1. What recent discussions he has had with the Deputy Prime Minister on the lobbying White Paper. (118531)

The Deputy Prime Minister has recused himself from any involvement with the question of lobbying due to a possible conflict of interest with his wife’s activities, and therefore I have not had any discussions with him whatsoever about this subject.

Will the Minister explain why the Government have failed to bring forward any proposals for a statutory register of lobbyists? It seems that the public want one, the lobbying industry wants one and the Government promised one.

Yes, I will explain why we are where we are. The hon. Lady would, I am sure, share my view that it is important when issuing a consultation to pay some attention to the responses received. When we issued the consultation with a set of proposals for a statutory register, an enormous number of responses were received. We are going through them, considering them extremely carefully. The Select Committee on Public Administration also reported on the matter—it was a weighty and serious report—and had a great number of things to say. We are also considering those, and when we have finished that consideration, we will come forward with new proposals.

Does my right hon. Friend agree that there is a real risk in that although a request for a register of paid lobbyists is perfectly reasonable, we must not throw the baby out with the bathwater when all sorts of charities, voluntary organisations, trade unions and others who “lobby” perfectly legitimately are not paid lobbyists and should not be included?

My hon. Friend makes an important observation. One issue that came up in the course of the consultation, which many consultees and indeed the Select Committee commented on, is the question of scope. The Government’s initial proposals did not include any reference to lobbyists that were “in house”—the ones to which my hon. Friend refers—whether they be charities, businesses, social enterprises or whatever. Some respondents suggested that the scope should be wider. This is clearly something that needs to be considered, and my hon. Friend’s point is well taken.

Yesterday’s reshuffle saw the entry into the Cabinet of every single Tory MP who had sat on the advisory board of the disgraced Atlantic Bridge lobbying organisation. Examples like this leave the Government open to the accusation that they are dragging their feet on regulating the industry because of inappropriately close relationships with lobbyists. This is damaging to the House and to democracy itself. Following the departure from his Department of the Minister responsible for regulating lobbying, will the Minister immediately bring forward legislation to regulate this matter once and for all?

I certainly do not want to get into any partisan repartee across the Dispatch Box on a matter that ought to command considerable cross-party agreement and support. I am grateful to the hon. Gentleman for the remarks he has made on the record in the past about supporting the principle of regulating lobbying. I should, however, point out that his party was in government for a very long period during the whole of which issues were raised about this subject and at no time did that Government issue a paper or consult on it, or move towards serious regulation of it. If he feels that this should have been done immediately, the question arises of why it was not done from 1997 onwards. To help him, the answer is, of course, that it is an extremely complicated and difficult subject, which is why the Select Committee and respondents to the consultation had many things to say. I hope that the hon. Gentleman will, on mature reflection, agree that we should consider this in an unpartisan spirit and try to get it right.

2. How much money was saved as a result of his Department’s cross-Whitehall spending controls in 2012. (118532)

To deal with the enormous budget deficit that the coalition Government inherited from the Labour party opposite, in the days after the general election in May 2010 we introduced tough new spending controls. In the year to March 2012, those controls helped to save the taxpayer no less than £5.5 billion, on top of the £3.75 billion that we saved the year before.

I congratulate my right hon. Friend on those figures and ask him whether he agrees that this shows just how wasteful spending was under the previous Government.

I am afraid that that is the case. It was open to the Leader of the Opposition, when he sat in my position in the Cabinet Office, to introduce the same kind of controls, but it is very unglamorous hard work; one needs to get into the detail. It is a pity that he did not do it; if he had done, we would not be in quite the fiscal mess that the coalition Government inherited two years ago.

The Minister has previously made great play of the contracts finder website as an indication of cross-Whitehall spending. Before the summer recess, I tabled a series of questions to all Government Departments about the level of spending on contracts with Atos and Atos Healthcare. It turns out that despite the claim that all the information is on the website, a significant number of contracts with Atos across Whitehall are not on it. Will the Minister review the website to ensure that it is absolutely accurate?

I must start by saying that we inherited a complete lack of transparency about Government contracts. It was impossible for potential suppliers to the Government to find out what contracts were available. We are gradually reaching a stage at which more and more contracts will be made available transparently, but provisions relating to confidentiality are built into many of the contracts with suppliers that we inherited. We will seek to avoid that in future, but I think the hon. Gentleman will find that many of the Atos contracts stem from the time when his own party was in government.

14. I welcome the savings that my right hon. Friend has already found, but what more can he do to reduce the burden of excess in Whitehall which has existed over the last few years and which was fostered by the Labour party? (118545)

The longer we stick at this task, the more possibilities of saving yet more money we will find. It is important to protect spending on the front-line services on which the public depend, and we will continue to do that. I am delighted to welcome my hon. Friend the Member for Norwich North (Miss Smith) to her post: she will give huge support to me in my role of seeking out wasteful spending and driving efficiency through central Government.

