbouring MP, but I do not share his analysis. The most unhelpful contribution to policing in Stranraer and surrounding areas was the Scottish Government’s decision to get rid of Dumfries and Galloway police force, against the wishes of local people.
Ian Paisley (North Antrim) (DUP)
What efforts is the Secretary of State making to ensure that the illicit trade in cigarettes, other contraband and oils through these ports is tackled effectively, so that the criminals behind it can be stamped out once and for all?
David Mundell
I am happy to confirm that I will raise those specific issues in my next discussions with the Chief Constable of Police Scotland.
Kevin Brennan (Cardiff West) (Lab)
6. What assessment he has made of the potential effect of full fiscal autonomy for Scotland on the level of tax receipts in Scotland.
The Secretary of State for Scotland (David Mundell)
In March, Her Majesty’s Treasury published an analysis that estimated that funding available to Scotland under full fiscal autonomy would be £7.7 billion lower in 2015-16 compared with the current arrangements. The assessment made by the Institute for Fiscal Studies shows that deficit reaching £9.7 billion in 2019-20.
Kevin Brennan
The Secretary of State and his Tory friends have an ideological fixation with austerity, but is he surprised that the nationalist ideology of a self-identifying left-wing party such as the Scottish National party leads it to advocate full fiscal autonomy, which would lead not just to austerity but to “austerity-max”?
David Mundell
I agree with part of the hon. Gentleman’s analysis, but he will be aware that it is now not clear what the SNP is asking for. I welcome the fact that it will be able to table amendments in relation to full fiscal autonomy during the Committee stage of the Scotland Bill. My suspicion, however, is that it is asking for something it does not really want, and that it will complain when it does not get it.
Michael Fabricant (Lichfield) (Con)
Does my right hon. Friend agree that to reduce poverty in Scotland and indeed in the rest of the UK we need full employment? Would not the worse thing be to have an SNP Government in the United Kingdom with no understanding of fiscal responsibility, which would result in mass unemployment and mass poverty?
David Mundell
I am not clear whether my hon. Friend is suggesting that the SNP take over the Government of the UK, although that may be one of Miss Sturgeon’s aspirations—we do not know. It is for the people of Scotland to choose their own Government, but the SNP’s policies are clearly now for higher taxation and we need to know what that tax will be.
Stewart Hosie (Dundee East) (SNP)
The Scottish Secretary is absolutely wrong about full fiscal autonomy. It does not lead to a reduction in tax yield. Surely he would agree that if we were to use the flexibility in the tax code to grow the economy and increase tax yield, that would be a good thing.
David Mundell
I agree with two of the hon. Gentleman’s colleagues from Edinburgh, one of whom has described full fiscal autonomy as a disaster and the other of whom has described it as suicidal.
Ian Murray (Edinburgh South) (Lab)
Given that the respected Institute for Fiscal Studies has estimated that full fiscal autonomy would result in a near £10 billion black hole in Scotland’s finances, and that, as the Secretary of State said, the Scottish National party Member for Edinburgh East (Tommy Sheppard) has called it a disaster—perhaps we should lock him in the gents—is it not clear that it would not lead to a stronger Scotland or promote fairness and social justice? However, given the Scottish Government’s reluctance to accept the impartial IFS’s figures, will the Secretary of State back Labour’s amendment to the Scotland Bill to provide a full and independent report on the implications of full fiscal autonomy?
David Mundell
If we have any votes in the House on full fiscal autonomy, we may have to ensure that the toilets are enlarged, because I suspect all SNP Members will want to lock themselves in so that they can absent themselves from any decision.
Kevin Barron (Rother Valley) (Lab)
7. What assessment he has made of the potential effect on families in Scotland of the Government’s policy on child benefit.
The Secretary of State for Scotland (David Mundell)
Child benefit will continue to provide essential help for low-income families, and the latest statistics show that it has benefited more than 966,000 families and children in Scotland. We are also supporting Scottish families by cutting tax for nearly 2.3 million people, taking 261,000 people out of paying income tax altogether. Some 210,000 families in Scotland will also benefit by up to £6,000 a year from tax-free childcare.
