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Oral Answers to Questions

Volume 599: debated on Wednesday 16 September 2015


The Secretary of State was asked—

Summer Budget 2015

With your permission, Mr Speaker, I congratulate the new shadow Wales team and welcome them to their places. I particularly congratulate the hon. Member for Llanelli (Nia Griffith), and wish her well in her new role.

The summer Budget was a one nation Budget to benefit the whole of the United Kingdom. It was a Budget to help to create a higher-wage, lower-tax, lower-welfare economy, and a Budget to reward hard work while protecting the most vulnerable in our society.

I congratulate my hon. Friend the Member for Llanelli (Nia Griffith) on her very well-deserved promotion. The Budget actually cut millions from over 200,000 working families in Wales. How can the Secretary of State justify pushing even more Welsh children into poverty?

I just do not accept the right hon. Lady’s charge. We discussed this issue at length in this place yesterday, and the measures passed with a comfortable majority. The truth is that the vast majority of people in Wales will benefit financially from all the measures we are putting in place through the Budget. I never thought I would see the day when Labour Members stood up to talk down the efforts we are making to increase pay for working people across Wales.

What happened to the level of unemployment in Wales over the lifetime of the last Parliament, and what impact does the Secretary of State think the Budget will have on employment over the lifetime of this Parliament?

My hon. Friend asks a really good question. What we have seen over the past five years, despite the scaremongering and Labour’s talking down of the Welsh economy, is unemployment continuing to fall. Today’s figures demonstrate once again that record numbers of people in Wales are going back to work—there is no reason to think that that will not continue—and we will achieve our long-term ambition of full employment.

The Prime Minister repeatedly promised before the election not to cut child tax credits, so will the Secretary of State explain to the 250,000 families in Wales who are losing an average of £1,000 a year, 90% of which will not be recouped by the rise in the minimum wage, just why his Conservative Government are breaking that promise? By reducing work incentives and hitting low-income families, any pretence they ever had to represent working people has been exposed as the sham it always was.

I am really surprised by the tone that the shadow Secretary of State adopts for her first question. As I said, we discussed this issue at length yesterday. We have just come through an election in which the people of this country gave a very strong mandate and endorsement to one party to carry on fixing the economy and reducing the deficit. We cannot get on top of that or achieve it without tackling our spiralling welfare costs. I thought during the election campaign that Labour Members seemed to be getting close to understanding that, but I now see that they have abandoned all hope.

We have a broken promise on child tax credits. The majority of the 250,000 families affected are in work, and the Government are deliberately choosing to push them into poverty. It is not only they who will lose out. These cuts will suck £200 million out of the Welsh economy, which is money that families, out of sheer necessity, spend directly in their local high streets. What assessment has the Secretary of State made of the knock-on effects of that lost income on jobs in our communities across Wales?

Ahead of the summer Budget, we of course analysed how the measures taken together would affect people up and down the country. As I have said, eight out of 10 families will be better off as a result of the measures we are taking. The hon. Lady knows as well as I do that low pay has been a curse on the Welsh economy for far too long. I repeat the point that I never thought I would see the day when Labour Members stood up to talk down the efforts that we are making to drive up wage levels for people all across our country.

Welsh Curriculum

2. What discussions he has had with Ministers in the Welsh Government on ensuring that the new Welsh curriculum is accepted across the UK. [R] (901172)

With your permission, Mr Speaker, I too congratulate Labour Front Benchers on their appointments.

My hon. Friend raises an important issue. Greater mobility means reputable, recognisable and comparable qualifications are more important than ever. The CBI has said that employers believe that qualifications across the UK need to be directly comparable.

Is the Minister aware that if one puts the words “Wales”, “Labour”, “Education Minister” and “apology” into Google, one can read an admission from that Education Minister that Welsh Labour’s education policies have been an absolute failure? Does he agree that if we are serious about raising educational standards in Wales, we need only wait until the May Welsh Assembly elections, when instead of ditching the curriculum we can ditch the Labour Welsh Assembly Government?

In the first instance, we need to recognise the success of pupils who passed their A-levels and GCSEs in the summer. However, there is a worrying gap between the trends in Wales and England. As my right hon. Friend the Secretary of State for Education has said, the results speak for themselves. With free schools, academies and other reforms in England, 1 million more children are in good or outstanding schools here—sadly, those reforms have not been made in Wales.

One great success story in Wales is the growth of Welsh medium schools and the emphasis on language learning in the Welsh curriculum. We have put paid to the nonsense that people in this country have to be monolingual. How will the Minister share that success right across the nations of the UK?

There has been great success in encouraging people to learn Welsh in Wales. Of course, that should not come at the cost of any other language. It is important that we champion that success: bilingual education can work and does work. We will encourage as many people as possible to learn not only Welsh, but modern foreign languages in Wales and across the UK.

I know that the Minister, who has a coterminous boundary with me, will want to congratulate the pupils and teachers in schools in his constituency and mine who this year produced record summer results for A-level students and an improved performance at A* to C in GCSEs in English language, Welsh, maths and science. Rather than talk them down, will he congratulate those students and schools?

The hon. Gentleman either ignored the answer I gave earlier or prepared his script before he came to Question Time. I did congratulate the students who succeeded. My point was that we need more students in Wales to succeed because there is a worrying gap between the success in England and the success in Wales.