3. What his policy is on the provision of trade union facility time across the civil service. (118533)

Unions can play a positive role in the modern workplace. [Interruption.] On the subject of paying, it is nice to know who is paying that lot on the Labour Benches.

However, the Government believe that taxpayer-funded facility time arrangements in the civil service should reflect good practice across the private and public sectors. That is why I launched a consultation to review facility time, and will ensure that future arrangements are subject to rigorous controls and monitoring.

Can my right hon. Friend tell me what arrangements for the monitoring of union facilities and activities were in place when he entered Government in 2010, and how much they were costing?

The arrangements for the monitoring of facility time were very mixed indeed, and in most cases almost non-existent. It has taken a long time—many months—to tease out of Whitehall the data on how much is being spent and how much facility time there is. We estimate that the cost to the taxpayer of facility time for trade unions in the civil service alone is between £33 million and £36 million a year. That is too much, which is why we are consulting on how it can be significantly reduced and controlled.

When measuring the costs, the Minister should take account of not just the cost of the time to the taxpayer, but the benefit of the work done by trade unions throughout the civil service. How will he estimate the cost of what he is doing in terms of benefit?

I am confident that our consultation will tease out the benefits. I absolutely accept that the trade union duty to support union members in employment disputes can have a benefit, and for that reason we are not suggesting that all facility time should be removed; indeed, it would not be lawful for us to do so. However, the amount is excessive. It has been allowed to creep up over time, and it now needs to be reduced and controlled for the future.

4. What recent progress his Department has made on its programme to abolish and reform non-departmental public bodies. (118534)

7. How many non-departmental public bodies his Department has abolished to date. (118537)

This Government have undertaken the biggest programme of quango reforms in a generation to increase accountability, cut duplication and reduce costs. We have already reduced the number of public bodies by about 200, and by 2015 the overall number will be down by a third.

I welcome my hon. Friend to her new position and wish her well. What help and support have the Opposition given on the quango reform programme?

That is a very appropriate question, because Government spending on quangos doubled under Labour, and by 2015 this Government will save the taxpayer a total of more than £2.6 billion, which is more than £150 per working household. It tells us all we need to know about Labour that it voted against those measures.

Does my hon. Friend agree that the growth of the quango state under the last Government significantly reduced accountability to the taxpayer, and that many of these organisations had overpaid chief executives and overly smart offices, greatly increasing the cost to the public purse?

I agree. The range of responsibilities handed to those bodies and the amount of taxpayers’ money they received was at an all-time high under the previous Government, and they were clearly irresponsible for doing that. This Government are restoring accountability for public services.

11. On this Government’s quest to have a bonfire of the quangos, will the Minister confirm that the Health and Social Care Act 2012 will create more quangos than the Public Bodies Act 2011 abolished? (118542)

The Department of Health is reducing the number of quangos, not increasing them.

On behalf of my party, may I congratulate the hon. Lady on being appointed to her new position?

Every Government and every Parliament have promised to do what her Government have promised to do on non-departmental public bodies. Will she abide by the judgment of the people in two years’ time, close to the end of this Parliament, in respect of how many of these NDPBs have fallen by the wayside?

The hon. Gentleman raises a vital point. More than half the quangos in government will be reformed. There will be no return to the old ways of working. He is right, too, that we need to be accountable in this process, which is why we are instituting triennial reviews and other measures in order to ensure we keep on this path.

5. What recent assessment he has made of the second round of National Citizen Service pilots. (118535)

In its first year, the National Citizen Service achieved customer satisfaction ratings of 95% and a benefit-to-cost ratio of 2:1, with approximately three times more young people going through the programme this year. We expect to build on that, and we will be publishing an independent evaluation next year.

I thank the Minister for that answer. Last week I took part in a “Dragon’s Den”-type session for young people to pitch social action projects, which was organised by the Challenge Network and took place at the ACE centre in Nelson in my constituency. Does my hon. Friend share my admiration for organisations such as the Challenge Network, who get young people involved in projects that can make a real difference in their communities?

Yes, I do. I congratulate the Challenge Network and others who are helping to deliver what is an outstanding programme. I continue to be amazed that so much can be done in just three weeks in building young people’s confidence and skills, and in giving them a chance to make a positive difference in their communities.

Does the Minister share my concern at the report by the Education Committee which found that, based on the cost per head of the 2011 pilot, it will cost a total of £355 million each year to provide a universal offer for the NCS, and that, even allowing for economies of scale, that cost may well outstrip the entire annual spending by local authorities on youth services, which totalled £350 million in 2009-10?

I simply encourage the hon. Lady to visit an NCS project. I think she will see that the projects are outstandingly popular with the young people who are taking part, and that although people in the youth sector are understandably frustrated at cuts elsewhere, they are beginning to recognise that the NCS is an enormously positive asset in terms of developing the young people of this country.

6. What estimate he has made of the total reduction in funding to the voluntary sector in 2011-12. (118536)

9. What estimate he has made of the total reduction in funding to the voluntary sector in 2011-12. (118540)

Data from the Charity Commission suggest that the gross income of registered charities grew in 2011, but we all know that the sector is going through a very difficult period. We are putting in place plans to help it through this very difficult transition period, and to open up new funding opportunities over the medium term.

