Oral Answers to Questions
Alison McGovern Excerpts(10 years, 6 months ago)
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Mr Gauke
Pupils should be in school during term time, and we believe that needs to be properly enforced. We have said that schools should have greater flexibility in setting their own term dates, which might help address the matter. I am happy to meet my hon. Friend to discuss this, but I know that he has already done so with Education Ministers.
Alison McGovern (Wirral South) (Lab)
Let me bring the Minister back to the important issue of business rates, because we have a crisis on our hands. There are reports that the valuation office is now having to deal with 500 appeals a day. Will he just throw businesses a rope? They do not believe that the Government will change a thing, so will he offer them an interim report on their review in September?
Mr Gauke
We are pressing ahead with various proposals to improve the administration of business rates, but I remind the House that it was the previous Government who brought in measures such as the rebate for retail and the 2% cap, so we have introduced measures to help on business rates and we are introducing measures to improve their administration as well.
Budget Resolutions and Economic Situation
Alison McGovern Excerpts(10 years, 7 months ago)
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Alison McGovern (Wirral South) (Lab)
Before I begin, I would like to say to the hon. Members for Paisley and Renfrewshire North (Gavin Newlands), for Erewash (Maggie Throup), for Southampton, Itchen (Royston Smith), for Chippenham (Michelle Donelan) and for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald) that they have each made great first contributions to this place. It was a pleasure to hear them. My hon. Friend the Member for Wirral West (Margaret Greenwood) also made her first contribution today. She will find that representing the brilliant, funny, kind and generous people of the Wirral is a sincere pleasure and a great honour. She is just like them and we are very proud to have her here.
The Budget needed to do two things: to address the deficit that our country still faces, and to make work pay. I shall address my concluding remarks on this debate to those two principles. I am afraid that on both those issues—on the deficit and on making work pay—the Chancellor has given the British people a con.
On the first of those principles, I remember being on the Back Benches in 2010, knowing that Alistair Darling’s Budget of March that year had seen the economy grow. This Chancellor argued that the emergency Budget in June that year was necessary because the deficit had to be closed—not to be reduced by half by the end of that Parliament, as it would have been under the existing plans, but to be fully closed by 2015. However, as the hon. Member for Taunton Deane (Rebecca Pow) said, the deficit is still too high. I would invite and encourage her to get in touch with the Chancellor of the Exchequer to remind him of the promises he made to the British people and to ask him this simple question: what went wrong? What happened? Even after five years of over-promising and under-delivering, the Chancellor has done it yet again.
In fact, as the OBR says on page 15 of the “Economic and fiscal outlook”,
“the budget balance improves…less quickly”
than the Government forecasted in March. If for whatever unfortunate reason for our country the Chancellor were no longer in post in 2019, one wonders whether he would have had the unique honour of presiding only over deficits for each year in which he was Chancellor of the Exchequer and never over a surplus. That is now looking to be a distinct possibility. I wonder what the Chancellor would have said in 2010 if he had known that that was going to be the case. Could he have predicted, I wonder, his failure over his promises?
Secondly, on making work pay, I was 17 when the national minimum wage came in and I was in my second-ever job. A year earlier, at 16, I had my first job and I well recall the payslip; I was paid about £2 an hour. I worked alongside adults—over 18—who were paid the same amount. When the minimum wage came in, it was paid at £3.60 an hour. That national minimum wage had a profound impact on my working life and on the working lives of the people around me.
Last week’s Budget was a kind of back-handed compliment to the Labour Members who introduced the national minimum wage back then. They were so persuasive that it seems they persuaded even the Tory party. It was a compliment to the living wage campaigners who seem to have been so persuasive that they persuaded even the Chancellor, and to the trade unions who seem to have been so persuasive on the need for a pay rise that they persuaded the Chancellor even while the Government were still hell-bent on attacking them.
We should ask ourselves this question. Does the Budget really make work pay? Emphatically not! Tax credits have profoundly improved the ability for work to pay, especially for families that have the extra cost of having children. The damage done to tax credits will see families up and down our country lose out. The Chancellor calls his new “national living wage” just that. He uses the language of a “living wage” all the time while not living up to that promise. Of course an increase in the national minimum wage should be welcomed and is good, but it is not, as Members have mentioned, a living wage as normally understood.
