14/12/2011 Daily Politics

Morning, folks, this is the Daily Politics. Is the deal to save the

Eurozone coming apart at the seams already? Cracks are emerging all

over the 26 who signed up to last week's EU summit deal. David

Cameron decided not to sign that treaty. Now several other European

governments are starting to pick holes in it, so maybe it is not 26-

1 after all. Meanwhile, the euro has hit another low against the

dollar. He was notable by his absence on

Monday, so will Nick Clegg cuddle up to Dave at PMQs today, and what

is the state of the coalition? Apparently, there is "snow"

Christmas spirit in Westminster this year. We will be asking why.

And is the 50 pence tax rate sending the economy down the

Swanee? We will be talking to one plumber who thinks it is. With this

50 pence tax rate, we are close to the tipping point. That is why I

believe the Chancellor should ignore his coalition partners and

listen to us entrepreneurs and flush it down the drain.

Public service broadcasting at its best. With us for the duration, we

have a couple of Christmas fairies. At least, it says so here. Housing

Minister Grant Shapps and the shadow energy secretary Caroline

Flint. Now, without more ado, let's talk about the Christmas spirit in

your own land, or should I say lack of, because appetite for a new

European treaty to create a Eurozone fiscal union appears to be

waning before the ink is dry on last year's agreement. Add to that

fears over the European markets, the future of France's credit

rating, some countries' ability to service their debts not looking

good, the bond markets not looking good and the state of the actual

banking system not booking could. They deposited EUR350 billion on

Monday with the European Central Bank because they don't trust

lending to each other. All looking rosy. It is all aboard

the Trans Euro Express. All except the British, citing health and

safety concerns for the City. But this could trip is already turning

into a bumpy ride. Some passengers are refusing to pay their fare.

Romania has said that they and other countries like Ireland,

Greece, Latvia, Hungary and Portugal should write for free and

not contribute to a new 200 billion euro bail-out fund. Others are

getting restless about being relegated to the back seats while

the Germans and French do all the driving. The Austrians look set to

hold a referendum. The Irish might have won as well, and there have

been calls for a vote in the Netherlands, Denmark and elsewhere.

Now some of the passengers are threatening to stop the bus and get

off altogether, with the Czech prime minister say he thought they

should not take part. The Finnish premier told his parliament he

could not agree to a transfer of national budget sovereignty, and

most seriously, the French opposition Socialists have said the

treaty will not be ratified by France if they win the election

next year. I am joined now by our European Correspondent in Brussels.

It sounds like the whole thing is unravelling? It has never been a

straightforward process. The Thursday night into Friday morning

was a process of pushing through an agreement to please the markets,

but there was no question that there were differences of opinion

behind the scenes. The treaty does not exist at the moment. It is a

blank sheet of paper. They hope to have a first legal draft of it

before the Christmas holiday so that people can take it home and

then choke on their turkey or whatever meat they decide to have

been he'd respective countries. But until they have seen the piece of

paper and the specifics in it, people are standing on the

sidelines. I still think it could be 26-1, because there is enormous

pressure on people to take part. But it will be difficult,

particularly if we get into the realm of referenda in places like

the Netherlands and Ireland. It will be very sticky. A lot of fire

is being directed at David Cameron in the European Parliament. Can you

give us a flavour of that? It was good knockabout stuff for panto

season, with people saying, if you are not going to be here, don't

bother turning up at all. One person said maybe we should

renegotiate the British rebate. There was a lot of anger. Part of

that is built out of a sense of frustration that the impact on the

markets of the agreement in principle to have a treaty was

definitely diluted by the fact that Britain decided not to take part.

There was a feeling that this summit was supposed to be about the

Eurozone, not about you and your determination to safeguard elements

for the City of London. They felt that he hijacked the process in a

selfish way. That is why a lot of ire was directed towards Mr Cameron

and Britain in general. There have been plenty of calls for the

Liberal Democrat MEP who chairs the economic affairs committee in the

European Parliament, many are saying she should now step down

because you should not have a bit running a committee which is to do

with the economy. -- a Brit.

So as this debate takes place, has Ed Miliband decide whether he would

have Sandip? We would not have been in that position, or we would have

had a different debate. In some ways, the discussions now going on

and the differences of opinion among the 26 reinforce our view

that we have lost a chance to be at that table, joining others about

our concerns on issues that are important to us as a country and

losing the support of our traditional allies. But on Labour's

position on the economy, which is for a bigger fiscal Keynesian

stimulus, you are isolated. Nobody agrees with you. We are isolated

because we never got down to talking about things, for example

the European Central Bank being a lender of last resort. It was not

even discussed. Our Prime Minister put down a protocol he had not

discussed with others before the summit and then walked away. Is it

seriously Labour's position that the Labour Party as a Labour

government would be able to talk Mrs Merkel into agreeing with the

ECB becoming a lender of last resort? If we were in government,

opposition would be the same as when we were last in government, to

look at the ways we can have allies. But do you really think you could

convince the Germans? I said we would have a different approach in

tax ticks to this summit, which would have involved months of

discussion. If you are going to put a protocol down, we would not have

drafted it that week. We would have discussed it before and not just

with France and Germany, but our allies like Poland and the new

entrants. That has been vital for putting the French and German power

base into perspective. In walking away, David Cameron denied us the

chance to influence further and be at the heart of discussions. Your

leader can't even get a peace treaty with his brother. What makes

you think he could do better in Brussels? It is better to be at the

table. Chris Huhne, this week, during one of our encounters on

energy in Durban said, if you are not on the table, you are on the

menu. Michael Heseltine had concerns about us walking away.

Margaret Thatcher never walked away, for all her views about the

European Union. And if you are on the Titanic, you don't drown. The

coalition is a joke now, isn't it? It is the hokey croaky coalition.

You put one foot in, one foot out. It is a Christmas panto. Everyone

knows that the coalition has different views on these issues.

There is no point hiding it. We are two different parties with views

that are different on these issues. You don't have the majority in the

house for your position. Labour are against your position. The Lib Dems

are against your position. You have taken a position at this summit for

which you do not have a democratic mandate from the House of Commons.

We do have a mandate from the House of Commons. There was a vote last

night. This is becoming a habit, the Lib Dems not turning up. I will

not say there is no division of opinion between us and the Lib Dems.

But your point about whether the House of Commons supports the Prime

Minister has been proving last -- proven last night, because there

was a vote on the issue where the House of Commons supported the

Government. Could you say, in a sentence, or even two sentences,

what was it that David Cameron vetoed? The idea that Europe would

put upon itself some type of additional tax on financial

services. This should not just be an opt-out for Britain, it should

be an opt-out for Europe. vetoed that the 26? The European

Act was part of the agreement. There is a straight forward

principle here that if you have an industry like financial services,

which has 10% of our GDP, you should not do things, even Europe-

wide, which impacts badly on financial services here or anywhere

else. The Prime Minister was not able to get a reassurance that the

new treaty would not impact on financial services. Because we have

a bigger financial services industry than anywhere else, it was

going to have a negative impact on us disproportionately. You skirted

around the question of whether Ed Miliband, if he was Prime Minister,

would have signed. Of course he would. You were the guys who signed

the working-time directive. You signed us after the general

election into the European We have to move on. You had eight

sentences there. I still don't know why it was vetoed. As we have just

been hearing from Grant Shapps, Harmony has not exactly broken out

in the coalition, so where does this leave it?

