Debate on the Address

Lord Cameron of Chipping Norton Excerpts

Wednesday 18th May 2016 Commons Chamber

[The Prime Minister (Mr David Cameron)]

Thank you, Mr Speaker.

I think we have just witnessed a parliamentary record of a 41-minute speech without a single intervention. I have been taking part in debates on the Queen’s Speech for the last 10 years and I have never seen a Minister or Opposition leader refuse to take them. Was there really no question from any Labour MP? Did Scottish National party Members have anything to say? I know that SNP Members have other things on their minds—actually, it is mostly the same thing on their minds—but there was a not a single question from them.

This Queen’s Speech builds on strong foundations—the deficit cut by almost two thirds as a share of GDP; the highest employment rate in our record; and our long-term economic plan means our economy is over 13% bigger than at the start of 2010. We have 900,000 more businesses; 764,000 fewer workless households; and poverty at its lowest rate in three decades. I am the first to say, however, that there is far more to be done to entrench our strong economic performance. We want more exports; we want higher productivity; we need better infrastructure. That is why one of the key measures in this Queen’s Speech is for the first time a universal service obligation to deliver broadband to every home and every business in our country. With this Government, economic security always comes first.

This Queen’s Speech uses the strong economic foundations to make a series of bold choices that will deliver opportunity for all at every stage of life. For children, we make the choice to rebalance the system in favour of faster adoption, so more children get a loving and stable home. For care leavers, we choose to put them first for training and jobs so that the most disadvantaged get a better chance to make a good life for themselves.

[Mark Spencer]

Will the Prime Minister give way?

[The Prime Minister]

I will give way a lot, but I am going to make some progress first. I shall deal with the proposers and seconders, and then I will be happy to give way a lot. I predict at least 500% more than my principal opponent.

For all our young people, we offer the chance to do National Citizen Service. For school leavers, we make the choice to extend educational opportunity and allow the creation of new universities. For low-income families, we choose to offer new support to build up their savings through the first ever help to save scheme. For those who want to get on the housing ladder, we are choosing to build a million new homes. We choose to deliver, too, the biggest reform of our prisons system for a century, knocking down the old outdated prisons and radically reforming education and rehabilitation of offenders. This is a Queen’s Speech that combines economic security with extending life chances for all. It is the Queen’s Speech of a progressive, one nation Conservative Government.

Her Majesty’s Gracious Speech was brilliantly proposed by my right hon. Friend the Member for Meriden (Mrs Spelman). Her speech was powerful, it was compassionate, and it included, I thought, some excellent advice. As the Leader of the Opposition said, she has a background in food and farming, and a union background too: she was in charge of sugar beet for the National Farmers Union, and was a consultant on food and biotechnology. So, Mr Speaker, you can imagine the shock among those in the Department for Environment, Food and Rural Affairs when, in 2010, they began to get Secretaries of State for agriculture who actually knew what they were talking about. My right hon. Friend stripped away unnecessary burdens and bureaucracy for farmers, she produced the first natural environment White Paper for 25 years, and she secured not one but two separate United Nations agreements, taking huge steps forward to protect our environment.

My right hon. Friend referred to her work as Church Estates Commissioner, and everyone in the House knows that she is a deeply committed Christian. That would have come in handy during her time at DEFRA, when she had to deal with floods, droughts, food shortages, and even disease—indeed, everything short of a plague of locusts, which, of course, I will be predicting in my next speech on Europe.

While chairing the Conservative party, my right hon. Friend did a massive amount to encourage more women to stand for Parliament. I am the first to say that there is still more to be done, but the change on the Benches around me is a significant tribute to her efforts. She talked about her charity work, and it seems as though, in pursuit of such causes, she is prepared to do almost anything with almost anybody. During her time in the House she has sung the “Flower Duet” with Sarah Teather, performed “The Vagina Monologues” with Jerry Hall, and, more recently, launched Environmentalists for Europe with Stanley Johnson; I now need to set her to work on other members of the family. Her speech was in the finest traditions of the House.

The Gracious Speech was brilliantly seconded by my hon. Friend the Member for Bracknell (Dr Lee). He was witty, self-deprecating and thoughtful. Given his description of his medical examinations, and, indeed, his explanation of the true nature of PR, I will shortly be recommending him for a role in the Whips Office, where he could presumably carry out a number of important pieces of work.

As my hon. Friend said, he began his political life canvassing in Beaconsfield, where he was also the local GP. I am sure that he will welcome our record spending on health, and the progress that we are making towards a seven-day NHS. I am also sure that the quality of the speeches that he makes on Sundays is just as good as the quality of the one that we heard today. We look forward to hearing more.

Every time my hon. Friend goes canvassing, he is besieged not by political issues but by the medical problems of his patients and constituents, this bringing a whole new meaning to the concept of the MP’s surgery. He is also, I understand, a romantic supporter of lost causes. He told us in his speech about standing in Michael Foot’s old seat of Blaenau Gwent, and he told us that he got 816 votes. He did not point out that, at the time, he had 1,500 patients, which means that it was not that good a result! I am told that the seat is now a Plaid Cymru marginal, so things have changed.

I am told that my hon. Friend is an ardent fan of Queens Park Rangers, but we will not say too much about that, as at least one of my teams is joining him in the championship next season. He is also a passionate member of the England Supporters Club. He travelled with the England team to Japan in 2002, to Portugal in 2004, and to Germany in 2006. Of course, England lost on all those occasions. The House will be pleased to hear that we will be exercising our firm border controls, and not letting him anywhere near France this summer.

My hon. Friend and I have both benefited from your decision, Mr Speaker, to establish a nursery on the parliamentary estate. We thank you for that, as do our daughters, Florence and Tabitha. My hon. Friend has made his own contribution to the House—to which he referred—not least in his role as Vice-Chair of the Parliamentary Space Committee. He told us about his passion for the issue, and, indeed, for Tim Peake, whom we all wish well. The modern transport Bill, which was announced in today's Gracious Speech, will bring about something for which he has long campaigned: the first British spaceport, which gives the opportunity for people to be sent into orbit for prolonged periods, thousands of miles away from this place. We may have different candidates who we think should qualify for that honour, but I am grateful for the fact that we will both be supporting the Bill.

My hon. Friend told us that he is one of the few MPs who has not yet decided which way to vote in the EU referendum. He kept us guessing today, but I know that he, like everyone else, particularly on the Conservative Benches, will welcome the fact that we are keeping our promise to hold an in/out EU referendum. His thoughtful speech was also in the finest traditions of our House.

Let me join the Leader of the Opposition in paying tribute to two great Members of this House who passed away over the past year. Harry Harpham was only in this place a short time, but quickly became a very popular Member. He earned great admiration from all sides for the way he continued to carry out his work throughout his treatment for cancer. His widow, the new hon. Member for Sheffield, Brightside and Hillsborough (Gill Furniss), is already continuing his great work of standing up for the constituency that he loved so much. Michael Meacher represented his Oldham constituents in this place for a staggering 45 years. He was sometimes known as Tony Benn’s vicar on earth. He was a passionate campaigner for equality and on climate change. This House is a poorer place without those two Members, and we miss them greatly.

Let me welcome the Leader of the Opposition to his first Queen’s Speech debate. I was not entirely sure whether he would actually turn up. After all, he once described it as a “ridiculous...18th-century performance” and he has even suggested that the monarchy “call it a day” when the Queen completes her reign. I have to say that I think there is more chance of the Labour party calling it a day when he completes his reign. I have been doing my researches, too, and that may come a little sooner than people think. He recently placed an advert for a job in his office. It said:

“Fixed term contract for the period only that Jeremy Corbyn is the Leader of the Labour Party, or until 31st December 2016, whichever is sooner”.

Is there something we are not being told? I wondered what the cause was. Having done the job of Leader of the Opposition, I thought perhaps it was the long and draining hours. So in preparing for this speech, I asked my office to ring his office to find out. I promise I am not making this up. This is the answerphone message we got:

“Thank you for calling the office of Jeremy Corbyn MP, the Leader of the Opposition. Our phone lines are open between the hours of 2pm and 4pm every week day.”

I know he wants a shorter working week, but there are limits, presumably even for him. There were rumours that at one point he would be challenged for the leadership by the former Chair of the Public Accounts Committee. Obviously, I was thrilled by the prospect of making jokes about Labour moving from Islington to Barking. But I have a feeling that after today’s performance they will be moving to Barking without a leadership contest.

We face an extraordinary Opposition team. The shadow Business Secretary is anti- business. The shadow city Minister does not speak to the City. The shadow farming Secretary, who should be responsible for encouraging Britain’s livestock industry, is actually a vegan. The shadow Defence Secretary does not believe in defence and they are led by a proud republican who now has to call himself the Leader of Her Majesty’s Loyal Opposition. [Interruption.] Does he want me to give way? He does not. If one were to propose all that for a script of “The Thick of It”, even with the entreaties of my right hon. Friend the Secretary of State for Culture, Media and Sport about the importance of diversity and innovation, the BBC would have to reject it as utterly far-fetched.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

Will the Prime Minister give way?

[Hon. Members]

Hooray.

[The Prime Minister]

I will give way.

[Tom Blenkinsop]

Will the Prime Minister remind the House when either he or the Secretary of State for Business, Innovation and Skills actually went to meet Tata during the steel crisis? The Labour Front-Bench team, my hon. Friend the Member for Aberavon (Stephen Kinnock) and the general secretary of Community went when no Government Front Bencher was available—they were in Australia on holiday. Can the Prime Minister remind us when he actually met Tata?

[The Prime Minister]

I was at Port Talbot two weeks ago meeting Tata. Let me give Labour Members a tip. It is all right not intervening on their own leader, but if they are going to intervene on the other guy, try to think of a question that he will find difficult. However, to be fair to the Leader of the Opposition, he made an inspiring speech after the local elections. He said:

“Across England we had predictions we’d lose councils. We didn’t. We hung on.”

That will surely go down as one of the great rallying cries of Opposition leaders down the ages—“Go back to your constituencies and prepare to hang on!” To be fair, I have to say that there are days when I know exactly how he feels.

You can say what you like about the right hon. Gentleman, but he has never hidden his beliefs. While I may disagree with most of them, he has been totally consistent in his opposition to market economics, to choice in public services and to Britain maintaining strong defences, so I am not surprised that he opposes this Queen’s Speech almost in its entirety. But no one can say that the British people are not being offered a choice, and the first half of his speech was something that we all thoroughly enjoyed listening to, and I welcome him again to his place.

We want to see true equality of opportunity in our country. That is why we are reforming our schools, creating 3 million apprenticeships, establishing new universities, boosting entrepreneurship, cutting taxes for businesses and creating a dynamic economy in which people can make the most of their talents. But if we really want to make a true difference to people’s life chances, we have to go further in tackling the barriers to opportunity. We have to help those who get left behind, those who are stuck in poverty and those who grow up without the advantages of a strong family.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

Will the Prime Minister explain why he is going back on his promise to introduce a White Paper on supporting disabled people into employment, given that he has cut £1,500 a year from sick and disabled people?

[The Prime Minister]

We are not going back on that promise. We want to do more to help disabled people into work. What we have seen in the last year is well over 100,000 disabled people get into work, and we will continue with that excellent work.

If we really want to help people’s life chances, we really need to help those who need help the most. That is why there is such a strong emphasis in this Queen’s Speech on adoption and care. When I became Prime Minister, some social workers were refusing to place black, mixed race or Asian children with white adoptive parents. I think that that was profoundly wrong and we changed the law to prevent it. As a result of that change and the other things we have done, adoption is today up 72%, but there is still a lot more to do. In a system that still favours foster parents or distant relatives, we choose to promote adoption which will provide more permanent and stable homes. To make sure our social workers get proper real-life training on the job, we are reforming training and raising professional standards for every social worker by 2020.

Young people in care already get the first choice of which school they go to, but we do not give them sufficient advantages when they leave care. It is time that we did so. So, in this Queen’s Speech we are saying to care leavers: you will get guaranteed entitlements to local services, funding for apprenticeships and a personal mentor up to the age of 25. All this will be included in our care leavers covenant, so that our most disadvantaged young people get the opportunities they deserve. These are the choices of a progressive one nation Conservative Government.

[Mark Spencer]

Can the Prime Minister assure the House that, whatever someone’s background and wherever they were born, if they have aspirations they will be given not only the inspiration to succeed but the education to allow them to get to where they want to be?

[The Prime Minister]

My hon. Friend is absolutely right. It is no good just talking about opportunity in terms of giving people the chance to get on; we have to unblock those who are stuck in poverty, in troubled families or in care, or who are stuck because they cannot get adopted or have mental health problems. That is the modern agenda of this Conservative Government. Yes, there are the economic opportunities we have always talked about, but let us unblock the opportunities that have been blocked for too many in our country.

[Neil Gray (Airdrie and Shotts) (SNP)]

rose—

[The Prime Minister]

I want to make some progress, but I will give way to the Scottish National party now that its Members have woken up.

[Neil Gray]

Further to the intervention by the hon. Member for Oldham East and Saddleworth (Debbie Abrahams), I must point out that during his last appearance at the Dispatch Box, the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith) gave me a commitment that the White Paper on health and work would be published “well before the summer”. What has changed?

[The Prime Minister]

What has changed is that we are getting more disabled people into work. We want to make more progress with that, and we have a new Secretary of State for Work and Pensions who is absolutely committed to continuing that development. That is exactly what the hon. Gentleman will see in the months to come.

After a strong family, the greatest driver of opportunity is a good school. Under the last Labour Government, the number of pupils studying core academic subjects at GCSE halved and, according to the OECD, the generation educated under that Government is among the least literate and numerate in the developed world. This Government are determined to turn around that shameful legacy.

Already we have 1.4 million more pupils being taught in good or outstanding schools. The number studying the core academic subjects at GCSE has gone up. There are more teachers with degrees and more pupils studying maths and science. In this Queen’s Speech we will help to make that educational excellence available to all in our country. A national funding formula will ensure that schools get the money they need. Local authorities that are not delivering will be intervened on at once. Failing and coasting schools will be turned into academies without delay. We should be clear about the choice that we are making—rigour in standards, discipline in the classroom, excellence in teaching, autonomy in our schools and no tolerance of failure. Again, this is the policy of a progressive one nation Conservative Government.

[Geraint Davies (Swansea West) (Lab/Co-op)]

How is equal opportunity consistent with allowing the best universities to raise their fees so that instead of the brightest getting access to those universities, the richest do?

[The Prime Minister]

I am coming on to precisely that point. What we have seen since the introduction of fees is not only record numbers going to our universities, but record numbers from poorer backgrounds going to our universities.

A real Opportunity Britain will offer school leavers apprenticeships and a choice of a good university and a good job, and our Queen’s Speech helps deliver on all three. We are providing funding for 3 million new apprenticeships. We have uncapped numbers at universities so that everyone who could benefit from a university education can get one. Now we are legislating to make sure that degrees are of high quality and, crucially, that new universities can be established. None of this would be possible without that bold decision to reform fees, which demonstrated that bold reform and value for money do not hold back opportunities in our country, but can help create them.

[Rebecca Pow (Taunton Deane) (Con)]

I am sure the Prime Minister would agree that one of the best things we can do for our children is to give them a university education. I welcome the announcement in the Queen’s Speech that more universities will be enabled to open. I would love one in Somerset and in Taunton Deane. It is the best thing we can do for our young people.

[The Prime Minister]

I will look at what my hon. Friend says. When we look at economic growth and development, all the evidence is that having universities of a high quality in all our regions is a massive driver for growth and for retaining talent in those areas, as the contribution of the Manchester universities to the northern powerhouse shows so clearly.

[Christopher Pincher]

My right hon. Friend is being typically generous in giving way. All the secondary schools in my constituency are academies, a process begun by the Labour county council before it was booted out in 2009. I welcome the national funding formula that will help all schools, I hope, in Staffordshire. Will my right hon. Friend make sure that the academies in Tamworth are protected and are never abolished, as the Leader of the Opposition would like?

[The Prime Minister]

We are committed to academies and free schools. We want to combine that autonomy with the national funding formula and make sure that more of the money goes to the school itself. All these reforms go together to drive change in our education system.

On jobs, today’s figures show unemployment falling, employment rising and a new record for the number of people in work in our country. This Queen’s Speech builds on this record with more help for small businesses, further improvements to infrastructure, and measures to make Britain a world leader in the digital economy and in new industries, such as autonomous vehicles. We are determined to deliver a recovery that is rich in jobs. With the national living wage, no one paying tax before they earn £11,000, in-work training, learning through life and all the steps that we are taking to boost productivity, our ambition should be for a Britain with the best paid, best trained workforce anywhere in Europe.

[George Kerevan (East Lothian) (SNP)]

I apologise for being semi-comatose during the speech from the Leader of the Opposition—most of us were. The Prime Minister mentions the economy and productivity. Will he tell us why the word “productivity” does not appear in the Gracious Speech? Is it because the productivity record of the Prime Minister and this Government is so appalling?

[The Prime Minister]

It is because everything in the Queen’s Speech is about enhancing our productivity. If we make those digital investments, improve our transport system, build new universities and introduce certain changes in our schools, all those things will help to drive productivity, which is vital to our success.

Opportunity for all also means continuing to make sure that every part of our country shares in rising prosperity, so in this Queen’s Speech we continue to support the development of a northern powerhouse and the midlands engine. In the next year we want to have elected metro Mayors in six of our largest cities, and with our plans, local authorities will have complete control over revenue raised from the business rates. For the first time, the decisions they take to attract businesses to their area will help grow their economies and benefit their bottom line. It is a huge change in our country.

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

Between 2000 and 2010, £350 million was removed from the city of Leeds Supertram and put into Crossrail. Since 2010, over half a billion pounds has been invested in Leeds, showing that we really do believe in the northern powerhouse.

--- Later in debate ---

[The Prime Minister]

My hon. Friend makes an important point. We could add the plans for the M62, HS2 and electrification of the TransPennine line, which will all make the promises that we have spoken about a reality.

Believing in opportunity means never writing anyone off. For too long the young offender institutions and prisons in our country have not been working. They give the public the security of knowing that offenders are locked in, but they are not doing enough to turn around the lives of people who will one day be let out. So in our prisons we are going to apply the lessons learned in other public service reforms: publishing results; giving the people who run the services proper control over them; encouraging innovation; rewarding success; and not tolerating persistent failure.

[Caroline Lucas (Brighton, Pavilion) (Green)]

If the Prime Minister is serious about prison reform, why have prison budgets been slashed by a third since 2010, at exactly the same time as the prison population has been growing? Given that 47,000 prisoners are currently incarcerated for offences linked to drug use, is not it time to review a policy that treats drug addicts only as criminals, rather than as people who need our support as well?

[The Prime Minister]

I would make a number of points to the hon. Lady. First, I really think that we need to get away from the idea that we only measure progress in public services by the amount of money that is spent. The whole aim here is to try to do more with less. That is what we have done with so many parts of the public sector. The point about drugs is important. the first thing we have to do is ensure that our prisons are drug-free; not just free of drugs, but free of so-called legal highs, about which the Leader of the House made such a powerful case on the radio this morning.

[Several hon. Members rose—]

[The Prime Minister]

I am going to make a little progress, but I promise to give way a lot more.

For decades we have been cramming people into crumbling prisons that were built for a different age, many of which, frankly, are now unfit for human habitation. These buildings do not help rehabilitation. Indeed, they are rife with bullying, intimidation and violence. So we have made a £1.3 billion commitment to get rid of ageing prisons and build nine new prisons with modern, fit-for-purpose facilities. Once again, this is bold reform from a progressive, one nation Conservative Government.

[Mr David Hanson (Delyn) (Lab)]

Can the Prime Minister explain to the House why figures for suicides in prison, attacks on prison staff and contraband going into prison have gone up? Could it be anything to do with the fact that there are 7,000 fewer prison officers than there were in 2010?

[The Prime Minister]

As we were discussing this morning, one of the reasons for these problems is the availability of legal highs in our prisons, which we need to deal with, but I do not think that it is right simply to lay this at the door. What we need is prisons that are run well, where the management are in control, and where they are able to turn around the lives of the people who are there. It is all very well for Labour to ask questions, but they had 13 years to reform our prisons. It took a reforming Tory Government to put it on the agenda.

We cannot extend life chances unless we also tackle the menace of extremism. In our country there is still discrimination that we must fight, opportunity that is blocked and glass ceilings that need to be smashed. But I think that we should all be proud of the fact that when we look around the world, we see that Britain is already one of the most successful multiracial, multi-faith democracies anywhere on earth.

[Several hon. Members rose—]

[The Prime Minister]

I am going to make some progress, because I want to make this argument. Then I will happily take interventions.

Extremists hate that fact, because it challenges their whole world view—the preachers who say that Christians, Jews and Muslims cannot live together; the so-called community leaders who say women cannot travel more than a few miles beyond the city in which they live; the activists who insist on segregation at political meetings; and the religious schools that teach children not to mix with those from different religions, and that sometimes teach that Jews are the enemy. To those who say that pointing this out is somehow illiberal, intolerant or Islamophobic, I say, “Nonsense.” It is not real liberalism to walk on by and pretend that this is not happening, or to say that it is just part of someone else’s culture. Real liberalism means standing up for our liberal values, and that is what we need to do in our country.

I want to make one last point before giving way. It is certainly not the preserve of one party to make this point. Whether it is my hon. Friend the Member for Gillingham and Rainham (Rehman Chishti) on the Government side of the House or the hon. Member for Birmingham, Perry Barr (Mr Mahmood) on the Opposition Benches, I have heard powerful speeches on this from right across the House. So when it comes to our Queen’s Speech proposal for a counter-extremism and safeguarding Bill, whether we are disrupting the activity of the extremists or protecting young people in unregulated schools, I hope there will be all-party support to tackle the poisonous ideology that is at the heart of the extremist threat.

[Keith Vaz (Leicester East) (Lab)]

rose—

[The Prime Minister]

I give way to the Chairman of the Home Affairs Committee.

[Keith Vaz]

I am most grateful to the Prime Minister. It is very clear that one of the areas that is used by the jihadists to recruit British citizens, especially young British citizens, is the internet. Does he agree that more should be done, and perhaps enshrined in legislation, to ensure that the internet companies do much more to take down these websites and to pursue those responsible for this hate?

[The Prime Minister]

I absolutely agree about that. It is fair to say that over 170,000 pages have been taken down under this Government because of the work we have done with the internet companies. I have great hope here, because the internet companies originally said that they could not work with us on tackling online child pornography, and then they did, and a huge amount of change has come about. They are now beginning to see that whether it is beheading videos, jihadist videos, or the rest of it, they need to act and demonstrate their own responsibilities. I am hugely hopeful that if we are clear in this House about what needs to be done and we work with internet companies, we can make a huge amount of improvement.

[Several hon. Members rose—]

[The Prime Minister]

I give way to the leader of the Liberal Democrats.

[Tim Farron (Westmorland and Lonsdale) (LD)]

I am extremely grateful to the Prime Minister for his generosity. He will know that David Anderson, his own reviewer of terrorist legislation, who has seen the proposed extremism Bill in the Queen’s Speech, has said that it ran the risk of

“playing into the hands of those who, by peddling a grievance agenda, seek to drive people further towards extremism and terrorism.”

Will the Prime Minister listen to his adviser and not simply give a propaganda victory to those who wish to do us harm?

[The Prime Minister]

I will of course listen to everyone about this Bill, but I do say to the leader of the Liberal Democrats that our liberal values in this country are being stamped all over by people saying, “You can’t travel out of the city you live in”, or, “You can’t mix with Jews and Muslims.” That is what is happening in our country. It is no good saying, as the Liberal Democrats sometimes do, “Let’s just focus on the violent extremists; everyone else is just exercising their freedom of speech.” That is not good enough in a liberal democracy; we have got to stand up and fight for liberal values.

[Nusrat Ghani (Wealden) (Con)]

Extremists are adept at grooming and brainwashing our young people. Does the Prime Minister agree that we should be even bolder in offering greater support and encouragement to the brave Muslims in our community who seek to stand up and challenge the intolerance and hatred that is exported by Daesh?

[The Prime Minister]

My hon. Friend is absolutely right. That is why what she says is so important: if we give in to the idea that spokesmen who are extremist but not violent can somehow represent their communities, we completely disempower the moderate voices who want us to stand up for the liberal values that we should champion in this House. That is very important.

[Several hon. Members rose—]

[The Prime Minister]

I give way to the hon. Gentleman who serves on the Foreign Affairs Committee.

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

Will the Prime Minister have an early meeting with the Mayor of London in which he can discuss the issues of London and its security, and how we combat extremism in our capital. Will he then take the opportunity to apologise for his candidate’s racist campaign against Sadiq Khan?

--- Later in debate ---

[The Prime Minister]

Once again, let me congratulate the Mayor of London and say how much I am looking forward to meeting him to discuss this issue, because he can do a huge amount, working with the Government, with Labour colleagues, and with Liberal Democrats and others, to pursue this agenda about standing up for the liberal democratic values that we hold so dear.

[Several hon. Members rose—]

[The Prime Minister]

Let me give way to the hon. Member I mentioned—[Interruption.] Let me say something: I am not going to take any lectures from Labour Members about giving way. We are not allowed to drop the H-bomb of hypocrisy in this House—of course we are not—but for heaven’s sake: have a go at your own Front Benchers, matey!

[Mr Speaker]

Order. Just before I call Mr Chishti, the Prime Minister did not say this, but I am going to say it: Members should not shriek at the Prime Minister, or indeed at the Opposition, for that matter. If Members want to try to intervene, they should do so with civility. I call Mr Rehman Chishti.

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

Thank you, Mr Speaker, and I thank the Prime Minister for giving way. On extremism, Government efforts to tackle hate preachers who poison individual minds and destroy our communities have to be welcomed, and I applaud what the Prime Minister is doing in tackling non-violent extremism. Will he clarify how the Bill will define when an individual has crossed the threshold of what is and what is not acceptable, so that our enforcement agencies and communities know when to take action?

[The Prime Minister]

My hon. Friend raises the absolutely crucial point that will be at the heart of the debate. I expect it to be a difficult debate, because we are trying to balance two things: our profound belief about free speech in this country and our need to stand up for the liberal democratic values that I have spoken about. It is not good enough to say that this is too difficult and therefore we cannot take any action to try to stop the people who are poisoning minds, particularly those of young children.

Let me make the point about the importance of being able to go into unregulated education settings and to check whether extremism is being taught or promoted. If that is happening, walking by on the other side and saying, “That’s part of someone’s culture and we just have to put up with it,” is not good enough. That is what needs to change.

Above all, in this Queen’s Speech we are using our economic strength to choose to invest in the national security of our United Kingdom—England, Scotland, Wales and Northern Ireland. We are legislating on the police, intelligence powers and human rights, and we are meeting our NATO commitment to spend 2% of our GDP on defence.

This Government will also make a further choice. To disarm unilaterally in the hope that others would follow would be an act of supreme naivety. It would be the ultimate false economy—an act of weakness, not of wisdom—so we will hold a vote in this House to secure the long-term future of Britain’s nuclear deterrent.

Britain has come a long way since the depth of Labour’s recession. We are building homes again, with over 700,000 more since 2010. We are creating jobs again, with over 2 million more people in work. We are investing in our NHS again, with almost 10,000 more doctors and over 10,000 more nurses on our wards than in 2010. We are building a greater Britain again, with a sound economy, strong defences and opportunity for all. These are the actions of a progressive, one nation Conservative Government, and I commend the Queen’s Speech to the House.

Oral Answers to Questions

Lord Cameron of Chipping Norton Excerpts

Wednesday 11th May 2016 Commons Chamber

[Mike Kane (Wythenshawe and Sale East) (Lab)]

Q1. If he will list his official engagements for Wednesday 11 May.

[The Prime Minister (Mr David Cameron)]

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

[Mike Kane]

Even “fantastically corrupt” Nigeria is asking Britain to clean up its act and introduce beneficial ownership registers in the overseas territories. Will the Prime Minister achieve that tomorrow at the anti-corruption summit?

[The Prime Minister]

First, I had better check that the microphone is on before speaking. It is probably a good idea.