Kevin Barron
On a day when the Chancellor is saying that he will take action on how this Government and future Governments run deficits, will the Secretary of State tell us that he will protect the worth of child benefit in Scotland for the lifetime of this Parliament?
David Mundell
We have made our position clear—we are keeping child benefit.
Angela Crawley (Lanark and Hamilton East) (SNP)
Will the Secretary of State acknowledge that the people most likely to be impacted by the changes to the child benefit policy are the most vulnerable individuals in society? Those people are also the most likely to be affected by the changes made in the welfare reforms implemented by this Government.
David Mundell
I could not have been clearer—we are retaining child benefit and keeping to the promises made in the election campaign. We are also devolving significant responsibility for welfare to the Scottish Parliament, so that if it wishes to make alternative decisions, it will have the capacity to do so, provided that it can pay for them.
Patrick Grady (Glasgow North) (SNP)
8. What discussions he plans to have with the Chancellor of the Exchequer on funding for the Scottish Government and the next Budget.
The Secretary of State for Scotland (David Mundell)
On Monday, the Chancellor of the Exchequer and the Chief Secretary to the Treasury met Scotland’s Deputy First Minister to discuss the new fiscal framework. While the Barnett formula will continue as promised, the Scottish Government will be less reliant on the block grant.
Patrick Grady
The SNP manifesto proposed an alternative to austerity—0.5% public spending increases a year. Does the Secretary of State accept that that means that his Government’s cuts are ideological, not inevitable, and that it is in fact possible for the Government to increase public spending by £93 billion a year to invest in the economy and public services?
David Mundell
What is now clear is that the SNP wants to put up taxes in Scotland. Its next Scottish Parliament manifesto needs to tell the people of Scotland by how much.
Nick Smith (Blaenau Gwent) (Lab)
9. How many companies in Scotland have been prosecuted for non-compliance with the national minimum wage since 2010.
The Minister for Small Business, Industry and Enterprise (Anna Soubry)
So far no companies have been prosecuted, but we have named the 14 that have not complied with the law. We feel that is the right way to go about things, but if there are serious cases, they are referred to the Crown Prosecution Service in England or the procurator fiscal in Scotland.
Nick Smith
That is just not good enough. Labour wants to see the minimum wage protected, increased and properly enforced, so why not give local authorities the powers to tackle bad employers and enforce the minimum wage properly?
Anna Soubry
I have to disabuse the hon. Gentleman of a few misconceptions. We are actually following guidance that his party’s Government introduced in 2008, and it was good guidance. In very serious cases, companies should be referred onward for prosecution, but those decisions are ultimately left to the CPS or, in the case of Scotland, to the procurator fiscal.
Margaret Ferrier (Rutherglen and Hamilton West) (SNP)
I congratulate the Secretary of State on his position. Everyone across the Chamber will agree that it is vital to enforce the minimum wage, but does the Secretary of State agree that we need to go further to deliver a fair wage for thousands of our fellow citizens? Will he now confirm the answer he failed to give to my hon. Friend the Member for Moray (Angus Robertson): when will his Department become an accredited wage employer?
Anna Soubry
I remind the hon. Lady that the minimum wage will be going up in October. It is up to employers to make sure they pay the wages they seek and want to. It is also important to remember that as a result of the policies of this Government, we have reduced the amount of taxation the low paid are paying. That is the right thing to do. Take low-paid people out of taxation—a Conservative policy.
James Berry (Kingston and Surbiton) (Con)
Q1. If he will list his official engagements for Wednesday 10 June.
The Prime Minister (Mr David Cameron)
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.
James Berry
The great British jobs boom has earned the Prime Minister and the Chancellor the admiration of leaders the world over and the support of my constituents. Does my right hon. Friend agree that businesses in Kingston and Surbiton could create even more jobs if we had better train services and, particularly, Crossrail 2?