Let us look at the detail of whether this Budget makes work pay. First, as part of its analysis, the Treasury has often produced a distributional outlook showing the impact of Budget measures on different groups—who gets what by decile of income. Not so this time; the Treasury chose not to do it. It is too complicated, it said. Thankfully, however, the IFS did just that, and we have all seen the graph of doom it produced, demonstrating unequivocally that those with the least lose the most. That is the truth of this Budget.
Let us turn to table 1.8 on page 40 of the Red Book to see what the Treasury says about the impact of its changes on families. It gives examples that it describes as “illustrative”, all of which involve people who are working for 35 hours a week, including a lone parent with one child. I do not know many lone parents in my constituency who are easily able to work for 35 hours a week. Indeed, many are on contracts involving fewer hours, and could not rely on being able to work for 35 hours a week even if they wanted to. The examples assume growth in the personal allowance—of which we have seen little evidence—in future years. They also assume wage growth, and we wonder whether that is certain at all. All those examples, which suggest that people will be better off, are accurate if, and only if, we can believe a word that the Chancellor says. I hope I have demonstrated that that is not an assumption that British families can make.
Secondly, we need to make work pay in each and every part of our country. Let us look away from the micro for a second, and turn to the macro. Ultimately, we can improve real wages only by increasing the earnings potential of firms in our economy and the working people within them.
The Chancellor could have taken actions in three areas to meet the so-called productivity challenge—in fact, “productivity” is just a jargonistic term for making work pay—but, unfortunately, he did too little in those three areas, which are childcare, infrastructure and skills. On childcare, he looked again to the Labour party for inspiration after the election, stealing our 25-hours policy—[Laughter.] It has not passed me by that my party lost the election, but even if, at times, the public were not listening, the Chancellor clearly was, because he stole our 25-hours childcare policy. Sadly, however, he has delayed its implementation, offering people no real help now.
On infrastructure, I thought that the Chancellor wanted to rebalance the economy, but he has done nothing of the sort. He has cancelled northern rail electrification, and has offered literally no infrastructure improvements to the north-east of England, the region that most requires assistance at this time.
On skills, the Government’s apprenticeships policy sounds broadly right to me, but when I look at their record, I see that they have increased the number of older workers on apprenticeship schemes that are merely rebadged old training schemes. I encourage newer Conservative Members who believe that their Government have presided over a great apprenticeships record to look at the position a little more closely.
Many people who are already in work need to be helped to acquire better skills. Our country has become world-class at generating low-paid jobs from which too few people ever move on. The CBI, that bastion of socialism, has said that we have a skills crisis that the Budget will not fix. In the care sector, for example, staff often start work on low pay and remain on low pay. We need a much bigger strategy than the one that the Government have presented.
The Chancellor should have set out to do two things. He should have addressed his own failure on the deficit and reduced our stock of debt as he promised that he would, and he should have made work pay for ordinary British people and given them a real chance to get on. In fact, the Chancellor has a terrible record on both, and he is trying to con the British people. However, it is worse than that, because the Budget reveals the Chancellor’s real priorities. If we compare and contrast the impact on the north of England with the impact on the south, we see his priorities. If we compare and contrast the steps that he has taken on inheritance tax with those that he has taken on childcare, we see his priorities. Compare and contrast the impact on those with least in our country who lose most, with on those at the top who gain. There we have his priorities. If he thinks we in the Labour party will let him get away with it, he should think again.
Landfill Tax (No. 2)
Alison McGovern Excerpts(10 years, 8 months ago)
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Alison McGovern (Wirral South) (Lab)
As the Minister has helpfully set out, the landfill tax was first introduced in 1996 and, under the last Labour Government, the standard rate was increased on a number of occasions to support the main aim of encouraging more sustainable alternatives for the disposal of waste. Labour therefore supports the principle of the landfill tax and we believe that thorough enforcement rules are an important part of the system. Indeed, according to the House of Commons Library, the proportion of waste sent to landfill had fallen by around a third between the introduction of the tax and 2009, accompanied by a similar increase in recycling, which is surely a good thing if ever there was one. Is the Minister able to provide up-to-date figures on the effectiveness of the landfill tax in reducing waste disposal and in promoting recycling activity?