I thank the hon. Gentleman for his question. The answer is yes. We have asked three things of the overseas territories and Crown dependencies: automatic exchange of tax information; a common reporting standard for multinational companies; and central beneficial ownership registries so that UK enforcement can know who really owns the companies that are based there. They have delivered on the first two, and they will be following and delivering on the third. That is what he asked for, and that is exactly what he is getting.

[Victoria Prentis (Banbury) (Con)]

Q2. In Banbury and Bicester, we have unprecedented housing growth. Does the Prime Minister agree that we must build sufficient starter homes so that the dream of home ownership becomes something to which everybody can really aspire?

[The Prime Minister]

I thank my constituency neighbour and hon. Friend for raising that question. The fact is that we are building more houses, including more affordable homes, right across England. The legislation going through this House and the other place will ensure that we deliver on our manifesto pledge of 200,000 starter homes. Those are the homes that we want to see—affordable for people to buy. I hope that, even at this late stage, the Labour party and the House of Lords will stop blocking this Bill.

[Jeremy Corbyn (Islington North) (Lab)]

Since we often celebrate great national events in this House, will the Prime Minister join me in wishing Sir David Attenborough a very happy 90th birthday and thanking him for the way in which he has presented nature programmes on television and awakened the ideas of so many people to the fragility of our ecosystem? He has educated a whole generation.

On this side of the House, we are fully aware—[Interruption.] I haven’t asked a question yet. We are fully aware that the European Union has strengthened workers’ rights in many ways. In March, while the Prime Minister was trying to undermine workers’ rights with his Trade Union Bill, the European Commission put forward proposals to close loopholes in the posting of workers directive that would stop employers exploiting foreign workers and undercutting national rates of pay. Will the Prime Minister confirm that his Government will protect workers and back these reforms to stop the undercutting and the grotesque exploitation of many workers across the continent?

[The Prime Minister]

First of all, I certainly join the right hon. Gentleman in wishing a very happy birthday to David Attenborough. Many of us in this House feel that we grew up with him as our teacher about the natural world and the environment. He is a remarkable man. I am proud to say that the royal Arctic survey ship will be named after David Attenborough. There was strong support for Boaty McBoatface. I think the submarine on the boat will be named Boaty McBoatface but, quite rightly, Attenborough will take top billing.

On the posted workers directive, we are looking at this matter closely and working with our partners. We see some merit in what is proposed. I can tell the right hon. Gentleman today that the yellow card procedure has been invoked by national Parliaments over this, demonstrating the importance of these sorts of safeguards, even more of which we achieved in my renegotiation. The best thing that we can do for workers’ rights in this country is to celebrate the national living wage, introduced by a Tory Government.

[Jeremy Corbyn]

The national minimum wage was introduced by Labour. The national living wage proposed by the Prime Minister’s friend the Chancellor is, frankly, a corruption of the very idea. It is not, in reality, a proper living wage.

My question was about the posting of workers directive proposals, which would prevent the grotesque exploitation by unscrupulous employers of workers being moved from one nation to another to undercut wages in the second nation. Will the Prime Minister be absolutely clear: will the British Government support this very important reform to stop this exploitation?

[The Prime Minister]

As I have said, we are working with the Dutch presidency. We think there is merit in a lot of the proposals, but we want to make sure we get the details right.

Let me pull the right hon. Gentleman up on something: he has just described the national living wage as “a corruption”. The national living wage is £7.20 an hour—a £20 a week pay rise for some of the poorest people in our country. I really think he ought to get up and say that he supports the national living wage, and thank the Government for introducing it.

[Jeremy Corbyn]

I support a wage rise, obviously. The point I am making is that it is not a living wage, as it is generally understood.

Yes seems to be one of the hardest words for the Prime Minister to say. For the third time, will he just say whether or not he supports the posting of workers directive? He might be aware that Patrick Minford, a former economic adviser to Margaret Thatcher, said that the European Union has a negative effect on the City of London and that he wants the “shackles” of European regulation removed. Does the Prime Minister believe that our membership hurts the City of London or does he believe that European Union regulation of the finance sector in Britain and British-administered tax havens help curb the sort of bad practice exposed by the Panama papers and underlined by my hon. Friend the Member for Wythenshawe and Sale East (Mike Kane) in his earlier question?

[The Prime Minister]

This is an area where we basically agree with each other about the European Union, so I will try to identify a question in that lot and answer it as positively as I can. First, I completely disagree with the economist Patrick Minford. He wants to see manufacturing industry in our country obliterated. It would be a disastrous step if we followed the advice that he gives. On the City of London, we need the right regulation for the City of London to continue its massive rate of job creation and wealth creation in our country, but we also need to remain members of the single market because it is absolutely vital for this important sector of our economy. I hope that on that, as on the issue of the national living wage, we can find some agreement between us.

[Jeremy Corbyn]

The question that I also put to the Prime Minister, which perhaps he was not listening to, was what he was going to do—[Interruption.] I asked what he was going to do about the UK-administered tax havens that receive large sums of money from dodgy sources, which should and must be closed down, as should any tax evasion in the City of London. We need a British Government who are prepared to chase down this level of corruption.

[The Prime Minister]

This Government have done more than any previous Government to make sure that our overseas territories and Crown dependencies are not tax havens, but behave in a responsible way. As I said earlier, they are now taking part in the automatic exchange of tax information—that did not happen before; they have signed up to a common reporting standard for multinational companies—that did not happen before; and they are getting central registries so that we can find out who owns the companies in each territory. All these things are real progress. Of course, we would like them to go further and have public registries of beneficial ownership, as we are introducing in this country, not because of anything a Labour Government did, but because of a decision by a Conservative Prime Minister. I urge the right hon. Gentleman to be fair on those territories and Crown dependencies: many of them have gone much further even than many developed countries. Indeed, you get more information now out of some of our Crown dependencies and overseas territories than you would get out of the United States—for example, Delaware. So let us be fair on the territories for which we have an obligation and a responsibility. We are making them improve their record and the right hon. Gentleman should acknowledge that.

[Jeremy Corbyn]

A month ago the Prime Minister informed the House that he welcomed the European Union proposals on country-by-country tax transparency reporting. We agreed with that, yet on 26 April Conservative Members of the European Parliament voted against these proposals. Did they not receive a memo from him or what? People expect that people pay their tax in this country. Tomorrow the European Parliament will be voting again on country-by-country reporting. Can the Prime Minister assure the House that Conservative Members of the European Parliament will support these measures, as he told us they would a month ago?

[The Prime Minister]

The most important thing is that we support these measures. This Government support the measures. These measures have come forward only because it has been a Conservative Government here in the United Kingdom proposing them. The only area of disagreement, I suspect, between the right hon. Gentleman and myself is that I do not think we should set a minimum tax rate for these countries. It has always been a position of Labour Governments and previous Conservative Governments that although we want to make sure that all these territories behave properly, we do not make them set a minimum tax rate. That is the difference between us. If he wants to swap voting records of Labour MEPs and Tory MEPs, let us have a whole session on it. I have plenty of material here.

[Jeremy Corbyn]

That was a very long answer—[Interruption.] The Prime Minister could simply have said whether or not he supports the proposals and whether his Conservative MEPs are going to vote for them.

The Prime Minister will be very well aware of the concern across the whole country about the question of unaccompanied child refugees across Europe. Their plight is desperate and they are in a very dangerous situation. Everyone’s heart reaches out to them, but we have to do more than that and we have to be practical in our help for them. I got a letter this week from a voluntary worker with child refugees by the name of Hannah. She wrote to me about these children, some of whom have family members in this country. Can the Prime Minister confirm that in response to Lord Dubs’ amendment, there will be no delay whatsoever in accepting 3,000 unaccompanied child refugees into this country to give them the support they need and allow them to enjoy the childhood that they and all our children deserve?

[The Prime Minister]

We will follow the Dubs amendment —that is now the law of the land. The Dubs amendment says that we have to consult very carefully with local authorities to make sure that, as we take these children in, we are able to house them, clothe them, feed them and make sure they are properly looked after. So we need to look at the capacity of our care system, because if you look at some councils, particularly in Kent and southern England, you see they are already struggling because of the large number of unaccompanied children who have come in.

Just two figures for the right hon. Gentleman, to put this in context. Last year 3,000 unaccompanied children arrived and claimed asylum in the UK, even before the scheme that is being introduced. The second figure is, under the Dublin regulation, children with a connection to the UK can already claim asylum in France or Italy and then come to the UK, and we have accepted 30 such transfers since February. What I can say about Dubs is that there will not be any delay—we will get on with this as fast as we can—but in order to follow the law, we have to talk to our local authorities first.

[Tom Pursglove (Corby) (Con)]

Q4. During President Obama’s recent visit, was the Prime Minister able to talk to him about the Chinese dumping of steel and the robust action he has been able to take in the United States to address it, including introducing tariffs of 288%? If so, was his advice, “Keep backing British steel, increase the tariffs and tell the Chinese to go to the back of the line”?

[The Prime Minister]

I did discuss this issue with President Obama, and both the US and the European Union have taken action against Chinese dumping. If you look at the figures, the excess capacity in China is around 25 times higher than the UK’s entire production. The anti-dumping tariffs we have produced in the EU have been very effective and, in some categories, have reduced Chinese exports by as much as 98%. So my hon. Friend should not believe some of the figures put around that the EU action does not work; it does work, and if we were outside the EU we might be subject to those tariffs ourselves.

[Angus Robertson (Moray) (SNP)]

The Prime Minister’s Government were elected with 37% of the vote, so I am sure he would acknowledge the success of Nicola Sturgeon and the SNP in being returned victoriously, for a third time, with 46% of the vote—the highest figure currently of any political party in national elections anywhere in western Europe.

On the anti-corruption summit, has the Prime Minister read the appeals from Nigerian campaigners who say that their

“efforts are sadly undermined if countries such as your own are welcoming our corrupt to hide their ill-gotten gains in your luxury homes, department stores, car dealerships, private schools and anywhere else that will accept their cash with no questions asked. The role of London’s property market as vessels to conceal stolen wealth has been exposed in court documents, reports, documentaries and more”?

What is the Prime Minister going to do about this?

[The Prime Minister]

I am delighted to congratulate Nicola Sturgeon on her victory in the Scottish elections, as I am sure the right hon. Gentleman would want to congratulate Ruth Davidson on her stunning performance. We have something in common, because the SNP has gone from majority to minority, while the Conservatives have gone from coalition to majority. Next week he can get up and ask me how we are getting on with ordering some more pandas for Edinburgh zoo—I think that would be a very positive development.

The question the right hon. Gentleman asks about the corruption summit is absolutely right: the whole point of holding this summit in London is to say that action is necessary by developed countries as well as developing countries. One of the steps we are taking—to make sure that foreign companies that own UK property have to declare who the beneficial owner is—will be one of the ways we make sure that plundered money from African countries cannot be hidden in London.

[Angus Robertson]

It would be helpful if the Prime Minister confirmed that that list will be publicly available and not just accessible for the police. Seeing as how he is prepared to lecture other countries on corruption and probity, will he explain why seven police forces in the UK have launched criminal investigations into Conservative MPs for potential electoral fraud? That is very serious, so how is it that a Conservative police and crime commissioner can serve in such a role while being under police investigation?

[The Prime Minister]

First, let us be clear about this anti-corruption summit. Nobody is lecturing anybody. One of the reasons this issue does not get addressed is that countries and politicians are too worried about addressing it knowing that no country is perfect—nor, indeed, is any politician. But I think it is right for Britain to take this lead, not least because we meet our 0.7% contribution on aid. I think we are entitled to raise this incredibly important issue. As to what the right hon. Gentleman says about the Electoral Commission, the whole point is that in this country the Electoral Commission is independent. When it comes to operational decisions by police forces, they are independent too. Long may that be the case: that is the hallmark of an incorrupt country.

[Henry Smith (Crawley) (Con)]

Q8. I know my right hon. Friend will want to join me in congratulating Katy Bourne, who was re-elected as the Sussex police and crime commissioner last week, topping the poll in Crawley for her work in helping victims. In that respect, will the Prime Minister commit to introducing a British Bill of Rights as soon as possible?

[The Prime Minister]

I am happy to make that commitment and let me join him in congratulating Katy Bourne and all successful candidates. I think what we saw in the police and crime commissioner elections—[Interruption.] In a minute. What we saw in the police and crime commissioner elections was a very large increase in turnout, sometimes as much as a 25 percentage point increase. I think this new role is bedding in well.

For the sake of completion, I am very happy to congratulate Carwyn Jones, whom I spoke to over the weekend, and Arlene Foster, who will be First Minister of Northern Ireland. I spoke to her and the Deputy First Minister yesterday. And I congratulate Sadiq Khan, who won a very clear victory in London. We all look forward to working with him for the benefit of Londoners.

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

Q3. When Hull was left out of the Government’s plans for the rail electrification of the north, Hull businesses got together and produced a privately financed scheme to do the work for the city of culture 2017. It has been with the Department for Transport for two years. Does the Prime Minister think that the Department for Transport’s attitude shows incompetence or indifference to the scheme that has been put forward with private money?

[The Prime Minister]

I think the hon. Lady is being slightly unfair on the Department, not least because passengers will benefit from 500 brand new carriages, and the removal of the outdated and unpopular Pacer trains. Some £1.4 million of investment is going into Hull station to be delivered before it becomes the UK city of culture. I understand that the Department for Transport is considering the case to complete the electrification between Selby and Hull. We make these investments because we have a strong economy and we are investing in our infrastructure.

[Andrew Stephenson (Pendle) (Con)]

Q9. I recently visited Silentnight in Barnoldswick. Its award-winning apprenticeship scheme has now created 40 full-time jobs. Will the Prime Minister join me in congratulating Silentnight on the success of its scheme, which has helped the company to expand, and allowed it recently to award all of its more than 1,000 employees with an additional £250 thank you bonus?

[The Prime Minister]

I am happy to join my hon. Friend in congratulating Silentnight. I remember visiting it with him in 2014. Back then, it employed 800 people. It now employs 1,100 people. That is a good example of a business expanding under this Government. It is a big backer of apprenticeships. Of course, our target is 3 million apprentices in this Parliament.

[Jess Phillips (Birmingham, Yardley) (Lab)]

Q5. Already in 2016, at least 46 women have been murdered in the UK. This number would be much higher if not for specialist refuges. I am standing to beg the Prime Minister to exempt refuge accommodation from the changes to housing benefit beyond 2017. This will certainly close services. I do not want to hear a stock answer about the £40 million over the next four years. He knows and I know that that will not stop refuges shutting. Will he exempt refuges? Will he choose to save lives—please?

[The Prime Minister]

The hon. Lady raises an important point. That is why we delayed the introduction of this change so that we could look at all the possible consequences and make sure we get it right so that we help vulnerable people.

[Mike Freer (Finchley and Golders Green) (Con)]

Q12. HIV infection rates in the UK are on the rise. My right hon. Friend will be aware that NHS England has refused to fund a pre-exposure prophylactic treatment. Will he agree to meet me and leading AIDS charities so that we can review this unacceptable decision?

[The Prime Minister]

It is right that my hon. Friend raises this. My understanding is that NHS England is considering its commissioning responsibility. I want it to reach a decision on this quickly—this month, if possible—because there is no doubt, as he says, that there is a rising rate of infection, and that these treatments can help and make a difference. We are planning trial sites that are already under way, and we are investing £2 million to support them over the next two years. But he is right to raise this, and I will make sure he gets the meetings he needs to make progress with it.

[Keir Starmer (Holborn and St Pancras) (Lab)]

Q6. In my first year as an MP, every other person coming to my constituency advice service surgery has been an anxious council tenant, usually mum, dad and two or three children living in a one-bedroom flat, and they are often in tears. They cannot afford to rent in the private market, they cannot afford to buy their council flat, and they absolutely cannot afford a starter home. Can the Prime Minister explain in practical and meaningful terms that I can read to them from Hansard when I go to my surgery on Friday why, in his view, the Housing and Planning Bill will not make their intolerable situation worse?

[The Prime Minister]

I would say to the hon. and learned Gentleman’s constituents that there is a series of things that I believe will help them. First, making sure that the right to buy is there for housing association tenants as well as council tenants, with the full discounts, makes a difference. Added to that, Help to Buy means that people need a smaller amount of equity to buy their house, and that helps too. Further to that, starter homes will make a difference because they will be more affordable. Added to that, shared accommodation homes means that where you previously needed a deposit of £30,000 to buy a house, you may be able to buy a house now for a just a few thousand pounds’ deposit. All of those things make a difference. And for those in estates that need regeneration, we are backing that regeneration, which never happened under a Labour Government.

[Craig Williams (Cardiff North) (Con)]

Q13. I am proud that this Government have delivered unemployment levels in my constituency at a record low of 1.6%. I am doubly proud that this Government have delivered the Cardiff city deal—a £1.2 billion investment in infrastructure. Does the Prime Minister agree, and does he share my eagerness now to see the M4 relief road, the eastern bay link, and electrification of the City and Valley lines delivered in Wales?

[The Prime Minister]

My hon. Friend is absolutely right to raise these issues, because the money is there, and now, frankly, with a new Welsh Government in place, we need the action, particularly on the M4, which is a vital transport artery. We have given the Welsh Government £500 million in increased borrowing powers. The delay in upgrading the M4 is damaging business in south Wales, and frankly it is high time that the Welsh Government got on with it.

[Roger Mullin (Kirkcaldy and Cowdenbeath) (SNP)]

Q7. The “Why young Syrians choose to fight” report claims that it is money rather than religious fervour that acts as a recruiter for Daesh. While the Syrian army pays about $100 per month, often late, Daesh can pay $300 a month, on time, due to its funding and sophistication. Does the Prime Minister agree that much more needs to be done to offer alternative economic avenues for Syrians, to disrupt flows of funding, and to undermine the brains behind Daesh?

[The Prime Minister]

I agree with what the hon. Gentleman says about the importance of economic development and aid, and that is why we have a very generous aid budget, but clearly right now in Syria it is very difficult to get aid support and development through. Where I take issue with him is that if we see this purely as Daesh recruiting people because it is paying them, we would miss the point that the cancer of Islamist extremist violence is damaging our world and our country not just in Syria but in other places too, and we have to understand the nature of that extremism if we are going to defeat it.

[Mr Alan Mak (Havant) (Con)]

Q14. Havant’s new Dunsbury Hill Farm business park will create about 3,500 new jobs. Will the Prime Minister join me in congratulating its first new tenant, Fat Face, and support job creation across Britain?

[The Prime Minister]

I certainly join my hon. Friend in congratulating business in his constituency on its expansion. The claimant count in his constituency has fallen by a staggering 52% since 2010, and we need to keep on with this by making sure that we are expanding the training and the apprenticeships that help people to get the jobs that are being created.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

Q10. The Prime Minister said as Leader of the Opposition that the UK was fast becoming a “surveillance state” with powers that would “cause concern under the most oppressive regimes”,and he promised to “sweep the whole rotten edifice away.”But he has completely U-turned, and his Investigatory Powers Bill proposes to retain a record of every website visited by anyone in the UK. Why has the Prime Minister changed from being the self-proclaimed defender of civil liberties in opposition to championing ineffective mass surveillance in government?

[The Prime Minister]

I completely disagree with the hon. Gentleman, and I hope that he will follow and listen to the debates that take place on this vital Bill. The fact is that if we want to make sure that we can keep our country safe, just as we have been able to see the communications data when two people talk to each other on a mobile phone or a fixed phone, the same has to be true if that conversation is taking place between people visiting an internet site. Is he happy for plots to be hatched, terrorism to be planned and murders to be arranged because people are using an internet site rather than a telephone? My answer to that would be no. We have got to modernise our capabilities to keep our country safe, and that is what this Bill is about.

[Geoffrey Clifton-Brown (The Cotswolds) (Con)]

My right hon. Friend said in November 2015:

“Access to the internet shouldn’t be a luxury; it should be a right”.

The accompanying press release went on to say that every home and business could

“have access to fast broadband by the end of this Parliament.”

Will my right hon. Friend say today, unequivocally—no ifs or buts—that this commitment will be honoured?

[The Prime Minister]

I am afraid my hon. Friend is going to have to wait for the Queen’s Speech, in which we will be setting out the next steps of how we make sure that access to this absolutely vital highway is there for all our citizens.

[Chris Law (Dundee West) (SNP)]

Q11. Will the Prime Minister give me a personal commitment to work with the Scottish Government to deliver funding for a Tay city deal for Dundee and the surrounding area?

[The Prime Minister]

I am very happy to give that commitment. I think city deals are working. They are working in Scotland, and I was very proud to be there with the Aberdeen city deal. I make the point that, obviously, city deals between the Scottish Government, the UK Government and the city concerned can only work if we are all part of one happy United Kingdom.

[Lucy Allan (Telford) (Con)]

Respected journalist Laura Kuenssberg has been subjected to an online hate campaign, which appears to be a sexist witch hunt to silence her. Increasingly, this is a tool used against people in public life by those who take an opposing view. Will my right hon. Friend condemn this kind of harassment, and will he work with media and social media platforms to preserve the right to speak freely without intimidation or hate?

[The Prime Minister]

We must be able to speak freely and we must have a robust and lively democracy, but some of the things that people say on Twitter, knowing that they are in some way anonymous, are frankly appalling. People should be ashamed of the sort of sexist bullying that often takes place.

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

Q15. Last week, London elected a new Mayor with an overwhelming mandate to tackle London’s housing crisis. It is a crisis that many of us fear the Housing and Planning Bill will make worse. Last April, the Prime Minister launched his manifesto, promising to replace sold council houses with affordable homes in the same area. Why, then, will he oppose an amendment to the Housing and Planning Bill this afternoon that would effectively implement last year’s manifesto commitment?

[The Prime Minister]

Let me again congratulate Sadiq Khan on his victory and say how much we are looking forward to working with him on the issues that matter to Londoners, whether it is transport, housing or keeping London safe. I put the question back to the hon. Lady: our Housing and Planning Bill means that every high-value property sold will mean two new affordable homes in London, so why is it that the Labour party here and in the other place are opposing something that will mean more houses, more affordable housing and more home ownership? That is the truth. They talk a good game, but, in the end, they are the enemies of aspiration.

[Jack Lopresti (Filton and Bradley Stoke) (Con)]

During military operations in Afghanistan, British forces were heavily reliant on locally employed interpreters, who constantly put themselves in harm’s way alongside our people. I saw with my own eyes during Herrick 9 just how brave these interpreters were. Does the Prime Minister agree that it is a stain on our country’s honour that we have abandoned a large number of them to be threatened by the Taliban? Some have been murdered and others have had to flee their homes, in fear of their lives. We owe the interpreters a huge debt of gratitude and honour, and we must provide safety and sanctuary for them here.

[The Prime Minister]

We debated and discussed around the National Security Council table in the coalition Government and then announced in the House of Commons a scheme to make sure that those people who had helped our forces with translation and other services were given the opportunity of coming to the UK. We set up two schemes: one to encourage that, but also another scheme, a very generous scheme, to try to encourage those people who either wanted to stay or had not been translators for a long enough period to stay in Afghanistan and help to rebuild that country. I think it is important to have both schemes in place, rather than simply saying that everyone in any way involved can come immediately to the UK. Let us back Afghans to rebuild their own country.

[Hywel Williams (Arfon) (PC)]

The Prime Minister has confirmed to me that should we leave the EU, the European convergence funding for the very poorest parts of Wales would of course cease. Will he now confirm that in such a case the UK Government would make up the difference?

[The Prime Minister]

The point I would make to the hon. Gentleman, as I would to anyone asking a question about what happens were we to leave, is that I do not think you can give a guarantee. I am a profound believer in our United Kingdom. I want to go on making sure that poorer regions and parts of our country are properly supported. If, as I think is the case, we find that our economy would be hit by leaving and our tax receipts would be hit by leaving, that is obviously going to impact the amount of funding that we can put into agriculture, research or, indeed, poorer parts of our country. That is why I think the safe, sensible and right option is to vote to remain in a reformed European Union.

[Philip Davies (Shipley) (Con)]

May I support the Prime Minister on his comments about Nigeria and Afghanistan, and ask him to stop pouring hundreds of millions of pounds of taxpayers’ money into those and other corrupt countries until they have cleaned up their act? While he is at it, will he tell us where he has the European Union in his league table of corruption, given that it has not had its accounts signed off for 20 years?

[The Prime Minister]

I thank, as ever, my hon. Friend for his help and support, and for his tips on diplomacy as well, which are useful given the past 24 hours. I would say to him that the leaders of countries such as Nigeria and Afghanistan are battling hard against very corrupt systems and countries. In both their cases they have made some remarkable steps forward, and that is why I am so keen to welcome them to the anti-corruption conference in London.

Where I part company with my hon. Friend is that I do not think it would be right to withdraw the aid that we give because, frankly, problems in those countries come back and haunt us here, whether they are problems of migration or problems of terrorism and all the rest of it. We are a country involved in a dangerous global world, and I see our aid budget, at 0.7%, alongside our defence budget, at 2% of our GDP, as ways of keeping us safe and prosperous in a dangerous world, as well as ways of fulfilling our important moral responsibilities.

[Several hon. Members rose—]

[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

Twenty seven years ago in my constituency, we saw the country’s biggest sporting disaster. It is clear that we will not have the full truth about Hillsborough until we have the full truth about Orgreave and the policing of the miners’ strike. Will the Prime Minister accept the call by the Orgreave Truth and Justice Campaign and initiate an inquiry?

[The Prime Minister]

My right hon. Friend the Home Secretary has met that group, is considering the points they have put forward and will come to her conclusions at the right time.

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

Business leaders in Cornwall, and indeed up and down the country, are awaiting news of progress on the decision about airport expansion in the south-east. Following this morning’s announcement by Heathrow airport that it now accepts all the Airport Commission’s recommendations, will the Prime Minister update the House on when we can expect a decision? Does he agree with me that a third runway at Heathrow offers the best opportunity for growth, jobs and the future prosperity of our country?

[The Prime Minister]

May I first—one of my many unforced errors in the past 24 hours—apologise to the hon. Member for Sheffield, Brightside and Hillsborough (Gill Furniss)? I should of course have welcomed her to the House of Commons and congratulated her on her by-election victory. She has lost no time in speaking up for her constituents in a very powerful and very accomplished way.

Let me say to my hon. Friend the Member for St Austell and Newquay (Steve Double) that, as we announced earlier this year, there are air quality issues that need to be resolved. We are on our way to working out how to resolve them, and when we do, we can come back to the House and announce what will happen next.

[Louise Haigh (Sheffield, Heeley) (Lab)]

My constituent’s mother was killed in 1981. At the time, it was covered up as a suicide pact, but 18 years later it was uncovered that she had actually been murdered by my constituent’s father and his mistress. I do not think that anyone in this House will be able to imagine the pain and suffering that she and her family have had to endure. They are now having to relive that pain, because ITV is dramatising their whole ordeal, completely against her wishes, using not only the real names of her family but her own real name. I have raised this with ITV and with Ofcom, and, as far as I can see, no rules have been broken, but does the Prime Minister agree that victims’ voices should have a far greater role in any account of their tragedy? Will he meet me and my constituent to discuss what more could have been done in this case and how we can strengthen regulation in future to protect victims?

[The Prime Minister]

I was not aware of the case that the hon. Lady rightly raises. I remember from my time working in the television industry that there are occasions when decisions are made that can cause a huge amount of hurt and upset to families. I will discuss this case with the Culture Secretary to bring it to his attention and see whether there is anything more—apart from the conversations that she has had with ITV and with Ofcom, which is a powerful regulator—that can be done.

[Mrs Anne Main (St Albans) (Con)]

Yesterday Lord Prior spoke up for vaping as a way of getting off cigarettes; so has the Royal College of Physicians. Why are we bringing in the Brussels diktat that says that we must include vaping in the tobacco directive?

[The Prime Minister]

I am happy to look at this issue closely. It is necessary to differentiate between smoking and vaping, because they have very different health effects. I actually think that that is what is being achieved, but I will look into this carefully and will write to my hon. Friend.

