27/06/2016 House of Commons


27/06/2016

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The member for tooting. Thank you very much.

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Order. Statement, the Prime Minister. Thank you, Mr Speaker. Web

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promotion I would like to make a statement on the result of the EU

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referendum. Last week saw one of the biggest democratic exercises in our

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history, with over 33 million people from England, Scotland, Northern

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Ireland, England, and Gibraltar having their say. We should be proud

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is right that we do not just leave is right that we do not just leave

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it to politicians but listen directly to the people. That is why

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people voted for a referendum with a margin of 6-1. Let me welcome the

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new member to her place. I would advise her to keep her mobile phone

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on as she may be in the Shadow Cabinet by the end of the day.

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I thought I was having a bad day. Let me set out for the House what

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this book means, the steps we are taking to stabilise the UK economy,

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the preparatory work for negotiation to leave the EU, our plans were in

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gauging with the devolved administrations, and our next step

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tomorrow's European Council. The British people had voted to leave

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the European Union. It was not the result that I wanted or the outcome

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that I think is best, but there can be no doubt about the result. I do

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not take back what I said about the risks, it will be difficult and I

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will be adjustments within the economy, complex constitutional

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issues, and challenging renegotiation. I am clear that the

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decision must be accepted and the process of implementing it in the

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best possible wave must now begin. At the same time, we have a

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fundamental responsibility to bring our country together. We have seen

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community Centre, verbal abuse community Centre, verbal abuse

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against individuals because they come from ethnic minorities. These

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people have come here and contributed to our country. We will

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not stand for hate crime or these attacks, they must be stamped out.

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We can reassure European citizens living here and British people in

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European countries that there will be no immediate changes in the

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circumstances. There will not be any change in the way our people travel,

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in the way our bits move, or the way our services are sold. The deal

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renegotiated at the European Council in February will be discarded and a

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new negotiation to leave the EU will begin under a new Prime Minister.

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companies are considering their companies are considering their

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investments and we know this will not be plain sailing. We should take

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confidence from the fact that Britain is ready to confront what

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the future holds from a position of strength. As a result of our

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long-term plan, we have one of the strongest economies in the world. We

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are well placed to face the challenges ahead. We have no, stable

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inflation, the employment rate remains the highest it has ever

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been, the budget deficit is over 11% of national income to be less then

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3% this year is forecast. The financial system is more resilient

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than it was six years ago, with capital requirements now ten times

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higher than before the banking crisis. -- banking crisis. The

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market may not have expected the result, but the Treasury and Bank of

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England and other financial authorities have spent the last

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month putting contingency plans in place. As a governor of the Bank of

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England said on Friday, stress test showed that UK institutions have

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enough capital liquidity to enough capital liquidity to

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withstand this scenario more severe than the one the country faces. The

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bank will make available to London ?50 billion is to support banks and

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markets. In the coming days, the Treasury, the Bank of England, and

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the financial authorities will continue to be in contact and they

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have contingency plans in place and they will not hesitate to take

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further measures if required. In terms of negotiating our exit from

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the EU, the Cabinet met this morning and agreed to make a new EU unit in

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Whitehall. This will bring up together -- this will bring together

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various expertise. It is the most complex and important past that the

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British civil service has undertaken in decades. It will sit at the heart

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of Government and it will be staffed with the best from across our civil

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service. It will report to the Cabinet on the outcome of the

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referendum and will advise on transitional options and will

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discuss our future relationships from outside the European Union. It

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will be responsible for making sure the Prime Minister has the best

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advice. I know that colleagues on all sides of the House will want to

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contribute to how we prepare and execute the new negotiation to leave

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the European Union. All views and representations will be listened to

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exercise. He will play no part in exercise. He will play no part in

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the leadership election. We must ensure that the interests of all

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parts of our United Kingdom are protected and advance. As he

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prepared for a new negotiation with the European Union we will involve

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the Scottish, Welsh, Northern Ireland governments. We will also

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consult Gibraltar, the overseas territories and all regional centres

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of power, including the London assembly. I have spoken to the first

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ministers of Scotland and Wales and the first and Deputy first from

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Northern Ireland. We will be working intensively together in the coming

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weeks to bring our devolved administrations into the process for

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determining the decisions that need to be taken. While all these

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decisions will have to wait for the arrival of the new Prime Minister,

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there is work that can be started now. The British and Irish

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governments will start to meet this week to work to the challenges

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related to the common border area. Tomorrow I will attend the European

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Council. I've spoken to Angela Merkel, President Holland and a

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number of other leaders. We discussed the need to prepare for

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negotiations and the fact that the British Government will not be

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triggering Article 50 at this stage. Before we do that we will determine

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the kind of relationship that the one with the EU and that is

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something for the next Prime Minister and the Cabinet to decide.

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presidents of the European Council presidents of the European Council

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it clear again tomorrow. This is our it clear again tomorrow. This is our

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sovereign decision and it will be for Britain to take it. Tomorrow is

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also an opportunity to make the point that Britain is leading the

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European Union but we will not turn our back on Europe or the rest of

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the world. The nature of the relationship that we secured with

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the EU will be determined by the next Government, but I think

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everyone is agreed that we want the strongest possible economic links

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with our European neighbours as well as with our friends in North

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America, the Commonwealth, and India and China. I'm also sure that

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whatever the precise nature of our relationship we will want to

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continue with a great deal of our extensive security cooperation and

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to do everything we can to influence decisions that will affect the

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prosperity and safety of here at home. This negotiation will require

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strong, determined and committed leadership and as I have said I

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think the country requires a new Prime Minister and Cabinet to take

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it in this direction. I have not taken this decision lightly but I am

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convinced it is then the national interest. Believing he was not be

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passed directly men did, I praise our strength is the country. As they

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proceed with implementing this decision and facing the challenges

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it will bring, I believe we should help fast in a vision of Britain

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wants to be respected abroad, tolerate at home, engaged in the

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world and working with our international partners to advance

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this security and prosperity of our nation for generations to come. I

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have thought for those every day of my political life and I will

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continue doing so. I commend this statement to the House. Jeremy

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Corbyn. Thank you Mr Speaker. Firstly I would like to thank the

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British people for turning out to vote in the referendum in such high

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numbers. The vote was a reflection of the significance of the issue. It

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was a close vote on the back of a campaign that was too often divisive

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and negative. These benches put forward a positive case to remain

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part of the European Union and convinced more than two thirds of

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our own supporters. The majority of people had voted to leave and we

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have listened to and accepted what they have said. Many people feel

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disenfranchised and panellist. Especially in parts of the country

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that have been left behind for too long. Communities that have been let

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down, not by the European Union but by Tory governments. Those

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communities do not trust politicians to deliver because for too long they

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have not. In this bed of more extreme cuts to local services,

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which have hit the area is the hardest, this Government needs to

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invest in bills communities. Many of those areas are very concerned,

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deeply concerned about the security pledge to EU funding. Can the Prime

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Minister give us any guarantees on those issues is that money is

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desperately needed? Secondly, there is an issue of trust. The terror of

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the referendum campaign was disheartening as half truths were

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told. Many leave figures spent the weekend distancing themselves from

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these, not least the boat to leave would hand the NHS an extra ?350

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million every week. It is shameful that politicians make claims they

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knew to be false and promises they knew could not be delivered. Badly,

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real concern exists about immigration but too much of the

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discussion in the referendum campaign was divisive. -- Burghley.

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In the days following the result, it appears there was a rise in racist

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incidents, such as the attack on the Polish Centre in Hammersmith which

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the Prime Minister referred to and many other incidents across the

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country. I hope the Prime Minister and Home Secretary will take all the

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action that they can to halt these attacks, to halt the racist

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behaviour on the streets of the country. As political leaders, we

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have a duty to keep our language and tone calm, especially at the events

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of ten days ago. The country is divided and it will thank me those

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in front of me or those behind for indulging in internal movements

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within their parties at this time. Mr Speaker, we have... Mr Speaker,

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we have serious matters to discuss in this House and in the country. I

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want to accommodate as many as possible of those colleagues who

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want to question the Prime Minister. People will be -- things will just

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be flowed down if people keep interrupting. It appears that

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neither wing of the Tory Government has an exit plan, which is why we

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are insisting that the Labour Party be fully engaged in the negotiations

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that lie ahead. We need the freedom to shape our economy for the future

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and to protect social and employment and to protect social and employment

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on trade, migration, environmental on trade, migration, environmental

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understand the Prime Minister is understand the Prime Minister is

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standing down in three months, but we cannot be paralysed until then.

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The Prime ministers meet in the European Council tomorrow and I hope

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he is meeting the European Council tomorrow and I hope he's going to

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say that negotiations will begin so we know what is happening rather

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than being delayed until October. We have a duty to act in the national

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interest is the House and to make sure we get the best agreements for

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our constituents. Will the Prime Minister confirmed that in the light

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Chancellor will announce a Chancellor will announce a

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suspension, worried termination, of his even more counter-productive

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fiscal rule? The economy needs a clear plan for investment,

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particularly in the communities that have been damaged by this Government

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and has said such a strong message to us last week. Will he

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specifically rule out tax rises or further cuts to public services that

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were threatened in the pre-referendum period? I welcome his

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assurances on the uncertainty felt by many European nationals working

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in our economy, including the 52,000 who worked so well and help our

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National Health Service to provide the service we need. It is welcome

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that the Prime Minister is consulting with the devolved

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administrations and I hope that the Mayor of London, a city from which

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the implications are huge. We must act in the public interest and

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support measures to reduce volatility. I welcome market

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protections, but what about protection for people's jobs, wages

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and pensions? Can the Prime Minister may clear plans in place. The

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Chancellor 's book this morning to reassure the stock markets, although

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they remain uncertain. -- the Chancellor spoke. We understand some

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measures cannot be discussed in the House, but can you give this

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And, may I say, Mr Speaker that I have many fundamental disagreements

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with the policies of the poor Mr and his Government. Nevertheless, as he

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announces the end of his Premiership, it is right to reflect

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that he led a Government that delivered equal marriage against the

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majority of his own MPs, and he was right to do so. I want to thank and

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also for his response to the bloody Sunday enquiry, and how he reacted

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to the tragic murder of Jo Cox. We thank him for a service and I'm sure

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we will enjoy many more debate and disagreement while he continues as

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Prime Minister. Let me agree with the Leader of the Opposition that it

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was positive that turnout was so high. I also agree with him that we

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do need to reach out to those people who have not entered from economic

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growth and make sure they feel that their economic security is important

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to us as well. But I do not agree with him that it is right to start

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to refight the campaign all over again. All I know from my part is

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that I feel I put everything I could into the campaign that I believed

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in, head, heart and soul, and left nothing out, and I think that was

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the right thing to do. Answering his questions on money, different areas

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of the country get, until we leave the EU, none of those arrangements

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change. What has been set out in the budget, payments and the rest of it,

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all of those continued. As the negotiation begins properly for

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leaving, obviously the next Government will want to set out what

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arrangement it will put in place for farmers, local authorities, four

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regions of our country. On intolerance and fighting

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intolerance, I absolutely agree with him. We must dig all action we can

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to stand aside. He asked about the Chancellor's fiscal rule and also

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future plans. I would say, we have not worked so hard to get the Budget

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deficit down to see that go to waste, we must continue to make sure

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that we have a stoned strong economic plan in our country. For

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the coming months it is my responsibility and the Chancellor's

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responsibility, in time it will be the responsibility of a new

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Government, and they will have to decide how to react if there are

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economic goodies along the way. He asked if they could be private

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meetings for members of the front bench with the Chancellor, as always

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in these arrangements, if Shadow Cabinet members want those sorts of

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briefings, they can have them. And can I finally thank him for his kind

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remarks and the fact that he hopes will be debating with each other for

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some weeks and possibly months to come? Mr Speaker, when we acquire

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any Government that has decided what it means by leaving and draws up

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some detailed policy instructions for the committee officials he has

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set up, a great deal of detailed legislation covering a whole variety

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of fields will start being submitted to this Parliament. Does my Right

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Honourable Friend agree that we still have a Parliamentary

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democracy, and it will be the duty of each member of Parliament to

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judge each measure in the light of what each man and woman regards as

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the national interest? And not to take broad guidance from a

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plebiscite which has produced a small majority on a broad question

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after a bad-tempered and ill informed debate? And would he agree

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that we face months of uncertainty everywhere not careful... It is

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willing not acceptable for people to make that level of noise. The Right

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Honourable and learned gentleman will be hard, and every member of

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this house will be heard. Lets accord the Right Honourable and

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leather gentleman the respect which he is entitled. Thank you, Mr

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Speaker. Would he agree there is a risk of uncertainty for a few

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months, causing considerable difficulty, would he consider the

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possible first step of joining the European economic area, which was

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designed in the first place for countries like Norway and Iceland,

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where the great bulk of politicians whist to join the European Union but

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could not get past the ridiculous hurdle of a referendum in order to

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get their? And that would at least could be negotiated, modifications,

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changes, if anybody can decide what they want after we get there, but it

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would give some reassuring order and stability to our economy, and might

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begin to track a little investment and future prospects. Let me thank

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my Right Honourable Friend for his remarks. My view is simple, this

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house should not block the will of the British people to leave the

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European Union. But of course we have now got a look at all the

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detailed arrangements, and Parliament will clearly have a role

:20:15.:20:17.

in that in making sure that we find the best way forward. That will

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principally be the job for the next Government, but I do believe in

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Parliamentary sovereignty and the sovereignty of this Parliament, and

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a lot of detail will have to be discussed and debated. Decisions

:20:29.:20:34.

like with not enjoying the EEA will have to be for a future Government.

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Scotland voted overwhelmingly to remain in the European Union. 62% of

:20:40.:20:48.

voters cast their votes to remain in the EU, every single local

:20:49.:20:53.

Government area in the country voted to remain in the EU. And in

:20:54.:20:59.

Scotland, we voted to remain because it really matters that we are in the

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single European market, because we value the free movement of people,

:21:04.:21:08.

of goods and services, the cars are EU citizenship rights matter, as do

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our legal safeguards for workers, for women, and for parents. In

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Scotland, we voted to remain because we are a European nation. And it

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really, really matters to us that we live in an outward looking country,

:21:25.:21:29.

not a diminished Little Britain. In Scotland we are now being told Frost

:21:30.:21:34.

Westminster that despite the majority against Leave, we will have

:21:35.:21:38.

to do as we are told, we're going to be taken out of Europe against our

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will. Let me tell this house and our friends across Europe, we have no

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intention whatsoever of seeing Scotland taken out of Europe. That

:21:51.:21:57.

would be totally, totally and practically unacceptable. We are a

:21:58.:22:02.

European country and we will stay a European country. And if that means

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we have to have an independence referendum to protect Scotland's

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lace, then so be it. Thank goodness, Mr Speaker, that we have a Scottish

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Government and the First Minister prepared to lead and seek to protect

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Scotland's lace, and it is very, very welcome that this approach is

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being supported by opposition political parties across the

:22:26.:22:31.

Scottish Parliament. Meanwhile, Project fair has turned into project

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farce. Apparently those who proposed we should leave Europe have no plan.

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A senior Leave MP said, "There is no plan. The Leave campaign do not have

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a post Brexit plan. Number ten should have had a plan." Meanwhile,

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UK share places are so volatile that some stocks have temporarily been

:22:57.:23:01.

suspended, and sterling has hit a 31 year low. Mr Speaker, on one thing I

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hope we are all agreed. And that is that we take very serious note of

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the very disturbing series of racist incidents directed against our

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fellow citizens who happen to come from other European countries. I

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hope that we all, on all sides, totally repudiate these despicable

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acts, and encourage the police and prosecuting authorities to do all

:23:32.:23:36.

that they can. Given the economic damage and uncertainty that has

:23:37.:23:39.

currently been caused, may I ask the Prime Minister the following

:23:40.:23:44.

financial questions? We welcome the actions of the governor of the Bank

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of England to help provide certainty in difficult times. Can the Prime

:23:48.:23:50.

Minister confirm that the governor has no plans presently change his

:23:51.:23:57.

forward guidance on interest rates? The SNP will continue to support any

:23:58.:24:01.

sensible measures to deliver stability and confidence in the UK

:24:02.:24:05.

economy at this time. However, we want to be explicitly clear that

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this will not be used to further deepen the programme of austerity.

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In conclusion, the lack of leadership from Whitehall over the

:24:16.:24:17.

past few days has been unprecedented. We recognise that any

:24:18.:24:23.

further drift or vacuum simply exacerbates uncertainty. We know the

:24:24.:24:27.

Prime Minister is planning to leave, and we wish him well, but can we

:24:28.:24:31.

have an absolute assurance that his Government will finally start to

:24:32.:24:35.

take a firm grip of the situation we all sadly find ourselves in? First,

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what I say is that our focus should be to get the very best deal for the

:24:44.:24:47.

United Kingdom outside the European Union, and that should be the very

:24:48.:24:51.

best deal for Scotland as well. I absolutely agree with him about the

:24:52.:24:55.

despicable acts of racism that have taken place, and let me reassure him

:24:56.:24:59.

as well but we will take every step we can. He asked Western

:25:00.:25:02.

specifically about interest rates, that is a matter for the governor of

:25:03.:25:05.

Bank of England and the Monetary Policy Committee, and they set out

:25:06.:25:07.

their abuse in advance of the referendum. He asked about budgets,

:25:08.:25:11.

that is a matter for a future Government. But let me say this.

:25:12.:25:14.

Cotton benefits from being into single market, the United Kingdom

:25:15.:25:20.

and the European single market. -- Scotland benefits. In my view, the

:25:21.:25:30.

best outcome is to try to both. May I first of all paid tribute to the

:25:31.:25:37.

Prime Minister for the dignity with which he addressed the nation from

:25:38.:25:43.

ten Downing St yesterday? Will my Right Honourable Friend take a

:25:44.:25:50.

positive and simple message to the leaders of the other 27 member

:25:51.:25:53.

states at the European Council tomorrow, namely that the voters of

:25:54.:26:01.

the United Kingdom have demonstrated a value of that great principle, the

:26:02.:26:06.

principle of democracy, in which people fought and died? Let me thank

:26:07.:26:14.

my honourable friend. Of course when I go to the Council tomorrow I will

:26:15.:26:18.

report directly on the result and the decision of the British people.

:26:19.:26:21.

And no one should be in any doubt about that. But I think it is

:26:22.:26:26.

important that we set off on this part of exciting from the European

:26:27.:26:30.

Union, trying to build as much goodwill as possible on both sides.

:26:31.:26:37.

Can I pay tribute to the Prime Minister following the announcement

:26:38.:26:40.

of his resignation on Friday? We have not often agreed, but his

:26:41.:26:44.

commitment to historic bipartisanship during the Coalition

:26:45.:26:48.

Government and his energetic commitment to the Remain campaign

:26:49.:26:51.

contrasts favourably to the tribalism of others. He has my

:26:52.:26:58.

respect and my thanks. I also respect the outcome of the

:26:59.:27:04.

referendum. But I still feel passionately that Britain's

:27:05.:27:07.

interests are best served at the heart of Europe in the European

:27:08.:27:12.

Union. I can accept defeat, but I will not give up. I have not changed

:27:13.:27:21.

my beliefs. With the promises of the Leave campaign unravelling and no

:27:22.:27:24.

leadership insured by the opposition, will the Prime Minister

:27:25.:27:28.

confirm that free movement of people and access to the single market are

:27:29.:27:31.

paramount to the economics ability of Britain? And will he launch an

:27:32.:27:35.

investigation into the whereabouts of the members of Oxbridge Ansari?

:27:36.:27:45.

-- Oxbridge Ansari. It is not up to me to ensure attendance in the

:27:46.:27:48.

Chamber. I have many responsibilities, but that is not

:27:49.:27:51.

one of them. Let me thank him for what he said about my leadership,

:27:52.:27:54.

and say how much I enjoy the on the platform with him outside Birmingham

:27:55.:27:58.

University which brought together himself, myself and Gordon Brown, in

:27:59.:28:01.

a unique, but obviously unpersuasive trilogy. Although I have to say that

:28:02.:28:07.

Gordon Brown and the Right Honourable member Dave fantastic

:28:08.:28:11.

speeches. I think he is right that the decision we're going to have to

:28:12.:28:14.

take, and it will be for the next Government, but how we get the best

:28:15.:28:17.

possible access to the single market, that will be one of the

:28:18.:28:20.

single most important decisions that the Government will take on, because

:28:21.:28:24.

we must bear in mind the importance of safeguarding our economy, trade

:28:25.:28:27.

links, and jobs. That'll be a very serious consideration. Much of the

:28:28.:28:33.

distress expressed by those who voted Remain on Thursday has been

:28:34.:28:36.

that they believe their country has turned its back on their values.

:28:37.:28:39.

Does the Prime Minister agree that they can be reassured that the

:28:40.:28:45.

tolerance, openness and Western liberal internationalism that we

:28:46.:28:48.

supported within the European Union will continue to be the hallmark of

:28:49.:28:52.

the United Kingdom as we seek a new role in the world?

:28:53.:28:57.

I hope my honourable friend is right. I think that Britain is at

:28:58.:29:03.

its strongest when we stand up for our values and work with others. We

:29:04.:29:05.

will still be full members of Nato, will still be full members of Nato,

:29:06.:29:11.

the Security Council, the G-7, Britain does best when we make our

:29:12.:29:18.

voice heard to these organisations. -- heard through these

:29:19.:29:24.

organisations. I never thought I read Steve the day when I wish

:29:25.:29:28.

they'd Tory Prime Minister with win a vote, and last Thursday I did. I

:29:29.:29:34.

think the country will pay a better price because he lost this one.

:29:35.:29:38.

Leaving aside the constitutional turmoil, the economy's damage, and

:29:39.:29:46.

the uncertainty, the leaders of the Brexit campaign have engendered an

:29:47.:29:49.

atmosphere where some people believe it is open season now for racism.

:29:50.:29:54.

Will the Prime Minister said clearly Will the Prime Minister said clearly

:29:55.:29:57.

that when it comes to the difficulties of getting a job, the

:29:58.:30:03.

problems when it comes to the difficulties of getting a job,

:30:04.:30:09.

problems in the NHS, or housing, or schools, that is the responsibility

:30:10.:30:13.

of his Government to sort out, not be fault of migrants from the EU or

:30:14.:30:20.

anywhere else. Can I praise the right honourable lady for her

:30:21.:30:23.

decision to cross party lines and appear with others on platforms to

:30:24.:30:28.

make the arguments that she made persuasively. She is right that we

:30:29.:30:33.

must be clear about our commitment to diversity and tolerance and our

:30:34.:30:37.

intolerance of racism and hate crimes as we've seen in recent days.

:30:38.:30:42.

I know that is the view of honourable members in this House

:30:43.:30:46.

though matter what side of the House they were on. That message needs to

:30:47.:30:53.

quite clearly. Does the Prime Minister recall that when we held

:30:54.:30:58.

the boat in September last year on the EU referendum bill, not a single

:30:59.:31:04.

Conservative and only one Labour Conservative and only one

:31:05.:31:06.

member voted against it? Is it not a member voted against it? Is it not a

:31:07.:31:14.

bit late now for people to talk about blocking the implementation of

:31:15.:31:17.

the result just because they disagree with it and finally, as it

:31:18.:31:23.

is good to end in a positive note, would he care to bring in the vote

:31:24.:31:29.

for the Trident successor submarines before he leaves office? I think it

:31:30.:31:37.

is clear when it comes to numbers he wants for submarines and one

:31:38.:31:41.

referendum. He makes a good point. When the House voted on the

:31:42.:31:45.

referendum it was by a margin of 6-1 to hold the referendum. We will have

:31:46.:31:50.

a plan for all the other decisions that can be made during the

:31:51.:31:54.

remainder of this parliamentary session and I hope that includes the

:31:55.:31:58.

one that he mentions. I would like to add my thanks to the Prime

:31:59.:32:05.

Minister for his service to the nation and his place in the

:32:06.:32:09.

Coalition Government. Knowing that time we disagreed on many things

:32:10.:32:13.

that I appreciated his ability and good humour, which is on display

:32:14.:32:19.

today, and his ability to see politics from the perspective of

:32:20.:32:23.

other people. I think those qualities ensure the stability that

:32:24.:32:26.

was necessary as the country was recovering from the shocks of 2008

:32:27.:32:33.

and he should be thanked for that. I have heard a lot about democratic

:32:34.:32:37.

ticket not be right as a matter of ticket not be right as a matter

:32:38.:32:40.

democratic principle that only democratic principle that only

:32:41.:32:44.

members of the Conservative Party constituting a tiny percentage of

:32:45.:32:48.

the total electorate, should be the only people that have a say to elect

:32:49.:32:53.

the new Prime Minister with new priorities different to those he got

:32:54.:32:54.

elected last year. But he agree that elected last year. But he agree that

:32:55.:32:59.

there should be an early general election? Let me thank him for his

:33:00.:33:06.

kind words. We did work together successfully and I know that he paid

:33:07.:33:14.

a large personal and political price for the support he offered to the

:33:15.:33:19.

Government. What I would say about the leadership election that will

:33:20.:33:23.

now take place is that all parties have rules for electing leaders.

:33:24.:33:32.

Those rules will be followed. In the coalition agreement we agreed a

:33:33.:33:37.

fixed term Parliament act which many of my colleagues have misgivings

:33:38.:33:43.

about. I think it is a good measure. A new Prime Minister should take

:33:44.:33:47.

office and it is for them to decide whether to build the terms of this

:33:48.:33:56.

Parliament or do something else. My right honourable friend will know

:33:57.:33:59.

that are larger and people my constituency who work in the service

:34:00.:34:05.

They have seen jobs leave this They have seen jobs leave this

:34:06.:34:09.

country this weekend and they are worried about their future. They

:34:10.:34:18.

need to be a part of the single market and so does this country as

:34:19.:34:22.

they currently have a ?20 billion surplus. Will my honourable friend

:34:23.:34:28.

ensure that is given the highest priority in the national interest in

:34:29.:34:32.

our negotiations? He makes an important point that let me stress

:34:33.:34:37.

nothing changes in the UK's trading relations with Europe until we

:34:38.:34:42.

actually leave the European Union. There is a period where service

:34:43.:34:47.

companies will maintain that passport and one of the most

:34:48.:34:50.

important tasks for the new Government will be to negotiate the

:34:51.:34:53.

best possible arrangements with the single market. There is a strong

:34:54.:34:59.

case for trying to remain in the single market, but that will be a

:35:00.:35:00.

decision for the new Government. As the process of leaving the

:35:01.:35:19.

European Union unfolds, we will continue to face a large number of

:35:20.:35:24.

international challenges, climate change, the threat of terrorism,

:35:25.:35:31.

among them. We risk seeing our voice in the world diminished. Does the

:35:32.:35:35.

Prime Minister agree that in the negotiations every effort should be

:35:36.:35:40.

made to ensure that we continue to have tactical cooperation with our

:35:41.:35:44.

European allies so we can obtain the kind of influence in the world that

:35:45.:35:48.

is so important to our prosperity and security? We agree on this issue

:35:49.:35:52.

and we spent some time on the and we spent some time on the

:35:53.:35:58.

campaign discussing it. I would say that it is important to use all of

:35:59.:36:03.

these forums to maximise Britain's influence and they will have to find

:36:04.:36:07.

a way under the new Government to work out how to work with the

:36:08.:36:10.

European Union to get the maximum effect for the British stance on

:36:11.:36:15.

climate change, Syria, and how we try to prevent refugees leaving

:36:16.:36:21.

Libya. These will be issues for a future Government. I know from what

:36:22.:36:24.

happened in the campaign that this is not about Britain's rack

:36:25.:36:29.

withdrawal from the world or playing less of their role, we will need to

:36:30.:36:36.

work out a way forward. I would like to add my voice to the tributes to

:36:37.:36:40.

the Prime Minister from across the House. He has made Oxfordshire pride

:36:41.:36:46.

and we will miss him. Will he take this opportunity to reassure the

:36:47.:36:49.

science and innovation sector that the Government will fight to protect

:36:50.:36:55.

access to Horizon 2020 funding and research collaborations and two

:36:56.:36:58.

recruitments of the brightest and recruitments of the brightest and

:36:59.:37:04.

best of EU researchers, who are essential to our knowledge economy

:37:05.:37:08.

and deserve to know they will be a priority in ongoing negotiations. I

:37:09.:37:12.

found my honourable friend for her kind remarks and it has been eight

:37:13.:37:17.

pleasure to be her constituency neighbour and working together. How

:37:18.:37:23.

we maintain advances in British science and the competitiveness of

:37:24.:37:27.

our universities is one of the issues the EEE unit will look at. We

:37:28.:37:32.

have done well in this part of the European Union. The new Government

:37:33.:37:35.

will have to look the evidence for that and how to move forward. I

:37:36.:37:40.

would like to commend the Prime Minister for the way he handled

:37:41.:37:46.

Friday and his very diplomatic and kind speech today. I would ask him

:37:47.:37:52.

to continue to show that leadership in the coming months to ensure that

:37:53.:37:56.

some of the hysteria which has been around about what is called the

:37:57.:38:00.

happened to the country is kept under control. Could I have skim to

:38:01.:38:07.

condemn to Dave Bennett clearly those people -- chiasm to condemn

:38:08.:38:14.

today those who are implying that those who voted to leave the

:38:15.:38:21.

European Union are closeted racists? I have been on the opposite side to

:38:22.:38:25.

the honourable lady in this debate but I know a discouraged to stand up

:38:26.:38:30.

as she has. One of my first jobs in politics was as a researcher in her

:38:31.:38:36.

constituency and if I had now and then she would be part of my

:38:37.:38:40.

There are many people on both sides There are many people on both sides

:38:41.:38:45.

of the debate who have strong views about tolerance and diversity and we

:38:46.:38:47.

need to make sure that shines need to make sure that shines

:38:48.:38:56.

through in the coming days. As the Prime Minister knows, I have not

:38:57.:39:01.

always agreed with him on issues. He also knows I have also been very

:39:02.:39:06.

supportive of him personally and I did not want him to make the

:39:07.:39:10.

announcement he made last week. Having said that, does the Prime

:39:11.:39:16.

Minister agree with me when I say we need to bring the country together.

:39:17.:39:21.

Does he accept that the first part of that is that everyone has to

:39:22.:39:24.

accept the results of the referendum, whether they like it or

:39:25.:39:30.

not? The talk of a second referendum is for the birds. When he goes to

:39:31.:39:34.

see his European counterparts will he passed on the message that what

:39:35.:39:38.

the British people have said is that we are happy to continue with our

:39:39.:39:42.

trading with the European Union but in return for that we are not

:39:43.:39:48.

willing to accept free movement of people or contributing to the EU

:39:49.:39:54.

budget? He is right that we must accept the result and Has and

:39:55.:40:00.

everyone should. What has to happen now is translating that result into

:40:01.:40:03.

action and choosing the right pathway to leave the European Union

:40:04.:40:07.

and the correct relationship to have with it. That will take complex

:40:08.:40:11.

decision-making and he has a clear view about what that should involve.

:40:12.:40:17.

different decisions, but the different decisions, but the

:40:18.:40:18.

decision must be accepted. Many of decision must be accepted. Many of

:40:19.:40:25.

my constituents are European citizens and they are fearful of

:40:26.:40:29.

their future. The Prime Minister has talked about a group of officials

:40:30.:40:33.

set up to determine what Brexit will mean. Can you give any comfort to

:40:34.:40:38.

these people or a timetable for when they will now how they can apply to

:40:39.:40:47.

remain in the UK? There will be many people watching this with the same

:40:48.:40:48.

question that the honourable lady question that the honourable lady

:40:49.:40:54.

has Ascot. The cancer is that while we are members of the European Union

:40:55.:40:58.

there is no change in the rights of circumstances of people coming to

:40:59.:41:01.

live and work in Britain or Britain is going to work in other European

:41:02.:41:07.

countries. -- or people from Britain going to work in. We want to protect

:41:08.:41:14.

the rights of people who are already here. The clarification of this and

:41:15.:41:18.

the rights of British people living in other parts of the European Union

:41:19.:41:22.

will have to wait until the complex negotiations. Can I thank the Prime

:41:23.:41:29.

Minister forgiving the British people the opportunity to vote on

:41:30.:41:32.

decades and can I thank those who decades and can I thank those who

:41:33.:41:37.

voted to leave for giving me a remarkable birthday present on

:41:38.:41:38.