The tax information and impact note accompanying this measure outlines the impacts to industry but not the corresponding impact on waste disposal, and it appears that the latest publicly available figures are now some years out of date. I am sure that the Minister will want to correct that soon, if he is unable to do so now. The impact note also states that these new measures will have
“minimal operational impact on HMRC”.
It was recently reported that HMRC faces losing a further fifth of its workforce, despite criticism from various quarters, including our very own Public Accounts Committee, that it is not meeting acceptable service standards. We know that HMRC is dealing with around 200 registered landfill site operators and about 450 mechanical treatment plants, which dispose of those “qualifying fines” that the order provides for. What resources do the Government intend to put in place to administer the new scientific testing regime that the Minister mentioned and had such a wonderful time observing for himself? The note also states that the scientific tests will be carried out by “testing laboratories”. Could the Minister clarify that process? What involvement will HMRC have in the testing process, and how will it oversee and resource it?
Oral Answers to Questions
Alison McGovern Excerpts(10 years, 8 months ago)
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Mr Osborne
I welcome my hon. Friend to this House, fighting for the interests of north Wales. He is absolutely right that north Wales is a central part of the northern powerhouse. Of course it is a single economic area, a point made in the lead question. I will take a close look at the rail upgrades he is calling for. It is good to see him championing his constituency so soon after being sent to this place.
Alison McGovern (Wirral South) (Lab)
In the north, we know there can be no power without resources. Will the Chancellor be truthful with northern authorities and tell us how much more he is about to cut them by in this financial year?
Mr Osborne
I welcome the hon. Lady to her new position on the shadow Treasury team. Of course we have to make difficult decisions to balance our budget. If we do not get our public finances in order there will not be any powerhouse in any part of the country, and that is what we are doing. It is disappointing that the Labour party, having worked out that it did not have any economic credibility, has started the new Parliament by opposing all the savings we make. As it happens, in the in-year savings I announced we have protected the local government settlement.
European Union (Finance) Bill
Alison McGovern Excerpts(10 years, 8 months ago)
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Dr Rupa Huq (Ealing Central and Acton) (Lab)
Thank you ever so much, Madam Deputy Speaker. The hon. Member for North East Somerset (Mr Rees-Mogg) is a difficult act to follow, but I will try.
I have been a bit slower than some of my fellow 2015 intake at getting around to making my maiden speech, but as a former university lecturer who is used to speaking in one-hour bursts, and with 43 years in Ealing behind me, I wanted to do justice to the magnificent seat of Ealing Central and Acton. With this being a Thursday, I think I might get the time to do this. All hon. Members have assured us that their constituency is the best one in the world, but in my case it is true. As a lifelong local, I am honoured and humbled to be serving its people in this place.
My immediate predecessor was Angie Bray. Although we did not always see eye to eye politically, we did get on, and it was a mark of her generosity of spirit that when my two sisters—both constituents—and I lost our father last September, she handwrote a note of condolence to me. I wish her well.
Before its boundaries were redrawn, my seat included areas now represented by my hon. Friend the Member for Hammersmith (Andy Slaughter) and my hon. Friend the irrepressible Member for Ealing North (Stephen Pound). I therefore succeed and join Bray, Slaughter and Pound, which sounds like a vaguely pugnacious firm of solicitors. I am happy now to be Huq in the mix.
Previous Conservative MPs for my seat include Kenneth Baker, immortalised for a generation of school users back when teacher training days were known as Baker days. Then came Sir George Young, “the Bicycling Baronet”, from whom I received an 18th birthday card reminding me of my newly enfranchised status and politely suggesting that I might want to vote Conservative. Members will not be surprised to learn that I did not take his advice.
I never imagined in those days that I would be one of three Ealing Labour MPs supported by a council of the same complexion. A leading Tory at Ealing town hall remarked the other day that we were living in a one-party socialist super state. If only! On the subject of mixing, which I referred to, I can now claim to be the only one of the trio of Ealing Labour MPs to have been a DJ, and, interestingly, I am the only one of the three of us who has never been a bus conductor. In part, that is a function of my age—but hey, never say never.
