Scotland
The Secretary of State was asked—
Defence Spending
Around £1.4 billion of the defence budget has been spent directly in Scotland in each of the past three years. That reflects the vital contribution that Scotland makes to defence, both in terms of the brave men and women who join our armed forces and the high-quality Scottish companies that provide the sophisticated equipment used on the modern battlefield.
Has my right hon. Friend had time to work out how much of that spending might be blocked by a political party that may be in government in Scotland and that has policies that are likely to prevent some of that vital work from being done in Scotland—[Interruption.]
Order. I see that I may have to keep a tight rein on proceedings today. As it is the hon. Lady, I will allow the question.
As ever, I will endeavour to keep my answer brief and factual. As at 1 April 2006, there were 13,520 regular forces serving in Scotland. The Ministry of Defence employs some 20,000 people in Scotland, including approximately 13,500 regular members of the armed services and 6,100 civilians, not including contractor personnel.
Has the Secretary of State made an assessment of the effect on all that military investment in Scotland if the party that came first in the elections succeeds in persuading the party that came last to overcome the vestiges of its principles and join a coalition targeted, as usual, against the military?
As he watched the Scottish elections from afar, I fear that the hon. Gentleman may not fully have appreciated the fact that two thirds of the Scottish electorate voted against separatism. Indeed, both the principal parties—my own and the Scottish National party—secured between 32 and 33 per cent. of the vote. Therefore, some of the more cataclysmic headlines that have been written in recent days do not reflect the overwhelming consensus still in Scotland that we are proud to remain part of the United Kingdom.
May I inform the Secretary of State that for the past 40 years defence has been an integral part of the economy of my area? In the past three years, more than £300 million has been put into the local economy each year. With direct and indirect jobs at the Clyde naval base, we have more than 10,000 jobs. While words may come easy to some people, we cannot play fast and loose with people’s jobs. Defence is an important part of our area and may it continue to be so.
Her Majesty’s naval base on the Clyde, which incorporates the Faslane base, is one of the main naval bases in the United Kingdom and the headquarters of the Royal Navy in Scotland. I am sure that it will continue to have a strong future based on the Clyde and serving the defence interests not only of Scotland, but of the whole of the United Kingdom.
Will the Secretary of State confirm that there are less service jobs in Scotland, less bases in Scotland, less shipbuilding jobs in Scotland—[Hon. Members: “Fewer.”]—and fewer Scottish regiments than when Labour came to power?
Obviously our forces have to reflect the nature of the challenges that the country faces at any point. I am not convinced that the alternatives that were offered in recent weeks in Scotland would produce a better future for Scottish regiments or—certainly—for Scottish shipbuilding.
How many jobs does the Secretary of State believe would be created in Scotland by the construction of two aircraft carriers for the Royal Navy, and how many aircraft carriers would be needed by an independent Scotland?
I shall not indulge in answering the second, hypothetical question because, as I have said, Scottish voters once again overwhelmingly rejected independence only last week. On the first question, it is the case that significant opportunities in shipbuilding and refitting will arise not only from the potential orders for the Royal Navy aircraft carriers but from the pre-existing programme of work, which has brought new life to the Yarrow yard and will do the same for the Rosyth base in the east of Scotland.
Given that defence is just one of the issues on which the new Scottish Executive will have to work with the UK Government, does the Secretary of State regret his complacency in not putting in place proper mechanisms for interaction between the Scottish Executive and the UK Government? Perhaps he can tell us now just what will happen when the prospective First Minister and his Lib Dem allies, in or out of coalition, seek to thwart the upgrade of Trident.
The hon. Gentleman’s question shows the risks involved in preparing a question ahead of events. He has repeated it many times in the past, I will give him that much, but it would be unwise of me to prejudge the appropriate conversations taking place between all the parties that failed to secure a majority in last week’s Scottish elections.
It is clear from that answer that no proper mechanisms are in place to enable the Scottish Executive to work with the UK Government when those bodies are led by parties of different persuasions. The Government have had eight years to put such a mechanism in place, and the fact that they have failed to do so is a reflection on them. Will the Secretary of State clarify what will be his Government’s relationship with the prospective new First Minister—
Order. We are talking about defence. I think that we must move on.
Climate Change Bill
The draft climate change Bill is out for consultation on a UK-wide basis. It has not yet been determined how the functions of the Bill would be performed. The UK Government and all the devolved Administrations are committed to working in partnership to combat climate change.
It is patently obvious that the only legislation likely to get through the Scottish Parliament in the current circumstances is that which has broad political support. Does my hon. Friend agree, therefore, that it would make sense for the UK Government and the Scottish Executive and Parliament to work together to ensure that a Scottish climate change Bill is brought forward that complements the UK Bill which, as he has noted, has now reached an advanced state of consultation?
