23/01/2013 BBC News at Ten

David Cameron's referendum gamble which could take Britain out of the

European Union within five years. He says he will renegotiate

Britain's links with the The And then, if he is still Prime Minister,

give the public a chance to decide, in or out of Europe. It is time for

the British people to have their say. It is time to settle this

question about Britain and Europe. In a noisy Commons exchange, Labour

accused the Prime Minister of acting to appease his own

backbenchers. Why doesn't he admitted? You have been driven to

it not by national interests, but been dragged to it by his party.

will be looking at how the move has gone down with European leaders and

business. All change for A-level students in England. From 2015 they

will sit just one set of exams after two years.

Unemployment is down again, falling to its lowest level for 18 months.

And Prince Harry, back in Britain and talking more about his role in

killing the Taliban. You get asked to do things that you would expect

to do, wearing his uniform. It's as simple as that, really. Coming up

in Sportsday on the BBC News Channel, Swansea take on Chelsea

for the right to play Bradford in the League Cup final at Wembley. We

will have all of the action from Good evening. The Prime Minister

staked his future and that of the UK on a political gamble today.

Holding out the prospect of a referendum that could end more than

40 years of Britain within the European Union. It came in his

promise that if he is still Prime Minister after the next election

there will be a referendum by 2017 on whether the UK should stay in or

pull out of the dew. But not before he tries to negotiate our links

with Europe and reform it from within. It met with a mixed

response from other European leaders. Labour said the pledge of

a referendum in future means years of uncertainty.

No speech by the Prime Minister has been agonised over by so long. None

will be of such consequence. None based on a bigger political gamble.

David Cameron promised you a vote today on whether Britain stays in

Europe or whether we should get out. But listen hard. This is a vote

that will not come now and it will not come before the next election.

The next Conservative manifesto in 2015 will ask for a mandate from

the British people for a Conservative government to

negotiate a new settlement with our European partners in the next

Parliament. When we have negotiated that new settlement, we will give

the British people a referendum with a very simple in or out choice.

To stay in the European Union, on these new terms, or to come out

altogether. It will be an in-about referendum. Europe had to change,

he said, to become more, if flexible and accountable. The

mission should no longer be ever- closer union. If not, it is clear

why he thought we were heading. we do not address these challenges,

the danger is that Europe will fail and the British people will drift

towards the exit. I do not want that to happen. I want the European

Union to be a success and I want the relationship between Britain

and the European Union that keeps us in it.

The last time, indeed the only time Britain had a vote on Europe was

way back in 1975, when television graphics were a little bit more

basic. Back then, Harold Wilson and Margaret Thatcher voted yes. David

Cameron's promise to vote could be another four years away. What would

he do? When that referendum comes, let me say now if we can negotiate

such an arrangement, I will campaign for it with all my heart

and soul. What the Prime Minister did not say was what New Deal he

really wanted or what he would do if Europe said know. If you cannot

get a better deal, are you saying you would vote no for Britain to be

out of Europe? If you fudge the question command we entitled to

assume that you want people to think that, but who we are scared

to say it? I will answer that directly. Who goes into a

negotiation hoping and expecting to fail? Come noon, the first test of

how the big speech went down. This, the sound of Tory MPs gritting

their leader's arrival in the Commons. Less impressed, the Labour

leader, who condemned a speech he said was written to please them,

not the country. Why can't you say unequivocally that he will vote yes

in a referendum? Because he is frightened of the people behind him.

The only thing that has changed is a few months ago, when he said he

was against an in or out referendum, it is not the situation in Europe

but the situation in the Tory party. Why doesn't he admitted? He's been

driven to it, not by the national interest, but been dragged to it by

his party. The most basic question of all is, do you want a

referendum? I do, does he? No, we do not want an in-out referendum!

Clear enough, you might think, until his spin-doctors explained he

didn't mean no in any circumstances, just no to making the promise now.