Friday. I also welcomed the Friday. I also welcomed the

:41:39.:41:45.

establishment of the European unit. Does the Prime Minister planned to

:41:46.:41:50.

publish a white paper? I do not think that will be possible. The new

:41:51.:41:55.

unit will need to get up and running and go through the complex issues

:41:56.:41:59.

that need to be sorted out, about agriculture payments, borders, the

:42:00.:42:06.

situation in Northern Ireland, complex issues about which British

:42:07.:42:09.

laws will need to be rewritten and all the rest of it. What I envisage

:42:10.:42:15.

is a series of papers being worked through and discussed by the Cabinet

:42:16.:42:18.

and being prepared for the new Government as it comes in. Given the

:42:19.:42:29.

enormity of this decision and the repercussions of the negotiation

:42:30.:42:34.

process, the arrangements he described some week. He is saying

:42:35.:42:37.

that Members of Parliament should have an informal chat. He is leaving

:42:38.:42:45.

a dangerous political vacuum. Can I urge him to look at broader

:42:46.:42:51.

arrangements to build a wider consensus, including setting up a

:42:52.:42:55.

joint Committee of both Houses of Parliament to look at wider

:42:56.:42:59.

arrangements to involve voices from across the country in what the

:43:00.:43:04.

negotiations about our future Britain alongside the EU should be.

:43:05.:43:09.

Written fields divided now and we have a responsibility to build a new

:43:10.:43:16.

consensus for the future. -- Britain feels very divided now. I do not

:43:17.:43:22.

disagree but Parliament will want to consider how they can best produce

:43:23.:43:28.

evidence and take research and interviews to add to this process. I

:43:29.:43:33.

see the role of the Government to move from one situation, membership

:43:34.:43:42.

of the EU, to another. We need to describe in an objective way for the

:43:43.:43:46.

different outcomes look like and the advantages and disadvantages of

:43:47.:43:50.

them. We know a trade deal like Canada, a situation like Norway, the

:43:51.:43:56.

pros and cons of being in the single market, so people can see the

:43:57.:44:00.

situation in each case. The House of situation in each case. The House of

:44:01.:44:04.

Commons can play a part in that. And also Baker put it Right

:44:05.:44:13.

Honourable Friend for giving the reddish people the chance to dig

:44:14.:44:18.

this historic decision? Isles share his that Britain will continue to be

:44:19.:44:22.

engaged with the rest of the world. I hope in a more positive fashion.

:44:23.:44:27.

May I also expressed the view that I'm disappointed that my Right

:44:28.:44:31.

Honourable Friend has decided to stand down, and I wonder if it is

:44:32.:44:34.

difficult time he might not want to reconsider their decision? I say so

:44:35.:44:40.

because he is a star at the dispatch box. And furthermore as he has

:44:41.:44:43.

demonstrated today, he will rather miss it if he is not here to do it.

:44:44.:44:49.

I'm sure there are many things I will miss, and statements that go on

:44:50.:44:52.

for at least three hours are perhaps one of them. What on earth will I do

:44:53.:45:01.

to fill my time? But the reason for my decision to remind us that the

:45:02.:45:04.

country has made a very clear decision to go in a particular

:45:05.:45:09.

direction, and I really do believe it needs someone, fresh leadership,

:45:10.:45:12.

a fresh pair of eyes, committed to that path and to get to get right

:45:13.:45:17.

for Britain, and I think that does require a change, and that is why

:45:18.:45:20.

amid the decision I did, and I'm certainly not changing my mind.

:45:21.:45:25.

Talking of which, at nine o'clock this morning the Right Honourable

:45:26.:45:29.

member for Uxbridge welcomed the stabilisation of the pound. At

:45:30.:45:35.

lunchtime, sterling fell to a 31 year low against the dollar. If you

:45:36.:45:41.

break it, you own it. So who owns this particular adjustment? Is of a

:45:42.:45:45.

Prime Minister who called the referendum, or the Right Honourable

:45:46.:45:51.

member for Uxbridge exploited it? I will be very frank. The Government

:45:52.:45:58.

was elected on a manifesto promise to hold a referendum. We have held a

:45:59.:46:03.

referendum. The country has made its decision, and this Government is

:46:04.:46:06.

responsible motorist setting out the steps we need to take and doing all

:46:07.:46:09.

that is necessary to stabilise the economy. We took a choice to ask the

:46:10.:46:14.

people was very big question is I believe in our Parliamentary

:46:15.:46:17.

democracy. But when it comes to the very big decisions I believe it is

:46:18.:46:21.

right to consult the people. This Government takes responsibilities.

:46:22.:46:26.

In respecting with dignity the wishes of the electorate, does the

:46:27.:46:32.

Prime Minister accent that he has an absolutely pivotal role to play in

:46:33.:46:37.

encouraging all sides to come together and talk the country up.

:46:38.:46:43.

Calm optimism is now required. We are a great country and we have a

:46:44.:46:48.

very bright future ahead of us. I certainly believe we all have a

:46:49.:46:52.

responsibility to bring the country together and make this new pathway

:46:53.:46:55.

work as well as it does, but we have to do it from a position of realism.

:46:56.:47:00.

We don't know exactly what some of the economic and other effects will

:47:01.:47:03.

be, so we will have to take great caution and care in the coming days

:47:04.:47:07.

and weeks to respond to that, as well as coming together to get the

:47:08.:47:12.

best pathway for our country to leave this organisation. On Friday

:47:13.:47:16.

the Leader of the Opposition suggested we should rush to invoke

:47:17.:47:19.

article 50 real negotiations now. I disagree. I believe it would be

:47:20.:47:27.

inside an order for our economy to ensure a stable transition to make

:47:28.:47:31.

sure that Article 50 is not triggered until at least the New

:47:32.:47:36.

Year. The triggering of Article 50 is a matter for the British

:47:37.:47:38.

Government. It is important we establish that. What matters is that

:47:39.:47:43.

we do as much work as possible to determine the best possible model

:47:44.:47:47.

that we want to try and negotiate, and that must be a matter for the

:47:48.:47:51.

new Prime Minister. And then he or she will make that decision to

:47:52.:47:57.

trigger article 50. Boston in my constituency voted more than any

:47:58.:48:00.

Other Place in the country to leave the European Union, and has seen --

:48:01.:48:07.

I'm keenly aware that those migrants are my constituents to. Does my

:48:08.:48:12.

Prime Minister agree with me that we owe it to the will of those people

:48:13.:48:17.

that live in my constituency to deliver on the promises to reform

:48:18.:48:21.

immigration and increase spending on the NHS if we are to retain their

:48:22.:48:28.

faith in This Place? What we must continue to do is enact our

:48:29.:48:31.

manifesto promises, one of which was to set up an immigration impact

:48:32.:48:36.

fund, and we need to set that up and establish it, hopefully on an

:48:37.:48:40.

all-party basis. We should continue to deliver for the NHS as we

:48:41.:48:43.

promised in our manifesto, and we have done so. But one of the key

:48:44.:48:48.

issues in this negotiation is how to balance typical decisions about

:48:49.:48:51.

access to the single market and better control of immigration, and

:48:52.:48:55.

that will go to the heart of what the country needs to do. The Prime

:48:56.:49:00.

Minister and I were on different sides of this argument, but when he

:49:01.:49:04.

spoke on Friday he did so with his dignity, his principal and his

:49:05.:49:09.

honour intact. I'm very grateful to the Prime Minister for indicating

:49:10.:49:13.

that discussions will commence this week on the Common travel area, but

:49:14.:49:17.

can I ask the Prime Minister to dismiss the notion that there could

:49:18.:49:21.

be a border poll in Northern Ireland? To dismiss the notion that

:49:22.:49:26.

devolved institutions can wield a veto on this process, and to resolve

:49:27.:49:30.

it only with collective will to do what is in our national interest

:49:31.:49:32.

will be maintained this United Kingdom? Can I thank him for his

:49:33.:49:39.

kind remarks? I think he is right to say that we get the issues around

:49:40.:49:44.

the Common travel area right. They are complex, and difficult, if

:49:45.:49:47.

Northern Ireland is go to be the frontier between the kingdom outside

:49:48.:49:50.

the European Union and the European Union. On the issue of border poll,

:49:51.:49:57.

the rules for that I set out clearly in the Good Friday Agreement and I

:49:58.:49:59.

don't believe they have been triggered. And in terms of the

:50:00.:50:03.

decision to leave the EU, and how we do it, that is principally the

:50:04.:50:09.

matter for this Westminster United Kingdom Parliament. The Prime

:50:10.:50:16.

Minister has shown decency and courage that my predecessor, Harold

:50:17.:50:20.

Macmillan, would have respected. I think Harold Macmillan would have

:50:21.:50:22.

wept for the day that this has happened and the day that the Prime

:50:23.:50:27.

Minister departs. Well he concedes that it is very clear legally that

:50:28.:50:30.

article 50 is the only proper means of exiting from the European Union,

:50:31.:50:35.

that any attempt to circumvent that will be wrong and will involve this

:50:36.:50:39.

country any breach of its international obligations, which no

:50:40.:50:42.

decent leader of this country should ever contemplate? Let me thank him

:50:43.:50:47.

for his remarks. He is right that the only legal way set out in these

:50:48.:50:51.

EU is by triggering Article 50, and that is clearly what our partners

:50:52.:50:56.

want us to do, although, not all of them believe that we have to do it

:50:57.:50:59.

immediately. And that is why think we have some time to examine the

:51:00.:51:04.

right model we want to negotiate for, and then to pull the trigger.

:51:05.:51:08.

But as I understand that it is the only legal way that the job can get

:51:09.:51:16.

done. During the campaign we heard quite a lot of criticism about

:51:17.:51:23.

politicians, elites and experts. And I ask the Prime Minister about a

:51:24.:51:27.

promise made by the Leave side just this morning? The Honorourable

:51:28.:51:32.

Member for Uxbridge has said he wants to maintain full access to the

:51:33.:51:39.

single market. Can the Prime Minister name a country that has

:51:40.:51:42.

full access to the single market but which does not also have to accept

:51:43.:51:50.

free movement of people. I think the technical answer to his question is

:51:51.:51:55.

that there isn't a country today that has full access to the single

:51:56.:51:59.

market without contributing to the budget or accepting free movement of

:52:00.:52:04.

people. But I think that where we should try to seek some cross-party

:52:05.:52:08.

agreement here is that it is in all our interests whatever the eventual

:52:09.:52:12.

decision to make sure that we are as close as possible economically to

:52:13.:52:15.

our friends and partners in the European Union. That is obviously

:52:16.:52:20.

going to have to be negotiated, and personally, my view is the closer

:52:21.:52:29.

the better. As somebody of Polish origin, I'm very proud of the

:52:30.:52:34.

contribution that the Polish have made this country, not just during

:52:35.:52:39.

the Battle of Britain, where the Polish 303 Squadron was one of the

:52:40.:52:44.

largest, but also in recent years. As chairman of the all-party group

:52:45.:52:47.

for Paul and I invited a chairman of the Polish cultural Centre to the

:52:48.:52:52.

House of Commons to show solidarity with them after that polling attack,

:52:53.:52:56.

and I very much hope the Prime Minister will potentially us for

:52:57.:53:00.

that meeting. Let me commend my Honourable Friend for his work with

:53:01.:53:04.

the Polish community here in the UK and for furthering relations between

:53:05.:53:08.

Britain and Poland. I spoke to the Woolwich Prime Minister this

:53:09.:53:12.

afternoon to say how appalled I was about the terrible attacks have

:53:13.:53:15.

taken place and to reassure her we are doing everything to protect

:53:16.:53:19.

Polish citizens in our country. Poland is a country that is sad to

:53:20.:53:22.

see Britain leave the European Union because where like-minded on some

:53:23.:53:26.

any issues about open and enterprise and the Atlanticist nature of the

:53:27.:53:29.

European Union, but we must make sure we work for the strongest

:53:30.:53:32.

bilateral relationship between Poland and Britain in the years

:53:33.:53:37.

ahead. Can I commend the Prime Minister on the way he has accepted

:53:38.:53:43.

the verdict of a United Kingdom wide referendum? And I think the rest of

:53:44.:53:46.

the house should accept that verdict the way he has. When it comes to

:53:47.:53:50.

implementing it, could you tell the house whether he intends to replace

:53:51.:53:53.

our Commissioner, and whether he intends to set up a special unit as

:53:54.:53:59.

well? Let me congratulate the Honourable Lady for the role she

:54:00.:54:04.

played in the campaign as a very key spokesman for that side of the

:54:05.:54:08.

argument. Firstly let me a tribute to Lord Hill who worked incredibly

:54:09.:54:14.

hard in the European Commission. I am sad to see him go. I think we

:54:15.:54:18.

should try to seek a replacement, because the fact is we are full

:54:19.:54:21.

member of this organisation, a contributing and paying member until

:54:22.:54:24.

we leave, and therefore we should have a commissioner. I'm sure that

:54:25.:54:31.

will be a challenge. As for the group in Brussels, it is ably led by

:54:32.:54:36.

Sir Rogers, and I hope will remain in place and continue to give the

:54:37.:54:39.

excellent advice he has two Ministers to date. Whilst the

:54:40.:54:45.

Honourable Lady for a Vauxhall is right, I make no apology from the

:54:46.:54:50.

side of the house to bring my Right Honourable Friend back to the topic

:54:51.:54:56.

of what we have seen since Thursday. Where a tweet can be sent to a young

:54:57.:55:02.

black woman in London which says" go home, we voted leave, time to make

:55:03.:55:07.

written great again by getting rid of you blacks, Asians and

:55:08.:55:12.

immigrants" and Jeannie appears to have been let out of the bottle.

:55:13.:55:19.

Unintended by both sides of the campaign. Could I ask my Right

:55:20.:55:22.

Honourable Friend to specific questions? First, that the police

:55:23.:55:28.

and the prosecuting authorities have the resources to bring cases against

:55:29.:55:35.

perpetrators of this while racism? And secondly, to use his good

:55:36.:55:39.

offices with the leaderships of both of the referendum campaigns, to call

:55:40.:55:44.

out this abuse for what it is, and to bring a stop to it now? My

:55:45.:55:52.

honourable friend is absolutely right, this is hideous language that

:55:53.:55:55.

we thought we had banished from our country, and it is important

:55:56.:55:57.

everyone comes out and condemns this as strongly as possible. On his

:55:58.:56:01.

specific questions, firstly the police do have resources because we

:56:02.:56:04.

protected their budgets. They have the necessary laws as well to

:56:05.:56:09.

prosecute hate crimes. An unusual both campaigns, as far as I'm

:56:10.:56:12.

concerned these campaigns no longer exist. There is no one Government

:56:13.:56:16.

with one view, which is we have to find the right path for the future.

:56:17.:56:19.

I think the sooner we can do that, the better. I am proud to say

:56:20.:56:27.

publicly that I voted for Britain to remain in the European Union. I'm

:56:28.:56:33.

sure the premise to would too. But I'll so respect and recognise that

:56:34.:56:36.

people across this house voted differently. All of us no need to

:56:37.:56:41.

help those at the sharp end of this decision. Can he tell us

:56:42.:56:46.

specifically what measures his Government will put in place for all

:56:47.:56:50.

those small businesses who are now facing a loss or opposing contracts

:56:51.:56:54.

as a result of a decision on Thursday? The Business Secretary has

:56:55.:57:00.

been consulting with businesses throughout the campaign, but

:57:01.:57:04.

obviously has stepped that up and is having a very large meeting with

:57:05.:57:07.

businesses tomorrow. I will be doing that later in the week. The true

:57:08.:57:12.

position is this, that as long as we are in this organisation, until we

:57:13.:57:18.

exit, all the rules about trade, services, financial passports,

:57:19.:57:21.

access to markets, none of those change. And what needs to happen

:57:22.:57:26.

now, informed by the work of this EU unit is that we seek the very best

:57:27.:57:30.

possible deal to make sure that businesses can still benefit from

:57:31.:57:35.

access to European markets. The Prime Minister and the Chancellor

:57:36.:57:39.

and the governor of the Bank of England have commendably acted

:57:40.:57:42.

swiftly to restore calm to the markets and confidence in our

:57:43.:57:47.

country and our economy. However, the Prime Minister knows there are

:57:48.:57:51.

many people leading voters to believe that a second referendum is

:57:52.:57:55.

possible and that it could be rerun on different rules. What with the

:57:56.:58:00.

premise to say to those people who are encouraging others to believe

:58:01.:58:05.

that that is a possibility? I think people will not be surprised to hear

:58:06.:58:09.

that I am not planning a second referendum. We have to get on and

:58:10.:58:15.

deliver it. And as we do so, we have to seek the best possible deal. And

:58:16.:58:19.

we see this house should be involved with that process.

:58:20.:58:24.

The scare stories about immigration that were spoken by people leading

:58:25.:58:33.

the league campaign were frankly shameful. We do have a divided

:58:34.:58:37.

country, divided between our cities and small towns for whom immigration

:58:38.:58:42.

was the number one issue. Beyond the impact, which I support, but was

:58:43.:58:47.

abolished some years ago, can the Prime Minister assure that we can

:58:48.:58:52.

look more deeply into some of the pressures on our small town

:58:53.:58:57.

immunities, the employment sectors, some of the abuses going on, the

:58:58.:59:01.

increase on housing and rents. And can I gently say to the Prime

:59:02.:59:05.

Minister, I am somewhat surprised in his statement that the new EU unit

:59:06.:59:09.

in Whitehall does not include the hot Home Office?

:59:10.:59:13.

First of all, on her last point, this new EU unit is going to be

:59:14.:59:18.

working with every departments, because every department is affected

:59:19.:59:22.

by this decision. They Home Office will be playing a leading role in

:59:23.:59:26.

trying to work out what the options are for leaving the EU, but

:59:27.:59:31.

maintaining levels of cooperation of crime, borders, information and

:59:32.:59:34.

terrorism and all the rest of it. Very useful work can be done before

:59:35.:59:38.

my successor takes office. I agree with horror that immigration was a

:59:39.:59:42.

key issue in this election. I think we have to look as a country at what

:59:43.:59:45.

more we can do to help people integrate into our country, to

:59:46.:59:49.

examine the pressures on public services. I need a series of

:59:50.:59:53.

suggestions about wealth changes which will now not be coming in,

:59:54.:59:57.

which I am sad about. We need to find some alternatives to those, to

:59:58.:00:02.

reassure people that we can have a good and fair and manage system for

:00:03.:00:06.

immigration, but outside the EU and inside it.

:00:07.:00:16.

All I would like to do today is like my bike Honourable friend, the Prime

:00:17.:00:19.

Minister, for his years of service to the party and country. I hope if

:00:20.:00:24.

the result had been the other way round, my side would have behaved

:00:25.:00:27.

with the dignity and nobility that he has showing up.

:00:28.:00:32.

Can I thank my honourable friend for his kind remarks, and the spirit in

:00:33.:00:41.

which they were given. Thank you Mr Speaker. The Prime

:00:42.:00:46.

Minister said that there is now a collective Government and Cabinet

:00:47.:00:51.

responsibility. In that context, can I ask him, can he say on the heart

:00:52.:00:56.

of the members of Surrey Heath and the member for Uxbridge that we will

:00:57.:01:03.

have a vote in this House before article 50 is triggered?

:01:04.:01:10.

On a technical issue, the member of Uxbridge is not a member of the

:01:11.:01:18.

Government will stop to answer his question directly, I cannot get that

:01:19.:01:22.

guaranteed. The decision for triggering Article 50 will be a

:01:23.:01:30.

decision for the next Government. Not responsible for the member of

:01:31.:01:34.

Uxbridge and South Ruislip. He's public wife wheezed he's not

:01:35.:01:42.

responsible for hen! The Prime Minister must take great

:01:43.:01:45.

credit for delivering the referendum, and great credit for the

:01:46.:01:49.

way he campaigned, because undoubtedly the Remainer vote was

:01:50.:01:53.

hired because of that. And also because of the way he has reacted

:01:54.:01:58.

afterwards. Can I ask the Prime Minister, we were talking just now

:01:59.:02:02.

about collective responsible take, will all his ministers now be behind

:02:03.:02:05.

the Prime Minister in leaving the EU? And there is some talk today

:02:06.:02:11.

that the exit of the Prime Minister will be earlier now, sometime around

:02:12.:02:14.

the end of August. Could he comment on that as well?

:02:15.:02:19.

On collective responsible thing, I meant what I said, it was suspended

:02:20.:02:24.

for a period of this campaign, but it is now come back into place.

:02:25.:02:28.

Embers of the Cabinet are of one of you, and that must be that we

:02:29.:02:33.

deliver the country's will to leave the European Union. That decision

:02:34.:02:36.

will be taken by the next prime Minster, however. There are all

:02:37.:02:42.

sorts of bodies, the 22, the party board, who will make decisions. I am

:02:43.:02:47.

your servants, I want to make sure we have stability and continuity in

:02:48.:02:53.

the Government of this country, and we take the necessary steps to

:02:54.:02:56.

stabilise things. I know the right thing to do is to hand over to a new

:02:57.:03:00.

team and we don't take this issues forward.

:03:01.:03:07.

Can I work in the emphasis the Prime Minister now puts on coming back

:03:08.:03:11.

together as a community. There are people now living in fear in the way

:03:12.:03:16.

the Honourable member of not Dorset describes, and is up to us to bit

:03:17.:03:21.

decency back into our democracy. Can the Prime Minister now understand

:03:22.:03:24.

the rage that many feel at what appeared to be mysteries talked

:03:25.:03:29.

about the virtues are coming out of the European Union? Such as, for

:03:30.:03:34.

example, an extra ?250 million per week for the National Health

:03:35.:03:37.

Service? Can I press the Prime Minister on the answer he gave to my

:03:38.:03:42.

right honourable friend? We are about to go on some of the most

:03:43.:03:46.

dangerous waters this country has ever entered. It would be strange if

:03:47.:03:51.

we carried on in this House as if business was going on as usual.

:03:52.:03:56.

Transparency is the best guarantee against any more mysteries. Surely

:03:57.:04:00.

this parliamentary arrangement must be strengthened to provide oversight

:04:01.:04:07.

for the arrangements were leaving the European Union?

:04:08.:04:12.

He's right, we need to get decency interact a mocha say, we must stand

:04:13.:04:18.

against hatred and intolerance. We do not need to fight the referendum

:04:19.:04:21.

campaign all over again. What Aggborough fret on what he said --

:04:22.:04:27.

what I will reflect on what he said is that we need to set out and

:04:28.:04:31.

examine in an objective and fact -based way what are the alternative

:04:32.:04:35.

models for leaving the European Union? What are the advantages and

:04:36.:04:38.

disadvantages ayes I do believe this House is a big role. Whether it is a

:04:39.:04:43.

new joint committee or existing select committees, I'm very happy to

:04:44.:04:48.

receive advice and ideas from Honourable members. This House

:04:49.:04:51.

should play it cool role in making sure we get that decision right.

:04:52.:04:56.

The Prime Minister is absolutely writes about all of us who voted on

:04:57.:05:01.

the Remain side must accept the results of the referendum and do our

:05:02.:05:05.

best implemented as well as possible. And I said the man and

:05:06.:05:10.

tone of his resignation speech and today is absolutely in keeping with

:05:11.:05:15.

the unifying, one nation Tory style that he has implement it in his

:05:16.:05:20.

career. In the wake of the referendum, there is a spirit of one

:05:21.:05:26.

where young people felt let down by their parents and grandparents. With

:05:27.:05:29.

my right honourable friend agree, that in the weeks ahead with the

:05:30.:05:33.

current governments, the Government seizes all opportunities to reassure

:05:34.:05:36.

young people that the opportunities and benefits which many of them see

:05:37.:05:39.

in Europe. The available for them after the process of leaving the

:05:40.:05:43.

European Union? I think my honourable friend makes

:05:44.:05:47.

an important point. We must accept the results, that I think during

:05:48.:05:52.

this process of debate, there will be many arguments for people who

:05:53.:05:56.

want to look at for how we exit the EU and the Roissy Jibril had at the

:05:57.:06:00.

end. What will it mean for young people and terms of travelling,

:06:01.:06:06.

these oral questions. We are not now about theoretical alternatives to

:06:07.:06:12.

membership, we're now talking actual alternatives. We need transparency

:06:13.:06:15.

in the dates of people can make their voices heard.

:06:16.:06:23.

I'm keen to accommodate colleagues, that there is a need for brevity.

:06:24.:06:29.

I applaud the Prime Minister, now that leaving the European Union is

:06:30.:06:37.

the policy of the Government, can the Prime Minister no guarantee that

:06:38.:06:40.

some of the architects of the campaign will be involved?

:06:41.:06:46.

The Government and the Cabinet includes many people who are

:06:47.:06:50.

prominent in both campaigns. The campaigns are now over, however,

:06:51.:06:53.

there is one Government, one Government policy. Let me take issue

:06:54.:07:00.

about civil servants - they are impartial, hard-working, the best of

:07:01.:07:04.

British. They do a fine job and will help us deliver this incredibly

:07:05.:07:12.

important and difficult challenge. Whatever the final form of our exit

:07:13.:07:16.

negotiations from the European Union take, it is clear to everyone that

:07:17.:07:18.

we will need to strengthen our trading relationship with other

:07:19.:07:23.

economies around the world. The Prime Minister is right to set up

:07:24.:07:29.

this EU exit unit within the Cabinet Office, but what steps as he taking

:07:30.:07:33.

to supercharge the business Department, so we can have a team of

:07:34.:07:39.

officials to start taking such trade agreements?

:07:40.:07:41.

That is the sort of issue we shall be looking at. In many cases we will

:07:42.:07:47.

have to do is at our exit first before we can make those

:07:48.:07:52.

arrangements. The Foreign Office can help with this, the trade envoys can

:07:53.:07:55.

help, as can the business Department itself.

:07:56.:08:01.

Can I say to the Prime Minister that I saw very closely the work he did

:08:02.:08:06.

during the riots, I am very grateful for that. He will recognise that

:08:07.:08:09.

some of my constituents are among the poorest in Britain. In these

:08:10.:08:15.

very tough economic times, it is the poorest that will suffer. Does he

:08:16.:08:22.

recognise that young people, or people and actually, many

:08:23.:08:25.

middle-class people who voted to Remain want a plan, and that lies

:08:26.:08:31.

behind the call for a second referendum on the detail?

:08:32.:08:36.

As I have said, what I think needs to happen is that we need to set out

:08:37.:08:42.

the options for a model of leaving. The next Government will take this

:08:43.:08:44.

decisions, and the next Government will have to confront the issue that

:08:45.:08:49.

he raises, of how to involve parliament in those decisions. But

:08:50.:08:52.

that is good to be something for them, not for me.

:08:53.:08:58.

An echo many comments that the Prime Minister has been a true

:08:59.:09:01.

meadowsweet, not just for this country, but also the party. If it

:09:02.:09:05.

wasn't for him, we should not have such a diverse field of Members of

:09:06.:09:11.

Parliament behind him. Can I also say that, in my constituency, many

:09:12.:09:17.

businesses are concerned that trade missions abroad will be put on hold.

:09:18.:09:22.

Can we make sure in this period, while we are still in Europe, that

:09:23.:09:27.

those missions planned before will continue? We must continue to work

:09:28.:09:30.

for this country. I thank my honourable friend for her

:09:31.:09:34.

kind remarks, I can certainly give the assurance that trade missions

:09:35.:09:36.

will continue. If anything, they will be stepped up.

:09:37.:09:42.

My dirty Prime Minister back to the resignation of the European

:09:43.:09:45.

Commissioner? -- might I take the Prime Minister back. Might I

:09:46.:09:49.

recommend he makes a replacement within weeks rather than months?

:09:50.:09:54.

I omitted on is as fast as we can. The process on appointments include

:09:55.:10:03.

hearings in the European Parliament. But as a full paying member, we're

:10:04.:10:08.

entitled to a Commissioner. I wish to put on record my thanks to

:10:09.:10:14.

the Prime Minister for the support he is given to BAE Systems, many of

:10:15.:10:19.

whom the many women who are apprentices who work in my

:10:20.:10:25.

constituency. The Prime Minister has visited that planned more often than

:10:26.:10:29.

all his predecessors combined, such as the level have this dedication.

:10:30.:10:33.

And as for his reassurance that the people who worked on the Typhoon

:10:34.:10:42.

fighter that this Government will do everything it can to secure the

:10:43.:10:45.

future is? I will continue to do everything I

:10:46.:10:48.

can to support BAE Systems. I enjoyed watching a flyover over

:10:49.:10:54.

Cleethorpes on Saturday, and I will continue to work as hard as I can to

:10:55.:11:00.

secure orders abroad. The mayor for London has rightly

:11:01.:11:03.

expressed his concerns about the consequences that Brexit will have

:11:04.:11:07.

on the London economy, jobs and growth. That is clearly a concern

:11:08.:11:12.

for the whole country. Given that the financial sector relies on

:11:13.:11:15.

retaining passport and rights to the European markets, will the Roman

:11:16.:11:20.

guarantee this will be a top priority for negotiations with the

:11:21.:11:24.

EU? And does the primers to agree with the mayor for London that

:11:25.:11:27.

London needs a seat at the table for the forthcoming negotiations with

:11:28.:11:33.

the EU? As I said my statement, London

:11:34.:11:38.

should be involved. Financial services are 7% of economy. Two

:11:39.:11:41.

thirds of the geography outside London. Access to the single market

:11:42.:11:46.

is vital, so I hope they will make their job Howard as we seek the

:11:47.:11:51.

closest possible economic Roissy get we can with Europe.

:11:52.:11:59.

We must position ourselves to make the most of opportunities in the

:12:00.:12:07.

long term. Will my right honourable friend agree with me that we should

:12:08.:12:11.

concentrate on a comment's strong fundamentals, and not talk our

:12:12.:12:17.

economy and country down? My honourable friend is absolute

:12:18.:12:19.

right, we must talk about strength is, and they continue to be right

:12:20.:12:24.

and stop we must continue with the difficulties we face.

:12:25.:12:32.

Thank you Mr Speaker. The Treasury Select Committee in his report into

:12:33.:12:35.

our membership of the new European Union looked at the short run of

:12:36.:12:41.

risks and volatility, much of that is now manifesting itself with the

:12:42.:12:45.

shortfall in sterling and the volatility of the stock exchange and

:12:46.:12:49.

with element bond yield at an all-time low. What actions are the

:12:50.:12:53.

Government taking now to protect British jobs, growth and living

:12:54.:12:57.

standards? The honourable lady is right, the

:12:58.:13:01.

Treasury Secretary did look at this and wonder volatility, we have seen

:13:02.:13:05.

that volatility. We've seen that in the Bank of England and treasurer

:13:06.:13:08.

reaction, as well as the volatility, we have to look at at the dangers of

:13:09.:13:12.

uncertainty. The Government stands ready to help in any way can. But

:13:13.:13:18.

this is reassuring business at all relationships will continue while

:13:19.:13:23.

we're in negotiations. There be big challenges ahead.

:13:24.:13:29.

The honourable member has started bombing, I think we should hear him.

:13:30.:13:30.

Mr Dominic Greene. Whilst we must accept the referendum

:13:31.:13:40.

decision, is it not the case that the problem we run is that in the

:13:41.:13:44.

course of the campaign statements have been made by those advocating

:13:45.:13:49.

road leave that were firstly false, and secondly, in many cases,

:13:50.:13:53.

unfulfilled or? Isn't one of the things that came out so clearly from

:13:54.:13:58.

this referendum campaign the increasing disconnect between the

:13:59.:14:03.

public and those of us in this house who are in authority, as they would

:14:04.:14:09.

see it. What can we do and what should we be doing to restore the

:14:10.:14:14.

trust? I have to say to my Right Honourable Friend, who has behaved

:14:15.:14:17.

impeccably on this matter, and I would like to pay thanks for as long

:14:18.:14:22.

service to this country that if we do not restore the trust, it seems

:14:23.:14:26.

to me that the role of this house is fatally undermined. Has he spoken

:14:27.:14:38.

for his charm as well? No. I thank my Honourable Friend for his

:14:39.:14:42.

remarks. One of the concerns the road this referendum is that people

:14:43.:14:48.

are disaffected with politicians and politics but also expert opinion as

:14:49.:14:52.

well. What we need to do is recognise that we're moving from a

:14:53.:14:56.

situation we have today and a number of hypothetical situations, to real

:14:57.:15:01.

choices. That is where this house and the Government and all the rest

:15:02.:15:04.

can come into their own by setting out in a very cool and neutral way

:15:05.:15:08.

what these alternatives are what the costs and benefits are, and then

:15:09.:15:11.

perhaps we can restore some of the trust. This morning the Chancellor

:15:12.:15:18.

said that action to address the impact of the referendum on our

:15:19.:15:22.

economy and public finances won't be taken until the autumn. At a time of

:15:23.:15:29.

such risk and uncertainty, and with continuing weaknesses in our

:15:30.:15:33.

economy, I find that staggering. Will the Prime Minister reconsider

:15:34.:15:36.

this decision and bring forward a proper plan? Particularly to secure

:15:37.:15:45.

the investment that our economy will need to whether the incoming storm.

:15:46.:15:51.

I would say to the Honourable Lady that the Chancellor was referring to

:15:52.:15:54.

the idea of there being fiscal measures that might be necessary if

:15:55.:15:59.

the economic impacts of leaving are as bad as some of the independent

:16:00.:16:04.

forecasters suggested. It was the idea of some form of budget he was

:16:05.:16:08.

referring to. The Government stands ready with the Bank of England and

:16:09.:16:11.

others to take necessary measures to help create stability in markets

:16:12.:16:18.

that might be necessary. Can I warmly thank my Right Honourable

:16:19.:16:21.