Clearly, various devolved responsibilities are involved in promoting renewables and in the work across a range of sectors to promote climate change measures. It is self-evident that global warming can be tackled only by nations working together, irrespective of national or international borders. It is therefore incumbent on all nations to do everything that they can to tackle climate change. I pay tribute to my hon. Friend for the work that he has done, especially with his private Member’s Bill, to raise awareness of these matters, in this House and throughout Scotland.
Does the Minister accept that the current scientific consensus is that we need a reduction in emissions of 80 per cent. rather than 60 per cent. to prevent climate change raising temperatures by 2°? The new Administration are likely to have a higher target than the UK, so how will that fit into the proposed UK Bill?
The previous Scottish Administration set separate targets, so it is entirely up to the new Administration, whatever their hue, to set their own target. However, a target set at a high level will not be achieved if the party in power opposes every application for a wind farm that is submitted. It is easy for the Scottish National party to demand higher targets here, but the truth is that it opposes every application for a wind farm to help promote renewable energy.
Act of Union
A number of events have taken place and are planned to mark this very significant anniversary.
I thank the Secretary of State for that reply. Does he agree that there are ongoing benefits arising from the continuation of the Union between Scotland and the UK? Is it not our duty in this House and across the country to ensure that those benefits are promoted in a very positive way?
Unusually, I find myself in complete accord with the hon. Gentleman. An interesting fact worth noting is that, as the argument has been discussed north of the border in recent months, support there for separation and for ending the Union of 300 years has fallen consistently. I take great heart from the fact that the overwhelming number of voters in Scotland rejected the parties that wanted Scotland to separate from the UK. They did so for the very basic reason that, in the 21st century, the two countries are stronger together and would be weaker apart.
Does my right hon. Friend agree that many people in Scotland, Wales, England and—probably—Northern Ireland believe that the best way to celebrate the Act of Union would be to abolish proportional representation elections?
I was anticipating the West Lothian question today, but not the West Bromwich question. I know that my hon. Friend and his trade union have long held trenchant views on the merits of first past the post. It is for each individual Member of the House to reach a judgment, in light of recent elections, as to where he or she stands in that particular debate.
I was just wondering whether the Secretary of State thinks that all these celebrations are going well and to plan. Does he agree that some of the debate we have had about the Union has been brutal at times, overwhelmingly unhelpful and totally negative? Does he accept that the Scottish people have made their choice and that it is now incumbent on him, his Department and every Member of the House to ensure that the positive choice that the people of Scotland made on Thursday is accepted and respected?
It is significant if the Scottish National party now accepts that the choice that the Scottish people made was overwhelmingly to reject separation, because there is nothing more negative in politics than seeking to blame Westminster or the English for Scotland’s challenges. In that sense, I sincerely hope that the hon. Gentleman is right in saying that we can all move on from a politics defined by difference; but that remains the policy of the Scottish National party—the ball is squarely in its court.
It is undeniable that over the past 300 years the Act of Union has had a positive effect not only on Scotland but on the rest of the UK. Does my right hon. Friend agree, therefore, that the First Minister of Scotland, whoever that may be, should be encouraged to make a speech on behalf of Scotland and not party, emphasising the benefits of the Act of Union?
At this particular moment I would be cautious of offering advice during the 28 days set following the election last Thursday to whoever turns out to be First Minister of Scotland. I simply say that I agree with my hon. Friend; the benefits of the Union are overwhelming and I have been encouraged by the fact that, as that argument has been engaged in Scotland in recent months, support has moved in favour of the Union and against separation. I believe that that remains the settled will of the Scottish people, as the late great John Smith once described it.
Two days after the 300th anniversary of the Act of Union two thirds of people in Scotland voted for pro-Union parties. Does the Secretary of State agree that although the SNP has won the right to try to form a Government, it certainly has not won the right to take Scotland down the road to separation?
Somewhat unusually again—I suppose this is a reflection of the new politics—I find myself in agreement with the Liberal Democrats, which is not something that every party in the House can claim today. Two thirds of Scottish voters have supported the Union and rejected separation, and for all the windy rhetoric of moral authority the fact remains that the Scottish National party secured less than a third of the votes in Scotland last Thursday. The only party with the moral authority to move a country towards independence would be a party that secured majority support and then majority support in a referendum, and I do not believe that the Scottish National party has the prospect of either.
Perhaps the Secretary of State will also agree with me that the vast majority of people who voted for the Scottish National party did so not in an attempt to break up the Union but as an expression of dissatisfaction with the Labour and Liberal Democrat-led Scottish Executive. Does he accept, too, that Labour’s clunking fist approach to promoting, or rather brow-beating, Scots into supporting the Union failed and will he encourage the Chancellor and others to support my right hon. Friend the Member for Witney (Mr. Cameron) in his positive promotion of the Union?