Last night, Liberal Democrat MPs refused to vote on a Commons motion

praising the prime minister's handling of the European summit.

The party instead abstained. I am joined now from Westminster by the

Liberal Democrat MP Andrew George and the Conservative MP Peter Bone,

who has never been a fan of the coalition. But they are standing

quite close together. Peter Bone, do you like your friend Andrew

George? I liked him enormously. We agree on nothing except that the

Labour left is in a mess. So the end of the coalition before 2015?

You know I have always shared that view. Last night, we had the DUP

with us and the Liberal Democrats against us. Maybe we need to change

coalition partners. Andrew George, it will all be over soon, according

to Peter Bone. Before you answer that, can you confirm that Nick

Clegg will be in the house for PMQs today? Yes, he will. And of course,

we are entitled to express a view on the outcome, as we did last

night, of last week's summit. Whether it is Mr or Mrs Bone that

we are in coalition with, we are very happy to be there. Are you?

Absolutely. We signed up for a five-year deal. We are committed to

doing that. We will see this through. Of course we are two

political parties at opposite ends of the political spectrum, mortal

enemies in many ways. But we came together in the national interest

and we are delivering on the things of which we agree and seeking

compromise in the areas where we don't. What crumbs of comfort are

there for Lib-Dem voters when you have lost on electoral reform,

tuition fees and now Europe, or critical issues to the Liberal

Democrats? You said yourself you are perhaps mortal enemies with the

Conservatives. It is important that we worked together in the national

interest to restore the country's finances. Whether it be the pupil

premium, which is helping disadvantaged children, whether it

is taking the lowest paid million out of tax, we have seen the

biggest increase in the state pension for decades. We are

delivering Liberal Democrat policy. In his heart, whether it is missed

from us as bone, I am sure they agree with that. Peter Bone, in

your heart, is that how you feel? Andrew sums it up in saying we have

come together to solve the economic crisis. That is the only reason for

us to be in a coalition. As soon as that is solved, we should go our

separate ways. I have a problem with collective responsibility.

When government ministers like the deputy prime minister signed up to

a policy that the Prime Minister then implements in Europe, and then

the deputy prime minister says it is a good idea, and then when his

party kicks up a fuss, changes his position, he is not abiding by

collective responsibility. Thank you.

I go away for two days, and it all falls apart. Am I not allowed to

leave the country? Clearly not. I am going away again next week.

Anyway, it has been quite a week for Liberal Democrat fury. On

Monday during the parliamentary post-mortem, the usually coalition

friendly Joe's Winson, MP, voiced a few thoughts on Mr Cameron's

Against the odds, an excellent deal on climate change was agreed in

Durban this weekend, with the UK playing a leading role alongside

our EU counterparts. Will the Prime Minister reflect whether that kind

of constructive and positive diplomacy might be a better

approach to securing British interest, and Russian for the exit?

That was Jo Swinson in the Commons. She is there now. When Nick Clegg

said to his MPs and peers, I don't want to be the last leader of the

Liberal Democrats by provoking a general election today, what did he

mean? I think we are in a situation where we want to work in the

national interest. It is not in the national interest in any way for us

to have a general election at the moment. We have a job to do to sort

out the nation's economy and that is what the Liberal Democrats in

the coalition are committed to doing. Why did he say he would be

the last leader of the Liberal Democrats if he provoked an

election? I am not sure where that quote is from. It is in today's

Guardian and he told it to his MPs and peers. I would not believe

everything you read in the papers, Andrew. Clearly, there are

differences between the Liberal Democrats and the Conservatives on

the issue of Europe, and that is hardly astonishing. What we are

united about is the importance of getting the economy back on track.

We feel very strongly that playing a positive role in Europe is part

of that. 3.5 million British jobs depend on the EU, half of British

trade is with the EU. The cabinet has decided, and this has been

reported also, that there is a re- engagement strategy, to make sure

we get what we need to liberalise the markets further within the EU,

on digital services, green technologies and so on, to help

British Benefit and create jobs. will ignore the attack on the

Guardian, which we think said to vote for your party in the last

election. Is re-engagement David Cameron's latest joke? Nobody in

Strasbourg want to re-engage with the Brits. We don't want to mince

our words. It is not going to be straightforward, it is a challenge,

we have heard about the different negotiations going on between the

countries. That is something which is important. What should Mr

Cameron have done it last week, in the middle of the night? I made

clear in the Commons on Monday that I think a constructive and positive

approach... If we look at what we manage to do on the climate change

negotiations... You made that point, what should he have done? Should he

have signed up with the other 26? We didn't start from a great

position, as has been reported. In terms of the planning that had gone

in, the position paper being very late in the day. Diplomats often

require time to build alliances. Should he have signed up or

shouldn't he? In it your view, should he have signed up with the

other 26, or shouldn't he? It is important to remember that on

Friday, we were not being asked to give away any powers for the UK.

There would have been the opportunity at a later date. That

said, clearly the Prime Minister is in a very difficult situation. Not

only were France and Germany intransigent, but there is a large

part of David Cameron's party that don't recognise the economic

benefits. I did not ask about his party, I asked about what you would

do. Let's ask Grant Shapps. Did David Cameron have Nick Clegg's

consent to use this veto? negotiating position was set out in

advance. I have got that bit. Did he have the position -- the

permission, if it all goes belly-up, to use the veto? The person doing

the negotiating is the prime minister, ultimately. He is the one

who is there and the only one who can take the decision, on the

ground. Did he or didn't he? Yes. He had Nick Clegg's permission?

negotiating position... understand that. I think we have to

assume there was never a position where an agreement was made in

advance, saying you can do anything, but don't do this. Have we still

got Jo Swinson there? She has had to go. I am quite sad about that. I

was going to ask her if that is what Nick Clegg was saying. It is

an interesting point, that the Labour point is -- the Labour Party

is in at the moment. We are clearly heading for recession, if we are

not already in one. Mr Cameron, isolated in Europe, your favourite

phrase, yet he is up in the polls, he has pleased his own party. Your

party is even slipping in the polls, and so is your leader? Clearly, in

terms of the polls of the public and the stand-off with the European

Union, that goes down well a number of quarters. I have always said, it

-- if it was our task to make people love the European Union, it

would be a hiding to nothing. What ever the hit his short term, what

are the consequences when the smoke clears? Our concern is we are not

in the discussions. The 26 are not unified, and that is not a bad

thing, for a start. We have had a number of summits where, getting to

grips with what is happening in Greece, in terms of the EU, in

terms of jobs and growth -- in terms of the euro. We have had yet

another summit in which we have not been able to be that at the heart

of pressing those issues, and instead we are talking about...