In the north-east, funding reductions are forcing 48% of voluntary sector organisations to close services and 28% to reduce the number of beneficiaries they support. What impact does the Minister think such losses will have on the Government’s plans to increase the role of the voluntary sector in delivering public services?

I share the hon. Lady’s concern and that is why we have pressed the point, from the Prime Minister down, to local authorities that they should try to avoid making disproportionate cuts to the voluntary sector and why we have put in place funds to help manage the transition. I have to say to her that for the Labour party to keep talking about cuts to the voluntary sector without recognising why those cuts were necessary in the first place, and without recognising that Labour councils are doing some of the heaviest cutting while saying absolutely nothing about the future of the sector, is fooling no one and disappointing many.

In County Durham, the local authority has had to reduce its grass-cutting service because of the reductions in its grant, so I rang the local Community Service Volunteers, thinking that that might be something it could take on. It said that it could not, because it did not know whether it will have core funding after the new year. Does the Minister not understand that far from creating a big society, he is destroying the society we have?

We are investing in the infrastructure that supports the voluntary sector, with some £30 million already invested through the transforming local infrastructure fund. Yet again, I draw the hon. Lady’s attention to the fact that that cut to that grant has not come from the centre but from the local authority, which is accountable for that decision.

Will the Minister join me in thanking the 70,000 volunteers who took part in the London Olympics? What steps will be taken to ensure that we build on that volunteering legacy?

Anyone lucky enough to have gone to the Olympic games or the Paralympics will know just what an important role the volunteers played in making them an enormous success. My hon. Friend is right that we clearly have a big opportunity to build on that, which is why we have committed another £40 million for the social action fund to back exciting new campaigns to inspire volunteers, such as “Join In”, which inspired a quarter of a million people to get involved with their local sports clubs in August.

I congratulate my hon. Friend on bringing forward new proposals to support the voluntary sector, but will he join me in condemning Labour-run councils that are cutting the voluntary sector, decimating services and then blaming the Government?

My hon. Friend and neighbour from Harrow makes a good point. Locally, we have the contrast between Conservative-run Hillingdon council, which is increasing its investment in the front-line voluntary sector, and Labour-controlled Harrow next door, where that investment is being reduced.

Ministers’ huge cuts in funding for charities mean that volunteer centres across England are losing, on average, 25% of their income, according to Volunteering England. With so many Olympic and Paralympic volunteers wanting to continue to volunteer after the games are finished, why are Ministers so determined to make it so hard for them to do so?

We are not. The hon. Gentleman has never let facts get in the way of shameless opposition and he has not disappointed today. We are investing in the infrastructure to support and inspire volunteers, with £30 million for the transforming local infrastructure fund. We are doing our bit from the centre, but the point I would make to local authorities across the country is that they should recognise the value of the volunteers in their community and not cut the investment in the local infrastructure that supports them.

8. What plans he has for the (a) ministerial and (b) civil service code of conduct. (118538)

The ministerial code and civil service code set out the standards of conduct expected of Ministers and civil servants. They are published for the House and were last published in May 2010.

I am grateful to the Minister for that response, but does he concede that a review of both codes is necessary to ensure that Ministers cannot hide behind civil servants when failures occur and, most importantly, that senior civil servants do not avoid scrutiny by using political independence as a camouflage for frustrating Government policy?

The hon. Gentleman asks an important question. Clause 1 of the ministerial code makes it abundantly clear that no Minister can hide behind anything as

“Ministers have a duty to Parliament to account, and to be held to account, for the policies, decisions and actions of their departments and agencies”.

My right hon. Friend the Minister for the Cabinet Office and Paymaster General has recently issued the first steps in the civil service reform programme, which seek to enlarge the area of accountability for senior civil servants to include direct accountability both for the quality of their policy advice and for its implementation.

Does the Minister agree that it is for the Prime Minister to decide whether to initiate an investigation of an alleged breach of the ministerial code and that it is for Parliament to hold him to account?

Yes, I entirely agree with my hon. Friend. Indeed, that system has served us well and is, I believe, accepted by the independent adviser on ministers interests.

T1. If he will make a statement on his departmental responsibilities. (118546)

My responsibilities as Minister for the Cabinet Office are for the public sector efficiency and reform group, civil service issues, industrial relations strategy in the public sector, Government transparency, civil contingencies, cyber-security and civil society. [Interruption.]

Order. There is far too much noise in the Chamber, which is very discourteous to the Minister and to the Member. I want to hear Jenny Chapman.

In Darlington, post offices are seen as vital community hubs. Will the Minister update the House on his discussions with the Department for Business, Innovation and Skills on how better to exploit the community value they offer?

I have had a number of discussions about that with the BIS Minister who has responsibility for post offices, and we are doing what we can to encourage the post office network to be, as much as it can, a front office for a number of Government services. We think that is a valuable function.