It is 12 months since the NATO summit showcased Wales to the world, and the Welsh tourism industry continues to boom. It is an essential part of the Welsh economy, attracting investment, jobs and record numbers of visitors to Wales. International visitors spent £368 million visiting Wales last year.

Does my hon. Friend agree that the start of the rugby world cup gives Wales the opportunity to put itself on the front foot for business and tourism? Will he join me in wishing Wales every success in the world cup, until they play England?

My hon. Friend has a point. International events play a significant role in attracting visitors, while promoting Wales and the UK to the world. The rugby world cup not only means that Wales will lift the Webb Ellis trophy; it gives us a great opportunity to sing the Welsh national anthem and the UK national anthem together.

As a member of the NATO Parliamentary Assembly, I welcome the fact that last year’s NATO summit took place in Newport, Wales. Will the Minister ensure that Wales can build on that wonderful showcase for its heritage and food and drink industry?

I am grateful to my hon. Friend for reminding us of the importance of the NATO summit that the last Government took to Wales. That not only allowed us to promote Wales around the globe, but was an important step towards the commitment that 2% of GDP would be spent on defence.

10. Given all the Government schemes to encourage tourism in Wales, does the Minister think it is fair that people who want to visit Wales are thumped with a toll of £6.50 on the Severn bridge? What will he do to stop that tax on tourism? (901181)

I am aware of the hon. Gentleman’s interest in the Severn toll, as well as that of many Members from all parties across the House. The law has been in place for decades, but the concession will end in 2017 or 2018, depending on traffic volumes. That gives us the opportunity to bring innovations to the crossing, and my right hon. Friend the Chancellor of the Exchequer has already made significant moves in this area.

Welcome though the trend of increasing visitor numbers is, I know that the Minister is not one to rest on his laurels. With that in mind, what discussions has he had about reducing VAT on tourism, which would boost many local economies throughout the country?

That seems to be a perennial question from Members. VAT is a matter for the Chancellor, who always keeps such matters under review, and there are currently no plans to change VAT on the tourism sector. There are great things in Wales that we can champion to encourage more tourists to Wales. The Countryside is GREAT campaign is promoted by VisitBritain and provides an excellent opportunity for that, and I look forward to the UK tourism Minister visiting Cardiff shortly to discuss the great opportunities that it offers.

Confidence in the tourism sector in my constituency is riding high, as illustrated by the £5 million refurbishment of the Llandudno Bay hotel. Does my hon. Friend agree that the only threat to confidence in that sector in Wales is the anti-business rhetoric of the Labour party?

My hon. Friend makes an important point, and his constituency depends significantly on income from the tourism sector. He rightly highlights the fact that every tourism business is a business, and the changes that we have made to make this a more entrepreneurial, innovative and growth-driven economy not only help every business but have particular relevance to the tourism sector.

Next month Blaenavon world heritage site in my constituency will host the UNESCO world heritage youth summit. Will the Minister congratulate Blaenavon on that, and agree how important it is that we showcase our world heritage sites in Wales to the world?

I am grateful to the hon. Gentleman for drawing the House’s attention to that issue. The summit is important and I congratulate Blaenavon and wish the community well. I remember UNESCO awarding world heritage status to Blaenavon. The Welsh Government did a good job promoting the area, and the UK Government have a part to play in developing that further.

Further to the question from my hon. Friend the Member for Islwyn (Chris Evans), tourists arriving in Wales this weekend for the rugby world cup will face paying the highest toll in the UK on the Severn bridges—something that Welsh commuters and businesses face every day when they travel over those bridges. Will the Minister commit to make it a personal priority to press for a significant reduction in the toll once the concession ends, beyond the VAT reduction, and fight hard for that in government?

The hon. Lady regularly raises that issue, and the Government appreciate its importance. We have already committed to reducing VAT when the concession ends, and my right hon. Friend the Chancellor has gone even further because small businesses with light vans will pay the same price as cars, reducing the rate from more than £13 to closer to £5. The end of the concession provides us with an opportunity to do more, and that debate and discussion is ongoing.

Order. There is an understandable air of anticipation in the Chamber at this time, which is reflected in a large number of rather noisy private conversations. Let us have a bit of order for the new parliamentary leader of Plaid Cymru.

Benefit Sanctions

5. What assessment he has made of the effect of benefit sanctions in areas of Wales which have high numbers of economically inactive people and low numbers of available jobs relative to the rest of the country. (901175)

I congratulate the hon. Gentleman on his new role as leader of his party. Benefit sanctions are a necessary part of a welfare system that encourages people to take up support, while being sustainable and fair. Our welfare reforms have helped thousands of people from across Wales move from inactivity into work.

I thank the Secretary of State for his kind words. Some areas of Wales have high unemployment and low economic activity, and getting a job or extra hours is not easy, or even impossible. What has he done personally, as our Secretary of State, to ensure that our people are not subject to arbitrary and unfair benefit sanctions?

I repeat that we need benefit sanctions if we are to reform the welfare system in a way that will encourage hard work and responsible decisions, but they are used as a matter of last resort. I take the hon. Gentleman’s point about rurality as I am from a rural area myself, but I remind him that unemployment has fallen significantly in his constituency over the past five years, and we thoroughly expect that to continue.

Following yesterday’s decision, Welsh families will lose between £1,000 and £2,500 in tax credits every year. Is the Secretary of State confident that his constituents, and mine, are aware of that change, so that they can plan cuts to food, fuel, clothing, footwear and—dare I say it?—even travelling to work?