Hang on. We are talking about a week in which he got a hard time at

PMQs, a slapping from his backbenchers. Whatever was the

agreed position with the Nick Clegg, he went there and could not pick up

the phone in 10 hours of negotiations to Nick Clegg. Why is

a party doing so badly? The polls suggest that when it comes to this

issue, Mr Cameron speaks for Britain and you don't. People are

concerned about jobs and opportunities. We know that Europe

is important, we agreed on that. The issue is that if the euro

countries are not doing well, we will not do well either. I was not

asking about the economy but your party's position in the polls, but

we have to move on. Unemployment figures showed yet

another rise in the jobless total, now up to 2.6 4 million, the

highest level since 1994. Youth unemployment was also on the Rise

Again, topping the 1 million mark to the highest level since records

began in 1992. The Prince's Trust said there was a real risk of young

lives being wasted in the dole queue. Can you reassure them

otherwise? Anyone who loses their job, particularly young people, it

is a very difficult position for them. We have launched a �1 billion

fund to fund 160,000 placements, where companies will be able to

take people on without the national picture has been paid, effectively.

We are taking direct action -- without the National Insurance

It is difficult to see any good news. However you paint it. With

the best will in the world, they There isn't any evidence yet that

any of these are working. You have not got figures to say, we have

managed to create this many jobs. It is the early days of the Youth

Contract that was announced last month. I think there is evidence

coming through that some of the approach is starting to work. There

have been nearly 600,000 jobs created in the private sector since

the last election. That's more than the jobs that have been lost in the

public sector. As I mentioned a moment ago, there are 40,000 people

more in employment now than there were on the previous set of figures.

Can I interrupt? Sorry to interrupt. On those figures, in the last

quarter, 67,000 job losses in the public sector and only 5,000 jobs

created in the private sector. That's a huge gap. Is that proof in

your mind that the government's policy would move in, hasn't

happened. The overall figure is 580,000 created. If you take a

small period, I accept what you are saying. I think it shows times are

incredibly tough. If you look at the chilling effect of what has

been going on in the eurozone, that is bound to have an impact. That is

why we need to have an open and free market across Europe. That is

why we think the single market is so important, why we think we need

to be able to export and protect industries, to make sure they are

able to compete on a level playing field. Which is why things like the

veto are so important. One could argue the other way. We hear that

for every 13 jobs lost in the public sector, only one is being

created in the private sector. We are seeing unemployment going up.

What would you do? We would look at reducing VAT for a temporary period.

We would give a National Insurance break. You would borrow more, spend

more and increased debt, it is not a plan for recovery. You haven't

got a plan for recovery because more and more people find

themselves out of work. On the Youth Contract, we did have the

Future Jobs Fund for young people. It may be that the government might

have wanted to change that and improve it, but they chopped it.

Now they are coming back with another programme called his

contract, 18 months down the line. It is not good enough. This is

really important. Last year, our exports to Europe actually went up.

That was a good sign. Domestic be, it is dire in terms of our economy,

because people are not spending... We want exports to rise. That is

the idea. We have to end there. I was quite enjoying that.

Tis the season to be jolly, at a time of season -- good will to all

mankind, except the coalition. It is our final guest of the

competition of 2011. In the spirit of Christmas, we are not just

giving away one mug this we, we are giving away 12. The 12 mugs of

Christmas. They have been on our show all year. Park, I hear you say,

there are only 11 marks there. You could be right. That is because one

lucky winner will be getting this, a brand new Daily Politics mug.

That's right, in 2012, it is out with the old and in with the new.

We might be living in hard times but there are some things that you

cannot scrimp on. And here it is. A thing of beauty. British, or

Taiwanese craftsmanship at its finest.

Yes, they looked very smart. The first name we draw out of the hat

will get the new mug, and we will draw the other names for the rest

of those mugs. We will put the details on the Facebook page and

remind you how to enter in a few minutes. First, can you remember

# We are never going to be respectable.

# But you never change us. # We are never going to be

# Give a little bit of heart and soul. I therefore proclaim that

they are husband and wife. Everything seemed to go so smoothly.

It didn't matter if it was a woman or a man doing it.

To begin with a chance of winning one of those Daily Politics mug,

send your answer to SEN e-mail address -- to be in with a chance.

Send your answer to our special e- mail address.

Coming up to midday, let's take a look at Big Ben for the last time

in 2011. Today's prime minister's question should be worth the price

of admittance, if there was a price, it is on its way. Nick Robinson has

a price, a very high price. He has got the new mark, he is a very

happy man, it is the best Christmas present he will ever get. You want

it back afterwards! He says one thing on camera and another off!

is called television! He may have a go about unemployment, because that

is an easy wicket, given the bad figures. Hard for him to avoid

Europe, where it is not such an easy wicket. He will connect the

two, I would have thought. The instinct will be to say, jobs are

being lost because you are taking the wrong view on Europe and you

are isolated. I always say this about Prime Minister's Questions,

it is a team sport, it is about morale, and never more so than

before MPs go off on their holidays. Ed Miliband has a big problem. The

government has just admitted its economic policies are of course, --

of course. We have a government that is split on the issue of

Europe and his allegedly isolated, and yet it has gone up in the polls.

And they go into Christmas ahead on one or two polls. If you are Leader

of the Opposition, that is extraordinarily bad news. We used

to have a name for this period of the parliament, mid-term blues. The

Blues are rather chuffed and the reds are not. Mr Clegg is going to

be sitting beside him, maybe we should get an extra camera on Mr

Clegg's head and put it in the corner of the screen. These are not

BBC cameras, we don't control them. In recent years, the directors of

parliamentary television have got a bit bold or at doing cutaway shots.

There is stuff that I do on a television news package, I have no

control over those pictures. Let's see if they do it. When Mr Clegg

told his party he couldn't call an election because he would be the

last Lib Dem leader, it emphasised that he was between a rock and a

hard place. Absolutely, emphasised his weakness. There is always a

danger in doing well if you dismiss your partners. The danger for David

Cameron and George Osborne is that The house will go any in paying

tribute to sapper Elijah bond. He died at the Queen Elizabeth

Hospital in Birmingham last Thursday as a result of wounds he

sustained in Afghanistan. He was a dedicated and professional soldier.

At this tragic time, we send our condolences to his loved ones, his

friends and colleagues. This morning, I had meetings with

ministerial colleagues and others. In addition to my duties in this

house, I shall have further meetings today. Mr Speaker, may I

associate myself and all members of the house with the Prime Minister's

words about sapper Elijah Bond. People will be disappointed that

this week's report into the financial crisis at the Royal Bank

of Scotland contained no provision for the criminal prosecution of the

executives, directors, regulators and ministers for their failures.

Can the Prime Minister assure me that unlike the last government,

his ministers will reinforce financial regulations and not

undermine them like the shadow Chancellor did when in office?

honourable friend is right. He will know that we are looking at

specific extra measures and sanctions in terms of what people

not just a damning report about the board of RBS, it was also a damning

of the politicians responsible for regulating RBS. It did not just

name politicians no longer serving, it also named the Shadow Chancellor.