Friend for his statement today? I have long hoped for this day ever

:16:22.:16:24.

since I stood right here in first move the motion that there should be

:16:25.:16:29.

a referendum on Ireland Bishop of the European Union bag on the 24th

:16:30.:16:36.

of October in 2011. Can I ask my Right Honourable Friend, what does

:16:37.:16:39.

he think it says about the nature of the European Union that several

:16:40.:16:43.

member countries reportedly want to punish the UK simply because a

:16:44.:16:49.

majority of people had the temerity to vote to leave it? Let me

:16:50.:16:55.

congratulate my Honourable Friend on his long campaign. I would say to

:16:56.:17:00.

him that I think when we look at the reaction of the European Union to

:17:01.:17:05.

these events we should be very careful not to entirely take it

:17:06.:17:09.

through the filter of media outlets that want only to see one reaction.

:17:10.:17:14.

What I am sensing from the conversations I have had with the

:17:15.:17:18.

Germans, the French, the polished, the Italians and others, is that

:17:19.:17:23.

they are genuinely sad to see the United Kingdom girl, they genuinely

:17:24.:17:25.

want to have a good and strong relationship with us when we leave,

:17:26.:17:30.

but obviously they like us have to think of their own interests just as

:17:31.:17:35.

we have giving of our own interests. The fact that the 27 member states

:17:36.:17:41.

are meeting without the kingdom, we should not see that as surprising.

:17:42.:17:47.

That would happen where we are not to leave, they will fight for their

:17:48.:17:50.

interest. What we have to try and do is try to convince them and try to

:17:51.:17:56.

maintain inner selves good and open and strong relations with them so

:17:57.:17:59.

that actually this becomes a dialogue leading to a mutually

:18:00.:18:02.

beneficial result rather than a war of words or something worse but then

:18:03.:18:14.

leads to a painful divorce. The response to my Honourable Friend was

:18:15.:18:19.

simply woeful. Scotland overwhelmingly voted to remain

:18:20.:18:24.

within the European Union, 62%, every local authority in Scotland.

:18:25.:18:28.

We value our EU membership, we are European nation. What does he know

:18:29.:18:32.

say to the people of Scotland who believe that we should remain within

:18:33.:18:36.

the European Union. What do we do now? What we do now is make sure we

:18:37.:18:43.

get the very best outcome from this negotiation so it is good for the

:18:44.:18:46.

United Kingdom and good for Scotland. It is all very well him

:18:47.:18:51.

waving his finger, but that is actually what matters most to the

:18:52.:18:58.

people of Scotland. Can I pay tribute to my Right Honourable

:18:59.:19:01.

Friend for his leadership over many years and thank him for that?

:19:02.:19:06.

Carlisle so pay tribute to the German Chancellor for her measured

:19:07.:19:09.

and wise words over the weekend? Which I believe has set a good town

:19:10.:19:15.

for the negotiations. Can I ask my honourable friend what measures have

:19:16.:19:20.

been taken to ensure we strengthen bilateral relations right now

:19:21.:19:24.

between us and all other 27 members of the European Union now that we

:19:25.:19:28.

will not beginning with them through the filter of the European Union in

:19:29.:19:32.

future? Let me thank him for his remarks. One of the great roles of

:19:33.:19:36.

the Foreign Office going forward is to concentrate on those bilateral

:19:37.:19:41.

relations even as we conduct this complicated and difficult

:19:42.:19:44.

negotiation. We have embassies in every single European country, we

:19:45.:19:47.

have strong bilateral relations will stop I was the first British prime

:19:48.:19:53.

Minster to visit some of the further flung parts of the European Union,

:19:54.:19:57.

and in whatever capacity I will do whatever I can to keep those

:19:58.:19:59.

provisions strong because that will help in negotiations for our future

:20:00.:20:06.

in Europe. I picked up a leaflet this morning in my London flat which

:20:07.:20:12.

was an official leaflet of the Leave campaign which said that the NHS

:20:13.:20:16.

could get an extra ?350 million per week as a result of a vote to leave.

:20:17.:20:21.

Can the Prime Minister tell us when the NHS can expect to receive that

:20:22.:20:30.

money? I think... Obviously until we leave the European Union we will

:20:31.:20:33.

continue with our contributions to the European Union, and at that

:20:34.:20:37.

moment my successor will have to explain where the money is going.

:20:38.:20:48.

Thank you. The City of London boasts some of the best global lawyers

:20:49.:20:51.

anywhere in the world. Can I urge the Prime Minister that he speak to

:20:52.:20:56.

the Law Society of Scotland, the losses idea of Northern Ireland and

:20:57.:21:01.

the of England and Wales to ensure that we get the very best British

:21:02.:21:04.

lawyers who will undertake part of the negotiation team's effort? He

:21:05.:21:10.

makes an important point. When I talk about this EU unit, which will

:21:11.:21:13.

have the best and brightest in the civil service, it is important

:21:14.:21:16.

because the best and brightest from the private sector, without lawyers,

:21:17.:21:20.

financial experts are trade experts. We want all this expertise to come

:21:21.:21:24.

forward in what will be a massive national endeavour. I understand why

:21:25.:21:30.

there are courteous prefaces to many questions, and I think that is

:21:31.:21:33.

appreciated in the house. But now it would be useful if we could just

:21:34.:21:38.

have single, short supplementary questions, because the Prime

:21:39.:21:40.

Minister is giving a replace sink replies. In short, sitting to

:21:41.:21:47.

question. Does the Prime Minister think reciprocating a collapse in

:21:48.:21:51.

the value of sterling, a fall in the value of our equities and a

:21:52.:21:54.

suspension of trading and our banks amounts to Britain taking back

:21:55.:22:01.

control? I think I have said there are financial consequences that we

:22:02.:22:04.

need to manage in the days and weeks ahead. Further to the question of my

:22:05.:22:13.

friend from Beaconsfield, does he accept that there was a very clear

:22:14.:22:18.

perspective is sold to the electorate voted to leave which

:22:19.:22:22.

included an explicit promise to end on skilled migration from the

:22:23.:22:26.

European Union? This was explicit, this was what they voted for. Does

:22:27.:22:31.

he believe that can be delivered? I think one of the greatest challenges

:22:32.:22:34.

will be negotiating the best possible access to the single market

:22:35.:22:39.

and balancing the issue of the best management and control of migration.

:22:40.:22:43.

That will be a decision for the future Prime Minister. It will be

:22:44.:22:46.

one of the most important that he or she and the Cabinet will have to

:22:47.:22:54.

take. 78% of voters in my constituency voted to remain. In no

:22:55.:22:59.

small part due to the contribution the EU makes both to higher

:23:00.:23:02.

education and a large financial services sector in Edinburgh. What

:23:03.:23:06.

is the Prime Minister doing to reassure my constituents and

:23:07.:23:09.

constituents all over this country of the uncertainty that he has

:23:10.:23:12.

created by calling this referendum in the period up to the article 50

:23:13.:23:17.

being introduced to this house, after the article 50, and beyond

:23:18.:23:21.

Brexit? Because there is uncertainty, and they're worried

:23:22.:23:26.

about jobs and future livelihoods. Firstly we have to respect the

:23:27.:23:29.

outcome of the referendum. It is right not to trigger Article 50

:23:30.:23:33.

because that starts a process that within two years has to result in an

:23:34.:23:37.

accident, and it might be an unmanaged except if it started to

:23:38.:23:41.

soon. To people working in financial services, including the 100,000 that

:23:42.:23:43.

working in financial services, including the 100,000 at work in

:23:44.:23:45.

Edinburgh and Glasgow, an important part of our economy, went to work as

:23:46.:23:48.

hard as we can, and including Aberdeen, Aberdeen asset management,

:23:49.:23:54.

to give them a plug. We have to do everything we can to get the pot the

:23:55.:23:59.

best possible access to the single market. In addition to the work that

:24:00.:24:09.

the unit of the Chancellor of the Duchy of Lancaster will be doing to

:24:10.:24:12.

look outwards into the European Union and our relation with that,

:24:13.:24:18.

but he also look at the preservation of the United Kingdom? Yes.

:24:19.:24:31.

Splendid. Like many others across this house I have been saddened and

:24:32.:24:36.

deeply distressed to hear of some terrible racist and xenophobic

:24:37.:24:39.

incidents recently. In fact, during the course of this debate I've been

:24:40.:24:43.

sent a message to see a young lady in my constituency has been told to

:24:44.:24:47.

go home. This is her home, and she is very welcome here. Will the Prime

:24:48.:24:51.

Minister therefore agree to reconvene and Arjun meeting of a

:24:52.:24:54.

cross-party commission to look at race hate crimes and how we can

:24:55.:24:58.

eradicate this cancer from our society? She's absolutely right in

:24:59.:25:03.

the point she makes, and as for the organisation she mentions, I will

:25:04.:25:07.

look into it. One of the greatest achievements of this Prime Minister

:25:08.:25:09.

has to make the job of eliminating youth unemployment no longer an

:25:10.:25:14.

impossible dream but an achievable mission. While I agree that might

:25:15.:25:18.

have become more challenging, like him I agree we must accept the

:25:19.:25:21.

outcome of the referendum. Would he agree that who've is his successor,

:25:22.:25:27.

he or she should ensure that the opportunities and life chances for

:25:28.:25:30.

young people are the heart of their mission? Whatever route we take

:25:31.:25:35.

through this difficult pathway of access to the single market and

:25:36.:25:40.

control of migration, one of the best ways to control migration is to

:25:41.:25:42.

increase the apprenticeships and opportunities to our own young

:25:43.:25:46.

people in our own country to fulfil the jobs that our economy is

:25:47.:25:52.

creating. Key industries in my constituency, notably agriculture

:25:53.:25:55.

and fish processing, face very challenging times because they rely

:25:56.:25:59.

on European market access and also depend quite heavily on migrant

:26:00.:26:04.

workers to meet labour shortages. The Scottish Government is already

:26:05.:26:07.

meeting with stakeholders in an attempt to steer through these

:26:08.:26:10.

turbulent times. But what is the Government doing to shore up

:26:11.:26:15.

confidence in these sectors? And can the Prime Minister give us any

:26:16.:26:17.

indication when he will be in a position to indicate what the status

:26:18.:26:25.

of EU workers will be? In terms of reaching out to businesses in

:26:26.:26:27.

different sectors, the Business Secretary will do that, he is

:26:28.:26:31.

holding a large meeting tomorrow with businesses. I will do the same

:26:32.:26:34.

later in the week. I'm happy to look at some of the interests she

:26:35.:26:38.

mentions. In terms of the answer I gave on the rights of EU workers,

:26:39.:26:42.

they continue until we leave this organisation, and if I have heard

:26:43.:26:46.

correctly what those who want us to leave have said, that the rights of

:26:47.:26:49.

those already here, students and workers, will be protected. I also

:26:50.:26:56.

pay tribute to the premised, but does he agree with me that in

:26:57.:26:58.

negotiating the excellent it is absolutely crucial that each of the

:26:59.:27:03.

nations of the kingdom are formally represented? Yes, it is important

:27:04.:27:10.

that the negotiation and negotiating mandate is drawn up with the

:27:11.:27:13.

involvement of all those constituent parts of the UK. Thank you. Can the

:27:14.:27:25.

Prime Minister tell us what justification is the Leader of the

:27:26.:27:28.

House and the Secretary of State for Northern Ireland have given him for

:27:29.:27:32.

claiming that should we leave the European Union there will be ?350

:27:33.:27:41.

million a week to spend on the NHS? I don't want to re-fight the

:27:42.:27:44.

campaign. Obviously there was a disagreement about whether with a

:27:45.:27:49.

smaller economy we would have less money or other by leaving the EU

:27:50.:27:52.

would have more money. We are now putting that to the test, and the

:27:53.:27:55.

results will be clear for all to see. I am pleased to hear that the

:27:56.:28:03.

unit is being set up, can the Prime Minister I sure that resources will

:28:04.:28:06.

not be diverted from the life chances agenda which he has been so

:28:07.:28:10.

instrumental in any end, and which mean so much to the people of

:28:11.:28:12.

Portsmouth? And that he will continue with good pace. I can

:28:13.:28:18.

certainly give that assurance. The key European issues will be from the

:28:19.:28:23.

Foreign Office, Treasury and Cabinet Office, and the agenda she talks

:28:24.:28:26.

about is very important in the weeks ahead.

:28:27.:28:33.

Given it the disdain shown by many leading Leave campaigners for EU

:28:34.:28:41.

environmental protections, can the Prime Minister tell me what stance

:28:42.:28:45.

will now be taken as the European Union looks at the fitness of the

:28:46.:28:50.

nature directors? And will we still be lamenting the EU circular economy

:28:51.:28:54.

package? We remain full members of the EU and

:28:55.:28:59.

must meet our obligations as full members of the EU, including the

:29:00.:29:03.

existing directors that we have. I think that's important. Obviously

:29:04.:29:06.

those matters will then be matters for a future Government. In the

:29:07.:29:10.

meantime, we carry on obeying the rules set out.

:29:11.:29:16.

There is another group of people who are hurting since the result of the

:29:17.:29:24.

referendum on Thursday. And that's the elderly, who had been told time

:29:25.:29:28.

and time again that they have let down Britain and let down the use of

:29:29.:29:34.

this country. But the Prime Minister confirm that the elderly are valued

:29:35.:29:38.

in this country? That the voices of equal merit to young people, and

:29:39.:29:43.

that we value them greatly? Of course my honourable friend is

:29:44.:29:47.

right. The key thing in any referendum is that every vote is

:29:48.:29:49.

worth the same. Single sentence questions.

:29:50.:29:57.

The overwhelming majority of my constituents and indeed Scotland

:29:58.:30:00.

voted to remain in the European Union, does the Prime Minister

:30:01.:30:03.

agreed that it would be a democratic outrage if you know to be stripped

:30:04.:30:08.

European citizenship? What I want is the best possible

:30:09.:30:11.

outcome for the United Kingdom, and there for the best possible outcome

:30:12.:30:15.

for Scotland, that is what matters the most.

:30:16.:30:20.

I joined colleagues in speaking out against racism and hatred. I

:30:21.:30:24.

actually voted for 16 and 17-year-olds to have a vote in the

:30:25.:30:28.

referendum, but worlds have the utmost respect for people of all

:30:29.:30:33.

ages who voted, whether they are the elderly pensioners, many whom served

:30:34.:30:40.

our nation in years of peril. I congratulate my honourable friend

:30:41.:30:43.

in speaking out on racism, we must all continue to do that.

:30:44.:30:50.

Once the Government agrees the terms of the negotiation, is that not the

:30:51.:30:55.

time that this House should make a judgment on whether the terms of the

:30:56.:30:58.

negotiation match up to the promises made by the Leave campaign? This

:30:59.:31:02.

House should make that judgment before it goes forward.

:31:03.:31:07.

This House is sovereign, and under the reforms that the Coalition

:31:08.:31:10.

Government put through, this House has all sorts of opportunities to

:31:11.:31:15.

take an issue and vote on it. That happens more often then it hurt when

:31:16.:31:19.

I first became a Member of Parliament. The House must accept

:31:20.:31:24.

the world of the country. The next Government is going to to bring

:31:25.:31:26.

forward its proposals and Article 50 and the rest of it, they will be

:31:27.:31:30.

discussions between the Government and the House on how that goes

:31:31.:31:35.

ahead. Would the Prime Minister agree that

:31:36.:31:39.

it makes little sense for us to be trade balance between could trade

:31:40.:31:47.

barriers between ourselves and the majority of trade markets?

:31:48.:31:53.

Scotland benefits from two single markets, and I'm keen to keep it in

:31:54.:31:56.

one and close as possible to the other.

:31:57.:32:01.

If the Prime Minister can't guarantee today that there's Clinton

:32:02.:32:06.

?50 million for the NHS, and all the other promises made -- 300 ?50

:32:07.:32:16.

million, what does that say about politics?

:32:17.:32:21.

I don't propose to refight the campaign. The point is this, that

:32:22.:32:30.

either what will happen now is that the two side had different

:32:31.:32:33.

arguments, one was that if the economy reduced in size there would

:32:34.:32:37.

be lower tax receipts and less money available, the other side said there

:32:38.:32:40.

be more money because we're leaving the EU. As we are now leaving the

:32:41.:32:45.

EU, we will be able to test which of us answers is correct.

:32:46.:32:51.

What success as the Prime Minister made for preliminary negotiations

:32:52.:32:57.

before triggering Article 50? The assessment that I have made is

:32:58.:33:02.

that it is a national, sovereign decision to trigger Article 50, so I

:33:03.:33:05.

think that's right for this Government to prepare the ground and

:33:06.:33:08.

the next Government to choose the model it things is the right one to

:33:09.:33:12.

pursue. To hold some discussions and then to trigger the Article 50

:33:13.:33:17.

process, which, just the House fully understands, is a two-year limit

:33:18.:33:19.

that can only be extended by a unanimous vote of all other 27

:33:20.:33:25.

members. June that two-year period, if you don't have a arrangement, it

:33:26.:33:31.

moves on to World Trade Organisation rules. I think it is vital we get

:33:32.:33:40.

the best deal for our country. Mr Speaker, thousands of my

:33:41.:33:44.

Edinburgh South West constituents are employed in Edinburgh's

:33:45.:33:48.

financial sector, which is the second-biggest in the UK. Can the

:33:49.:33:51.

Prime Minister give me his assurance that the UK Government will work of

:33:52.:33:55.

the Scottish Government to ensure that constituents's jobs don't face

:33:56.:33:59.

a similar threat to those of the people in the City of London, where

:34:00.:34:04.

it is estimated that up to 70,000 jobs will move abroad in the next 12

:34:05.:34:06.

months? I can certainly give that insurance,

:34:07.:34:11.

this is an important industry for our country. There are jobs in

:34:12.:34:15.

Bristol and Bournemouth that are as valuable as the jobs among them, I

:34:16.:34:18.

want to keep as many of them as possible.

:34:19.:34:28.

One of my councillors told me -- was taught this weekend, get out of this

:34:29.:34:33.

country. Another was told, I cannot wait to send you and the anti-white

:34:34.:34:37.

garbage that you stand for to the third World dons who belong to. What

:34:38.:34:42.

the Prime Minister send out an unequivocal message from this House

:34:43.:34:47.

that if you indulge in and stoke fear, you generate hate?

:34:48.:34:52.

I would add to that, you not only generate hate, you commit a crime

:34:53.:35:01.

and should be prosecuted. With a volatile currency, the are

:35:02.:35:06.

fears that petrol prices could rise sharply if sterling falls faster

:35:07.:35:09.

than the oil price. These views are been heightened by the Chancellor's

:35:10.:35:13.

threats, prerendered, of a punishment budget. The Prime

:35:14.:35:19.

Minister issue motorists that they will not enforce F hike on fuel

:35:20.:35:26.

duty? What I said at the time is that

:35:27.:35:30.

nobody wants to have an extra budget or any difficult measures for taxes

:35:31.:35:38.

or spending. Any Government has two reactor the economic circumstances

:35:39.:35:41.

it faces. Let up the circumstances aren't as bad as the experts

:35:42.:35:47.

predicted. Over the next five years, the

:35:48.:35:52.

northeast was due to receive ?726 million in a EU funding. But the

:35:53.:35:56.

Prime Minister give some much-needed reassurance to the regions currently

:35:57.:36:01.

relying on hundreds of millions of pounds of EU funding that they will

:36:02.:36:05.

still receive the same amount from Whitehall?

:36:06.:36:10.

I can't give that reassurance today, obviously, but we heard Jerry the

:36:11.:36:13.

campaign, those arguing that we should leave, we will do everything

:36:14.:36:18.

we can to help disadvantaged areas of the country, farmers and the rest

:36:19.:36:23.

of it, with the best situation we can. I'm sure that is what will

:36:24.:36:27.

happen. There has been no mention of Wales

:36:28.:36:31.

yet in this debate, we have been speaking for one hour 38 minutes.

:36:32.:36:35.

What the Prime Minister agreed to speak out for our future prosperity

:36:36.:36:39.

and commit as best he can to Wales' place in the European Economic Area?

:36:40.:36:47.

I mentioned Wales and my statements, I have spoken to the First Minister,

:36:48.:36:51.

and I appeared on a platform with Carwyn Jones and the member that

:36:52.:36:57.

just spoke. That's real, brilliant as it was, was not enough to

:36:58.:36:59.

convince the people of Wales to remain in. It is important that we

:37:00.:37:04.

make sure Welsh voice is heard loud and clear. Wales has had a lot of

:37:05.:37:10.

important investment because we are in the single market. I would say it

:37:11.:37:15.

is worth making sure the voice is heard.

:37:16.:37:21.

As well as jobs in the ceramic industry, many of my constituents

:37:22.:37:24.

rely on the logistics sector, and all of us, all of our constituencies

:37:25.:37:33.

need the logistics centre. Given the fears of what is happening in Calais

:37:34.:37:37.

to the hauliers coming across, what reassurances can the Prime Minister

:37:38.:37:39.

give to the haulage industry that what is happening in Calais will

:37:40.:37:44.

stay there and not happen in Folkestone or Dover?

:37:45.:37:48.

We supported the treaty establishing has the border in Calais. We will do

:37:49.:37:52.

everything we can to make sure the French state their side the bargain.

:37:53.:37:59.

The Prime Minister will no doubt have seen the First Minister move

:38:00.:38:02.

quickly to reassure EU nationals living and working in Scotland that

:38:03.:38:09.

they are welcome and valued. In the Highlands, we need EU citizens. They

:38:10.:38:12.

are not only essential to our economy, they are friends and

:38:13.:38:14.

neighbours. Order. I'm not prepared to have

:38:15.:38:22.

these speeches. That is a speech, what I want is a one sentence

:38:23.:38:26.

question. There is an years gesticulating at me, the honourable

:38:27.:38:29.

gentleman has to do what he has been asked today. One sentence please.

:38:30.:38:37.

The Prime Minister said in a statement they would be no immediate

:38:38.:38:41.

changes in their circumstances. Given that Scotland voted so heavily

:38:42.:38:48.

to stay in the use, EU... This is a decision that will have to

:38:49.:38:53.

be made by the new Government as it negotiates its position outside the

:38:54.:38:56.

European Union. I would very much hope that the rights and allowances

:38:57.:39:01.

given to European Union citizens here and now working, studying and

:39:02.:39:09.

contributing will continue. I wonder if the Prime Minister

:39:10.:39:13.

regret not giving 16 and 17-year-olds the chance to have a

:39:14.:39:17.

say in the future of this country? I have always believed that a team

:39:18.:39:21.

is the right age to have that vote, and I have always voted accordingly.

:39:22.:39:29.

This is a Government that Scotland did not elect. We had a referendum

:39:30.:39:33.

that Scotland did not once, and Scotland is being taken out of your

:39:34.:39:36.

act against our will. It is the Prime Minister agreed that there has

:39:37.:39:40.

been a fundamental change in circumstances from September 2014?

:39:41.:39:46.

What I say is that we need to focus on now getting the best of the

:39:47.:39:49.

United Kingdom and getting the best eel for Scotland. It's worth

:39:50.:39:54.

looking, actually, at the Daily Record poll today which indicates

:39:55.:39:58.

that it is not the case necessarily that Scotland is looking for a

:39:59.:40:02.

second referendum. Just because she doesn't like what you read is,

:40:03.:40:08.

doesn't mean she should not read it. The Prime Minister keeps saying that

:40:09.:40:11.

our economic fundamentals are strong, but are membership of the

:40:12.:40:15.

you're was one of those economic fundamentals. And as Camp Nou to

:40:16.:40:20.

speak to the Chancellor - has now fled this House - to set up a cancer

:40:21.:40:28.

to the planned Brexit negotiation to increase spending to the north?

:40:29.:40:33.

The Chancellor sat through a lot of this statement and the responses. He

:40:34.:40:37.

made a very clear statement this morning. The guarantee I can give

:40:38.:40:41.

her is that he and I will remain in our post until the new Government

:40:42.:40:44.

arrives and if there is action we need to take, if there are

:40:45.:40:48.

reassurances we need to give, we will do all we can to make sure our

:40:49.:40:55.

economy continues to succeed. European citizens in my constituency

:40:56.:41:01.

are worried about the messages and lack of clarity given by the Leave

:41:02.:41:06.

campaign. Does the Prime Minister realise how little reassurance this

:41:07.:41:10.

brings? The only reason I'm saying no

:41:11.:41:14.

immediate changes is because I'm trying to accurately reflect the

:41:15.:41:17.

legal situation which is this - people are free at the moment to

:41:18.:41:21.

come and live and work in the United Kingdom. Let me just repeat that if

:41:22.:41:26.

they come here and cannot support themselves, we can ask them to

:41:27.:41:29.

leave, that is important, that has been the case was some time. But

:41:30.:41:34.

songs were members of the European Union, that continues. The point at

:41:35.:41:37.

which we go, a Government will have to make a decision about what to

:41:38.:41:41.

negotiate with the rest of Europe about the rights of Europeans to

:41:42.:41:44.

come and live and work here. There will be visas or work permits or

:41:45.:41:49.

what have you, and then there will be consequences, potentially, for a

:41:50.:41:53.

British citizen is going to live and work in Europe. You have the

:41:54.:41:58.

opportunity to camp tribute to all of these discussions. I must react

:41:59.:42:05.

appropriately from this dispatch box. Or can say is that as long as

:42:06.:42:08.

you remain in the European Union we will continue to contribute. 04 from

:42:09.:42:13.

those campaigning to leave is that those rights will continue after

:42:14.:42:17.

have left. Does the Prime Minister except that

:42:18.:42:23.

maintaining very strong UK participation in Europe-wide

:42:24.:42:25.

scientific research collaboration needs to be an important strand of

:42:26.:42:28.

the work that he describes going forward?

:42:29.:42:32.

I very much agree with the right honourable gentleman. It is an area

:42:33.:42:35.

we have got more out of Europe than we put in, and weekly want to

:42:36.:42:40.

safeguard that for the future. Does the Prime Minister agree with

:42:41.:42:45.

me at 55% of people in Scotland voted against independence was

:42:46.:42:49.

another to keep Scotland in the union, then 63% of them voting to

:42:50.:42:53.

remain member of the EU should be enough to keep Scotland in the EU?

:42:54.:42:58.

You can make the Congress points, which is that Scotland had voted to

:42:59.:43:01.

leave the United Kingdom, it would have left the European Union

:43:02.:43:08.

already. Thank you. Some discussion in June

:43:09.:43:15.

this statement revolved around the response of members of this House to

:43:16.:43:20.

the decision of last week. Can I suggest to him that throughout my

:43:21.:43:24.

experience of 24 years in this House, I have regarded my own

:43:25.:43:29.

responsibility to look people of my constituency who voted two to 14

:43:30.:43:35.

remaining in European Union. But I will oppose any measures that come

:43:36.:43:38.

before this House that will seek to undermine them.

:43:39.:43:44.

Members have devoted the see fit. My sense is that it would be wrong to

:43:45.:43:49.

do this regard will of the British people, but clearly in the future,

:43:50.:43:53.

this house will be confronted about all sorts of different decisions

:43:54.:43:56.

about the nature of a relationship with Europe and the rules and

:43:57.:43:58.

regulations, and the house will have its say. Can I ask the Prime

:43:59.:44:05.

Minister that if mechanisms were to emerge as yet unseen which would

:44:06.:44:09.

allow Scotland to remain in the European Union passed allowing

:44:10.:44:13.

England and Wales to leave, would he facilitate such an approach would he

:44:14.:44:17.

prefer to feel the appetite of the Scottish people for their own

:44:18.:44:23.

self-government? Obviously I want Scotland to stay inside the United

:44:24.:44:27.

Kingdom, and it is a United Kingdom decision to leave the European

:44:28.:44:29.

Union, and so what we should focus on is the best deal for the United

:44:30.:44:33.

Kingdom, the best deal for Scotland. That is the question, it is not

:44:34.:44:37.

could be a referendum but should there be a referendum? Does the

:44:38.:44:43.

Prime Minister agree that one of the more positive things he could do in

:44:44.:44:47.

the time left to him will be to ensure that this house has the

:44:48.:44:52.

opportunity to vote before the summer recess, not just on the

:44:53.:44:56.

Trident successor programme but on the building of the third runway at

:44:57.:45:01.

Heathrow? There are a number of decisions that we are going to have

:45:02.:45:06.

to look at in the light of the new circumstances with which we are

:45:07.:45:10.

faced. I will do that over the coming days. I want to make sure

:45:11.:45:14.

this parliament is still debating, discussing and deciding important

:45:15.:45:18.

issues, and I will set out in the days to come but I think those

:45:19.:45:23.

important issues should be. Is it not the case that this is the

:45:24.:45:26.

biggest foreign policy disaster for a Conservative Prime Minister since

:45:27.:45:34.

Suez? But specifically on the Scottish question cometh the

:45:35.:45:36.

Scottish parliament backed by the Scottish people calls for a

:45:37.:45:38.

referendum on Scotland's independence in Europe, will you

:45:39.:45:41.

leave a note for the next by Minister to say, you must accede to

:45:42.:45:45.

the wishes of the Scottish people and allow that referendum? The point

:45:46.:45:51.

I would make is not could there be a second referendum but should there

:45:52.:45:54.

be a second referendum? And I don't believe there should be. That is the

:45:55.:45:58.

point I would make, and if you look at the daily record poll today it is

:45:59.:46:01.

not clear that the Scottish people want a second referendum. Like me,

:46:02.:46:04.

they want to focus on getting the best relationship for the United

:46:05.:46:09.

Kingdom with Europe. Let's try and keep all the single markets

:46:10.:46:17.

together. Thank you, Mr Speaker. At the weekend I received an e-mail

:46:18.:46:20.

from a teacher in my constituency saying that children from ethnic

:46:21.:46:23.

minority and EU heritage background were crying and telling me they were

:46:24.:46:26.

going to have to leave. Other children told them their parents

:46:27.:46:32.

were proud and it was great. The teacher said they reassured all the

:46:33.:46:35.

children and talked about the fact that everyone here would be able to

:46:36.:46:39.

stay, but that our community was afraid. Could the prime Minster tell

:46:40.:46:42.

the house what guidance is given to teachers and headteachers? I'm sure

:46:43.:46:45.

that my school was not the only one affected. What I would say to the

:46:46.:46:50.

Honourable Lady is that we should be very proud of our diversity in this

:46:51.:46:53.

country, the welcome we have given to immigrants and refugees coming to

:46:54.:46:57.

our country, and we're proud the contribution they make. That message

:46:58.:47:01.

list quite loud and clear. Just because we are leaving the youth it

:47:02.:47:04.

will not make us a less tolerant, less diverse nation. That needs to

:47:05.:47:08.

quote loud and clear from all of us, whatever side of the debate,

:47:09.:47:11.

whatever we felt about the campaign at some of the posters in it. During

:47:12.:47:18.

the independence referendum Scottish people were told of the no to

:47:19.:47:20.

preserve their place within the European Union. Will the Prime

:47:21.:47:24.

Minister now give Scotland an apology for this false promise? At

:47:25.:47:29.

Scotland voted to leave the United Kingdom it would have been out of

:47:30.:47:36.

the European Union. I don't know... I... You don't need many

:47:37.:47:44.

conversations with the Spanish by Minister to the difficult it would

:47:45.:47:50.

be to get back in. I'm a regular traveller between Northern Ireland

:47:51.:47:56.

and the Republic. I never thought I would see that broader goal, I weep

:47:57.:47:59.

at the thought of advertising. It beggars belief that the Secretary of

:48:00.:48:03.

State for Northern Ireland remains in that post. Can the Prime Minister

:48:04.:48:06.

tell us what discussions he has had with the Taoiseach since Friday? I

:48:07.:48:12.

have spoken to the Taoiseach and I will see him again tomorrow, and

:48:13.:48:15.

he's taking an incredibly constructive and helpful approach.

:48:16.:48:19.

He is very sad that Britain has decided to leave the European Union,

:48:20.:48:23.

but the relationship between Britain and the republic is I think stronger

:48:24.:48:25.

than it has been for many years. What we have to do is sit down with

:48:26.:48:31.

officials in Northern Ireland, and in the Republic, and worked out what

:48:32.:48:34.

is the best way of conserving and keeping all the parts of the Common

:48:35.:48:38.

travel area that have been so beneficial, and how can we do that

:48:39.:48:42.

in a world in which we are not in the EU? It will be difficult, but we

:48:43.:48:47.

have to find a way through. I feel to see how a Prime Minister who is

:48:48.:48:50.

working his notice can guarantee the continued involvement in devolved

:48:51.:48:54.

administrations over a two-year period, but can the Prime Minister

:48:55.:48:58.

confirm that the Scottish Government's initial involvement

:48:59.:49:00.

they will be able to represent the will of Scotland which are staying

:49:01.:49:04.

in Europe for Scotland? Cabinet agreed this morning that there

:49:05.:49:07.

should be the greatest possible involvement of Scotland, Wales, the

:49:08.:49:11.