Transport is a key issue for my constituents. In fact, large parts of my constituency would not have existed without the electrification of the railways. Ealing, Acton and Chiswick feature strongly among the stops on the London tube map. I want to use my position to speak up for the suburbs, which are neglected parts of our nation. If our great cities drive our nation, the suburban districts fuel it.
To sketch a pen portrait of Ealing Central and Acton in 10 minutes is no mean feat. As well as the two towns in its title, it comprises bits of NW10, bordering Harlesden in Brent, near the constituency of my hon. Friend the Member for Brent North (Barry Gardiner), and bits of W4 in Chiswick. Madam Deputy Speaker, you have probably seen my seat before without even knowing it. In the opening titles of “Only Fools and Horses”, the tower blocks of Del Boy’s Peckham were actually the South Acton estate. For sci-fi fans, it featured in several episodes of “Doctor Who”, including the classic 1970 episode, “Spearhead from Space”, which depicts zombies taking over tranquil Ealing green. I think they were called Autons, or something like that.
Dr Huq
Yes, Tories. That’s it.
The whole episode, with people marauding over Ealing green, eerily prefigured the events that unfolded in August 2011, when rioting sadly hit parts of London and further afield. It hit almost the same spot as depicted in the episode.
The seat’s cultural footprint goes wider than on screen; it also covers musical matters. If Members exit Ealing Broadway station, they will see a blue plaque marking the club where the Rolling Stones played their first concert, and The Who formed at Acton County Grammar School, now known as Acton High. At the University of West London in my constituency, there is a Freddie’s Bar, named after Freddie Mercury, who studied at its former incarnation, Ealing Art College. I was reminded of that by Brian May, from the same band, the week before last in this place when he came to lobby against animal cruelty.
The cumulative effect of 43 years in Ealing meant that the 18 months I spent as a candidate knocking on doors in some ways felt like watching my whole life flashing past me. I never knew who I would get behind those doors—would it be my mum’s friends from the swinging Ealing of the ’60s, or my own teachers from the ’70s and ’80s who I never even dreamed had first names, or people I see every day nowadays as a mum on the school run?
The constituency has seen pioneering social experiments. In Bedford Park suburb W4, we had the world’s first garden suburb, while in W5 we have the Brentham estate, which was the birthplace of co-operative housing, where Fred Perry learned to play tennis in the communal facilities. I know that MPs have been fond of the so-called John Lewis list, but they might like to know that its offshoot Waitrose opened its first branch in 1904 in Acton High Street.
Although we witnessed riots in 2011, the spontaneous broom army that came together in the aftermath of the disturbances demonstrated the resilience of what is a mixed community. It is a seat with lush suburbia of Victorian, Edwardian and 1930s-style varieties at one end and the more post-war urban densities and high-rise properties at the other.
My 18 months as a candidate opened my eyes to things I had never seen before in 43 years there. Some of my visits were to places such as the Ealing food bank, the Ealing soup kitchen, the Ealing churches’ night shelter and the Ealing Samaritans—all of whom report an unprecedented take-up of their services. In this day and age in Ealing, which was once known as “Queen of the Suburbs”, that cannot be right. While our victory in Ealing was a great result against the tide, it was tempered with sadness that my dad never lived to see it and disappointment at the broader national results.
I note that my predecessor’s maiden speech pledged to campaign for keeping local A&Es open. She will have been disappointed that we lost Central Middlesex and Hammersmith in September. Maternity at Ealing hospital—we are talking about the London borough with the third highest birth rate out of 33—is about to go at the end of this month, with the last projected birth on 24 June. That can be only a precursor to the A&E going, and Charing Cross A&E is also under threat. With west London’s population going up, not down, that is just plain wrong.