The Prime Minister
First of all, let me start by welcoming my hon. Friend after his excellent election result. He is right to say that we have had something of a jobs boost in this country, with more than 2 million more people in work. In his constituency, for example, the claimant count has fallen by 48% since 2010. Our manifesto made it clear that we will push forward with plans for Crossrail 2 and we are working with Transport for London on a detailed business case. Let me take this opportunity to praise everyone who has been involved in Crossrail 1. The Secretary of State for Transport and I were in those tunnels a week ago. The tunnelling phase is complete. It runs for 26 miles across London. It is a feat of great engineering and it is going to be brilliant for our economy.
Ms Harriet Harman (Camberwell and Peckham) (Lab)
Last night, the House agreed that there should be an EU referendum, but it has to be done in the right way and it has to be fair. First, on the issue of who can vote, why will the Prime Minister not let 16 and 17-year-olds vote? This is about the future of our country. They did in the Scottish referendum. It is their future too.
The Prime Minister
First, may I thank the right hon. and learned Lady and all those Labour MPs who joined us in the Division Lobbies last night? After five years of opposing a referendum, to watch them all trooping through was like seeing the biggest mass conversion since that Chinese general baptised his troops with a hosepipe. It was very impressive.
On 16 and 17-year-olds, I believe this House should vote on that issue. The Conservative manifesto is clear and my position is clear: I think we should stick with the current franchise at 18, but the House of Commons can vote.
Ms Harman
On the right hon. Gentleman’s initial response to my question, may I just say that the right hon. Gentleman won the election and he is the Prime Minister, so he does not need to do ranting and sneering and gloating. He can just answer the question. Frankly, he should show a bit more class.
The right hon. Gentleman and I both want to see a yes vote, but it is essential that the referendum is fair and seen to be fair, so why are they changing the law to exempt the Government from the rules which are there to ensure the Government do not inappropriately use public funds or the government machine in the short campaign. Will he think again on this?
The Prime Minister
The right hon. and learned Lady is right that it was an excellent debate last night. A lot of important issues were raised, and they can be discussed in Committee. Let me answer directly this issue of purdah, because all the concerns raised can be addressed. There are two reasons for looking at this carefully and taking the proposals we put forward. First, as the Europe Minister said, because the European issue is so pervasive, I do not want a situation where, in the four weeks before a referendum, Ministers cannot talk about the European budget, make statements about European Court judgments, respond to European Councils and all the rest of it. That seems a very real danger, as the Europe Minister set out last night.
The second issue is a bigger one. When the negotiation is complete and the Government have taken a clear view, I do not want us to be neutral on this issue; I want us to speak clearly and frankly. In the last few weeks before the Scottish referendum, the UK Government were often being advised that they could not take a view on the future of the UK. I think that was a ridiculous situation, which is why we have proposed changes to the purdah rules. However, the right hon. and learned Lady raises an important question, and it will be debated in the House, but I have set out the position as I see it.
Ms Harman
The problem is that it is not a change in the rules, but a blanket exemption. We must have a legal framework in the Bill. We cannot rely on ministerial restraint.
The Electoral Commission said that the referendum should not be on the same day as any other election, and we strongly agree. This is an important constitutional issue that should be considered on its own. Will the Prime Minister guarantee a separate voting day for the referendum?
The Prime Minister
Again, the right hon. and learned Lady raises an important issue of process and procedure that should be debated and discussed in the House. [Interruption.] I will tell you exactly my view in two seconds. My view is that the timing of the referendum should be determined by the timing of the renegotiation—when the renegotiation is complete, we set a date for the referendum. I do not think it should be determined by the timing of other elections. For instance, it was possible to have the AV referendum and other elections on the same day. I think people are capable of making two decisions, but, as I say, the timing of the referendum should be determined by the timing of the renegotiation; that is the clear principle.
Ms Harman
Apropos the negotiations, we are talking about whether the referendum should take place on the same day as other elections. The Prime Minister mentioned the AV referendum. We agree with the Electoral Commission that it was not right that it was held on the same day as other elections, but we will have the opportunity to consider these issues further in the G7 statement coming next.
I would like to turn to an issue important to many families across the country. Before the election, the Prime Minister promised that his tax-free childcare policy would be launched this autumn. Is he on track to meet that promise?