Government in Northern Ireland in drawing up and understanding all the

:49:12.:49:14.

challenges that we need to meet in this big session. The level of lies,

:49:15.:49:20.

malice, exaggerations in both campaigns degraded the level of

:49:21.:49:25.

public discourse to a state where Nolan would believe politicians in

:49:26.:49:30.

the future. Is this not a threat to the whole status of politics and

:49:31.:49:37.

democracy? I don't actually agree with that. I think the turnout

:49:38.:49:40.

showed that people took this referendum campaign very seriously.

:49:41.:49:46.

The complex negotiations prior to triggering Article 50 will shape the

:49:47.:49:51.

future of Britain. Would it not be right in the cold light of day for

:49:52.:49:54.

the British public to have a referendum on the facts in front of

:49:55.:49:59.

them, that future that they can then see and be able to remain at home in

:50:00.:50:06.

Europe if they so wish? We had a referendum on a very important

:50:07.:50:12.

principle question about in or out. What needs to happen now is

:50:13.:50:16.

different models of out need to be properly examined. Parliament should

:50:17.:50:19.

debate them. That Government should make a decision, that is what should

:50:20.:50:26.

happen. Why doesn't the Prime Minister just commit to match the

:50:27.:50:31.

money for Wales, the north-east and all the other places that presently

:50:32.:50:35.

receive EU funding? He has made a lot of commitments already today, so

:50:36.:50:39.

he could certainly do that. I will do a deal with him. If he does, I

:50:40.:50:43.

will make a contribution to building a statue of him somewhere in Wales.

:50:44.:50:50.

I'm so glad that my resignation set of such a generally action,

:50:51.:50:54.

including the honourable gentleman. It has been like filling a leaky

:50:55.:50:57.

bucket, or you pour in, the faster you have to go. I have forgotten

:50:58.:51:03.

what the question was. The money! Obviously it is the point at which

:51:04.:51:06.

Britain leaves the European Union that a future Government will have

:51:07.:51:11.

to make the decision how to match the money for Cornwall, Wales,

:51:12.:51:15.

farming. That is not a commitment I can get now. I very much hope that a

:51:16.:51:19.

future Government will be able to, but it will depend on economic

:51:20.:51:22.

circumstances and the decision at the time. The constituency are

:51:23.:51:28.

present posted by Wessex 27% to remain calm and in Scotland it was

:51:29.:51:38.

62%. -- six to 7% can he understand Scotland position about being

:51:39.:51:45.

dragged out against their will? My constituency voted to remain in

:51:46.:51:52.

United Kingdom, but we are a United Kingdom and we take this decision on

:51:53.:51:57.

a United Kingdom basis. There are over 1.5 million 16-17 -year-olds in

:51:58.:52:01.

the UK, and the referendum was won or lost depending on your point of

:52:02.:52:05.

view by 1.5 million votes. As the Prime Minister still have no regrets

:52:06.:52:09.

about allowing 16 and 17-year-olds essay in their future? I'm sorry,

:52:10.:52:14.

but I don't think it would be right to change my mind about an issue

:52:15.:52:17.

simply because it would have helped my side in the debate. Quite, you at

:52:18.:52:27.

the back. That is why I stuck to the view I have taken all along that 18

:52:28.:52:31.

is the right age, and I often find going around secondary schools in

:52:32.:52:36.

the country and in my constituency, very often find when you ask sixth

:52:37.:52:39.

formers, there is quite strong support, sometimes majority support,

:52:40.:52:46.

but keeping it at 18. How does the Prime Minister's devilish and

:52:47.:52:51.

respect agenda like to the constituents of Glazunov who voted

:52:52.:52:54.

to remain? And what is the message to one of my constituents whose

:52:55.:52:58.

parents live in Spain and who are increasingly concerned about the

:52:59.:53:00.

impact this what will happen their health care? What I would say,

:53:01.:53:05.

respectfully, is that we had a vote on Scotland remaining in the United

:53:06.:53:09.

Kingdom, and we had the Edinburgh agreement that said that the results

:53:10.:53:14.

should be respected. That meant that Scotland was part of United Kingdom,

:53:15.:53:17.

the outer kingdom has now had a vote on its militia but the European

:53:18.:53:23.

Union, and that is how we do things. 7000 people are employed in the

:53:24.:53:27.

ceramics industry in the city of Stoke-on-Trent. 50% of their traders

:53:28.:53:33.

to the European Union, and their employers are incredibly concerned

:53:34.:53:37.

about the future. What reassurances can he get that the industry is safe

:53:38.:53:42.

outside of the European Union? I think the ceramics industry is a

:53:43.:53:44.

classic example of one needs to make his voice heard, and I will make

:53:45.:53:49.

sure this happens, and that we get a good negotiation. If at the end of

:53:50.:53:51.

two years Britain were to come out of the European Union without an

:53:52.:53:54.

adequate deal, we could be facing quite large tariffs on, for

:53:55.:53:59.

instance, ceramics. It is a very good argument about why we need to

:54:00.:54:03.

think this through carefully, then trigger article 50, and make sure

:54:04.:54:07.

during that process we protect those industries' access to those markets.

:54:08.:54:13.

Earlier he described the financial and economic action to Brexit as an

:54:14.:54:17.

adjustment. I presume that was a euphemism. Does he believe that

:54:18.:54:21.

trillions of pounds being wiped off the share value of global companies,

:54:22.:54:25.

the pound at a 31 year low of the threat of tens of thousands of jobs

:54:26.:54:28.

moving to the continent is just an adjustment? The reason I use the

:54:29.:54:35.

word adjustment is this, there are short-term financial effects, and we

:54:36.:54:39.

have seen that. My worry is there will be longer-term uncertainty

:54:40.:54:42.

affects. The adjustment I'm talking about is that people and businesses

:54:43.:54:46.

will be concerned about the access of the UK to crucial markets, and

:54:47.:54:50.

therefore there might be a more fundamental adjustment. What we need

:54:51.:54:54.

to do now, the decision has been taken to leave, is that we make sure

:54:55.:54:58.

we get the best possible access to the markets to the judgment is a

:54:59.:55:04.

small as possible. Could I ask the Prime Minister what reassurances you

:55:05.:55:08.

will give to businesses in my constituency and also the future of

:55:09.:55:10.

regeneration projects that were funded through the EU and the jobs

:55:11.:55:15.

that are rolling to those projects? What I can say is that the budget

:55:16.:55:20.

money is set out from 2014 - 2020, and all that money, while where

:55:21.:55:23.

members of the EU, will continue to be spent. And the crucial decision

:55:24.:55:28.

will be for the next Government at the point of departure, which could

:55:29.:55:33.

be 2017, 2018, 2019, or later, at that height to give reassurances to

:55:34.:55:38.

him or his constituents about how that European money might be

:55:39.:55:41.

replaced with something else. If everybody is to get in, the

:55:42.:55:45.

questions must be shorter, otherwise they just will not get in. Very

:55:46.:55:50.

short questions. Does he agree that there are profound lessons to be

:55:51.:55:53.

loud at that dispatch box and the one opposite about how we listen to

:55:54.:55:56.

and responsibly address the perfectly legitimate concerns that

:55:57.:56:01.

good, decent, working-class people have about things like I'm skilled

:56:02.:56:07.

immigration? And also the consequent self-evident alienation they feel

:56:08.:56:09.

about their current political leadership? Immigration was a key

:56:10.:56:16.

issue in this election, I was hoping that welfare restrictions I had

:56:17.:56:18.

negotiated would help to address that. Because people feel a very

:56:19.:56:22.

clear sense in this country that you should not have something for

:56:23.:56:24.

nothing. People should pay end before they take out. Clearly that

:56:25.:56:28.

was not enough to reassure people stop and also I think there has been

:56:29.:56:33.

a lot of immigration from outside the EU over many, many years, and

:56:34.:56:36.

people want to see the system brought under better control and

:56:37.:56:39.

management. That is what needs to happen and we need to have a

:56:40.:56:42.

rational debate about it. The result of common ground between the two

:56:43.:56:45.

parties about it, and that is what we should get on with. He said a

:56:46.:56:52.

leave what was like putting a bomb under the economy. Is that part of

:56:53.:56:56.

his long-term economic plan? I thought the economy would be better

:56:57.:56:59.

off if we had stayed, the British people made a different decision,

:57:00.:57:02.

now we need to do your best to make sure we safeguard the economy in the

:57:03.:57:06.

new reality. In the last debate we had on the EU the Foreign Secretary

:57:07.:57:10.

said the problem for the UK was that we had no experience trade forgot

:57:11.:57:15.

heaters left in the civil servants. -- trade negotiators. What is the

:57:16.:57:20.

Government doing to train up people to be able to negotiate on trade

:57:21.:57:23.

deals? We will increase our capacity in that vital area. Earlier this

:57:24.:57:29.

year you give me on my commute to the great honour of commemorating

:57:30.:57:34.

the Clydebank floods in your own home. And since that period in 1941

:57:35.:57:38.

but Nato and will begin the EU has delivered both military and economic

:57:39.:57:42.

peace and prosperity for Europe. Does the British Government led by

:57:43.:57:45.

this prime Minster not agree with my community that he has delivered us

:57:46.:57:50.

from peace into unparalleled chaos? What this Government has delivered

:57:51.:57:55.

for Scotland is actually record rates of employment growth and

:57:56.:57:57.

business growth as part of a successful economy. The people of

:57:58.:58:01.

United Kingdom have decided to take a different path with respect to

:58:02.:58:04.

Europe, we must do all we can to continue to safeguard the economies

:58:05.:58:06.

of all countries of the United Kingdom. As anyone that has played

:58:07.:58:12.

an active role in the Remain campaign will know, for a huge

:58:13.:58:17.

number of people who voted Leave, immigration was their top concern,

:58:18.:58:19.

and they believe that this degree negotiation would lead to them

:58:20.:58:25.

ending free movement. I regret that, but does he believe that those

:58:26.:58:29.

people that now try to airbrush that out when they inherit this situation

:58:30.:58:30.

will end in tears? As I have said I think one of the

:58:31.:58:39.

most difficult decision for a future Government is how to balance access

:58:40.:58:42.

to the single market, the best we can get, with decisions about

:58:43.:58:46.

immigration. I don't know what exact answer can be found. The answer I

:58:47.:58:51.

found was welfare reform, which was bold and brave, because axing meant

:58:52.:58:54.

reducing welfare payments to newly arrived migrants, changes that now

:58:55.:59:01.

will not go ahead, so that will continue for a couple of years. But

:59:02.:59:06.

we have to find a solution to that problem. We want access to the

:59:07.:59:12.

single market, but we have to do better when it comes to immigration.

:59:13.:59:16.

In response to repeated questions from this pensions, the Prime

:59:17.:59:23.

Minister has wanted to reduce one of the most ancient and proud nations

:59:24.:59:27.

in this world to the status of an England County. Can I suggest we

:59:28.:59:35.

continue to do that, there should be no Scotland Office?

:59:36.:59:39.

I do not intend to do that, Scotland is a proud part of the United

:59:40.:59:46.

Kingdom, and I would continue to congratulate all that Scotland

:59:47.:59:50.

brings to the UK. All I want to point out is that when you make a UK

:59:51.:59:53.

wide decision, not everyone gets what they want.

:59:54.:59:58.

Order. When the Prime Minister addresses this House contents of

:59:59.:00:02.

late and attends all of our questions, years at entitled to a

:00:03.:00:07.

courteous hearing and not being heckled.

:00:08.:00:16.

I commend the Leader of the Opposition on his condemnation of

:00:17.:00:19.

the race attack on eight constituent of mine yesterday. He was one of the

:00:20.:00:26.

same generation of polls who fought for this country in the Battle of

:00:27.:00:32.

Britain. What the Prime Minister expressed his solidarity with the

:00:33.:00:35.

Polish community and all our migrant communities who are now feeling

:00:36.:00:37.

under threat? I am very happy to do with that. As

:00:38.:00:44.

someone who lived in that constituency previously and mothers

:00:45.:00:49.

brother centres -- parlour centres well, I go past but Polish War

:00:50.:00:55.

Memorial, and say to the polish people you meet a great contribution

:00:56.:00:58.

to our country, these attacks are hateful.

:00:59.:01:03.

Young people across the UK voted overwhelmingly to remain in the EU.

:01:04.:01:07.

And as the Prime Minister what specifically he will do to reassure

:01:08.:01:10.

and support young people that they will have opportunities to live,

:01:11.:01:18.

work and thrives across the EU? Those opportunities are not yet been

:01:19.:01:22.

taken away. I would urge young people to make a voice hard, so when

:01:23.:01:26.

we go into negotiation, we try to get the very best arrangements for

:01:27.:01:30.

people's ability to study and get work.

:01:31.:01:36.

Our great research institutions rely heavily on funding from the European

:01:37.:01:41.

Union. The Prime Minister suggest nothing changes immediately, but for

:01:42.:01:44.

a research is the threat of immediate and real. Can you tell the

:01:45.:01:47.

House would support he will to help them this uncertain times?

:01:48.:01:53.

What I can add to what I have said before is that all contracts will be

:01:54.:01:58.

honoured. So the British Yunis university has won a contract, that

:01:59.:02:05.

contract will be honoured. The issue is post-leaving how we will

:02:06.:02:12.

safeguard those opportunities. The Prime Minister has rightly

:02:13.:02:15.

condemned the worrying wave of post-Brexit racism. Willie

:02:16.:02:19.

absolutely commit to the prevent strategy and indeed funding

:02:20.:02:29.

generally to stamp out xenophobia? I think we should continue with the

:02:30.:02:33.

Prevent strategy. I'm happy to look at anything that will strengthen our

:02:34.:02:42.

stance on hate crimes. The two were promised at

:02:43.:02:46.

continuation of subsidies and support. What reassurance can the

:02:47.:02:50.

Prime Minister given that this will continue to be the case?

:02:51.:02:54.

I will say what I said you in the campaign, as far as I'm concerned, I

:02:55.:02:58.

want a living, working countryside where we continue to support our

:02:59.:03:02.

farmers. That was guaranteed as part of the EU out until 2020. What is

:03:03.:03:08.

the to happen now is those foreign payments will continue until we

:03:09.:03:11.

leave, at that point a new Government will have to make a

:03:12.:03:18.

decision. -- farm payments. Our countryside is as it is because it

:03:19.:03:22.

is farmed, long may that continue to be the case.

:03:23.:03:26.

The devastated citizens are unimpressed by party leaders who

:03:27.:03:31.

simply say that they did their best in this campaign. Will he take the

:03:32.:03:34.

opportunity at the end of this long session to say sorry for what he has

:03:35.:03:37.

done? What I would say is that I made a

:03:38.:03:45.

pledge of holding a renegotiation and a referendum, and I kept that

:03:46.:03:48.

I'd about renegotiation and referendum. I'm sure we've got

:03:49.:03:54.

lessons to learn. I will I will say is that I threw absolutely

:03:55.:03:57.

everything into that campaign. I believed head, heart and soul in

:03:58.:04:02.

what I was saying, the merits of my case. I did everything to get it

:04:03.:04:08.

across. But if you lose, you have to accept the verdict of the British

:04:09.:04:13.

people. In my part, except that means you also have to accept that

:04:14.:04:16.

someone else should take leadership of this great country. I am proud of

:04:17.:04:21.

the action I took and fought as hard as I did.

:04:22.:04:29.

48% of the country wake up sick at heart and angry everyday. Now, large

:04:30.:04:36.

numbers of people outside voted for Brexit are also waking up sick and

:04:37.:04:41.

angry when they find that they were lied to about money for the NHS and

:04:42.:04:45.

immigration. How does the Prime Minister hope to build unity in this

:04:46.:04:51.

country with a Government that may well include people who misled the

:04:52.:04:55.

British public in this vote and referendum?

:04:56.:04:59.

As I say, we now have to come back as one Government which has accepted

:05:00.:05:04.

the will of the British people to leave the European Union. We have to

:05:05.:05:07.

find the best way for our country as we do that. That should be the

:05:08.:05:11.

focus. There is no point in refighting the campaign, we have had

:05:12.:05:14.

that, now we should make the best case for a country that we can.

:05:15.:05:20.

Can I take this opportunity to thank the Prime Minister for attending the

:05:21.:05:23.

National Armed Forces event in Cleethorpes on Saturday. It was very

:05:24.:05:27.

appreciative, especially after the events of the previous 48 hours. I

:05:28.:05:33.

particularly appreciated by the forces, both past and present. To

:05:34.:05:37.

return to the subject matter, although the Prime Minister has

:05:38.:05:41.

already clearly stated there is, perhaps it is appropriate at the end

:05:42.:05:46.

if you could reaffirm something which my constituents have nagging

:05:47.:05:51.

doubts over, whether the Government will deliver Brexit? And he

:05:52.:05:54.

reaffirmed that will happen? I thank him for those one work and

:05:55.:05:59.

that he and the people Cleethorpes kidney on Saturday. I've heard

:06:00.:06:03.

something about hiding away after the referendum, I was there on stage

:06:04.:06:06.

on Armed Forces Day, representing our great Armed Forces in front of

:06:07.:06:11.

an enormous clout in Cleethorpes with a brilliant display and a very

:06:12.:06:15.

good fly past, much past and all the rest. But I say to my honourable

:06:16.:06:24.

friend is that we will ever have a renegotiation, these things did

:06:25.:06:29.

happen, we available other people, we are a democracy, that is what we

:06:30.:06:32.

will do. I thank all colleagues, but critical

:06:33.:06:37.

of the 110 backbenchers who question the Prime Minister. And hats I can

:06:38.:06:41.

congratulate the Prime Minister for the enormous dignity, grace and good

:06:42.:06:45.

humour that he has displayed this afternoon in attending, in detail

:06:46.:06:51.

and at length, to our enquiries. I say, I hope behalf of the whole

:06:52.:06:55.

House, something we don't set off enough - and Q. -- thank you. Point

:06:56.:07:04.

of order. In this House we fight passionately

:07:05.:07:09.

for the rights of British citizens, but Mr Speaker, leaving the EU

:07:10.:07:14.

impacts directly on UK citizens in the EU and in the UK, who is right

:07:15.:07:18.

we have heard from the Prime Minister are secure, but only in the

:07:19.:07:22.

short term. Mr Speaker, do you believe the procedures in this House

:07:23.:07:25.

are fit for purpose when it comes to issuing the Government represents

:07:26.:07:30.

the interests and assures the security of EU citizens in the UK

:07:31.:07:34.

and UK citizens in the EU effectively?

:07:35.:07:40.

I must say to the Right Honourable gentleman, forgive me, I don't think

:07:41.:07:42.

there is a matter contained within that purported point of order that

:07:43.:07:48.

relate to the procedures of the House for the protection of the

:07:49.:07:54.

interests of the European Union citizens. Notwithstanding the

:07:55.:07:58.

expression of unrivalled solemnity on the face of a former deputy

:07:59.:08:04.

leader of this House as he put that point of order to me, I am still

:08:05.:08:10.

struggling to come to terms with the notion that it is a point of order,

:08:11.:08:15.

rather than a point of perfectly legitimate and understandable

:08:16.:08:22.

concern, frustration and anxiety. In so far but it is the latter, the

:08:23.:08:27.

right honourable gentleman is sufficiently experienced and

:08:28.:08:30.

accomplished parliamentarian to find several opportunities further to

:08:31.:08:34.

expand on his concerns in the days and weeks that lie ahead. Point of

:08:35.:08:46.

order, Mr peat washer. Can the legislative programme be

:08:47.:08:50.

reviewed following the dramatic decision made last week?

:08:51.:08:58.

Ask him again. As a courtesy, I should hear the

:08:59.:09:01.

right honourable gentleman once more, but I'm not sure the point

:09:02.:09:04.

will improve with repetition. But we can try! I do beg the gentleman's

:09:05.:09:09.

pardon as I was hearing from someone else at the time. Can we hear it

:09:10.:09:15.

again? I'm sure it is not in dishes. Have you been approached by the

:09:16.:09:20.

Leader of the House to have an urgent review over the legislative

:09:21.:09:24.

programme given the dramatic decision taken last week?

:09:25.:09:29.

The answer to that is no. There will be the opportunity of dozens

:09:30.:09:37.

questions on Thursday -- business questions on Thursday. An occasion

:09:38.:09:41.

in which the honourable gentleman is very familiar, but have I had any

:09:42.:09:48.

indication of the business statements before then, or an

:09:49.:09:52.

intended revisiting of the business of the House, or of the legislative

:09:53.:09:57.

programme? The answer is no. Point of order, Mr Ian Blackford.

:09:58.:10:06.

It has been brought to my attention that a debate in which I attended

:10:07.:10:12.

and spoke on the 24th of June, 2015, on the subject of broadband in

:10:13.:10:15.

Westminster Hall, in my notes I should an indication was to declare

:10:16.:10:21.

I financial interests, I sadly failed to do so in a debate. I

:10:22.:10:25.

wanted to take the opportunity today to Gregory put and apologise to the

:10:26.:10:28.

House for the error in not doing so on the 24th of June last year.

:10:29.:10:34.

We are very grateful to the honourable gentleman forgiven me

:10:35.:10:36.

notice he wished to raise this matter. I also appreciate the fact

:10:37.:10:43.

that he has now, although somewhat belatedly, put the record straight.

:10:44.:10:48.

Let me say thank you to him on the principle, better late than never.

:10:49.:10:50.

Thank you. Point of order.

:10:51.:10:56.

This morning the Chancellor indicated two contrary views - one

:10:57.:11:02.

that we face in the days of the media they had a great turbulence,

:11:03.:11:05.

and secondly that he was going to postpone the urgency budget until

:11:06.:11:09.

after the Tory leadership crisis was resolved. -- emergency budget. Much

:11:10.:11:17.

we face an crisis will have an impact on the Government's finances,

:11:18.:11:21.

should we not have greater clarity before we undertake the scrutiny of

:11:22.:11:27.

this finance bill? That is what I was asking!

:11:28.:11:33.

The matters which the honourable gentleman wishes to treat are

:11:34.:11:37.

contained within the Bill, he may well have a perfectly good

:11:38.:11:41.

opportunity to air his concerns undertake scrutiny today. I would

:11:42.:11:47.

just say to him - I am very grateful to him for giving me notice of this

:11:48.:11:50.

point of order - it is perfectly clear the Government intends to

:11:51.:11:55.

proceed with the committee stage of the Finance Bill today, and and they

:11:56.:12:03.

will be in accordance with the agenda. I must say, that although

:12:04.:12:10.

the new member is an accomplished person with much life experience,

:12:11.:12:14.

while... LAUGHTER

:12:15.:12:20.

I meant by that he has a personal the world, a cerebral individual.

:12:21.:12:25.

While debate must be focused on the amendments selected, I have no doubt

:12:26.:12:28.

that the honourable gentleman will find ways to weave into his

:12:29.:12:34.

contribution some reference to the general concerns that he has just

:12:35.:12:38.

ventilated. I'm sure the honourable gentleman will find his own

:12:39.:12:41.

salvation, I have every confidence in him. He should have every

:12:42.:12:45.

confidence in himself. We'll leave it there for now, if there are no

:12:46.:12:49.

further points of order, I think we will proceed, and I call the

:12:50.:12:57.

minister - I thank all colleagues - I call the most to call motion

:12:58.:13:02.

number one. Thank you. The question is as on the order paper. As many as

:13:03.:13:05.

are of the opinion, say "aye". To the contrary, "no". I think the eye

:13:06.:13:14.

Mike we're have it. As many as are of the opinion, say "aye". To the

:13:15.:13:24.

contrary, "no". The ayes bit. The client will now proceed to read the

:13:25.:13:26.

orders of the day. Finance Bill. We begin. Government

:13:27.:14:05.

amendment to 22 the clause seven, which which will take the other

:14:06.:14:09.

amendments, clusters, schedules and new quotas listed on the paper.

:14:10.:14:21.

Thank you. It is a great pleasure Dee pleasure to move these causes.

:14:22.:14:34.

If I may say at the beginning, as I mentioned to the speaker earlier and

:14:35.:14:38.

you will have noted that somewhat incapacitated with a back strain. I

:14:39.:14:44.

will be taking interventions today, but if I may, with your permission,

:14:45.:14:52.

I will remain standing during those interventions. Bobbing up and down

:14:53.:14:56.

would be a little discomforting. If I may have your permission. Please,

:14:57.:15:06.

don't sit down. I would like to say that if you had not made that point,

:15:07.:15:09.

I was going to offer my permission having once been in the dreadful

:15:10.:15:14.

position of standing there on crutches with a broken leg. Whereas

:15:15.:15:21.

it is possible to stand still, going up and down is exceedingly difficult

:15:22.:15:24.

and I am sure that the whole house has every sympathy for the Minister.

:15:25.:15:32.

I'm sure the House will concur in giving permission to remain on his

:15:33.:15:37.

feet. Thank you. I am grateful for those remarks. The measures that I

:15:38.:15:42.

will outline today in the simple clear and fair tax treatment of

:15:43.:15:46.

employment income and benefits. They strengthen the incentives to choose

:15:47.:15:51.

the cleanest cars and vans and ensure that those who have used

:15:52.:15:55.

artificial arrangements to avoid paying tax pay their fair share.

:15:56.:16:00.

Given the number of clauses selected for the debates, I would like to

:16:01.:16:05.

briefly set out how I will speak on them today. I will firstly discuss

:16:06.:16:16.

clauses eight two 11. I will then outline clause seven and then

:16:17.:16:24.

clauses 12 up until 17. And finally I will outline clause 18. Let me

:16:25.:16:34.

first turn the clause eight, which will increase the appropriate

:16:35.:16:38.

percentage for conventionally fuelled cars by three points by

:16:39.:16:46.

2019. It will also widen the tax advantage of ultralow emission cars

:16:47.:16:52.

over the conventionally fuelled cars compared to previously announced

:16:53.:16:56.

plans. As a result of these changes, in 2019 a basic rate taxpayer

:16:57.:17:01.

driving a ultralow emission company car will be ?113 better off. Close

:17:02.:17:09.

nine makes a minor technical update to ensure the legislation works as

:17:10.:17:17.

intended. This update applies to a small number of rare company cars.

:17:18.:17:24.

It is estimated that exposure to nitrogen dioxide is linked with

:17:25.:17:30.

23,500 deaths annually in the UK, costing approximately ?13.3 billion.

:17:31.:17:37.

As announced at the statement and 2015, clause ten retains that diesel

:17:38.:17:48.

company cars until 2020, 20 21. This will support the UK's transition

:17:49.:17:53.

from diesel cars to cleaner, zero Archer emission cars. As a result of

:17:54.:17:58.

this change, a basic rate taxpayer with an ultralow emission car will

:17:59.:18:06.

save money in 2017 when compared to an employee with an average diesel

:18:07.:18:13.

company car. Clause 11 retains the van benefit charge for deal emission

:18:14.:18:19.

bands at 20% of the rate paid by conventionally fuelled fans for 2016

:18:20.:18:27.

to 26 17. Rather than increasing to 40% and 60% as currently planned.

:18:28.:18:32.

This means a basic rate taxpayer driving a zero emission band will

:18:33.:18:41.

save ?126 in 2017 and ?128 in 2018. These two clauses will incentivise

:18:42.:18:46.

business employees to take up the cleanest cars and vans and will help

:18:47.:18:50.

ensure the market for these new technologies becomes established in

:18:51.:18:55.

the UK and support the UK carbon emissions and air quality targets.

:18:56.:18:59.

If I made, in anticipation of what we would hear from the opposition,

:19:00.:19:05.

let me turn to amendments to and three. These amendments would

:19:06.:19:11.

require the exception of diesel cars from paying the supplement if the

:19:12.:19:14.

have the same supplements as petrol cars. I appreciate that we want to

:19:15.:19:21.

incentivise people to purchase the cleanest cars. These amendments will

:19:22.:19:25.

only serve to introduce confusion. They are not linked to the wider

:19:26.:19:30.

regulatory programme to achieve the latest air standards. Even when cars

:19:31.:19:36.

are driven on our roads. Clause ten retains the supplement until 2021

:19:37.:19:43.

when these new standards will be mandatory for all new cars. This

:19:44.:19:47.

approach is transparent and easy to understand and will give consumers

:19:48.:19:52.

confidence that all new diesel cars are in parable to petrol. Our

:19:53.:19:55.

approach incentivise is people to purchase the cleanest cars and in

:19:56.:20:02.

anticipation of what will be said later, I do hope that the party

:20:03.:20:06.

opposite would press these amendments, let me now turn to the

:20:07.:20:11.

clauses in the session which clarify and so provide the tax treatment of

:20:12.:20:14.

income on certain benefits and insure certain benefits in the tax

:20:15.:20:19.

system. Clause seven will clarify how the cash equivalent of certain

:20:20.:20:24.

tax benefits are a calculator. The ensure that fair bargain does not

:20:25.:20:31.

apply to those benefits with the level of computing the value of the

:20:32.:20:36.

benefit is set out in statute. The Government has made some minor

:20:37.:20:45.

technical changes set out amendments 22 to 26, which ensure the

:20:46.:20:48.

legislation is maintained. All income from an employed or

:20:49.:20:56.

previously employed sports person will be taxable, but we are aware

:20:57.:21:01.

that careers in sport can be short. We have also introduced an exemption

:21:02.:21:05.

for the first ?100,000 or income received from a sporting testimonial

:21:06.:21:09.

that is not contractual or customary. The Government believes

:21:10.:21:13.

that this is a fair compromise and the vast majority of employed sports

:21:14.:21:16.

persons who have testimonials will not be impacted. Clause 13

:21:17.:21:23.

introduces a statutory exemption for certain benefits costing up to ?50

:21:24.:21:28.

that employers provide to their employees. This also provided tax

:21:29.:21:32.

treatment of these benefits and reduce the administrative burden for

:21:33.:21:37.

employers. To insure that the exemption is not misused a ?300

:21:38.:21:41.

annual cap will apply in certain circumstances. This is a sensible

:21:42.:21:45.

and simple five measure which will reduce burdens on employers. Turning

:21:46.:21:59.

to clause 14 it will ensure that no business can have a tax advantage

:22:00.:22:04.

from claiming abroad. It is Mr Bush sensible that people are not able to

:22:05.:22:10.

claim tax relief on the cost of ordinary commuting. Individuals who

:22:11.:22:15.

are engaged through intermediaries such as umbrella companies and their

:22:16.:22:19.

employers can get to benefit from this relief of the cost of commuting

:22:20.:22:26.

from home to work, simply because of the way they are engaged to work.

:22:27.:22:33.

Just on that point, the Secretary of State looked at the fact that this

:22:34.:22:37.

will have disproportionate impact on rural communities where travel is

:22:38.:22:41.

much more expensive and sometimes an overnight stay is necessary when

:22:42.:22:47.

undertaking these roles? I will talk about clause 14 a little bit more,

:22:48.:22:51.

but I do believe this is a matter of fairness and in the case of the vast

:22:52.:22:56.

majority of people, home to work costs don't have tax relief applied

:22:57.:23:03.

to it. I think it is right that we apply the same rules across the

:23:04.:23:09.

board here and there just because an arrangement is made through an

:23:10.:23:16.

umbrella company or another form of intermediaries, that we see a

:23:17.:23:22.

difference in treatment. The clause will put these workers on the same

:23:23.:23:25.

terms as everybody else. This underpins the Government's

:23:26.:23:31.

commitment to ensure the tax is fair and treats all individual doing same

:23:32.:23:37.

thing in the same way. I the semi-Minister balls argument, I do.

:23:38.:23:40.