[Several hon. Members rose—]

[Tim Farron (Westmorland and Lonsdale) (LD)]

I am fantastically grateful to you, Mr Speaker. I heard the Prime Minister on two occasions this afternoon congratulate the new Mayor of London, Sadiq Khan, and I would like to repeat those congratulations myself. The Prime Minister did not, however, apologise for the disgraceful racist campaign the Conservative party chose to run in that election. Will he take the opportunity to apologise for deliberately dividing communities in order to win cheap votes?

[The Prime Minister]

It is a great way to end the Session—getting a lesson in clean campaigning from the Liberal Democrats.

Oral Answers to Questions

Lord Cameron of Chipping Norton Excerpts

Wednesday 27th April 2016 Commons Chamber

[Mims Davies (Eastleigh) (Con)]

Q1. If he will list his official engagements for Wednesday 27 April.

[The Prime Minister (Mr David Cameron)]

Yesterday marked a momentous day for the family and friends of the 96 victims of the Hillsborough disaster. Over the last 27 years their search for justice has been met with obfuscation and hostility instead of sympathy and answers. As I said to the House in 2012 about the Hillsborough independent panel’s report, it is wrong that the families had to wait for so long, and to fight so hard, just to get to the truth. I know that the whole House will want to join me in praising their courage, patience and resolve. They have never faltered in the pursuit of the truth and we all owe them a great debt of gratitude.

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

[Mims Davies]

I would very much like to associate myself with the Prime Minister’s important comments on the Hillsborough tragedy, along with Members on all sides of the House, and pay tribute to the victims and their families, and to the resilience of the campaigners who continue to strive for the truth in the pursuit of justice.

In my constituency of Eastleigh, the service that GPs provide is crucial to people’s daily lives, including at St Luke’s surgery in Botley—I have met the people at that surgery to highlight its important local value. Does the Prime Minister agree that the recent key announcement of £2.4 billion of funding for GPs is only possible because of a strong Conservative majority Government?

[The Prime Minister]

My hon. Friend is absolutely right. We made a choice to put £12 billion into the NHS in the last Parliament and £19 billion into the NHS in this Parliament. We want to see strengthened primary care. Our vision is of GPs coming together and having physiotherapists, mental health practitioners and other clinics in their surgeries, so that people can get the healthcare they need and we take the pressure off hospitals. That will only happen with a Government who keep investing in our NHS.

[Jeremy Corbyn (Islington North) (Lab)]

Yesterday, after 27 years, the 96 people who tragically lost their lives at Hillsborough, and their families, finally received the justice they were entitled to. I welcome the fact that the Prime Minister has apologised for the actions of previous Governments, and I join him in paying tribute to all those families who have campaigned with such dignity, steadfastness and determination, to get to the truth of what happened to their loved ones on that dreadful afternoon. I also pay a warm tribute to my hon. Friends the Members for Liverpool, Walton (Steve Rotheram), for Halton (Derek Twigg) and for Garston and Halewood (Maria Eagle), my right hon. Friend the Member for Leigh (Andy Burnham) and other MPs who have relentlessly campaigned with great difficulty over many years. I hope that the whole House will be united in demanding that all those involved in the lies, smears and cover-ups that have so bedevilled this whole inquiry will now be held to account.

Last week the Prime Minister told the House that he was going to put rocket boosters on his forced academisation proposals. This weekend, in the light of widespread unease—including among his own MPs—it seems that the wheels are falling off the rocket boosters, and that the Government are considering a U-turn. Will the Prime Minister confirm whether that U-turn is being prepared for or not?

[The Prime Minister]

Let me join the right hon. Gentleman in praising those who campaigned so hard and for so long to get justice for the victims of Hillsborough. This whole process took far too long, and it is right that we had the Jones report—I pay tribute to the right hon. Member for Leigh (Andy Burnham)—and responded to it. I also want to mention the former Attorney General, who took the case to the High Court for the Government himself, to argue for that vital second inquest.

On academies, I have not yet met a rocket booster with a wheel on it, but rocket science is not really my subject, and apparently it is not the right hon. Gentleman’s. I repeat: academies are raising standards in our schools, and I want a system where heads and teachers run schools, not bureaucrats.

[Jeremy Corbyn]

Well, there wasn’t much of an answer there. Will the Prime Minister tell the House—[Interruption.] If Conservative Members would be patient, they might hear the simple question that I am putting to the Prime Minister. Will he tell the House whether he will bring forward legislation to force good and outstanding schools to become academies against their wishes in the upcoming Queen’s Speech? Yes or no?

[The Prime Minister]

Obviously, I cannot really pre-empt what is in the Queen’s Speech, but on this one example I can help out the right hon. Gentleman. We are going to have academies for all, and it will be in the Queen’s Speech.

[Jeremy Corbyn]

We look forward to that, but there is still time for the U-turn that I am sure is at the back of the Prime Minister’s mind. It has been reported that the Government are considering allowing good local authorities to form multi-academy trusts. Ironically, that would give local authorities more responsibility for running schools than they have now, although the Prime Minister has previously suggested that local authorities are holding schools back. Why is this costly reorganisation necessary for schools that are already good or outstanding? Why is he forcing it on them?

[The Prime Minister]

As I said last week—this is good; I like repeats on television, and I am very happy to have them in the House as well—outstanding schools have nothing to fear from becoming academies, and indeed they have a lot to gain. Just because a school is outstanding or good does not mean that it cannot have further improvement. We want outstanding schools to help other schools in their area, often by being part of an academy trust. The right hon. Gentleman mentioned local authorities—[Interruption.] He has asked two questions so far, with two very clear answers. Third question, and third clear answer coming—[Interruption.] Simmer down. Perhaps if he could deal with the anti-Semites in his party, we would all be prepared to listen to him a bit more—perhaps we will come on to that.

Of course, there are lots of ways in which schools can become academies: they can convert and become academies; they can be sponsored by an outside organisation; they can work with other schools in the area; they can look at working with the local authority. Those schools that want to go on using local authority services are free to do so. I am very clear: academies are great and academies for all is a good policy. What we are now seeing from Labour, I sense, is that it is moving in favour of academy schools. Perhaps when the right hon. Gentleman gets to his feet, he can say: does he favour academies or not?

[Jeremy Corbyn]

The Prime Minister will be aware that repeats on television sometimes get more viewers than they did the first time round.

The chief executive of the largest academy chain in London, the Harris Academy, has warned that a far more fundamental thing that the Prime Minister should be worrying about, rather than whether schools should become academies or not, is teacher shortages. The academies do not want this; parents do not want it; teachers do not want it; governors do not want it; Conservative councils and MPs do not want it. Who actually does want this top-down reorganisation that he is imposing on our education system?

[The Prime Minister]

Okay. Question 4, answer 4: here it comes. The right hon. Gentleman asks who wants this. Let us start with Michael Wilshaw, the chief inspector of schools. I think he is someone worth listening to. He said that

“academisation can lead to rapid improvements…I”

firmly

“believe it is right to give more autonomy to the front line”.

The OECD has been in the news today, so let us try that. This should not be too controversial. The OECD states:

“I view the trend towards academies as a very promising development in the UK, which used to have a rather prescriptive education system”.

So it supports it. What about the endless academy trusts who support it?

The right hon. Gentleman asked another question, and, very keen for full answers—[Interruption.] If you shout, you will not hear the answer. He asked about teacher shortages, but the fact is that there are more school places and more teachers under this Government than there were under Labour. Why? Because we have got a successful economy, and we are putting it into our schools and our children’s future.

[Jeremy Corbyn]

There are, of course, still record numbers of children in over-sized and super-sized classes, and that is getting worse. If the Prime Minister is looking for support for his academisation proposal, he might care to phone his friends, the leaders of Hampshire, West Sussex and his own Oxfordshire county council, who are deeply concerned and opposed to it. He might care to listen to Councillor Carter, the Conservative chair of the County Councils Network, who said that

“the change will lead to a poorer education system”.

Why, then, is the Prime Minister pushing this through with so much opposition and concern, and when it is such a waste of money, when we should be investing in teachers and schools, not top-down reorganisation?

[The Prime Minister]

I am glad the right hon. Gentleman is quoting Conservative council leaders, and because they keep the council tax down and provide good services, I hope we will see more of them in 10 days’ time. To be clear on teacher supply, there are 13,000 more teachers than there were in 2010.

To give a wholly accurate answer to his fourth question, the right hon. Gentleman asked who else supports academies. Let me quote Helena Mills of the Burnt Mill Academy Trust. She said:

“I used to be very sceptical about, and resistant to, academy status. But during the process of developing the…Academy…I have been increasingly convinced that”

this

“is the way forward.”

That is what more and more people are saying. That is why 1.3 million more children are in good and outstanding schools. That is why almost nine out of 10 converter academies are good or outstanding schools. On this side of the House we are very clear: we back aspiration; we back opportunity; we back investment in our schools; we want every child to get the best. It is Labour that wants to hold back opportunity and have one-size-fits-all.

[Jeremy Corbyn]

A pattern seems to be developing. [Interruption.] It is quite simply this: the Prime Minister has a Health Secretary who is imposing a contract on junior doctors, against the wishes of patients, the public and the rest of the medical profession; and he has an Education Secretary who is imposing yet another Tory top-down reorganisation that nobody wants. When will his Government show some respect and listen to the public, parents and patients, and indeed to professionals who have given their lives to public service in education and health? When will he change his ways, listen to them and trust other people to run services, rather than imposing things from above?

[The Prime Minister]

I tell right hon. Gentleman the pattern that is developing: we can see 1.9 million more people being treated in our health service; and we can see 1.3 million more children in “good” or “outstanding” schools. That is the pattern that is developing: a strong economy, investing into our public services. The other pattern that I have noticed, standing at this Dispatch Box, is that I am on my fifth Labour leader—and if he carries on like this, I will soon be on my sixth.

[Byron Davies (Gower) (Con)]

Q2. The Government package to help potential buyers of the Tata Steel site in Port Talbot is substantial and befits the tremendous bipartisan endeavours this Government have undertaken to save the industry, and it stands in stark contrast with the distasteful, disrespectful comments of Labour’s policy adviser, who said that the steel crisis had been “good for Labour”. Is there any indication that the package could help expedite the sale of the site, which could provide the long-term viable future for Welsh steel, which we all hope for, and for the workers who live in my constituency of Gower?

[The Prime Minister]

I want to thank my hon. Friend for welcoming me to the Gower yesterday. Before coming to his constituency I visited Port Talbot, where I met the management and trade unions, and had a very constructive discussion. [Interruption.] I did actually meet the Conservative leader, Andrew R. T. Davies, who does an excellent job in the Welsh Assembly. [Interruption.] If the hon. Member for Rhondda (Chris Bryant) wants to be Speaker, he had better stop interrupting everybody, as it is not going to get him any votes—a little tip for him there. But the serious point is about the areas where we could help. We could help on power, on procurement and on the issue of pensions. There is a very constructive conversation going on, but I say again from this Dispatch Box that although I want to do everything we can to secure the future for not only Port Talbot but for Scunthorpe and for steelmaking in Britain we are coping with a massive oversupply from China and a collapse in prices. We must therefore do all we can. There is no guarantee of success, but if we work hard and get a proper sales process and get behind it on a bipartisan basis we can see success here.

[Angus Robertson (Moray) (SNP)]

Following the Hillsborough inquiry, we join in all the comments made so far in relation to the families and in paying tribute to all the campaigners for justice.

Last night, the Government were defeated for the second time in the House of Lords on the issue of refugee children being given refuge in the United Kingdom. Many Members of that House, like many Members of this one, in all parties, including on the Prime Minister’s own side, would wish us to do much, much more in helping provide refuge for unaccompanied children in Europe. Will the Prime Minister please reconsider his opposition and stop walking by on the other side?

[The Prime Minister]

I do not think anyone can accuse this country of walking on by in this refugee crisis. Let us be very clear about what we have done: first, we are taking the 20,000 refugees from outside Europe, which I think has all-party support; secondly, last week we announced the further 3,000—principally unaccompanied children and children at risk from outside Europe—whom we will be taking; and, thirdly, under our normal refugee procedures, last year we took more than 3,000 unaccompanied children. But where I disagree, respectfully, with their lordships’ House is that those people who are in European countries are in safe European countries. To compare—somehow—children or adults who are in France, Germany, Italy, Spain, Portugal or Greece with children stuck in Nazi Germany is deeply wrong, and we will continue our approach, which includes being the second largest donor country anywhere in the world in those refugee camps.

[Angus Robertson]

As in the 1930s, there are thousands—[Interruption.] Apparently, there is “no comparison” between thousands of children needing refuge in the 1930s and thousands of children in Europe at the present time—[Interruption.] Yes! Yes!

[Angus Robertson]

Europol estimates that 10,000 unaccompanied children in Europe have disappeared. This is an existential question about the safety of vulnerable children. The Prime Minister thinks that it is not the responsibility of the United Kingdom to help unaccompanied children in Europe, so I ask him: who has the moral responsibility for feeding them, clothing them, educating them and giving them refuge, if not us, and everyone in Europe?

[The Prime Minister]

Let me answer that very directly. First, any unaccompanied child who has direct family in Britain, on claiming asylum under the Dublin regulations, can come to Britain—and quite right too. But the right hon. Gentleman asked who was responsible for refugees. The answer to that question is the country the refugees are in. I want Britain to play our part, but we have to ask ourselves whether we do better by taking a child from a refugee camp, or taking a child from Lebanon, or taking a child from Jordan, than by taking a child from France, Italy or Germany. As I have said, to compare this with the 1930s is, frankly, to insult those countries, which are our neighbours and partners.

[Amanda Milling (Cannock Chase) (Con)]

Q3. ATP Industries Group, which is based in Cannock Wood, is one of Europe’s largest independent remanufacturers of automated transmission and vehicle electronics. Last week, it was given a Queen’s Award for innovation. It exports goods across the globe, and its international trade increased by more than 50% last year. Will my right hon. Friend join me in congratulating ATP, and will he tell us what the Government are doing to help exporters to reach new markets?

[The Prime Minister]

I certainly join my hon. Friend in congratulating ATP. It is very difficult to win a Queen’s Award for exports, so it does deserve praise. What we want to see in our country is this. We currently have one in five small and medium-sized enterprises that export, and if we could make it one in four, we would wipe out our trade deficit. We are encouraging that through the work of UK Trade & Investment, but, as I saw yesterday in south Wales, we are also encouraging it by encouraging reshoring: by encouraging the supply and components industries—including those that supply the automotive industry—to come back onshore and invest in Britain.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Q6. In my constituency, the Zielsdorfs have lived and raised their family in the small village of Laggan for many years. Despite their full co-operation, they face an uphill and fruitless battle with the Home Office. They have had their driving licences revoked, and they are being forced out of the community that they have served, and in which they have invested, by a technicality involving their business—the local shop. Will the Prime Minister look into this grossly unfair situation, and work with me to achieve justice for the family?

[The Prime Minister]

I will certainly have a look at that case. If the hon. Gentleman lets me know the names involved and the nature of the issues, I will make sure that the Home Office looks into it urgently.

[Ben Howlett (Bath) (Con)]

Q4. As the Prime Minister will know from getting stuck on his way into Bath just before the general election last year, my constituency is plagued by high air pollution levels and by congestion. Given the Government’s commitment to investing billions of pounds in infrastructure—something that the Labour Government failed to do in 13 years—will he consider committing himself to looking at the construction of the long overdue and much-needed missing A36/A46 link road to the east of my constituency?

[The Prime Minister]

My hon. Friend makes an important point. Some people think that if we care about air quality there is no room for any road building, but, of course, stationary traffic pollutes much more than moving traffic. We must make sure that the arteries that serve all our constituencies are open, and I will look carefully at what my hon. Friend has said. However, we should also recognise that air quality is improving. Nitrogen oxide levels have fallen by 17% over the last four years, and we want to do more by introducing the clean air programme.

[Mr Ben Bradshaw (Exeter) (Lab)]

Q11. With the United Kingdom facing its most momentous decision for a generation in eight weeks’ time, does the Prime Minister think it makes more sense to listen to all our closest friends and allies around the world, or to a combination of French fascists, Nigel Farage and Vladimir Putin?

[The Prime Minister]

I am glad the right hon. Gentleman takes the English pronunciation of Farage, rather than the poncey, foreign-sounding one that he seems to prefer—a thoroughly good thing. I think we should listen to our friends and our allies. Looking around the world, it is hard to find the leader of a country who wishes us well who wants us to do other than stay inside a reformed European Union.

[Tom Tugendhat (Tonbridge and Malling) (Con)]

Q5. The new ISAs announced in this year’s Budget are very welcome. They will help people to save for homes and for retirement. As my right hon. Friend will have seen in this morning’s City AM, hidden fees can strip as much as a third off the gains a pension could make over a lifetime. What are the Government doing to ensure that firms investing people’s hard-earned savings reveal all the fees they charge, so that people know exactly what they will pay and can choose the investment that is best for them?

[The Prime Minister]

My hon. Friend has fought a long campaign on this—and rightly so. One of the things that sap people’s enthusiasm for investing in savings products is a sense that they do not understand the fees and charges, and do not know how much they will get. Since last April, we have ensured that trustees of defined contribution pension schemes report charges levied on members. The Financial Conduct Authority is committed to making regulations with us during this Parliament to require the publication of more costs and charges. We have given ourselves the legal duty to do so, but I am sure he will push us all the way to make sure it happens.

[Marion Fellows (Motherwell and Wishaw) (SNP)]

Q12. The Prime Minister and his Government did next to nothing to save the Scottish steel industry; it was left to the Scottish Government to do that. The UK Government are now breaking the promises made by Tories and Labour to protect the Scottish shipbuilding industry. Why does the Prime Minister think that Scottish jobs are so expendable?

[The Prime Minister]

Frankly, the Scottish Government and the UK Government should work together. One thing we should work together on is procurement. It is worth asking how much Scottish steel was in the Forth road bridge—zero! None! Absolutely nothing! Yes. What a contrast with the warships we are building, which of course we would not be building if we had an independent Scotland. We back the steel industry with actions as well as words. [Interruption.]

[Mr Speaker]

Order. The House is excitable, but it must simmer down. We must hear the hon. Lady.

[Suella Fernandes (Fareham) (Con)]

Q7. Hatred and ignorance lie at the heart of anti-Semitism. When those in public life express such views they denigrate not only themselves but the institutions to which they belong. Will my right hon. Friend reassure the House of his commitment to fighting this vicious form of prejudice?

[The Prime Minister]

It is very simple: anti-Semitism is effectively racism, and we should call it out and fight it wherever we see it. Frankly, the fact that a Labour Member of Parliament, with the Labour Whip, made remarks about the “transportation” of people from Israel to America, talked about a “solution” and is still in receipt of the Labour Whip is quite extraordinary. The shadow Chancellor said about these people:

“Out, out, out. If people express these views: full stop they’re out. People might be able to reform their views and the rest of it. On this? I can’t see it…I’m not having it. People might say ‘I’ve changed my views’ – well, do something in another organisation.”

Frankly, there will be too many hours in the day before that happens to the MP in question.

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

Q13. My constituent Joseph Brown-Lartey was killed at the age of 25 by an 18-year-old driving a hire car without a licence at 80 mph in a 30-mph zone. The 18-year-old was convicted of causing death by dangerous driving and received a sentence of just six years, of which he will probably serve three. Two weeks ago, I, along with Joseph’s family, delivered a 20,000 signature petition calling for tougher sentences for causing death by dangerous driving. Does the Prime Minister agree that sentences for these crimes are too lenient? When can we expect to get a response to our petition and get justice for Joseph?

[The Prime Minister]

I have every sympathy with the family in question. I had an almost identical case in my constituency where a young girl was killed by a dangerous driver. The maximum sentence is 14 years, so the courts do have the ability to sentence longer, but I know what this means to the families. I am making sure that the roads Minister is looking again at all these issues relating to dangerous driving, and I will ensure that the case that the hon. Lady mentions is taken into account as well.

[Mike Wood (Dudley South) (Con)]

Q8. As the birthplace of the industrial revolution, Dudley is proud of its heritage, but we need economic stability to deliver a prosperous future. Will the Prime Minister come to launch the new enterprise zone in Brierley Hill and look at how we can attract more investment, create new jobs and develop the highly skilled workforce that our community needs?

[The Prime Minister]

I will look very carefully at whether I am able to do that, because we support the industrial regeneration of the black country. The truth is that enterprise zones have been a success. They have created nearly 25,000 jobs, attracted over 630 companies and secured £2.4 billion of private sector investment. The delivery of enterprise zones has involved a lot of hard work by local authorities. I pay tribute to them, and I wish my hon. Friend well in the black country.

[Judith Cummins (Bradford South) (Lab)]

Q14. Given the strategic and economic importance of the M62 corridor to the northern powerhouse, will the Prime Minister give me and the people of Bradford his commitment to the electrification of the Calder Valley line and lend his support to the great city of Bradford being a fundamental part of the proposed northern powerhouse rail network?

[The Prime Minister]

We have made commitments on the electrification of north-south lines and east-west lines. I will have to look very carefully at the hon. Lady’s proposal, but we want everywhere—Bradford included—to benefit from the northern powerhouse.

[John Stevenson (Carlisle) (Con)]

Q9. In Cumbria, nuclear matters. We have the nuclear legacy at Sellafield, defence work at Barrow and the prospect of serious investment in a new nuclear plant at Moorside. Given the apparent opposition to nuclear from the Opposition, will the Prime Minister confirm that the long-term decisions for nuclear power and defence will be made in a timely manner?

[The Prime Minister]

My hon. Friend is absolutely right to say that Cumbria depends to a large extent on jobs from the industries he mentions. We continue to invest in reprocessing procedures at Sellafield. As he knows, we are also looking at redeveloping our commercial nuclear industry, starting with the vital decisions at Hinkley Point, which could then have great benefits for other areas that want nuclear power stations. Barrow is home to the development of our nuclear submarines and we will hold a vote in this House to make sure that we renew Trident in full.

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

The Prime Minister has just suggested that child refugees who are alone in Europe are safe. Children’s homes are full in Italy and Greece, and more than 1,000 children will sleep rough alone tonight in Greece. How are they safe? Ten thousand children have disappeared in Europe. How are they safe? The agencies say that children are committing survival sex and that they are being abused and subjected to prostitution and rape. It is not insulting to other European countries to offer to help: they want us to help. So will he reconsider his position on Alf Dubs’s amendment before it comes back for a vote, and will he stop, through his attitude to lone child refugees, putting this House and this country to shame?

[The Prime Minister]

The right hon. Lady asks whether we are helping other European countries, and we are, not least with the £10 million we recently announced. The crucial point is this: how do we in Britain best help child refugees? We think that we help them by taking them from the refugee camps, taking them from Lebanon, taking them from Jordan and taking them when they come to this country. That is what we are doing. We have a proud record and nothing to be ashamed of.

[Nigel Adams (Selby and Ainsty) (Con)]

Q10. Several small businesses that I met in Tadcaster last week are being treated appallingly by insurance companies. Four months after the floods, claims have not been settled and renewal premiums are being hiked to astronomical levels. The Government have rightly helped to introduce the Flood Re scheme to help homeowners after flooding, but does my right hon. Friend agree that the same protection should be given to small business owners too?

[The Prime Minister]

I recognise the problem that my hon. Friend lays out. When my constituency was badly flooded, some insurance companies paid out quickly, but others were not so fast. When we look at what happened during the winter, we see that 82% of claims have been paid out, but if colleagues have specific examples the Secretary of State for Environment, Food and Rural Affairs will be interested to see them so that we can get on top of the insurance industry. We are looking specifically at whether we need a Flood Re-style approach for small businesses to ensure that they can get the insurance they need.

[Emma Reynolds (Wolverhampton North East) (Lab)]

Three years ago, my mother fell seriously ill while on holiday in France. Thanks to the French health service, she received excellent treatment and was unfortunately diagnosed with cancer, but she is doing well today thanks to our NHS. Millions of Brits travel to other EU countries every year and benefit, like my mum, from the European health insurance card. What would happen to the card should we vote to leave on 23 June?

[The Prime Minister]

May I, on behalf of the whole House, wish the hon. Lady’s mother well in her treatment from the NHS? The hon. Lady raises the important point that this is one of the benefits we now have. Many of us will have used it ourselves or with our own children, and think we can make the system even better as we are. It is for those who want to leave the European Union to explain whether, if we were to leave, we would still be able to access this and other such systems, which are very handy for people when going about their holidays.

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

Whatever the outcome of the EU referendum, does the Prime Minister agree that one thing that will never diminish is the mutual affection and admiration between Britain and our great ally, France? Given that connection, will he pay tribute to the people who fought and won the Normandy campaign, such as the late Captain Paul Cash, the father of my hon. Friend the Member for Stone (Sir William Cash), who was killed fighting in Normandy at the age of 26 having won the Military Cross, and Sergeant Peter Carne, who, at 93, is at Westminster today, and who built the Bailey bridges that enabled the breakout from the Normandy beachhead and will receive the Légion d’honneur in a typically generous gesture from our French allies?

[The Prime Minister]

I certainly join my hon. Friend in paying tribute to all those who served, particularly those who fell in that heroic campaign. One of the things I have been able to do as Prime Minister of which I am proudest was to go to the vigil on the 70th anniversary of our gliders preparing for the landings and to go to Gold beach to see the incredible work that was done. We should remember what they did and what it was that they gave their lives for, which was to achieve peace on our continent.

[Christian Matheson (City of Chester) (Lab)]

My constituent Debra has HIV, which she contracted via a partner who had received a contaminated blood transfusion. My constituent Neil has hepatitis, again from a contaminated transfusion, and he now needs a second liver transplant. Neither of them can hold down a full- time job because of their conditions’ catastrophic effects on their health, so they both absolutely rely on the support from the state that the Government now plan to slash in half. I simply ask the Prime Minister why the Government are so willing to attack people whose only mistake was to be unlucky.

[The Prime Minister]

What we said before the election was that we had set aside £25 million to help those who were infected with HIV because of contaminated blood. We have actually raised that since the election to over £100 million, and we are currently consulting all the groups about how best to use that money. We will actually be doing more than we said at the time of the election, which is necessary because these people have suffered through no fault of their own.

Senior Salaries Review Body

Lord Cameron of Chipping Norton Excerpts

Thursday 21st April 2016 Written Statements

[The Prime Minister (Mr David Cameron)]

The 38th report of the Senior Salaries Review Body is being published today. This makes recommendations about the pay of the senior civil service, senior military officers and the judiciary.

We understand the need to ensure that we are able to recruit, retain and motivate staff with the right skills and experience. However, pay restraint continues to be a key part of our plans to finish fixing the public finances. Senior public sector workers, like everyone else, will have to continue to play their part to ensure we deliver security for working people across the country. Moreover, the independent Office for Budget Responsibility estimates that 200,000 public sector jobs have been protected thanks to our average 1% pay policy.

Senior military officers

The Government have accepted the recommendation of a 1% increase to base military salaries for all 2-star officers and above with effect from 1 April 2016. The Government have accepted the recommendation that there is no change to the current pay differentials for senior medical and dental officers.

Judiciary

The Government have accepted the review body’s recommendation of a 1% salary increase for the judiciary.

Senior civil service

The report makes clear the need to take a more strategic approach to senior civil service reward, including better targeting of resources and greater focus on the total package. We welcome this analysis which will inform the civil service workforce strategy.

The Government have accepted in full the recommendation of the Senior Salaries Review Body to introduce an in-year contribution award scheme for up to 10% of staff within current cost limits. This will provide a closer link between pay and performance by enabling departments to provide instant financial recognition for outstanding contribution.

We recognise the concerns of the Senior Salaries Review Body on the pay overlap between delegated grades and the bottom of senior civil service pay band 1. The Government believe that individual departments are best placed to assess the pay position of individuals within their own senior civil service cadre, and indeed the needs of their own delegated grades, and to decide how to prioritise the resources available to address any pay issues.

We have therefore accepted in part the recommendation on raising minimum salaries. The Government accept the increase in minima for pay bands 2 and 3. For pay band 1, a £2,000 increase in the minimum salary would restrict the flexibility that departments have asked for to enable them to target the resources available. Instead, the Government will prescribe an increase of £1,000 and ask departments to give serious consideration to raising salaries by more based on their individual business needs.