The Prime Minister
It is an important principle we are introducing: if families spend up to £10,000, they should be able to get £2,000 back. This is a Government for working people that want to help people with the cost of childcare. Not only are we doing that—the Chancellor will set out the timing of the introduction in his Budget—but we are doubling to 30 hours the number of hours people will get if they have three and four-year-olds. The Government are determined to act for working people.
Ms Harman
It does not help working people to make promises and then not meet them.
Let me ask the Prime Minister about another election promise. We know that childcare providers already have to increase their fees to parents who pay for additional hours above the 15 hours they get free. Given that the free entitlement is going up to 30 hours, how can he guarantee that families will genuinely benefit and will not just end up being hit by increased fees elsewhere?
The Prime Minister
First, we will have a review of the fees being paid by the Government to childcare providers, because I want this to be quality childcare. Secondly, there is the increase from 15 to 30 hours, which will be of real benefit to working families. Thirdly, we have this new tax relief coming in, so if someone spends up to £10,000, they will get £2,000 back. That means that families under this Government will have far greater choice and resources on childcare. The right hon. and learned Lady said the other day that a
“greater number of people…feel relieved that we are not in government.”
I suspect that those parents will feel the same way.
Ms Harman
He just cannot help but gloat, can he? He can go right ahead and gloat, but why can he not just answer the question about childcare? Perhaps we could have an answer to the next question rather than a gloating session.
I will try again. We know that grandparents often help out. Most parents say they just could not manage without the grandparents, but increasingly those grandparents are not retired but are themselves working. Will the Prime Minister agree to look at how we can help grandparents get flexibility at work by allowing them to share parental leave?
The Prime Minister
I am certainly happy to look at that because the right to request flexible working has been championed by this Government. I am sorry if the right hon. and learned Lady thinks I am gloating. It must be the first time someone has ever been accused of gloating while quoting the Leader of the Opposition. For instance, she said the other day:
“People tend to like a leader who they feel is economically competent”.
I think she has been talking a lot of sense, and I shall be quoting her as often as I possibly can.
Mrs Anne Main (St Albans) (Con)
I was pleased to hear the announcement in our manifesto that there would be a review of business rates. This is something that came across loud and clear over the election period in St Albans. My businesses want assistance with this. Can I ask the Prime Minister, through his good offices, to get the Chancellor to get a move on, as this is so important for good business across the country?
The Prime Minister
The Chancellor will have heard my hon. Friend’s instructions loud and clear. We do want to get on with this review of business rates. Like all Members, my hon. Friend and I will have listened to the complaints of high street stores that sometimes feel they face unfair competition from internet retailers who do not face the same sort of business rates. Let me give this warning, however. Business rates raise a large amount of revenue—revenue that is necessary—and it will not be possible to come up with a review that will satisfy everybody.
Angus Robertson (Moray) (SNP)
The UK remains in the top 10 most unequal societies in the world. Helping people on low incomes receive the living wage can be transformational for them and their families. Will the Prime Minister take the opportunity to praise all employers who deliver the living wage?
The Prime Minister
I am very happy to praise all those employers who deliver the living wage. That has long been the Conservative position and it is set out in the manifesto. I am proud to say as Prime Minister, and I hope this is not gloating, that No. 10 is a minimum wage—a living wage—employer, too.
Mr Speaker
I should point out that this House is a living wage employer, as well.
Angus Robertson
However, the Scottish Government are the only Government in the UK as a whole that are an accredited living wage employer. Will the Prime Minister tell us when he will ensure that all UK Government Departments, all agencies and all employees will receive the living wage?
The Prime Minister
We want to make progress. The Scottish Government obviously have the advantages of the additional funding they have been getting under this Government. I notice that consensus in the Scottish National party has rather broken down over full fiscal autonomy. Of course, if they got full fiscal autonomy, they would probably not be able to afford to be a living wage employer. I have been following these things closely. The new hon. Member for East Lothian (George Kerevan) has called the policy “economic suicide”, while the new hon. Member for Edinburgh East (Tommy Sheppard) has called full fiscal autonomy “a disaster”. It seems that the SNP’s new approach is to demand something they do not want and then complain when they do not get it.