Ed Miliband! Mr Speaker, can I join the Prime Minister in pay tribute

to Sapper Elijah Bond. He bravely gave his life trying to improve the

lives of others. Our thoughts are with his family and friends. As we

approach Christmas, our thoughts are also with all of our troops

serving bravely and Afghanistan and elsewhere. Many will spend

Christmas away from their families and friends to ensure a peaceful

Christmas for us. We owe them a huge debt of gratitude. Mr Speaker,

in this, the last Prime Minister's Questions of the year, let me

remind the Prime Minister of what he had to say in his new year

message of 2011. He said at "uppermost in my mind as we enter

the new year is jobs. In light of today's unemployment figures, can

he explain what has gone wrong? Firstly, let me join the honourable

gentleman in his fitting tribute to our forces at Christmas time,

serving in Afghanistan and other parts of the world. One of the

things that most strikes you in this job is that they are the best

of the best - brave, dedicated, and the families give up a huge amount

at the same time. About the unemployment figures, any increase

in unemployment is bad news and a tragedy for those involved. That is

why we will do all we can to help people back into work. That is why

we have the work programme to help 2.5 million people, and the massive

increase in apprenticeships that will help 400,000 people and will

particularly help young people through the work-experience places.

We will do all we can to help people back into work. But the

figures show that his economic strategy is failing. The Chancellor

said at the time of the spending review last year"private sector job

creation will far outweigh the reduction in public sector

employment". Will he confirm that over the last three months, for

every job being created in the private sector, 13 are being lost

in the public sector? Let me give him the figures since the election.

Since then, in the private sector, there have been 581,000 extra jobs.

In the public sector, he is right, we have lost 336,000 jobs. So we

need private sector employment to grow faster. But whoever was in

government right now would have to be making reductions in public

spending. The only way you can keep people in work in the public sector

while doing that is to cut welfare, something we are doing and he

opposes, and to freeze public sector pay, something we are doing

and he opposes, and to reform public sector pensions, something

we are doing and he opposes. It is all very well complaining about the

rise in unemployment. If you don't take those steps, you would lose

more jobs in the public sector. whole House will have heard that he

cannot deny that the central economic claim that he made that

the private sector would fill the gap left by the public sector has

not been met. He has broken his promise. Today's figures also

confirm that youth unemployment not only remains over a million, it is

still rising. And long-term youth unemployment has gone up by 93%

since he made his new year pledge on jobs. Isn't the reality that he

is betraying a generation of young people? We will not take lectures

from a party that put up youth unemployment by 40%. Even his

brother admitted the other day that youth unemployment was not a

problem invented by this government. It has been going up since 2004.

Here is what we are doing to help young people get a job. Through the

youth contract, we are providing 160,000 new jobs with private

sector subsidies. With 250,000 work-experience places, half of

those people are getting jobs and off benefit within two months. But

is 20 times more effective than the future jobs fund. But the key to

this is getting our economy moving. We need a private sector jobs. It

is this government that has got interest rates down to 2%. That is

why we have the prospect of growth, whereas his plans are for more

spending, more borrowing, more debt, more of the mess we started with.

The truth is that his promises to young people for next year are as

worthless as the promises he made in 2011. Let's turn from his broken

promise on jobs to his broken promise on the coalition. It is

good to see the deputy prime minister back. This is what he said.

Calm down. This is what he said in his new year message for 2011. I

will place a copy in the library of the house so everyone can

see."coalition politics is not always straightforward, but I

believe we are bringing in a whole new style of government". There is

more."a more collegiate approach". I am bound to ask, what has gone

wrong? I will answer. Look, no one in this house is going to be

surprised that Conservatives and Liberal Democrats do not always

agree about Europe. But he should not believe everything he reads in

the papers. It is not that bad. It is not like we are brothers or

He certainly walked into that one! Mr Speaker... I think our sympathy

is with the Deputy Prime Minister. His partner goes on a business trip,

his left waiting by the phone and he hears nothing until a rambling

phone call at 4am confessing to a terrible mistake. How is he going

to pick up the pieces? How will he picked up the pieces of the bad

deal he delivered for Britain? The council came to conclusions on

Friday morning, but the treaty will not be signed until March. In the

cold light of day,... Order! Some very, very foolish person shouted

out" Bob". The person who did that will stop, because people in this

place must be heard. If there is a member here who does not think so,

I invite that member to leave the chamber. In the cold light of day,

with other countries and in the weeks and months ahead try to see

if they can get a better deal for themselves, isn't the sensible

thing to do to re-enter the negotiations and try and get a

better deal for Britain? For I make no apologies for standing up for

Britain. In the last two days, we have read a lot about my opinions

and the Deputy Prime Minister's opinions. The one thing we don't

know is what the right honourable gentleman would have done. While he

was here on Monday, his aides were running around the press gallery,

briefing them that he would not have signed up to the treaty. What

is your answer? I have no answer on this matter whatsoever for the

benefit of the Prime Minister. I am glad the Minister of State has

returned from his troubles. We wish him a merry Christmas, but in his

case it should be a quiet one. Speaker, there was a better deal

for Britain that he should have got, and that is what the Deputy Prime

Minister himself says. Last week, he made a catastrophic mistake.

This week, we discover unemployment at its highest level for 17 years.

This prime minister thinks he is born to rule. The truth is, he is

not very good at it. Even the soundbite was recycled from a

previous PMQs. On Wednesday, the answer was No. Today, I think the

answer is maybe. This leader of the Labour Party next weakness and

indecision an art form. He was giving me at my end-of-year report.

Let me give him his. He told us at the start of the Year"the fightback

started in Scotland". That went well(!). He told us he had plans to

cut the deficit. We still have not seen them. He said he would stand

up to vested interests, and yet backed the biggest shrike for years.

We all know he has achieved one thing. He has completely united his

party. Each one of them has asked Santa for the same thing - a new

leader for Christmas. Order! Order! I am sure government backbenchers

will want to hear their own college. Mr Martin Vickers. Yesterday's

announcement about local television was good news for my constituency,

where Channel 7, the sole survivor from the original batch, is based.

Does the Prime Minister agree that local broadcasting strengthens

local communities and advances the Big Society? If he is in north

Lincolnshire in the near future, would he find time to pay them a

visit? I would be delighted to do that. I have no immediate plans to

visit North Lincolnshire, but I support local television and North

Lincolnshire had some good news with the plant going into Hull.