Similarly, the Government have accepted in part the recommendation on a flexible framework for base pay awards, but do not support an across the board budget of 0.94%. Instead, as well as raising staff to the new pay band minima, departments should have the flexibility they have asked for to target the remainder of the 1% award to meet their own business needs.

This package of proposals for 2016-17 provides the right balance between necessary pay restraint and the need to recruit and retain people of the right calibre. It gives departments flexibility to target pay increases within the 1 % average award, enables them to reward outstanding performance and will help them to recruit and retain people in business critical roles.

Very senior NHS managers

The report recommends that the Department for Health determines what level of pay increase is appropriate for this year. Such very senior managers are mainly employed by national arm’s length bodies.

The Government have decided to request arm’s length bodies to target the use of the 1% pay award to address both specific local recruitment and retention issues, and reward individual performance.

We will also proceed with the roll out of the new arm’s length body executive and senior manager pay framework, as set out in our evidence to Senior Salaries Review Body.

We are grateful to the chairman and members of the review body for their work on this year’s report. Copies have been laid in the Vote Office, the Printed Paper Office and the Libraries of both Houses.

[HCWS693]

Staff Counsellor for the Security and Intelligence Services

Lord Cameron of Chipping Norton Excerpts

Thursday 21st April 2016 Written Statements

[The Prime Minister (Mr David Cameron)]

I have appointed Julian Miller as staff counsellor for the security and intelligence agencies. He will start in May 2016. He was deputy National Security Adviser in the Cabinet Office from 2010 until his retirement in 2015. Previous posts included Private Secretary to the Defence Secretary, Chief of the Assessments Staff in the Joint Intelligence Organisation and director strategy and resources in the Ministry of Defence.

Julian Miller succeeds Desmond Bowen, who has served as staff counsellor since April 2009. I would like to thank Desmond Bowen for his service over the past seven years and the support and guidance he has provided to the staff of the security and intelligence agencies during his tenure.

The position of staff counsellor for the security and intelligence agencies was created in 1987. It is a non-statutory appointment. The post holder is available to be consulted by any member of the agencies regarding matters of conscience about the work of their service, or a personal grievance or other problem which has not been resolved internally. Staff in certain other Departments closely involved in intelligence work are also able to consult the staff counsellor on matters of conscience about their work, provided that such matters arise from or are related to the individual’s access to intelligence.

[HCWS694]

Panama Papers

Lord Cameron of Chipping Norton Excerpts

Monday 11th April 2016 Commons Chamber

[The Prime Minister (Mr David Cameron)]

With permission, I would like to make a statement on the Panama papers.

Dealing with my own circumstances first, yesterday I published all the information in my tax returns not just for the last year, but for the last six years. I have also given additional information about money inherited and given to me by my family, so people can see the sources of income I have: my salary, the benefit in kind of living in No. 10 Downing Street, the support my wife and I have received as Leader of the Conservative party, the renting out of our home and the interest on the savings that I have. Since 2010, I have not owned any shares or any investments.

The publication of a Prime Minister’s tax information in this way is unprecedented, but I think it is the right thing to do. But let me be clear: I am not suggesting that this should apply to all MPs. The Chancellor has today published information on his tax return, in a similar way to the shadow Chancellor and the First Minister for Scotland. This begs the question of how far the publication of tax information should go. I think there is a strong case for the Prime Minister and the Leader of the Opposition, and for the Chancellor and the shadow Chancellor, because they are people who are or who wish to be responsible for the nation’s finances. As for MPs, we already have robust rules on Members’ interests and their declaration, and I believe that is the model we should follow.

We should think carefully before abandoning completely all taxpayer confidentiality in this House, as some have suggested. If this were to come in for MPs, people would also ask for a similar approach for those who ask us questions, those who run large public services or lead local government, or indeed those who edit news programmes or newspapers. I think this would be a very big step for our country. It certainly should not take place without a long and thoughtful debate, and it is not the approach that I would recommend.

Let me deal specifically with the shares my wife and I held in an investment fund or unit trust called Blairmore Holdings, set up by my late father. The fund was registered with the UK’s Inland Revenue from the beginning. It was properly audited, and an annual return was submitted to the Inland Revenue every year. Its share price was listed in the Financial Times. It was not a family trust; it was a commercial investment fund for any investor to buy units in. UK investors paid all the same taxes as with any other share, including income tax on the dividends every year.

There have been some deeply hurtful and profoundly untrue allegations made against my father, and if the House will let me, I want to put the record straight. This investment fund was set up overseas in the first place because it was going to be trading predominantly in dollar securities, so like very many other commercial investment funds, it made sense to be set up inside one of the main centres of dollar trading.

There are thousands of these investment funds and many millions of people in Britain own shares, many of whom hold them through investment funds or unit trusts. Such funds, including those listed outside the UK, are included in the pension funds of local government, most of Britain’s largest companies and, indeed, even some trade unions. Even a quick look shows that the BBC, the Mirror Group, Guardian Newspapers and—to pick one council entirely at random—Islington all have these sorts of overseas investments. To give one further example, Trade Union Fund Managers Ltd, based in Congress House, has a portfolio of over £50 million of investment in the trade union unit trust, with 3% of its net assets based in Jersey. This is not to criticise what it does; it is to make the point that this an entirely standard practice, and it is not to avoid tax.

One of the country’s leading tax lawyers, Graham Aaronson, QC, has stated unequivocally that this was

“a perfectly normal type of collective investment fund”.

This is the man who led the expert study group that developed the general anti-abuse rule—so much debated and demanded in this House—which Parliament finally enacted in 2013. He also chaired the 1997 examination of tax avoidance by the Tax Law Review Committee. He has said that it would be

“quite wrong to describe the establishment of such funds as ‘tax avoidance’”

and, further, that

“it would be utterly ridiculous to suggest that establishing or investing in such funds would involve abusive tax avoidance”.

That is why getting rid of unit trusts and other such investment funds that are listed overseas has not been part of any Labour policy review, any Conservative party policy review or any sensible proposals for addressing tax evasion or aggressive tax avoidance.

Surely, it is said, investors in these funds benefit from their being set up in jurisdictions with low or no taxes. Again, this is a misunderstanding. Unit trusts do not exist to make profit for themselves; they exist to make a profit for the holders of the units. Those holders pay tax, and if they are UK citizens, they pay full UK taxes.

It is right to tighten the law and change the culture around investment to further outlaw tax evasion and discourage aggressive tax avoidance, but as we do so, we should differentiate between schemes designed to artificially reduce tax and those that are encouraging investment. This is a Government—and this should be a country—who believe in aspiration and wealth creation. We should defend the right of every British citizen to make money lawfully. Aspiration and wealth creation are not somehow dirty words. They are the key engines of growth and prosperity in our country and we must always support those who want to own shares and make investments to support their families.

Some people have asked, “If this trust was legitimate, why did you sell your shares in January 2010?” I sold all the shares in my portfolio that year because I did not want any issues about conflicts of interest—I did not want anyone to be able to suggest that, as Prime Minister, I had any other agendas or vested interests. Selling all my shares was the simplest and clearest way that I could achieve that.

There are strict rules in this House for the registration of shareholdings. I have followed them in full. The Labour party has said it will refer me to the Parliamentary Commissioner for Standards. I have already given her the relevant information, and if there is more she believes I should say, I am very happy to say it.

I accept all of the criticisms for not responding more quickly to these issues last week, but, as I have said, I was angry about the way my father’s memory was being traduced. I know he was a hard-working man and a wonderful dad, and I am proud of everything he did to build a business and provide for his family.

On the issue of inheritance tax, there is an established system in this country. I believe that, far from people being embarrassed about passing things to their children—for example, wanting to keep a family home within the family—it is a natural human instinct to do so, and is something that should be encouraged. As for parents passing money to their children while they are still alive, that is something that the tax rules fully recognise. Many parents want to help their children when they buy their first car, get a deposit for their first home or face the costs of starting a family. It is entirely natural that parents should want to do those things, and, again, something that we should not just defend but proudly support.

Let me turn to the Panama papers and the actions that this Government are taking to deal with tax evasion, aggressive tax avoidance and international corruption more broadly. When we came into office, there were foreigners not paying capital gains tax when selling their UK homes, private equity managers paying a lower rate of tax than the people who cleaned their offices, and rich homebuyers getting away without paying stamp duty because houses were enveloped within companies. We have put an end to all those things. In the last Parliament alone we made an unprecedented 40 tax changes to close loopholes, raising £12 billion. In this Parliament we will legislate for more than 25 further measures, forecast to raise £16 billion by 2021. No British Government, Labour or Conservative, have ever taken so much robust action in this area.

Through my chairmanship of the G8 at the summit at Lough Erne in 2013, I put tax, trade and transparency on the global agenda, and sought agreement on a global standard for the automatic exchange of information over who pays taxes and where. Many said it would never happen, but today 129 jurisdictions have committed to implementing the international standard for exchange of tax information on request, and over 95 jurisdictions have committed to implementing the new global common reporting standard on tax transparency. Under that new standard, we will receive information on accounts of UK taxpayers in all those jurisdictions. In June this year, Britain will become the first country in the G20 to have a public register of beneficial ownership, so everyone can see who really owns and controls each company. This Government are also consulting on requiring foreign companies that own property or bid on public contracts to provide their beneficial ownership information, and we are happy to offer technical support and assistance to any of the devolved Administrations also considering such measures.

As the revelations in the Panama papers have made clear, we need to go even further. So we are taking three additional measures, to make it harder for people to hide the proceeds of corruption offshore, to make sure that those who smooth the way can no longer get away with it and to investigate wrongdoing.

First, let me deal with our Crown dependencies and overseas territories that function as financial centres. They have already agreed to exchange taxpayer financial account information automatically, and will begin doing so from this September. That never happened before I became Prime Minister and got them round the Cabinet table and said, “This must happen.” We need to go further, however, and today I can tell the House that we have now agreed that they will provide UK law enforcement and tax agencies with full access to information on the beneficial ownership of companies. We have finalised arrangements with all of them except for Anguilla and Guernsey, both of which we believe will follow in the coming days and months. For the first time, UK police and law enforcement agencies will be able to see exactly who really owns and controls every company incorporated in those territories: the Cayman Islands, British Virgin Islands, Bermuda, the Isle of Man, Jersey—the lot. That is the result of a sustained campaign, building on the progress that we made at the G8, and I welcome the commitment of the Governments of those territories to work with us and implement those arrangements.

The House should note that that will place our overseas territories and Crown dependencies well ahead of many other similar jurisdictions, and also—crucially—ahead of many of our major international partners, including some states in the United States of America. Next month we will seek to go further still, using our anti-corruption summit to encourage consensus not just on exchanging information, but on publishing such information and putting it into the public domain, as we are doing in the UK. We want everyone with a stake in fighting corruption—from law enforcement, to civil society and the media—to be able to use those data and help us to root out and deter wrongdoing.

Next, we will take another major step forward in dealing with those who facilitate corruption. Under current legislation it is difficult to prosecute a company that assists with tax evasion, but we are going to change that. We will legislate this year for a new criminal offence to apply to corporations that fail to prevent their representatives from criminally facilitating tax evasion. Finally, we are providing initial new funding of up to £10 million for a new cross-agency taskforce to swiftly analyse all the information that has been made available from Panama, and to take rapid action. That taskforce will include analysts, compliance specialists, and investigators from across HMRC, the National Crime Agency, the Serious Fraud Office, and the Financial Conduct Authority.

This Government will continue to lead the international agenda to crack down on tax evasion and aggressive tax avoidance. That battle is important and must be combined with the approach that we take in this country—low tax rates, but taxes that people and businesses pay. That is how we will tackle these issues and build a strong economy that can fund the public services we need. That strong economy, creating jobs and rewarding aspiration is the true focus of this Government—something that would never be safe under the Labour party—and I commend this statement to the House.

--- Later in debate ---

[Jeremy Corbyn]

Thank you, Mr Speaker.

I suggest that the Prime Minister’s record, particularly over the past week, shows that the public no longer have the trust in him to deal with these matters. Do he and Conservative Members realise why people are so angry? We have gone through six years—yes, six years—of crushing austerity, with families lining up at food banks to feed their children, disabled people losing their benefits, elderly care cut and slashed and living standards going down. Much of that could have been avoided if our country had not been ripped off by the super-rich refusing to pay their taxes.

Let me say this to the Prime Minister: ordinary people in the country will simply not stand for this any more: they want real justice; they want the wealthy to pay their share of tax just as they have to pay when they work hard all the time.

[The Prime Minister]

Let me first join the right hon. Gentleman in congratulating the journalists who have broken this story about this huge cache of information from the Panama papers. What matters now is that that information is shared with the tax authorities, including here in the United Kingdom, so that action can be taken.

The right hon. Gentleman accused me of a distraction, but I have to say that the biggest distraction today has been waiting for the right hon. Gentleman’s tax returns, which we finally got published at about 3.35 pm, after this statement had begun. How incredibly convenient that no one can scrutinise them.

Let me answer each and every one of the questions that the right hon. Gentleman asked. First, he asked whether we would resource HMRC with the right amount of money. We have put £1.8 billion into various initiatives since 2010 to make sure that it has the resources to find this money. That is the first point. Secondly, the right hon. Gentleman asked me about my entry in the Register of Members’ Financial Interests. I have complied with every aspect of that Register, and even before the Labour party’s complaint arrived at the commissioner’s door, I provided her with all the necessary information.

Thirdly, the right hon. Gentleman asked when I made the sale of these shares. I sold the Blairmore shares in January, and I sold everything else in June. Next, he asked me whether I shared a list of these shares with the Cabinet Secretary. It was quite difficult because I had sold them, but I sat down with the Cabinet Secretary and went through all my interests, all my connections, all my friendships and all my family, as all Ministers are advised to do. This was a proper conversation with the Cabinet Secretary that I conducted in that way.

Fourthly, the right hon. Gentleman asked why we were not extending the arrangements relating to the beneficial ownership of companies to the beneficial ownership of trusts. The reason is that we want international action to take place, and the very clear advice that I received was that if we included trusts in our initiative, we would not get any international action. This Government have done more than any other to lead the world and make co-operation happen.

The right hon. Gentleman asked about the tax taskforce. HMRC, the National Crime Agency and others will investigate all the information coming out of Panama, and they have operational independence. If they find people to prosecute, they prosecute them; if they find information of illegality, they act on it. They are independent operationally, and that is exactly what they will do. They will report to the Home Secretary and the Chancellor because we want to make sure that radical action is taken, but they have total operational independence. If the right hon. Gentleman is questioning the professionalism of the Inland Revenue, the National Crime Agency and the Serious Fraud Office, he should not be doing so.

Let me now answer the right hon. Gentleman’s last question, which concerned the action that we have taken in respect of the overseas territories and the Crown dependencies. No Government have done more to encourage them to take part in exchanging information, reporting tax information, and making sure that they give us the information on beneficial ownership. The leader of the Labour party has suggested that we should force them. How is he going to force them? What is he going to do? Have we finally found a potential Prime Minister who wants to give the Falkland Islands back to Argentina and invade Gibraltar? Is that what it has come to?

What we have seen are the Labour party’s true colours when it comes to inheritance tax. If you want to pass your home to your children, Labour will tax it. If you want to help your children, Labour will tax that. We have seen Labour’s true colours. It is the enemy of aspiration and the enemy of families who want to support each other, and that is the real lesson of today.

[Several hon. Members rose—]

--- Later in debate ---

[Mr Tyrie]

It is very good of you to give me the floor, Mr Speaker.

I do not think that the Prime Minister has done anything wrong, except, possibly, to comment on the Jimmy Carr case. Tax evasion is illegal and should be very vigorously pursued, if necessary with criminal prosecution and imprisonment. Tax avoidance is not illegal. If the Government or Parliament do not like it, there is no point in moralising. Does the Prime Minister agree that to deal with tax avoidance we need reform to close the loopholes, and vigorous tax simplification to ensure that there are fewer of them?

[The Prime Minister]

I am very glad that my right hon. Friend was detained before leaving the Chamber. I think that he is absolutely right. Tax evasion is illegal, and tax avoidance, if the Government disapprove of it, should be legislated against. That is the approach that we have taken. However, as I have said before and am happy to say again, there are some practices of very aggressive tax avoidance that I think do merit proper questions and then legislative action. To be fair to Jimmy Carr, as soon as it was pointed out that he was in a scheme to reduce his income artificially, he immediately changed his arrangements. He made that very clear, and I pay tribute to him for doing it.

[Angus Robertson (Moray) (SNP)]

Let me begin by welcoming the Prime Minister’s statement and the new measures that he has announced to deal with tax evasion and aggressive tax avoidance. I also welcome the publication of his tax information, and, indeed, his apology for the way in which he has handled it.

It is estimated that between $21 trillion and $32 trillion of private financial wealth is located, untaxed or lightly taxed, in tax havens around the world. Illicit cross-border financial flows are estimated at more than $1 trillion per year, which is 10 times more than the global foreign aid budgets combined. The Panama papers leak is so large that if one printed the files, the final document would be 650 million pages long. It is right that a special taskforce has been set up to go through the leaked information, and the Prime Minister was right to say that charges will hopefully follow if criminality can be proven.

The public are indignant here and around the world. People are rightly angered by the rules for normal taxpayers being different from those for a small ultra-rich elite, but we must ask ourselves whether the scale of the problem has been taken seriously, because it has quite patently not been thus far, domestically or internationally. The UK bears a particular responsibility given that the UK and its overseas territories and dependencies collectively sit at the top of the Tax Justice Network’s financial secrecy index.

In Scotland, we are confronted by the reality of a small number of landowners owning huge swathes of the country, many through tax havens. From Perthshire to Jura and across Scotland, land is owned through non-transparent firms based in tax havens such as Panama and the British Virgin Islands.

I want to ask the Prime Minister the following specific questions. Will he please revisit his decision not to co-operate fully with European Union partners on overseas trusts? To whom will the welcome register of beneficial owners across all British Crown dependencies and overseas territories be available and when? Will it be publicly available? If not, why not? Will the Prime Minister prioritise bilateral tax treaties with Panama and other tax havens as part of global efforts towards better co-ordination against tax avoidance, and will he regularly update this House on progress? Lastly, given that the UK Cabinet agrees Government policy on tax rules, potential loopholes and arrangements with tax havens, will he ensure that all his Cabinet colleagues confirm whether they have ever benefited through offshore financial dealings?

[The Prime Minister]

First of all, let me agree with the right hon. Gentleman that there is no doubt that some bad things are happening in some of these jurisdictions and countries in terms of the hiding of assets and wealth and the avoidance of tax. That is why we want our authorities to go through everything that they can to recover that money. However, just because those bad things are happening, we should not condemn the unit trusts that many investors, such as, as I have said, local government pension funds, trade union pension funds and—who knows—even the pension fund of this House, might well use as a totally legitimate way of investing and then paying tax. I want to make that point.

The right hon. Gentleman also said that we need as many criminal charges as possible. I of course agree with that, but we should not do down the civil action and civil penalties that Revenue and Customs can use. It has 1,100 cases going through and can charge up to 300% of the money.

On whether we have taken this agenda far enough, I would say that this is the first country in the G8 or the G20 to make tax and transparency the No. 1 issue at a G8 or a G20 summit. No one had done it before. We have now done it and it is permanently on the agenda and we see permanent improvements.

I do not think that the right hon. Gentleman is being fair on the Crown dependencies and the overseas territories. For years, there was a reputational and potentially real problem. They have done a huge amount to address that. They are now better placed than other similar jurisdictions. As I said, there are states in the United States of America that have less disclosure and transparency. Let us not be unfair on the Crown dependencies and overseas territories, which we—certainly on this side of the House—are proud to have as part of our family of nations.

As for Scottish trusts and transparency, we are happy to work with and help the devolved Administrations in every way we can. We are also happy to work with and are working with European partners on trusts. My point is that we would not have made any progress on beneficial ownership if we had included trusts in that debate in the G8, but we did make progress for the reason that we gave.

The right hon. Gentleman asked to whom the information about beneficial ownership in the Crown dependencies and overseas territories will be available. It will initially be available to law enforcement agencies, including, crucially, our own. These places are not producing public registers yet. I want them to, but let us be frank: only about three countries in the world, including Britain now, have these public ownership registers. If we had tried to push that on to the Crown dependencies straightaway, we would not have got nearly as far as we have got today. On tax treaties, I am keen that we sign as many as possible. On Cabinet Ministers, I think that the current rules for registering Members’ interests are right, but, as I have said, in the case of Prime Ministers and Chancellors we are going further.

[John Redwood (Wokingham) (Con)]

According to the official Office for Budget Responsibility forecasts, we are likely to lose £7.3 billion of tax revenue to multinational companies over the ensuing five years because they will sue us in court and get the European Court of Justice to overturn the taxes we wish to impose, and there is another £35 billion at risk. What can we do here to make sure those companies pay their fair amounts, which this Parliament wants but the ECJ does not?

[The Prime Minister]

We took a whole series of actions in the Budget, and of course we have the diverted profits tax, which is a tremendous weapon for making sure these companies pay their tax in the jurisdictions where they are rightly earning the money. This tool of being able to exchange tax information and having a common reporting standard, which is what we set in train in 2013, will make the biggest difference.

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

One of the main benefits of the journalism that uncovered the Panama papers was that it shone sunlight on areas where some people did not want it to go. The Prime Minister makes great play of saying that his Government have done a great deal to improve corporate tax transparency, but this is nowhere near enough. When is he going to step up and make sure that corporates publish their tax information so that everybody—the public—can see where tax is being paid?

[The Prime Minister]

I am not saying that we have a perfect record, but this Government have done more than any previous Government to make this happen. I will answer the hon. Lady very directly: of course our system is based on full disclosure by companies to the Revenue but with a basic deal of taxpayer confidentiality between companies and the Revenue. That is the way our system and most other systems work. That is why the common reporting standards and the exchange of information between tax jurisdictions is so important, to make sure that these companies are telling the truth to us and to other jurisdictions. Only when that happens will we be able to recover the money.

[Sir Eric Pickles (Brentwood and Ongar) (Con)]

The beneficial ownership register that comes into place in just over six weeks’ time, plus the announcement the Prime Minister has made on Crown dependencies and the new criminal act, will do much to deal with tax evasion. If the House will forgive me, let me say that it will do far more to ensure that the proceeds of crime and of terrorism cannot be laundered through this jurisdiction, which is to be welcomed. I think I should do a little ticking off here, because I know, personally, that we would not have got the agreement with the Crown dependencies without his personal intervention and without his being very tough, and he should be congratulated on that. Just fancy, it was actually delivered without a single shot being fired or the Leader of the Opposition putting boots on the ground!

[The Prime Minister]

What my right hon. Friend will remember from his time in government—he is doing a brilliant job as my anti-corruption lead—was that we got the Crown dependencies and the overseas territories around the table in the Cabinet room, on the same day as the trooping of the Colour, I believe, and said, “We have to make these changes. You don’t have to go all the way to publishing registers, although that is what we would like, but you have got to make this information available.” As he says, that will mean not only more tax paid, but greater ability to uncover corruption.

[Dame Margaret Hodge (Barking) (Lab)]

May I ask the Prime Minister some questions about his welcome announcement on Crown dependencies? First, have the British Virgin Islands, Bermuda and the Cayman Islands agreed to compile a register of beneficial ownership? Secondly, will HMRC have access to that register? Thirdly, if he does not succeed in getting those territories to publicly publish those registers, will he use his powers, through the Privy Council, to order the tax havens to publish them?

[The Prime Minister]

Basically, we have been asking the Crown dependencies to do three things: one is to exchange tax information, the second is to have a common reporting standard, and the third is to establish registers of beneficial ownership. They have now done all three, so the answer to the right hon. Lady’s first question—have they agreed?—is yes. We still need agreement from Guernsey and from Anguilla, but we hope that that will come in the coming days. The answer to her second question—will our Revenue have access to their register?—is yes, it will. The answer to her third question—will we force them to have public registers?—is we think they should; we think that that is the right way to go. But let us be clear: very few countries in the world—I think Spain, Britain and possibly one or two others—have public registers of beneficial ownership. Our Crown dependencies and overseas territories will now be far in advance of most other countries, so instead of attacking them, we ought to praise them and thank them for what they have done.

[Sir Alan Duncan (Rutland and Melton) (Con)]

Should not the Prime Minister’s critics just snap out of their synthetic indignation and admit that their real point is that they hate anyone who has even a hint of wealth in their life? May I support the Prime Minister in fending off those who are attacking him, thinking particularly of this place, because if he does not, we risk seeing a House of Commons that is stuffed full of low achievers who hate enterprise and hate people who look after their own family and who know absolutely nothing about the outside world?

[The Prime Minister]

I am grateful for my right hon. Friend’s support. We have a system for Members’ interests which was put in place at the end of 13 years of Labour Government. I think we should maintain that system. I do not want us to discourage people who have had a successful career in business or anything else from coming into this House and making a contribution. That is why I have said that for Prime Ministers and Chancellors, shadow Prime Ministers and shadow Chancellors, it is a different set of arrangements.

[Mr Dennis Skinner (Bolsover) (Lab)]

Does the Prime Minister recall that in the time after he became Prime Minister in the coalition, when he was dividing the nation between strivers and scroungers, I asked him a very important question about the windfall he received when he wrote off the mortgage of the premises in Notting Hill and did not write of the mortgage of the premises the taxpayers were helping to pay for in Oxford? I did not receive a proper answer then. Maybe “Dodgy Dave” will answer it now—[Interruption]—and by the way—[Hon. Members: “Withdraw!”]

--- Later in debate ---

[Sir Edward Leigh]

Shocking. However, there is a wider question that I would like to put to the Prime Minister, and it follows the question from the Chair of the Treasury Committee. As long as we have the longest tax code in the world after India, will not hard-working families always use legitimate ways to try to minimise their tax bill? Some of us have been arguing for years for a flatter tax system to merge rates. Let me give the Prime Minister a suggestion. The best way to stop people avoiding the payment of inheritance tax—that iniquitous tax—it is to abide by our manifesto commitment and abolish it.

[The Prime Minister]

I am grateful to my hon. Friend for his support. We met our manifesto commitment on inheritance tax, which was to exempt the family home. My hon. Friend is right that we need to simplify, but there are things moving in different directions. We want to simplify taxes, but when we see abuses occurring, we sometimes need to write new tax code to make sure that those abuses cannot be used, which can lead to complications. However, I am well aware of his general point, and I think he is right.

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

Will the Prime Minister now answer a question that both he and the Chancellor refused to answer a few years ago, and confirm that they both benefited personally from their cut to the top rate of tax? On the day that universal credit cuts mean that part-timers could be over £1,000 a year worse off, does he think that the several thousand pounds a year from which they both benefited is fair?

[The Prime Minister]

The information is contained in my tax return, which is in the House of Commons Library, and everyone can go and look at it. The key point is not only that since we reduced the top rate of tax from 50p to 45p we have not only raised more revenue, which we can spend on the public services that the right hon. Lady supports, but that the richest 1% in the country pay a higher overall percentage of income tax at 27%.

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

Will my right hon. Friend clarify again the fact that tens of millions of our fellow citizens benefit from tax-exempt investments, as most pension schemes do not pay tax on their investment income, which directly benefits hard-working people saving for, and receiving, pensions?

[The Prime Minister]

My right hon. Friend is absolutely right about that. I would reinforce the point that many millions of our fellow citizens own shares, and many people choose to make their investments through unit trusts, which are a relatively safe form of investment because they share the risk. Many unit trusts are listed in other countries—many of them now in Dublin—and they are set up in that way not to avoid tax but to make sure that the revenues are returned to the unit trust holder who then pays tax, which is the key point.

[Caroline Lucas (Brighton, Pavilion) (Green)]

Does the Prime Minister accept that the revelations last week that he intervened personally in 2013 to water down the effects of EU transparency rules on trusts damages his efforts to portray himself as some kind of champion of fair tax? Will he now commit to fully supporting EU transparency rules, including country-by-country reporting by corporations showing exactly how much profit they make and where?