But this is offering a disincentive to many people who have chosen to go

:23:41.:23:47.

down the self-employed route. Does he not share the concerns that we

:23:48.:23:52.

and others have that this may act as a disincentive to entrepreneurship

:23:53.:23:55.

with being a contractor or self-employed being the first step

:23:56.:23:57.

to forming another business and employing other people? I understand

:23:58.:24:03.

where the honourable gentleman is coming from, but I don't share these

:24:04.:24:07.

concerns. It doesn't seem to me that it is justifiable that simply by

:24:08.:24:17.

arranging a fares in a particular way through an intermediary that

:24:18.:24:20.

somebody benefits from tax relief for travel to work costs. Anyway

:24:21.:24:29.

that someone else doesn't. As much as I, as I think all sides do,

:24:30.:24:36.

recognise that it is important that we have an entrepreneurial economy

:24:37.:24:39.

and the importance of the self-employed within our economy. It

:24:40.:24:43.

doesn't seem to me that there is a strong case for saying that the

:24:44.:24:48.

difference in treatment in terms of tax relief should apply. That is why

:24:49.:24:51.

we have come forward with the measures that we have. In recent

:24:52.:24:56.

years there has been a substantial increase in the number of workers

:24:57.:25:01.

who aged through an employment intermediary. While many employment

:25:02.:25:05.

intermediaries play a legitimate role in the labour market,

:25:06.:25:08.

increasingly some of their market themselves at least in part on the

:25:09.:25:12.

basis that they allow individuals and businesses to maximise their

:25:13.:25:15.

income through claiming tax relief on home to work travel expenses. The

:25:16.:25:22.

increase on the use of intermediaries now means large

:25:23.:25:29.

numbers of individuals are claiming tax relief. With this change we

:25:30.:25:34.

estimate that the service will save the general taxpayer over ?150

:25:35.:25:41.

million this year and over ?600 million by 2019 to 2020. This change

:25:42.:25:51.

will ensure fairness for all individuals and businesses

:25:52.:25:53.

regardless of the structure workers are employed through. I suppose in

:25:54.:26:04.

this context, let me just say, in terms of Government amendment 27, we

:26:05.:26:09.

have introduced an amendment, a technical amendment, to correct a

:26:10.:26:15.

point in the original draft. In terms of new clauses one and three,

:26:16.:26:23.

if I may anticipate arguments that the SNP in a moment, both new

:26:24.:26:27.

clauses would require the Chancellor to publish a report on the impact on

:26:28.:26:33.

workers who provide services on intermediaries for tax purposes

:26:34.:26:38.

within six months of the passing of this Bill. These reviews would be

:26:39.:26:42.

completely unnecessary. Robbie those who provide their services through

:26:43.:26:45.

intermediaries are tax is either employed or self-employed. Some

:26:46.:26:50.

others operate as owner directors of their own companies. The tax

:26:51.:26:55.

treatment of the income and the expenses of these individuals would

:26:56.:26:58.

depend on their employment status for tax purposes. The ATF carried

:26:59.:27:05.

out a review which considered the employment status and taxation of

:27:06.:27:10.

individuals working through intermediaries. The Government

:27:11.:27:21.

committed to a further six more. My recently the Government has received

:27:22.:27:28.

the recommendations which includes the continued developed desire of

:27:29.:27:34.

taxation for small businesses December five tax affairs at a news

:27:35.:27:40.

simple business model that would protect the assets of the

:27:41.:27:44.

self-employed. Following these recommendations, the Government has

:27:45.:27:47.

now formed a cross Government working group on employment status.

:27:48.:27:51.

This group will examine the advantages and challenges of an

:27:52.:27:55.

agreed employment and the balls and statutory employment test. Given the

:27:56.:28:02.

volume and range of the work that has been done in this area recently

:28:03.:28:05.

an additional review I would argue is unnecessary and I therefore urge

:28:06.:28:08.

members to We understand the effort the

:28:09.:28:20.

Government are making, but given we suggested this will save the

:28:21.:28:25.

taxpayer, or to put it another way, cost these individuals, ?600 million

:28:26.:28:30.

over the lifetime of this Government, will he at least be

:28:31.:28:34.

prepared to concede that should the tax yields go automatically - that

:28:35.:28:39.

is to say taking yet more of the self-employed and contracting

:28:40.:28:41.

community - he might want to revisit the decision he is taken today?

:28:42.:28:46.

I don't think the Government will be persuaded by that, I would have to

:28:47.:28:53.

say. Because when that to be the case, that would suggest that the

:28:54.:29:00.

use of tax relief in the circumstances was even more

:29:01.:29:03.

widespread than we had anticipated. And there for the problem we face in

:29:04.:29:09.

terms of the fundamental unfairness... Make no criticism of

:29:10.:29:12.

those making use of intermediaries in the circumstances. They are

:29:13.:29:17.

making use of the law as it currently stands. I do think it is

:29:18.:29:23.

unfair that essentially two people performing essentially identical

:29:24.:29:27.

roles, one is able to gain an element of tax relief and the other

:29:28.:29:32.

isn't, simply because of the way they have structured their

:29:33.:29:35.

arrangements. I do believe the approach we have taken in this

:29:36.:29:41.

clause is the right one. Clause 15 makes changes to allow for the

:29:42.:29:46.

extension of voluntary payroll link to include cash and credit tokens.

:29:47.:29:53.

This will allow businesses to benefit from changes to HMRC, and a

:29:54.:30:01.

system to employers. Changes to schedule three make a number of

:30:02.:30:06.

changes clarifying the rules for finance securities and options.

:30:07.:30:13.

These options are normally used by companies to provide a return

:30:14.:30:16.

incentives to their employees. Remuneration in the form of shares

:30:17.:30:21.

would be generally liable to income tax contributions. However, if they

:30:22.:30:26.

are rewarded under one of the four types of employee share schemes,

:30:27.:30:33.

these are exempt from contributions. Share programmes are greatly valued

:30:34.:30:39.

by employees and companies, the Government wants to make sure these

:30:40.:30:43.

arrangements are simple and clear as possible. To that end, close 14

:30:44.:30:49.

build towards the Government's response to employee share schemes

:30:50.:30:54.

by simplifying and clarifying this area of tax legislation. In

:30:55.:31:03.

addition, clause 17 but in no doubt these arrangements, given the

:31:04.:31:05.

uncertainty in the current law legislation. The trading activities

:31:06.:31:15.

required to receive tax advantages of an enterprise management

:31:16.:31:18.

incentive scheme will continue to apply where the company is

:31:19.:31:22.

controlled by an employees ownership trust. Again, if I may anticipate

:31:23.:31:29.

what we are to hear in future, before I move onto clause 18, will

:31:30.:31:34.

briefly address amendment at hundred and 18 in clause ten, which relates

:31:35.:31:43.

to clause 16. Amendment at hundred and 80 refers to the withdrawal of

:31:44.:31:49.

HMRC by its check service, and associated impacts on employee share

:31:50.:31:54.

ownership schemes. This is unnecessary. HMRC continues to

:31:55.:31:57.

operate a service for employee shareholder status, and the tax

:31:58.:32:02.

advantage scheme is most relevant to small and medium enterprises. HMRC

:32:03.:32:06.

has only withdrawn evaluation takes for income tax in PAYE, these are

:32:07.:32:13.

not part of these recognised employee membership schemes. There

:32:14.:32:18.

are recommendations from less than 0.05% of the SME population. In the

:32:19.:32:27.

vast majority of cases, these originals were acceptable. As such

:32:28.:32:31.

the service as little value and providing a valuable for money for

:32:32.:32:36.

the taxpayer. There are four I hope the House will reject amendment 180.

:32:37.:32:45.

New clause ten proposes that within six bonds of the passing of this

:32:46.:32:49.

act, the Chancellor should publish a report for the value of money

:32:50.:32:53.

provided by each employee share scheme. And HMRC commissioned report

:32:54.:33:01.

considered the effect of tax advantage employee share schemes on

:33:02.:33:06.

productivity. This is publicly available. Due to the difficulty of

:33:07.:33:09.

drawing conclusive outcomes from such studies, in 2012, the office of

:33:10.:33:16.

tax application recommended that it would not be a good use of taxpayer

:33:17.:33:20.

money to produce further reports on the links between share ownership

:33:21.:33:25.

and productivity. However, as with all release, the Government will

:33:26.:33:28.

continue to keep these schemes under review, and will continue to publish

:33:29.:33:33.

regular statistics on the estimated take-up and costs of scheme. For

:33:34.:33:39.

these reasons, I would urge members to reject new clause ten. Now let's

:33:40.:33:45.

make include my opening remarks by addressing clause 18. This

:33:46.:33:50.

Government wants to ensure that companies and individuals have used,

:33:51.:33:53.

or continue to use artificial arrangements to disguise their

:33:54.:33:58.

income pay their fair share. These schemes involve income being

:33:59.:34:01.

funnelled through a third party, with the money off and then being

:34:02.:34:05.

given to the individual in the form of a loan, which has never been

:34:06.:34:11.

repaid. In 2011, the Coalition Government successfully introduced

:34:12.:34:16.

new legislation to tackle schemes in years at the time. Many of those who

:34:17.:34:20.

use these games before 2011 has still not settled. In addition, the

:34:21.:34:23.

tax avoidance industry has been selling new schemes which are even

:34:24.:34:29.

or artificial and contrived. At budget 2016, this Government

:34:30.:34:32.

announced changes to address these issues, and clause 18 as the first

:34:33.:34:39.

part of that package. Clause 18 addresses one type of the schemes by

:34:40.:34:42.

addressing a relief in the current rules which those schemes exploit.

:34:43.:34:49.

There is a tax avoidance motive. It also withdraws a transitional relief

:34:50.:34:52.

from three minor technical clarifications to the current rules

:34:53.:34:56.

to ensure they work as Parliament intends. These reforms make it clear

:34:57.:35:00.

that everyone must pay their fair share. I will not take up any more

:35:01.:35:07.

time for the moment. I'd therefore move that was in 17- 18, schedules

:35:08.:35:16.

two- three, and others stand as part of the Bill.

:35:17.:35:19.

The question is that the amendment be made.

:35:20.:35:25.

A pleasure to appear before you, Sun Roger. I want to give a preview on

:35:26.:35:36.

where I'm going on some of these. I will do the numerically.

:35:37.:35:42.

On clause seven, I do want to probe a little bit on clauses eight, nine,

:35:43.:35:48.

ten and 11 which are to do with vehicles. We support those clauses,

:35:49.:35:58.

but that are two amendments which I would say, sir Roger, although the

:35:59.:36:10.

Minister indicated... If the Government, in spite of myself time,

:36:11.:36:19.

maintains that petition, I will be seeking to continue that. In the

:36:20.:36:24.

vehicle ones we broadly support the amendments two and three. In terms

:36:25.:36:33.

of clauses 12, 13, we broadly support those. In terms of clause

:36:34.:36:38.

14, travelling expenses for workers, we broadly supported, but I do wish

:36:39.:36:45.

to probe the Government on that. On clause 15, we broadly support that.

:36:46.:36:50.

Clause 16, employee share schemes, I want to run that around the block to

:36:51.:36:55.

get a greater indication, because there is a number of employee share

:36:56.:37:00.

option schemes under various guises. I think it's arguably getting a

:37:01.:37:05.

little out of control. Again, the opposition broadly supports clauses

:37:06.:37:12.

17 and 18. Starting with clause seven, this is on the taxable

:37:13.:37:20.

benefits, and it amends 2003 legislation to clarify the concept

:37:21.:37:24.

of a fairer bargain. This is, as I understand that, and I'm not an

:37:25.:37:30.

accountant, it provides an employer some form of benefit in kind which,

:37:31.:37:34.

in some circumstances, is provided at a cost to the employee, and in

:37:35.:37:40.

some circumstances isn't, where those benefits or goods and services

:37:41.:37:45.

are provided at a cost, the revenue wishes to know whether that caused

:37:46.:37:50.

benefits provided is below market rates or not. And clause seven goes

:37:51.:37:58.

to that issue. But it appears to cover bands and cars as well as

:37:59.:38:03.

other things, and we will be looking at other causes to deal with plans

:38:04.:38:11.

and cars. I will say to the Minister, I will try to avoid a

:38:12.:38:14.

situation where he feels he needs to intervene at this stage am because

:38:15.:38:18.

of his back. I have suffered with a bad back decades, I have every

:38:19.:38:29.

sympathy. I trust that he will be able to explain and differentiate

:38:30.:38:33.

for those of us who are not accountant how vans and cars come to

:38:34.:38:37.

the benefit in kind provisions under clause seven. I understand how

:38:38.:38:40.

becoming an subsequent quarters, having for many years had a company

:38:41.:38:44.

car with two different employers will stop I am broadly familiar with

:38:45.:38:48.

that territory, but not clause seven. I wonder if the Minister, in

:38:49.:38:56.

terms of clause seven, to which the Government amendments as well, to

:38:57.:38:59.

what extent the Treasury has found there has been in misuse of the

:39:00.:39:03.

original rules, necessary seating the clarifications which come in

:39:04.:39:09.

subsequent clauses. -- necessitating clarifications. My lodestar in these

:39:10.:39:20.

matters referred to "Uncertainty". I hope the Minister will say what that

:39:21.:39:25.

uncertainty is, so we could be clearer. Moving on to the new tier

:39:26.:39:33.

matters for the official opposition on cars and vehicles and so on. --

:39:34.:39:41.

new tier matters. We are all aware that the use of the tax regime to

:39:42.:39:45.

encourage certain Hagar and discourage other behaviour is well

:39:46.:39:52.

known to have an effect when it comes to the purchase and use of

:39:53.:39:57.

vehicles. Unlike in some other areas, with the tax reliefs are not

:39:58.:40:03.

so clear to their effectiveness and others. I'm looking around the

:40:04.:40:08.

House, and there aren't many members who will remember it, but I remember

:40:09.:40:12.

and supported the campaign for lead-free air. Campaign for

:40:13.:40:20.

lead-free petrol, I should say. In the bad old days, lead was added to

:40:21.:40:25.

petrol as a mechanism for increasing its octane rating, are there for it

:40:26.:40:30.

increased the power output of the petrol, as it were. To produce

:40:31.:40:36.

petrol which did not have led in it, cost more. And in their four, when

:40:37.:40:43.

initially the excise regime was the same, for leaded and unleaded,

:40:44.:40:49.

unleaded cost more. The then Conservative Government, under some

:40:50.:40:54.

rasher for the campaign for lead-free petrol and others, wisely

:40:55.:40:58.

change the excise regime, so that unleaded actual cost less, and the

:40:59.:41:08.

switch was made for many, many motorists within a period of about

:41:09.:41:13.

two years. That was using excise at Weavers to change use in the change

:41:14.:41:20.

of vehicles. We also seen in recent years the explosion in the United

:41:21.:41:25.

Kingdom of the purchase and use of diesel vehicles. Started, I have to

:41:26.:41:32.

say, by a Labour Government which was trying to cut CO2 emissions,

:41:33.:41:41.

because Martha mile, diesel at lower CO2. -- mile for mile. And that

:41:42.:41:47.

succeeded. But it was always a contradictory policy, because there

:41:48.:41:53.

was also, for a benefit in kind and company car traders, a 3% loading by

:41:54.:42:00.

more tax payable for those who had a diesel- powered company car, and

:42:01.:42:05.

contradiction to a petrol- powered company car. So clause eight

:42:06.:42:14.

increases quite markedly the percentage of the purchase price

:42:15.:42:21.

which is then counted as taxable income for somebody who is provided

:42:22.:42:25.

a company car. For example, for low emission gurgles -- vehicles, for

:42:26.:42:34.

those with a CO2 grams protocol matter, - I hope that we leave the

:42:35.:42:42.

European Union we will not revert to Imperial measures - for those

:42:43.:42:51.

vehicles it goes from 19% to 22%. It goes up under 3% every time under

:42:52.:42:55.

clause eight. The Government has announced every two years. I will

:42:56.:43:01.

return to this in the future. Broadly, that looks to us, like a

:43:02.:43:06.

tax raising measure. Nothing wrong with raising taxes, HMRC is about

:43:07.:43:15.

raising taxes, so the Government has sufficient income to provide the

:43:16.:43:18.

services which are constituents wish. I hope the Minister will be

:43:19.:43:23.

able to give an estimate of how much he thinks the increase in those

:43:24.:43:31.

bandings, the percentage of those bandings and clause eight, how much

:43:32.:43:35.

that will bring into the Exchequer, and whether he believes that it will

:43:36.:43:41.

have any effect - positive or negative - on the types of vehicles

:43:42.:43:47.

purchased, given that most people, I think, would agree that the vehicle

:43:48.:43:56.

purchased with lower CO2 emissions purple matter is generally less

:43:57.:44:00.

dirty and more socially acceptable than a vehicle with higher CO2

:44:01.:44:03.

emissions per kilometre. In terms of clause nine, this as I

:44:04.:44:21.

understand it is in parts a correction of problems in the

:44:22.:44:26.

Finance act 2015. Though I confess that I'm not sure if it was the

:44:27.:44:29.

second Finance act of that year, because I think there were two.

:44:30.:44:37.

Clause nine is correcting that. For vehicles which cannot emit CO2. For

:44:38.:44:42.

most of those that would probably mean a electric vehicles, although

:44:43.:44:46.

there may be other types, but those are the most common. Because it is a

:44:47.:44:52.

correction, there will not be the two-year lead in that the Government

:44:53.:44:55.

generally wishes to have so that manufacturers can plan and

:44:56.:45:00.

purchasing managers for fleet operations and so one can plan.

:45:01.:45:04.

Because it is correcting now, which is unfortunate. Can the Government

:45:05.:45:08.

tells a little bit about that and how that will correct? And extra

:45:09.:45:14.

nation on how that error arose would be helpful. I think it is because

:45:15.:45:22.

provisions were overlooked and omitted. Clause ten gets us onto the

:45:23.:45:34.

much meatier issue to do with diesel cars. This clause is diesel car is

:45:35.:45:43.

appropriate percentages. There was as I referred to earlier and I think

:45:44.:45:50.

it was always the case, a 3% in addition to be paid as a benefit in

:45:51.:45:54.

kind as asthma for those who had diesel powered company car is as

:45:55.:46:02.

opposed to petrol powered ones. The Government had and I'm not perhaps

:46:03.:46:12.

sure why, promised or enacted abolishing the 3% loading. And

:46:13.:46:21.

closed ten abolishes the abolition. So the 3% loading continues. On

:46:22.:46:27.

these benches, that seems overall a good thing to do. Given the

:46:28.:46:35.

increasing evidence which is emerging as to the deleterious

:46:36.:46:39.

effects, particularly caused by diesel vehicles, not just diesel

:46:40.:46:45.

cars of course. But many, many commercial vehicles, of course

:46:46.:46:49.

diesel and due to the size and weight of them tend to get fire a

:46:50.:46:55.

few miles to the gallon. That is a particular problem in certain parts

:46:56.:46:58.

of the country. I shall get onto that. In terms of the quality. In

:46:59.:47:07.

terms of the number of vehicles which this will affect, the library

:47:08.:47:11.

has been very helpful and I'm here as always most grateful to my

:47:12.:47:17.

excellent research, image and Watson who has done a huge amount of work

:47:18.:47:22.

on this. A great deal of help from the library as well. The latest

:47:23.:47:26.

figures that the library defined as I understand it, any mistakes I make

:47:27.:47:32.

are mine, not the library or the re-searchers. As I understand it the

:47:33.:47:37.

latest figures that they could find was that there were about 313,000

:47:38.:47:43.

company clients replaced each year. Those figures go back to 2012 and

:47:44.:47:51.

2013. That is around 14% of total new car sales. That is a

:47:52.:47:55.

considerable drop. If you look at the United Kingdom 30 years ago it

:47:56.:48:02.

was nearer 50%. Because of the taxation on company vehicles, that

:48:03.:48:05.

has lessened that proportion. Diesel cars as we now know are particularly

:48:06.:48:20.

noxious. And there are in fact standards which came in for a new

:48:21.:48:23.

type approvals from September 2014 and all new cars from September 2015

:48:24.:48:33.

have to be, when sold in the United Kingdom, compliant with Euro sex.

:48:34.:48:38.

Alas a subsequent Government decides to change that. Regardless of the

:48:39.:48:44.

United Kingdom using the European Union, one words presumed that would

:48:45.:48:51.

continue to apply in this country. Even if there were a Euro seven to

:48:52.:48:57.

be introduced post-Brexit I would suggest that the United Kingdom

:48:58.:49:01.

would comply with that. I manufacturers would have to in order

:49:02.:49:04.

to sell any continental market. At the moment the standards are set out

:49:05.:49:14.

in terms of grounds per column at. I confess that I don't understand all

:49:15.:49:19.

the science. The metrics are the same for petrol and diesel. The

:49:20.:49:25.

targets that the vehicles have to reach are somewhat different. The 3%

:49:26.:49:32.

surcharge, deluding which the Government wishes to retain and we

:49:33.:49:38.

support, will discourage somewhat fleet managers from allowing company

:49:39.:49:43.

cars to be diesel. Even though they will get more miles to the gallon.

:49:44.:49:49.

The Minister and think and he can perhaps correct me, referred to

:49:50.:49:57.

23,500 deaths per year, which is estimated, nobody knows for sure.

:49:58.:50:01.

These things are estimates, but the minister is very helpfully nodding.

:50:02.:50:07.

Those 23,500 premature deaths brought about by low air quality in

:50:08.:50:10.

the United Kingdom is a shocking, shocking figure. Given from memory

:50:11.:50:17.

that the number of road traffic collision fatalities is on the order

:50:18.:50:24.

of 2750. I stand be corrected, but it is that order of magnitude. That

:50:25.:50:29.

is the 10th of the air quality premature deaths. It appears that

:50:30.:50:34.

United Kingdom has quite rightly invested huge amounts in passive and

:50:35.:50:41.

at the safety to cut down on the number of road traffic collisions

:50:42.:50:44.

and in terms of the severity there of. But in terms of air quality,

:50:45.:50:51.

well still a member of the European Union we have been in breach of the

:50:52.:50:54.

European Union legislation. In this case the European union does make

:50:55.:51:00.

rules to the United Kingdom. We're been in breach of those air quality

:51:01.:51:08.

standards for years, for years. The world health organisation has

:51:09.:51:11.

ambient air quality guidelines with which I am sure the Minister is

:51:12.:51:16.

intimately familiar and his ministerial colleagues. These are

:51:17.:51:25.

based on micrograms per cubic metre. There are two ways of measuring

:51:26.:51:30.

that. One is the annual mean and one in the 24-hour mean which I refer

:51:31.:51:36.

peaks. There are two broad categories of the particles which

:51:37.:51:41.

are of particular concern, one is particles of less than ten in

:51:42.:51:52.

diameter and one is PM 2.5. The smile. Those fine particles, less

:51:53.:51:58.

than 2.5 are considered by many to be much more damaging to health than

:51:59.:52:06.

PM ten particles. They are found in dust, dirt, suit and liquid

:52:07.:52:13.

droplets. Without detaining the hazard very great length, there is a

:52:14.:52:20.

large the British cities in England and Wales and Scotland, I don't as

:52:21.:52:28.

she have any figures for Northern Ireland, there is a large number

:52:29.:52:32.

where the air quality consistently reaches those WHO guidelines in

:52:33.:52:41.

terms of the annual mean. For example, the annual mean I commend

:52:42.:52:47.

the shoe in 4pm 2.5, that of the smaller ones, is less than ten

:52:48.:52:51.

micrograms per cubic metre as an annual mean. In Birmingham, just

:52:52.:52:55.

down the road from my constituency in Wolverhampton, it is 14, well

:52:56.:53:02.

above that ten. In Leeds it is 50 and in London it is 50. In

:53:03.:53:08.

Stoke-on-Trent it is 14. In Glasgow, I'm afraid it at 16, well above that

:53:09.:53:17.

time. This is bad, bad news. London has a shocking record, frankly. I

:53:18.:53:25.

have to say the former Mayor of London, now the honourable member

:53:26.:53:28.

for Oxbridge bears responsibility in this regard for not having done

:53:29.:53:38.

enough. In 2016, January, London reach the annual air quality limit

:53:39.:53:44.

in eight days. So if you think of it as annual allowance, London used up

:53:45.:53:54.

its annual allowance and more within eight days of the start of the year.

:53:55.:54:00.

That is where under EU rules sites are only her road to breach the

:54:01.:54:04.

hourly limits of 200 micrograms of nitrous dioxide per cubic metre of

:54:05.:54:11.

air 18 times in a year. These guidelines, call them what you well,

:54:12.:54:15.

I think they're actually legislating from the European Union, they do

:54:16.:54:19.

allow for a certain peaks and certain exceptional circumstances

:54:20.:54:23.

and so on, but having 18 exceptional circumstances in eight days means

:54:24.:54:31.

that for the City of London those are not exceptional circumstances,

:54:32.:54:34.

the everyday circumstances. On that period, on average more than twice a

:54:35.:54:40.

day. The health in pact that we talked about, the 23,500 annual

:54:41.:54:47.

deaths estimated, premature deaths, there are huge financial costs as

:54:48.:54:51.

well. The loss of lives is the key indicator anything for all

:54:52.:54:54.

honourable members around the House, but the costs are higher estimated

:54:55.:54:59.

between ?15 billion a year for the United Kingdom, that is an Scottish

:55:00.:55:04.

Government sources. When the Royal College of physicians and

:55:05.:55:06.

paediatrics and Child health report of their this year, the estimated

:55:07.:55:15.

?20 billion per year. It now is estimate that England's air and

:55:16.:55:21.

water is posing a risk to their ecosystem. It is costing farmers as

:55:22.:55:26.

well, because of ground levels and reduce by nitrogen oxide the acting

:55:27.:55:33.

with other atmospheric pollutants to lessen crop yields. This is a huge

:55:34.:55:43.

problem. Amendments to and three seek to address that in a small way.

:55:44.:55:52.

The deal with company cars, not all cards and they basically say to

:55:53.:55:59.

encourage Manufacturer 's that if a diesel engine meets the same level

:56:00.:56:12.

of Euro, as a petrol engine, then the same tax regime shall apply to

:56:13.:56:18.

that diesel engine vehicle as would apply to a petrol engine vehicle.

:56:19.:56:23.

Those dozens and dozens of Honourable members who were paying

:56:24.:56:27.

attention earlier will remember that Ira third to this using the same

:56:28.:56:31.

measurement yardsticks, but different points on those yardsticks

:56:32.:56:37.

apply to diesel or petrol. So for carbon monoxide it is one for petrol

:56:38.:56:41.

and five diesel. Furniture is oxide is as zero point six and 0.84

:56:42.:56:52.

diesel. That is as I understand it small particles and that is where

:56:53.:57:00.

they come from. It is a very small step, but a symbolic one for the

:57:01.:57:07.

Government to take towards lessening the appalling and arguably under EU

:57:08.:57:15.

rules are air quality in the 38 cities in the United Kingdom which

:57:16.:57:20.

are in breach of the world health organisation recommended levels. And

:57:21.:57:32.

ten UK cities are in breach of the PM ten world half organisation

:57:33.:57:36.

guidelines. This is literally killing people. I would urge the

:57:37.:57:39.

Government to rethink on this measure. It is not going to

:57:40.:57:42.

transform air quality if the Government asset amendments to and

:57:43.:57:48.

three. It is important that the Government takes it seriously. I

:57:49.:57:55.

have to say to the ministers opposite, the move the manic mood

:57:56.:58:02.

music from this Government has not been that they have taken our

:58:03.:58:07.

quality from vehicle emissions very seriously and because vehicles can

:58:08.:58:11.

be bought in one part of the United Kingdom and driven in another, we're

:58:12.:58:18.

still a United Kingdom, this requires measures at the Westminster

:58:19.:58:22.

level whatever the Scottish Parliament by the Welsh assembly

:58:23.:58:26.

might wish to do to improve air quality. Principally it has to be

:58:27.:58:32.

done at the national level and unless one were to be incredibly

:58:33.:58:37.

Draconian the weight of this is through a Finance Bill, rather than

:58:38.:58:39.

through some Moving on to clause 11, which is

:58:40.:58:50.

calf equivalently benefits to vans, I hope the Minister can, in summing

:58:51.:58:57.

up, indicate what the Government's... Where the Government

:58:58.:59:01.

is going with vans here in clause 11. Because, as I read it, and I may

:59:02.:59:09.

have misunderstood it, where it seems to be going is to discourage

:59:10.:59:15.

people from buying electric vans. If I've understood it correctly, that

:59:16.:59:22.

seems a bit odd. And the moment, the charge for zero emission bands is

:59:23.:59:28.

20% of the benefit in kind which would apply to vans which admit CO2.

:59:29.:59:35.

The Government is then, under clause 11, as I understand it, going

:59:36.:59:43.

gradually to abolish that the differential so that the 20% becomes

:59:44.:59:50.

40%, becomes 60%, becomes 90%, becomes 100% by 2023. So someone

:59:51.:59:59.

buying a van, scientist and it's, in 2023, who is thinking about the

:00:00.:00:04.

benefit in kind on themselves, is going to say, the electric van, I

:00:05.:00:08.

have to pay as much benefit in kind as I do for petrol or diesel. That

:00:09.:00:16.

seems an odd way to be going in benefit and taxation for vehicles.

:00:17.:00:21.

Perhaps the Minister could explain either that I have misunderstood

:00:22.:00:25.

that, or the Government's thinking in going in what many of us witty,

:00:26.:00:29.

in terms of the environment, as the wrong direction. -- many of us would

:00:30.:00:38.

say. Moving on to clause 12 on the sporting testimonial payments, as

:00:39.:00:44.

the Minister said, careers in sport can be short. I'm afraid that is the

:00:45.:00:50.

case and politics as well, sometimes, as I have experienced.

:00:51.:01:00.

What would be helpful is if, as the Chartered Institute of Taxation, who

:01:01.:01:07.

I thank for their help, points out, that the clarification from the

:01:08.:01:13.

Government about the ?100,000 upon which tax is not payable, if that's

:01:14.:01:22.

income from a testimonial, that that situation pertains when the

:01:23.:01:26.

testimonial is neither contractual law customary. To those of us who

:01:27.:01:32.

are lawyers, then contractual is very straightforward. Customary, a

:01:33.:01:39.

bit woolly. It is the kind of worried that lawyers and accountants

:01:40.:01:43.

like, because you make money charging people to interpret it for

:01:44.:01:50.

them. So as I understand it, and again I may be wrong, I can't see

:01:51.:01:54.

customary defined on the face of the Bill. And I would urge the Minister

:01:55.:02:02.

to have another look at that. Can he also, either today or later, try to

:02:03.:02:07.

get us indication how much revenue has been missed by the Exchequer in

:02:08.:02:13.

the last five years from testimonials which are contractual

:02:14.:02:17.

or customary, in which case one would expect them to be liable to

:02:18.:02:24.

income tax. And, as I say, but customary on the face of the Bill.

:02:25.:02:32.

Moving on swiftly to clause 13, this refers to reward for services,

:02:33.:02:37.

extension for trivial benefits of either by employers. The CIO T has

:02:38.:02:45.

suggested it would be useful to all of us at the Minister, if not on the

:02:46.:02:49.

face of the legislation, when replying today, could clarify the

:02:50.:02:54.

difference between a reward for services and a reward for particular

:02:55.:03:02.

services. Because the ear to the very, very similar will stop HMRC

:03:03.:03:09.

must think there is a difference. Perhaps you could clarify that. I'm

:03:10.:03:14.

clause 14, the travel expenses for workers provided by intermediaries,

:03:15.:03:20.

this is a difficult area I think for all of us, because it brings in the

:03:21.:03:25.

issues of equality between those who are workers, but not the surly

:03:26.:03:29.

employees, and those who are employees, for knows who are not

:03:30.:03:34.

familiar with the terrain - there are people who are workers for tax

:03:35.:03:37.

purposes, and indeed for minimum wage purposes, but they are not

:03:38.:03:42.

employees. This is an attempt by successive governments to stop

:03:43.:03:48.

people, employers, the factor employers, getting around the law by

:03:49.:03:54.

using devices which lessen the amount of tax payable. Of course,

:03:55.:04:01.

the overnight costs and travel costs of workers who are employed by

:04:02.:04:06.

various organisations, difficult to clamp down on, because people are

:04:07.:04:12.

very inventive to what they do. But if one thinks of those who are

:04:13.:04:16.

working on a building site as skilled workers, walking miles from

:04:17.:04:21.

home, it is common for those to be engaged through an agency or be

:04:22.:04:24.

self-employed, and for them, if through an agency, to have their

:04:25.:04:31.

travel experiences paid week by week, because they could be hundreds

:04:32.:04:36.

of miles from home. Clause 14 is an attempt to clarify and clamped down

:04:37.:04:40.

on what the Government sees as misuse of this. Or if not misuse, a

:04:41.:04:46.

lack of equality between what one might call true employees and

:04:47.:04:50.

non-employee workers who are subject to this kind of arrangement. I

:04:51.:04:55.

declare an interest as a member of the Unite trade union, of which I am

:04:56.:05:00.

proud to be a member. And is a member of the trade union Congress,

:05:01.:05:07.

another is the trade union for construction, which is strong in

:05:08.:05:11.

Scotland but also across Britain. They believe that the Government's

:05:12.:05:17.

estimate of how many workers will be affected by these changes is that

:05:18.:05:22.

grows underestimation. They estimate that some of their members in the

:05:23.:05:29.

construction trade, being employed by an umbrella company, because of

:05:30.:05:33.

these changes to income tax and national insurance - things which

:05:34.:05:41.

would not previously assessable to income tax in terms of travel and

:05:42.:05:44.

accommodation - that some of their members could be over ?3300 a year

:05:45.:05:52.

worse off. I have met with another association who made some proposals

:05:53.:05:55.

that I wrote to the Minister about, who replied helpfully on two

:05:56.:06:02.

occasions - which I thought was very good of him, because I did write on

:06:03.:06:06.

two occasions - I think that the Government still ought to have

:06:07.:06:12.

another look at it. Three proposals were made about a radius allowance,

:06:13.:06:16.

so that your main address would have to be a certain distance further

:06:17.:06:21.

from the place of work than the average commutes, which is

:06:22.:06:27.

apparently 16.5 miles per day. They also suggest a 24 month rule, the

:06:28.:06:33.

yardstick by which employment position is regarded as temporary or

:06:34.:06:37.

not. And this, which would hurt some people, I suppose, removing food and

:06:38.:06:43.

drink from the subsistence expenses, which we did must play some time

:06:44.:06:46.

ago, when food and drink was removed from what used to be caught the ACA,

:06:47.:06:52.

the additional costs Alliance. Quite rightly that was removed. The

:06:53.:06:57.