The two immediately preceding maiden speeches for my constituency both praised its multi-faith, multi-ethnic nature. Of course, I shall do the same, as I am a product of it, as can be seen from looking at me. Old and new Europe live side by side and have done for a long time in this seat. I went to school with kids—and teachers—from the immediate post-war Polish ex-servicemen generation, who long predated the 2004 EU expansion. The seat, then, spans tradition and modernity; continuity and change; urban and suburban: it is a microcosm of London at large. Enormous opportunity is coming our way with the regeneration of the Old Oak district, with some 24,000 dwellings, which is being touted as the Canary Wharf of the west; the Crossrail link, which will have two stops in Ealing and Acton; and HS2 is planned to come through, too. It is important that these opportunities serve local people. We do not want to see unaffordable flats being bought off plan by absentee overseas investors. That is buy to leave, not buy to let. As the area’s MP, I will press for the UK to maximise EU funding for these major infrastructure projects, as it is needed to support them. That seems an appropriate point for a debate on EU finance—I did get it in somehow—and the subject of today’s Bill.
Alison McGovern (Wirral South) (Lab)
It is an absolute pleasure to speak for the first time under your chairship, Madam Deputy Speaker. I know that I will enjoy doing so and it is great to see you in your place.
This afternoon, we have heard no fewer than eight maiden speeches. All have been brilliant and eloquent, and each Member has given a great exposition of their constituency. It is no surprise that they should have been so brilliant, and let me say why. I say this to the hon. Members for East Lothian (George Kerevan), for Tonbridge and Malling (Tom Tugendhat), for South Ribble (Seema Kennedy), for Glenrothes (Peter Grant), for Corby (Tom Pursglove), for Richmond (Yorks) (Rishi Sunak) and for Bath (Ben Howlett), and my hon. Friend the Member for Ealing Central and Acton (Dr Huq): it is no surprise that each one of them has made a fantastic first speech in this House because they chose to make their first contribution in a debate on European affairs, as I did five years ago, so welcome to the club, folks! They all did absolutely brilliantly, especially my hon. Friend the Member for Ealing Central and Acton. It is good to see that we are welcoming another fellow DJ to this place. I know that she will add great things to our debates.
Several Members mentioned their diverse backgrounds, and how proud they were to represent their home towns. The hon. Member for Bath made that point particularly well. He said that Members in this House come from all parts of the world and have diverse family backgrounds. Our country is at its best when it appreciates its wide history and shows its tolerance, which is one of the finest of British values, and I support everything that he said on that point.
On the Bill at hand, this debate has highlighted many important issues, which will undoubtedly be discussed over the next few months as we continue to debate Europe. As my hon. Friend the Member for Worsley and Eccles South (Barbara Keeley) has already stated, we will not oppose this Bill.
The Bill, although short, will give effect to the new financing system of the European Union, which equates to a net contribution from the UK of £9.8 billion for the year 2015-16. We will seek to improve the Bill in a number of ways. First, we need to review the EU budget. At the moment, 6% of the EU budget is spent on administration costs, and we need to ascertain whether that money is being spent efficiently and effectively. If it is not, we need to consider what we can do to change it. We have a collective interest in ensuring that European resources are used efficiently. Indeed, there are so many areas in which we have a collective interest with our European friends and neighbours. We will seek agreement from the Council of Ministers to undertake a review of budget priorities, waste and inefficiency within the EU budget.
There also needs to be an improved process for agreeing the EU budget. My hon. Friend the Member for Worsley and Eccles South has already highlighted the convoluted process that we go through and some of the difficulties. To increase transparency and accountability, it is vital that this House expresses its opinion on the budget, and we should seek to meet budget representatives in advance of EU budget negotiations. I urge the Government to consider what more they can do on that front.
We also need to revisit how the budget is set and how we spend the money. To set a different ceiling on spending commitments and payments seems odd, and we ask for the process to be reviewed to ensure that the gap is manageable.
I am sure that Members would not feel too insulted if I suggested that the EU budget can be difficult to understand. It involves complicated decision-making processes. Set out over a seven-year cycle, it covers everything from spending on research and innovation to public health and even pensions for staff, but it is precisely because of its wide scope that it needs such careful attention.
We have heard Government Members wax lyrical about their achievements on reducing the UK’s contribution to Europe. Labour welcomes the fact that the UK has achieved that real-term cut in spending limits, and I remind the House that we played an important role in pushing for that cut.
We called for a real-term cut in spending in 2010, and pushed for a better deal for Britons in the following years, but a reduction in spending is just one part of the reforms that we need. The budget also needs to be more focused. We need to concentrate on areas that will enhance economic growth across the EU. I was struck by the comments made by my hon. Friend the Member for Worsley and Eccles South about the level of unemployment in parts of Europe. We need to improve productivity, support the creation of new jobs, and, ultimately, enhance living standards within our Union.