Labour's opponents are smelling blood. I think his stance on no

referendum will drive traditional Labour voters to UKIP. I think the

civil war that you have seen in the Conservative Party on this issue,

you will see in the Labour Party as well. But Labour is not alone on

condemning the promise. Even the Prime Minister's own deputy says he

should be focusing on turning the economy around. That job is made

all the more hard if we have years of grinding uncertainty because of

the ill-defined and protracted negotiation of Britain's status in

the European Union. That, in my view, will hit growth and jobs and

that is why it is not in a national interests, in my view. The speech

David Cameron delivered to be the first step towards a European exit

for Britain. The Prime Minister insists it is not what he wants or

believes will happen. But what he has done today is to ensure that he

is no longer in charge. He claims Well, the Prime Minister claims

public disillusionment with the EU is at an all-time high and it is

time the British people have their say. Richard Bilton has been to

Birmingham, to gauge their reaction to our relationship with Europe and

Mr Cameron's plan to change it. Over the past week, the Midlands

has worried more about its relationship with the Arctic and

Europe. But what do those enjoying warm cappuccinos and lattes think

of the Prime Minister's view that disillusionment with the EU is at

an all-time high? I am more concerned about all of the cuts

going on at the moment. I think we need to worry more about what is

happening at home rather than in Europe. I would like to see a

debate. I think it should be up to the public too at least to voice

their opinion, if not make the decision. It's just seems like they

are point scoring off each other. I don't know how that translates down

into normal people's lives, really. Birmingham sees itself as in the

industrial heartland. Metal-bashing is not what it was. But it means

that in places like this the UK's relationship with Europe is about

more than just politics. It is about jobs and livelihood. Here,

they do not bash metal, but they do manufacture. These precision tools

are used by industries around the world. The managing director says

that Europe is no longer the key market, but the debate is important.

Too much of the regulation that comes out of Europe, a lot of the

waste that we see, we do not want to be part of that. What we need to

do is to renegotiate our position, but remain in it. Down the road, a

different side of the UK economy. This is a distribution centre.

These water and gas meters are not made here, but from here they head

out across Europe. I think it is a mistake. And in-out referendum can

harm my business. It will introduce uncertainty into the marketplace

and that is going to cause difficulties for this business.

of the shopfloor, the concern was not about Europe but about jobs.

The company I work with, progression, if it keeps us in work

and successful, there are no problems. So, what will the issues

be? Tonight, at a city-centre fitness class, strong views on the

Prime Minister's call for a national debate. I think we have

more in common with the United States than anybody. I would be

more inclined to stick by ourselves. It compromises a lot of people and

its country and a lot of jobs that rely on what comes from Europe.

Polls suggests that for many people in the UK, hour relationship with

Europe has become less of a political issue. Today, David

Cameron brought it back into the spotlight.

The reaction from Britain's European partners have been mostly

polite, but clear remits advice against steering the UK out of the

European Union. Some welcomed Mr Cameron's plans to reform the EU,

others criticised him for trying to cherry-pick elements that he wanted.

Angela Merkel said she was prepared Berlin. Chilly and uneasy. The

Government here had been nervous about David Cameron's speech,

despite being briefed beforehand. Even on the streets there is an

understanding that leaving the EU is now an option for Britain.

it is absolutely really a pity. I think we need Great Britain in the

EU. It is time for Britain to decide if they are wholly want to

belong to the European project will not. Soon after, the German

Chancellor said Germany was prepared to talk about Britain's

wishes. Angela Merkel said a fair compromise was needed, balance in

Britain's demands with those of other countries. Her foreign

minister made it clear that what they couldn't accept his Britain

picking and choosing what it liked and disliked. Cherry-picking is not

an option. In challenging times of globalisation, we as Europeans are

all in the same boat. The German and French leaders had met last

night and had co-ordinated their response to David Cameron's speech.

The French are also willing to discuss a more open, flexible dew.

But no special deal for the UK. EU. TRANSLATION: Imagine that they

dew as a football club. Once you're in this club, you cannot say, we

want to play rugby. San MEPs in Brussels watched the speech. Some

welcomed his vision for a leaner, less bureaucratic Europe. It was a

breakthrough speech, a remarkable speech which set up a completely

new vision of the European Union for the future. David Cameron is

now at the World Economic Forum in Davos. Also there, one of his

closest allies in Europe, the Prime Minister of Sweden. David Cameron

is not the only one who has been presenting ideas how to reshape

Walter the direction of the European co-operation. I have

listened to others, we have been able to solve this in a way that is

good for everyone. The message coming out of Berlin today is very

much shared in other capitals. Yes, they want Britain to stay in the EU,

but not at any price. The door is not close to offering some

concessions. But there is little appetite to give Britain a whole

range of opt-outs just for itself. The reality is that Britain will

need the support of the 26 other Aru members to claw back powers

from Europe. That is likely to be a In moment we'll get a final thought

from Nick Robinson in Downing Street. First let's cross to the

World Economic Forum in Davos. Our Economics Editor, Stephanie

flanders is there. Drm has arrived there now. What are business

leaders saying there about what Mr Cameron has had to say?