[The Prime Minister]

Let me be absolutely clear with the hon. Lady. There were no EU proposals—the whole thing was based on a British proposal or initiative to encourage all countries to have registers of beneficial ownership. The EU then joined in and suggested extending it to trusts, and we pointed out that if that happened no one would take it up because trusts, as she knows, are set up for all sorts of reasons: the care of a disabled child, support for a local school—any number of things that are perfectly reasonable under English common law. The advice I had was that if we went for beneficial ownership of companies and trusts, the move that we have made, which is genuinely helping to change the world in that regard, would have completely failed.

[Mr Dominic Grieve (Beaconsfield) (Con)]

Will my right hon. Friend encourage the Leader of the Opposition to write to him to set out in detail the allegations he makes against him, either of breaking the law of propriety or the rules of this House? Having listened carefully to the Leader of the Opposition, I fail entirely to comprehend what he is going on about.

On a separate issue, I am glad to see my right hon. Friend stand up for the overseas territories. He will know that when I was Attorney General, I had quite a lot of dealings with the Attorneys General of the overseas territories in encouraging them to change their transparency rules. In fact, they showed themselves to be properly responsive to those representations. He may also agree with me that the overseas territories are entitled to provide financial services and not to be damned for trying to ensure the wellbeing of their own citizens.

[The Prime Minister]

My right hon. and learned Friend is absolutely right. What we have tried to do with the overseas territories is to say that there is a perfectly legitimate business of providing financial service, but they, like us, should be doing it on the basis of high standards, not low standards. I think that is an argument that they now accept and are carrying out, and we should thank them for it. As for the first half of my right hon. and learned Friend’s question, I listened to the right hon. Gentleman, and I am not sure I want to read all about it again in a letter because I do not think there is much to answer.

[Gavin Robinson (Belfast East) (DUP)]

One could be forgiven for believing that the only virtue was transparency, but privacy and equality are both important virtues that we value in this country. Does the Prime Minister agree that given the many thousands of opinion formers, policy formers and decision makers in this country paid publicly through private service companies, if we are to set any principle, it should be that with public finance comes public transparency—who is paid what by us, the taxpayers? If we can establish that principle first, we can have a wider discussion about transparency.

[The Prime Minister]

I agree with the first half of the hon. Gentleman’s question: there is a value in privacy. That is why I think we need a balance between what is disclosed and what is not disclosed. I have tried to set out the way forward today. On the hon. Gentleman’s point about private service companies, the Chancellor had something to say about that in the Budget. There is a case, particularly where public money is involved, for making sure that people declare these arrangements in the proper way. The changes that the Chancellor has spoken about will make sure that whether someone chooses to have a private service company or chooses to be self-employed, the amount of tax that they pay will be much more similar.

[Sir Edward Garnier (Harborough) (Con)]

I welcome the Prime Minister’s announcement that there will be a new criminal offence applying to corporations that fail to prevent their representatives from criminally facilitating tax evasion. That reflects the failure to prevent bribery offence which already exists under the Bribery Act 2010. There are nearly 40 other economic crimes listed in the Crime and Courts Act 2013, which are susceptible to deferred prosecution agreements. Will my right hon. Friend have discussions with the Ministry of Justice and the Law Officers to make sure that we can add not only the tax offence that he refers to but those other economic crimes, so that they can be dealt with under the “failure to prevent” system?

[The Prime Minister]

My right hon. and learned Friend has much expertise in this area. I think the point he is making is that as we set out these economic crimes—the Home Secretary has led the charge to ensure that we address this issue properly—we make sure that they are properly publicised, properly understood and then properly prosecuted. We need to make sure that the National Crime Agency and the Serious Fraud Office work together in the way that I know he was keen to see when he was doing that job.

[Rachel Reeves (Leeds West) (Lab)]

The Prime Minister says that he is leading on international efforts to crack down on tax evasion, so can he explain why he wrote to the then European Council President Herman Van Rompuy in 2013 and asked him to water down the impact of EU transparency rules by treating trusts differently from companies in anti-money laundering rules, despite warnings that such a move could create loopholes for tax dodgers?

[The Prime Minister]

With great respect to the hon. Lady, I have answered that question several times, most recently to the leader of the Green party. We were keen to get progress on the beneficial ownership of companies, and if we had accepted proposals to include trusts, that would have got completely bogged down and would not have made nearly the progress that we have made. We have got every G7 country and most G20 countries signing up to having action plans on beneficial ownership of companies. If we did that with trusts, my advice was that the whole thing would have slowed down to a trickle and we would not have got all the international co-operation and all the extra money that we are going to raise.

[Philip Davies (Shipley) (Con)]

As far as I am concerned, it is perfectly clear that neither the Prime Minister nor his father has done anything wrong at all. In his statement my right hon. Friend said that we must defend the right of every British citizen to make money lawfully. That is something that I agree with wholeheartedly, but it is slightly at variance with the description of people who have done just that as morally repugnant. Will the Prime Minister give us a promise that from now on he will uphold the rule of law and the view that the rule of law is what is important in this country, and not question the morality of people who act lawfully with regard to their tax arrangements?

[The Prime Minister]

I am grateful to my hon. Friend for his support, and I agree with what he says about the importance of enabling people to make money within the law; he is completely right that the rule of law is what matters overall. The simple point that I have often made, and which I will continue to make, is that of course it is tax evasion that is illegal, not tax avoidance. There are many ways that people avoid taxation, not least by putting money into a pension or an ISA, or by other perfectly legitimate ways of planning for their future, that of their family and all the rest of it. However, we have sometimes seen very aggressive measures—I mentioned some of them in my statement—such as putting properties in company envelopes in order to avoid paying stamp duty, where it is sometimes difficult for the Government to catch up quickly enough with the huge changes taking place. I think that a bit of leeway on that is necessary, but my hon. Friend is right: it is the rule of law that matters.

[Mr David Winnick (Walsall North) (Lab)]

Does the Prime Minister not realise that there is a world of difference between the vast majority of our constituents who pay their tax in the usual way, it being deducted at source or by other means, and the very rich tax spivs who use tax havens for obvious reasons? That is why the accusation is made about them and the people I have referred to.

[The Prime Minister]

Of course there is bad practice, not least in some of these jurisdictions, and that needs to be dealt with. That is what tax transparency, the sharing of information, the registers of beneficial ownership and all the rest of it are about. The other thing to recognise that happened last week is that the £11,000 personal allowance came in, so people can now earn £11,000 before having to pay any income tax at all. That completed our work of taking 4 million of the lowest paid people in our country out of income tax altogether.

[Alok Sharma (Reading West) (Con)]

The Prime Minister has paid his taxes and behaved perfectly properly, and I commend him for standing up to those who have sought to besmirch his father’s reputation and memory. Will he remind us how much extra money has come into the Exchequer as a result of his Government’s closing the loopholes that were set up under 13 years of Labour government?

[The Prime Minister]

The point is that we raised an extra £12 billion in the last Parliament, and we want to raise another £16 billion in this Parliament, stretching out to 2021 the figures that I gave. Also, by having a lower rate of corporation tax, we have actually seen more corporation tax come in. Low tax rates, but tax rates that people pay—those are our watch words.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

We have heard that the rule of law is paramount. The Government control what is legal and illegal in tax law. Can the Prime Minister guarantee that the law will make offshore tax dodging in all its forms illegal?

[The Prime Minister]

Evading tax is already illegal, whether it is done in the UK or elsewhere. The point that I have been making is that we need to have this information sharing and the ability to look at information in these jurisdictions, in order to see whether people have been evading tax, and that is what we are now getting. But we should not use that to say that it is wrong for people, trade unions, companies or pension schemes to invest in unit trusts listed in other countries, because that is a perfectly normal way of investing.

[Jake Berry (Rossendale and Darwen) (Con)]

May I congratulate my right hon. Friend the Prime Minister on bringing transparency to the office of Prime Minister by publishing his own tax return? Does he have any thoughts on whether that should be extended to former Prime Ministers, many of whom still receive public money? Personally, I would be very interested to see a tax return of one Mr T. Blair.

[The Prime Minister]

I have no proposals to make in that regard. I am not claiming to have some perfect record, but on becoming Prime Minister I cut the Prime Minister’s pay by 5% and froze it for the Parliament, I rejected the Prime Minister’s tax allowance of £20,000 a year, and I reformed the Prime Minister’s pension so that it is now contributory for the first time. As Mr Speaker knows, the Speaker, the Lord Chancellor and the Prime Minister have all given up the great offices of state pension that used to give half their salary in perpetuity—[Interruption.] Opposition Front Benchers say that that was done by the Labour party, but it was not actually brought in until I became Prime Minister. I did it. All those steps have been taken, which I think was the right thing to do.

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

Will the Chancellor of the Exchequer be clarifying the tax situation of his family company, Osborne and Little, which he holds shares in, but which has paid no UK corporation tax in seven years?

[The Prime Minister]

The Chancellor’s family firm is exactly the sort of manufacturing small firm we want to encourage in our country. For many years, I gather, it has not been making a profit, but I am glad that the company is doing well and now paying a dividend—that is something we should welcome. Its tax matters are entirely a matter between the company and the Inland Revenue, and that is the way it should be.

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

I join other Conservative Members in welcoming the Prime Minister’s statement this afternoon. When he meets world leaders in London this May for the first global anti-corruption summit, will he press them to agree actions to expose corruption, wherever it exists?

[The Prime Minister]

It is good that we are having this summit. As I am writing in a document that will be released before the summit, no country, no politician—no one—can claim that they have a perfect and unblemished record in this regard; all countries are battling against these problems, as we did in the House of Commons with the problems of expenses and all the rest of it. However, I want to encourage people, and the Prime Minister of Afghanistan and the President of Nigeria are contributing, and they are admitting that their countries are rife with corruption and it needs to be dealt with. The problem is that, if nobody actually stands up and talks about these issues and sets out the action plans for delivering on these issues, nothing will get done.

[Mr David Lammy (Tottenham) (Lab)]

At the last count, 36,364 properties in London were owned by offshore companies—that is one in 10 in one London borough and 7% in another London borough. We should know who owns those properties. Many believe that this is about dirty money from countries such as Russia and from the middle east. This is driving up costs, with a 50% increase since 2007. What is the Prime Minister going to do about dirty money propping up the London property market?

[The Prime Minister]

The first thing, which we have already done and which has had a huge impact, is to say that, if a company owns a property in a so-called envelope structure, so that we cannot get to the name of the person who owns that property, they have to pay an annual stamp duty charge of something like 15%. That has been a massive money raiser, providing money to spend on public services, and a huge disincentive for that sort of behaviour. However, I want to go further; as I said in my speech in Singapore, we need to have more information about who owns what in our country.

[Pauline Latham (Mid Derbyshire) (Con)]

May I thank the Prime Minister for his very clear statement? This afternoon, I received a furious email from Martin in my constituency, who said he watched the “Murnaghan” show on Sky News yesterday. He was shocked that the shadow Chancellor

“deliberately misled viewers...His ignorance, whether deliberate or not, should be exposed in Parliament. For a Shadow Chancellor to be so blatantly misleading is not acceptable. The Marxist Moron’s political motivations are obvious but not an excuse.”

He adds that the Prime Minister

“could not have paid inheritance tax even if he wished to as the tax is levied on the estate”—

[Alison McGovern (Wirral South) (Lab)]

No one in this House should have to feel that family members are being attacked unfairly, and, in that, the Prime Minister is absolutely correct. May I tell him, though, that it is not clear to me what he believes about holding shares in offshore trusts in tax havens? Does he think that that is perfectly okay, in which case, why would his holding them have been a conflict of interest, or does he think that tax havens are a problem that needs fixing, in which case, why did he have such shares in the first place?

[The Prime Minister]

That is a very good question. Let me answer it in full, because I think it is very important. Do I think it is okay to own shares in a unit trust that is registered in another country, whether it is in Dublin, Guernsey or elsewhere? Yes, I do. That is why trade unions, companies and pension funds hold such shares. Many people in our country hold unit trusts because—here is the key point—the unit trust does not exist to make money for itself; it makes money for the unit holders, and if the unit holders live in Britain they pay British tax, British income tax, British capital gains tax and all the rest of it. That is why these arrangements have been in place for many years and no Labour Government, Labour policy review or Conservative policy review has ever thought of getting rid of them. It is important that they are administered and run in the proper way. That is my answer to the hon. Lady’s first question.

The hon. Lady’s second question was why, if I thought there was nothing wrong with a holding like that, did I sell my shares because there might be a conflict of interest. I sold shares in every company that I owned, because I thought there were two options: you can either put things into a blind trust, as Ministers in Labour and Conservative Governments have done. There is nothing wrong with that—it is a very good way to go about it—but I thought it may be even simpler and more straightforward to just sell everything, because then I would not own any shares. So, if any of the companies in which I had previously had a shareholding had any dealings with the Government, there was no way that, even if somebody could look inside a blind trust, they could find any conflict of interest. That is why I sold the shares. I happen to think it was quite a sensible thing to do.

[Oliver Dowden (Hertsmere) (Con)]

Will the Prime Minister confirm that the only irregular thing about the summary of his tax return is the fact that he voluntarily and privately forsook the £20,000 prime ministerial tax-free allowance, which was enjoyed by many of his predecessors, including those from the Labour party? Instead, he rightly focused on increasing the personal allowance so that millions of low-income earners could avoid paying tax altogether. Will he pledge to continue that policy?

[The Prime Minister]

I am very glad to give my hon. Friend that reassurance. We have the target in our manifesto of a £12,500 personal tax allowance and we want to meet that. What I did as Prime Minister was the right thing, not least because, as it says in the information from my tax return, there is support for me and my wife from the Conservative party in terms of some of the costs and issues of travel and other things that you have to deal with as the leader of a party. I thought that was a better way of doing it—not taxpayers’ money, but party money, on which I pay a tax charge.

[John Mann (Bassetlaw) (Lab)]

Is it the right thing to do to claim expenses to live in a grace and favour apartment while at the same time making a big profit out of your own main home?

[The Prime Minister]

I am a little bit baffled by the hon. Gentleman, because he announced over the weekend that he was going to refer me to the Parliamentary Commissioner for Standards, so one of my office pitched up there this morning with all the information necessary, only to hear that the hon. Gentleman has not actually yet made a complaint. I hope he will find the time later to do what he said he was going to do.

I think the hon. Gentleman has misunderstood. I am very lucky to live in No. 10 Downing Street—actually, Nos. 11 and 12 Downing Street, to be precise. As a result, I receive a benefit in kind, which is calculated at, I think, some £7,000, and I pay a tax on that benefit in kind for living in the house. It is not a subsidy I am getting; it is a benefit, which I am very grateful for, and I give the taxman money in respect of it.

[Michael Fabricant (Lichfield) (Con)]

May I tell the Prime Minister that he should not be ashamed that he had the good fortune to be born into a well-off family, and that it is not a sin for his parents, quite naturally, to want their savings to be cascaded down through the generations? He has nothing to be ashamed about, but may I warn him that, no matter how much information he wants to divulge, nothing will satisfy some of those on the Labour Front Bench?

[The Prime Minister]

I am very grateful for what my hon. Friend says. I think there is a point at which you have to say that I have published the information that I think is relevant—I have gone back over the last six years —and that is the limit of what I am going to release. Some people say, “Well, what about your wife’s tax return and your mother’s financial affairs?” I really think that there comes a time when we should say that we have a register of Members’ interests. Prime Ministers and Chancellors and Opposition leaders and shadow Chancellors have done more than that, and we should rely on the register of Members’ interests to police the rest of our affairs.

[Wes Streeting (Ilford North) (Lab)]

Given that more than half of the companies implicated in the Panama leaks are registered in UK overseas territories and Crown dependencies, does the Prime Minister regret telling this House in 2013:

“I do not think it is fair any longer to refer to any of the overseas territories or Crown dependencies as tax havens”?—[Official Report, 9 September 2013; Vol. 567, c. 700.]

Could he try to rebuild some of the public trust he has lost in the last week by making sure that, particularly in terms of publishing information about beneficial ownership, Crown dependencies and overseas territories follow the UK’s example, and will he take concrete action by putting that at the centre of his own anti-corruption summit next month?

[The Prime Minister]

The reason why I made that statement in 2013 was that we had got the Crown dependencies and the overseas territories, for the first time, to share automatically tax information with the United Kingdom Government. That is something that did not happen under the last Labour Government. It is something that we achieved. It was a different approach. Now—the hon. Gentleman is right—we want to go further, and the announcement today set out that not only will they share that information and follow the common reporting standard, but they will give us access to their information about beneficial ownership.

Just so the hon. Gentleman knows how different things were under the last Government, the then Financial Secretary to the Treasury, in response to questions about the overseas territories, said this:

“The negotiation of tax information exchange agreements with other jurisdictions, including the UK, is essentially a matter for the Crown Dependencies themselves.”—[Official Report, 19 May 2009; Vol. 492, c. 1370W.]

He was saying, “Nothing to do with me, guv; it’s up to them.” That is the Government that we replaced. We took a different approach, and we have made a lot of progress.

[Richard Drax (South Dorset) (Con)]

Forgive my lack of voice. May I say that I totally understand the Prime Minister’s predicament and his instinct to protect his father? I would have done exactly the same. His father did nothing wrong whatsoever.

The Prime Minister mentioned the long and thoughtful debate that is to come. May I say most gently that, when public figures get into trouble, there should be no more knee-jerk reactions, and that a long and thoughtful debate should be had to avoid unnecessary consequences for everybody else?

[The Prime Minister]

I thank my hon. Friend for his support. He makes an important point, which is that we should try to make decisions about these things calmly and rationally after debate. I felt, after all the questions that I was being asked, that the right thing to do was to publish the information, but I could not have made it clearer today that I do not want to see that as some precedent that every Member of this House, or indeed every member of my Cabinet, has to follow. We should think very carefully. We have always had a system in this country based on full disclosure to the Revenue but taxpayer confidentiality. Some other countries have complete publication of all tax returns and all tax information. That has not been our way. We have had a different system, and I do not think that we should give it up lightly.

[Caroline Flint (Don Valley) (Lab)]

It saddened me that the right hon. Member for Rutland and Melton (Sir Alan Duncan) seemed to suggest that, if someone was not a millionaire, they were a low achiever. Speaking as a low achiever—[Laughter.] The biggest multinational company earns more in a single week than the incomes of all MPs combined. The Prime Minister has spoken before about transparency, and he did so again today. Many of us across the House, from all parties, want to make sure that the country-by-country information that multinationals will be obliged to provide to HMRC will be put in the public domain. Will he or a Minister meet me and other members of the Public Accounts Committee to discuss that proposal?

[The Prime Minister]

I have always thought of the right hon. Lady as a high achiever. She certainly put the boot into my predecessor more effectively than I ever did. I remember that very well.

[Chris Bryant (Rhondda) (Lab)]

Michael Howard?

[The Prime Minister]

No, not that one. The point about country-to-country reporting is that what we are trying to achieve, as I said in my opening statement, is a common reporting standard, so that companies report to tax authorities in the same way; and the sharing of that information, so that we can see whether company A is paying x amount of tax in one jurisdiction and y amount in the other, and if that is not right, we can do something about it. That, at the moment, is the most powerful way of achieving what we want to achieve. There are those who say that we need to go even further in public declarations of tax. That is a very interesting argument, but let us not make the best the enemy of the good. We have got a very solid way now of making sure that these companies pay tax properly, and I want to see that completed.

[Mr David Nuttall (Bury North) (Con)]

Does my right hon. Friend agree that any course of action designed to reduce tax that does not constitute tax evasion must, by definition, be legal, even if some may regard it as aggressive tax avoidance? It is up to this Parliament to legislate to make such courses of action illegal.

[The Prime Minister]

My hon. Friend is absolutely right. Where there is aggressive avoidance taking place that is clearly against the spirit of the law, Parliament should act. As I have said many times, that is what the Chancellor has done, and that is what HMRC advises us about. I think that sometimes there are occasions when the tax avoidance is so aggressive that it is right to warn those taking part in it that legislation will follow, and therefore they should not take part in the scheme in the first place. That often happens.

[Stuart Blair Donaldson (West Aberdeenshire and Kincardine) (SNP)]

The Prime Minister has described the tax arrangements being discussed today as standard practice and normal. Assuming we are still all in this together, will he issue guidance—perhaps in the form of a leaflet to every UK household—so ordinary taxpayers can find out how they, too, can benefit from offshore tax havens?

[The Prime Minister]

The point is that there are many people in our country—I think there are now over 12.5 million shareholders—who hold shares in things such as unit trusts. There is plenty of information about them, and they do not need any from me. The point is that, if you invest in one of those and you are a UK resident, you must pay UK income tax and UK capital gains tax, just as you would if you buy a share in any other organisation.

[Robert Jenrick (Newark) (Con)]

I would not recommend doing this, but, having read back through Hansard over the 13 years of the previous Labour Government, I could not find a single occasion on which the right hon. Member for Islington North (Jeremy Corbyn) raised any of these issues. The closest he came was when he described the Labour Government’s decision to use Orders in Council to take control of the Turks and Caicos Islands as “mediaeval” and “extremely undemocratic”, but he now advocates that policy for all territories. Is it not fortunate that after 2010 we had a Government who actually took up this agenda?

[The Prime Minister]

I am interested to see that the right hon. Gentleman has conducted a U-turn because recently he has been suggesting taking control of these territories. I can now see a use for the nuclear submarines as they head off towards the Isle of Man, and as the Corbyn invasion force begins to mass to take over this territory. It is much more sensible to get them to do the things they ought to be doing.

[Liz Kendall (Leicester West) (Lab)]

Why does the Prime Minister think so many companies are registered in Panama in the first place, not in London or New York?

[The Prime Minister]

The reason why a lot of unit trusts register in different countries—a number of them have been named; right now, many of them are registering in Dublin—is that they want to be able to market their services not simply to UK residents, who pay UK taxes, but to other people. That is why, if we look at the Inland Revenue and the way it arranges this, it actually wants to make sure that UK fund managers can be involved and pay their taxes in the UK, and we can build the investment industry that this country can rightly be proud of.

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

May I thank my right hon. Friend for his open and frank statement today? In the mind of any reasonable person, he has completely exonerated himself. Will he confirm that, under HMRC rules, all supporting documentation for a tax return should be retained for seven years? Since the Leader of the Opposition was late supplying his tax return, should he be fined?

[The Prime Minister]

There is obviously no fine for the fact that the right hon. Gentleman did not come to the House having already published it, although it was disappointing that we got it at 3.35 pm, when I was on my feet. Obviously, the matter of fines for late production of tax returns is a matter for HMRC.

[Paul Flynn (Newport West) (Lab)]

In 2013, the Prime Minister’s colleague Lord Blencathra was found guilty of an egregious breach of the Commons and Lords rules for misleading a Committee of inquiry in 2011 and for taking £10,000 a month as payment for lobbying for the Cayman Islands. He had no punishment from his party, and was allowed to get away with it, with a brief apology to the House of Lords. Will the Prime Minister tell us whether, if in future any parliamentarian in his party uses and prostitutes his privileged position in order to make a private gain, he will act and discipline them?

[The Prime Minister]

The point is that we now have rules in the House for the declaration of Members’ interests; we have a policeman, as it were, in terms of making sure that they are properly carried out; and we do have punishments, including expulsion, for misdeclarations and misbehaviour. I am not as familiar with the situation in the House of Lords, but I think it has been moving in the same direction and that is all to the good.

[Ben Howlett (Bath) (Con)]

While the conversations about Panama are no doubt interesting to Opposition Front Benchers, one reality check is that most of my constituents who are struggling to get on to the property ladder actually benefit from inheritance as a result of a lot of the tax changes that happened during the previous Parliament. Does my right hon. Friend agree that now is the time to reform inheritance tax further to help more people, mainly those of my age, to get on to the property ladder?

[The Prime Minister]

There is a role for making sure that people can pass on the family home exempt from inheritance tax. That is why we have set out steps during this Parliament to make sure that can happen, completing what was set out in our manifesto.

[Clive Efford (Eltham) (Lab)]

The public would be more inclined to take the Prime Minister at his word when he says that he wants to clamp down on tax avoidance had his Government not appointed Edward Troup as executive chair of Her Majesty’s Revenue and Customs in 2012. This is someone who said:

“Taxation is legalised extortion and is valid only to the extent of the law.”

Will the Prime Minister say what source of money he got to pay Mr Troup? Does someone with those views belong in HMRC?

[The Prime Minister]

Edward Troup is a dedicated public servant who does a very good job for HMRC. As reports in the papers this morning pointed out, he had a commercial career at Simmons and Simmons, one of the most respected City legal practices there is. Frankly, it is a good thing if we can attract people from private practice into HMRC to make sure that we collect all the money we should.

[Mark Spencer (Sherwood) (Con)]

Will the Prime Minister assure the House that any future changes to taxation will do nothing to diminish the aspiration of working families, so that those families who want to do the right thing—provide for their future, save for their retirement and pass something on to their children—can continue to do so?

[The Prime Minister]

My hon. Friend is absolutely right. Our reforms to inheritance tax and pensions are enabling people to take and spend more of their own money as they choose. People are also able to pass that money on to their children and to help with those key purchases such as the first home or the first car, helping young people with their families. Having all of that wealth cascading down the generations, and helping people to do that, is absolutely part of our goal.

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

I welcome, of course, the Prime Minister’s announcement that people will be criminalised if they assist with tax evasion, particularly as that was announced by the then Chief Secretary to the Treasury, Liberal Democrat Danny Alexander. Will the Prime Minister revisit other Liberal Democrat proposals put forward in coalition to see whether they can also play a significant role in dealing with the really difficult issue of tax evasion?

[The Prime Minister]

It is certainly true that the coalition Government achieved a lot in this area. That agenda was led and driven by myself and the Second Lord of the Treasury, in particular at the G8 and the G20, but at the time we had the full support of our coalition partners.

[Helen Whately (Faversham and Mid Kent) (Con)]

I welcome my right hon. Friend’s statement, and I listened carefully to the Leader of the Opposition. Does the Prime Minister share my concern that the Leader of the Opposition seemed to forget—possibly he is unaware—that aspiration, determination and the prospect of eventual financial reward are ingredients of our strong economy, leading to jobs and incomes for many? Does my right hon. Friend agree that we should condemn the politics of envy, and will he stick to the politics of opportunity and aspiration?

--- Later in debate ---

[The Prime Minister]

My hon. Friend is absolutely right. We want an aspiration and enterprise society, in which we set low tax rates and encourage people to make the best of themselves, for their families. That will build not just a stronger economy but, in my view, a stronger society.

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

The Prime Minister referred to his anti-corruption summit. Will he tell us which countries will be represented there? Will an invitation be extended to either President Putin or some of his corrupt cronies, and those who fund the RT propaganda channel, to explain the $2 billion held in Panama by that corrupt regime?

[Mr Speaker]

The hon. Gentleman has been restored to rude health. I welcomed him earlier, and I know that the Prime Minister will welcome him.

[The Prime Minister]

I am glad to see the hon. Gentleman back in his familiar place. It is fair to say that the guest list for the anti-corruption summit is still being worked on. The point is that we will ask people not on the basis that they run perfect countries or perfect Governments but on the basis of whether they will commit to public declarations on things like open beneficial ownership registration, sharing tax information, and making sure that when assets are looted we can confiscate them and restore them to the people they belong to. If countries want to sign up to that, we will be encouraging them to come and do just that, however imperfect their record may have been in the past.

[Mark Menzies (Fylde) (Con)]

My mother spent 32 years working in an ICI factory. She is 81 and, like the Prime Minister’s mother, she has lost her husband and wants to hand some of that money down to the next generation. Some remarks from over the past few days must have been deeply hurtful to the Prime Minister, and I urge him to tell the House what message we want to send to millions of people in our constituencies who want to do the right thing by the next generation.