I say this with the greatest of respect: I have never regarded the views of the right hon. Member for Witney (Mr. Cameron), or indeed those of the hon. Gentleman, as my lodestar in terms either of defending the Union or winning popular votes in Scotland. If the hon. Gentleman has advice to offer parties in Scotland, perhaps he should write another memo to his colleagues in the Scottish Parliament.
International Sporting Events
I have recently secured the full support of the United Kingdom Government for Glasgow and Scotland’s bid to host the 2014 Commonwealth games. The bid will be formally submitted tomorrow. Scotland’s strategy for attracting, organising and delivering major events is the responsibility of Scottish Ministers.
I, too, support the Glasgow bid for the Commonwealth games. Looking forward another four years, the Conservatives have been urging a joint England-Scotland bid to host the World cup. There are many merits in a joint bid—the excellent stadiums and the fantastic fans in Scotland—yet the main obstacle continues to be the Chancellor of the Exchequer. I would have thought that in the current climate the Secretary of State and the Chancellor would be looking at means to strengthen the Union. The SNP is opposed to a joint bid for the World cup—
I am not aware that the Scottish Football Association is giving that matter serious consideration at present. It is principally a responsibility for the SFA and the football authorities, so although I hear what the hon. Gentleman has said, I do not want to prejudice the continuation of the four home nations competing in international competitions.
I congratulate my right hon. Friend on his efforts to bring the 2014 Commonwealth games to the city of Glasgow. Does he agree that the UEFA football cup final to be played in Glasgow this month will be an excellent showcase for the city, which should lead to many more football finals being played in that football-mad city, and that it will also be a major boost to the Commonwealth games bid that is being launched tomorrow?
I am certainly happy to identify myself with the comments made by my hon. Friend. It is right to recognise the centrality of football to the city of Glasgow. Only on Saturday, it was a great privilege for me, as Secretary of State for Scotland, to accompany His Eminence the Cardinal of Scotland and the Moderator of the General Assembly of the Church of Scotland to Ibrox to see Rangers play Celtic in what I hope was an eloquent testimony to their shared determination to challenge sectarianism, which for too long has blighted football in that great city.
In supporting Glasgow’s bid for the Commonwealth games, may I remind the Secretary of State that in the north-east of Scotland we have a crowd of very talented swimmers, including European record holders, who will hopefully participate in both the Commonwealth and the Olympic games? Will he support the bid to ensure that we have an Olympic swimming pool in the north of Scotland so that those swimmers get the training facilities on the ground that they deserve to help them win medals for both Scotland and Britain?
If the right hon. Gentleman writes to me about his specific proposal, I will certainly ensure that his points are passed on to those who would make a decision on an Olympic-size swimming pool.
At a time when the Glasgow bid for the 2014 Commonwealth games is on its way to London, will my right hon. Friend make sure, as well as supporting the bid, that the 2012 Olympic games have the knock-on effect of ensuring that facilities in Scotland are second to none and that we are given the platform that we need for 2014?
I remain convinced that there are huge opportunities for Glasgow, not simply in terms of the Commonwealth games bid, which I sincerely hope will be successful, but in its being another part of the United Kingdom to benefit from the 2012 Olympics. One of the key attributes of London’s successful bid for the Olympics was a recognition not just of the magnificent diversity within that global city, but of the fact there were real opportunities for a legacy for every part of the United Kingdom. I know that that is certainly the intention of the Olympic authorities.
Drugs Classification
My right hon. Friend the Secretary of State has no immediate plans to meet Scottish Executive Ministers to discuss the effect in Scotland of classification of drugs. That policy matter is primarily the responsibility of my right hon. Friend the Home Secretary.
I am grateful to the Minister for that reply. Is he aware that the UK now has the second highest number of drug-related deaths in Europe? The problem is particularly acute in Scotland, where the death-rate average for the past five years is 624. Given that recent evidence from Scotland shows beyond any doubt that cannabis can cause brain damage and can lead to experimentation with harder drugs, has the time not come for it to be reclassified? What is his view on that and what recommendations will he make that might help to save Scottish youngsters from misery and drug affliction?
I agree with the hon. Gentleman that drug misuse is a terrible blight that affects all too many communities, both in Scotland and elsewhere. I commend him on the work that he has done in raising the issue. He will know, however, that the Government’s position on the declassification of cannabis was informed by the independent Advisory Council on the Misuse of Drugs. The position was reaffirmed in January 2006, after further advice from the council. It recommended that cannabis should remain a class C drug, but that an information campaign was needed to highlight the mental health dangers and clarify that cannabis remains illegal. The Home Secretary has accepted that recommendation and has acted on it.
Does not the confusion surrounding the classification of cannabis highlight the fact that the Misuse of Drugs Act 1971 needs a major overhaul? In this House we revisit road traffic legislation on average every 10 years, but we have had no major drugs legislation since 1971? Will the Minister impress on the Home Secretary the fact that the time has come to look at drugs misuse as a whole?