The hon. Gentleman paints a very negative picture. His constituency, like a great many in Wales, has suffered too long from the curse of low pay, so I thought he would welcome the fact that one of the things we are doing to transform the Welsh economy is introduce a national living wage, which will benefit thousands of families in his constituency and mine

Would the Secretary of State allow made-up quotes to be included in leaflets from the Wales Office? If not, does he think it is acceptable that the Department for Work and Pensions did just that when it made up quotes about benefits sanctions?

The information the hon. Lady refers to was used for illustrative purposes only. I think it is actually helpful to provide information based around real-life case studies so that people can understand how changes we make affect families in different circumstances.

Great Western Line

6. What discussions he has had with the Secretary of State for Transport on the completion date for electrification of the Great Western line. (901176)

I have regular discussions with my right hon. Friend the Secretary of State for Transport. He and I share a total commitment to the electrification of the Great Western line all the way through to Swansea. Both he and the Prime Minister have been clear about the priority we all place on this strategic project.

Earlier this week, the Secretary of State told the Welsh Affairs Committee about Sir Peter Hendy’s stakeholder consultation. Are all the stakeholders committed to the project and, more importantly, did he share the UK Government’s commitment to the project with Sir Peter?

What matters above all else is our commitment, from the Prime Minister downwards, to completing the project. Opposition Members have expressed a lot of concern about the progress of the project. If they do not believe it is happening, I would encourage the hon. Lady and her colleagues to walk the length of the route, because they will see work happening right now to deliver this really important project.

14. Will the Secretary of State give a cast-iron guarantee, here and now, that in his review Sir Peter Hendy, the newly appointed chief executive of Network Rail, will not look again at stopping the electrification of the line to Cardiff and having dual fuel from Cardiff to Swansea? (901185)

I am not sure the hon. Gentleman quite knows about these issues. We are totally committed—I cannot be clearer than that—to electrifying the Great Western line all the way through to Swansea, as part of a programme of infrastructure investment bigger than anything this country has seen since the days of Isambard Kingdom Brunel.

Over the summer, it was reported that electrification of the Great Western line was costing four times more per mile than the UK’s last major infrastructure project, the east coast main line, which was completed in 1991. [Interruption.] One reason for the escalating costs are the compensation payments to train operators, which did not arise in the case of the east coast main line because the service was in public ownership. With the cost to the public purse now reportedly £1 billion more than projected, does the Secretary of State believe that the schedule 4 payments are justified, and does he agree that the profit-for-dividend model must be taken out of rail services? [Interruption.]

Order. We must have a bit of quiet. I could hardly hear the hon. Gentleman’s mellifluous tones. Let us hear the Secretary of State.

In fairness, I did not hear all of the hon. Gentleman’s question, so I will write to him about the specific issues. He is right that electrification is a really expensive way of investing in our railways, but it is the right thing to do. We have asked Sir Peter Hendy to look at all the different projects that Network Rail is juggling and report back to us this autumn with an update, but nobody in this place or outside should be in any doubt about our commitment to delivering electrification all the way through to Swansea.

Civil Service Jobs

7. What recent discussions he has had with his ministerial colleagues on the provision of civil service jobs in Wales. (901177)

I have regular discussions with ministerial colleagues on a range of issues, including civil service jobs in Wales. I appreciate that the civil service, as a major employer in Wales, contributes significantly to the Welsh economy.

With 30 years of whinging and whining from job gluttons, mostly from London, set against the huge success of the relocation of civil service jobs in Wales, when will we hear a strong clarion call from Welsh Ministers to defend jobs in the broad acres of Wales and away from polluted, overcrowded and congested London?

I think the hon. Gentleman is referring to reports about the Office for National Statistics. Sir Charlie Bean’s review is a wide-ranging report, independent of Government, into how to address future challenges to the measurement and production of economic statistics. He referred specifically to the support given by the Wales Office. I am sure that my predecessors would like me to highlight that the number of civil servants employed across the UK has fallen by 17% but in Wales by only 13%. That is a credit to my predecessors.

Her Majesty’s Revenue and Customs is talking about shifting jobs from Wrexham in north Wales to Cardiff. Will the Minister meet me to ensure that north Wales has civil service jobs and that the Tories in Wales do not sell north Wales down the river again?

I do not accept the premise of the question. The Government’s commitment to north Wales is significant. We are looking at the improvement of the railway line across north Wales, and the hon. Gentleman will be more than aware of the impact that the prison will have in north Wales. Of course we want to ensure that all the jobs are as efficient as possible. I will happily write to the hon. Gentleman on the detail of the point that he has brought to the attention of the House.

What discussions has the Minister had with the people in the civil service who are responsible for the provision of library services about the appalling decision to remove an exhibition about Israeli and Palestinian people playing football together? Does he think that the decision to remove the exhibition will bring people together and further knowledge, which is what libraries are supposed to be about?

The hon. Gentleman makes an important point, referring to a disgraceful decision and act by Cardiff city council ahead of a visit from Israel to Cardiff. I hope that the leaders of his party on Cardiff city council will hear and take note of his comments.

Economic Inactivity

Our economic plan continues to bear fruit for Wales. This summer, we have seen more people in Wales going out to work each day than ever before, as economic inactivity falls.