T4. The Minister will be aware that Unison has instructed its members to secure as much paid or facility time as possible for union activity, including campaigning. Will he confirm that not a penny of taxpayers’ money will go to subsidise such trade union activity? (118549)

There is a distinction between trade union duties, which are to do with genuine representation of employee rights, and trade union activities, which are not. There is no legal obligation to provide paid time off for trade union activities, which is why we are consulting on the reduction or elimination of that.

Further to the answer given to my hon. Friend the Member for Darlington (Jenny Chapman), in recent weeks the Minister will have received a number of letters regarding the future of the post office network and the importance of Government services and their expansion. Will he endorse the campaign by the National Federation of SubPostmasters and, as the campaign slogan says, help make it happen?

I have had discussions with the federation of postmasters and we are very alert indeed to the desirability of more business being available, but the federation understands that there is a need for Post Office Ltd to improve its activities and productivity. I know that that is under way.

T5. Over the summer, I had the pleasure of hosting a visit by a group of young people as part of the National Citizen Service, organised by the Challenge Network in the black country, which was a fantastic success. Will the Minister outline his plans for the further roll-out of the NCS next year? (118550)

We are ambitious to expand the NCS because it is such an outstandingly positive opportunity for young people. The aim is to make it available to 90,000 teenagers in 2014.

T2. Reshuffles are always a busy time. Does the Cabinet Office have any specific plans to ensure that Cabinet Office staff do not have communication difficulties with the overwhelmingly male, rich and white Cabinet who have just been appointed? (118547)

Cabinet Office staff have no difficulties of any kind whatever.

T6. Last week, I was privileged to see the hard work of the NCS volunteers at the New Scene centre in Chester. However, a number of the young people were from over the border in Wales. While they were delighted to be able to do their NCS activities in England, they were disappointed that they were not able to do them in their own communities. Will the Minister join me in calling for the Welsh Assembly Government to introduce a national citizen service in Wales next year? (118551)

I thank my hon. Friend for getting so actively engaged with the NCS this summer. I am delighted that Northern Ireland teenagers will be involved in the pilots this autumn, and we have extended the offer to the Welsh Assembly. I hope he can help us to get a positive response to that.

T3. Earlier this year, Ministers announced the closure of the Driver and Vehicle Licensing Agency office in my constituency, which was widely used by small local motor traders to get their vehicle licences. Will the Minister confirm that he is having discussions, and urging colleagues in BIS to have discussions, with the motor trade about whether the Post Office might pick up that slack? (118548)

The public can already carry out a number of functions and transactions relating to the DVLA through the post office network, and the DVLA has one of the best online applications for renewing car tax, but we are looking, with my right hon. Friend the Secretary of State for Transport, at how it can be further modernised to improve service and save more money.

T8. In July 2011 the Department for Work and Pensions introduced a new standard contract that encouraged its suppliers to hire 5% of their work force as apprentices. A year later, more than 2,000 apprenticeships have been created, at no extra cost to the Government. Is the Minister aware that rolling that out across Whitehall will create thousands of new apprenticeships? (118553)

My hon. Friend makes a good and valid point. This Government have a proud record on creating apprenticeships. Our position is not to put a blanket condition on Departments, but to encourage them to take an innovative approach, such as the one he mentions in the Department for Work and Pensions.

Q1. If he will list his official engagements for Wednesday 5 September. (118556)

I am sure that the whole House will wish to join me in paying tribute to the servicemen who have fallen since the House last met: Lieutenant Andrew Chesterman of 3rd Battalion the Rifles, Lance Corporal Matthew Smith of 26 Engineer Regiment and Guardsman Jamie Shadrake of 1st Battalion the Grenadier Guards. We send our deepest condolences to their colleagues, friends and loved ones. Their courageous and selfless service to our country will never be forgotten.

Before listing my engagements, I would like to say on behalf of the Government, and I hope the whole House, a word about the huge success this summer of the Olympic and Paralympic games. I want to send all our congratulations on the superb performance of Britain’s athletes and Paralympians. I want to say a huge thank you to the volunteers who put such a smiling face on the games and a large well done to all the organisers. I think that they made the entire country proud and, as they promised, they have indeed inspired a generation.

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.

Is the Prime Minister aware that his Cabinet reshuffle of his B team has not raised a ripple with the general public? On the other hand, those loud boos that greeted the Chancellor of the Exchequer will haunt the posh boys for ever. Why does The Prime Minister not be a man, do the decent thing and call a general election?

It is very good to see the hon. Gentleman back in such good form. I am sorry that when I was forming my Government of all the talents I could not find him on my speed dial, but I have done something that new Labour never managed: I have taken a miner and put him in the Cabinet, and he is running the railways. I thought the hon. Gentleman would appreciate that. [Interruption.]

Order. The House must calm down.