Government should look at that. In terms of amendments to this, I think

:06:58.:07:03.

it is new clause one and three, new clause three in the name of the

:07:04.:07:06.

Scottish National Party, and new clause in my name and those of my

:07:07.:07:11.

honourable friends, it will not surprise members to note that I

:07:12.:07:14.

prefer new clause three rather than new clause one, the reason for that

:07:15.:07:20.

is that while both clauses call for a review and assessment by the

:07:21.:07:26.

Chancellor of the Exchequer on this whole area of the tax system, the

:07:27.:07:29.

new clause three also includes within it umbrella companies, which

:07:30.:07:34.

is arguably a growing goblin, or a growing

:07:35.:09:03.

In a written parliamentary reply on April this year, the noble lord

:09:04.:09:16.

Gatley replied, basically saying that the Government didn't know.

:09:17.:09:21.

Because it's all a bit contributed to work out. I appreciate that, but

:09:22.:09:27.

I say this in the context of the National Audit Office, which found

:09:28.:09:31.

there were something like 1200 measures which should be called tax

:09:32.:09:39.

reviews, on which... Whether they had an effect on behaviour which

:09:40.:09:50.

they were designed to do. Whether these of measures had any effect on

:09:51.:09:54.

productivity is at best unclear, the Government can afford to look into

:09:55.:09:59.

that more. Terms of clause 17 on securities options, related to that

:10:00.:10:07.

is new clause ten. I begged a clause ten rustlers to value for money, I

:10:08.:10:12.

should have regard to that there. New clause ten is calling, because

:10:13.:10:18.

of the uncertainty to the efficacy or on fries are such thing, for the

:10:19.:10:27.

Chancellor of the Exchequer I hope the Minister will accept new clause

:10:28.:10:32.

ten. Rather than saying we keep these things under review, which

:10:33.:10:37.

they do, and that is good, I think a significant report in this area

:10:38.:10:41.

would be good. In terms of securities options, again, it is

:10:42.:10:44.

unclear what effect some of these have, but broadly we welcome them.

:10:45.:10:52.

Clause 18, unemployment benefit provided through third parties, I

:10:53.:10:55.

think most less is fairly technical stuff, doesn't mean we shouldn't

:10:56.:10:58.

scrutinise it, but I understand there is going to be consultation on

:10:59.:11:02.

this, perhaps the Minister could provide a little more detail on

:11:03.:11:07.

that. And that the minister might address lower paid individuals and

:11:08.:11:13.

smaller businesses, some who feel that these proposals are

:11:14.:11:19.

retrospective, because they refer to pre-2011 arrangements. Of course, we

:11:20.:11:25.

are always wary in this House of retrospective T.

:11:26.:11:36.

I rise to speak to amendments 180, to speak to move new clause one, and

:11:37.:11:44.

to indicate support to the opposition on amendment two. If I

:11:45.:11:47.

start with amendment two, I think the honourable member for

:11:48.:11:53.

Wolverhampton South West has been giving us his reasoning with such

:11:54.:11:57.

typical eloquence that I have nothing of any substance to add to

:11:58.:12:01.

his remarks, other than to say that we shall be supporting the amendment

:12:02.:12:08.

when he it is pressed to the vote. Prior to the onset of this debate, a

:12:09.:12:16.

short time ago, I raised a point of order with the Speaker, who

:12:17.:12:19.

encouraged me to say a few remarks in my opening here. So I hope you

:12:20.:12:25.

will indulge me for about 30 seconds to indicate that we have had an

:12:26.:12:31.

extraordinary and historic statement from the Prime Minister. However, in

:12:32.:12:38.

terms of the economy and Government finances, it has helped me later

:12:39.:12:42.

clarified that there is no clarity. -- merely to clarify. We face great

:12:43.:12:50.

challenges that will be relevant to much that is in this Bill, yet we

:12:51.:12:55.

don't know the detail of what the ministers, what the Treasury, plan

:12:56.:13:00.

to actually do, and how it will affect some of the issues within

:13:01.:13:05.

this Bill. I am particularly concerned about some of the issues

:13:06.:13:08.

we are addressing within these amendments, as it will affect small

:13:09.:13:13.

business people in my constituency, and small business people in

:13:14.:13:19.

different legal guises throughout the whole of the UK. I mentioned

:13:20.:13:26.

that I ministers questions, just prior to the referendum, two of my

:13:27.:13:35.

constituents who run small businesses who are of German descent

:13:36.:13:40.

have now left the country, such as their feelings of the way in which

:13:41.:13:44.

the immigration debate has been handled.

:13:45.:13:54.

had been hoping to engage in share ownership schemes. I know that at

:13:55.:14:02.

least one of them has been engaged as an intermediary who would've been

:14:03.:14:07.

affected by this. So when I make remarks about the amendment of the

:14:08.:14:11.

new clause, although this would apply to many people, I had in my

:14:12.:14:16.

mind a particular concern to those people in our society to want to

:14:17.:14:23.

make a contribution to productivity and feeling disadvantaged because of

:14:24.:14:28.

the wider ramifications of Brexit. In terms of speaking to our

:14:29.:14:33.

amendment 180 on the impact of the abandonment of HMI Roussillon at

:14:34.:14:39.

those valuation check services for small and medium-sized enterprises,

:14:40.:14:43.

I'm aware of the Minister giving his words of comfort when he opened his

:14:44.:14:47.

address feeling that this is not really a matter of such significance

:14:48.:14:53.

it was a pearly use the service and therefore it is of little confidence

:14:54.:14:58.

that this is being abandoned or has been abandoned in the last few weeks

:14:59.:15:09.

by HMI C. Would he accept that first of all given the reduction on the

:15:10.:15:13.

number of people employed by them and secondly the dissatisfaction

:15:14.:15:17.

faction level sometimes at the service given it is understandable

:15:18.:15:24.

that many businesses would return to professional they employ themselves

:15:25.:15:31.

rather than rely on the HM RSC. Angry entirely. I would point out

:15:32.:15:36.

that some of the smallest enterprises that might wander in

:15:37.:15:40.

gauge in areas such as recruiting their first or second employee and

:15:41.:15:44.

engaging some type of share ownership, they are not in the a

:15:45.:15:48.

situation to be able to go out to a professional community and the 1000

:15:49.:15:54.

?30,000 to get the type of valuation service that may be needed. That was

:15:55.:16:06.

provided at no cost by them. Organisations based in University

:16:07.:16:08.

College in London had indicated that they are aware of a number of cases

:16:09.:16:14.

where small businesses are being discouraged from engaging in small

:16:15.:16:20.

scale share ownership schemes precisely because the assistance

:16:21.:16:24.

they were once afforded has been removed. If the demand was so small,

:16:25.:16:30.

quite clearly there were some people who needed to be involved and the

:16:31.:16:34.

costs could not have been greeted the Government. So do abandon the

:16:35.:16:37.

service when some people may be looking towards expanding the amount

:16:38.:16:42.

of share ownership schemes and society seems to me somewhat

:16:43.:16:47.

perverse. If we move on to the new clause one, which reasons that defy

:16:48.:16:52.

all understanding, the honourable member for Wolverhampton South West

:16:53.:16:57.

but was not dramatically superior to his new clause three, no doubt he

:16:58.:17:03.

will attempt to explain and convince me of that a little later. With a

:17:04.:17:10.

view of taxes provided the services through intermediaries. We believe

:17:11.:17:14.

this has a particular impact on Scotland. I think it was the

:17:15.:17:18.

Honourable member himself that indicated that on average people

:17:19.:17:23.

have a travel to work return journey of around 16 miles. 16.7 miles. Try

:17:24.:17:29.

telling that to people who live on the Isle of Skye and to have to

:17:30.:17:34.

commute to places like Fort William or Inverness. Try telling that to

:17:35.:17:40.

people who have two hop islands to move from one place to the other.

:17:41.:17:46.

Try telling that to some of the health workers employed in these

:17:47.:17:48.

matters who are servicing islands and who need to travel on ferries to

:17:49.:17:55.

stay overnight and the like they are not in a situation that is also

:17:56.:17:59.

close to the average 16 miles to travel to work. There was recently

:18:00.:18:07.

an article in the Times educational supplement pointing out the negative

:18:08.:18:12.

impact this is likely to have on many aspects of the education sector

:18:13.:18:19.

that rely on people on particular types of contracts and who don't

:18:20.:18:22.

enjoy the benefits of full-time employment. Of course, the Minister

:18:23.:18:30.

has argued very calmly, as he always does, about this simply being a

:18:31.:18:36.

matter of making sure there is a level playing field. If the minister

:18:37.:18:40.

wanted to make sure there was a level playing field, he would be

:18:41.:18:44.

ensuring that these workers and intermediaries benefit from sickness

:18:45.:18:52.

pay, benefit from holiday pay, benefit from many of the other

:18:53.:18:56.

benefits of full-time employment. The fact is that they don't. They

:18:57.:19:02.

don't have those same benefits, they cannot be compared with somebody in

:19:03.:19:06.

the additional forms of employment. Indeed what I suspect as part of the

:19:07.:19:10.

problem here for the Government is that they have a misunderstanding of

:19:11.:19:13.

the needs of the modern labour market. It is no longer the case

:19:14.:19:19.

that we only had people employed in very traditional ways or have people

:19:20.:19:24.

who are entirely self-employed in the way in which it is traditionally

:19:25.:19:30.

understood. There are many ways in which flexibilities in the labour

:19:31.:19:34.

market have been developing over the last ten or 20 years. Many of these

:19:35.:19:43.

flexibilities play to and unable local economies that as those in

:19:44.:19:48.

rural areas whether in Scotland or Northern Ireland or in specialist

:19:49.:19:52.

sectors such as the oil and gas sector who need to import very

:19:53.:19:56.

specialist services. These people might be based not just in Scotland,

:19:57.:20:01.

but might be based down here near London and having to fly to provide

:20:02.:20:06.

their services. Is going to have a potential impacts that has not been

:20:07.:20:15.

thought through by the Government. Would he agree with you cat who says

:20:16.:20:23.

that if possible, such workers should be directly employs. They

:20:24.:20:31.

have agreements to get employment rates for the Olympics and so on.

:20:32.:20:36.

There is a place for specialist work on oil rigs or whatever who will not

:20:37.:20:44.

be permanently employed through an intermediary, but the opening

:20:45.:20:47.

position should be to try to have direct employment so that people get

:20:48.:20:52.

the feel benefit of rights. I very much agree with the Honourable

:20:53.:20:55.

member that there will be those among this community where it would

:20:56.:20:59.

be better if they were able to achieve traditional forms of

:21:00.:21:02.

employment, but what I would say to him and respect is that it is not

:21:03.:21:08.

the situation for the in excess of 1 million people in the United Kingdom

:21:09.:21:14.

who fall into this category. Sir Roger, I think that despite the warm

:21:15.:21:19.

words of the Minister, it will be our intention to move new clause

:21:20.:21:27.

one. This is a matter of some importance to the communities and

:21:28.:21:32.

the economy of Scotland. I have simply been indicating that we are

:21:33.:21:38.

speaking to amendment 180 zoo we do not intend to press that to a vote,

:21:39.:21:42.

but we will also be supporting the opposition in their amendment, too.

:21:43.:21:54.

First of all, the Honourable members speaking for the fashionable

:21:55.:22:03.

nationalists is absolutely right in that excessive governments have

:22:04.:22:09.

understaffed the HM C. They have consistently argued that they are

:22:10.:22:12.

going to make it more efficient. I remember when I was elected to this

:22:13.:22:16.

house I went to my local VAT office and they said that if we employ more

:22:17.:22:20.

staff then every member of staff collect is five times their own

:22:21.:22:25.

salary. Being a logical person I would be Chancellor of the Exchequer

:22:26.:22:27.

and suggested this was a good idea to employ more staff and collect

:22:28.:22:30.

more revenue for the Government. I got a letter back from a civil

:22:31.:22:34.

servant suggesting that they were going to save money by cutting

:22:35.:22:38.

staff. It was so irrational, it was just nonsense. That kind of nonsense

:22:39.:22:45.

has continued ever since. Reducing the number of offices and making it

:22:46.:22:50.

more remote and so on, I was not terribly impressed with the idea of

:22:51.:22:56.

having a benefits distributing service. It should be to tax

:22:57.:23:04.

credits. I was not the only one I said it was uneasy about that

:23:05.:23:08.

change. I want to talk about the new clause three and support my

:23:09.:23:10.

honourable friend of the front bench about tax treatment of workers

:23:11.:23:16.

through intermediaries. It has long occurred to me that in cheese,

:23:17.:23:23.

private agencies make lots of money out of public pose and the people

:23:24.:23:26.

they are employing. I think it could be overcome if we issued a

:23:27.:23:34.

substantial public ownership programme for agencies. Particularly

:23:35.:23:36.

when we're talking about the public sector. Nurses, if we had a local

:23:37.:23:43.

authority or a National Health Service agency so that the money

:23:44.:23:49.

went either into the pockets of the people employed by the agency was

:23:50.:23:54.

saved in public spending by the health service, everyone would

:23:55.:23:57.

benefit. The people who would lose of course would be the private

:23:58.:24:01.

sector who would not make profits out of employing people in this way.

:24:02.:24:07.

In that way serving and taxation could be properly regulated and it

:24:08.:24:12.

would be no cheating or tax fiddles, because it would be within the

:24:13.:24:15.

publicly accountable public sector. This could also be extended. I am

:24:16.:24:22.

grateful to my honourable friend forgiving way. I have sympathy is

:24:23.:24:26.

with him on organisations such as agencies which deal with supply

:24:27.:24:29.

teachers, which you will remember of growth from its background in

:24:30.:24:34.

education. Commonly to be done by the local education authority before

:24:35.:24:36.

sadly the Labour Government change that. The local education of birdies

:24:37.:24:42.

were battered by its current Government and its predecessor. In

:24:43.:24:47.

certain areas such as construction or oil rigs which have been

:24:48.:24:51.

mentioned today, there is a role for these specialist agencies and that

:24:52.:25:01.

would be bad to look at nationalising those or have them run

:25:02.:25:04.

by national Government bodies as he appeared to be suggesting. I would

:25:05.:25:13.

like to, it is not that everything in the past was bad, some people say

:25:14.:25:19.

we can't go back to the past. We have had a succession of governments

:25:20.:25:22.

have gone back to the 19th century in the way they run the economy and

:25:23.:25:26.

neoliberalism was invented them. Since then we have managed economies

:25:27.:25:30.

which have worked fro well but that has been thrown away and we have

:25:31.:25:33.

gone back to the 19th century. Some things in the past we could go back

:25:34.:25:36.

to which might actually improve things. I suggest that public

:25:37.:25:39.

agencies for temporary staff would be a very good thing, I might even

:25:40.:25:45.

debate with him that this could be employed in the private sector as

:25:46.:25:50.

well, because at least the staff involved would be properly

:25:51.:25:55.

protected. The companies that employ them would know they are not being

:25:56.:26:03.

ripped off. The taxpayers and recipients, the Treasury, with no it

:26:04.:26:06.

is getting a feared deal by collecting its proper taxes. We did

:26:07.:26:11.

a properly organised trade unions making sure we are properly paid and

:26:12.:26:15.

we could go back to a world of active social democracy, which I

:26:16.:26:19.

think would be a splendid thing. My honourable friend, I am pushing him

:26:20.:26:25.

to fire. I do supporters amendment. Yes, of course. I had to say, I am

:26:26.:26:32.

in favour of the world active social democracy but I'm not sure my

:26:33.:26:35.

definition is the same as his if he is seriously suggesting that the

:26:36.:26:41.

construction agencies should be run by some kind of state body. That is

:26:42.:26:48.

a step too far them. I would also say to my honourable friend, caution

:26:49.:26:54.

him, having gotten his way last Thursday he is pushing his luck on

:26:55.:27:01.

this somewhat Stalin like approach. You are suggesting it is like

:27:02.:27:06.

Stalin, but we are documenting words were rehab democratically elected

:27:07.:27:09.

governments. After the Second World War we had Labour Government did

:27:10.:27:12.

wonderful things, I would not call them like Stalin. They were

:27:13.:27:19.

sometimes defeated in this house. Being like Stalin is not the right

:27:20.:27:24.

description. A bigger role for the public sector in regulating

:27:25.:27:26.

employment and making sure that people are properly paid, securely

:27:27.:27:31.

employed even when they are temporary staff and that taxes are

:27:32.:27:36.

properly paid and private sector agencies don't rip off both the

:27:37.:27:40.

public person and the plays. I will leave that with my honourable

:27:41.:27:43.

friend. Hopefully at some point in the future he will bring

:27:44.:27:50.

I just want to speak briefly. I just want to speak about the review of

:27:51.:28:01.

income tax for workers employed through intermediaries. A couple of

:28:02.:28:07.

points, we're asking for the review to come back. I understand the

:28:08.:28:10.

Government's point is that they feel this is sensible for the majority of

:28:11.:28:15.

workers, and for the majority of people. What we are raising is the

:28:16.:28:20.

unintended consequences on specific issues and areas that it is going to

:28:21.:28:25.

be a major problem. We have for a dimension that rural communities

:28:26.:28:28.

will be disproportionately affected by this, but by geography. There are

:28:29.:28:34.

further away, it is what has gotten people to make cheap traveller

:28:35.:28:41.

Leachman is or find recently priced overnight accommodation. -- travel

:28:42.:28:46.

arrangements. Another thing is that if you have a specialist contractor,

:28:47.:28:50.

we do not want them to not choose to go to in the community because it is

:28:51.:28:55.

going to disproportionally cost them money, that means these committees

:28:56.:28:58.

will lose out and stop they were not have the ability to get whatever

:28:59.:29:01.

needs done in that community because the contractor will go somewhere

:29:02.:29:08.

where it is cheaper. Particular, as we mentioned, this is an issue in

:29:09.:29:10.

the oil industry and whiskey industries. You may have specialist

:29:11.:29:16.

contractors that need to go to rural locations, we do not want there to

:29:17.:29:20.

be disproportionately affected. One of the big issues were rural

:29:21.:29:24.

communities is that, with the Brexit scenario, they are going to be

:29:25.:29:28.

missing out on European funding as it is. We do not want them to be

:29:29.:29:32.

further negatively impacted by this. So we're asking for a review on

:29:33.:29:38.

this. I understand there have been reviews made before and predictions

:29:39.:29:41.

that the main - we all know from last week that predictions can be

:29:42.:29:45.

wrong - we do not know how this will work in practice. The Government

:29:46.:29:50.

knows how much will cost, but they do not know the impact on workers'

:29:51.:29:55.

behaviour. So it as the Government to look at this and in a few months

:29:56.:30:01.

come back and see evidence have a negative effect on rural

:30:02.:30:07.

communities. Would also ask that the reduction on net income for people

:30:08.:30:10.

disproportionately affects those on lower incomes, so this is quite a

:30:11.:30:14.

regressive measure in terms of that. I wondered any review has brought

:30:15.:30:19.

back anything, and if there is anything to come back if that could

:30:20.:30:23.

be looked at as well, whether or not those contractors doing lower paid

:30:24.:30:28.

jobs are less likely to choose to go to rural communities on that basis?

:30:29.:30:33.

I am grateful to her. Some of those lower paid companies may be working

:30:34.:30:38.

for umbrella companies, that is the difference in writing between new

:30:39.:30:46.

clause three clause one. In terms of the clause tabled by her honourable

:30:47.:30:56.

friends, dishy envisage within that concepts, different types of workers

:30:57.:31:00.

-- does she envisage within the concept, different types of umbrella

:31:01.:31:06.

company is being part of that? When we said different types of

:31:07.:31:10.

work, we met all of those who are going to be impacted by this change

:31:11.:31:14.

in taxation measures. I will wrap up now, thank you very much.

:31:15.:31:21.

Minister? Thank you, Sir Roger, I am grateful

:31:22.:31:27.

for the points made over the course of the debate. I will not repeat all

:31:28.:31:32.

the points made in my opening remarks, but will try to address the

:31:33.:31:35.

particular questions raised in the course of our debate will stop as we

:31:36.:31:40.

have had plenty of questions. I should begin by saying how pleased I

:31:41.:31:45.

was to see the member for Wolverhampton South West join us.

:31:46.:31:47.

You never know these days who will be there. But given the very

:31:48.:31:54.

considerable work that he clearly put into his speech, and not

:31:55.:31:58.

forgetting the very considerable work put in by Imogen Watson, I

:31:59.:32:03.

think it would have been a great pity were he not had been on the

:32:04.:32:07.

front bench in a position to ask those questions. I'm delighted to

:32:08.:32:12.

see him as were happily give way. I wouldn't have missed it for the

:32:13.:32:16.

world. The links that people will go to to

:32:17.:32:22.

avoid attending a PLP meeting are clearly very considerable. Let me

:32:23.:32:31.

address the lengths that the honourable member went to. I will

:32:32.:32:35.

try to address other points raised and this debate. I will run through

:32:36.:32:43.

an clause order, attempt to do so. We start with clause seven, where

:32:44.:32:49.

the question was asked to what extent that have been problems with

:32:50.:32:53.

uncertainty to tax law addressed by tax seven. There has been some

:32:54.:32:59.

uncertainty about the application of the current tax law and reflect of

:33:00.:33:07.

their provision by advisers. The matter has been put beyond doubt. It

:33:08.:33:12.

will give employers certainty about where and when their bargaining

:33:13.:33:17.

should be applied to benefits in kind. These issues have recently

:33:18.:33:21.

been rehearsed by the Court of Appeal. The honourable gentleman

:33:22.:33:24.

raised particular issues as to why there were special revision for cars

:33:25.:33:30.

and vans. Company cars and vans are a particularly valuable benefit.

:33:31.:33:35.

Does the code specify how to calculate the benefit? It is as

:33:36.:33:41.

though consequence that it is particularly valuable that we have

:33:42.:33:46.

got the provisions that we have. I'll give way.

:33:47.:33:52.

There may be a bit of doing and throwing on this for clarification.

:33:53.:33:57.

This may well be my ignorance. Is this to do with the sale of a car as

:33:58.:34:04.

opposed to one supplied as a benefit in kind, the classic seals wrecked's

:34:05.:34:11.

company car. It supports talking about a different scenario for

:34:12.:34:16.

undervaluing, or is a difference? It is not talking about that, and I

:34:17.:34:23.

hope to provide some clarity. In terms of clause eight, in terms of

:34:24.:34:31.

the issue of the question put, why is the Government imposing tax

:34:32.:34:37.

increases on drivers of low emission cars, the company car tax system

:34:38.:34:41.

encourages people to choose the most fuel-efficient cars, while ensuring

:34:42.:34:45.

the benefit is fairly taxed. It is fair that all company car users,

:34:46.:34:49.

including those on zero and low-carbon cars make a fair

:34:50.:34:54.

conservation to the public finances. The tax differentiation between low

:34:55.:34:59.

emission and conventionally fuelled cars will be lowered in 2019 and

:35:00.:35:06.

2020, compared to previous plans announced at budget 2013. I could,

:35:07.:35:12.

if you so wish, provide examples of that. Let me also address the issues

:35:13.:35:21.

as to why the Government is increasing rates of conventionally

:35:22.:35:26.

fuelled cars by 3% after years of two percentage point increases? The

:35:27.:35:32.

question is also ask about the impact on the type of cars

:35:33.:35:38.

purchased. These increases ensured that the taxation of company cars

:35:39.:35:41.

continues to reflect changes in emissions technology. The rate

:35:42.:35:47.

increased, together with the extra incentive of these vehicles promotes

:35:48.:35:54.

the move to cleanest cars. In 2013 there were many ultralow emission

:35:55.:36:01.

vehicles in the company car fleet. In 2015, the Rover 8000 supporting

:36:02.:36:11.

this approach. -- over 8000. Revenue has been broadly maintained in real

:36:12.:36:16.

terms in the face of continued improvements in Newcastle

:36:17.:36:18.

efficiencies. This will support the move towards cleaner and lower

:36:19.:36:30.

emission cars. In respect of clause 11, certainly... .

:36:31.:36:37.

I wonder, I think I asked before, and he may not have the figure to

:36:38.:36:41.

hand, in terms of the measures include an clause eight, can the

:36:42.:36:45.

Minister give us an estimate of how much he thinks these changes will

:36:46.:36:49.

raise, given that for each of the four bands, the percentages are

:36:50.:36:55.

going up by 3%? I will... If I may, I will write to

:36:56.:37:03.

the honourable gentleman and provide ten with those details. In terms of

:37:04.:37:12.

clause 11, the Government will review the van benefit charge for

:37:13.:37:18.

zero emission vans again in light of market elements in 2018. This clause

:37:19.:37:24.

is keeping the level at 20%, not increasing it as planned. The review

:37:25.:37:28.

carers before any further increase the odd 20%. I hope that is helpful

:37:29.:37:35.

to him. In terms of what will be the impact on zero emission advance

:37:36.:37:41.

sales, while extending the ban benefit -- van benefit to include

:37:42.:37:48.

the uptake in new vehicle technologies, the Government

:37:49.:37:50.

announces a scheme for zero emission vans and the van grant which else

:37:51.:37:55.

with the upfront cost of buying a new low emission vehicle that will

:37:56.:38:00.

also help to ridges barriers in the uptake of these technologies.

:38:01.:38:04.

Hopefully this will increase the sales of these fans and the

:38:05.:38:10.

manufacture of green vehicle technologies in the UK, consistent

:38:11.:38:14.

with the Government's bands to encourage growth in these areas. The

:38:15.:38:20.

point was raised by the honourable member about EU air quality

:38:21.:38:26.

requirements, and whether there is more that we should be doing.

:38:27.:38:30.

Government is committed to improving air quality and complying with legal

:38:31.:38:38.

obligations. Last September, Defra published the Government's plans to

:38:39.:38:42.

achieve these aims. The most polluting diesel vehicles will be

:38:43.:38:48.

discouraged from entering the centres of many English cities. The

:38:49.:38:52.

Mayor of London has responsibilities and his own plans for reductions.

:38:53.:39:00.

And the honourable member's amendment, while I accept as

:39:01.:39:05.

well-intentioned, but no current vehicles will because, and we are

:39:06.:39:09.

pursuing these aims for effectively elsewhere. I will give way.

:39:10.:39:16.

It may be that I missed it, and I apologise if I did. I understood he

:39:17.:39:21.

was referring to stuff going through Defra and so on that an milestone

:39:22.:39:30.

would be 2020. I have to say to the Minister, if I understood correctly,

:39:31.:39:34.

2020 seems an awfully long way away, given that we should have been

:39:35.:39:39.

complying with this error quality staff in something like 2011 or

:39:40.:39:45.

2012. -- air quality stuff. It does seem to be kicking the can down the

:39:46.:39:48.

road while literally tens of thousands of people are dying

:39:49.:39:51.

prematurely. That's worrying. I can understand

:39:52.:39:57.

why the honourable gentleman raises that point, what's, particular given

:39:58.:40:02.

the amendment in front of us here, no vehicles would currently be

:40:03.:40:11.

caused, and it is a question of finding the most effective means to

:40:12.:40:15.

do this. Last December, Defra published the Government's plans to

:40:16.:40:21.

achieve these aims. Yes, there is further work that needs to be done,

:40:22.:40:27.

and I accept that. We need to setup a realistic, achievable target. By

:40:28.:40:33.

2020, the most polluting diesel vehicles will be discouraged from

:40:34.:40:37.

entering a number of cities. I will give way, but I am keen to make some

:40:38.:40:42.

progress, because a number of points had been arranged.

:40:43.:40:47.

When he says no vehicles are caught, my understanding of what he means by

:40:48.:40:51.

that, is that there are no vehicles currently manufactured that if this

:40:52.:40:55.

measure is adamant it would be able to take advantage of that. He's

:40:56.:41:02.

nodding, that's helpful. So is the purpose of the amendment to drive

:41:03.:41:06.

the market? I appreciate that is the intention

:41:07.:41:09.

behind that, and he would be the first except that would require some

:41:10.:41:16.

time for that to take effect. But there are other measures elsewhere

:41:17.:41:19.

that the Government is taking which I believe achieve those objectives

:41:20.:41:25.

more effectively. Just turning to... I give way.

:41:26.:41:33.

There is a well way scheme being proposed to build around way line

:41:34.:41:37.

which will take 5 million lorry journeys off roads every year and

:41:38.:41:43.

transform the emissions that are currently, particularly in towns. --

:41:44.:41:50.

Railway journeys. Will the Government look seriously at this

:41:51.:41:54.

scheme, is it a positive way forward?

:41:55.:41:57.

What I would say is that this Government is committed to a very

:41:58.:42:03.

substantial investment in our Railways. The biggest rail building

:42:04.:42:08.

programme, I think, since Victorian times. As a Government we have great

:42:09.:42:16.

ambitions they are. We intend to spend ?16 billion on transport

:42:17.:42:18.

infrastructure in the course of this Parliament. Turning to sporting

:42:19.:42:23.

testimonials, the point was raised about the definition of customary.

:42:24.:42:36.

Just issue of the honourable member, HMRC is engaged in creating guidance

:42:37.:42:40.

on these issues, including the definition of customary. He is as

:42:41.:42:46.

about the numbers involved in testimonials that fall within the

:42:47.:42:51.

contractual customary awful outside that. Employers have not had to

:42:52.:42:58.

report that two HMRC, it is worth writing out that contractual

:42:59.:43:10.

payments are required as... Returning to clause 14, there are a

:43:11.:43:14.

number of points raised on this. First point was raised that this

:43:15.:43:23.

would change disadvantage rural communities? Rural communities which

:43:24.:43:26.

are contracted directly cannot claim travel and subsistence on their

:43:27.:43:33.

ordinary commute. This would equalise the tax treatment of

:43:34.:43:36.

employers are employed through intermediaries will stop this is a

:43:37.:43:39.

balance in our tax system, ensuring it is fair. It is a long-standing

:43:40.:43:43.

vegetable of the tax system that tax relief is not allowable for the

:43:44.:43:47.

expense of Audrey commuting, travelling from home to a permanent

:43:48.:43:49.

workplace, a point made earlier. more it would be suitable for travel

:43:50.:44:10.

and affect growth, we are businesses need to come from some distance

:44:11.:44:17.

away, the government expects businesses to pay workers enough to

:44:18.:44:28.

not need this subsidy. Businesses meeting a wage which will not

:44:29.:44:31.

require assistance from the government. When we see the DBE is

:44:32.:44:46.

about the likes of supply teachers, this does put supply teachers on

:44:47.:44:53.

intermediary on the same level as those contracted through an agency

:44:54.:44:58.

contract. Supply teachers are not engaged in this way would not

:44:59.:45:04.

receive tax relief on the travel, as it is regular home to work travel.

:45:05.:45:12.

Prior to the last general election, we were told we would stop umbrella

:45:13.:45:21.

companies exploiting tax relief. That is exactly what this change

:45:22.:45:28.

does. I hope the measures we are putting in place will have

:45:29.:45:36.

cross-party support. Can one point come at the point raised by his

:45:37.:45:43.

colleague, his colleague from Aberdeen North, about the effect on

:45:44.:45:47.

the oil industry. Employees with the permanent workplace at an offshore

:45:48.:45:59.

oil or gas sitting, are already given a sessional additional

:46:00.:46:05.

assistance for travel. These will not affect the exemption. The only

:46:06.:46:16.

time I had to operate through an umbrella company was when it was at

:46:17.:46:23.

the requirement of the government because of the contract I had. Will

:46:24.:46:28.

wriggle through every department to ensure that they no longer contract

:46:29.:46:36.

out in this way. It is the case that that is a lot of work which has been

:46:37.:46:40.

done in recent years to ensure that the government are not involved in a

:46:41.:46:48.

way in which the tax bill is driven down in a way which is not the

:46:49.:46:53.

intention of government or Parliament. Can I come to clauses

:46:54.:47:07.

Clauses16 and 17. The government believes the impact of these

:47:08.:47:13.

services would be negligible. It is worth pointing out that the

:47:14.:47:22.

valuation services not been withdrawn for the employment

:47:23.:47:26.

ownership scheme, company sheer option plans, sheer incentive plans

:47:27.:47:38.

and the employee shareholder status. I know this begs the question raised

:47:39.:47:43.

by the member for Wolverhampton south why we have so many different

:47:44.:47:49.

schemes. Each of them as a specific policy objective, reflected in

:47:50.:47:56.

qualifying conditions. These schemes are greatly valued by both employers

:47:57.:48:01.

and employees and we believe they can have a positive impact on

:48:02.:48:12.

productivity. Sir Roger, can I turn to the issue of clause 18, finally.