In 2011, the Labour Welsh Government announced that 5,000 jobs will be created in the Deeside enterprise zone. Four years later, fewer than 1,000 have been delivered. What is the Secretary of State doing to ensure that north Wales will benefit from the Mersey Dee Alliance?

These are primarily Assembly issues, and I will look into them on behalf of my hon. Friend. What I can say is that business in north Wales, as throughout the whole of Wales right now, is filled with concern and dismay about the posture of a Labour party that is increasingly anti-business, anti-British and anti-worker.

The Port Talbot steelworks in my constituency accounts for over 4,000 jobs, but it is facing crippling energy bills. Does the Secretary of State agree that urgent action is now required to help the steel industry to reduce its energy costs?

The hon. Gentleman may be aware that I was in his constituency just a fortnight ago with my right hon. Friend the Minister for Small Business, Industry and Enterprise to meet Tata Steel—and we also met Celsa Steel that day—to talk about precisely the issues he raises. It is a concern. People in the steel industry are a concern for us, and we are working with the industry to provide compensation for the higher bills it faces as a result of our renewable obligations.

Does the Secretary of State not agree that the economy of Wales would be boosted by the exciting proposed spaceport at Llanbedr? What discussions has he had with his Cabinet colleagues about bringing the spaceport to Llanbedr?

The hon. Lady knows, because we discussed this on Monday, that I share her excitement and enthusiasm about the prospect of a spaceport coming to Llanbedr in her constituency. The Government are looking at various sites and various options, but I am in discussions with my colleagues at the Department for Transport about how we can secure that facility potentially for Wales.

Northern Powerhouse

The northern powerhouse is a fantastic opportunity for north Wales. My hon. Friend will appreciate that there is significant economic and business value in strengthening links in the region.

Will my hon. Friend say whether Welsh Ministers are engaging positively with the United Kingdom Government in pursuing the northern powerhouse agenda, or are they maintaining their customary position that nothing that happens in Cheshire is of any interest to the people of Flintshire?

My right hon. Friend makes an important point. I must admit that I was disappointed with the Welsh Government’s attitude to the northern powerhouse, highlighting what they said was lowly aspiration and offering only trickle-down benefits to north Wales. The reality is that my right hon. Friend the Chancellor’s plans for the northern powerhouse are about building a strong economy and a strong United Kingdom.

North Wales suffers from some of the poorest mobile phone coverage across the United Kingdom. If we want to have a powerhouse in north Wales and the north of England, will the Government intervene to ensure universal coverage in north Wales and make it the digital centre of the United Kingdom?

My right hon. Friend the Business Secretary, when he was Secretary of State for the Department for Culture, Media and Sport, brought together a groundbreaking arrangement between mobile operators, in addition to the Telefónica deal, with the auction for the 4G communication network, that will deliver at least 95% coverage for the whole of Wales and 98% across the rest of the UK. That is in contrast to the 3G deal that was offered by the previous Labour Government, which led to less than 90% coverage across Wales.

Prime Minister

The Prime Minister was asked—


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

Seventy-five years ago, Spitfires and Hurricanes were flying over Sittingbourne and Sheppey in the battle of Britain, defending our country from Hitler’s aggression. It is particularly appropriate that the Royal Air Force protected the Isle of Sheppey, because it is the birthplace of British aviation, something of which we islanders are immensely proud. Will the Prime Minister join me in paying tribute to those courageous RAF airmen who helped to ensure the freedoms we enjoy today?

I certainly join my hon. Friend in doing that. There was a very moving service in St Paul’s yesterday, where many of us were able to pay tribute to those brave pilots, to the ground crews and to all those involved in what was not just an important moment in British history, but a vital moment in world history as Britain stood alone as the only thing that could stop Hitler and Nazism. It is a reminder of how proud we should be of our armed forces then, today and always.

I want to thank all those who took part in an enormous democratic exercise in this country, which concluded with me being elected as leader of the Labour party and Leader of the Opposition. We can be very proud of the numbers of people who engaged and took part in all those debates.

I have taken part in many events around the country and had conversations with many people about what they thought of this place, our Parliament, our democracy and our conduct within this place. Many told me that they thought Prime Minister’s question time was too theatrical, that Parliament was out of touch and too theatrical, and that they wanted things done differently, but above all they wanted their voice to be heard in Parliament. So I thought, in my first Prime Minister’s Question Time, I would do it in a slightly different way. I am sure the Prime Minister will absolutely welcome this, as he welcomed the idea in 2005, but something seems to have happened to his memory during that period. So I sent out an email to thousands of people and asked them what questions they would like to put to the Prime Minister and I received 40,000 replies.

There is not time to ask 40,000 questions today—our rules limit us to six—so I would like to start with the first one, which is about housing. Two-and-a-half thousand people emailed me about the housing crisis in this country. I ask one from a woman called Marie, who says, “What does the government intend to do about the chronic lack of affordable housing and the extortionate rents charged by some private sector landlords in this country?”

First of all, let me congratulate the right hon. Gentleman on his resounding victory in the Labour leadership election. I welcome him to the Front Bench, and to these exchanges. I am sure that there will be many strong disagreements between us during our exchanges, but when we can work together in the national interest we should do so, and I wish the right hon. Gentleman well in his job.

If we are able to change Prime Minister’s Question Time and make it a more genuine exercise in asking questions and answering questions, no one will be more delighted than me. Last week, when we discussed a substantial issue with substantial questions and proper answers, I felt that that was good for our House and good for our democracy, and so I welcomed it.