Mr Speaker, you will be aware that the Deputy Prime Minister and the Liberal Democrats reneged on a promise to deliver boundary changes in exchange for a referendum on the alternative vote. If the Deputy Prime Minister goes to the Prime Minister and says that he will deliver boundary changes in exchange for state funding of political parties, what will the Prime Minister’s answer be?

I am not in favour of extending state funding. I think that it is very important that all political parties work hard to attract members and donations. Frankly, when we get those donations we pay credit to people for funding political parties, which is in the public interest.

Let me join the Prime Minister in paying tribute to Lieutenant Andrew Chesterman of 3rd Battalion the Rifles, Lance Corporal Matthew Smith of 26 Engineer Regiment and Guardsman Jamie Shadrake of 1st Battalion the Grenadier Guards. They all died serving our country. Their sacrifice will never be forgotten, and our thoughts are with their families and friends.

I also want to join the Prime Minister in paying tribute to everyone involved in the Olympic and Paralympic games—our athletes, our fantastic volunteers and indeed the whole country, which united in support of team GB. It showed our country at its best, it brought Britain together and we should all be proud of the achievement.

After two and a half years in government, the Prime Minister returned from his summer break and told the nation that he now realised it was time to “cut through the dither”. Who did he have in mind?

The right hon. Gentleman has had all summer to think of a question. Is that really the best he can do?

Let me explain to the right hon. Gentleman what this reshuffle is all about. It is not that there are two economic Departments in our country, the Treasury and Business; I want every single Department to be about the economy. I want the Transport Department building roads; I want the Communities Department building houses; I want the Culture Department rolling out broadband; and I want the Agriculture Department backing British food. This is a Government who mean business, and we have got the team to deliver it.

The Prime Minister mentions the reshuffle; it is good, of course, to see the Chancellor still in his place. I have to say to the Prime Minister that he has come up with an ingenious solution to the problem of his part-time Chancellor: he has appointed another one—the former Justice Secretary, the right hon. and learned Member for Rushcliffe (Mr Clarke). It is a job share; we will see how they get on.

I do not know whether the Prime Minister remembers, but a year ago he published his national infrastructure plan alongside the autumn statement. He said at the time of that plan that it was an

“all-out mission to unblock the system”.

Can he tell us, one year on, how many of the roadbuilding projects announced in that plan have actually started?

First, I am glad that the right hon. Gentleman mentioned the issue of Chancellors, because I have got my first choice as Chancellor, while he has got his third choice as shadow Chancellor. Apparently, he still has to bring in the coffee every morning—that is how assertive and butch the Leader of the Opposition really is.

The right hon. Gentleman asks about infrastructure. If we look at what is planned by this Government, we see that between 2010 and 2015 we will be investing £250 billion in infrastructure. That compares with just £113 billion between 2005 and 2010. That shows that he has absolutely not got a clue.

The difference between the shadow Chancellor and the Chancellor is that the shadow Chancellor was right about the economy and the Chancellor was wrong. I have to say that the Paralympic crowd spoke for Britain.

However, it is another Prime Minister’s questions, we are back and, characteristically, the Prime Minister does not answer my question. The answer is that none of the roadbuilding programmes announced in his grand infrastructure plan has started.

Let us look at another grand claim the Prime Minister made. In March, he published his housing strategy. He said:

“our housing strategy is beginning to get Britain building again.”

Before he starts talking up his next announcement about housing, let us look at the effect of the last one. Can he tell us how many houses have started to be built since his announcement?

Housing starts are up 30% since 2009, which was the lowest rate of house building since the 1920s. That is what the right hon. Gentleman’s Government left. He praised his shadow Chancellor to the gunnels, but let us remember that it was the shadow Chancellor who landed us in this mess. Who was the City Minister when the City went bust? The shadow Chancellor. Who was the man who gave us the biggest budget deficit in the developed world? The shadow Chancellor. That is what that team has delivered and that is why the British people will never trust them again.

I think that sometimes the right hon. Gentleman forgets that he has been Prime Minister for two and a half years. He has got to defend his record, and he cannot defend his record. Again, he did not answer my question. I asked him about what had happened to housing starts since he made his announcement. The reality is that housing starts have fallen since then. They are 24% lower than they were a year ago and lower than they were at the time of the last Labour Government. Another grand claim has not materialised.

Now, let us talk about planning. In March, after 18 months of consultation, the Prime Minister hailed his flagship planning policy and said that it was the biggest revolution in 60 years. But on Sunday he said that he was “frustrated” by the system and the

“hoops we have to jump through”

and that he wanted to change it again. How is he so incompetent that he brings in a flagship planning Bill, calls it a revolution, and then six months later says that it is not fit for purpose?