Stephanie, in Davos, can you hear Well, this is the World Economic

Forum. It's full of business leaders from around the world and

politicians. It is fair to say they are not all talking about David

Cameron and his speech. I think people who are active in Britain

and the British business leaders have had a mixed reaction, much as

you have heard in the UK. Lee liked what they heard about the single

market. The idea that the single market, not the single currency is

the most important idea in the European Union. Those that have to

deal with Brussels regulations on a day-to-day level are sympathetic

with the idea that Brussels needs to be reined in, that there needs

to be less regulation in Europe. But they are nervous. There is

certainly some business leaders, who have written a letter to the

Times tomorrow, eng dorsing David Cameron's approach, he think he has

done the right thing. -- endorsing. Others are worried. Even those who

are sympathetic with David Cameron and agree with what he said in his

speech,, it is hard if find people who feel happy. Others are nervous

about it. They are not sure it is a process they could control. No-one

is selling the pound on the basis of this. They do not do anything on

the financial on the basis of what might happen in five years' time.

But there is a nervousness, will it have the result that David Cameron

hopes it will. Nick Robinson, this speech long-awited by the Prime

Minister, has turned out to be a high-stakes gamble, isn't it? -

long awaited. Ye, but it is one he thinks he is pulling off. Those

Tories MP cheering in the Commons today think they have something to

cheer about and woo back their voters who have gone over to the UK

Independence Party and think they have the Labour Party in a corner,

with Ed Miliband today either looking like he is opposed to the

public having their say or worse, still, he is confused about whether

they should have a say or not. You might think the job is done for the

Prime Minister? Well, not a bit of it. Why? Because David Cameron when

he first became Tory leader, told his party in no uncertain terms -

one of the reasons they have lost is they appeared to bang on about

Europe and obsess about it. In a way, he has given them permission

to do just that, through the next election, for the next five years.

In other words, there are now Euro- sceptic Tory MPs who are telling me

- this we are banking, but from now on, we will demand to know from the

Prime Minister exactly what powers he wants to get back from Brussels.

We will demand from him that he ups his negotiating position. We will

demand that he says that he is prepared to vote no in that

referendum if he doesn't get his way. What's more, Fiona, this is

another example of a policy that has driven the coalition partners,

the Liberal Democrats, into the arms of the Labour Party, not

somewhere the Conservatives may wish them to be. One last thought

for you, though: the curiosity of tonight is this: I'm speaking to

pro-Europeans who believe this speech will save Britain's

membership of the EU, including some very close to the Prime

Minister. I'm talking to anti- Europeans who believe that it'll

lead to Britain inexorablely leaving the EU. They can't both be

right. When they work that out, they're likely to be pretty

unforgiving. Thank you both very much.

Coming up: Prince Harry after his tour of

Afghanistan. Back to normal life? He says he has never known what a

normal life is. There is to be a shake-up in the

way A-level students are tested in England. Instead of modules, tests

and assessments, pupils will just sit exams at the end of their two-

year course. The Education Secretary, Michael Gove, says AS-

level will remain but will not effect the eventual A-level result.

Labour has accused him of turning back the clock. Stkpwhrts back to

the future for A-levels. -- It's back to the future. From 2014 sixth

formers in England will take exams only at the end of a two-year

course with AS levels no longer counting towards the final grade.

We wanted to essentially try to ensure that A-levels, which are

primarily but not exclusively preparation for university

education, gave people a better preparation for what universities

involved. He wants to get rid of what he calls bite-sized learning

and have more detailed study. At this school in London sixth formers

considered the plans. I think it would deer if students from going

it sixth form. Because of the pressure. -- it would deter.

wouldn't be able to handle the pressure of knowing the final

examination, my last chance to shine, was it. Michael Gove says

end of course exams rather than modules will help promote deeper

learning and understanding. No-one is against his aims but many

question the methods. Among them, Cambridge, which uses AS-level

taken at the year of age 12, to make offers to sixth formers.

have found in this university that year 12 results are the best

guidance we have about how well a student can go on and perform when

here. To lose that would throw us back on GCSE results or optimistic

predictions of what they may do in the future. Neither of which is

anywhere near as good as the actual proper exam results of year 12.

Pupils in Wales and Northern Ireland will have to wait to find

out the future of both A-levels and GCSEs for them. But in England, the

modular system of secondry exams does look set to bite the dust.

Unemployment has fallen to its lowest level for 18 months. The

number of UK jobless fell by 37,000 in the last quarter to just under

2.5 million, the lowest since spring 2011. Hugh Pym is with me.