Mike Freer (Finchley and Golders Green) (Con)
Q2. A far-right neo-Nazi group is planning to stage a demonstration in Golders Green, an area with a large Jewish population, on Saturday 4 July. Will my right hon. Friend join me in calling on the police to use all their public order powers to combat this anti-Semitic demonstration?
The Prime Minister
I think that my hon. Friend speaks for the whole House. I can tell him that the Home Secretary recently wrote to the Metropolitan Police Commissioner about that specific demonstration, and has said that when any criminal offences are committed and when individuals have demonstrated anti-Semitic hostility, they should face the full force of the law. We do have freedom of speech and freedom of assembly in our country, but people should not feel free to extend those freedoms to harassment or threatening behaviour. That is not permitted, and it should be prosecuted.
Naz Shah (Bradford West) (Lab)
Q3. As a new Member of Parliament, I am still wondering whether the Prime Minister ever actually answers a question during Question Time, but if he does, can he explain why my city of Bradford—which was “the” northern powerhouse—continues to be neglected in his regional plan?
The Prime Minister
First, on behalf of the whole House, I welcome the hon. Lady to her place. She replaces someone who had, I think, the unique distinction of always speaking with immense power, but always being completely wrong. I am sure that she will take a different approach.
What I will say to the hon. Lady about Bradford is that it should be part of the northern powerhouse, because the concept means linking the great cities of the north of England and making the most of them. As for Bradford’s being neglected, I would say quite the opposite. The spending power per dwelling of the hon. Lady’s local authority is nearly £2,300, which is nearly £300 more than the average for England.
Nigel Huddleston (Mid Worcestershire) (Con)
Q4. The long-term economic plan—[Hon. Members: “Hear, hear!”]—is working in Worcestershire, which has the third fastest economic growth rate in England. Moreover, unemployment in my constituency has fallen by 62% since 2010. Does the Prime Minister agree that the further redoubling of the Cotswold line would provide additional economic benefits for my constituents, and for all who live along the route?
The Prime Minister
I congratulate my hon. Friend on winning his constituency. He has got off to a tremendous start by not only mentioning the long-term economic plan, but mentioning a railway line that goes straight through the middle of my constituency. I want to see the further redoubling of that line, so he is already my new best friend.
As my hon. Friend will know, we plan to operate intercity express trains between London and Worcester from 2017 onwards, and new and updated trains are planned for every part of the Great Western franchise. However, as my hon. Friend says, further investment in the redoubling of the railway between Oxford and Worcester really is necessary if we are to deliver the extra and more reliable services that both his constituents and mine would like.
Mark Durkan (Foyle) (SDLP)
Q5. As a Back Bencher, the Prime Minister campaigned for group B strep awareness. I am sure that he is aware of Northwick Park hospital’s highly successful programme of universal GBS screening, which proves the very case that he used to make. Will he now encourage Ministers to roll out GBS-specific testing as a routine offer to all pregnant women in all our health services?
The Prime Minister
May I say how grateful I am to the hon. Gentleman for raising the issue? Two of my constituents, Craig and Alison Richards, came to my surgery and raised it with me, and that is what caused me to become interested in it in the first place.
We have made some big breakthroughs. The national health service is doing much more screening and taking much more action to help those who potentially have the infection, although there are difficulties with national programmes because of the whole issue of anti-microbial resistance and the use of antibiotics. However, I am happy to take this opportunity to look into what has been achieved so far and what more can be done, and then write to the hon. Gentleman.
Johnny Mercer (Plymouth, Moor View) (Con)
In my constituency, where the average wage is far lower than the national average, cutting the taxes of the lowest paid and helping them to stand on their own two feet is the most effective poverty-tackling measure there is. Will the Prime Minister explain how the Conservatives will reward hard work and benefit those who earn the minimum wage, not only in Plymouth but throughout the country?
The Prime Minister
First, may I welcome my hon. Friend to this place and praise him for his maiden speech which moved all those who heard it or have subsequently read it? He is absolutely right that the best way to tackle poverty is to get people into work, then make sure that there is a decent minimum wage that rises over time, and then cut people’s taxes by taking those earning minimum wage out of income tax. Our plan to raise the personal allowance to £12,500 will make a real difference and I want to see progress on the minimum wage going on at the same time as that, but all the while we have to recognise that the absolute foundation is a growing economy that is producing jobs. Getting into work is the greatest way to combat poverty.