The national planning statement that we inherited from Labour was over 1,000 pages; it is now down to just 52 pages. We have radically simplified the planning system—something that the right hon. Gentleman should be praising rather than attacking. He might want to notice that today the World Economic Forum has come out and said that for the first time in a decade, instead of Britain going down the world competitiveness ratings, we are back in the top 10 and rising. Let me read what it said:

“The United Kingdom…continues to make up lost ground in the rankings this year”—

lost ground that happened under the last Labour Government. There is a reason for that—it is because this Government are cutting regulation, cutting corporate tax, taking people out of tax, getting our businesses moving right across our country, investing in the regional growth fund, and delivering more apprenticeships than any previous Government. That is what we are delivering; what has he done over the summer? Where are the policies on welfare? Nothing. Where are the policies on education? Nothing. Where is the great plan for our economy? His only answer to a debt crisis is to spend more, borrow more, and put up the debt.

Back to the bunker after that one, I am afraid. I think the crimson tide is back as well.

Over the past two and a half years we have seen announcements on infrastructure—failed; announcements on housing—failed; announcements on planning—failed. What is the reason for this economic failure? The reason is that the Prime Minister’s fundamental economic approach is wrong. After the summer we now know that in his whole two and a half years as Prime Minister the British economy has not grown at all. So why does he not admit it? The real problem is this: plan A has spectacularly failed.

Let me tell the right hon. Gentleman what is actually happening in our economy, which is that we are seeing the private sector growing and expanding. There are 900,000 more people employed in the private sector than there were two years ago. We are now a net exporter of cars and motor vehicles for the first time since the 1970s. We are seeing the fastest rate of business creation that we have seen for decades. That is what is happening. Our economy is rebalancing. There is growth in the private sector. Our exports to China are up 72%, to India up 94%, and to Russia up over 100%. That is what is happening. It is a hard road, it is a difficult road, but we will stick to that road because we will deliver for the British economy.

We are in the longest double-dip recession since the second world war. How out of touch does this Prime Minister sound? [Interruption.] I have to say to the Tory Members of Parliament that they can go to their constituents and start trying to blame everyone else, but they have been in government for two and a half years. It has happened on their watch.

We saw a reshuffle yesterday. The Prime Minister brought back the right hon. Member for Yeovil (Mr Laws), who had been sacked; he promoted the Culture Secretary, who should have been sacked; and he left in place the part-time Chancellor, who the whole country knows should be sacked. It is the same old faces and the same old policies—a no-change reshuffle. If the Prime Minister really wants to cut through the dither, there is no place like home.

The big difference in British politics is that I do not want to move my Chancellor; the right hon. Gentleman cannot move his shadow Chancellor. The fact is that in spite of all the economic difficulty this is a strong and united Government, and in spite of all the opportunity this is a weak and divided Opposition. [Interruption.]

Order.

More!

There is going to be more, and it is going to be from a knight—Sir Malcolm Bruce.

Thank you, Mr Speaker. I wonder whether the Prime Minister has seen today that PricewaterhouseCoopers has produced a report saying that Aberdeen needs to recruit 120,000 skilled people in the next 10 years if we are to deliver our capacity in the global energy economy. Will the Government take steps to ensure that an energy academy and the necessary support infrastructure for training are put in place so that we can deliver growth for the United Kingdom?

My hon. Friend raises a very important point, which is that the growth of the economy around Aberdeen, obviously linked to North sea oil, has been extremely successful. I want to see that continue to expand and I will listen very carefully to what he says and look at what the British Government can do to help provide that extra capacity, which I have seen for myself.

Q2. Will the Prime Minister confirm that we learned over the summer that the UK borrowed £9.3 billion more in the first four months of this year than it did in the corresponding period last year? (118557)

We have cut the budget deficit by a quarter in two years but, obviously, it is immensely challenging to get the deficit down. I note that Labour’s answer to getting the deficit down is to borrow more—to borrow an extra £200 billion. The one way you cannot get borrowing down is to put borrowing up.

Q3. My constituents were delighted when BMW announced the investment of £250 million to increase Mini production and called its Oxford plant the heart and home of this great British success story. Does the Prime Minister agree that this kind of inward investment is vital to kick-start the economy and that we must do more to prioritise policies to make the UK more attractive to investors? (118558)

My hon. Friend and I have neighbouring constituencies and many constituents who work at BMW at the old Cowley works. It is very good news that BMW is investing another £250 million in that plant on top of the £500 million announced last year. That is safeguarding over 5,000 jobs in the Oxford, Swindon and Hams Hall plants. It is part of a huge recovery story for the British motor manufacturing industry. We are now net exporters. That has not happened since the 1970s and it is a huge credit to Jaguar Land Rover, Nissan, Toyota, BMW—to all those companies that are investing in and choosing Britain. They are not choosing Britain because of the weather; they are choosing Britain because we have cut corporation tax, because we are investing in apprenticeships, because we are investing in the infrastructure that they need, and because they know that this is a country open to business.

Poor Wirral families face the indignity of food banks, and Save the Children is launching its first ever public campaign for British children. What is the Prime Minister doing to help?

What we are doing is making sure that we target help on the poorest families in our country, which is what we have done through the tax credit system. At the same time, we should praise all the voluntary and big society efforts to help the poorest families in our country.