Graham Stuart (Beverley and Holderness) (Con)
The hon. Lady is being characteristically generous in paying tribute to the Prime Minister for securing that reduction in the budget. Given that the Labour party is now indulging in various changes of opinion, not least on Europe, does she recognise that the way so much was given away in the mid-2000s by the previous Labour Government was a great mistake, and will she pledge that no future Labour Government would ever do such a thing in that way?
Alison McGovern
I thank the hon. Gentleman for that intervention and for his kind words. Given the comment I just made about when I chose to make my first speech at this place, I can assure him that I have never changed my mind about Europe. I shall say more about that.
Spending on research, innovation, infrastructure, education and training, and enterprise development is very important and can help us better to promote the European Union as a facilitator of growth within the UK. Of course we recognise that we must also finance all aspects of the EU, but I would question whether continuing to spend so much of our money on areas like the common agricultural policy demonstrates the right priorities. It accounted for 40% of EU expenditure in 2013 yet contributed just over 1% to total EU economic output.
George Kerevan
Labour Members have twice now criticised how much is spent on agriculture in the EU. Surely the hon. Lady is aware that over the years there has been a significant shift in and reform of what the agricultural fund is for. It is no longer primarily an agricultural subsidy for production and excess production but is focused on protecting the environment. Surely that is something that we should encourage.
Alison McGovern
The hon. Gentleman makes a fair point about protecting our environment, but my point is that in these times we need to ensure that each part of this spending is focused in the right place. At a time when the European Union has serious deprivation and so on within its borders, it is right to question each part of its spending.
I know that any discussion of Europe strikes fear into the heart of those on the Government Front Bench, especially because it stirs such joy on their Back Benches. The issue of Europe holds no such fear for me, however, and in the coming referendum I shall campaign to stay in the European Union, because we should not underestimate the benefits we receive from being part of it.
James Cleverly (Braintree) (Con)
In the light of the hon. Lady’s comments about fear on respective sides of the House, will she tell the House why her party was so fearful of the views of the British people for so long when it came to a referendum on Europe?
Alison McGovern
I have no fear of the views of the British people and I only endeavour to listen to them.
Seven out of ten of the UK’s largest export markets are in EU countries, amounting to 42% of the UK’s total exports or £122 billion every year. Some of those exports are made in my constituency, and I see the vital importance of the European market to the whole of the UK and to my constituents no less than to anyone else’s. Of all the investment spending in the UK over the past 20 years, 21% has come from foreign direct investment, and we should not underestimate the importance of that. We have access to 500 million customers in the single market, and in my role as shadow City Minister. I must raise the point that in my opinion the financial services sector benefits enormously from remaining within the EU.
Graham Stuart
The hon. Lady is being very generous. A lot of the debate on this in the past has been a bit overdone, as though there would be no trade between the EU and the UK if we were to leave. What assessment has the hon. Lady made of what the impact would be? I am sure that there would be costs, but perhaps we need to avoid exaggerating or suggesting that somehow all trade would cease or that there would be massive walls put up when there will not. What is her assessment of the likely impact on trade if we did depart?
Alison McGovern
I am not always this generous, so the hon. Gentleman should perhaps make the most of it. I have looked my constituents in the eye, especially those who work at General Motors in Ellesmere Port, and I have seen in them a dedication to make things in this country to be sold abroad for the good of our economy. Their dedication in working so hard for our country deserves our commitment to ensuring that our borders are open to our biggest customers. When they sell their cars to Europe, that is good for our country and I think that my job is to stand by their side.
We must work hard to make the EU better for everybody, and the Bill presents us with an opportunity to do that. The multiannual financial framework has already been agreed by the European Council. We should use this process to strengthen budgetary procedures for the future and enhance political and public understanding of how the EU budget works, and we should re-prioritise how EU money is spent so that it works for the benefit of each and every person in Europe, not just for a wealthy few. I look forward to strengthening the Bill as it moves through the House.
Harriett Baldwin
I accept that the OBR has published figures that clearly show that there is a real-terms reduction in the overall envelope for the settlement period.