Let me now answer, very directly, Marie’s question. We do need to see more affordable housing in our country. We delivered 260,000 affordable housing units during the last Parliament, and we built more council houses in our country than had been managed in the previous 13 years, but I recognise that much more needs to be done. That means carrying on with our reform of the planning system, and it means encouraging the building industry to come up with innovative schemes like the starter homes scheme, but, above all, it means continuing to support the aspirations of people to be able to afford their own homes, which is where schemes such as Help to Buy come in. But I say this to the right hon. Gentleman: we will not get Britain building unless we keep our economy going.

I thank the Prime Minister for that answer, and I thank him for his commitment that we are going to try and do Prime Minister’s Question Time in a more adult way than we have done it in the past.

The effects of Government policy on housing are obviously enormous, and the decision to cut, for example, 1% of the rent levels in councils and in housing associations without thinking about the funding issues that those authorities face is a serious one. I have a question from Steven, who works for a housing association. He says that the cut in rents will mean that the company that he works for will lose 150 jobs by next March because of the loss of funding for that housing association to carry on with its repairs. Down the line, that will mean worse conditions, worse maintenance, fewer people working there, and a greater problem for people living in those properties. Does the Prime Minister not think it is time to reconsider the question of the funding of the administration of housing, as well as, of course, the massive gap of 100,000 units a year between what is needed and what is being built?

What I would say to Steven, and to all those who are working in housing associations and doing a good job, is that for years in our country there was something of a merry-go-round. Rents went up, housing benefit went up, and so taxes had to go up to pay for that. I think it was right in the Budget to cut the rents that social tenants pay, not least because people who are working and not on housing benefit will see a further increase in their take-home pay, and will be able to afford more things in life.

I think it is vital, though, that we reform housing associations and make sure that they are more efficient. They are a part of the public sector that has not been through efficiencies and has not improved its performance, and I think it is about time that it did.

I thank the Prime Minister for that, but it leads me neatly on to what happened yesterday, when the House sadly voted for proposals that will cost families who are affected by the change in tax credits £1,300 per year. That is absolutely shameful. I received more than 1,000 questions about tax credits. Paul, for example, asks this very heartfelt question: “Why is the government taking tax credits away from families? We need this money to survive and so our children don’t suffer. Paying rent and council tax on a low income doesn’t leave you much. Tax credits play a vital role and more is needed to stop us having to become reliant on food banks to survive.”

What we need is a country where work genuinely pays, and that is why what our proposals do is reform welfare, but at the same time bring in a national living wage which will mean that anyone on the lowest rate of pay will get a £20-a-week pay rise next year. That is why the figures show that a family—[Interruption.] I thought that this was the new Question Time. I am not sure that the message has fully hit home.

I do not want to blind the House with statistics, but I will give just two. First, after all our changes, a family where one of whose members is on the minimum wage will be £2,400 better off. Secondly—and I think this is really important—between 1998 and 2009, in-work poverty went up by 20%, at the same time as in-work benefits rose from £6 billion to £28 billion. The old way of doing things is not working, and we should not go back to it. What we must do is tackle the causes of poverty: get people back to work, improve our schools, improve childcare. Those are the ways in which we can create an economy in which work pays and everyone is better off.

The Institute for Fiscal Studies says there are 8 million people in paid work eligible for benefits or tax credits. They are on average being compensated for just 26% of their losses by the so-called national living wage that the Government have introduced. So I ask a question from Claire, who says this: “How is changing the thresholds of entitlement for tax credits going to help hard-working people or families? I work part-time; my husband works full-time earning £25,000”—they have five children—“This decrease in tax credits will see our income plummet.” They ask a simple question: how is this fair?

The country has to live within its means and we were left an unaffordable welfare system and a system where work did not pay. We see today the latest set of employment statistics where the rate of employment in our country has yet again reached a record high—more people in work, more people in full-time work—and we are also seeing unemployment fall in every region of the country except the south-east, and the sharpest falls are in the north-west, the north-east and the west midlands. What we are doing is moving from an economy with low wages, high tax and high welfare to an economy where we have higher wages, lower taxes and less welfare. That is the right answer: an economy where work pays, an economy where people can get on. Let us not go back to the days of unlimited welfare. Labour’s position again today is to abolish the welfare cap; I say that a family that chooses not to work should not be better off than one that chooses to work.

Many people do not have that choice; many people live in a very difficult situation and rely on the welfare state to survive. Surely all of us have a responsibility to make sure that people can live properly and decently in modern Britain; that is surely a decent, civil thing to do.

I received over 1,000 questions on the situation facing our mental health services and people who suffer from mental health conditions. This is a very serious situation across the whole country and I want to put to the Prime Minister a question that was put to me very simply from Gail: “Do you think it is acceptable that the mental health services in this country are on their knees at the present time?”

As I mentioned before the first question, there will be areas where we can work together, and I believe this is one of them; we do need to do more to increase mental health services in our country. We have made some important steps forward in recent years. Mental health and physical health now have parity in the NHS constitution. We have introduced for the first time waiting time targets for mental health services so they are not seen as a Cinderella service, and of course we have made the commitment—a commitment I hope the right hon. Gentleman will back, undoing previous Labour policy—to back the Stevens plan for an extra £8 billion into the NHS in this Parliament, which can help to fund better mental health services, among other things. There are problems in some mental health services and it is right that we make that commitment.