The hon. Gentleman highlights the fact that, as I said, this matter is a policy responsibility of the Home Secretary. The hon. Gentleman is perfectly capable of making those representations strongly by himself. It is important that we clarify that cannabis still remains illegal and that in my view, the view of the Government and the view of more and more informed commentators, it is still a very dangerous substance indeed. The Government are clear that that is a message that we all have to get across.
Second Home Owners
My right hon. Friend the Secretary of State and I have regular discussions with the First Minister on a range of subjects.
Is the Minister aware that, as part of the electoral fiasco in Scotland last week, some people with second homes in Scotland who applied to register as voters were turned down? Given that all Ministers of the Crown are deemed to have their primary residence in London, will the Minister tell the House whether he, the Chancellor of the Exchequer and other Scottish Ministers were able to register and vote in Scotland? If so, why are politicians treated better than ordinary people?
The hon. Gentleman knows that decisions on whether individuals are placed on the electoral register are a matter for individual registration officers. If he has a specific example that he wishes to put forward, I will be happy to receive his representations. On his first point, he will be aware that my right hon. Friend the Secretary of State will be making a statement on the matter very soon.
I was grateful for the answer that the Minister gave to a written question that I tabled about this subject on behalf of a constituent with a second home in Scotland who was refused registration. We then discovered that Scottish MPs with second homes in London were able to vote locally. There are irregularities in the way in which registration officers apply the rules across the country, because some will grant second home owners a vote, while others will not. Given that second home owners now pay virtually full council tax, will the Minister ensure that they will have the right to vote if they want to, bearing in the mind the phrase “no taxation without representation”?
It is clear that it is perfectly possible to be on the electoral registration roll in more than one location. We must not allow anyone to run away with the idea that that is a special privilege for MPs. For example, students can be registered on the electoral roll at a hall of residence and their home address. I simply do not know why individuals were turned down, because it was not my decision to turn anyone down. Such decisions are made by individual registration officers, who have clear guidelines to which they work. If the hon. Gentleman wants to write to me about a particular issue, I will take it up on his behalf, but this is clearly a matter for individual electoral registration officers.
Digital Switchover
I last met the director of Ofcom Scotland, Vicki Nash, on 29 March and we discussed a wide range of issues.
When my hon. Friend meets Ofcom and, especially, Digital UK, will he express his concerns that some suppliers are still providing equipment that will be obsolete after switchover? Will he ensure that Digital UK does all that it can to discourage people from purchasing such equipment and that it gives good information and advice?
My hon. Friend raises an important point. I pay tribute to her work on the Culture, Media and Sport Committee, through which she has consistently raised such issues. She asks about one of the matters that I discussed with Vicki Nash a few weeks ago. It is important that people are aware not only that digital switchover is happening—it is happening sooner in the Border television region than elsewhere—but of the technical issues involved. People should not buy equipment that they do not need or something that is far more expensive than is needed, and nor should they be sold equipment that will become obsolete very quickly. We must work with manufacturers and retailers. The Department of Trade and Industry is involved in this and I continue to raise such concerns.
Following those discussions about digital switchover, does the Minister have any progress to report on the development of handsets and controls for people with visual impairments and other disabilities, given that the programme guide is extremely difficult to control? Will the Government ensure that those with disabilities will have equal access to digital television when they are forced to use the new technology?
This is an extremely serious point. Given that digital services will be enhanced and the spectrum will be greatly increased, there will be an opportunity to tailor specific services for disabled people. It is absolutely vital that the technology allows such people to access programmes that are made on their behalf. We touched on the issue regarding handsets, albeit briefly, and I shall be happy to take up the matter on the hon. Gentleman’s behalf because I entirely share his concerns.
With regard to digital switchover, will the Minister give an absolute assurance that my constituents in Lewis, Harris, Uist and Barra will be guaranteed continuity of service at all times, particularly during elections such as the one that they really enjoyed last week?
I am being encouraged to say things by my hon. Friends on the Back Benches, but I shall not put them on record. It is important to note that digital switchover means that about 98 to 100 per cent. of people will receive a new digital signal. It has never been the case that every single person would be able to receive a digital signal. I do not have the map in front of me, and I cannot tell the hon. Gentleman about every island that he mentioned. There are areas in my constituency that cannot get an analogue signal, never mind a digital signal. Everyone has been clear and consistent all the way along the line: about 98.5 per cent. of homes will be able to receive the new, improved digital services.
Communities and Local Government
The Secretary of State was asked—
Energy Efficient Homes
New standards for building regulations were introduced in April last year. They require a 40 per cent. improvement in energy efficiency, compared to 2002. However, we need to go further, and we are consulting on a timetable for significant increases in compulsory energy efficiency measures for new homes, so that all new homes can be zero carbon within 10 years.