We keep hearing about unemployment falling but the economy is still

struggling. What is going on? these figures were a lot stronger

than most analysts had expected. One or two are wondering whether

they give a true picture of what is really going on, rather than some

other data around. Let's look at the figures. You will see in the

three months ending in November there were nearly 30 million people

in work. That's a record. If you go back over the 12 months leading up

to that three-month period, you see an increase of people in work of

more than 500,000. That's the fastest rate of increase since the

late 1980s. These are headline figures but even if you look at the

employment rate as a percentage of the workforce, that's up too.

was more positive news on the jobs front, McDonald's saying they want

to create 2,500 new jobs. On the other hand, Lloyds Banking Group

saying it wanted to cut 1,000 posts. A few uncertainties. We'll get

another key bit of the economic jigsaw on Friday, with the GDP

figures for the last quarter of last year. Most people expecting

something weaker than the Olympic- fuelled third-quarter figures.

There are warnings tonight that changes to housing benefit could

lead to a rise in evictions. From October, the benefit will no longer

be paid directly to the landlord but to the tenant months a month.

The National Housing Federation say they expect rent arrears to

increase by one quarter of a billion pounds a year. In a survey,

the majority of tenants said they would struggle to prioritise saving

money for the rent, over money for food and other daily costs.

Will Rick pay his rent? A former executive at a global IT company,

he lost a leg after being run over and subsequently developed multiple

sclerosis. He now lives on benefits in North Liverpool with his helper

dog, Shadow, but Rick worries about the shadow Government welfare

reform has cast upon him and many of his neighbours. We are here to

help. It is a strong message. Rick's landlord, a social housing

association, is explaining how responsibility for paying the rent

will soon switch to tenants, remember than housing benefit going

straight to the provider. -- rather than. Your income is decreasing. It

is getting squeezed. Sometimes there is going to be a short fall.

The biggest risk you've got is, if you allow that short fall to come

out of your rent pot, you are facing eviction. Many people in an

area like this live hand-to-mouth. It is a cash economy often based on

weekly benefit payments with the rent already taken out. Now the

Government wants people it take be responsibility for their budgets, -

- to take. Managing their welfare payments online and seeing their

payments going into a bank account on a monthly basis. I find it hard

enough as it is doing is fortnightly rather than monthly. I

have two small children. To be honest I'm in a hole. If the money

comes to me, I wouldn't give it to my landlord. To be honest. You will

face eviction. That's what I'm saying. The biggest social landlord

around here is worried. Half its tenants don't have the internet. A

quarter don't have a bank account. If our arrears goes up it affects

the credibility of our business, in terms of how we borrow money to

build the new houses you see here. And how we can support the local

comoopbt and how we repair our maintain our homes. -- the local

community. It is suggested aren't arrears will increase by one

quarter of a billion a year, a 60% rise. In an echo of the days when

people struggling on low incomes would hide from or plead with the

rent man, Government pilots have seen many more social tenants

falling behind with rents. We are treating social tenants the same so

they learn budgeting skills and if they move into work it is not a

shock. We recognise a minute or the will struggle and they'll need

special support. But the norm is people will have an income coming

in and they'll budget out of it. Some vulnerable tenants will be

allowed to switch back to the old system but many in the housing

field, fear it won't be enough and we'll see thousands of people

losing their homes. Football and tonight's saw Swansea

city City take on Chelsea for the right to join Bradford City in the

final of the Capital One Cup. Look away now if you don't want to know

the skofrplt The main incident came in the

second half when Chelsea Eden Hazard was sent off after kicking a

ball boy who was lying on top of a bull after it had gone out of play.

The match ended 0-0, making it 2-0 on aggregate to Swanseament Prince

Harry has flen back to Britain after a if you are-month Dewer of

duty in Afghanistan. -- flown back. He landed in RAF brieznor tan this

afternoon on a regular personnel flight. He has been recognised for

some comments that he took the enemy out of the game and that

soldiers had to save a life." An RAF plane, returning from the

Afghan desert to waipbtery air bais. Its occupants left behind the

frontline where Harry felt he was one of the guys, able to forget his

destiny. Not any more. Disembarking, the soldier Prince was in

reflective mood about his life. There is nothing normal about what

we have been doing for the last four-and-a-half months and nothing

normal about what is going on out there. In the last day I was there

a seven-year-old girl got shot down by insurgents. So, you know,

normality is a very, very ambiguous thing, if you know what I mean.

For 20 weeks in Afghanistan as Captain Wales he served his country

and his grandmother. Not on the ground but 2,000 feet up as an

Apache helicopter co-pilot and gun ir. His job was to protect troops

down below and when necessary, to kill Taliban fighters. His talk of

taking people out of the game who "did bad stuff to our guys" has

angered some. You get asked to do things. You get asked to do things

you would expect to do wearing this uniform. That's as simple as that,

really. For now, Prince Harry will continue