Q4. Will my right hon. Friend join me in paying tribute to the 23 million people in our country who work with such commitment in the private sector—the sector that generates the wealth that this country so desperately needs? Will he also welcome, as I do, the fact that under this Government we now have more people employed in the private sector than at any time in our history? (118559)

The point my hon. Friend makes is very important. If you look at the figures and include all of the financial sector, you will see that there are more people employed in the private sector today in Britain than at any time in our history. [Interruption.] Oh, the shadow Chancellor says that that is because we are in recession. It is because companies are choosing to employ people and the private sector is getting larger, which is good news. Employment is up 201,000 this quarter; unemployment is down 46,000 this quarter; the claimant count has fallen; the rate of unemployment is down; youth unemployment is down—I would have thought that the whole House would welcome those figures.

Q5. Last Sunday the Prime Minister told us that there should be no more excuses for failure. Given that his policies have produced the longest double-dip recession since the war, with output down, borrowing up and a collapse in consumer confidence, is his failure to apologise because he does not take his own advice, or because he considers that a record of astounding success? (118560)

This comes from an hon. Lady who served in a Government who, after 13 years, delivered us the longest and deepest recession since the war and who gave us the biggest budget deficit of virtually any country in the developed world. Of course, it takes time to get yourself out of a hole as deep as the one that was dug by the shadow Chancellor and the leader of the Opposition.

Q6. Over the summer, Jaguar Land Rover announced the creation of 1,100 additional jobs at its Castle Bromwich plant. That is in addition to the 750 jobs that it is creating in my constituency of South Staffordshire. Does my right hon. Friend agree that there is a stark contrast between the rhetoric of the last Labour Government about reviving the automotive industry, and the actions and delivery of this Government? (118561)

My hon. Friend is absolutely right. In the past two years, Jaguar Land Rover has hired an extra 8,000 new workers. That is a massive success story for the west midlands and for a great British brand. It is also, let us say so, a big success story of massive inward investment from the Indian parent company. We should praise all those things and recognise that we have to do even more to make Britain a really business-friendly country, with low rates of regulation, low rates of tax and lots of support for apprenticeships and infrastructure. That is what we are delivering, and we will continue to do so.

Q7. Hundreds of young people from outside Europe chose London Metropolitan university, confident in British higher education. The Prime Minister needs to tackle visa fraud, but will he lift the threat to deport students who have paid their fees and complied fully with all the rules? Why is he so damaging the standing of British universities around the world? (118562)

I know that the right hon. Gentleman speaks with considerable experience and wants to speak up on behalf of his constituency. Having looked at this case and at the action that the Border Agency has taken, it seems to me that there were some real abuses. I want Britain to be open to students. Let us be clear: anyone who can speak English and who has a university place is able to come here and study at our universities, but the Minister for Immigration has rightly been very hard in closing down bogus colleges and in ensuring that action is taken when good universities, like this one, are not meeting the rules. That must be right if we are to control immigration.

Is my right hon. Friend the Prime Minister aware that in Watford in the last quarter of 2012, for which the numbers have just come out, 327 new companies were incorporated? That is a record and is way beyond anything in history. I think he will agree that that shows that the Government’s policy of encouraging private enterprise is succeeding.

My hon. Friend makes an important point. As I understand it, 2011 saw the fastest rate of new business creation of any year in decades. That is what our economy requires. It takes time and patience, because we need a massive rebalancing away from the public sector and towards the private sector, and we need other industries, not just finance and retail, to succeed. We want to see business regeneration right across our country. That rebalancing takes time and is difficult, but it is the only long-term way out of the economic difficulties that we were left by the Labour party.

Q8. The Prime Minister is right to celebrate the most extraordinary Paralympics, which we are seeing at the moment, and the exceptional achievements of Team GB within those games. What, then, does he say to Baroness Grey-Thompson and the other Paralympians who warned this week that his decision to cut disability living allowance will prevent disabled people from participating in sport and threaten the legacy of the London games? (118563)

The message that I would give to everyone in ParalympicsGB—which is, of course, a separate team from Team GB—is a huge congratulations on their massive success at the games. It has been truly inspiring to see on television or in person, which I have had the privilege of doing, the absolutely packed stadiums for the Paralympics. That is not something that everyone expected, but it says a lot about our country and our people, and is great for the Paralympics.

To answer the hon. Gentleman’s question directly, we are not cutting the money that is going into supporting disability. We are reforming the system by replacing disability living allowance with the personal independence payment. That is all about recognising people’s needs. It has been worked up very carefully with the disability lobby and I think that it will be an improvement on the current system.

Q9. The Prime Minister is well aware of the lack of capacity at Britain’s airports. In seeking to resolve that problem, will he consider the opportunity presented by regional airports, such as those in Birmingham, which could help to rebalance the economy? (118565)

My hon. Friend makes a very good point about regional airports. Let me be very frank about this: these very large infrastructure projects are extremely difficult for individual Governments to take on and deliver. What we need to do is build a process that will hopefully have cross-party support, so that we can look carefully at the issue and deliver changes that will address the problems of capacity that we will have in future years and the issue of the UK’s hub status. I hope to make an announcement about that in the coming days, but it is important that we work across party lines, because this will not happen unless parties sign up to a process that can deliver.