I thank my hon. Friend for the work that she is doing to ratchet up energy efficiency standards, but may I ask her to address the second part of my question, which is about existing homes? In Birmingham, 35,000 homes in the private sector, and more than half of council homes, do not even meet the decent homes standard, which is a very low standard. What is she doing to improve the energy efficiency of existing homes, particularly those occupied by people on low incomes?
My hon. Friend makes an important point, and it is certainly true that existing homes make up the vast majority of the stock. We already support grants and assistance for people, including through the energy efficiency commitment provided by energy companies, but more work needs to be done as part of the decent homes programme, and through the introduction of energy performance certificates, which we strongly support, but which, unfortunately, Opposition Members do not.
Does the Minister agree that there is no point in having high standards for new homes if those standards are not enforced? Does she share my concern that between a third and 40 per cent. of homes built are reported to fail to meet current standards, and what steps will she take to ensure that those standards are enforced?
The issue of enforcement is important, and that is why we have introduced pressure testing as part of the new standards introduced last year. The standards that were in place before April last year were not sufficiently well enforced, and we have been working on a major training programme to increase enforcement and ensure that the current standards are properly implemented.
I am sure that my hon. Friend will agree that we can tackle the issue of energy efficiency in new homes through building regulations, but it is important that we have a policy to deal with energy efficiency in existing houses. By including energy efficiency certificates as part of home information packs, are the Government not demonstrating that those certificates are a vehicle through which we can try to raise public awareness of existing energy-efficient homes across the board? If the Government, while pretending to be green, rejected a measure as modest as making energy certificates part of home information packs, that commitment to being green and to tackling climate change would be nothing more than skin deep.
My hon. Friend makes an important point. Energy performance certificates can make a significant difference, particularly if they are linked to new programmes, such as those involving green mortgages and other kinds of grants for home owners. He will know that the measure has been strongly supported by WWF, Friends of the Earth, the Campaign to Protect Rural England and a range of environmental groups; they are strongly saying to us that it would be a travesty if energy performance certificates were to be delayed.
The Minister knows that the Conservative party—and, for that matter, the Liberal Democrats—is entirely behind energy performance certificates. It is because we take energy efficiency so seriously that we were scandalised to read on Sunday that there is not a single accredited domestic energy assessor available in the United Kingdom. Figures released by the DCLG on Friday reveal that there is not a single accredited assessor in place. A year ago, we were told that we would need 7,000 inspectors—this month, 2,000—but not a single one is in place. What a fiasco on the Minister’s watch.
I have to say that, for all the hon. Gentleman’s manufactured indignation, more than 5,500 people have entered training to be energy assessors or home inspectors, and 1,900 have passed their exams. The hon. Gentleman says that he supports energy performance certificates, so I must ask him why he has signed early-day motions 1264 and 1265, which oppose not only home information packs but energy performance certificates for rented buildings, public buildings and homes. WWF has criticised his party for doing so, and that is the group that helped his right hon. Friend the Member for Witney (Mr. Cameron) to travel to the—
Order. I call Mrs. Hodgson.
Is my hon. Friend the Minister aware of the affordable homes that are being built by Ikea in my constituency? They use sustainable materials and seek to be at least 25 per cent. more energy efficient than the norm. People do not even have to build them themselves. Should councils not follow the example set by Gateshead of backing innovative solutions that produce energy efficiency coupled with affordable housing?
My hon. Friend is absolutely right. A lot of innovative schemes have been set up across the country. I went to see one in Redditch just a few weeks ago in which people are looking at different ways of constructing homes. We have to recognise that the house-building process must change fundamentally: we must change the way in which we build, heat and power our homes if we are to meet the challenge of climate change. I agree that there is a lot more that local authorities can do to support that process.
Council Tax
As I have made clear on several occasions, the Government have no plans to revalue during the lifetime of this Parliament.
Given the Government’s decision to abandon the council tax revaluation for the foreseeable future, does the Secretary of State have anything positive at all to say to the 2 million-plus households that, according to the Joseph Rowntree Foundation, are struggling to pay council tax? Can she explain, too, why the Government are so committed to retaining the unfair and unjust council tax system, which was introduced, after all, by the Conservatives, and which we all know penalises people on fixed incomes, particularly pensioners?
I do not think that any tax is ever going to win a popularity contest, and the same is true of council tax, which is why we asked Sir Michael Lyons to look at it in what I think is a thorough and valued report. He concluded, first, that council tax is not broken and should be retained. Secondly, on local income tax, which was suggested by the hon. Gentleman’s party, he said that there are serious concerns about the fairness of the proposal. I urge the hon. Gentleman to look at what Sir Michael Lyons said. Let us work together in making sure that we have a council tax and council tax benefit system that really do mean that we have a secure and stable level of funding for the future.
The Minister has just alluded to the excellent and thorough report published by Sir Michael Lyons. Will she join me in urging all Members of Parliament to read it very thoroughly before they make pronouncements about the supposed effects of council tax revaluation in, to quote some people, “shoving up” everyone’s bills? If people understood the way in which council tax worked, perhaps they would refrain from such scaremongering, which is simply scaring enormous numbers of people for no reason.