[The Prime Minister]

I am grateful for my hon. Friend’s remarks, and I am sure that my mother will be too. She said that like me, she is developing a thicker skin with every week that goes past. He is right to say that many people want to pass down wealth, assets and help their children in all the ways they can. That is not something we should be ashamed of; it is something that we should actively encourage, because it can help to build the strong society that we want in our country.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

The Prime Minister acknowledged in his statement that under current legislation it is difficult to prosecute companies that assist with tax evasion, and I and many others—including the right hon. and learned Member for Harborough (Sir Edward Garnier)—would add fraud and corruption to that list. The Government promised in their manifesto to extend the new corporate offence to deal with all economic crime, not just tax evasion. Will the Prime Minister commit today to reviewing urgently the current position, and to extend the offence of tax evasion to incorporate fraud and corruption?

--- Later in debate ---

[The Prime Minister]

The hon. Lady makes an interesting suggestion that I will consider carefully. We have announced our proposal, and identified an opportunity in the Gracious Speech to include that measure in a future Bill. At that time we can consider an extension and a tidying up of the offences so that they can be used in the same way, and I will look carefully at what she suggests.

[Several hon. Members rose—]

Machinery of Government Change: Environmental Regulatory Functions

Lord Cameron of Chipping Norton Excerpts

Thursday 24th March 2016 Written Statements

[The Prime Minister (Mr David Cameron)]

This written statement confirms that responsibility for environmental regulatory functions will transfer from the Department for Business, Innovation and Skills to the Department for Environment, Food and Rural Affairs. This change will be effective from 1 April 2016.

[HCWS658]

Oral Answers to Questions

Lord Cameron of Chipping Norton Excerpts

Wednesday 23rd March 2016 Commons Chamber

[Sir Peter Bottomley (Worthing West) (Con)]

Q1. If he will list his official engagements for Wednesday 23 March.

[The Prime Minister (Mr David Cameron)]

Adrian Ismay, a Belfast prison officer, died last week as a result of injuries caused by a bomb placed under his vehicle. A murder investigation is under way, and one man has been charged in connection with the attack, but we should today offer our condolences to the family and friends of Mr Ismay.

Let me also update the House on yesterday’s terrorist attacks in Brussels. Details are still emerging, but our understanding is that at least 34 people were killed and many others injured. Daesh claimed responsibility for the attacks, which follow the horrific suicide bombing that they carried out in Istanbul on 19 March. We are aware of four British nationals who were injured in the attack, and we are concerned about one missing British national.

We face a common terrorist threat, and I am sure that the whole House will join me in expressing our full solidarity with the people of Belgium following these terrible attacks. I spoke to the Belgian Prime Minister, Charles Michel, yesterday to pass on our condolences. Our police and agencies are doing everything they can to support the investigation. In this country, we have increased police patrols and border screening. My right hon. Friend the Home Secretary will make a statement later setting out all the steps that we are taking.

Britain and Belgium share the same values of liberty and democracy. The terrorists want to destroy everything that our two great countries stand for, but we will never let them.

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

[Sir Peter Bottomley]

Bombers, everywhere and every time, aim for publicity, public reaction, and disunity. Can we disappoint them by uniting for hope, not hate?

[The Prime Minister]

My hon. Friend is absolutely right to say that. These people packed their explosives with nails in order to kill as many innocent people, including women and children, as they possibly could. We should unite in condemnation of them, and we should stand with the people and the Government of Belgium and with all countries that are being afflicted by this appalling terrorist menace, and say that they shall never win.

[Jeremy Corbyn (Islington North) (Lab)]

I support the words that have just been said by the hon. Member for Worthing West (Sir Peter Bottomley) and the Prime Minister, in solidarity with the people of Belgium and the victims of the horrific attacks that have taken place in Brussels, and also in Ankara, in the last few days. We pay respect and tribute to all their families and friends, and we pay enormous respect to the emergency services of all denominations for the huge amount of work that they have done to try to save life. We must defend our security and values in the face of such terrorist outrages, and refuse to be drawn into a cycle of violence and hatred. We take pride in our societies of diverse faiths, races and creeds, and will not allow those who seek to divide us to succeed.

My right hon. Friend the Member for Leigh (Andy Burnham) will respond, on behalf of the Labour party, to the statement that the Home Secretary will make at 12.30 pm.

I also join the Prime Minister in sending my deepest condolences to Mr Ismay’s wife, Sharon, and his three daughters. The people of Northern Ireland made a profound choice to follow the path of peace when they widely adopted the Good Friday agreement. The actions of an unrepresentative few should not be allowed to change a course that is supported by the overwhelming majority of people in Northern Ireland.

Let me now raise a different subject altogether. Last week, I received a letter from Adrian. He wrote:

“I’m disabled and I live in constant fear of my benefits being reassessed and stopped…and being forced onto the streets”.

Will the Prime Minister do what the Chancellor failed to do yesterday, and apologise to those who went through such anguish and upset while there was a threat of cuts to their personal independence payments?

[The Prime Minister]

Let me first thank the right hon. Gentleman for what he said about the terrorist attacks in Belgium, and about Northern Ireland and the fact that we have achieved so much peace and progress in that valuable part of our United Kingdom.

Turning to the issue of disability benefits, as I said in this House on Monday, when you are faced with having to take very many very difficult decisions—including many spending reductions—as we were after becoming the Government in 2010, you do not always get every decision right. I am the first to accept and admit that, and on every occasion that that happens it is very important that you learn the lessons, but as we do so, we will continue to increase spending on disability benefits, which will be more than £46 billion a year by the end of this Parliament, compared with £42 billion when I became Prime Minister.

[Jeremy Corbyn]

Government figures published only this morning show that the number of people with disabilities and who are homeless is now up by 39% since 2010, and that 300,000 more disabled people are living in absolute poverty. That is why people like Adrian are very worried. There has been big disarray in the Cabinet over the last few days, so can the Prime Minister now absolutely and categorically rule out any further cuts to welfare spending in the lifetime of this Parliament? Simply: yes or no?

[The Prime Minister]

Let me respond to all the points that the right hon. Gentleman has just made. First, he talked about the number of people in poverty. We have actually seen poverty fall during this Parliament. The second thing he referred to was the regrettable rise in homelessness, with figures out today, but homelessness is still 58% below the peak that it reached under Labour. That is important. He talked about the number of disabled people. This is a Government committed to supporting the disabled, but it is worth making the point that in the last two years an extra 293,000 disabled people have got into work. We want to continue to close the disability gap, as we have set out in our manifesto.

As for the question about further welfare reductions, let me repeat the statement that the new Welfare Secretary made on Monday and that the Chancellor made on Tuesday. I am happy to make it again. I dealt with these issues on Monday. I turned up and gave the answers even though the Leader of the Opposition had not asked the questions. We are very clear that we are not planning additional welfare savings other than the ones that we set out in our manifesto and that are in train.

[Jeremy Corbyn]

My question was actually about the poverty of people with disabilities, which the Prime Minister did not answer. In his failure to explain how he would fill the hole in his Budget left by the change of heart on personal independence payments, the Chancellor said:

“We can afford to absorb such changes”.—[Official Report, 22 March 2016; Vol. 607, c. 1394.]

If it is so easy to absorb changes of this nature, why did the Chancellor and the Prime Minister ever announce them in the first place? Will the Prime Minister now listen and learn, and withdraw the £30 per week cut to disabled employment and support allowance claimants that his Government are pursuing?

[The Prime Minister]

The changes to employment and support allowance have been through both Houses of Parliament. It is important to note that employment and support allowance for the most disabled—that is, those in the support group—is up by almost £650 a year under this Government. We have increased the higher rate of attendance allowance, we have increased carers allowance, and we have increased the enhanced rate of PIP because we believe that a strong economy should support the most disabled people in our country, and that is exactly what we have legislated to do.

If the right hon. Gentleman wants to get on to discussing black holes, I say bring on the argument. We inherited an 11% budget deficit from the Labour party, and under this team of Ministers and this Chancellor of the Exchequer we have cut that deficit by two thirds since we became the Government. From Labour, all we have had is more proposals for more spending, more welfare, more taxes and more debt—all the things that got us into the biggest mess with the biggest black hole in the first place.

[Jeremy Corbyn]

If it is all so fine and dandy, the question has to be asked: why did the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith) feel it necessary to resign as Work and Pensions Secretary, complaining that the cuts being announced were to fit arbitrary fiscal targets? He said that they were

“distinctly political rather than in the national economic interest”.

In the initial announcement, he proposed cuts to PIPs then changed his mind. Is not the right hon. Member for Chingford and Woodford Green right when he says that this was a political decision rather than one made in the interests of people in this country?

[The Prime Minister]

I believe that after seven or eight years of economic growth it is right to be targeting a surplus, because a responsible Government put aside money for a rainy day. I do not want to be part of a Government that do not have the courage to pay off our debts and leave them instead to our children and grandchildren. That is the truth. What is dressed up as compassion from the party opposite just means putting off difficult decisions and asking our children to pay the debts that we were not prepared to pay ourselves. [Interruption.] I do not know why the shadow Leader of the House, the hon. Member for Wallasey (Ms Eagle), is shouting at me. We have a very interesting document today: the spreadsheet showing which Labour MPs are on which side. The hon. Lady is shouting, but it says here—[Interruption.] No, no, it says she is “neutral but not hostile”. On the other hand, the Opposition Chief Whip is being a bit quiet. There are five categories. We have “core” support—[Interruption.] I’ve got all day, Mr Speaker. We have “core” support—I think you can include me in that lot very strongly. We have “core plus”. The Opposition Chief Whip is being a bit quiet because she is in “hostile”. And I thought I had problems!

[Jeremy Corbyn]

Let me invite the Prime Minister to leave the theatre and return to reality. The reality is that he has presided over a Budget that unravelled in two days and now contains a £4.4 billion black hole. He may wish to consult the Chancellor on yet another change of heart on this matter. Will he now consult the Chancellor and tell the country who is going to pay for the black hole? Will it be through cuts or tax rises? Where will the cuts fall? Where will the tax rises take place, as £4.4 billion has to be found from somewhere?

[The Prime Minister]

Suddenly the king of fiscal rectitude speaks. The right hon. Gentleman may have noticed that the Budget passed last night. It is a Budget that cuts the deficit in every year of this Parliament. It is a Budget that delivers a surplus by the end of this Parliament. None of that is going to change. He talks about this Budget—[Interruption.] The “hostile” shout, but the “neutral but not hostile” have to be quiet, I think. I want to know: hands up, who is “core plus”?

I will tell you what this Budget did. It took a million people out of income tax. It saw more money for our schools. It helped the poorest people in our country to save. It cut taxes for small businesses. It cut taxes for the self-employed. It made our economy stronger. It made our country fairer. It is a Budget that will help this country do better.

[Jeremy Corbyn]

The truth is that it was a Budget that fell apart in two days. The truth is that many people with disabilities went through the most unbelievable levels of stress and trauma after the PIP announcement was made. There are many people who are still going through stress and trauma in our society. There are still—[Interruption.] I am not sure that the Government Members who are shouting so loudly have any idea what it is like to try to balance a budget at home when you do not have enough money coming in, the rent is going up and the children need clothes.

[Jeremy Corbyn]

The Budget has to mean something for everybody in our society, however poor and however precarious their lives are. This Budget downgraded growth, downgraded wage growth and downgraded investment. The Chancellor has failed on debt targets and failed on deficit targets, as the official figures have shown. The fiscal rule is quite simply failing. The Treasury Committee scrutinised the Government’s fiscal rule and could not find any credible economist who backed it. Can the Prime Minister find anybody who backs a policy and a Budget with a big hole in it which downgrades every single forecast the Government set themselves before the Budget was made?

[The Prime Minister]

The right hon. Gentleman is just a bit late, because the Budget passed through this House with large majorities on every single vote. Let me remind him: this Government are spending more on the disabled than in any year under the last Labour Government. We are spending more on the most disabled, including the most disabled children in our country. We have got more disabled people into work than ever happened under Labour. What we see with this Budget is the background of an economy that is growing, where employment is at a record high, investment is rising and businesses are creating jobs in Britain, which is the envy of other European economies. It is because we have a strong economy that we are able to provide this support. That is what we see: Britain getting stronger and the Labour party a threat to the economic security of every family in our country.

[Mike Freer (Finchley and Golders Green) (Con)]

Q2. I am sure the Prime Minister is as appalled as I am that incidents involving anti-Semitism are on the rise. Does he agree that all organisations, public and private, should root out anti-Semitism, without hesitation?

[The Prime Minister]

I completely agree with my hon. Friend; anti-Semitism is an absolute cancer in our societies and we should know that when it grows it is the signal of many even worse things happening to ethnic groups and different groups all over our country. There is, sadly, a growth of anti-Semitism in our country and we see it in attacks on Jewish people and Jewish students—it absolutely has to be stamped out. We should all, whatever organisation we are responsible for, make sure that happens. I have to say that we do see a growth in support for segregation and indeed for anti-Semitism in part of the Labour party, and I say to its leader that it is his party and he should sort it out. [Interruption.]

[Mr Speaker]

Order. This sort of gesticulation across the Chamber is way below the level and the dignity of senior Members on the Front Bench on either side. It is terribly tedious—cut it out.

[Angus Robertson (Moray) (SNP)]

When terrorists attack Brussels or Paris or London or Glasgow, we are as one in our condemnation of the atrocities, as we equally condemn the killings of Yazidis, of Kurds, of Syrians and of Iraqis by Daesh and others extremists. We owe a huge debt of gratitude to those who work here and abroad to protect us in the face of the ongoing terrorist threat, so will the Prime Minister confirm that absolutely everything is being done to help the Belgian authorities and the people of Belgium in the wake of the Brussels attacks?

[The Prime Minister]

I can certainly confirm that. In my conversations with the Belgian Prime Minister I made a number of offers of policing and intelligence assistance that we could give, particularly on high-end, expert and technical capabilities. There are already some intelligence officers embedded with the Belgian authorities and there is strong police-to-police co-operation. Clearly, the Belgians are coping with an unprecedented situation in their country. We stand ready to do anything more we can and we are also, clearly, examining all the capabilities and things that we have here to see what more we can do to safeguard our own country.

[Angus Robertson]

A defining characteristic of a democratic society is our trust in our institutions and democratic oversight by parliamentarians of those who work so hard to keep us safe. We have that oversight with our police and with our security services, but we do not yet have it with UK special forces under the Intelligence and Security Committee or the Defence Committee. Will the Prime Minister address that?

[The Prime Minister]

I am afraid that I just part company with the right hon. Gentleman on that one. We have put in place some of the most extensive oversight arrangements for our intelligence and security services. Our services do a remarkable job, and the police are regularly called to account both locally and nationally. The work that our special forces do is vital for our country. Like everyone else in this country, they are subject to international law, but I do not propose to change the arrangements under which these incredibly brave men work.

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

Q6. In England, this Government have delivered better GCSEs, better A-levels and a better chance of getting into university than Labour has in Wales. Does my right hon. Friend agree that Labour Members have no right to criticise our education policies when their own Education Minister in Wales has had to issue a public apology for the failure of his own?

[The Prime Minister]

My hon. Friend makes an important point. What we have seen in England—and we should praise the teachers who have worked so hard to deliver those results—is a result of rigour in standards, independence in our schools and accountability for results. When we look at Wales, we do not see those things in place, so I urge the Welsh Assembly Government to look at that, and I urge the Welsh people, when they have a choice at the coming elections, to ensure that they vote for parties that put education reform, education standards, education rigour and education accountability first.

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

Q3. In 1992, the oil tanker Braer ran aground off the south coast of Shetland. It was carrying 85,000 tonnes of Gullfaks crude, which then spilled into the sea and on to our shoreline. It caused economic and environmental devastation. Since the Donaldson report into that disaster, we have had an emergency tug stationed in the Northern Isles. It is our protection against ever being blighted in that way again. The Maritime Coastguard Agency now wants to take that tug away. There will be no finance for it after September. Will the Prime Minister look again at that decision, and repeat the undertaking that he made to the people of Shetland in 2014 that he will not leave them exposed in that way again?

[The Prime Minister]

The right hon. Gentleman makes a very important point. My understanding is that the one tug that has been sustained off the coast of Scotland has played an important role in the past. The cost is between £2 million to £3 million a year. It is currently used very sparingly, so it is right to look at the right way to deliver the service in the future. Alternative options would clearly take time to develop and implement, which is why we have announced that this will be funded until 30 September 2016, and we will have to make a decision on provision in due course. I will keep him in touch with those developments.

[Amanda Milling (Cannock Chase) (Con)]

Q7. We believe in doing the right thing—[Interruption.]—which is why it is absolutely right that the proceeds of crime are returned to the local communities that have been the victims of crime. Staffordshire’s police and crime commissioner, Matthew Ellis, is calling on community groups in Cannock Chase to apply for grants from his commissioner’s proceeds of crime fund. Does my right hon. Friend agree that that shows that our excellent Conservative police and crime commissioner is delivering real value for the people of Staffordshire?

[The Prime Minister]

My hon. Friend makes an important point. Police and crime commissioners have really bedded in properly as a means of bringing our police to account. The Home Affairs Committee, an all-party Committee, reported recently that those PCCs provide greater clarity of leadership for policing and are increasingly recognised by the public as accountable for the strategic direction of their police force. That is an important reform, and when PCCs bring forward ideas such as using the proceeds of crime in the way that she suggests they should be rewarded at the ballot box.

[Stuart Blair Donaldson (West Aberdeenshire and Kincardine) (SNP)]

Q4. The list of Ministers and advisers who have resigned after the Prime Minister expressed his full confidence in them is extensive, so may I ask him this: does he still have full confidence in the Chancellor?

[The Prime Minister]

Of course, and I will tell the hon. Gentleman why. The Chancellor is the one who, as part of a team, has delivered the fastest growing economy in the G7. We have 2.4 million more people in work; inflation that is virtually zero; wages that are growing; and an economy that is getting stronger.

[Mr Peter Bone (Wellingborough) (Con)]

Q8. The House of Commons Library confirms that this year our net contribution to the EU will increase by more than £2.6 billion—I think it is actually £2,627 million. Should that money be spent on supporting people in Bulgaria and Romania, or should it be spent in this country, supporting our vulnerable and disabled people?

[The Prime Minister]

I say to my hon. Friend that our net contribution accounts for just over one penny in every pound paid in taxes, so as we enter this vital debate we have to work out whether we believe that that sort of investment—one penny out of every pound—is worth the jobs and the investment, the growth and the security, and the safety and the solidarity that we get through working with our partners. I will be on the side that thinks it is, and clearly he will be on the side that thinks it is not, but we should have a polite and reasonable debate as we go through this. What I will say, which I am sure he will welcome, is that we have limited our contributions to the EU budget because we set an overall EU budget that is falling over the next six years. The reason our contribution varies is that part of it is determined by the success of a country’s economy and—to return to the questions I have just been answering—because our economy has been growing faster than others in Europe, we will make a slightly larger contribution than we otherwise would.

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

Q5. Not only has my constituent Susan Sutovic suffered the death of her son, but the unexplained circumstances of his death have led to a 12-year battle with the authorities in Belgrade, where this happened in 2004. The UK coroner has now ruled that the death was murder. Will the Prime Minister or Foreign Secretary meet the family and do what can be done to get a proper investigation, to resolve the questions that remain and to achieve justice for Petar?

[The Prime Minister]

I am not aware of the case the hon. Lady raises, but obviously it is important that her constituent gets proper resolution. I shall make sure she has a meeting with Foreign Office Ministers to discuss it.

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

Q9. JPMorgan Chase, Sunseeker, Cobham, Lush and many other local businesses are supporting the inaugural Mid Dorset and North Poole apprenticeships and jobs fair. If he happens to be free on 15 April, I know the Prime Minister would be warmly welcomed at Queen Elizabeth's school in Wimborne. I know that he will welcome the news that unemployment in my constituency is down by more than 60%, but will he ensure that we are not complacent and that we secure the vital infrastructure needed to get good-quality jobs in Dorset and across the south-west?

[The Prime Minister]

My hon. Friend is absolutely right. One of the reasons we have managed to get our unemployment rate down to about 5% and 2.4 million more of our fellow countrymen and women into work is that businesses have recovered using apprenticeships. Events such as the one in his constituency will play a part in reaching our 3 million target for apprenticeships in this Parliament.

[Patrick Grady (Glasgow North) (SNP)]

Q10. Academics, civil society and the Scottish Government have all condemned the Government’s anti-lobbying clause in new grant agreements. How can the Prime Minister promote transparency, democracy and freedom of speech overseas when that clause is clamping down on those principles here in the UK?

[The Prime Minister]

I would answer simply that I want taxpayers’ and charities’ money to go to good causes, rather than to lobbying Ministers and MPs and spent here. That is what they should be spending the money on. It is worth making the point that we are only one day away from what would have been separation day for Scotland. Had that happened, there would not be money for charities—there would not be money for anything.

[Andrew Stephenson (Pendle) (Con)]

Q13. Pubs are the beating heart of many communities across the UK. Will the Prime Minister join me in welcoming the support given to our pubs in successive Budgets by joining me for a duty-frozen pint in the Crown Hotel in Colne, and tell the House what more he can do to support this vital part of our economy?

[The Prime Minister]

I thank my hon. Friend for his kind invitation. In Budget after Budget, we have seen this Government supporting the pub industry, which is such an important part of our economy and particularly of rural communities. I can make an announcement today that, subject to the usual conditions, we will be extending pub opening hours on 10 and 11 June this year, to mark Her Majesty the Queen’s 90th birthday. I am sure that that will be welcomed across the House.

[Richard Arkless (Dumfries and Galloway) (SNP)]

Q11. If I compare my constituency with the Prime Minister’s and the Chancellor’s, I find that I have four times the number of youths unemployed, more than double the disabled claimant count and an average weekly wage that is 20% less. Are those the reasons why the Prime Minister and the Chancellor never understood and never had the compassion to realise, as everybody else did, that the disabled cuts were so obviously wrong? I give the Prime Minister one more opportunity: will he apologise to my constituents, who have been scared witless over the past week?

[The Prime Minister]

Obviously, there remain challenges in the hon. Gentleman’s constituency, but the claimant count is down by 16% in the past year alone, the claimant count has fallen by 50% since 2010, and the youth claimant count that he specifically mentioned has fallen by 12% in the past year. That has been delivered because we have a strong economy, businesses want to invest in our country, we are supporting apprenticeships, and we are making sure that that growth is delivering for people. In just two weeks’ time, the national living wage will come in, giving the poorest people in our country a £900 a year pay rise, and that will be tax-free because we are lifting the tax threshold in our country.

[David Tredinnick (Bosworth) (Con)]

Is my right hon. Friend aware of the remarks this morning by the Foreign Minister of Russia, Sergei Lavrov—that we should put aside our differences and that terrorists should not be allowed to run the show? Does my right hon. Friend agree that we would be stronger if we could work together, but to do that we will have to have a better understanding of Russia’s security needs?

[The Prime Minister]

Of course, we want to work with everyone we can to combat terrorism, but particularly when it comes to what is happening in Syria it is vitally important that the Russians stop any attacks and do not restart any attacks against moderate Sunnis and moderate Syrian opposition, which clearly have to form a part of that country. We cannot in the end defeat terrorism simply through the use of guns and missiles. We defeat terrorism through governance and good working democracies, because in that way people can see their own interests being represented by the countries in which they live.

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

Q12. The former Work and Pensions Secretary described the cuts to personal independence payments for the disabled as divisive, unfair and against the national interest. The Chancellor’s U-turn suggests that he now agrees. Can the Prime Minister explain how on earth he allowed this to happen in the first place?

[The Prime Minister]

It is good to have an intervention from someone who, I think, is “neutral but not hostile”. If the hon. Lady keeps going, she could join “core group plus”, with the rest of us. She would be very welcome in “core group plus.” Let me tell her what this Government have done: they have increased spending on disability benefits, and seen 293,000 more disabled people into work in the past two years and 2.4 million more people in work. That is bringing the country together, because we have a growing economy that is delivering a fairer society.

[Suella Fernandes (Fareham) (Con)]

My right hon. Friend will have seen the recent OECD report on literacy and numeracy in England. Based on data from 2012, it ranked our teenagers bottom out of 23 developed countries for basic maths and reading—a damning indictment of 13 years of Labour’s education policy—[Interruption.]

[Suella Fernandes]

Thank you, Mr Speaker. Does that not show why a more rigorous curriculum and more autonomy for schools to succeed are vital to turn around the life chances of the next generation?

[The Prime Minister]

My hon. Friend makes an important point, which is that it is worth while benchmarking our education system against those of other advanced countries. What we have seen in recent years is that the competition is very tough. When we look at the countries that are succeeding, whether it is the Republic of Korea or Finland, we see that they have well-paid teachers, proper accountability systems for results and rigour in terms of discipline, and that is exactly what we are introducing in our country with the new curriculum coming in right now.

[Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)]

Q14. The women of this country are tired of waiting—waiting for equal pay, waiting for an end to maternity and pregnancy discrimination, and waiting for a fair deal for WASPI pensioners. It is 2016. How much longer?

[The Prime Minister]

The hon. Lady is right to raise these issues. It is good that the pay gap is now at an historic low. It has almost evaporated for under-40s but there is more to be done in the public sector and in the private sector to bring that about. On pensions, we have introduced a pensions system which will benefit many, many women in years to come, because we have a single-tier pension without a means test, uprated by prices, earnings or 2.5%. We were able to do that only because we raised the pension age, saving over the long term something like half a trillion pounds—a difficult decision but the right one, because it means that we can look our pensioners in the eye, knowing that they are getting dignity and security in old age.

[Mike Wood (Dudley South) (Con)]

Two hundred and sixty thousand new apprenticeships have been created since the election, but the whole public sector needs to play its part if we are to meet the 3 million target to which the Prime Minister has referred. Will he ensure that every part of the public sector invests in training our young people so that we have the skills the country needs?

[The Prime Minister]

My hon. Friend is absolutely right to raise that. Getting 3 million apprentices trained during this Parliament is a very stretching target. We will have to see those large companies that have really put their shoulder to the wheel on this agenda continue to do so, but there are two sectors where we need to do better. One is the public sector; we need more public sector organisations to get behind apprenticeships. We also need to make it simple and attractive for small businesses to start training apprentices again. That is absolutely what the Minister for Skills, my hon. Friend the Member for Grantham and Stamford (Nick Boles), is doing with the skills agenda. We all need to work very hard to deliver this by the end of the Parliament.

[Mr Douglas Carswell (Clacton) (UKIP)]

Q15. If the United Kingdom votes to leave the European Union in June, does the Prime Minister believe that the EU institutions will respond vindictively?

[The Prime Minister]

It is a very difficult question to answer. We should not be naive, were we to vote to leave, in believing that other countries would automatically cut us some sort of sweetheart deal. Just take one industry as an example: farming. Our farmers know now that they have duty-free, quota-free and tax-free access to a market of 500 million people. Were we to leave, could we really guarantee that French, Italian or Spanish farmers would not put pressure on their Governments to give us a less good deal? I do not think that we could. That is one of the many reasons why I think we are safer, more secure and better off in a reformed European Union.

[John Stevenson (Carlisle) (Con)]

In April 2015 the Prime Minister said that there should be a new Carlisle principle to ensure that other parts of the UK do not lose out as a result of Scottish devolution. Can he confirm that that principle will apply, who will review the position, when it will report, and who it will report to?

[The Prime Minister]

My hon. Friend is absolutely right. It is particularly important for constituencies, such as his, that are close to the border, to make sure that decisions that are made, quite sensibly and rightly, by the devolved Parliaments and Assemblies do not disadvantage the rest of the United Kingdom. That was the principle set out, and the Chancellor will report regularly on that as he updates the House on his fiscal plans.

[Stephen Kinnock (Aberavon) (Lab)]

I trust that the Prime Minister will be aware that there is a critical meeting of the board of Tata in Mumbai on Tuesday. I will be flying out to Mumbai with the general secretary of the Community union to make the case for British steel. That meeting will decide the future of the Port Talbot steelworks in my constituency. Will the Prime Minister join me in exhorting Tata to stand with that plan and secure the future of the Port Talbot steelworks?