I just wonder whether I can cut through the waffle that the Prime Minister gave us in answer to the question about disability living allowance. The reality is that 600,000 disabled people will lose an extra cost benefit. Instead of just giving warm words to disabled people in this country, why does he not take aside his immovable Secretary of State for Work and Pensions and say to him that it is time we thought again on this one?

The move from disability living allowance to personal independence payments has been an exercise of huge consultation with the disability lobbies to try to ensure that we get this right. The fact is, there are hundreds of thousands of people on DLA who have never had a recheck since they started to take on that benefit, and many others—I know this as a parent who filled out the form myself—who have to fill out reams of answers to questions without the proper medical check that would actually get them the benefit quicker. We are moving from an old system that is out of date to a new system that will actually help disabled people.

Q10. Selective dorsal rhizotomy is the name of an operation that allows children with spastic cerebral palsy, like my constituent Holly Davies, to leave their wheelchair behind and walk independently. It has been carried out successfully thousands of times in the United States but is available only privately in the UK as the National Institute for Health and Clinical Excellence refuses to allow the operation on the NHS. Will the Prime Minister look at the situation and help me, and the families across the country who are currently raising money for their children to have the operation, to get NICE to change its mind? (118567)

I will certainly look closely at that. I quite understand, as a parent of a very disabled child who had cerebral palsy, that if there was anything that a parent could do to get their child out of the wheelchair, they would want that to happen. I have looked at this case, and NICE actually says that the operation is a treatment option for some children and young people, but it cautions against the potentially serious complications, because it is an irreversible operation with risks involved. However, I will look at the matter very carefully and see whether there is anything more that NICE should consider.

Q11. Whenever the Prime Minister is faced with industrial dispute in this country, he always advises the trade unions to go for reconciliation and arbitration. In the interests of fairness, will he speak to his new Health Secretary and ask him to involve himself in the dispute at Northumbria Healthcare NHS Trust, to ask its board to do what the union is asking for and refer the dispute to the NHS Staff Council for resolution? (118568)

The new Health Secretary will have been listening carefully to that, and I am sure he will be able to discuss the matter with the hon. Gentleman.

It is very important that motorists have the right to renew their car tax at the post office. Not everybody has internet access. The Driver and Vehicle Licensing Agency contract is up for renewal soon. Will the Prime Minister please ensure that the contract stays with the Post Office?

My hon. Friend makes an important point, particularly as he represents a very far-flung rural constituency with people living across a number of different islands. I am sure the Business Secretary will have been listening carefully to what he says, although the Government can make a limited amount of interference in such contracts.

Q12. Does the Prime Minister have full confidence in his police and crime commissioner in Hampshire? (118570)

What I would say about the police and crime commissioners is that we have not yet had the elections. We are going to have elections in November, and this is a very good opportunity to broadcast from this House what an important set of elections those are. I want to see a new form of accountability coming through in our police forces, and this is an excellent reform. I am sure that many people want to turn out and vote, hopefully for their local Conservative candidate.

Over the summer, a number of communities across Brigg and Google, including Swinefleet and Crowle, suffered flooding, in part because our drainage dykes are not cleared out as drainage boards fear prosecution under conservation of habitats legislation. Will the Prime Minister meet his new Environment Secretary and take away that threat of prosecution, so that drainage dykes that were built and dug to protect property can do their job?

As someone who represents a constituency that has frequently been subject to very bad flooding, I know how many frustrations there can be in local communities when things that need to be done do not get done quickly enough. Sometimes that is the fault of different agencies, sometimes that of landowners, sometimes that of local authorities. All sorts of issues have to be crunched through, but I am sure that the Environment Secretary will have listened closely to what my hon. Friend said.

Will the Prime Minister confirm, with no ifs or buts, that there will be no third runway at Heathrow airport while he leads his party?

Let me say clearly that, while I believe that we need to establish a form of review that will bring parties together and make a decision about airport capacity, I will not break my manifesto pledge.

A letter from and meeting with the Secretary of State for Defence has confirmed that the 2nd Battalion the Royal Regiment of Fusiliers is the only battalion that should not have been cut on military grounds. What did for 2RF was the additional criterion that regimental losses be capped at one battalion, thus saving more poorly recruited Scottish battalions ahead of a Scottish referendum. Will the Prime Minister kindly meet me and other MPs from across the House to discuss the issue?

I am happy to arrange a meeting between my hon. Friend, the Defence Secretary and other interested Members. It is right for the Army to change in its structure—not in its overall size; with 82,000 regular soldiers and 30,000 territorials, the Army’s overall size will not change. It was and is difficult to do that in a way that respects regimental traditions, cap badges and issues that I know are very dear to a number of hon. Members. However, it is important that we do that across the United Kingdom. That is what the Government set out to do, but I am happy to arrange that meeting.