My hon. Friend makes incredibly important points. Sir Michael Lyons himself said:
“In making the judgment about whether and when to revalue, government must weigh the risks to council tax from a turbulent or painful revaluation, against the risks of allowing the tax base to fall further into disrepair.”
Those are the sorts of considerations that any sensible Government must take into account. Michael Lyons himself said that revaluation was not an urgent priority. The key to council tax fairness and to putting that tax on a sustainable footing was, indeed, council tax benefit, which is why we need to work on his proposals to increase the level of council tax benefit, to make sure that it is both affordable and fair to people in this country.
Last week, a written answer to one of my questions confirmed that more than £4 million of taxpayers’ money is being spent on buying details of people’s homes from estate agents. On 24 April, the Secretary of State was quick to criticise the tabling of questions to elicit information of this kind. Can she reconcile that written answer with her assertion that the revaluation is not already under way?
I do not think I could have made my position any clearer to the House. We have no plans at all to revalue council tax in this Parliament. In fact, I think I am going to re-label the word scaremongering as “spelmongering”, because the hon. Lady is causing fear in houses up and down the country with ill-founded allegations about the Government’s plans. Instead of criticising this Government, she should tell us what she plans to do with council tax.
Will my right hon. Friend confirm that the Valuation Office Agency has to conduct valuations as part of the regular process and that it would be completely preposterous to abandon attempts to find new, more cost-effective ways of carrying out valuations? Will she therefore make it clear that any responsible party, including a responsible Opposition, should be welcoming these changes instead of trying to ridicule them?
As always, my right hon. Friend makes an incredibly important point. As he knows, there have been no changes in the powers of the Valuation Office Agency since 1993, when they were introduced by the Conservatives. Of course, the agency has to keep its records up to date, as any responsible Government agency should; and of course, instead of frightening pensioners, the Conservative party should be supporting these measures.
Lyons Report
The Government support the conclusion of Sir Michael Lyons’ independent inquiry that council tax is not broken and should be retained. We have already implemented many of Sir Michael’s proposals through the local government White Paper and will respond to more of his recommendations in the coming months.
Does the Secretary of State fully accept Sir Michael Lyons’ criticisms of the council tax benefit system, with £1.8 billion of benefit unclaimed in the last financial year and a fall of 10 per cent. in take-up in the past decade? If she does accept those criticisms, when and how will the necessary reforms be introduced?
I accept the hon. Gentleman’s contention that we ought to do more about increasing the level of council tax benefit take-up. One of the key conclusions of Sir Michael Lyons’ report is that the key to fairness in the council tax system is not revaluation or the introduction of further bands but ensuring that there is maximum take-up. That is why my Department is working very closely with the Department for Work and Pensions on improving the process. For example, anyone who applies for a pension credit will now have their council tax benefit details taken and processed at the same time, thus doing away with the need for a claim form. We are examining further measures and considering the scope for making council tax benefit an automatic rebate.
Notwithstanding the hyperventilating headlines in such papers as the Daily Express, the Daily Mail and The Daily Telegraph, is it not the case that by the time the first council tax bills are produced for the next Labour Government in 2011, the council tax system will be in its third decade? Is not reform of banding long overdue, particularly as regards revaluation, which can be done on a revenue-neutral basis that will minimise the numbers of winners and losers, unlike the disaster that we saw in Wales?
I appreciate my hon. Friend’s concern about how council tax is being implemented and about revaluation and rebanding. As I have made clear on several occasions, we have no intention of revaluing in this Parliament; nor do we have any intention of restructuring the banding system, which would naturally go hand in hand with revaluation, in this Parliament. However, Sir Michael Lyons says that even if we did go down that route, which we are committed not to do in this Parliament, that would not make the council tax system substantially fairer than it is at the moment. Clearly, there would be winners and losers, but the key to making the system fairer is to encourage greater take-up of council tax benefit.
Does the Secretary of State accept that all parties have something to learn from the results of the recent local elections? Will she therefore ensure that, in the reforms to the current council tax, any disincentive to maintain the weekly refuse collection is removed? Growing evidence shows that a weekly collection is not only desirable but essential for health and safety.
I appreciate the hon. Gentleman’s concern for his constituents, but it is right that local people and communities make such decisions with their local council. It is also right to increase our rates of recycling. Local councils may decide that the weekly bin collection is one aspect of their policy and may want to introduce other measures to increase the rate of recycling. That is their prerogative, but whatever is done should be done in close consultation with local communities.
If the Secretary of State has set her face so strongly against revaluation, rebanding or abolishing the tax, what exactly will she do to lift the burden from the 2 million households already mentioned? Does she accept Sir Michael’s figure of 40 per cent. in relation to existing council tax benefit lying unclaimed? He proposes an extension, but what precisely will she do? What is her time scale? Is it not time for some action, not more spin?