Dr Alan Whitehead (Southampton, Test) (Lab)
Q6. Can the Prime Minister reassure me that press reports that he is going to cut funding support to household energy efficiency programmes are wrong, and that instead he is committed to maintaining support for programmes to ensure that the most vulnerable in our society have warm homes to live in?
The Prime Minister
We made some very big progress in the last Parliament with home insulation programmes and support for solar panels. There are now almost 1 million homes in the UK with solar panels. We want to carry on with those programmes and make sure there is value for money.
I hope it will not be seen as gloating to welcome the hon. Gentleman back, because he is quite a rare bird: a Labour MP in the south of England.
Andrea Jenkyns (Morley and Outwood) (Con)
Q7. In my constituency of Morley and Outwood one issue that is constantly raised on the doorstep is economic migration from within the EU. The Government have already taken steps and clear action to reduce incentives that draw migrants from within the European Union, but what further steps are being taken to tackle economic migration from outside the EU?
The Prime Minister
I welcome my hon. Friend to her place. I have to say that her election result was one I was dreaming of, and am very grateful for. She is absolutely right to raise this issue. In the past it has been too easy for some businesses to bring in workers from overseas rather than to take the long-term decision to train our workforce here at home. We need to do more to change that, which means reducing the demand for migrant labour, and that is part of our plan. So I can tell the House today that the Home Secretary has written to the Migration Advisory Committee asking it to report back on how to significantly reduce work-related migration from outside Europe. It is going to advise on restricting our work visas to genuine skills shortages and specialists. It is going to look at putting a time limit on how long sectors can claim to have a skills shortage, because frankly they should be dealing with that. We are going to look at a new skills levy on businesses who recruit foreign workers so that we can boost the funding to UK apprenticeships, and we are also going to look at raising salary thresholds to stop businesses using foreign workers to undercut wages. All these steps, combined with the measures we are taking within the European Union, can help bring migration under control, but also, more to the point, make sure that hard-working British people who get the skills and training can find the jobs that will help them build a better life.
Mary Glindon (North Tyneside) (Lab)
Q8. Six young boys with the devastating disease of muscular dystrophy will be in Downing Street this afternoon, supported by Muscular Dystrophy UK, to make a plea to the Prime Minister to help them access the Duchenne drug Translarna that they need now to stop them losing their mobility. Will the Prime Minister make time to see them and will he tell the House that these children can expect the positive answer they so desperately need now?
The Prime Minister
I thank the hon. Lady for raising this issue. Muscular dystrophy is a terrible disease and I hugely admire the courage shown by the sufferers and their families. Unfortunately, I will not be able to hold that meeting this afternoon because I have to go from the statement after Prime Minister’s questions straight to an EU summit in Brussels. I do remember meeting Archie Hill, who is one of the group, back in January. He is an amazing young boy—incredibly brave. The situation is that NHS England has now completed a consultation on how it prioritises investment in these specialised services, including drugs for rare conditions. It closed at the end of April and a decision can be expected in the near future. I recognise how vital it is to give those affected and their families a decision as soon as possible.
Karl MᶜCartney (Lincoln) (Con)
Q9. Thank you colleagues, and thank you Mr Speaker. On Monday, I attended the formal opening of the Magna Carta Centre in Lincoln—a magnificent vault built in our city’s beautiful castle to showcase Lincoln’s original Magna Carta as it celebrates its 800th year. Having visited Lincoln on various occasions, would the Prime Minister like to join me in recommending that other Members and their constituents should visit the city to see for themselves our original Magna Carta and our majestic cathedral, as well as Lincoln’s myriad other attractions, especially as we move towards a new British Bill of Rights?