But I make this one point to the hon. Gentleman: we will not have a strong NHS unless we have a strong economy, and if the Labour party is going to go down the route of unlimited spending, unlimited borrowing and unlimited tax rates, printing money, they will wreck the economic security of our country and the family security of every family in our country. We will not be able to afford a strong NHS without a strong economy.

May I take the Prime Minister back to the situation of mental health in this country, which is very serious? I agree with him absolutely on parity of service, and I hope the spending commitments are brought forward, rather than delayed to the end of this Parliament, because the crisis is very serious. We know this from our constituents, we know this from people we meet, we know this from the devastation that many face—and indeed some have taken their own lives because of the devastation they face.

I ask a question from Angela, who is a mental health professional, so she knows exactly what she is talking about. She says this: “Beds are unobtainable with the result that people suffering serious mental health crises are either left without adequate care or alternatively admitted to facilities many miles away from their homes, relatives and family support systems. The situation is simply unacceptable.” What does the Prime Minister say to Angela and people like her who work so hard in the mental health services, or people going through a mental health crisis who may well be watching us today on Prime Minister’s Question Time and want to know that we take their conditions seriously, and take seriously their need for emergency beds and to be near their homes and support system, and that we as a society take seriously their plight and are going to help them and care for them? What does the Prime Minister say to Angela?

What I would say to Angela, and all those working in mental health—and indeed all those suffering from mental health conditions—is that we need to do more as a country to help tackle mental health. That is obviously about money into the health service, which we will deliver, but it is also about changing the way the health service helps those with mental health conditions. The right hon. Gentleman rightly talks about mental health beds, and they are important, but frankly so is the service that people get when they visit their GP. Many people going into their GP surgeries have mental health conditions, but they are not treated for those conditions and do not get access to, for instance, the cognitive behavioural therapies that are increasingly being made available. So my argument is, yes, put in the resources, change the way the NHS works and change public attitudes to mental health—that is vital—but I say again that we will not be able to do any of those things without the strong economy that we have built over these last five years.

Q15. The Isle of Wight zoo is having difficulty importing a tiger. She was cruelly treated in a circus and has now been kept in isolation for nearly two years, despite Belgium being wholly free from rabies. Will my right hon. Friend assist in breaking through this bureaucratic logjam? (901370)

I want to hear about the tiger, and we will help those at the Department for Environment, Food and Rural Affairs’ Animal and Plant Health Agency, because they are the ones who are working on this. I had a constituency case exactly like this, when the Cotswold Wildlife Park wanted to bring in a rhino. I intervened, and I am delighted to say that the Cotswold Wildlife Park named the rhino Nancy, in honour of my daughter. Nancy has been breeding ever since she arrived in Burford, and I hope that the tiger will be just as effective.

May I begin by congratulating the new leader of the Labour party? We in the Scottish National party look forward to working with him to oppose Tory austerity, and we hope that Labour MPs will join him and us in opposing Trident when the time comes. [Hon. Members: “Oh!”] One year ago to the day, the Prime Minister made a vow to the people of Scotland. Promises were made to deliver home rule and an arrangement as near to federalism as possible. However, the former Prime Minister, Gordon Brown, now says that the UK Government are

“falling short on the delivery of the recommendations of the Smith Commission on Scottish devolution”.

When will the Prime Minister deliver on the promises that he made to the people of Scotland?

We have delivered on all the promises that we made—[Interruption.] We said that we would introduce a Scotland Bill, and we introduced a Scotland Bill. We said that there would be unprecedented devolution on taxes, and there has been unprecedented devolution on taxes. We said that we would provide those welfare powers, and we have given those welfare powers. The question now for the SNP is this: when are you going to stop talking about processes and start telling us what taxes you are going to put up? What welfare changes are you going to make? Or, when it comes to talking about the issues, are you frit?

That is very interesting. Whatever happened to the new style of PMQs? One of the architects of the vow says that it is not being fully delivered, as does the Scottish Trades Union Congress. The Scottish Council for Voluntary Organisations, Carers Scotland and Enable Scotland all say that not enough welfare powers are being devolved. Only 9% of people in Scotland believe that the vow has been delivered, and not one amendment to the Scotland Bill has been accepted by the Government. Tory bluster and condescension will not go down well in Scotland. So, for the second time, may I ask the Prime Minister to tell us, in his new style of answering at Prime Minister’s questions, when he will deliver on the promises that were made to the people of Scotland?

Of course this is going to take a bit of getting used to, but let me try to answer the right hon. Gentleman very calmly. What I notice from his question is that he has not given me one single example of where the vow was not delivered. If he can point to a tax we promised to devolve but have not devolved, I would accept it. If he can point to a welfare change we promised to devolve but did not devolve, I would accept it. He has not done those things. All he is doing is continuing an argument about process, because he does not want to talk about the substance. You give me a list—sorry, he should give me a list—of the things that were promised and were not delivered, and then we can have a very reasonable conversation. Until then, it is all bluster from the SNP.

Q14. The Prime Minister has a lot to be pleased with Corby for—that is Corby, not Corbyn. Not only did Corby help him back into No. 10, but it gave to him and the world the DVD case, which was designed and first produced in the town. This week, we continue that entrepreneurial spirit, with our bid for a new enterprise zone being submitted. Does he agree that areas that are taking significant housing growth should also benefit from new jobs and new infrastructure? (901369)

My hon. Friend is absolutely right; there is a lot that is very positive happening in Corby—we got the claimant count down by 29% over the last year and long-term youth unemployment is down. The point he makes about areas that take extra housing getting the opportunity for more infrastructure is right. So, yes, ever since his election I have been feeling a sense of Corbymania.