I think I have made myself clear. If the hon. Gentleman reads the Lyons report—I am sure he has already done so—he might reflect on some of the evidence presented in it. I have been reflecting especially on chart 7.3, which clearly shows that council tax can be made much less regressive if there is full take-up of council tax benefit. We must ensure that those who are entitled to claim council tax benefit do that. That is why our programme, working closely with the DWP, is so important to increasing the fairness of the council tax.
If the activities of the Valuation Office Agency are so benign and the likelihood of a revaluation is as remote as the Secretary of State suggested, why did the Government fight like cats in a sack to prevent those dangerous documents “Dwelling House Coding: An Illustrated Guide” and “Digital Photography User Guide” from being released into the public domain until the information was dragged out of them by use of the Freedom of Information Act 2000?
The hon. Gentleman knows that we put extensive material into the public domain about the definition of bathrooms, digital photography and every other aspect of the valuation office’s work. We have even published a document to satisfy Conservative Members’ endless curiosity. The valuation office’s powers have not been changed since the Conservative party introduced them in 1993. We have no intention of introducing revaluation in this Parliament. The hon. Gentleman and his colleagues should stop scaremongering, examine the facts and make a judgment based on them.
Will my right hon. Friend put her mind to the following question? If council tax did not exist in any part of the UK, would council tax benefit exist?
My hon. Friend makes his point in his own way. However, Sir Michael Lyons has concluded that a property tax—in other words, a council tax—should be a strong feature of the current local tax regime. Indeed, every major industrialised country has a property tax. Of course, we must not only work with the system that we have got, but try to increase levels of council tax benefit.
Does the right hon. Lady understand that any implementation of the Lyons recommendations now requires consensus across the political spectrum? Given the massive drop in the number of Liberal Democrat council seats and the total disappearance of Labour councils from many parts of the country, and given that the Government lost their mandate last Thursday and the Secretary of State lost her parliamentary seat, does she accept the new reality?
I can certainly agree with the first part of the hon. Gentleman’s set of issues—the Liberal Democrats did not fare well on Thursday. We should bear in mind, however, the fact that the right hon. Member for Witney (Mr. Cameron) said:
“I think the way to judge us”
is
“to look at Greater Manchester…Are we making progress in places like Bolton”?
Well, I regret to inform the hon. Member for Brentwood and Ongar (Mr. Pickles) that we increased our majority in Bolton, taking seats from the Conservatives.
Affordable Housing
We are supporting a 50 per cent. increase in social housing over the current three-year period, as well as supporting increased market housing and shared ownership housing. That is the best way to deliver more affordable homes for the future.
I thank my hon. Friend for her reply, but does she accept that there are many attractive neighbourhoods in England’s towns and cities, such as Fenham in Newcastle, where house prices are rising far more rapidly than the incomes of local people and where more than 300 people apply for every single council-owned family house that comes up? Does she accept that rising house prices are not a sign that market failure has been overcome, but that new ones with great unfairnesses are being created?
My hon. Friend is right to say that the increase in house prices has put pressure on first-time buyers in particular and on others who would like to be able to afford their own home but instead feel that they need to join social housing waiting lists. That is why we need to build more social housing as part of the answer. We also believe that we need more shared ownership in order to help people buy a share of their own home even if they cannot afford the whole house price. It is also why we need to build more houses in the long term. We have to recognise that we have not built enough houses to meet rising demand for more than a generation. That is why it is so important to increase the level of house building and why it is so tragic that the Conservatives are still continuing to try to block the increased homes that we need.
The Minister will be aware of the increasing concern expressed by regeneration agencies and the chief executive of the Housing Corporation at the growing practice of the purchase of property not even to let but simply to hold as an investment without its being occupied. Does she believe that that should be left to the marketplace, and what is her response to those concerns?
The right hon. Gentleman makes an important point. There is a difference between buy-to-let and buy-to-leave. There is concern if large numbers of properties are being bought and then not rented out but held empty, particularly in areas where there is high demand for housing. He will know that we have given local authorities powers and responsibilities to do more to deal with empty homes that are left vacant for a long time. We think that authorities should use those powers.
It is interesting to read in today’s paper that the Prime Minister-in-waiting intends to build more houses both to let and to buy. Before I throw my hat in the air on behalf of the defend council housing campaign, may I ask the Minister whether she is aware that merely putting money into the private sector increases prices, and that what is needed is more land put on the market and to stop builders hogging land that could otherwise be used for building? Also, does she yet understand that building more council houses where they are required will assist in the process of ensuring that people have somewhere to live where they can afford either to pay the rent or buy? Will she stop the flim-flam that is going on in housing and recognise that the market without subsidy is—
I certainly agree with my hon. Friend that more land should be available for housing. We have said that we believe—
Order. Perhaps I can suggest to the Minister that if she faces the Chair, everyone will hear what she is saying.