My hon. Friend the Member for Daventry also asked about the additional costs compared with the existing decision and any offsetting benefits. He raised a number of technical points about the VAT-based contributions, which are calculated by applying a call rate to a hypothetical harmonised VAT base—are not we glad we have him in this House, knowing all the information and all the right questions to ask on the details of the financial settlement? He also asked about the impact of the switch from ESA 95 to ESA 2010. It was taken into account in the own resources decision, but it does affect all countries’ GNI, so the effect on the contribution depends on how all countries’ GNI is revised. For the UK the key determinant of contributions is, in fact, the VAT base, thanks to our rebate, which the Labour party did not succeed in giving away fully in the early 2000s. Changes in the UK’s GNI are corrected in the rebate calculation.
The hon. Member for Luton North (Kelvin Hopkins) mentioned a number of negotiating red lines that he has, although he is in a slightly different position. He asked what are the Prime Minister’s red lines. The Prime Minister has clearly set out areas where he wants change, including reforming welfare to reduce the incentives that have encouraged such mass migration from Europe; increasing economic competitiveness to create jobs and growth for hard-working families; and protecting Britain’s interests outside the euro. They also include halting the constant flow of powers to Brussels, including by ensuring a stronger role for national Parliaments, and dealing with the concept of ever-closer union. That may be what some others want, but it is not for us.
In 2010, this Government took the tough decisions that were needed to pull this country back from the brink. We can have a stable, prosperous society only if a Government spend their citizens’ money carefully, and it is right that we took that approach to the European level of government as well.
Harriett Baldwin
I would be delighted to confirm that. When we took office in 2010, the deficit was the largest in our peacetime history, at well over 10%. It has more than halved over the past five years and will be eliminated during this Parliament.
Alison McGovern
The Minister says that the deficit has halved. Will she confirm the Government’s pledge in 2010?
Harriett Baldwin
The deficit halved—more than halved—over the course of the previous Parliament. Is the hon. Lady now arguing that she would like to have cut spending more? I have not heard that from Labour Members in this Chamber over the past five years. I have heard constant bids for more borrowing, more spending and more taxation, and nothing at all about reducing the deficit.
Alison McGovern
The Minister challenges me on what I would pledge. I did not write the Chancellor’s emergency Budget that set the Government on the wrong course. So let me ask her this: how did the pledge go to get debt falling, not rising, for most of the previous Parliament?
Harriett Baldwin
I must be living in a parallel universe. I have walked through the opposite Lobby from the hon. Lady on numerous occasions when we have taken the tough decisions on spending that we needed to take in order to clear up the mess that her mentor, Mr Gordon Brown, left behind.
In the negotiations on the European budget in 2013 we achieved real, historic change. We got a great deal for the United Kingdom, we proved that we can achieve reform in Europe, and we protected taxpayers’ interests. That historic agreement will be formalised with the passing of this Bill, and I commend it to the House.
Question put and agreed to.
Bill accordingly read a Second time.
European Union (Finance) Bill (Programme)
Motion made, and Question put forthwith (Standing Order No. 83A(7),
That the following provisions shall apply to the European Union (Finance) Bill:
Committal
(1) The Bill shall be committed to a Committee of the whole House.
Proceedings in Committee, on Consideration and Third Reading
(2) Proceedings in Committee, any proceedings on Consideration and proceedings on Third Reading shall be completed at one day’s sitting.
(3) Proceedings in Committee and any proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which those proceedings are commenced.
(4) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.
(5) Standing Order No. 83B (Programming committees) shall not apply to proceedings in Committee and on Consideration and Third Reading.
Other proceedings
(6) Any other proceedings on the Bill (including any proceedings on consideration of any message from the Lords) may be programmed.—(Margot James.)
European Union (Finance) Bill (Money)
Queen’s recommendation signified.
Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),
That, for the purposes of any Act resulting from the European Union (Finance) Bill, it is expedient to authorise the charging on, and payment out of, the Consolidated Fund or the National Loans Fund of any sums which, by virtue of the amendment of the European Communities Act 1972 made by that Act, fall to be charged on or paid out of either of those Funds.—(Margot James.)