[The Prime Minister]

I absolutely give the hon. Gentleman my backing on that. A team of Ministers met yesterday to discuss all the things that we can do to get behind the steel industry at this vital time. It is an extremely difficult market situation, with massive global overcapacity and the huge fall in steel prices, but there are areas where we have taken action already and we will continue to look at what more we can do: state aid compensation so that we can secure the energy costs; greater flexibility over EU emissions regulations. We have done a huge amount in terms of public procurement, which I think can make a big difference to our steel industries. We are doing all those things and more, and we are making sure that Tata and others understand how valuable we believe this industry is to the UK and that the Government, within the limits we have, want to be very supportive and very helpful.

European Council

Lord Cameron of Chipping Norton Excerpts

Monday 21st March 2016 Commons Chamber

[The Prime Minister (Mr David Cameron)]

With permission, Mr Speaker, I would like to make a statement on last week’s European Council, which focused on the migration crisis affecting continental Europe.

The single biggest cause has of course been the war in Syria and the brutality of the Assad regime, but we have also seen a huge growth in the numbers of people coming to southern Europe from Afghanistan, Pakistan and north Africa, all facilitated by the rapid growth of criminal networks of people smugglers. There are over 8,000 migrants still arriving in Greece every week, and there are signs that the numbers using the central Mediterranean route are on the rise again. So far, 10,000 have come this year.

Of course, because of our special status in the European Union, Britain is not part of the Schengen open border arrangements—and we are not going to be joining. We have our own border controls, and they apply to everyone trying to enter our country, including EU citizens. So people cannot travel through Greece or Italy onward to continental Europe and into Britain, and that will not change. It is in our national interest, however, to help our European partners deal effectively with this enormous and destabilising challenge.

We have argued for a consistent and clear approach right from the start: ending the conflict in Syria; supporting the refugees in the region; securing Europe’s borders; taking refugees directly from the camps and neighbouring countries but not from Europe; and cracking down on people-smuggling gangs. This approach, of focusing on the problem upstream, has now been universally accepted in Europe, and at this Council it was taken forwards with a comprehensive plan for the first time.

As part of the plan, the Council agreed to prevent migrants from leaving Turkey in the first place; to intercept those who do leave, while they are at sea, and to turn back their boats; and to return to Turkey those who make it to Greece. There can be no guarantees of success, but if this plan is properly and fully implemented, it will, in my view, be the best chance to make a difference. For the first time, we have a plan that breaks the business model of the people smugglers by breaking the link between getting in a boat and getting settlement in Europe.

I want to be clear about what Britain is doing, and what we are not doing, as a result of this plan. We are contributing our expertise and our skilled officials to help with the large-scale operation now under way. Royal Fleet Auxiliary ship Mounts Bay and Border Force vessels are already patrolling the Aegean, British asylum experts and interpreters are already working in Greece to help them process individual cases, and at the Council I said that Britain stood ready to do even more to support these efforts. Above all, what is needed, and what we are pushing for, is a detailed plan to implement this agreement and to ensure that all the offers of support from around Europe are properly co-ordinated. Our share of the additional money, which will go to helping refugees in Turkey under this agreement, will come from our existing aid budget.

Let me also be clear about what we are not doing. First, we are not giving visa-free access for Turks coming to the UK. Schengen countries are planning to give visa-free access to Turks, but because we are not part of Schengen we are not bound by their decision. We have made our own decision, which is to maintain our own borders, and we will not be giving that visa-free access.

Secondly, visa-free access to Schengen countries will not mean a back-door route to Britain. As the House knows, visa-free access only means the right to visit; it does not mean a right to work or to settle. For instance, just because British citizens can enjoy visa-free travel for holidays to America, it does not mean they can work, let alone settle there. Neither will this give Turkish citizens those rights in the EU.

Thirdly, we will not be taking more refugees as a result of this deal. A number of Syrians who are in camps in Turkey will be resettled into the Schengen countries of the EU, but again that does not apply to Britain. We have already got our resettlement programme and we are delivering on it. We said we would resettle 20,000 Syrian refugees over this Parliament, taking them directly from the camps, and that is what we are doing. We promised 1,000 resettled here in time for last Christmas, and that is what we delivered. The other 27 EU countries agreed to two schemes, one of which was to relocate 160,000 within the EU, but by the time of last December’s Council only 208 had been relocated. The second scheme was to have a voluntary resettlement scheme for 22,500 from outside the EU, but by the end of last year just 483 refugees had been resettled throughout the 27 countries.

We said what we would do and we are doing it. Britain has given more money to support Syrians fleeing the war, and the countries hosting them, than any other European country. Indeed, we are doing more than any country in the world other than the United States, spending over £l billion so far, with another £1.3 billion pledged. We are fulfilling our moral responsibility as a nation.

Turning to the central Mediterranean, the EU naval operation we established last summer has had some success, with over 90 vessels destroyed and more than 50 smugglers arrested. HMS Enterprise is taking part and we will continue her deployment throughout the summer. What is desperately needed is a Government in Libya with whom we can work, so that we can co-operate with the Libyan coastguard in Libyan waters to turn back the boats and stop the smugglers there, too. There is now a new Prime Minister and a Government we have recognised as the sole legitimate authority in Libya. These are very early days, but we must do what we can to try and make this work. That is why at this Council I brought together leaders from France, Germany, Italy, Spain and Malta to ensure that we are all ready to provide as much support as possible.

Turning to other matters at the Council, I took the opportunity to deal with a long-standing issue we have had about the VAT rate on sanitary products. We have had some EU-wide VAT rules in order to make the single market work, but the system has been far too inflexible, and this causes understandable frustration. We said we would get this changed and that is exactly what we have done. The Council conclusions confirm that the European Commission will produce a proposal in the next few days to allow countries to extend the number of zero rates for VAT, including on sanitary products. This is an important breakthrough. Britain will be able to have a zero rate for sanitary products, meaning the end of the tampon tax. On this basis, the Government will accept both the amendments tabled to the Finance Bill tomorrow night.

My right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith) spent almost a decade campaigning for welfare reform and improving people’s life chances, and he has spent the last six years implementing those policies in government. In that time, we have seen nearly half a million fewer children living in workless households, over a million fewer people on out-of-work benefits and nearly 2.4 million more people in work. In spite of having to take difficult decisions on the deficit, child poverty, inequality and pensioner poverty are all down. My right hon. Friend contributed an enormous amount to the work of this Government and he can be proud of what he achieved.

This Government will continue to give the highest priority to improving the life chances of the poorest in our country. We will continue to reform our schools. We will continue to fund childcare and create jobs. We will carry on cutting taxes for the lowest-paid. In the last Parliament, we took 4 million of the lowest-paid people out of income tax altogether and our further rises will take many, many more out, too. Combined with this, we will go on with our plans to rebuild sink estates, to help those with mental health conditions, to extend our troubled families programme, to reform our prisons and to tackle discrimination for those whose life chances suffer because of the colour of their skin. And, in two weeks’ time, we will introduce the first ever national living wage, giving a pay rise to the poorest people in our country. All of this is driven by a deeply held conviction that everyone in Britain should have the chance to make the most of their lives.

Mr Speaker, let me add this. None of this would be possible if it was not for the actions of this Government and the work of my right hon. Friend the Chancellor in turning our economy around. We can only improve life chances if our economy is secure and strong. Without sound public finances, you end up having to raise taxes or make even deeper cuts in spending. You do not get more opportunity that way; you get less opportunity that way, and we know that, when that happens, it is working people who suffer, as we saw in Labour’s recession. So we must continue to cut the deficit, control the cost of welfare, and live within our means. We must not burden our children and grandchildren with debts that we did not have the courage to pay off ourselves. Securing our economy and extending opportunity, we will continue our approach in full, because we are a modern, compassionate, one-nation Conservative Government. I commend the statement to the House.

[Jeremy Corbyn (Islington North) (Lab)]

I thank the Prime Minister for an advance copy of about half his statement. Let me deal with the points that he made in order.

The refugee crisis that Europe currently faces is the largest since the end of the second world war. There are more displaced people in the world now than there have been at any time in recorded history. Thousands of people have died making perilous journeys across the Mediterranean and in other places around the world. As an advanced, democratic, civilised nation, we have a duty to reach out the hand of humanity, support and friendship to people who are going through the most disastrous time of their lives.

We should also recognise that a disproportionate burden has been placed on Syria’s neighbours. Jordan and Lebanon have accepted a very large number of refugees, as has Turkey. Among the European countries, Italy and Greece, as border countries, have done far more than anyone else, but Germany and Sweden have taken a very large number of asylum seekers. There has not been a balanced response throughout Europe.

Has the Prime Minister had a chance to read the statement made by Amnesty International at the weekend, after the agreement was reached? Amnesty is normally noted for its cautious use of words and the careful way in which it describes things; it is, after all, an organisation dedicated to human rights and the rule of law. The statement reads as follows:

“Guarantees to scrupulously respect international law are incompatible with the touted return to Turkey of all irregular migrants arriving on the Greek islands as of Sunday. Turkey is not a safe country for refugees and migrants, and any return process predicated on its being so will be flawed, illegal”,

and it goes on to register further concerns. I ask the Prime Minister to respond carefully to the very reasonable points put by Amnesty International.

Will the Prime Minister confirm that when Greece receives asylum seekers from Turkey, they will all be interviewed individually? Will he confirm that they will all have access to interpreters, a right to a hearing and a right of appeal, even if the interviewing is done by officials who have come from other countries on behalf of the European Union? Will he confirm that those who are returned to Turkey will have similar rights there, and that they will, in turn, be properly treated? He must be well aware of the deep concern that many people feel about the recent events in Turkey, particularly the imprisonment of journalists who have attempted to speak out about a number of matters.

It is clear that the issue of the number of people seeking asylum in Europe is heavily bound up with the wars that have taken place, or continue to take place. The Prime Minister rightly spoke of the need for a political settlement in Syria and in Libya. Can he give us some information on progress that may have been made towards bringing about a political settlement in Syria that will enable people to return to their own homes, and to lead safe and secure lives? The situation in Libya is equally perilous for many people, especially those in insecure refugee camps.

The Prime Minister will be well aware that many of those who seek asylum in other countries make the perilous journeys to which I have referred. They also end up in refugee camps with very limited facilities, despite the great work done by volunteers. I have visited the camps in Calais and Dunkirk, which are in an appalling state. Those people are in a very perilous situation. They are all humans, to whom we must reach out the hand of friendship and support.

I recognise that the British Government have paid a great deal of money through the Department for International Development to support refugees in camps around the world. I recognise the work of the Royal Navy in plucking people from the sea and saving them from drowning. However, the Prime Minister still seems to be stuck in the narrative of saying that Britain will accept only 20,000 refugees over the next four years and that they will be taken from camps in the region, not from those facing problems as they get stuck while travelling across Europe. Can we not for once, please, Prime Minister, co-operate with every other European country on a European-wide response to the crisis engulfing the lives of so many people, rather than avoid our responsibilities?

In the advance copy I received of about half of the Prime Minister’s statement, he went on to talk about the VAT on sanitary products and one or two other issues, but he then delivered a much longer speech on many other things. The House should pay great tribute to my hon. Friend the Member for Dewsbury (Paula Sherriff) for her work on trying to eliminate this unfair tax.

The Prime Minister is here today, the new Secretary of State for Work and Pensions is here today, and practically every other Cabinet Minister is here today, but what has happened to the Chancellor of the Exchequer? Where is he? Instead of covering for his friend, could the Prime Minister not have asked him whether he would be kind enough to come along to the House to explain why, for the first time in Parliament in my memory, a Government’s Budget has fallen apart within two days of its delivery? There is an enormous hole in the Budget which has been brought about through a possible temporary retreat on changes to personal independence payments. Can the Prime Minister guarantee that there will be no further cuts to the Department for Work and Pensions budget and that more people with disabilities will not face more cuts as the years go on? Can he tell us why he is still defending a Budget that not only has inequality and a tax on the disabled and the poorest in our country at its core, but provides tax relief to the richest and the biggest corporations? The Budget has a big hole in it and it is up to the Prime Minister to persuade his great friend the Chancellor to come here to explain how he will fill that hole. Perhaps the Chancellor should consider his position and look for something else to do, because he clearly has not been successful at producing a balanced Budget that is in the interests of everyone in the country, particularly those with disabilities.

[The Prime Minister]

I thank the right hon. Gentleman for his response. First, on refugees, he says that we have a duty to help, and he is right and we have helped. We have spent billions of pounds—more than any other European country—supporting refugees in refugee camps, and the Royal Navy has helped in huge measure, as he said, picking people out of the sea and saving countless lives. We are taking 20,000 refugees from the neighbouring countries. Looking at the figures and what other European countries have done, we have put in place a plan and have delivered it far faster than many other, indeed most other, European countries.

The right hon. Gentleman’s second point was about Amnesty International. He is absolutely right that we must respect international law and the role of the United Nations High Commissioner for Refugees, and the Council conclusions and the agreement with Turkey make that clear, but it is not right to say that Turkey is an unsafe country for Syrian refugees. That is slightly insulting to the Turks, who are currently hosting 2.6 million people who have fled Syria. What is going to happen is that those who do not apply for asylum will be immediately returned to Turkey. Those who do apply will go through a rapid process with all the proper procedures in place. As the agreement says, all irregular migrants will be returned to Turkey because it is a safe country for refugees. It is, of course, different for anyone that it is not safe for. The right hon. Gentleman is missing the point, which is, of course, that it sounds very compassionate to say to refugees, “Keep coming, you can come in”, but by doing so you are encouraging people to make a perilous journey, where so many have lost their lives. It is actually a more compassionate thing to do to make sure you have firm borders and proper processes, and that you support the refugees in the countries they are in. We should not be encouraging more people to travel.

The right hon. Gentleman asked about the Syrian peace process, and I can tell him that the ceasefire is holding better than people expected, so, as a result, the talks are still under way. We are hopeful of progress but it will be slow and difficult. In Libya, there is a new Prime Minister, as I have said. The Foreign Secretary spoke to him over the weekend and, for the reasons the right hon. Gentleman gives, we are going to give him every support we can.

The right hon. Gentleman asked questions about Calais, so let me say this to him. Of course everyone is disturbed by the pictures of what happens in Calais and in those camps, but there is a very simple answer for those people: France is a safe country and if they want asylum, they should apply for it in France. If there are children in those camps who have direct family in Britain, they can apply for asylum in France and, under the Dublin convention, join their family here in Britain. We should not be doing anything to discourage people from taking that correct step.

The right hon. Gentleman asked whether we will take people from inside Europe, but I do not think that is the right answer. I would argue that the approach the Home Secretary and I set out almost a year ago of tackling this problem upstream, concentrating on borders, and taking asylum seekers from the refugee camps rather than from inside Europe is a better approach, which more and more countries in Europe can now see the merits of. He asked whether this is a European plan. Yes, it is, and we are part of it. We were one of the important countries at this Council arguing to get this deal done and to implement it properly, because although it has many imperfections, it is our best hope of trying to stem this tide of people coming towards Europe, and all the misery that is causing and bringing.

On the issue of the tampon tax, I am sorry, as I should have paid tribute to the hon. Member for Dewsbury (Paula Sherriff) for the very hard work she has done. I am delighted that we have now got this proposal coming forward.

The Chancellor of the Exchequer will be in the House tomorrow, winding up the Budget debate; you have the First Lord of the Treasury today and you are going to have the Second Lord of the Treasury tomorrow. When it comes to holes in the Budget, we could perhaps hear from the timelords who sit on the Opposition Benches, because they left us the biggest black hole there ever was. When I became Prime Minister, we had an 11% budget deficit forecast—that was the biggest budget deficit anywhere.

As for the Budget, let me remind the right hon. Gentleman: this Budget increased funding for our schools; this Budget took more low-paid people out of income tax; this Budget froze fuel duty to help hard-working people; this Budget helped the poorest in our country to save; and this Budget backed small business, which is why it is going to strengthen the economy and make sure we have a fairer society.

[Crispin Blunt (Reigate) (Con)]

The fifth point of the Council conclusions says:

“The EU reiterates that it expects Turkey to respect the highest standards when it comes to democracy, rule of law, respect of fundamental freedoms, including freedom of expression.”

Any reference to that was absent from the accompanying EU-Turkey statement. How many Kurds have to be killed by the Turkish security forces before we no longer regard Turkey as a first country of asylum or safer third country, not least for Syrian Kurds?

[The Prime Minister]

First, my hon. Friend is right to say that the conclusions mentioned the importance of commitment to democracy, to freedom of speech, and to a free press. At the earlier EU-Turkey Council that was spelt out in even more detail, with the mention even of the name of the newspaper that has faced difficulties. All European countries, including this one, raise this issue at every available opportunity. The point I would make is that for Syrians seeking refuge Turkey has been a safe place, and we should pay tribute to Turkey for looking after 2.6 million of those people. But we should also make the point that anyone who does genuinely face a fear of persecution in Turkey will be able to take that claim through their asylum claim.

[Angus Robertson (Moray) (SNP)]

May I, too, thank the Prime Minister for advance sight of the first half of his statement? As this is a statement on the European Union summit, may I begin by discussing the EU-Turkey joint action plan? The statement had much to say about Turkey, Greece, refugees from Syria and elsewhere, and the impact and management of migration to the Schengen zone countries. In the Prime Minister’s statement, I counted a record 12 things the UK is not going to do, so given the projection of refugee numbers for this year, what will it take for the UK to review its 20,000 limit on accepting refugees? With the attempts to close the West Balkan route for refugees, will the Prime Minister update us on what that will mean for attempted crossings from Libya? Last week, in Prime Minister’s questions, I asked about UK plans to send troops to Libya. The Prime Minister chose his words very carefully. He said that he had no plans to send “conventional” forces to Libya. Will the Prime Minister acknowledge that he has a policy of neither confirming nor denying the presence of special forces? Will he also confirm that operations conducted by special forces are not subject to parliamentary oversight by either the Intelligence and Security Committee or the Defence Committee?

We very much welcome the agreement on VAT on sanitary products. It would be gracious of the Prime Minister to thank my hon. Friend the Member for Glasgow Central (Alison Thewliss) who was the first Member of this House to table amendments to the Finance Bill, and tributes should be paid to Members across all parties who campaigned for that welcome change.

In the second half of the Prime Minister’s statement on the civil war within the Government, will he confirm that he, the Chancellor of the Exchequer, the Secretary of State for Scotland and his whole Cabinet agreed last week to cut support for the disabled by £4.3 billion while at the same time handing a tax cut to the very wealthy? I have repeatedly asked the Prime Minister about the devastating impact of benefit cuts to the most vulnerable, including the disabled and ill, many of whom will go on, sadly and tragically, to take their own lives. Does the Prime Minister understand that people watching the ongoing fall-out in the Conservative party are totally horrified that more time is spent talking about the jobs of Tory Ministers than about the impact of his damaging policies on the weakest in society?

[The Prime Minister]

First, on the 20,000, let me say to the right hon. Gentleman that what we have said—I will repeat this again—is that we are looking at the issue of child migrants and those whom we can help more of. We took in 3,000 last year. Of the 20,000, we expect many to be children. We have said that we are working with the United Nations High Commissioner for Refugees on that, but again we are looking at children in the region, and we have talked about potentially taking in hundreds rather than thousands, and my right hon. Friend the Home Secretary is examining that.

On the West Balkan route, I am not surprised that countries have decided to erect borders, as they have been very concerned about the huge flow of people through that route, but, obviously, everything that the Schengen countries and Europe as a whole can do to secure the external borders of Europe the better, and that is what we are helping with. I do not think that it has particular implications for Libya. Most of those migrants have been coming through Malta and Italy, and we do need to address that.

On special forces, let me confirm the long-standing policy, which is that all Governments have exactly the same approach, and we have not changed that at all. On sanitary products, I am very happy to pay tribute to the hon. Member for Glasgow Central (Alison Thewliss) and apologise for missing her out.

On disability, we are not going ahead with the changes that were put forward, but let me say what we are going ahead with. When I became Prime Minister we were spending £42 billion on disability benefits, and by the end of this Parliament, we are forecast to be spending more than £46 billion, which is a real-terms increase of more than £4 billion. What we did in that Budget was help to take low paid people out of tax and assist in many, many ways, which is why it was a good Budget and we have taken the right decisions.

[Mr Kenneth Clarke (Rushcliffe) (Con)]

In addition to the refugees whom we are taking from the camps, each year thousands of people enter this country irregularly and by other means from North Africa and the middle east seeking asylum, and many of those requests are granted. Those numbers are increasing. Does the Prime Minister agree that it is a complete mistake to regard the current grave crisis over migration as something that is apart from the United Kingdom if only we were not in the European Union? Does he agree that it is in the British interest that he continues to play an active and leading role in these European Council discussions to try to achieve a solution to the external European border and how we will deal with genuine migrants in civilised conditions and return those who have no claim to be here? Will he continue to commit to the European effort the Navy, the aid money, and the resources that we are giving, together with his diplomatic and political efforts?

[The Prime Minister]

I thank my right hon. and learned Friend for his remarks. He is right that whether we are in the European Union or out of the European Union, there is still a migration crisis affecting the continent of Europe, and that does have knock-on effects on us. The more people who come, the more people who end up at Calais and the greater the problem we have. I would argue that we have the best of both worlds because we are sat round the table trying to solve this problem, and good progress has been made, but because we are not in Schengen and not in these resettlement schemes, we keep our own decisions about borders and about visas and all the rest of it. Clearly, it does benefit us to co-operate, so we should continue to do that and continue to recognise that Britain can bring its experience to bear in helping our friends in Greece, who now face a real crisis in their country and deserve our help.

[Tim Farron (Westmorland and Lonsdale) (LD)]

I thank the Prime Minister for his statement and for his somewhat revised and lengthy assessment of the merits of the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith). Let us be clear, though: the Turkey-EU deal is the result of failure by European leaders, including our own Prime Minister, to develop safe, sustainable and humane routes for refugees who are fleeing for their lives. It is inoperable, may well be illegal, and puts politics and public image above protecting human lives. Given that the Prime Minister is today at pains to stress that he is a compassionate Conservative, will he show some compassion to the 43,000 people currently stuck in Greece, including 20,000 children, and offer sanctuary to some of them, particularly the incredibly vulnerable unaccompanied children and families with babies?

[The Prime Minister]

I have to say that I profoundly disagree with the hon. Gentleman. The idea that if we had found safe routes for people to come to Europe then somehow all the people-smuggling, the criminal gangs and the mass movement of people would have come to an end is complete and utter nonsense. We have to have some hard borders. A country is responsible for its borders, and if it is an external country to the European Union, it is particularly responsible for its border. The combination of harder border controls but compassion in helping refugees in the region is the right answer. We play our part by putting in the money and by taking the 20,000 refugees, but the idea that if we open up safe routes the whole problem will be solved is complete nonsense.

[Sir William Cash (Stone) (Con)]

Given the extraordinary difficulties that occurred with regard to the charter of fundamental rights, and the human rights and the asylum laws, how does my right hon. Friend propose that the Turkey deal will be legally, let alone politically, enforceable?

[The Prime Minister]

It is the view of the legal adviser to the European Council that what is being proposed is legal. Is it difficult to achieve? Yes, absolutely it is, because we have to consider each case individually. Is it possible, if we designate Turkey as a safe country for Syrian refugees, to return people there? Yes, it is possible. Looking at the problems we have had with mass movements of people over the years, we have to have a set of measures that break the link between getting in a boat and getting settlement. Until we do that, we are basically unable to deal with the crisis. That is what Europe has now set out to do, and we should encourage it in that goal.

[Keith Vaz (Leicester East) (Lab)]

I agree with the Prime Minister that progress has been made, but it has come at a cost. Turkey will be getting €3 billion, and it has asked for another €3 billion by the end of 2018. Greece, on the other hand, which has to process, house and return these migrants, has not been pledged any additional resources. Does he agree that next we need to take preventive action through Frontex to stop the criminal gangs exploiting those migrants, who now come through different routes?

[The Prime Minister]

I am grateful for what the right hon. Gentleman says. I would argue, first, that the money that is going to Turkey is not money for Turkey—it is money for Syrian refugees in Turkey and for it to make sure they are properly looked after. We have given support to Greece; there is a European programme to help. But above all Greece needs support from experts—translators and those with asylum expertise—which all the main countries in Europe are now offering to provide. What is required is a plan to make sure that it gets what it needs. I think that help in kind will probably be more useful for firming up the Greek system than just giving it money.

[Several hon. Members rose—]

[John Redwood (Wokingham) (Con)]

Thank you, Mr Speaker. Given the obvious difficulty in unifying the very varied economies and societies of the current EU, why is now a good time to accelerate possible Turkish membership?

[The Prime Minister]

It is not remotely on the cards that that will happen for many, many years to come. Every country—including this country—has a veto at every stage. For example, the French have said that they will hold a referendum on Turkish membership of the EU, and 75% of the French public do not want Turkey to join. For many countries looking towards Europe, the process of applying, opening these chapters and going through things like press freedom, human rights, the independence of the judiciary and so on, has been a good and useful process, and that is how we should see it.

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

Since the Bloomberg speech, the Prime Minister’s whole European strategy has been governed by trying to manage the divisions in his own party on that issue. Given the events of recent days, will he update the House on how that effort is going?

--- Later in debate ---

[The Prime Minister]

What I would say to the right hon. Gentleman, who in my view speaks a lot of sense about this issue, is that this country has to make a decision—it is not just one political party or another that has people on both sides of the argument. It is time for us as a country to have this debate, look at the advantages of staying in the EU, look at the risks on both sides, and make a decision. I am clear about what that decision should be, but we cannot hold a country inside an organisation against its will, and it is time again to put this question to the British people. I will campaign enthusiastically for remaining in the EU, not least after the agreements that I have achieved, and it is for others to set out their arguments. As democrats in this House of Commons, we should not be frightened of the will of the people.

[Mr Peter Lilley (Hitchin and Harpenden) (Con)]

Has my right hon. Friend noticed that the £3.5 billion savings on benefits for disabled people that the Chancellor needed to find is exactly equal to the planned increase since his previous Budget in our EU contributions over this Parliament? Given his success in persuading our partners—most of whom are not seeing any increase in their contributions—to be flexible over VAT, will he challenge them to forgo our increase? The British people will not take kindly to the idea that we must cut benefits for vulnerable people in order to hand over every penny to the EU.

[The Prime Minister]

I respectfully disagree with my right hon. Friend about this fundamental European issue. The £46 billion that we spend on disability benefits is many, many times more than anything we give to the European Union. Indeed, if we think about it, for every £1 paid in tax, a little over 1p goes to the EU for our net contribution. My right hon. Friend and I will be on different sides of the arguments, but I believe that 1p out of every £1 in tax gets us the trade, investment and co-operation that we need. He takes a different view, but I am sure that we will have a civilised argument about it. Because of the budget agreement that I reached in the last Parliament, our contributions are much lower than they otherwise would have been. We have a falling EU budget, rather than a rising EU budget, and that is because of this Government and this House of Commons.

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

The EU-Turkey deal will do nothing to help the 26,000 child refugees who are already alone in Europe. I met 12-year-olds who were alone in Calais this morning with no one to look after them. If the House of Lords votes this evening to support the Alf Dubs amendment to help 3,000 child refugees, will the Prime Minister drop his opposition and support children, as we did with the Kindertransport which many decades ago helped to save the life of Alf Dubs?

[The Prime Minister]

We do not support the Dubs amendment because, as I said previously, we think it is right to take additional children over and above the 20,000 refugees, but to take them from the region and to do so by working with the United Nations High Commissioner for Refugees. I think that the unfairness, if I might say that, of comparing child migrants in Europe with the Kindertransport is that countries such as France, Germany, Italy and Spain are safe countries, where anyone who claims asylum and has family in Britain is able to come to Britain. I do not believe that it is a fair comparison.

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

All Conservative Members were delighted to hear the Prime Minister reaffirm with vigour and confidence his determination to continue as a great reforming Government with the successful central themes of his Administration. Will he review whether there is a need to add to the deployment of HMS Enterprise in Libyan waters, and perhaps add other vessels in support?

[The Prime Minister]

There may well be a need to do more. There are two operations under way. There is a NATO operation in the Aegean, and, frankly, we want that operation to do more. At the moment, it is not sufficiently able to work with the Turkish coastguard in Turkish waters to send back boats to Turkey, and we want that to happen. There is also Operation Sophia in the central Mediterranean, where we have HMS Enterprise. Frankly, as the weather improves, I am concerned that the central Mediterranean route will open up again. That is why I held a meeting with the other Prime Ministers and Presidents to say that we have all got to put in more resources, recognising that we cannot let this route open up just as we sort out—or hope to sort out—the Aegean route.