I want to make it clear so that you can hear me, Mr. Speaker, that we believe more land should be available for housing, which means making sure that the priority is brownfield land. It also means ensuring that more social housing is built and that there is more shared ownership. We have taken steps to make it easier for councils to be able to build homes and for housing associations to increase the level of homes that they build. It requires increased housing across the board. The South East England regional assembly, led by the Conservatives, however, is still arguing for cuts in the level of house building. That is not in the interest of first-time buyers or those in need of social housing.
The Minister will of course be aware that in September 2004 the Government announced the commissioning of a number of low-cost houses in my constituency through the design for manufacture scheme. Some two and a half years on, we are still waiting for a brick to be laid. Will she confirm that these houses will be built and that they will still cost £60,000, which was the price announced to my constituents by the Deputy Prime Minister just before the last general election?
The hon. Lady will know that a series of different sites were put forward as part of the design for manufacture programme, and they are progressing at different speeds. Investment is taking place and new homes are being built. We think it is right that those homes should be offered at a range of prices, including some that are close to £60,000, some that may be at a lower price, some that may be social housing and some that may be at a higher price. It is important that the new developments should have mixed communities, and I am sorry if the hon. Lady’s party opposes that principle.
Does my hon. Friend recognise that many Labour Members are worried that with creeping increases in interest and mortgage rates and astonishing house prices—even in the northern counties, in places such as Bolton—if, despite her assurances, there is a downturn in the economy, there will not be enough affordable houses to catch those people who will be forced out of owner-occupation?
My hon. Friend will know that the Bank of England takes the issue of stability extremely seriously, and it is important that it should do so. We are also clear that we need more investment in affordable housing, and that is why we have said that that is a priority for the spending review, and why we are supporting increased investment in affordable housing at the moment.
Pathfinder Scheme
Although the costs of demolition in pathfinder areas vary, depending on the type and location of the property, the general trend is upwards. That is principally because, as in the rest of the country, house prices have risen significantly over the past few years in all the housing market renewal pathfinder areas.
I thank the Minister for her answer, but will she acknowledge that, as costs are increasing, and are likely to increase further, owing to the speculative purchasing of property, ambitions are being scaled down and that lateral thinking is urgently needed?
I think that all the thoughts on this issue have involved lateral thinking. It is worth reminding the House of the benefits that £1.2 billion of investment has brought to these areas. Nine thousand houses have been developed, and 35,000 properties have been refurbished and refitted to create new homes. Obviously we have seen an increase in house prices, but that will happen when areas are renewed and become places where people want to live. That means that our investment can go towards renewing and repairing more homes, and towards providing more homes in areas where people want to live.
It is not the demolitions that are the problem in the Meden valley; it is whether the builders can actually get on and build the new homes. Will the Minister pull together those running the pathfinder schemes to give a kick to the builders, who now have plenty of demolition land available for new house building? If she does, I can assure her that she will have the support of the five Labour Warsop councillors, including Councillor Peter Crawford—a Labour gain last Thursday.
I am pleased to say that that was not the only Labour gain on Thursday; there was one in my constituency as well. I take on board my hon. Friend’s comments. Clearly, we want to see more homes being built and refurbished, and I will take away the comments that he has made. We are making significant progress, but if there is more that we can do to advance the scheme further, we should obviously look into that.
Is the Minister aware that, when the last Conservative Government successfully regenerated the Hulme estate in Manchester, they found that, in order to create a sustainable community, it was essential for at least 30 per cent. of the original residents to return to the estate from where they came? What work is the Minister doing in that respect?
In all those areas, we cannot dictate to people where they should live. We have to create areas that people want to live in, and that means addressing not only issues involving housing but those relating to schools, infrastructure and crime. It is worth noting that there has been a dramatic reduction in crime in many of those areas, which encourages people either to stay or to move back in. The important thing is that there should be a stable and sustainable community, and our objectives are not just about housing but about the community as a whole.
Consultation (Northumberland)
We are consulting widely across the private, public and voluntary and community sectors. My Department’s website lists the key consultees, and explains that anyone may request an e-mail list of particular local bodies that we are consulting in each region. I have arranged for the north-east list to be sent to the right hon. Gentleman.
Why does the Government’s list of key stakeholders consist entirely of national and regional bodies that might have an interest in having fewer local authorities with which to deal? Is it because the Minister accepts that the people of Northumberland, in a referendum undertaken by this Government, have already voted for two districts rather than one?
The right hon. Gentleman knows that it would be unwise of me to comment on the proposals for his area, but let me take the opportunity to dispel the idea that we are interested only in regional and national bodies. This is a devolutionary measure, and it is up to councils also to consult local people and organisations—which I know they are doing in the right hon. Gentleman’s area.