Q2. Public sector workers like nurses, health workers, local government workers, teachers and public service workers have not had a pay rise for five years, and they are being told by the Chancellor that they are going to get 1% for the next five years. What is it with these hard-working, good tax-paying people that means this Tory Government will not give them a decent rise? (901357)

First, what we have been most keen on is trying to protect the services and the jobs, and it has a direct impact if you simply have larger pay rises. But of course today inflation is 0% and there are pay increases in the public sector, and what the hon. Gentleman completely fails to mention are the progression payments that, for instance, in the health service, have delivered year-on-year pay increases for many hard-working people in our NHS whom I want to see rewarded. But there is something else we can do, which is to cut their taxes. By keeping public spending under control and by growing our economy, we are able to say to everyone in our public sector, “You can earn £11,000 before you start paying any income tax at all.” That has been, in effect, a pay rise for 29 million working people.

Q13. Following the Prime Minister’s visit to Yorkshire last week, peace, love and harmony has broken out right across the county. Members on both sides of the House have expressed their support for a “Greater Yorkshire” bid, encompassing north, east and west Yorkshire and Hull. Will he agree to meet me and other Members to discuss the merits of the bid, and the central role we believe it can play in the northern powerhouse and our economic security? (901368)

I will obviously take great care with my answer. I think it is excellent that we have got these devolution proposals, and it is very good that a number of different ideas have come forward from Yorkshire. The most important thing now is for people to try to come together and get behind a plan for Yorkshire. But be in no doubt: this devolution is coming, in terms of real powers and real ability to drive that economy as part of our northern powerhouse.

Q3. My constituent Enola Halleron-Clarke, who is 11 years old, suffers from Morquio syndrome. This distressing disease stunts her growth and leads to abnormal development of the bones, and at the moment there is no cure. Enola would like to be able to use the drug Vimizim to help alleviate her condition, but the National Institute for Health and Care Excellence has yet to decide whether the drug should be available on the NHS. Will the Prime Minister do all he can to encourage NICE to come to a speedy decision for Enola and people like her? (901358)

The hon. Lady is absolutely right to raise the case about this illness and this drug; other Members have raised it as well. She is right to say that NICE is still looking at the matter. I will continue to do all I can to ensure that it reaches a speedy decision. We also need to have a dialogue with the drug companies, because of the vast prices that are being charged for some of these drugs. There are resource implications, and we need to bring down those costs to make the drugs more available, more quickly.

After a Care Quality Commission inspection at Medway hospital, a two-day diversion of ambulances has been put in place, starting this morning. Will the Prime Minister assure me that all will be done to turn things around at our hospital so that my constituents can have a fully functioning A&E swiftly and urgently?

I well remember discussing that with my hon. Friend. Obviously, her hospital has faced difficulties, and, instead of trying to push that under the carpet, we have decided in these circumstances to send in a team to turn things around and improve the hospital’s performance, but more work needs to be done. The pledge I can make is that we will continue investing in that hospital and working on it to ensure that it can provide the service that her constituents deserve.

Q4. At the general election, the Prime Minister promised an extra £8 billion a year for the national health service. This week, the chief executive of one of our leading hospitals in the country, Addenbrooke’s hospital, which serves my constituents in Cambridge, resigned, not least because of the financial crisis that is engulfing our health service, as indicated by the King’s Fund yesterday. How much more damage has to be done to the NHS before the Prime Minister coughs up? (901359)

With the danger of introducing too much politics into this answer, I have to say that at the general election our party stood on the proposal of £8 billion more for the NHS—effectively, it was £10 billion more for the NHS—and we have set out where every penny piece of that is coming from. At that election, the Labour party did not support an extra £8 billion for the NHS; it did not back the Stephens plan. The truth is if we want proper reform for a seven-day NHS and the resources that go with a successful NHS, it is the Conservative party that will deliver.

Q5. In a world in which we have a nuclear North Korea, a rampant and aggressive Russia and the pure evil of the so-called Islamic State, will the Prime Minister agree that, to protect our security and way of life, we simply must have an independent nuclear deterrent? (901360)

My hon. Friend is absolutely right. Defence is the most important duty for a Government and for a Prime Minister. The cornerstone of our defence will remain the 2% spending to which we are committed with the increased defence budget in this Parliament, the membership of NATO and Britain’s own independent nuclear deterrent as the ultimate insurance policy in what is a dangerous world. The fact that the Labour party is turning away from those things is deeply regrettable. National security is the most important thing a Government can deliver and we will never fall short.

The plaques at the entrance door to this Chamber in memory of Airey Neave, Robert Bradford, Ian Gow and Sir Anthony Berry—serving Members of this House who were murdered by terrorists as they stood up for democracy and the British way of life—are a reminder of the savagery and brutality of terrorism, as are the gravestones and the headstones in Northern Ireland and right across this land. The Opposition Leader has appointed a shadow Chancellor who believes that terrorists should be honoured for their bravery. Will the Prime Minister join all of us, from all parts of this House, in denouncing that sentiment and standing with us on behalf of the innocent victims and for the bravery of our armed forces who stood against the terrorists?