David Blunkett. In the early new year, the Government intended to

announce a wholesale revision of the national curriculum. Can I put

it to the Prime Minister that it would be perverse to be requiring

those coming from abroad to settle in Britain, to learn about our

democracy, to take citizenship courses, whilst we are drawing them

for the teaching of citizenship and democracy to our own children in

our own schools? I will listen to what the right honourable gentleman

says, because I agree with some of the proposals he put forward when

Home Secretary about citizenship. Many in this house will have been

to the citizenship ceremonies he was responsible for. It has been a

good addition to our country and our democracy. I pay tribute to him

for that. We will look at what he says about the curriculum, but the

aim is to make sure we teach the basics properly and well, and we

test on them. If you can't read and write properly, no lessons in

91% of people who get into financial difficulty believe they

would have avoided doing so had they been better informed. Ahead of

tomorrow's debate on financial education, would the Prime

Minister's support our calls for compulsory education for young

people? It very much links in with the last question. I strongly

support teaching young children about the importance of financial

education, but the point of having a proper review of the curriculum

is to make sure what is absolutely essential and call, and what can be

included as extra lessons. Unemployment is going up, and

living standards are being squeezed. Many more people are being forced

into the hand of the pay-day lenders and the debt management

companies. Will the Prime Minister act to protect ordinary people who

are being preyed on and ripped off? The honourable lady speaks with

great experience because she worked for Citizens Advice Bureau before

coming to this house, and stands up for Citizens Advice Bureau and his

right to do so. All of us know what a brilliant job they do. The last

government wrestled with this question about how you best

regulate doorstep lenders and other lenders. The danger of driving

people into the loan sharks, if you get rid of the regulated sector. I

am very happy to discuss this further with interested colleagues,

it is a very difficult subject to get right but this government is

working at it. Does the Prime Minister share my concern over the

impact of pocket-money price alcohol on the state of our

nation's health, the anti-social behaviour in town centres and the

damage it does to community pubs. think the honourable gentleman

makes an important point. There is no doubt in my mind that the very

low cost alcohol is part of the problem in our town centres. One of

the answers the government has already come up with is to ban a

deeply discounted selling of alcohol, but we need to look at the

broader question of low-cost Al Gore. I note the letter that is in

the papers this morning from a whole set of people with great

expertise about this, and we are looking very carefully at that

issue. This morning we learned that Teesside Airport is up for sale,

and it seems as though, as unemployment is skyrocketing in the

north-east, our planes may be grounded. Isn't this yet further

evidence that the loss of infrastructure and jobs in the

North East, that this government's economic plan is a catastrophic

failure? The key thing about the future of Durham TVs airport, which

is a vital airport, is not necessarily so who owns it but is

it being invested in, is it being expanded and working well. That is

the key question and the question that I know at the Transport

Has the Prime Minister seen the OECD and the National Institute of

Economic and Social Research findings this week, showing that

soaring immigration was not caused by the prospect of prosperity, but

just by the open door policies of the last government? And will he

stop it happening again? honourable lady is absolutely right.

The report said specifically, the increase in net immigration to the

UK was not driven primarily by the economic performance of the UK, or

other countries, instead it points to other policies. The answer is to

deal with the bogus colleges, and we are doing that. To put a limit

on economic migration outside the EU and to have proper border

controls, and we are doing that as well. The Autumn Statement saw

400,000 Scottish children lose over �40 million due to changes in the

tax system. In my constituency, that meant �600,000 taken from

children. Why is the Prime Minister taking money out of children's

pockets, while being in the pockets of the bankers? I am afraid to say

to the honourable gentleman, he is plain wrong. The child tax credit

is going up by �135. He talks about the bankers, this government has

put in place a bank levy that is going to raise more every year than

Labour's one of bonus tax raised in As a York MP, I am extremely proud

of our City's vibrant tourism sector. Does my right honourable

friend agree that tourism plays a key role in our local economies,

and will he ensure that Northern tourist attractions in particular

are promoted in the run-up to the Olympic Games? My honourable friend

makes a very important point. Millions of people will come to

this country to the Olympic Games, we need to encourage them not just

to go to the Olympic Games but visit other parts of the country

and return to Britain for his subsequent visit. There will be all

sorts of promotions and schemes that we will be running to

encourage just that. If we can encourage people more generally to

visit places other than London, and York as many great tourist

attractions and things of historical importance, we would

drive a huge amount of growth and grub -- growth and jobs in our

regions. On 16th December, Bangladesh will markets 40 is

anniversary as an independent nation, following a war that cost 3

million lives. I want to pay tribute to the contribution made by

this parliament in supporting the fight for self-determination. As

the second most vulnerable country to climate change, does the Prime

Minister agree with me that it is now more important than ever before

to support developing countries from the devastating effects of

climate change. I agree with the honourable lady and I think the

whole how should recognise what she has done in raising this issue at

the time, as Bangladesh approaches this important anniversary. Britain

can be proud of the back that we have very good relations with

Bangladesh, and our aid programme in Bangladesh is one of the leading

ones from anywhere in the world into that country. We are spending

specific money on helping them with climate change, meeting all the

promises we have. I met with the Prime Minister of Bangladesh. One

of the issues we have to raise, there are human rights issues in

Bangladesh and we shouldn't be scared of raising them in the

proper way. An EU wide agreement on prisoner transfers comes into force

this month, which will enable the UK to repatriate to jails in their

own country, any EU nationals imprisoned here. Given some 13% of

our prison population is made up of foreign nationals, will the Prime

Minister ensure that our EU partners stick to these new rules

and take their criminals back? my honourable friend and his strong

views asking a question about a successful EU skin, it merely --

really must be Christmas. He is absolutely right. We have 13% of

our prison space is taken by foreign nationals. This is hugely

expensive and this EU wide agreement gives us great

opportunity to return people to their national prisons and save

money at the same time. Is freezing the pay of young private and

corporals, while they are fighting in Afghanistan, without reference

to the armed forces Pay Review Body, a breach of the military covenant?

It is this government which doubled the operational allowance, which I

think is the best way to get money to the privates and the corporals

in Afghanistan, who are doing such a good job. The operational Lowndes,

being a flat cash amount of money, is of disproportionate benefit to

relatively low-paid people in the armed forces -- operational

allowance. The percentage increase would mean more money for the

colonels and generals and brigadiers, rather than for the

people on the front line. Looking at the operation allowance is

crucial, but this government has an just done that, we have extended

the pupil premium to force his children, we have increased the

council tax rebates for those who are serving, and for the first time,

we have written the military government into the law of our land.

I commend my right honourable friend for protecting our national

interest by exercising the be towed, the people of Dudley South thank

him for it. The deal he vetoed commits eurozone members to

struggle deficits of below half a per cent of GDP. But the planners

to appreciate this is 16 times the UK struggled deficit left by the

party opposite? My honourable friend makes a good point, which is

perhaps why the leader of the Labour Party is struggling so much

to tell us what his view is about this proposed treaty. On the one

hand, he wants to join the euro, if he is Prime Minister for long

enough but but but that's rubbish? He doesn't want to be prime

minister for long enough. Oh, right. He wants to join the euro, he wants

a deal with very tough budget deficit limits, and he wants to

increase spending, borrowing and debt. He tells us he has got a five

point plan. I can sum it up in five words. Let's bankrupt Britain again.

Perhaps the Prime Minister could tell us why the Deputy Prime

Minister did not support his position on Europe on Monday, and

why not one single and a Democrat MP voted with the Prime Minister

last night. -- not one single Liberal Democrat MP. Last night,

there was something of a parliamentary rarity, a motion put

down by an opposition party, praising the Prime Minister. I am

very grateful to colleagues in the Democratic Unionists. I suspect

that many people concluded that Labour simply wouldn't get their

act together, it wasn't worth voting and as a result, we won very

easily. I am sure the whole house will join me in thanking a

remarkable man, who has served this country and this place with courage

and distinction, for nearly 50 years. Eddie Mackay, who is in the

gallery right now, has been a doorkeeper here for 23 years and

retires on Tuesday. Before coming to this place, he served with

distinction with the Scots Guards, leaving after 23 years' service as

a senior Warrant Officer. The Household Division, you're not

promoted to drill sergeant unless you are exceptional. On a

tumbledown mountain he saw action during the Falklands War in 1982.