:48:13.:48:25.

This is retrospective ledge legislation. It is overly complex.

:48:26.:48:32.

The changes introduced here are relatively straightforward. The more

:48:33.:48:38.

complex proposals in the next budget will be legislated in the Finance

:48:39.:48:46.

Bill in 2017. We will consult over the financial detail during the

:48:47.:48:50.

summer. One of the main purposes of the consultation will be to ensure

:48:51.:48:56.

that innocent arrangements are not affected. With regard to this being

:48:57.:49:05.

retrospective, the government expects those who avoid tax to pay

:49:06.:49:10.

the fear sheer. Following the consultation I have just mentioned,

:49:11.:49:19.

the public and tax practitioners will be able to comment on the

:49:20.:49:24.

consultation. I would make the point that normal hard-working people do

:49:25.:49:33.

pay the taxes and they are paid and a salary. It is not right that

:49:34.:49:37.

people should use these schemes to essentially receive the numeration

:49:38.:49:44.

without paying tax. All of the affected scheme users will have a

:49:45.:49:49.

duty to either repay the loans are paid tax on them. This is in

:49:50.:49:54.

addition to previous settlement options which closed last year. I

:49:55.:49:59.

hope these point of clarification or helpful to the house. I hope,

:50:00.:50:05.

therefore, that the government clauses and amendments can be

:50:06.:50:09.

supported. I urge Honourable members putting forward their own clauses or

:50:10.:50:16.

amendments. I would hope to withdraw them, but I urge my honourable

:50:17.:50:23.

friends to participate. The question is as common amendment 20 to be

:50:24.:50:34.

made. As many of those say aye. The aye have it. The question is that

:50:35.:50:42.

the amendment be made. Those of that opinion aye see. The ayes have it.

:50:43.:51:02.

To move amendment number two. To move formally. Amendment to be made.

:51:03.:51:14.

Those in favour say aye. Those not in favour of C no. No! . Division.

:51:15.:52:41.

The question is, should amendment to be made. Those in favour, C Aye.

:52:42.:52:59.

Tellers for the Aye and for the zero. -- the No.

:53:00.:59:13.

Order, order. VI smacked to the right, two and 51, the nose to the

:59:14.:04:34.

left, ... The ayes to the right to 15, the noes have it. Unlock. The

:04:35.:04:46.

question is clauses ten to 12, today stand as part of the Bill? As many

:04:47.:04:49.

as are of the opinion, say "aye". To the contrary, "no". The ayes it. The

:04:50.:04:56.

question is that amendment 27 be made, As many as are of the opinion,

:04:57.:04:59.

say "aye". To the contrary, "no". . The ayes have it. The amendments

:05:00.:05:08.

that clause 15 stand as part of the Bill, As many as are of the opinion,

:05:09.:05:11.

say "aye". To the contrary, "no". The noes have it. Close extension

:05:12.:05:16.

remain part of the Bill, As many as are of the opinion, say "aye". To

:05:17.:05:22.

the contrary, "no". . The noes at. As many as are of the opinion, say

:05:23.:05:28.

"aye". To the contrary, "no". The ayes have it. The question is that

:05:29.:05:33.

schedule three as amended, and clauses 17 and 18 stand as part of

:05:34.:05:36.

the Bill. As many as are of the opinion, say "aye". To the contrary,

:05:37.:05:44.

"no". The ayes it. Sir Roger to move was one formally. Should the Bill be

:05:45.:05:50.

read a second time? As many as are of the opinion, say "aye". To the

:05:51.:05:52.

contrary, "no". Division. The question is that you knew clause

:05:53.:07:08.

one B read a second time. As many as are of the opinion, say "aye". To

:07:09.:07:10.

the contrary, "no". . He and too late, 247, the nose to

:07:11.:16:28.

the lake, 360. The Ayes Nos have it. We come to

:16:29.:17:05.

clause 130 two. The claim change. Amendment 183, clause 135, the

:17:06.:17:12.

questioners that clause 13 to be part of the bill. The climate change

:17:13.:17:24.

Levy. It is a tax levied on businesses in the public sector. It

:17:25.:17:34.

was brought in 2000 and 12 encourage energy efficiency. We want the

:17:35.:17:40.

removal of the private Levy exemption. A consultation needs to

:17:41.:17:51.

be made for the transitional period to be satisfactory. We want energy

:17:52.:17:56.

suppliers to be exempt so that they can pursue efficient and more

:17:57.:18:12.

environmentally friendly goals. We want employers to have the benefit

:18:13.:18:21.

of the new sources acquired before the date. In consultation with

:18:22.:18:26.

industry, it was announced that the government would abolish the complex

:18:27.:18:32.

and unduly burdensome card and carbon reduction energy efficiency

:18:33.:18:38.

scheme and move to a single tax from 2019. Moving to one tax will provide

:18:39.:18:49.

a clear call for energy producers. Clauses 133 and 134 are to be

:18:50.:19:04.

increased by RPI. It will give some certainty to businesses. Clause 135

:19:05.:19:10.

will increase the climate change regulates above RPI by 2019 to

:19:11.:19:19.

recover the revenue lost. Increasing the Levy will strengthen the

:19:20.:19:28.

businesses with the incentive to save energy. This will also update

:19:29.:19:41.

an outdated system. This will help deliver on our commitment to deliver

:19:42.:19:48.

bigger carbon savings. Clause 136 will to sell Levy discount for

:19:49.:19:53.

energy intensive sectors. This will ensure businesses in these sectors

:19:54.:19:58.

will pay no more than the expected amount of Levy by April 2019,

:19:59.:20:08.

letting them maintain the international competitiveness. This

:20:09.:20:12.

will provide the three-year lead-in time for businesses to adjust to the

:20:13.:20:17.

new tax landscape. Several Honourable members have in the past

:20:18.:20:23.

voiced concern about the impact of clauses to remove the climate change

:20:24.:20:28.

Levy exemption from electricity. If I can repeat the reasoning for that.

:20:29.:20:36.

There is no doubt that the exemption was increasingly pervading the pure

:20:37.:20:43.

value for money for the taxpayer. Without acting, this would of course

:20:44.:20:47.

Thomas ?4 billion over the course of this Parliament. Further, there is a

:20:48.:20:57.

lot of poor for a low carbon generators which supports our aim.

:20:58.:21:08.

There has been trebling of the renewable energy -- electricity

:21:09.:21:12.

capacity. Last year was another record year of investment. Removing

:21:13.:21:15.

the exemption will provide better now value for money the taxpayer. It

:21:16.:21:27.

will also maintain the incentive for energy efficiency. The consultation

:21:28.:21:33.

with industry shows that the current business energy landscape is over

:21:34.:21:38.

burdensome and complex. This demonstrates the government

:21:39.:21:42.

commitment to simplify and improve the system in order to meet our

:21:43.:21:47.

environmental targets. I believe the clauses than part of the bill. If I

:21:48.:21:54.

may turn to the amendments. In the name of the opposition, especially

:21:55.:22:03.

the Honourable member for Salford. I would like to congratulate her on

:22:04.:22:10.

her elevation to date. It is an extremely well-deserved promotion

:22:11.:22:15.

and we wish all the very best in her new position. Her amendment has

:22:16.:22:24.

slightly less merit. It would require the Chancellor to publish a

:22:25.:22:30.

report detailing the impact of the levy within 12 months. It is, in

:22:31.:22:37.

fact, unnecessary. Following a hearing on the 2015 summer budget,

:22:38.:22:44.

the Chancellor vote to wrote to the select committee with regard to the

:22:45.:22:49.

withdrawal of the exemption. He made it clear they would not directly

:22:50.:22:53.

affect our commitment to reduce carbon emissions. In addition, the

:22:54.:23:03.

government aims to publish information on the carbon framework

:23:04.:23:06.

it later this year. This will examine the removal of the CLC. The

:23:07.:23:20.

impact of reducing the system has been discussed at length. It has

:23:21.:23:30.

been confirmed that this will not impact the United Kingdom 's impact

:23:31.:23:35.

to reduce the carbon targets. I would like the Honourable lady to

:23:36.:23:40.

withdraw the amendment. If not, I would call on the host to reject it.

:23:41.:23:48.

Thank you, Sir Roger. I would like to thank the Minister of set for the

:23:49.:23:53.

kind comments. I would thank him for being a fantastic duelling partner

:23:54.:23:59.

in these debates. He has been nothing other than respectful and I

:24:00.:24:04.

do enjoy debating with him. I rise to speak about the clauses one C two

:24:05.:24:12.

to 136. I beg to move that the amendment in my name. Clause 132

:24:13.:24:21.

makes the removal of the exemption from electricity from renewable Serb

:24:22.:24:28.

sources. Since the inception in 2001, electricity from renewables

:24:29.:24:35.

has been exempt under an agreed contract between the energy supplier

:24:36.:24:39.

and the customer. In 2015, the Chancellor announced this exemption

:24:40.:24:48.

would be removed by August last year and the Ruby a transitional period

:24:49.:24:52.

where suppliers would be able to claim the CLC exemption on in the

:24:53.:24:59.

electricity generated before that date. Following an informal

:25:00.:25:03.

consultation, the government announced the transition period

:25:04.:25:10.

within one the 31st of March 2018. The hosts will be aware that we

:25:11.:25:19.

oppose the removal of this exemption last year. Several Honourable member

:25:20.:25:24.

shops are also did that. We maintain that position. We will be abstaining

:25:25.:25:30.

on the clause today. The government has refused to publish some

:25:31.:25:35.

responses to the formal consultation. In answer to written

:25:36.:25:41.

questions as they contained commercially sensitive information

:25:42.:25:46.

and the refused to publish in the suggested team skill. Could we have

:25:47.:25:50.

some assurance that the length of this transitional period was in line

:25:51.:25:54.

with the recommendations of the respondents. Moving on to clause 133

:25:55.:26:01.

which includes the main rates of the climate change Levy in line with

:26:02.:26:11.

inflation. It has been a standard practice to increase the rates in

:26:12.:26:16.

line with in inflation in each year 's Finance bill for the past nine

:26:17.:26:21.

years. As the explanatory notes set out, why the changes to the CLC in

:26:22.:26:29.

2019? It makes sense to make provision for the next two years at

:26:30.:26:34.

the same time. These way that changes are subject to clause 135,

:26:35.:26:38.

which significantly increases the main rates that have to be

:26:39.:26:45.

recovered. Those will be lost from the carbon reduction commitment. In

:26:46.:26:50.

doing so, the ratio from electricity to gas has been balanced somewhat.

:26:51.:26:56.

It is a government intention to close the ratio further by 2025.

:26:57.:27:02.

This is to reflect the falling gas prices and expected increase in

:27:03.:27:08.

consumption as a result. The falling clause increases the CLC amount to

:27:09.:27:23.

energy reliant businesses. The discount for electricity will

:27:24.:27:27.

increase from 90% to 93% and the discounting gas will increase from

:27:28.:27:36.

65% to 78% from April 20 19. This provision mitigates the knock-on

:27:37.:27:38.

effect from clause one 35. Review will have particular

:27:39.:27:50.

reference to the removal of the exemption for electricity

:27:51.:27:52.

regenerated from renewable sources. The abolition of the carbon

:27:53.:27:56.

reduction commitment and the reporting requirements for companies

:27:57.:28:02.

and public sector bodies. Now, in order to explain the reasoning

:28:03.:28:04.

behind this amendment, it might be helpful to outline, really, Howard

:28:05.:28:12.

recovered arrived at the changes. In budget 2015, a review into the tax

:28:13.:28:19.

landscape was announced to consider approaches about the effectiveness

:28:20.:28:22.

of the regime. Launched in September, this consultation set out

:28:23.:28:30.

the current range of business energy efficiency policies and regulations.

:28:31.:28:35.

The consultation received a 356 responses from a drive your

:28:36.:28:42.

businesses. The consultation sought to improve the effectiveness of the

:28:43.:28:47.

policy framework by simply simplifying reporting to reduce an

:28:48.:28:52.

edited of burden, targeting policy levers at cost effective energy

:28:53.:28:57.

efficiency potential. -- administrative. Using policy

:28:58.:29:04.

instruments to raise the profile of energy efficiency on carbon

:29:05.:29:08.

reduction with decision-makers and improving the case for investment in

:29:09.:29:12.

energy efficiency and low carbon alternatives. Now, as a result of

:29:13.:29:16.

this consultation exercise, the Chancellor announced in his March

:29:17.:29:21.

budget that the carbon reduction commitment would be abolished and

:29:22.:29:24.

the Climate Change Levy increased to recover the lost revenue. The

:29:25.:29:31.

Treasury's written response to this exercise, the governments committed

:29:32.:29:40.

to a new carbon reporting framework by April 2000 and 19. Now, I fail to

:29:41.:29:51.

see how these objectives meet what was outlined previously and, let me

:29:52.:29:57.

acknowledge comments that encourage the overlapping budget as a burden.

:29:58.:30:05.

We do not encourage the whining to make it less, symbol for it must be

:30:06.:30:09.

done in a way which means the regime is equally, preferably, more

:30:10.:30:13.

effective at reducing carbon emissions and improving energy

:30:14.:30:17.

efficiency. We feel quite strongly that the Government missed a perfect

:30:18.:30:21.

opportunity to make some really radical changes to the energy policy

:30:22.:30:27.

landscape. A sentiment shared by the UK Green building Council who

:30:28.:30:29.

indicated that such slider form is disappointing when a three pronged

:30:30.:30:35.

approach to taxation, reporting and incentives would have really driven

:30:36.:30:39.

change. I want to stress to the house today, anti-government,

:30:40.:30:44.

unnecessary such radicalism really is. The game changing United Nations

:30:45.:30:48.

CRP 21 conference at the latter end of last year marked a watershed

:30:49.:30:55.

moment when tackling climate change. That is because it became a priority

:30:56.:31:01.

on the world stage. The final agreement provided for a limitation

:31:02.:31:03.

on the temperature rise to below 2 degrees. That is the consensus among

:31:04.:31:08.

scientists that a greater increase in damage would be incredibly

:31:09.:31:13.

dangerous. The UK signed up to this agreement and the Prime Minister

:31:14.:31:17.

even delivered a speech in Paris saying, instead of making a visit to

:31:18.:31:21.

our children and grandchildren, we should be taking action against

:31:22.:31:24.

climate change today. The Secretary of State for Energy and Climate

:31:25.:31:28.

Change, the honourable member for Hastings played a crucial part in

:31:29.:31:35.

negotiations. She was responsible for talks that discuss immediate

:31:36.:31:44.

action between 2020. Unfortunately, the Prime Minister, the Secretary of

:31:45.:31:47.

State and this governments are better at talking the talk man

:31:48.:31:51.

walking the walk. In six months before the Paris discussions, based

:31:52.:32:01.

delayed many of their commitments. -- relay. They have scrapped the

:32:02.:32:09.

zero carbon homes pledge. They cut the feed in tariff, a subsidy for

:32:10.:32:14.

solar, I had before percent and actually for clean energy projects

:32:15.:32:17.

has been list. This could lead, anti-government freely admit, to

:32:18.:32:24.

more than 18,600 job losses. New onshore wind farms will not receive

:32:25.:32:29.

subsidies after 2016. Changes have been made to vehicle excise duty,

:32:30.:32:34.

which reduces the incentives for lower emissions vehicles by

:32:35.:32:37.

introducing a flat rate of tax regardless of CO2 emissions after

:32:38.:32:43.

the first year. I could go on, a 1 billion fund was scrapped. They have

:32:44.:32:55.

scrapped safeguards to reduce the environmental risks of fracking and

:32:56.:32:59.

green lighting fracking under national parks. Finally, the

:33:00.:33:01.

Government has still not committed to maintaining, for the long

:33:02.:33:07.

long-term, reduced rate of discount on solar panels, discount and wind

:33:08.:33:11.

turbines on which we will discuss another day. And time again, this

:33:12.:33:15.

would place a lip service to the world's appetite for better climate

:33:16.:33:20.

change policy, but not connected to any substantial action in Whitehall,

:33:21.:33:24.

this is not good enough. We need radical thinking if we are radical

:33:25.:33:27.

change. Around the world, governments are supporting and

:33:28.:33:32.

promoting green energy. Germany's energy transition policy is they can

:33:33.:33:36.

enter the point that last year, 33% of their electricity was generated

:33:37.:33:42.

from renewable sources and the sectors reported 355,000 jobs. In

:33:43.:33:47.

France, all new routes must be nature or solar. These are great

:33:48.:33:56.

examples of why radical policy is still important. And why this

:33:57.:34:02.

Government's failures are so disappointing. That lack of ambition

:34:03.:34:04.

is integral to our opposition amendment today. The Climate Change

:34:05.:34:10.

Levy in its current form is an adequate driver to the reduction of

:34:11.:34:17.

carbon emissions -- inadequate. We so desperately need more adequate

:34:18.:34:21.

action. Westlake tax-raising measure. Up until very recently,

:34:22.:34:28.

this was not the case. As we have seen, the exemption would resume,

:34:29.:34:35.

removed in last year's Finance Bill, despite ad- from the renewable

:34:36.:34:37.

industry. We are not aware of any assessment of the efficacy of the

:34:38.:34:41.

Climate Change Levy since the removal of the exception, which is

:34:42.:34:45.

why our amendment would require the report to make particular reference

:34:46.:34:49.

to it. The second point of reference for the review would be the

:34:50.:34:52.

abolition of the common reduction commitment, which is why the levy

:34:53.:34:57.

are being increased. The Carbon reduction commitment contained a

:34:58.:35:00.

requirement for participants to measure and report electricity and

:35:01.:35:04.

gas supplies annually, and carbon dioxide emissions would then be

:35:05.:35:09.

calculated. Participants must then, by dances for every tonne of carbon

:35:10.:35:15.

that they emit under the scheme. The CRC and therefore forces companies

:35:16.:35:20.

to be proactive, making Protestants think about and technology carbon

:35:21.:35:22.

emissions and actively work to remove them -- reduce them in order

:35:23.:35:29.

to improve their allowances. On this side, we are worried about it

:35:30.:35:34.

becoming a straightforward consumption tax and being absorbed

:35:35.:35:37.

into the company's costs, not requiring the same amount of

:35:38.:35:40.

proactive fault. The Government's response to their consultation on

:35:41.:35:44.

energy taxation stated that respondents supported financial

:35:45.:35:49.

incentives to drive energy efficiencies and that views on the

:35:50.:35:52.

mechanism to deliver an effective incentives were mixed. The

:35:53.:35:57.

governments decided not to introduce a financial incentive at this stage.

:35:58.:36:01.

Because they believe that a simple side tax any form of PC DL is a

:36:02.:36:06.

sufficiently robust signal. -- Climate Change Levy. Could the

:36:07.:36:09.

Minister confirm exactly why the Government decided not to introduce

:36:10.:36:14.

a financial incentive when it was populist respondents, and why it

:36:15.:36:17.

believes the Climate Change Levy is a sufficiently robust signal? The EN

:36:18.:36:23.

DES report recently stated that it remains to be seen whether the CTL

:36:24.:36:28.

alone will drive effort and investment of the 2000 or so CRC

:36:29.:36:33.

participants. Acrobat. Today, while there is evidence that the CRC has

:36:34.:36:43.

driven change, it is not apparent whether it is more than an

:36:44.:36:46.

effectiveness that was from when it was first introduced. They say

:36:47.:36:56.

carbon consumption was reduced. We would, therefore, like the

:36:57.:37:00.

Government to properly assess how effective the Climate Change Levy

:37:01.:37:03.

will be in replacing the advantages of the Carbon reduction commitment,

:37:04.:37:07.

outlined. The final reference for the review will be with reporting

:37:08.:37:10.

requirement by companies and public sector bodies for energy user than

:37:11.:37:16.

double emissions. Now, I am aware, as the Minister's has referred to

:37:17.:37:20.

elder, that the Government as committed to consult on a new carbon

:37:21.:37:25.

energy reporting framework, to be introduced by 2019 and be published

:37:26.:37:30.

later this summer. The Government will propose mandatory annual

:37:31.:37:33.

reporting or organisations within its scope with water or senior level

:37:34.:37:39.

sign off and some public disclosure of data, which we would certainly

:37:40.:37:42.

welcome. However, we are concerned that scrapping the CRC scheme they

:37:43.:37:48.

few gaps whereby companies agreed a Seattle report of an emissions and

:37:49.:37:52.

energy usage will no longer have two. Indeed, the climate change

:37:53.:37:56.

committee highlighted the fact that the CRC and is covered -- CRC scheme

:37:57.:38:03.

covered a range of energy consuming organisations. They went on to say

:38:04.:38:13.

that evidence suggests... The committee recommended that, if the

:38:14.:38:18.

CRC scheme is abolished, it should be adopted by measures to enhance

:38:19.:38:23.

the policy landscape to stimulate energy efficiency and carbon

:38:24.:38:31.

reduction in MPs. -- SMEs. If they think it'll make up for scrapping

:38:32.:38:36.

the Carbon emission reduction, we want to see evidence. Does the

:38:37.:38:46.

Climate Change Levy provide adequate supplements to its predecessor? It

:38:47.:38:51.

is not good enough to streamline the regime if you're doing is making

:38:52.:38:54.

organisations out of having to address the emissions altogether.

:38:55.:39:05.

Honourable members of on this side want to know if it'll be considered

:39:06.:39:09.

when considering how effective the Climate Change Levy will be in

:39:10.:39:14.

reducing emissions. To conclude, and wedding ring around the edges of

:39:15.:39:16.

existing climate change policy without a clear strategy of how we

:39:17.:39:25.

are going to meet our targets. -- the Government is. We must take

:39:26.:39:33.

radical action for radical results. The opposition does not a oppose the

:39:34.:39:44.

scrapping if the Climate Change Levy will the effect of images in

:39:45.:39:46.

emissions. However, we remain to be convinced that it will. We were

:39:47.:39:49.

never like to push for proper assessment from the Government

:39:50.:39:52.

before we support the measure in full. I therefore beg to move that

:39:53.:40:01.

the amendment be made. Thank you. I am writing to sneak in agreement

:40:02.:40:08.

with the amendment, which is number 183, in relation to the changes to

:40:09.:40:14.

the Climate Change Levy. The UK Government's idea to have a Climate

:40:15.:40:17.

Change Levy was an admirable one and I think was introduced as a positive

:40:18.:40:23.

step forward. It is completely reasonable that companies should be

:40:24.:40:26.

made to think about their energy usage and the best they to think

:40:27.:40:30.

about this is too taxing on it. The honourable member for Salford and

:40:31.:40:36.

Eccles gave a speech which spoke about a range of different matters,

:40:37.:40:39.

some of which I will speak on. I will try to tell my speech somewhat.

:40:40.:40:46.

-- curtail. Energy consumption engines of energy usage, hello it is

:40:47.:40:52.

a great idea, it fell to take account of the fact that the Medina

:40:53.:40:58.

has generated, generating energy city 's -- electricity are better

:40:59.:41:01.

than others and the kind change. You cannot come across the board, tax,

:41:02.:41:15.

on everything at the same rate. Some energy is much cleaner than others.

:41:16.:41:20.

It is reasonable to have very little tax rates for those two different

:41:21.:41:25.

things. The Honourable member for Salford and Eccles spoke about some

:41:26.:41:32.

of the impacts that the Government is having on low carbon energy. The

:41:33.:41:34.

Government does not have a good record on supporting low carbon

:41:35.:41:39.

energy and, honestly, it has widely been reported about the support for

:41:40.:41:43.

nuclear energy. In terms of other forms of low carbon energy, it is

:41:44.:41:49.

very difficult for those companies that are engaging, providing this

:41:50.:41:54.

energy to keep up in this ever-changing climate. The current

:41:55.:41:59.

policy framework in the UK Government... The Scottish

:42:00.:42:01.

Government managed to meet its target in 2014, it was announced

:42:02.:42:05.

this year, in reducing greenhouse gas emissions. The target religious

:42:06.:42:09.

by 42% and this happened six years early. -- was reduced by. This was

:42:10.:42:16.

an excellent achievement by Scotland and the Scottish Government to have

:42:17.:42:20.

worked together to achieve this. It will be very difficult for us to

:42:21.:42:26.

this level up with the UK Government's drew on energy policy.

:42:27.:42:28.

Some of the things that are happening is that there is no

:42:29.:42:36.

clarity on winner will be a... That is relation to wind and, that is

:42:37.:42:41.

really important. That is an attacker technology and one which

:42:42.:42:44.

generate electricity cleanly and one that the UK Cameron has to give

:42:45.:42:53.

better clarity on. With Brexit, we have a major problem in Scotland in

:42:54.:42:56.

terms of some of the funding for law carbon energy and low carbon energy

:42:57.:42:59.

project. Particularly grant-making ones that have come from the EU. I

:43:00.:43:04.

know it is slightly out of this debate but I'd appreciate if you

:43:05.:43:06.

great Government would look into whether or not this will continue to

:43:07.:43:11.

be righted, because Scotland should be continuing to innovate for law

:43:12.:43:14.

carbon energy, having massive natural resources. The last thing,

:43:15.:43:20.

which is mentioned by the member for Salford and Eccles, which is

:43:21.:43:24.

shameful is that the rug was pulled out from under the feet of the

:43:25.:43:25.

investors there. I'm not happy with the response and

:43:26.:43:41.

I'm not happy with the fact that I cannot see a climate which can go

:43:42.:43:45.

forward now. If the UK Government was to give more certainty and

:43:46.:43:52.

suddenly decide it supported carbon capture and storage, I can fully

:43:53.:43:54.

understand why nobly would take it up because they would change their

:43:55.:43:59.

mind again. Mr Chairman, there's change, the Climate Change Levy, is

:44:00.:44:03.

penalising low carbon electricity and is barriers in the way of

:44:04.:44:08.

reducing climate change, reducing carbon emissions. This is not

:44:09.:44:12.

something that we want. We should be moving forward progress. This is a

:44:13.:44:16.

regressive step. The Government should bring back back a further

:44:17.:44:20.

report and back the opposition in this. Thank you. I would like to

:44:21.:44:34.

focus on clauses 1232126. Referring to the Climate Change Levy. Both the

:44:35.:44:38.

honourable member from Salford and Eccles and Matt honourable friend

:44:39.:44:42.

from Aberdeen zero spoke comprehensively on the subject. I

:44:43.:44:46.

have particular concerns regarding the removal of exemption for

:44:47.:44:50.

electricity generated from renewable sources. I believe this to be a

:44:51.:44:54.

counter-productive decision which are grossly undermined the

:44:55.:44:59.

development of the UK's energy sector. Sir Roger, the long-term

:45:00.:45:04.

future of our energy market is renewable. The UK and Scotland in

:45:05.:45:08.

particular has extraordinary potential in the renewable sector.

:45:09.:45:12.

Scotland itself has 25% of the wind in title potential of all of Europe

:45:13.:45:18.

and 10% of the ways potential in Europe. For a small country in terms

:45:19.:45:24.

of both land mass and population, nonetheless, one third of the UK

:45:25.:45:28.

land mass, these figures represent an enormous potential. Not just in

:45:29.:45:32.

leading the world in renewable energy production but are creating

:45:33.:45:36.

tens of thousands of jobs in ushering in substantial economic

:45:37.:45:41.

growth. This Conservative UK Government seems determined to tear

:45:42.:45:44.

down any progressive policies intended to encourage the production

:45:45.:45:47.

and incentivise Asian of green energy. Just this year, the

:45:48.:45:54.

Government began the process of privatising the green investment

:45:55.:45:56.

bank, something touched on by the honourable member of Salford and

:45:57.:46:01.

Eccles. We have watched this Government cut subsidies for... By

:46:02.:46:08.

65%. A massively damaging blow to the industry that says households

:46:09.:46:12.

just a few pounds. Again, as mentioned by the honourable member.

:46:13.:46:15.

Ford and Eccles again as Wells may honourable friend from Aberdeen, I

:46:16.:46:20.

could go on to just mention the scrapping of support from onshore

:46:21.:46:24.

wind, the biomass aryl subsidy, the killing of the flagship green homes

:46:25.:46:30.

scheme, the Cardinal capture an initiative which I was heavily

:46:31.:46:32.

involved in having been cancelled and what of the future? What hope is

:46:33.:46:37.

there for that given the track record of this Government? The

:46:38.:46:42.

Climate Change Levy was a positive step in the right direction. It was

:46:43.:46:48.

policy designated to provide a disincentive to polluting

:46:49.:46:50.

technologies. It is perverse that the Climate Change Levy has been

:46:51.:46:55.

applied to green clean energies. That is not what it was intended

:46:56.:47:00.

for. This change impacts disproportionally on Scotland, which

:47:01.:47:06.

despite having under 10% of the UK's population, as mentioned by my

:47:07.:47:09.

honourable friend from Aberdeen night, produces one third of its

:47:10.:47:15.

renewable energy. Despite the austerity programme implemented by

:47:16.:47:19.

this UK Government, Scotland has continued to drive forward in

:47:20.:47:22.

reducing its carbon footprint and increasing the use of Brunel to

:47:23.:47:26.

stay. Just earlier this month, it was announced that we in Scotland

:47:27.:47:34.

reach our target of a 42% reduction in carbon emissions by 2020. That is

:47:35.:47:39.

six years earlier than expected. The SNP Scottish Government has no set a

:47:40.:47:44.

more ambitious target of over 50% reduction in carbon emissions by

:47:45.:47:50.

2020. However, I fear that despite our progress in this matter,

:47:51.:47:53.

unfortunate choices by this Conservative UK Government in terms

:47:54.:47:57.

of both their ill-advised and counter-productive austerity

:47:58.:48:01.

obsession and their mishandling of the EU referendum leading to a vote

:48:02.:48:05.

free Brexit, will end up with a regression rather than progression

:48:06.:48:09.

of climate change. And the promotion of renewable energy. For the above

:48:10.:48:19.

reasons, I wholeheartedly support the amendment by the Honourable

:48:20.:48:26.

member for Salford and Eccles. Thank you. The Climate Change Levy was a

:48:27.:48:35.

and makes a big significant contribution to the revenues of the

:48:36.:48:40.

exchequer and had been on a declining path. With the changes

:48:41.:48:44.

that have come in, that path is now stabilised. It had been providing

:48:45.:48:49.

increasingly poor value for money partly because one third of its

:48:50.:48:55.

tally was going to generators overseas and that generation does

:48:56.:48:58.

not contribute to UK targets but also quite often is and benefits

:48:59.:49:06.

from subsidies and benefits at home. I was also only in direct support

:49:07.:49:10.

for renewables. This is going to go to the heart of what the double

:49:11.:49:13.

members from the Scottish National party were saying. The renewables

:49:14.:49:22.

obligation direction a much more effective in providing direct

:49:23.:49:24.

support. At a higher level, of course, as well per hour to bring on

:49:25.:49:33.

that generation that we need. Because of the success of the

:49:34.:49:38.

deployment of renewables in this country, that Parry. --

:49:39.:49:45.

paradoxically has an adverse effect on the CC Elle exemption such that

:49:46.:49:52.

by the early 20 20s, the extension would not be effective in

:49:53.:49:57.

stimulating new capacity to come on stream and its value would be

:49:58.:50:02.

declining to generate as because... Just let me finish and then I will.

:50:03.:50:08.

Because the supply of renewables and of these Levy exemption certificates

:50:09.:50:13.

would actually exceed in volume total potential demand from eligible

:50:14.:50:15.

customers in business and the public sector. Does he concede that it

:50:16.:50:23.

would be effective to keep it in place now? He does not. As I was

:50:24.:50:33.

trying to say, this is not a cliff edge thing. It's having a declining

:50:34.:50:41.

effectiveness over time. A lot of the value leagues overseas but most

:50:42.:50:45.

important of all, is this point that there are other ways of directly

:50:46.:50:52.

stimulating new renewables provision and without getting too much into

:50:53.:50:56.

the details and weeds of what goes where, its make sure that that

:50:57.:51:02.

benefit is going directly to the generators not being split between

:51:03.:51:06.

different parts of the value. In the case of CFT is, it stabilises the

:51:07.:51:15.

price relative to fluctuating of the wholesale market that in turn makes

:51:16.:51:22.

its investor confidence greater and can help in driving investments. The

:51:23.:51:26.

honourable lady who speaks for the opposition asked about the

:51:27.:51:33.

transition period in her several peak use about responses that I had

:51:34.:51:39.

been received. Supplies were invited to respond to the informal

:51:40.:51:44.

consultation and of those who responded, only one requested a

:51:45.:51:49.

transitional period in excess of three years. All others were content

:51:50.:51:53.

with an end date of the 31st of March 20 18th and most would already

:51:54.:51:58.

have used their Levy exemption certificates within one year. Not

:51:59.:52:04.

publish the results because, as you rightly said, it did include

:52:05.:52:07.

commercially sensitive information received from them. With the size of

:52:08.:52:13.

the sample, the number of responses that were talking about, were not

:52:14.:52:19.

speaking in terms of an average response. The average period that

:52:20.:52:23.

was called for does make a great deal of sense. Turning to the

:52:24.:52:30.

abolition of the CIC co-production that commitment and the changes to

:52:31.:52:35.

the Climate Change Levy mean rates, this is a big simplifying moves and

:52:36.:52:40.

we did have extensive consultations both of the written sort but also of

:52:41.:52:46.

the meeting people sort. I sat in a number of those myself and one of

:52:47.:52:48.

the things that business said loud and clear was that they wanted to

:52:49.:52:54.

simplify the way all this worked. They did value the discussions that

:52:55.:52:58.

happened within companies and -- in elevating the role and the salience

:52:59.:53:04.

of energy efficiency within their companies but these ECL as a single

:53:05.:53:12.

tax will be a straightforward price signal and we will be removing some

:53:13.:53:20.

of that additional administrative burden. The Government will also

:53:21.:53:24.

consult on a simplified reporting framework in 2016 which will

:53:25.:53:28.

encourage large businesses to identify energy efficiency savings.