The Prime Minister
My hon. Friend is absolutely right to take this opportunity—in this, the 800th anniversary year of the signing of Magna Carta—to advertise the fact that there is an original copy in the great city of Lincoln, and that people can go and see that and all the other advantages that Lincoln has to offer. But this is not just a point about British history. There are so many countries and peoples around the world that do not have the rule of law and do not have protections against arbitrary arrest, and that document, which was signed 800 years ago, is not just important in Britain; it is important that we promote its values around the world.
Grahame M. Morris (Easington) (Lab)
Q10. Most working people aspire to decent, sustainable jobs—indeed, thousands of my constituents work at Nissan or in the automotive supply chain in east Durham—so when will the Prime Minister publish the Treasury’s assessment of the cost to the British economy of withdrawal from the EU?
The Prime Minister
First, let me praise the hon. Gentleman’s many hard-working constituents who work in the Nissan factory in the north-east. Nissan in the north-east is now producing more cars than the whole of the Italian car industry. It is a great example of the manufacturing renewal that is taking place in this country. I want the widest possible debate about Britain’s future in Europe and I would encourage all organisations to bring forward ideas, facts and figures so that this debate can be formed, but above all let us remember that this is not going to be a decision made by politicians; it is going to be a decision made by the British people.
Martin Vickers (Cleethorpes) (Con)
If northern Lincolnshire is to obtain maximum benefit from the northern powerhouse initiative, further improvements to transport connections will be required. One such improvement would be a direct rail service to London King’s Cross from the Grimsby, Cleethorpes and Scunthorpe area. Alliance Rail has submitted an application to the rail regulator, and it has been with the regulator for more than a year. Will my right hon. Friend do all he can to ensure that an early decision is made?
The Prime Minister
My hon. Friend is absolutely right to raise the importance of direct connectivity between his constituency and London. We are investing at least £6.4 billion in Yorkshire and northern Lincolnshire in this Parliament for that very reason, and I can reassure him that we are listening. Only late last year, the Transport Secretary announced that we would be retaining the direct connection between Cleethorpes and Manchester airport, which is something that my hon. Friend has been campaigning for, and I will look very closely at what he has said today.
Mr Douglas Carswell (Clacton) (UKIP)
Q11. At the time of the Bloomberg speech, the Prime Minister promised that he would seek the repatriation of power from Brussels, saying that “power must be able to flow back to Member States”. He specifically promised that social and employment law would be returned to Britain. Why is he not even asking for this any more?
The Prime Minister
First, I welcome the hon. Gentleman back to this place. He has made some history because, as a party of one, he has managed to have a Back-Bench rebellion, which is something to be admired. What I have set out in terms of the renegotiation is a whole series of things that need to change: making sure we deal with the problem of ever-closer union; making sure we deal with the issue of competitiveness, which, yes, does impinge on some of the issues, under what was called the social chapter, that have never been acceptable to the United Kingdom; and making sure that we have a better balance and proper fairness between those countries that are in the euro and those that are outside it—the Chancellor will be setting out more detail on that this evening. All these areas in our negotiation, and more, are very important.
Philip Davies (Shipley) (Con)
We have just heard from the hon. Member for Easington (Grahame M. Morris) the ridiculous scaremongering, which we are getting used to, that if we left the EU we would end free trade with the EU. Will the Prime Minister confirm that last year the UK had a £56 billion trade deficit with the European Union? Will he also tell us whether, in any of his discussions with Angela Merkel, she has indicated that if we were to leave the EU, she would want to stop trading BMWs, Mercedes, Volkswagens and Audis free of tariff into the UK?
The Prime Minister
My hon. Friend makes his case with his characteristic vigour and clarity. The only issue that I would add is that, of course, Britain’s relationship with Europe is not just about a trading relationship; it is about having a say over what the rules of the single market actually are. It is that that we are going to have to discuss and think about over these coming months before the European referendum—the difference between a trading relationship and actually having a say over the way a market works.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
Q12. Under the Prime Minister, British productivity has plummeted. It is 30% behind Germany, the US and France—the widest gap since 1992 and another Tory Government. But in the north-east, thanks to our manufacturing and technical prowess, we have the highest productivity growth in the country. Is it not time that he gave us the powers that we need to build an economy that matches our values, without a Boris—I mean, a mayor—attached?