His company, 2nd Battalion Scots Guards, led that successful and

audacious night assault. Can I ask the Prime Minister, on behalf of us

all, to wish drill sergeant Andy Mackay a happy retirement and a

happy Christmas. On behalf of the whole house, can I thank the

honourable gentleman for raising this issue and question, and thank

anti for his incredible service. I sometimes think in this house we

can take for granted, the people who work so hard to keep it working,

keep it going, and I sometimes wonder what they think of the

antics we get up to in this house, but we are incredibly grateful of

the service he gave to our nation, to come here and work so hard for

so many years. We are all in his debt and sent him good wishes for

his retirement. The publication of youth unemployment figures this

morning show that in the last quarter, 22% of 16 to 24-year-old

economically active citizens are unemployed. An increase of 1.2% on

the previous quarter. The Prime Minister's rant earlier today at

Question Time about what this government is doing for youth

unemployment in this country, could he tell us why it is increasing?

Every increase is unacceptable and I will tell you exactly why. In

terms of 16 to 18-year-old Young unemployment -- young people, that

is going down. The problem is people over 18, under 24, who are

finding the job market extremely difficult. The reason on it when it

is going up is because we are losing jobs in the public sector

and we are not growing them fast enough in the private sector. We

need to do everything we can to get our economy moving. The absolute

key to that is keeping interest rates low. We have interest rates

down at 2%, and if we followed his party's policy of extra spending,

borrowing, debt, interest rates would go up, more businesses would

go under and we wouldn't get our economy moving. Many members of

this House will have encountered examples of banks using the threat

of receivership to extract higher interest rates from its business

customers. Does the Prime Minister agree it is wrong for banks to use

what is effectively an extortion but -- extortion at bargaining

position, and what he agreed to meet with me to examine procedures

I have outlined? I am happy to meet with my honourable friend about

this issue. It is not only vital that we get banks lending properly

and to small businesses, but that we made sure they behave in a

proper and ethical way as they do so. We are addressing the first

issue through the National Loan Guarantee Scheme and the other

credit easing measures that the Chancellor set out in the Autumn

Statement, but we also need to make sure that the practices that the

banks followed are fair, and seen to be fair. They have an interest

in making sure that small businesses are in good health, and

they need to follow procedures to make sure that happens. Youth

unemployment in Dumfries and Galloway has risen by 65% over the

last 12 months. With the British Retail Consortium indicating that

one in three jobs are filled by under 25s, does he recognise that

the predicted squeeze on the retail sector will only increase the

chances of youth unemployment, increasing across the entire

country? The thing that will put the biggest squeeze sector is if

interest rates went up. Just one percentage point increase in

interest rates would see the typical family lose �1,000 a year

through extra mortgage payments. Everybody knows we are in a

difficult economic situation, and we have to take difficult decisions,

as there is effectively a freeze across the eurozone. The most

important thing is to keep interest rates low, so people have money in

their pockets and we can see good retail recovery. East Cheshire

Hospice and many other hospices across the country run Christmas-

tree collection services that help many families recycle their

Christmas trees in an environmentally sensitive way. Can

the Prime Minister join me in supporting the great work that

these charities do, in collecting these trees, to raise hundreds of

thousands of pounds for the important work of art was this is?

I certainly join my honourable friend. -- of our hospices. I

praise him -- join him in praising the important work that hospices do.

They have to be ingenious about how they raise money up and down the

country, and collecting and recycling Christmas trees so that

we don't just leave them outside the house, I think is an excellent

idea and I am sure the whole house want to praise meet in the work --

join me in praising the work that Will he give us a publication date

for a consultation paper, leading to legislation, or he could take on

my ten-minute rule, which is already published. I am a generous

sort of bloke, he can have it now, and get it on the statute book.

am a generous sort of bloke, too. I can tell them that the lobbying

proposals will be published within the next month. This government

will have moved faster in 18 months than the last government did in 13

The Prime Minister will have seen the news this morning of the study

in the excess deaths of people with diabetes, unnecessary deaths it

that condition is treating -- treated properly. The framework

comes to an end in 2013. Will the Prime Minister look at the

frameworks as a way of meeting the challenges that there will be on

the health service budget, and helping people with diabetes in the

future? I am very happy to look at the national service frameworks, as

he says. I think the key issue with diabetes is that we need to raise

the profile of this condition, because many people have it and

don't know they have it. The key thing, as well, is to look at the

public health issues. The explosion in diabetes is coming partly from

bad diet and obesity in childhood, and we need to address those issues,

otherwise we are always going to be dealing with the disease, rather

than trying to look for the prevention. It is always a delight

to listen to my colleagues, so we will have a little more. Thank you

very much. Earlier this week, in the Other Place, the coalition

government voted down a proposal to protect the benefits of disabled

children, by a majority of two. Can I ask the Prime Minister that by

reducing benefits for disabled children by ever �1,300 a year, is

something that identifies his often repeated mantra that we are all in

this together? We are not cutting benefits to disabled children.

Actually, we are upgrading, operating by 5.2%, all of those

benefits so that people will see an increase in the benefits that they

receive next year. Last, but never forgotten, Mr Brian Binley.

Speaker, the Prime Minister will be aware that capacity levels on the

West Coast Main Line are intolerable, and getting worse.

Does he share the concerns of rail users that delays to High Speed 2

will only make their journeys more unpleasant. And will be provide the

assurance they seek about the future he promised them? I am

grateful to my honourable friend for raising this question. The

country has a choice, because the West Coast Main Line is as

congested as it is, we need either to replace it with a traditional

line, or a high-speed line. It is well known, the government's view

is that a high-speed line is the right answer. That is why this

consultation has been conducted, and I think it is not just good for

people who want to use the West Coast Main Line, but it will be a

success for regional policy in linking up our cities, shrinking

the size of our country and making sure all parts of our country can

enjoy economic prosperity and That is the final Prime Minister's

Questions of 2011. An historic event. There will be no more until

20th January 12. The leader of the opposition did go on unemployment

to begin with, as we predicted. Comfortable territory for him, but

when he moved on to Europe, as we also predicted, the going got more

rough. Indeed, most of you, from your e-mails and tweets, seemed to

think it was game, set and match for Mr Cameron. Some thought Mr

Miliband had done well, but the overwhelming view was but it was

not Mr Miliband's finest day, and therefore he has ended the year on

a low note. Nigel Farage, the leader of UKIP, tweeted while this

was going on, and said why the EU is crumbling, today we are voting

in the European Parliament on the sugar content in orange juice. It

is good to know the important things in life are still being

looked after in Strasbourg. I was day yesterday. What do our viewers

make of it? You are right. The reflection was

that it was a poor performance from Ed Miliband. He did not do well in

general according to you, the viewer. Gareth says Miliband sounds

out of his depth and out of touch with the sentiment of the country.