[Ian Paisley (North Antrim) (DUP)]

The Lithuanian President has described the EU Turkish deal as

“on the edge of international law”.

Does the Prime Minister agree with that assessment? Does he accept that from June this year—from the English channel to the Syrian border—there will be a visa-free zone across the whole of Europe? What security questions does that pose for the United Kingdom on its borders?

[The Prime Minister]

First, on what President Grybauskaite has said, we are very clear that this deal must be compliant with international law and with international norms. That is exactly what the European Commission, the European Council and all the countries that are helping Greece will make sure is going to happen. The key thing is that if Turkey is a safe country for Syrian refugees, it should be possible to return Syrian refugees to Turkey, because they should be applying for asylum there rather than going on with their journey.

On the second issue that the hon. Gentleman raises, as I explained in my statement, if the rest of the EU gives visa-free access to Schengen for Turks, that is a right to travel and it is a right to visit; it is not a right to work and it is not a right to settle, and it does not in any way change their rights to come to the UK. I think there is quite a lot of scaremongering going on about this issue, because we are not changing our borders or our visa proposals one bit.

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

Does the Prime Minister share my concern about the steady Islamisation of Turkish society by its Government? Does he share my surprise that Turkey is now so confident that it can stop the boats coming, when it has not been able to or has not wished to do so in the past? Finally, does he share my fear that mass migration to Europe will fuel the rise of far-right, neo-Nazi parties in EU countries that were foolish enough to get rid of their national borders?

[The Prime Minister]

I am in the happy position of being able to agree with my right hon. Friend on all those things. As someone who spent time in Turkey as a student, I think its secularism and its belief in wanting to become more like a western democracy is one of its strengths, and we should encourage it. I also agree with him that countries that do not properly control their borders risk the rise of unsavoury elements, and that is why it is so important we maintain our borders. Obviously, when it comes to the issue of wanting to return migrants to Turkey, it is very important that Turkey is and remains a safe country, but that is what it is today.

[Liz Kendall (Leicester West) (Lab)]

The Prime Minister says he is a compassionate Conservative leading a one nation Government, so how does he feel when a former leader of his party and a member of his Cabinet for six years says this simply is not true?

[The Prime Minister]

Obviously, we have worked very closely together for the last six years, and I am very proud of the things that we have done together. It is this Government that have lifted almost 4 million people out of income tax. It is this Government that have seen an increase in disability benefit. Above all, it is this Government—a lot of this is thanks to the hard work of my right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith)—that, because of the growing economy and the changes to welfare, have seen 2.4 million people get work in our country. Behind those statistics are human beings who are able to put food on the table and have a better life for their families because of the work that we have done together. I am sad that my right hon. Friend has left the Government, but I guarantee that the work of being a compassionate Conservative Government will continue.

[Mr Keith Simpson (Broadland) (Con)]

Given the nature of the terrorist threat, does my right hon. Friend agree with me about how important it is that European countries’ intelligence and security agencies co-operate fully with ours in defeating terrorism, and that it is absurd to suggest that membership of the EU is likely to result in terrorist attacks on the United Kingdom?

[The Prime Minister]

It is important that our agencies work together. On the whole, that will be on a bilateral basis, but it is worth understanding that in the modern European Union, there are a series of mechanisms to do with criminal records, border information, watch lists and passenger name records, all of which help to keep us safer than we would otherwise be. To be completely fair, if we left the EU we could try to negotiate our way back into some of those things, but it would take time, and this prompts the question: if you want to get back into them, why are you getting out of them?

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

Will the Prime Minister now justify the nearly £3 billion giveaway in capital gains tax for the wealthy?

[The Prime Minister]

I think it is right to cut capital gains tax, because we want to have an enterprising economy in which entrepreneurs want to get out there, set up businesses, and create wealth and jobs to generate the tax revenues that pay for the health service and the schools that we want for our country. I note that the capital gains tax rate, at 20%, will be a little bit higher than it was when the hon. Gentleman was last in government. Because we are not cutting it for carried interest, we will not have to face the absurd situation we had when he was in government in which people working in the City were paying less tax than the people who cleaned their offices.

[Mrs Anne Main (St Albans) (Con)]

The Prime Minister just sought to reassure my right hon. Friend the Member for Wokingham (John Redwood) that the accession of Turkey was a very long way off. Is this uncertainty what staying in looks like?

[The Prime Minister]

I have described the situation as best I can. For any new accession, there is veto by every country at every stage. As I see it, if we look at certain countries such as France, we find that there is no prospect of the French allowing full Turkish membership of the EU. In this debate that we are having about Europe—my hon. Friend and I will unfortunately be on opposite sides of the debate, but I promise that it will be a civilised one—I want to get rid of any of the potential scares on either side of the argument. Let us argue about what is actually going to happen rather than things that are not going to happen.

[Paul Flynn (Newport West) (Lab)]

There is merit in selecting the asylum seekers in greatest need, because those people will have the most serious health problems—for some of them, lifelong health problems. Will the Prime Minister agree to compensate those authorities that fully take asylum seekers in, and, in the interests of the asylum seekers and the local community, will he help to spread these asylum seekers fairly throughout the country? Will he tell us how many asylum seekers his constituency helped last year and how many he expects to welcome this year?

[The Prime Minister]

First, the hon. Gentleman is right to say that by selecting the 20,000 from the refugee camps, with the help of organisations such as the UNHCR we can try to choose the most vulnerable people who might have disabilities or other issues with which we in a civilised country like the United Kingdom can help. On the issue of helping local authorities, there is DFID money in year one, and we are coming forward with this package for subsequent years.

As for my own constituency, a number of families have been resettled, although I do not have the number off the top of my head. I agree with the hon. Gentleman that we want to encourage more local authorities to come forward, which is where the Under-Secretary of State for Refugees, my hon. Friend the Member for Watford (Richard Harrington), is working so hard.

[Damian Green (Ashford) (Con)]

Many of us were delighted to hear the Prime Minister recommit himself to running a one nation Conservative Government, which is what the country voted for only last May. On the issue of refugees, does he agree that it is increasingly clear that this terrible crisis can be solved only through collective action at a European level? Will he commit the British Government to continue to play a leading and constructive role in facing this crisis?

--- Later in debate ---

[The Prime Minister]

I thank my right hon. Friend for what he said. It does require collective action, because the scale of the challenge is so great that it needs the Greek border to be harder and more efficiently run, which requires assistance from other countries. In my view, it also requires the presence of military assets, including NATO assets in the eastern Mediterranean and other assets in the central Mediterranean, to help the civilian authorities with the work they do. Where Britain can bring a lot of experience and heft to this is as Europe’s leading military power and as a great expert in how to deal with asylum applications and processes and all the complicated legalities. We are well placed to help on every front.

[Paula Sherriff (Dewsbury) (Lab)]

I would like to thank the Prime Minister for what he said about the so-called tampon tax. This is a great victory for all who have campaigned on this issue, and I am sure that the whole House will congratulate Laura Coryton, whose petition did so much to raise awareness. Will the Prime Minister confirm that he will accept our cross-party amendment tomorrow to provide for a zero rate of VAT in this year’s Finance Bill, and that the Bill will pass through this House before the referendum in June? Will he pledge that this vital funding for women’s services that was provided from the receipts of this VAT will continue? I hope that today is the day on which we can consign the vagina-added tax to history.

[The Prime Minister]

May I once again pay tribute to the hon. Lady, not least for that new epithet? I think that that one will live on in Hansard for many years to come. I should also like to pay tribute to my hon. Friend the Member for Berwick-upon-Tweed (Mrs Trevelyan) for the work that she has done. We will be accepting the amendment, and I am sure that the timing will be discussed further. For my part, all I can say is that getting over the language barriers to explain the arguments on sanitary products in a 28-person European Council is something that will stay with me for a while.

[Several hon. Members rose—]

[Philip Davies (Shipley) (Con)]

The Prime Minister has reiterated his Government’s support for Turkey’s accession to the European Union. In doing so, he helpfully pointed out that there would be no status quo option in the forthcoming referendum. What assessment has he made of the long-term effect on migration from Turkey, and of any additional costs to the UK taxpayer in increased contributions to the EU, if it were to join? Or is he in favour of Turkey’s accession to the EU at any price to the UK taxpayer?

[The Prime Minister]

I think I said earlier that there was not a remote prospect of that happening, so I do not think that my hon. Friend has to worry about that. In terms of future accessions to the EU, we set out in our manifesto that we were going to take a much tougher approach. We believe that countries that join the EU should get much closer to the current level of GDP per capita, because the big migrations have been caused when some EU countries are much poorer than others. No country can get into the EU without unanimity among the existing members, so this is something over which we and other countries have a veto. We can absolutely insist on these different accession arrangements.

[Alison Thewliss (Glasgow Central) (SNP)]

When I first raised the issue of the tampon tax last year, the Financial Secretary to the Treasury was quite dismissive, so I would like to commend the Government for this U-turn. I should also like to thank the women of this country who have put such pressure on the Government to take action on this important issue. Given that this was in the Scottish National party’s manifesto, are there any other aspects of that manifesto that the Prime Minister would like to help us to implement?

[The Prime Minister]

I am very grateful for the hon. Lady’s work on this, and I am glad to have helped. I think she will find that this will have an impact on other European countries, because there is now huge pressure on some of those countries to explain their own level of tax on sanitary products. The Irish are of course leading the way with a 0% rate. On the matter of the rest of the SNP manifesto, I have to say that if we implemented it in full and had an independent Scotland, we would basically be bankrupt and have to tax everything.

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

May I warmly welcome my right hon. Friend’s generous comments about my right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith), who is so widely respected on these Benches? Does the Prime Minister agree that two of the three greatest reforms of the Government he leads are restoring fiscal rectitude and welfare reform? May I therefore encourage him to continue with both equally?

[The Prime Minister]

I wholeheartedly agree with my hon. Friend. This goes to the point about the importance of the welfare cap. We have controlled departmental spending carefully for years in our country, but welfare spending has often run ahead. It was up by 60% under the last Labour Government. That money cannot then be spent on hospitals, schools and vital public services. My hon. Friend is absolutely right: fiscal rectitude, welfare reform and making sure we keep welfare spending under control are vital components of a one nation Government.

[Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)]

Last week, a cross-party group of MPs heard powerful testimony from an 18-year-old Yazidi girl who had been kidnapped by Daesh and subsequently escaped. John Kerry has now described Daesh’s action against the Yazidis and other minorities as genocide. Does the Prime Minister agree that we need to do more to help the Yazidis, and will he raise this matter with the Governments of Iraq and Turkey?

[The Prime Minister]

I agree with the hon. Gentleman that we must do more to help the Yazidis, which is why we are taking action in support of the Iraqi Government, and it is the reason for the work we are doing in Syria. On what Secretary of State Kerry said, I listened very carefully to that. The Government’s policy—I think this was the case under previous Governments—that genocide is declared as a matter of legal opinion, rather than political opinion, but it has to be said that there is a growing body of evidence that m’learned friends need to look at.

[Several hon. Members rose—]

[James Cartlidge (South Suffolk) (Con)]

I welcome the fact that at the end of the Prime Minister’s statement he reminded the House of his commitment to estate regeneration. Does my right hon. Friend agree that that is a classic example of one nation Conservatism, given that it is proven to deliver not only better homes and communities for those who live in our inner cities, but the supply of new homes for first-time buyers?

[The Prime Minister]

My hon. Friend is right. The aim should be to remove all the barriers in the way of people progressing and making the most of their lives. That is why regenerating estates can play a huge part, as can addressing the shortage of childcare places, improving our schools and dealing with mental health issues. All these things are about unblocking barriers to success for people.

[Mr Dennis Skinner (Bolsover) (Lab)]

Will the Prime Minister give us an assurance that, in view of the financial mess that has been created with this Budget, this will be the Chancellor of the Exchequer’s last Budget? He has had eight already; only cats have nine lives.

[The Prime Minister]

No.

[Mr Andrew Tyrie (Chichester) (Con)]

Is it not incumbent on those who do not accept the Budget cuts to tell us how else they would reduce the deficit?

[The Prime Minister]

My right hon. Friend is right. There is a series of difficult decisions that we have to take when facing an 11% budget deficit, as we were in 2010, and we still need to get this country back to surplus. I would argue that this is not some artificial target. We have to make sure that in the good years we are putting aside money for a rainy day. That is what this is all about. It does involve difficult decisions. We do not always get those decisions right—I am the first to say that—but it is very important that we stick to the long-term economic plan of getting this country back into the black.

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

In his statement the Prime Minister mentioned the work of both his former Secretary of State for Work and Pensions and his current Chancellor, so is he ruling out, as he suggested to the right hon. Member for Hitchin and Harpenden (Mr Lilley), further negotiation with the EU on benefits and spending? How does he intend to fix the big hole in his Budget that appeared this weekend?

[The Prime Minister]

The Budget contains a very good package of measures that will help small businesses, get the country back to work and support our schools. The Chancellor will be here tomorrow winding up the Budget debate, and in the autumn statement a new forecast will be produced and all these issues will be addressed.

[Sir Edward Leigh (Gainsborough) (Con)]

The Prime Minister is a consummate performer at the Dispatch Box and normally I understand everything he says. I do not always agree with it, but I understand it. I am now confused by the answers given to my hon. Friend the Member for Shipley (Philip Davies), my right hon. Friend the Member for Wokingham (John Redwood) and my hon. Friend the Member for St Albans (Mrs Main). The Government say that they enthusiastically back Turkey’s accession to the EU, yet apparently they announce something but wish for something else. May we get these facts right: we do want Turkey to join the EU; we do believe in free movement of people; we do want to stay in the EU; and therefore we welcome 77 million Turks living and working here?

[The Prime Minister]

The answer to that is no, because Turkey is not part of the EU. Look, I know that in this debate, which I know is going to get very passionate, people want to raise potential concerns and worries to support their argument, but I have say that when it comes to Turkey being a member of the EU, this is not remotely in prospect. Every country has a veto at every stage. The French have said that they are going to hold a referendum. So in this debate let us talk about the things that are going to happen, not the things that are not going to happen. If we stay in a reformed European Union, we keep our borders, we keep our right to set our own visa policy, we keep our own asylum and immigration policy, and we can stop anyone we want to at our borders. Yes, we do believe in the free movement of people to go and live and work in other European countries, as many people in our own country do, but it is not an unqualified right. That is why, if people come here and they cannot find a job, they do not get unemployment benefit, they get sent home after six months and they do not get access to our welfare system in full for four years. Ironically, if we were to leave the EU and take up a Norway-style position or something like that, we would not have those welfare restrictions. So let us set out what can happen, rather than what is not going to happen.

[Mary Creagh (Wakefield) (Lab)]

Lebanon took more refugees in two days last year than the UK has taken in the five years of the Syrian civil war, so when the Prime Minister says it is better to keep refugees in the region, countries there look at us and close their borders, because they have taken 4 million refugees. Will the Prime Minister tell the House what monitoring we are conducting with our European and NATO allies of the ceasefire in Syria? How will violations be reported? What is the timetable for moving towards peace and democratic elections in Syria to allow those refugees to return home?

[The Prime Minister]

There are lots of questions there. On the question about how we monitor the ceasefire, we are involved in the cell in Geneva that looks at that. I cannot paint an entirely rosy picture, but I think that the ceasefire is better than people expected. As a result, the peace talks are under way.

On Lebanon, the hon. Lady is absolutely right: it has taken a huge number of refugees. It is, of course, the neighbouring country, and neighbouring countries are under an obligation to do so, and Lebanon is fulfilling its obligations. We are helping with a massive aid programme, but we are also helping the Lebanese armed forces, who are now hugely capable because of all the work the United Kingdom has done. They are having considerable success in making sure they keep Daesh out of their own country.

[Victoria Atkins (Louth and Horncastle) (Con)]

The Home Affairs Committee visited Europol recently to see the work done by police forces co-operating across the EU. We were told that 90% of asylum seekers in the hotspots are thought to have reached Europe with the help of human traffickers. Does my right hon. Friend agree that we need to break these criminal gangs to stop them profiting from human tragedy?

[The Prime Minister]

My hon. Friend is absolutely right. Already, because of the action we are starting to take, the people traffickers are seeing some of their markets more difficult to operate, and some of the costs are going up. We need to finish the job. Europol can play an important role in that, as can the National Crime Agency and our co-operating with other European partners. We have to put these people out of business.

[Mr David Winnick (Walsall North) (Lab)]

On the domestic aspect of the Prime Minister’s statement, not once today has he shown understanding of why there was such a public outcry throughout the country over the Government’s intention to penalise the most vulnerable. He is becoming increasingly out of touch.

[The Prime Minister]

Having spent £42 billion on disability benefits when I became Prime Minister, that figure is going to go up to over £46 billion by the end of this Parliament. We will spend more on disability benefits. If we measure compassion by the scale of the benefits paid, there have been more in every year under this Government than ever under a Labour Government. Instead of coming here and castigating me, the hon. Gentleman should be castigating his own party.

[Several hon. Members rose—]

[Henry Smith (Crawley) (Con)]

What recent discussions have been had with other NATO members on bearing down on and stopping the vile people-trafficking trade from Syria?

[The Prime Minister]

We are having good discussions, but, frankly, we still need NATO to be able to do more. I would like NATO ships to be able to spend more time in Turkish territorial waters, working with the Turkish coastguard on turning back boats, because it is stopping that trade that will actually undermine the people-smuggling gangs.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

May I bring the Prime Minister back to the issue of unaccompanied asylum-seeking children in Calais? He is right to say that those children can apply to join parents here, but I understand that, of the 150 take charge requests issued by the French Government, not one has been agreed yet by the British Government. Will the Prime Minister undertake to look at that and bring forward proposals to get the process working before any more children suffer any longer?

[The Prime Minister]

I am happy to look at this. I discussed it with the French President. The rules are clear: if someone has direct family here, they apply for asylum and they will come here, but we need to make sure that happens.

[Dr Andrew Murrison (South West Wiltshire) (Con)]

In congratulating the ship’s company of RFA Mounts Bay, may I draw my right hon. Friend’s attention particularly to the embarked medical team, whose work under the most professionally challenging, extraordinary circumstances is surely in the best traditions of the naval service?

[The Prime Minister]

I am very happy to join my hon. Friend in doing that. I had the huge privilege of going aboard one of Her Majesty’s ships when it is was in Malta. It had recently been taking part in combating the people-smuggling operations and picking people up. It had saved literally thousands of lives, and we could see—whether it was the medical teams, the Royal Marines or the royal naval personnel—that there was huge pride in what they had done.

[Nick Thomas-Symonds (Torfaen) (Lab)]

The Prime Minister’s tagging on of the events of recent days to a statement on international affairs reminds me of when one of his predecessors, Harold Macmillan, unsuccessfully tried to explain chaos in his own Treasury as “a little local difficulty”. Does the Prime Minister accept that, with the revelation that the Chancellor does not care about vulnerable people because there are not enough Tory voters among them, his own little local difficulty means that compassionate conservatism is completely dead?

[The Prime Minister]

If I had come to the House and not mentioned these issues, which has enabled colleagues on both sides of the House to question me about them, I think there would have been justifiable outcry, so I wanted to give the hon. Gentleman the opportunity to do so. When it comes to people casting their vote, we won the last election because we won the support of working people, and we did so because we were creating jobs, cutting taxes, reforming welfare, improving schools, investing in our country and making the economy stronger and our society fairer.

[Alex Chalk (Cheltenham) (Con)]

Is it not right to acknowledge that the British policy of taking refugees from the camps supports those who are in no position to take the journey—the poor, the sick, the weak and the vulnerable—and is absolutely the right thing to do?

[The Prime Minister]

My hon. Friend is absolutely right, and I think that more and more countries can now see that that is the right approach.

[Derek Twigg (Halton) (Lab)]

If fighting resumes in Syria, what is plan B?

--- Later in debate ---

[The Prime Minister]

Our plan is to continue with the long-term patient work of combating Daesh militarily, which, of course, continues, and, in terms of building the future of Syria, supporting moderate opposition elements that can support a transitional Government in Syria. In the end, a Government in Syria without moderate Sunni opinion in them will never be able to unite that country, so we have to continue with that plan.

[Nick Herbert (Arundel and South Downs) (Con)]

Does the Prime Minister agree that the weakness in the position of those who criticised the agreement between the EU and Turkey in the run-up to it—that also appeared to be the position of the Leader of the Opposition today—is that they have signally failed to advance any credible alternative to those arrangements? Surely, it is in the British national interest to support our partners in making a sensible arrangement with Turkey to prevent migrants from making a perilous journey overseas, while maintaining our own borders.

[The Prime Minister]

I agree with my right hon. Friend. I think we get the best of both worlds. It is worth asking what difference it would make if we were not there. I suppose my answer is that I think the European Union would have continued for longer with the rather borderless approach of relocating migrants around different European countries. That approach failed. What was required was an approach that was more about looking upstream, supporting people in the camps, finding the funding for that, hardening the external border and breaking the link between getting in a boat and getting settlement. I think that Britain, including my right hon. Friend the Home Secretary, who has been to Council meeting after Council meeting, has done a huge amount to drive that agenda forward.

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

Angela Maher, the proud mother of two disabled sons, rang me to say, “I could cry,” and then she did, saying, “Why is it always people like us?” Can the Prime Minister rule out, as Robert Meadowcroft, the chief executive of Muscular Dystrophy UK, has said today, any further cuts to support for disabled people during this Parliament?

[The Prime Minister]

We are increasing the amount of money going to disabled people, as I have explained many times. My right hon. Friend the new Secretary of State for Work and Pensions will set out our approach in a moment, but we set out in our manifesto the changes we needed to make to get the welfare budget under control. We have made those changes and those are the changes we are pursuing.

[Alberto Costa (South Leicestershire) (Con)]

I thank my right hon. Friend for the fair and sensible way in which he has negotiated with our EU partners on the refugee crisis. Will he ensure that UK local authorities such as Blaby District Council, Harborough District Council and, indeed, Leicestershire County Council are properly resourced and financed if they are going to welcome some of the Syrian refugees?

[The Prime Minister]

I believe that they are properly resourced because of the Department for International Development money that is available, particularly in the first year, and the ongoing support that is being given. I encourage local councils to make the most of this opportunity. Families are going to come here who want to make a home and who will be hard working and contribute to our communities, and I encourage local councils to come forward with their plans.

[Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)]

Other European countries are revising the number of refugees that they are taking in. Just what will it take for the Government to revise upwards the figure of 20,000 refugees that we have agreed to take, particularly since there are thousands of unaccompanied children stranded abroad who have disappeared? We have a moral obligation, surely, to look after the most vulnerable in society.

[The Prime Minister]

If we look at the charts that the European Union is now publishing, it is perfectly apparent that Britain is doing more than the vast majority of other countries. Some countries that made pledges to resettle Syrian refugees have taken one, two, or, in some cases, none. We are doing far more than other countries. Our system is working.

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

In my constituency, Boston has seen the highest level of immigration from eastern Europe of anywhere in the country. Can my right hon. Friend assure me that it would be perfectly reasonable for this country, or indeed any other in Europe, to veto the accession of Turkey?

[The Prime Minister]

Of course that is the case. Every country has a veto at every stage, so the agreement to open one additional chapter in Turkish accession was something that had to be agreed by every country, including Cyprus and Greece. There is a veto at every stage, and other countries have made their position perfectly clear.

[Caroline Flint (Don Valley) (Lab)]

May I ask the Prime Minister when the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith) first spoke to him about his concerns about pressure being put on people with disabilities to fill the gap created by the deficit?

[The Prime Minister]

Obviously, I received a letter from my right hon. Friend on Friday afternoon on my return from the European Council. There had been prolonged discussions at the heart of Government about disability benefit reform, but, as I have said, we are not going ahead with those proposals.

[Stephen Hammond (Wimbledon) (Con)]

I believe the real test of compassion is not Opposition words but Government action. Will my right hon. Friend confirm that the Government that he leads are taking 3.8 million people out of tax, ensuring that the richest are paying a large amount, creating 2.4 million jobs and spending more than £50 billion on support for the sick and the disabled?

[The Prime Minister]

My hon. Friend makes a good point. Look at the figures and at what is happening to some of the poorest families in our country, who are able now to get jobs, to get work and to pay less tax, and who will be getting a £900-a-year pay rise through the national living wage. That is what is happening for those families. In terms of people at the top, the top 1% are paying a higher percentage of income tax than they ever did under Labour—some 27% of the total. With a growing economy, that means that we can also build a fairer society.

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

Amazingly, a few moments ago I heard the Prime Minister praise an independent Ireland and in the same breath slag off the idea of Scotland matching the possibilities that Ireland has today.

Now to the matter at hand. It is claimed that the Government took aim at the poor because they do not vote Tory. A wee while ago, the Government tried to mug Scotland for £7 billion, presumably for the very same reason. Who else in this society does the Prime Minister have in his sights?

[The Prime Minister]

I do not think that the Irish based their entire case on oil revenues that disappeared. [Interruption.] Oh, that was not the plan. I seem to remember that the plan was referring to $100-a-barrel oil as a modest, mid-market—[Interruption.] You can tell they do not like it. When you are shouting, you are losing.

[Mr Speaker]

Order. Mr MacNeil, I have told you before that you are an exceptionally excitable fellow. You have aspirations to statesmanship and must comport yourself accordingly. Now, we will have an altogether more subdued tone.

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

It is often said that the EU is undemocratic and that laws are imposed on us. Is not the decision that the Prime Minister reports today on VAT an example of how Britain can mould and shape those rules and regulations?

[The Prime Minister]

I agree with my hon. Friend. This supports the argument that if we get stuck in, we can change these things. It is frustrating, and those of us on either side of the argument should accept the frustrations referred to by the other side. VAT has been frustrating—frustrating for the last Government, and frustrating for us. Restrictions were put there so that we could have reasonable trade and so that we would not have cross-border shopping issues and tax competition issues, but they are too inflexible and this change is worth while.

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

Does the Prime Minister agree that world populations are moving and changing in a way that we will not wish away? Does he agree that we need a strong and united European Union to manage those great challenges and that, without it, we will be alone and unable to help those people?

[The Prime Minister]

Obviously, co-operation among the EU nations helps, but, as well as that co-operation, it is important that we have the right ideas. The hon. Gentleman is right to say there is a lot of movement of people around the world. The scale of movement from Africa has been so much greater in recent years not because of growing African poverty, but because of the weakness of north African states and the lack of adequate border arrangements. If we have the right thinking, plus co-operation, we can get the right answer.

[Mark Pawsey (Rugby) (Con)]

Does the Prime Minister agree that the best way to show compassion and to provide support for those in need, whether at home, Syria or elsewhere in the world, is to build a strong economy and generate the resources needed to look after them?

[The Prime Minister]

My hon. Friend is absolutely right. We cannot show compassion unless we have a strong economy generating the revenues that our health service, our schools and our welfare system need. Conservative Members understand that compassion is a combination of getting the economy right and then making the right choices.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Despite the Prime Minister’s best efforts to forge ever closer union within his own party, there is a real risk that the UK will become decoupled from its biggest market and most strategic ally. What impact does he think Russian bombing on Syria and tactical resignation by his Cabinet have had on the appetite for Brexit in Britain?

[The Prime Minister]

There is a strong argument to say that, at a time of international danger and difficulty, there is strength in numbers and that we should stick with our allies and friends, as we confront Putin in the east of our continent and ISIL in the south. As for ever closer union among my colleagues, we believe in co-operation rather than uniformity.

[Several hon. Members rose—]

Machinery of Government

Lord Cameron of Chipping Norton Excerpts

Wednesday 16th March 2016 Written Statements

[The Prime Minister (Mr David Cameron)]

This written statement confirms that responsibility for the regulation of claims management companies will transfer from the Ministry of Justice to the Financial Conduct Authority. The date for the transfer will be announced in due course.

[HCWS623]