The Prime Minister
First of all, the hon. Lady is absolutely right to raise this issue. There is a huge challenge in terms of raising productivity and the productive potential of the United Kingdom. I would be the first to say that we have had the success of getting 2 million more people in work and we have had the success of paying down half the deficit and getting the economy growing. But the challenge for the years ahead is to increase levels of productivity in Britain. How are we going to do that? I would argue that we will do that by reforming planning, by encouraging entrepreneurship, by making sure we invest in success, by investing in science—these are the things that we have been doing as part of a long-term economic plan, mostly opposed by the Labour party.
Fiona Bruce (Congleton) (Con)
Any move to legalise assisted suicide is viewed with the utmost concern by disability groups and others, who fear that it could put pressure on the vulnerable to make decisions that are not in their best interests. Will the Prime Minister inform the House of his view on this issue?
The Prime Minister
On this issue I very much agree with my hon. Friend, which is that I do not support the assisted dying proposals that have come out of the other place. I do not support euthanasia. I know that there are imperfections and problems with the current law, but I think that these can be dealt with sensitively and sensibly without having a new law that actually brings in euthanasia. As she says, I think the problem is the pressure that is then put on frail elderly people to take a decision that they might not want to go ahead with.
Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)
Q13. The Prime Minister will be aware of Tata Steel’s decision to close its British Steel pension scheme. This will have a devastating impact on steelworkers and their families. Can I urge the Prime Minister again to demand that Tata get back around the negotiating table and re-engage in meaningful consultation with the trade unions, and to stop Tata from playing fast and loose with its own employees’ pensions?
The Prime Minister
Of course I hope that the parties will return to the negotiating table to find a solution as quickly as possibly, but ultimately this is a matter for Tata Steel and for the trade unions, and I would urge them to do as I have said.
Rebecca Pow (Taunton Deane) (Con)
We need a country where every city, town, village and region benefits from the growing economy. Will the Prime Minister kindly explain how the measures in this Queen’s Speech will bring that about, particularly in relation to my area of the south-west and even more particularly to Taunton Deane, which I would like to make the gateway to the south-west?
The Prime Minister
What I would say to my hon. Friend, after congratulating her on her magnificent election victory, is that there are some very important infrastructure proposals that need to go ahead—for instance, the A358, which, during the election campaign, the Labour party pledged to cancel. We must make sure that that expressway to the south-west is built, including the tunnel under Stonehenge, and, crucially for Taunton and the whole of the south-west, we must make sure that we deliver on our promises on high-speed broadband. For businesses, that is as important as being connected to the road or rail network, and we really have to make sure that we get to those final businesses and homes that want to see high-speed broadband.
Karl Turner (Kingston upon Hull East) (Lab)
Q14. When is the Prime Minister handing the baton to Boris?
The Prime Minister
We benefit hugely from having Boris’s wisdom now back in this House. The baton that I am interested in seeing is the moment at which Boris passes the baton to another Conservative Mayor of London.
Paul Scully (Sutton and Cheam) (Con)
Manor Park primary school in Sutton has just received a well deserved “outstanding” rating from Ofsted, but can my right hon. Friend tell me how the new education Bill will benefit and improve all schools?
The Prime Minister
Where schools get to outstanding we should, first, be singling them out and praising them, because we want to see many more children taught in good or outstanding schools. Where we need to focus is on schools that are either failing or coasting. The education Bill in the Gracious Speech will make sure that we intervene more quickly, because if you have children at a state school, as I do, one extra term in a failing school is a term that is wasted. We should not let bureaucracy get in the way of taking over failing schools and turning them around.
Peter Dowd (Bootle) (Lab)
Q15. Last week, the High Court ruled that severe delays in assessing disabled people for benefits were unlawful. Given that, will the Prime Minister personally take charge to ensure that these distressing delays do not happen again?
The Prime Minister
First, let me welcome the hon. Gentleman to this place. He is absolutely right to raise this issue. Some of the delays have been unacceptably long for people getting their new benefits, particularly when we are transitioning from disability living allowance to personal independence payments. Those delays are coming down, and I give him my assurance that we will keep on this and make sure that the delays come down still further.