Colin in rugby - I find the position taken by a Ed Miliband and

Labour about the economy, unemployment and Europe staggering

and the reason why they are behind in the opinion polls. John in Essex

- oh, dear, poor Ed Miliband. No matter how well his script is

written, he does not have the skills to deliver it. But Joe says

of the com -- of the negotiations, if Cameron really cared, he would

still be at the top table in Brussels where he could be positive

business for Britain. There were a lot of e-mails about unemployment.

Diane said Cameron can't spin his way out of the figures on

unemployment. It is going up and his designating millions to the

scrapheap without pity. A few statistics will not hide that.

Robert in Oxford said when it comes to the economy, couldn't all

politicians admit there is little governments can do? And then on the

Speaker, Damian said, can someone please tell him that the public do

not like his interruptions? It is not good for democracy and the

public cannot hear a word that is being said. This is Prime

Minister's Questions and not speaker's interruptions.

I am sure the Speaker will take notice of that e-mail from a member

of the great British public. What is the impact on the Labour

backbenchers when the leader performs sub-standard? The feeling

on the back bench at the moment is that we are united about wanting to

get things going in this country and get people back to work.

Whether it is today or on other occasions, David Cameron always

refuses to answer questions about if the economic policies are going

so well and the deficit reduction is working, why aren't we seeing

people going back into work? I take your point on the substance of that,

but Prime Minister's Questions is a theatrical event. People can take

their own views on how important it is in the grand scheme of things.

But when Conservatives were in opposition, if their leaders did

badly, it affected morale and that percolated through the party itself,

not just for the few minutes which we cover live. Is that a problem

for Labour? Ed Miliband's job is to ask the questions that reflect

concerns in the country. That is what our backbenchers want to see.

Why do people think he did so badly? Some people have suggested

that. Most of them. We believe it is his job to keep asking the

questions. From one week to the next, David Cameron refuses to

answer. Beyond the theatricals of Westminster, it is about what is

really happening out there. People are worried about job security,

their kids and the cost of living. If everything is going so well for

the Government, and there has been a hit in the polls over this EU

matter, but it is about the medium and long-term about the prospects.

Is there a lesson for Labour, though, on this hit in the polls

over Europe? Is there a lesson for your own popularity, that you

should not be seen to be too pro- Europe? Are we have always thought

our relationship with Europe should be a proper -- pragmatic one. It is

not about popularity. Where does the summit leave us outside the

negotiating table and in terms of the big issues around the Eurozone?

I was asking about the impact on the Labour Party. There are a lot

of questions left to be answered about how the European Union will

work to get people back to work. And we walked away from that

discussion with this Prime Minister. Prime Minister's Questions, which

are a bit of an acquired taste for the aficionados to watch it, but it

is also important. It is hugely important. I said before that

politics is a team sport. When you are in opposition, you can't do

anything. You can only say things. And if your team captain seems not

to be performing, if the results are not good and the only results

you have got our opinion polls, changeable although they are and

not the real thing, of course heads drop and morale goes down. That

matters in opposition because when you are not getting paid extra to

do it, when you are not getting the rewards of doing things, of course

team morale matters. I did think it was one of those moments where you

want to say ouch. You really thought he was taking a pasting.

Not on the substance. But there were three or four questions on

unemployment. He was making a substantial point. A lot of viewers

would have been saying, quite right. Conservative ministers did say

private sector job creation would outweigh public sector cuts. There

was no answer on that. But on Europe, he said nothing of any

substance. He chose instead to effectively dragged out the

coalition's expense, and it was turned back on him in a pretty

devastating way. These things are not the big substance of politics,

but they are very corrosive before a holiday. That sounds odd, but

people go away feeling a bit low, and then they call their friends

and say, it is not going well. That makes it harder for Ed Miliband. We

used to talk about mid-term blues, and at the moment, that is how it

is. Grant Shapps, maybe you should enjoy it while it lasts, because it

might not last long. Most private sector forecasts think we will be

back in recession next year. Unemployment will continue to rise.

Growth will be elusive. Living standards will continue to be

squeezed, and those on below- average incomes will suffer more

than ever. It is not a great prospectus for the Government.

are not living in a great world. As Nick has just said, you would not

want any of this and you would not to be -- want to be in a position

where your export markets are in turmoil over the Eurozone. You

would not want to be here. I am cautious about some of those

projections in as much as we would not have thought at the beginning

of the year that things would have been like this at the end. I would

not want to project forward the next year and talk ourselves into a

recession but accept that it is likely to be tough for the

Government. But you have to show leadership. Cameron has scored here

because he has shown leadership on the economy and in Europe. With 13

years of being in opposition... are you showing leadership? We are

not being forced by the Eurozone to cut budgets, as is happening in

Italy, Greece, Spain and many other countries. We did it on our own

terms. You got nothing from Europe. If you are not saying what you

would do on the economy... We have. If you don't do those things, you

do not get confidence. You are borrowing more. But people agree

that this is because the world is experiencing a huge slow down.

our domestic situation is worse than our export situation, isn't

it? You need a plan of your own. have. We have to stop you there.

More spending and more borrowing. Getting people into work. You are

borrowing more. She is still going on. It is true!

In the words of Homer Simpson, give me your thought for the year.

last thought on that. If you are the Government, you will go away

for Christmas feeling pretty chirpy about the polls and the politics,

but here is a potential danger. Nick Clegg told his party yesterday,

I am not going to produce an election and bring this coalition

down, because I might be the last Lib Dem leader ever in government.

There is a danger of being so dominant in politics that you

humiliate people who sit around your Cabinet table. If, and it is a

big if, because the truth is that the relationship between Cameron

and Clegg is still strong and they did agree on the negotiating

position, I know for a fact, before that summit. But if Nick Clegg

fails, I have to be here because otherwise I will be destroyed, if

his party feels more and more humiliated, that has dangers for a

government because as Geoffrey Howe found, and if you have seen the new

film about the Iron Lady, Margaret Thatcher, you see the eyes of the

men around the Cabinet table feeling daily more humiliated, and

boy, they get you back eventually. It is not dull, is it? My reel for

the 2012 is, keep watching. Has politics be in this interesting for

a long time? Merry Christmas and happy Hogmanay. Your present is in

the Azerbaijan post. Taxes have been hiked across the

board in response to the financial crisis, but have we reached the

point where they are now so high that they are harming growth? One

of the most controversial changes recently was an increase in the top

rate of income tax to 50 pence in the pound. Introduced by Labour,

kept by the coalition, it is not popular among the highest earners.

One of those is Charlie Mullins, owner of his own business and

probably Britain's richest plumber. He explains why the 50 pence rate

should go. Nobody likes it. We would all

rather see a lot less of it, but if we want to live in a society that

is fair and not just looking after the fittest that survive, we really

all need to pay taxes. The more economic growth we create, the

richer we become, but that does not necessarily mean that we have to

tax people more, especially in if it is a disincentive to create

wealth. At the end of the day, we paid enough tax as it is, and at

the moment it is 50 pence in the pound. I believe it is a bad tax.

