Debate on the Address

Bob Russell Excerpts

Tuesday 25th May 2010 Commons Chamber

[The Prime Minister]

I am very grateful for the hon. Gentleman’s question, although I hope that before long he will be referring to it as “our Government” rather than “his Government”. You are absolutely right—[Hon. Members: “Wooh!] Sorry, he is absolutely right—I will get the hang of it eventually—and we will be prioritising social housing, not least because the last Government left a huge black hole that they refused to fund—

[Bob Russell (Colchester) (LD)]

Failed miserably, failed miserably!

[The Prime Minister]

I ask the hon. Gentleman to calm down.

Some of the £6 billion in savings that we have found will be put back into the social housing that Labour promised and never delivered.

Nothing will better sum up the clean break that this Government will make with the past than our freedom Bill. We will repeal ridiculous laws that allow a never-ending list of public bodies, from local councils to quangos, to enter people’s homes without permission. We will scrap Labour’s plans for ID cards and, after the Labour Government failed to act for so many years, we will end the incarceration of children for immigration purposes once and for all.

We are going to bring the same spirit of radical change to the biggest challenge of all: sorting out the mess that Labour has made of our economy. Everything that the previous Government told us was wrong. They told us that they had abolished boom and bust, but they gave us the longest and deepest recession on record. They reassured us that we were better prepared for this recession than other countries, yet we were one of the first countries into recession and one of the last countries out of recession, and we have one of the weakest recoveries. They promised us prudence, but they left us with the largest UK budget deficit in peacetime history. They lectured us about their golden rules, but in the end the only golden rule was: “Never trust Labour with the economy of this country”.

It stops now—no more spending beyond our means; no more reckless borrowing; no more taxing of the poorest to pay for the mistakes of the few. In just two weeks, this Government have done more for our economy than Labour managed in the last two years. We have changed the way Budgets are written, by establishing a new Office for Budget Responsibility, which will stop any Chancellor fiddling the figures ever again in our history. We have launched and completed an in-year spending review to save £6 billion of waste—waste that Labour still says is vital to our recovery. What a ridiculous argument. Do Labour Members really think that the £125 million a year that we discovered the previous Government were spending on taxis, the £320 million that they spent on hotel bills or the £7 million spent by one Department on stationery are necessary? Are all these luxuries somehow essential to firing the engines of our economy? Of course they are not, and it is right that they are being reduced.

It is because we have found these savings that we can stop one of the most stupid, reckless and irresponsible tax rises ever dreamt up in the middle of a recession, which was the idea of putting up national insurance on every job in our country. With this coalition Government, that jobs tax is going. That is what we have done in the last two weeks.

[The Prime Minister]

The whole point is that we are getting to grips with spending so that we do not have to put up taxes. The only people I remember with a plan to raise VAT were the last Government, who actually published it, although to be fair to the hon. Gentleman, he had lost his first seat then—and we are all looking forward to him losing his second one.

That is what we have done in two weeks; the Queen’s Speech shows what we will do in the next two years. We are going to bring some law and order to the banking system, which Labour allowed to wreck our economy. There will be more powers to the Bank of England, in our financial services regulation Bill. We will get to grips with the unacceptable bonus culture and open up credit lines for small businesses. We want to ensure that our banks serve our economy, rather than the other way round. We are going to change our whole economy, so that it is not built on debt and waste, but instead on savings and investment.

Our energy security and green economy Bill will mean more energy efficiency in our homes and our businesses. From the savings that we have already identified, we will make £50 million available for the building and refurbishment of further education colleges. One of the last acts of the previous Government was to completely bungle that building programme. One of the first acts of the new Government will be to start putting that wrong right. If we add to that high-speed rail, an interactive energy grid, corporation tax cuts and super-fast broadband, we will get a completely new economy and a Britain that is back open for business.

And one last thing: we will finally bring justice to the Equitable Life policyholders—people who were shamelessly betrayed, year after year, by the bunch of people sitting there on the Opposition Front Bench.

The Government we have just had were not just disastrous for our economy; they were bad for our society, too. This Queen’s Speech marks a decisive shift from the past, treating not just the symptoms of what is broken in our society, but its root causes. In Britain today there are families better off on benefits than in work and couples with children being paid more to live apart. We have taxpayers who go out to work, earning just £15,000 or £16,000, and are expected to carry on supporting people who refuse to work. All these things need to change. Our welfare reform Bill will begin the process of benefit reform.

The programme that we have set out in this Queen’s Speech will mean real changes straight away in our schools, too.

[Bob Russell]

Will the Prime Minister confirm that, after 13 years of a Labour Government, the gap between rich and poor had widened, and that the number of children living in poverty was among the worst in Europe—worse than that of Latvia, Lithuania or Estonia?

[The Prime Minister]

The hon. Gentleman is entirely right, and worse than that—[Interruption.] The former Health Secretary says that he is wrong. That shows how out of touch they are: they do not even know the damage that their Government did. We can add to that the fact that there are more children here in households where nobody works than in any other country in Europe. That is the record that they have left, and that is the record that we want to put right. So before the summer, we want to pass an education Bill that allows our best schools to reopen as academies straight away. We will not stop there. There is going to be greater freedom for all schools, radical reform so that new schools can be established, more trust for teachers and, through our pupil premium, we will make sure that extra funding goes to the poorest pupils.

We will radically reform all our public services so that they serve the public, not bureaucrats in Whitehall. We are going to do things in a completely different way from what has gone before, dismantling the top-down apparatus of state control and bringing in real choice and accountability. So with policing, out go centralisation, unnecessary paperwork and central targets, and in come beat-based police meetings and elected individuals as police commissioners. With the NHS, out go centrally directed hospital closures and politically motivated targets, and in come full patient choice and elections for your primary care trust. And that is not all. Because we are getting rid of Labour’s jobs tax, we can now afford to fund the cancer drugs that people have desperately needed for so long, to extend life and give hope to thousands of people in our country.

This Queen’s Speech addresses problems not only in our economy and our society but in our politics, too. It includes a comprehensive programme for pushing power downwards and outwards from this place. That is what the decentralisation and localism Bill is all about. Already we have shown our intent: the imposition of new unitary councils—going; regional spatial strategies—going; home information packs—gone; comprehensive area assessments—going; Standards Board bureaucracy—going; the excessive ring-fencing of local council budgets, and treating local government like infants—gone. We will be the Government who give politics and power back to the people. Not only will we push power outwards; we will also sort out the other issues that brought this House into disrepute, with a clampdown on lobbying and the right for constituents to recall any MP found guilty of serious wrongdoing.