From the reaction he has just heard, the right hon. Gentleman will know that he has spoken for many in this House and, I think, the vast majority of people in our country. Airey Neave is the first Member of Parliament I can remember, because he was my Member of Parliament. Ian Gow was one of the first politicians I ever wrote a speech for, and there never was a kinder or gentler public servant in this House. He was cruelly murdered and his family had that life taken away. My view is simple: the terrorism we faced was wrong. It was unjustifiable. The death and the killing was wrong. It was never justified, and people who seek to justify it should be ashamed of themselves.

Q6. Schools in Poole are in the bottom five and schools in Dorset are in the bottom 11 when it comes to local education authorities and funding per pupil. I welcome this Government’s commitment to a fairer funding formula. Does the Prime Minister recognise the importance of fairer funding for our schools in Poole and Dorset, and the need for that to be implemented as quickly as possible to ensure a world-class education for our children, including respect for our traditions, and perhaps even learning the importance of our national anthem? (901361)

My hon. Friend makes a very important point. There are very strong calls on all sides to ensure that we address fairness in funding. In the last Parliament we allocated £390 million extra for fairer funding, and his own authorities, Dorset and Poole, benefited from that, receiving £3.1 million and £3.2 million respectively. I can tell him that that money is included in the baseline for schools funding in 2016 and 2017. But I know that there is unfairness in the current system and I want us to do everything we can to make the funding formula fairer.

Q7. Nissan in my constituency has just reached the half-a-million production mark for its new Qashqai model, breaking all UK records. I am sure that the Prime Minister, and indeed the whole House, will wish to join me in congratulating Nissan on that great achievement. Nissan’s constructive unionised workforce has helped achieve that fantastic outcome, so why is the Prime Minister attacking workers’ rights when in many cases, as at Nissan, trade unions are an overwhelming force for good? (901362)

First, let me agree with the hon. Lady that the achievements at Nissan are absolutely remarkable. One of the great privileges of my job is being able to go and meet people there and see what they are doing. I think that I am right in saying that the north-east of England now produces more cars than the whole of Italy, which is something that I think we can be proud of. Of course, with the new Hitachi factory we will now be manufacturing trains in the north-east as well. Look, the Trade Union Bill is not what she says it is; it is to make sure that we do not have strikes based on very low turnouts. Let me give her one example. A couple of years ago we had school strikes that shut schools right across our country. The ballot was two years out of date and only 27% of people had turned up to vote in it. Working parents across the country had to keep their children at home when they should have been getting the public service they paid for. That is what our Bill is about, and I hope that it will have support across the House.

The bravery of all our servicemen and women is beyond question, but does the Prime Minister agree that the bravest of the brave must be those who faced the invisible bullets of Ebola in the recent crisis in west Africa? Will he take the opportunity to join me, along with Members of both Houses, at the great north door of Westminster Hall straight after Prime Minister’s questions to welcome back 120 soldiers, sailors and airmen, together with aid workers, medical workers and others, who did our bidding in west Africa?

I will be delighted to join my hon. Friend. One of the great privileges of this job was being able recently to hold a reception at No. 10 for people who had served in west Africa tackling Ebola. They are some of the bravest and most remarkable people I have met, whether the nurses, the volunteers or members of Britain’s brave armed forces. It really is remarkable what they have done. We are almost in a position to declare Sierra Leone Ebola-free. Great work has been done by the people of Sierra Leone, but I think that Britain was able to take on this task because we have good armed forces that are properly funded, and having an aid budget at 0.7% of our GNP is something the whole country can be proud of. That is exactly the sort of use of our aid budget, where we are doing it with moral force and with our moral conscience but also keeping our country safe at home. To those who sometimes wonder what are the uses of British troops, I say, “Get a map out and have a look at Sierra Leone.”

Q8. The SSI steelworks in Redcar are facing serious and imminent challenges. UK steel is of vital strategic importance to the British economy. Will the Prime Minister urgently meet me, my hon. Friend the Member for Redcar (Anna Turley) and the steelworkers’ union community so that we can look at more positive ways of supporting our industry in order to protect it in much the same way that other European Governments do? (901363)

The hon. Gentleman is quite right to raise this, and everyone is concerned about the steelworks in Redcar. Obviously, we have taken the action of voting with others in Europe against Chinese dumping. We have also provided over £30 million of support in respect of high energy users. Also, by setting out our national infrastructure plan, we are giving steel producers a sense of the demand in our country in the months and years to come. I will certainly consult my right hon. Friend the Secretary of State for Business, Innovations and Skills about the best sort of meeting we can have in order to make sure we do everything we can to keep steelmaking in Redcar.

Q9. Does the Prime Minister agree that this Government’s commitment to spend 2% of GDP on defence protects our national and economic future, while giving our 21st century armed forces the moral and financial support they need to protect our nation’s security? (901364)

We have had to make difficult decisions in the spending review and we will have to make further difficult decisions, but on the decision to increase our defence spending in a very dangerous and uncertain world, when we face threats in Europe with the behaviour of Russia and the threat from ISIL in the middle east, combined with all the other threats, including cyber, it is absolutely right to increase this spending and to make sure that membership of NATO remains the cornerstone of our defence. National security will always be the top priority of this Government.

We have a statement. It is always a pleasure to listen to the hon. Gentleman. We will save him up and keep his point of order until a little later. The statement comes first.