If entrepreneurs were to go abroad and take with them their spanners,

not only would we stop paying taxes, but thousands of jobs would follow

and the country would sink. The tax burden at the moment is excessive.

By the time you add national insurance to the 50 pence tax rate

I have already paying, it is well into the summer before I am working

for myself rather than paying taxes. So, how am I going to relocate my

business to India or Bangladesh? We all know the answer to that - of

course not. But I get a feeling many people may, or maybe they will

pack it all in. I have worked hard and done well. I don't need to

carry on working to live well. Of course, if you tax a man nothing,

we can't pay for schools, hospitals, rubbish collection. But if you

attacked a man too much, there will come a point where he will say

enough is enough and chuck down his tools. With this 50 pence tax rate,

we are close to the tipping point, and that is why I believe the

Chancellor should ignore his coalition partners, listened to us

entrepreneurs and flush it down the Very appropriate ending, of course.

It is a busy time of year for plumbers but Charlie Mullins is

here. What tax rate do you think would be fair? Anything less than

the 50p one. We need an incentive, rather than being penalised. If we

brought it down to... 40 it? come on. The -- 48? How much lower

would you like to see it? 40p, maybe. You said yourself, that you

would not relocate. Do think it is that much of a disincentive?

course it is. You can't be penalising people that are

successful. You need to encourage them, give them incentives. I don't

particularly need to work any more, but I am sure that other people

that may need to work will continue to work, or even packet all in.

have a government minister here, when are you going to scrap the 50p

tax rate? I don't think there is any point in the tax rate if it

doesn't collect more money than not having it there. What is the

estimate? 2.7 5 billion? The Chancellor is doing some work on

that and we will look at it. There is an important message. In a time

when we are in economic difficulty and people are being asked to

contribute more, there is an order of sequence. I don't think it would

be right to go abolishing that tax rate whilst people at the bottom of

the pile pay more. We have to tackle this at both ends. 1 million

people are being taken out of tax at the bottom, with the bottom tax

rate rising higher and higher. First of the day, I am inclined to

agree, there is no point having a tax rate that is punitive and when

you are paying over half your increased -- income in tax, that

may be the case. There are lots of tax is I don't like, this is one of

them, but I wouldn't support getting rid of its it tomorrow.

think you are going around in circles. If you do that, how do you

know you're not going to collect more money if people are doing the

work? That is an important point and the Chancellor is looking at it.

It is fair enough to have a review, we have said the OBR should do a

review on this. 2.4 billion a year comes in from this, that is not

insignificant. We would say, if you are going to give a tax break, to a

temporary one on the VAT. You benefit from that, everybody

benefits from that. The last time we did that, it's got the economy

going again. Charlie's point is Is why an independent review is

important. The last time we reduced the VAT for a temporary period, it

had an impact. People started spending and we went out of

precision, back into a growth recession -- position and that is

what we are asking for. That is great, but we are talking about the

50p tax. You have got to think about other people also. At the

moment, that is a burden for people like us. Have you taken on people

recently? Yeah. We are trying to expand. It is not stopping your

business, is it? No, but what is the point of working... There is

for a cervical point. Should the state be taking away over half? --

there is a bizarre vocal point. -- a philosophical point. Danny

Alexander said it was cloud cuckoo land. I totally disagree with you.

I had worked that out myself. Five- year Italian bond yields have hit a

record high and this crisis is not over. I think time for a seasonal

spirit full but it seems to have crept into The Daily Politics

office this week, against all of my clear demand and instructions. A

foot high Christmas-tree has been spotted on one of our producers

desks, I will bring that down. They must be excited about the upcoming

Christmas lunch and karaoke party. Jo likes the karaoke! It is self-

funding, in case you want to tweet and say we are spending your

licence fee on this. We have already spent it, there is nothing

left. If our Christmas giveaway is not enough to get you into the

seasonal spirit, Adam has taken a look at how Westminster has been

gearing up for this season of Christmas is coming to Parliament,

our MPs are getting fat. In reality, it hasn't snowed, and in the

Commons, there is a deficit of Christmas spirit. In the members'

tea room, a week ago, they had a lot of Christmas decorations up,

they had paper Christmas napkins out, and a lot of those have

disappeared. Whether this is because the management decided that

it was the wrong image, or whether as one of my more cynical

colleagues thought, that some MPs had decided when everybody had gone

to borrow them. Some are getting into the festive mood, like George

Osborne, having actual fund with his sworn enemy, Santa. Well, Ed

Balls dressed as Santa for a kids' party. It is all about belittle and

Swanwick comes to the leaders Christmas cards our as it is all

about the little ones when it comes to the leaders Christmas cards.

There are only 11 shopping days to Christmas but that does not worry

MPs and peers, because they have got their own good shop. The queue

will be out the door by the end of the week. I am told that the

bestseller is chocolates, closely followed by, surprise surprise,

bruise. -- boos. I also managed to pick up a house of Lords baby grow.

But there are a few Scrooges around. The Christmas box in the members'

tea room comes out, with a great deal of perhaps on subtlety by the

staff, who worked very hard to look We have embarrassing scenes as

colleagues are queuing up to get their meals, of what somebody calls

the soft trouble, and people say, I would love to put �5 in but I don't

have money at present our as the People you can rely on for genuine

Christmas people, the parliamentary choir. Sadly, I missed their

concert, so what after back as I will have to make do with their

podcast instead. -- so I will have to make do with their podcast

instead. He is like that most of the time.

Who better to talk about all things Christmas than the Lib Dem MP in

our By Rick -- and party conference favourite, Don Foster. Since you

have been bemoaning the fact you have not got a Christmas tree, a

present for you. It is a real one. I thought Caroline was going to

nick it! I have heard the rumours that your Christmas ukulele single

isn't going ahead? It is staggering, every year I send out a spoof press

raised about something daft, as a way of inviting local journalists

and councillors to drinks. So many paper -- people fail to read to the

bottom line and realise that it is a spiv, that they got all sorts of

coverage, that we had to report it was not true. I am told that Little

Mix took a contract out on you in case they got knocked off the

Christmas number one spot! There is real concern! Are referred to Chris

Pringle from ukelele maestro magazine, it should have given the

clear -- I referred to pull up I Quote about the get that keeps on

giving, to suggest that you give as a gift, membership to the Labour

Party. That's very nice. How many gift memberships are you going to

give this year? I am always actively looking to encourage

people to join the Labour Party. I have to say, that's for life, not

just for Christmas. I will take that, it is only 15 quid, you can't

buy life for 15 quid? Not bad, a good deal. Is it going to be an

austerity Christmas, or a goose as fat as ever? Our Christmas

tradition is going to feed some elderly people lunches in Welwyn

Garden City, for anyone who is watching. I will be there! Did you

bring your ukulele with you? didn't, very deliberately, because

I would have had to play it and you would have been very upset. We have

only got a few seconds, there is a Christmas decoration thief loose in

Westminster, haven't you seen it? No, I have one in my office, I am

worried about this. I am going to give you the answer to the guess

the year competition, it was 1987. You could probably tell by the

terrible music. We are knocking down Christmas trees to print out