:53:29.:53:31.

In addition to the tax changes, this will further enhance the UK's

:53:32.:53:37.

ability to reduce its carbon emissions and the intent to publish

:53:38.:53:42.

an impact assessment alongside their consultation on a simplified

:53:43.:53:45.

reporting framework and this will come -- include analysis of the

:53:46.:53:50.

impact on carbon emissions. Rebalancing this ECL rates towards

:53:51.:53:54.

gas will better incentivise remissions. May I just finished in

:53:55.:54:08.

restating the very firm commitment of this Government and very strong

:54:09.:54:13.

track record of this Government in terms of our commitment to reducing

:54:14.:54:17.

emissions. Since 2010, we have reduced the UK's greenhouse gases by

:54:18.:54:23.

14%. We have outperformed our European counterparts with the

:54:24.:54:27.

largest cut in greenhouse emissions since 1990. We secured the first

:54:28.:54:36.

truly global, legally binding agreement with our Secretary of

:54:37.:54:39.

State playing a key role in the Paris agreement. Our annual rate

:54:40.:54:44.

support for renewables will more than doubled to more than ?10

:54:45.:54:51.

billion in 2020, 20 21. We are the first major developed economy in the

:54:52.:54:56.

world to commit to phase out unabated coal, the dirtiest fossil

:54:57.:55:01.

fuel by 2025. We are the most leading player in offshore wind with

:55:02.:55:05.

just over five megawatts installed now. Forecast to double by the end

:55:06.:55:09.

of this Parliament. There can be no doubt about the credentials of this

:55:10.:55:14.

Government when it comes to the commitment of reducing emissions

:55:15.:55:21.

with these tax changes, we have reformed a tax which was proving

:55:22.:55:25.

less effective over time in what its original state today was in 2001

:55:26.:55:31.

when the proportion of renewable electricity was 2.5% in those days

:55:32.:55:35.

and with the changes to business taxation, we are keeping the price

:55:36.:55:40.

signal very firm and sharper aye reducing the administrative burden

:55:41.:55:44.

and I encourage all honourable members to support these clauses and

:55:45.:55:47.

not to support the proposed amendments.

:55:48.:55:57.

The iMac have it. Clauses 133 and 134. As many as are of the opinion,

:55:58.:56:07.

say "aye". To the contrary, "no". , ayes habit. Formerly. The question

:56:08.:56:17.

is that the amendment 183 being made, as many of that opinion and

:56:18.:56:20.

say I. Contrary, no. Division. As many of that opinion say I,

:56:21.:57:44.

contrary zero. For the eyes, tellers for the nose, Margot James and Guy

:57:45.:57:45.

Opperman. The ayes to the ride, 237. The noes

:57:46.:11:36.

on the left, 203. Ayes to the right 237, nose to the right 333. The noes

:11:37.:11:47.

have it. Clauses 135 and one the bill. As many as are of the opinion,

:11:48.:11:51.

say "aye". To the contrary, "no". The ayes habit. Group three,

:11:52.:11:56.

insurance premium tax. Clause drugged and 39. -- one 29. Good

:11:57.:12:11.

evening. I beg to move that clause 129, which increases the standard

:12:12.:12:14.

rate of insurance premium tax from 9.5 to 10% and part of this ill.

:12:15.:12:21.

This is in order to raise revenue to invest in flood defences and one

:12:22.:12:27.

civilian spending. Insurance premium tax, Roger, is due on insurance

:12:28.:12:32.

premiums, Ryan Rowland to risks in the UK, regardless of where the

:12:33.:12:40.

insurer is based. This includes any broker commissions and other

:12:41.:12:43.

directly related costs. It is a charge on the insurer, not on the

:12:44.:12:48.

individual. Insurance premium tax is due on general insurance, which

:12:49.:12:51.

accounts for approximately 20% of total insurance premiums. General

:12:52.:12:58.

insurance includes motor insurance, home insurance, employers liability

:12:59.:13:03.

insurance and medical insurance. Approximately 80% of insurance

:13:04.:13:05.

premiums are exempt from insurance premium tax. Exempt insurance

:13:06.:13:11.

includes long-term insurance, such as life insurance and critical

:13:12.:13:12.

illness cover. Between its savings product and

:13:13.:13:23.

long-term insurance products which can serve the same purpose for

:13:24.:13:29.

consumers. Reinsurance is also exempt to avoid double taxation.

:13:30.:13:34.

Most insurance which is subject to insurance premium taxes will be

:13:35.:13:38.

increased to 10%. There is also a higher rate of insurance premium tax

:13:39.:13:43.

which applies to travel insurance and an warranty insurance, it is

:13:44.:13:47.

charged at the higher rate of 20% in order to prevent VAT avoidance and

:13:48.:13:53.

this is unaffected by this change. Although insurance premium taxes is

:13:54.:13:57.

charged on general insurance, there is no VAT on any sort of insurance

:13:58.:14:02.

at all. Clause 129 sets out an increase in the standard rate of

:14:03.:14:07.

insurance premium tax from 9.5% to 10% which will raise around ?210

:14:08.:14:12.

million per year which will be used to fund investment in flood defence

:14:13.:14:16.

and resilience. Over this spending review, we will spend an extra ?700

:14:17.:14:21.

million on the flood defence measures in England. This is an

:14:22.:14:27.

addition to our existing ?3.2 billion float investment programme.

:14:28.:14:30.

As announced at the budget, the additional investment in flood

:14:31.:14:35.

defences will be split between maintenance and capital spending.

:14:36.:14:39.

Minted in spending will be increased by ?40 million per year taking it to

:14:40.:14:43.

?1 billion in total this Parliament. This will help protect an extra

:14:44.:14:47.

20,000 homes by keeping existing defences operational. In the budget,

:14:48.:14:52.

the Government also announced over ?150 million of its additional

:14:53.:14:55.

capital spending which will fund schemes affected by last December's

:14:56.:15:01.

funds. This will include ?150 million per Yorkshire, with schemes

:15:02.:15:06.

in Leeds and the Calder Valley to protect 300,000 homes and 7000

:15:07.:15:10.

businesses. ?33 million will also be invested in Cumbria to better

:15:11.:15:16.

protect 1700 properties and key local infrastructure. The findings

:15:17.:15:19.

of the national flood resilience review which is considering the

:15:20.:15:22.

resilience ever committees and infrastructure will help the

:15:23.:15:25.

Government decide how remaining funding is to be spent and it will

:15:26.:15:30.

report in the autumn. As flood defence spending is a devolved

:15:31.:15:34.

matter, the Barnett Formula will be applied in the normal way and

:15:35.:15:38.

funding applied to the devolved administration in line with that

:15:39.:15:41.

been spent in England. The new standard rate of insurance premium

:15:42.:15:45.

tax will be 10% and will take effect from the 1st of October 2016. This

:15:46.:15:52.

change will affect directly all insurers who write premiums for

:15:53.:15:56.

general insurance. It may also affect businesses and households who

:15:57.:15:59.

purchase general insurance at those insurers choose to pass on the

:16:00.:16:02.

additional cost of the tax to the customers. It is a tax on insurers

:16:03.:16:08.

and so it is for insurers to decide whether to adjust their prices in

:16:09.:16:12.

response to this great change. Many factors affect the cost of

:16:13.:16:15.

insurance, these include the insurers's assessment of risk, can

:16:16.:16:19.

petition in the market and how will the insurer's investment report --

:16:20.:16:24.

performing. They also affect pricing and have benefited from cuts to

:16:25.:16:28.

corporation tax. Even if insurers decide to pass on the entire impact

:16:29.:16:33.

of the rate change, this will add about ?1 to the average home and

:16:34.:16:37.

contents policies ensuring the and ?2 to the average motor insurance

:16:38.:16:44.

policy. Increasing the standard rate of insurance premium tax by 0.5%

:16:45.:16:50.

will raise revenue to invest in flood defence and resilience which

:16:51.:16:53.

will enable us to better protect against floods such as those we saw

:16:54.:16:57.

last winter. I move that this clause stands part of the bill. Thank you.

:16:58.:17:05.

I appreciate being given the chance to talk about insurance premium tax.

:17:06.:17:10.

Insurance premium tax is something that the SNP raised at some length

:17:11.:17:17.

last year because the UK Government last year increased the tax by about

:17:18.:17:23.

3.5%, it went up by 6% to nine have percent. We were bit concerned that

:17:24.:17:29.

that was an incredible hike with very little warning and that it set

:17:30.:17:34.

a possible president. In terms of the problems with this, I want to be

:17:35.:17:39.

clear that we are not speaking against additional money being spent

:17:40.:17:42.

on flood defences. That's a great idea with the climate change that we

:17:43.:17:46.

are facing and with the devastating impact has been an committees. I can

:17:47.:17:50.

understand completely why the Government is choosing to spend

:17:51.:17:53.

money on that. My issue is with the fact that insurance premium tax is

:17:54.:17:58.

possibly the wrong way through which to do it. I don't want people to be

:17:59.:18:02.

discouraged from engaging with insurance. I don't want people to

:18:03.:18:07.

not want to take out insurance on this basis. I understand what the

:18:08.:18:10.

minister says about the fact that this could be a minor change to

:18:11.:18:15.

people's bill. It's not a significant amount of money but my

:18:16.:18:19.

concern is not what the 0.5% but with the fact that this sets a

:18:20.:18:24.

precedent. This and last year, and concerned that the UK Government

:18:25.:18:28.

will decide to increase this further from the level it is now going to

:18:29.:18:32.

and that's my major concern with this issue. One of the things that

:18:33.:18:39.

the Chancellor pointed out this morning that the UK's economy is

:18:40.:18:45.

currently volatile, the markets are volatile and were going to have

:18:46.:18:50.

continued volatility. With that situation, we don't want people to

:18:51.:18:53.

be worried about their finances going into the future and to not

:18:54.:18:56.

take out insurance because they don't know how the financial

:18:57.:19:01.

situation is going to work. Because things are so uncertain at the

:19:02.:19:04.

moment with the economy, we need to make sure that we are not

:19:05.:19:08.

discouraging people from taking out insurance. It's necessary to have

:19:09.:19:12.

home and motor insurance, particularly with the climate change

:19:13.:19:15.

problem were having at the moment. Home insurance, the premiums have

:19:16.:19:20.

increased -- increased significantly and although one kind will be the

:19:21.:19:23.

average increase on insurance, those people that have been hit by

:19:24.:19:27.

flooding owner having massive premiums to pay and it's likely that

:19:28.:19:31.

the 0.5% increase will disproportionately impact them and

:19:32.:19:35.

they're already having to pay increase premiums. I want to make

:19:36.:19:38.

clear that were not intend to push that about so we would make people

:19:39.:19:43.

stay here any longer than we have two but I appreciate the chance I

:19:44.:19:48.

want to make clear that our issues are with the longer term for this.

:19:49.:19:52.

0.5% is fairly minor but it continues to rise year-on-year,

:19:53.:19:59.

that's going to be an added issue for household budgets and it's going

:20:00.:20:03.

to disproportionately impact on people negatively each year. Thank

:20:04.:20:10.

you very much. Thank you, Mr Chairman. I'm pleased to contribute

:20:11.:20:16.

to this debate to speak to the SNP and the contributions by members on

:20:17.:20:21.

each side. As the financial Secretary has is said, this finance

:20:22.:20:26.

bill is rooted in unfairness and we are concerned that this tax change

:20:27.:20:29.

may further in gender that unfairness of it is passed on to

:20:30.:20:36.

customers. As we have already heard, clause one to nine increases the

:20:37.:20:39.

standard rate of insurance premium tax from 9.5% to 10%, initially from

:20:40.:20:45.

this October and with all premiums, including those in the special

:20:46.:20:49.

accounting scheme, subject to it from February 2000 and 17. The

:20:50.:20:53.

Chancellor also announced in the budget that the funds generated by

:20:54.:20:56.

this increase will be allocated to increase spending in flood defences.

:20:57.:21:04.

Mr Chairman, how concern is how does this affect the insurance market?

:21:05.:21:08.

How does in fact those millions of customers who need to access

:21:09.:21:11.

insurance and how effectively will it deliver for flood defences that

:21:12.:21:15.

we so desperately need's this is the third increase in insurance premium

:21:16.:21:20.

tax under this Chancellor after the increase in 2011 and that made

:21:21.:21:26.

Finance Bill last year. The first increase was from 5% to 6%, a

:21:27.:21:33.

comparative leap of 20%, last year 's increase was from 6% to 9.5% then

:21:34.:21:41.

the 58% leap, this year's not .5 increase to 10% of beer

:21:42.:21:46.

comparatively smaller. I do know that some insurance companies have

:21:47.:21:52.

welcomed that they rise was not larger but it does follow hot on the

:21:53.:21:58.

heels of the previous change. The frequency of increases as picking up

:21:59.:22:01.

and the frequency of these rate rises is causing concern and I do

:22:02.:22:09.

note, Mr Chairman, that then blocked and of PricewaterhouseCoopers, said,

:22:10.:22:12.

back in March, to quote, the concern to many insurers is the prospect of

:22:13.:22:21.

gradual but frequent rate rises. And David from the Association British

:22:22.:22:24.

industry recently said that they have urged HM Treasury and HMI seat

:22:25.:22:30.

to revisit the arrangements for how rises are implemented in order to

:22:31.:22:35.

put members on a clear fitting in future rises come. Perhaps, Mr

:22:36.:22:39.

Chairman, the Minister could put us straight on whether the Government

:22:40.:22:42.

expects to hold the current rate where it is after this finance bill

:22:43.:22:47.

for the next five years or just a year's and will be see if further

:22:48.:22:53.

change in the Autumn Statement? I am sure, Mr Chairman, that the industry

:22:54.:22:57.

and consumer groups and indeed, policyholders, will be hanging onto

:22:58.:23:01.

this debate. The latest increase brings the standard rates of the tax

:23:02.:23:08.

up to a total of ten per cent and that is the Dublin, 100% increase,

:23:09.:23:15.

since 2011. Cumulatively, these three rate rises passed on to

:23:16.:23:19.

customers, can potentially have a real impact on disposable income and

:23:20.:23:24.

a real impact on policy uptake. We understand that this change will

:23:25.:23:28.

impact on 26 million drivers and 20 million households. It will also hit

:23:29.:23:36.

3 million pet policies and 3 million private medical policies. And our

:23:37.:23:40.

concern is in that the industry will pass on this cost to its customers.

:23:41.:23:45.

Money-saving expert, put it most bluntly in their immediate comment.

:23:46.:23:50.

They said, Mr Chairman, that millions of households and motorists

:23:51.:23:54.

will pay more. A further rise in the cost of pets, car, mobile contents,

:23:55.:23:59.

buildings and private medical insurance. James Dalton, director of

:24:00.:24:06.

the General insurance policy Association of British insurers,

:24:07.:24:09.

said another increase in insurance premium tax will be a breed in the

:24:10.:24:13.

responsible that targets those who do the right thing. If we hit those

:24:14.:24:17.

on low incomes, it increases the risk that some people reduce their

:24:18.:24:25.

cover or stop insuring altogether. The association chartered certified

:24:26.:24:28.

accountants also said the rise will affect anyone who has the home or

:24:29.:24:32.

car insurance for ever the left. More recently in the last few weeks,

:24:33.:24:38.

the AA has published its latest British insurance premium index,

:24:39.:24:42.

covering the first few months of 2016. It found the average coated

:24:43.:24:48.

premium, the average of the five cheapest quotes freight customers in

:24:49.:24:52.

a variety of scenarios, has jumped. It has jumped by 5.4% to ?114 .52 a

:24:53.:24:59.

year at the end of March when the 16. Mr Chairman, the emerging

:25:00.:25:06.

evidence is of an increase in cost of insurance to the customer. I will

:25:07.:25:11.

come to the issue of flood defences afterwards but the Chancellor did

:25:12.:25:14.

state during his budget speech that this measure is also intended to

:25:15.:25:20.

help fund the cost of flood defences that he wants to raise the issue of

:25:21.:25:25.

flood insurance, including the flood rescreening which is already

:25:26.:25:30.

increasing costs for customers. We, on these benches, of course support

:25:31.:25:35.

the introduction of flood but since insurers are having to be a total of

:25:36.:25:40.

180,000,002 flood rate, that is being passed on. In a survey by the

:25:41.:25:45.

Financial Times, seven out of the ten largest home insurers said they

:25:46.:25:51.

would pass all or some of the levy directly to customers. I understand,

:25:52.:25:57.

Mr Chairman, that 350,000 properties are currently expected to benefit

:25:58.:26:00.

and we believe it's vital that those in flood prone areas can access the

:26:01.:26:05.

vital insurance they need. Particularly so if the instances of

:26:06.:26:10.

flooding as a result of climate change and appeared to be an

:26:11.:26:13.

increase. If we understand that insurance premium tax and the flood

:26:14.:26:18.

reliving their being passed on to customers, what is potential impact

:26:19.:26:23.

of that? Our concern is what this will mean in terms of take-up for

:26:24.:26:28.

those on the margins, those hit by other attacks on income in this

:26:29.:26:32.

finance bill and in the Chancellor's budget and, who knows, in his

:26:33.:26:36.

emergency budget to come and those hit by excessive cuts to pay, cuts

:26:37.:26:39.

to pensions and protection of welfare payments over the last six

:26:40.:26:45.

years. The Government policy paper relating to be change in this bill

:26:46.:26:50.

says, as follows, the measure is expected to have a small impact on

:26:51.:26:54.

individuals and households perched on a insurance which is not exempt

:26:55.:27:00.

from IPT. If insurances... I would like to take this opportunity to ask

:27:01.:27:07.

the minister what does a small impact mean? Which individuals and

:27:08.:27:10.

households are being impacted upon and what discussions to the Treasury

:27:11.:27:14.

hold on a likelihood of the increase being passed on to customers, both

:27:15.:27:20.

with insurance providers and also with consumer groups? The

:27:21.:27:24.

Government, policy paper also says that no equality is impacts have

:27:25.:27:31.

been identified. The Association of British insurers has highlighted

:27:32.:27:35.

that many families, however, face insurance bills around ?100 higher

:27:36.:27:41.

as a result of last year's increase. We are concerned that this is the

:27:42.:27:45.

tax burden that will ultimately be paid by ordinary people taking the

:27:46.:27:47.

responsible approach and insuring their homes and motor vehicles. What

:27:48.:27:54.

will this mean to those on lower incomes? Will younger or older

:27:55.:27:59.

drivers be disproportionately, and firstly affected and can be Minister

:28:00.:28:03.

say how the impact on this change will be monitored? We are concerned

:28:04.:28:08.

about the impact of rising costs and this contributes to our overall

:28:09.:28:12.

concerns about this finance bill as a whole and that is why when that

:28:13.:28:17.

last changed to insurance premium tax was discussed in the previous

:28:18.:28:21.

finance bill just a few months ago, the member for Worsley and Eccles

:28:22.:28:26.

size moved an amendment. In last year's finance bill in the first day

:28:27.:28:31.

of the committee, the Labour benches put forward an amendment. We were

:28:32.:28:35.

seeking a review of the impact of the then more significant rise.

:28:36.:28:40.

We saw the review after they want passing of the act to look at the

:28:41.:28:46.

impact of any further rise any standard rate insurance premium tax,

:28:47.:28:51.

with particular attention of the impact on the price charge of

:28:52.:28:54.

insurance policies and the cake top of insurance policies. Mr Channon,

:28:55.:29:03.

these concerns do still stand. -- chairman. When the Government last

:29:04.:29:19.

increased IgG in 2007 -- IPT. They said they were not denying it, they

:29:20.:29:23.

simply needed the money. In September last year, the minister

:29:24.:29:27.

said, we expect that any impact on consumers will be modest but he also

:29:28.:29:33.

said that the average household expenditure and insurance increased

:29:34.:29:40.

by 70p per week. Here we are again. I want to ask the Minister can

:29:41.:29:44.

confirm it is your's increase will be asked to the best of the

:29:45.:29:48.

Minister's knowledge and with the Minister still picked to those

:29:49.:29:53.

figures? We have already asked that the previous increases subject to

:29:54.:29:56.

review and we still do believe that such a review is important so that

:29:57.:30:00.

we have the clear evidence before us of the impact on customers. That is

:30:01.:30:05.

our position and that is why they are not supporting the bad part

:30:06.:30:11.

tonight, though we do recognise the concerns of the ex-MP. Much of our

:30:12.:30:18.

review of the bill requires change -- S NP. I also want to Aske

:30:19.:30:22.

question of the flood defence spending. That this tax rise will

:30:23.:30:31.

find. Millions of properties are at risk of flooding from surface water,

:30:32.:30:37.

the sea, and other things in England. The whole of the UK needs

:30:38.:30:46.

?1.1 billion of funding. There was a very significant increase in flood

:30:47.:30:53.

defence spending from 2007 to 2010. Spending increased by three quarters

:30:54.:30:58.

in real terms. We all remember who was in Government then. We know that

:30:59.:31:04.

the spending and maintaining of of flood defences fell at the lack of

:31:05.:31:10.

until 2014 and we know which covenant was in power then. Given

:31:11.:31:15.

the dots, given the cut we know are being imposed, will be ?700 million

:31:16.:31:24.

bonus to insurance premium tax deliver sustainable and equitable

:31:25.:31:30.

funding? Will the committee on climate change recently concluded

:31:31.:31:33.

that the ?500 million gap has emerged between what the coalition

:31:34.:31:39.

spent in 2015 and what is required to keep pace with climate change.

:31:40.:31:44.

Friends of the Earth acknowledged that the Chancellor has closed the

:31:45.:31:48.

gap and, of course, we welcome that. But the Chancellorsville to ensure

:31:49.:31:55.

future investment keeps pace with flood risk. -- Chancellor needs to

:31:56.:32:04.

ensure. The money that must be spent is welcomed, and welcomed by those

:32:05.:32:09.

on this side of the house. Does it deliver what we need and isn't

:32:10.:32:13.

sustainable? I would like the Minister to comment about how the

:32:14.:32:22.

decision was made to, "Technically hypothecated" the measure for flood

:32:23.:32:26.

defences and what the rationale is. There are few and those -- few

:32:27.:32:32.

instances of hypothecated tax measures. We need to adapt the need

:32:33.:32:38.

of flood insurance and provision of flood defences and that is not a

:32:39.:32:41.

nasty case of those paying other forms, such as pet insurance,

:32:42.:32:46.

currently flood defences from general taxation. Likely be increase

:32:47.:32:51.

of ?700 million not be found general taxation? Due Evans, at the

:32:52.:32:57.

Association of British insurers, has argued against the technical

:32:58.:33:01.

hypothecation and wrote in his reflection on the budget that he

:33:02.:33:05.

believes, in his words, that it is a slippery slope and we have to

:33:06.:33:08.

continue to argue for all flood defence spending to come from

:33:09.:33:13.

central expenditure. Can ministers say something about the decision to

:33:14.:33:18.

find flood defence spending to this new tax increase? Was it something

:33:19.:33:22.

that was discussed with flood insurers in a band? How were they

:33:23.:33:27.

monitor how the 700 million and stated is spent and, as a number of

:33:28.:33:33.

flooding Greece, will it be increase? Fundamentally, so it is on

:33:34.:33:38.

the record, can the Minister confirm whether or not hypothecation will

:33:39.:33:46.

actually take place? The Chancellor has many representations, Golden

:33:47.:34:00.

Valley is one of those, who are calling for funding for flood

:34:01.:34:05.

defence. I would highlight recent contributions that my honourable

:34:06.:34:08.

friend, the member for the left, my honourable friend, from your

:34:09.:34:16.

central, raised these points about efficiency and flood plans. The

:34:17.:34:23.

extra funding meant ?150 million extra in Yorkshire, covering Golden

:34:24.:34:29.

Valley and ?150 million extra in Calder Valley. This translates to

:34:30.:34:37.

?355 million will be, when the Environment Agency in 2011 said the

:34:38.:34:45.

river in the Leeds needed more than this, ?360 million, planned. In this

:34:46.:34:50.

area, we are likely to increase in unique identifying resources to fund

:34:51.:34:55.

flood prevention measures. Once the funds from the increase insurance is

:34:56.:34:59.

brilliant tax are exhausted, will the governments simply continue to

:35:00.:35:04.

raise its? So, Mr Chairman, I would question whether this is enough and

:35:05.:35:09.

whether seeking to drive extra cash to insurance premium tax is a

:35:10.:35:13.

stopgap to patch things up. Patching things up is not enough, given the

:35:14.:35:20.

impact of climate change and the increasing likelihood of further

:35:21.:35:23.

flooding. Patching up is all we get from a governments that is prepared

:35:24.:35:26.

to slash spending on welfare, while giving freebies to the wealthiest in

:35:27.:35:31.

Capital Gains Tax. We are never going to monitor the impact of the

:35:32.:35:36.

rise of insurance premium tax, its effect on the industry, its effect

:35:37.:35:41.

on customers and also it effectiveness in delivering the

:35:42.:35:44.

flood defence we need. We will not be voting on the stand part and we

:35:45.:35:49.

will continue oppose this Finance Bill. Well, if I know that the

:35:50.:35:58.

opposition is having a hard time being in opposition at the moment

:35:59.:36:03.

but I think it can only be left to the imagination how hard they might

:36:04.:36:06.

find it with the difficult choices that people who make Government.

:36:07.:36:12.

Because what I can say is that I think we all agree that flood

:36:13.:36:16.

defence spending is an incredibly important part of what we need to do

:36:17.:36:24.

how Archimedes. The come as a Leeds NP, I would've liked to have your

:36:25.:36:27.

welcome and more about the additional spending that has been

:36:28.:36:32.

given to flood defences in his constituency. I also represent a

:36:33.:36:41.

very flood prone area, and now one in Government argues for more money

:36:42.:36:48.

for flood defence is more than I do. It is very important that we

:36:49.:36:52.

continue to find ways to make our country more resilient to what will

:36:53.:36:58.

occur on unpredictable occasions when we have the kind of weather

:36:59.:37:07.

that we had last winter. The honourable lady to represent

:37:08.:37:13.

Aberdeen North was right in pointing out the importance of flood defence

:37:14.:37:17.

spending. She was concerned about the fact that this budget raises

:37:18.:37:23.

insurance premium tax by 0.5% and she asked whether that was our

:37:24.:37:30.

policy to make any further changes to insurance premium tax. There are,

:37:31.:37:35.

I will just have to give her, I'm afraid, the standard Treasury

:37:36.:37:38.

Minister answer, which she can probably guess, which is that the

:37:39.:37:41.

Government eats all taxes under review. This increase, of 0.5%, as

:37:42.:37:50.

others have pointed out with something that is considerably less

:37:51.:37:58.

than what is feared at the time. In terms of the availability of flood

:37:59.:38:03.

insurance for homeowners, I think the flood initiative has been very

:38:04.:38:09.

helpful and beneficial in making sure that those homeowners who have

:38:10.:38:14.

perhaps in the past found it difficult to access affordable flood

:38:15.:38:19.

insurance are able to continue to access it. That is something I think

:38:20.:38:23.

that has been very widely welcomed by those homeowners across the

:38:24.:38:31.

country. Certainly, in terms of my own constituency experience, it is

:38:32.:38:33.

very important that people shop around. That they shop around if

:38:34.:38:43.

there are particular insurer is is being difficult. There is a brokers

:38:44.:38:49.

Association that can be very helpful in terms of alternatives. The

:38:50.:38:55.

honourable gentleman asks about hypothecation. He also asked about

:38:56.:39:00.

the amount of rate increases. We have to keep this in perspective.

:39:01.:39:04.

Hello I do welcome the Labour Party's southern welcoming of lower

:39:05.:39:11.

taxes, something I hope all parties can subscribe to. -- scored in

:39:12.:39:17.

welcoming. It is worth putting in perspective Andy Donald gentleman

:39:18.:39:22.

asked what it will actually cost. This will cost, in terms of the

:39:23.:39:26.

average annual combined contents and building insurance, this measure

:39:27.:39:30.

would add just ?1 to the annual bills, or 2p per week. Engines of

:39:31.:39:38.

the average motor insurance premium, it will add just ?2 per year, or 4p

:39:39.:39:44.

per week. Bearing in mind that just going from one petrol station to a

:39:45.:39:48.

slightly better value petrol station can save you considerably more than

:39:49.:39:51.

that, I think that does this measure into perspective, and presumably...

:39:52.:39:58.

I can't imagine there is anything better or more exciting on

:39:59.:40:00.

television at the moment than this but it may explain the fact that the

:40:01.:40:07.

chamber is not a vigorously attended. With those points and six,

:40:08.:40:14.

the link that we have made, rather than explicit hypothecation is

:40:15.:40:20.

something that I think men these measures have been pretty widely

:40:21.:40:26.

welcomed by all commentators. And without any more and you have given

:40:27.:40:32.

rival attractions on television, I would like to commend this clause to

:40:33.:40:39.

the house. The question is that was one to nine stand part of the As

:40:40.:40:42.

many as are of the opinion, say "aye". To the contrary, "no".. I

:40:43.:40:45.

think the ayes have it, the ayes have it. The wit to move the

:40:46.:40:53.

progress motion. The question is that I do know what progress and as

:40:54.:40:57.

leave to say no again. As many as are of the opinion, say "aye". To

:40:58.:41:01.

the contrary, "no". The ayes have it, the ayes have it.

:41:02.:41:26.

I beg to move this house to now add your own. -- Genaro adjourn. The

:41:27.:41:43.

question is as an the order paper. As many as are of the opinion, say

:41:44.:41:46.

"aye". To the contrary, "no". The ayes habit. The question is as on

:41:47.:41:52.

the order paper. As many as are of the opinion, say "aye". To the

:41:53.:41:55.

contrary, "no". The ayes have it. The ayes have it. I beg to move this

:41:56.:42:08.

house to now add you're in. -- adjourn thank you.

:42:09.:42:11.

This debate comes across the backdrop of the tumultuous events

:42:12.:42:14.

that you place in the UK following the referendum at Thursday. I

:42:15.:42:18.

applied for the debate before that time so I am grateful that I have

:42:19.:42:25.

been granted it. I also wanted thank the library volunteer the timely

:42:26.:42:27.

responses to some of the queries I have had. Just before the historic

:42:28.:42:33.

vote on the EU, students were receiving statement of their loans

:42:34.:42:35.

with the total figure, which left many of them in shock. On a loan of

:42:36.:42:44.

?27,000, the figure was ?45,000. I want to acknowledge the fact that

:42:45.:42:49.

young people between the ages of 18-25 voted overwhelmingly by 75% to

:42:50.:42:53.

stay in the EU. We need to make sure we do not forget them and their

:42:54.:42:59.

future. I want to focus on the regulations, the threshold and

:43:00.:43:03.

concerned about the contract. The regulations brought any changes to

:43:04.:43:06.

the threshold of interest-rate transacted in 2012, they were the

:43:07.:43:11.

education student loans through repayment amendment which came into

:43:12.:43:19.

force on June 2012. The versions or check out the alone affected by

:43:20.:43:21.

these regulations have just graduated. In those regulations,

:43:22.:43:27.

tuition fees and travel, a higher threshold at which the alone was

:43:28.:43:34.

repaid with established of ?21,000 and a new maximum rate of interest

:43:35.:43:38.

for the loans using the retail price index last be present. Not content

:43:39.:43:44.

to treble tuition fees, the Government in the summer budget of

:43:45.:43:47.

2015 throws the threshold of ?21,000.

:43:48.:43:53.

In December 2010, the then Minister made a statement in which he said,

:43:54.:44:03.

we will increase the repayment threshold to 21000 and will there

:44:04.:44:07.

after increase it periodically to reflect earnings and 9% will apply

:44:08.:44:13.

to income above 21,000, raising the threshold will reduce the monthly

:44:14.:44:17.

income repayments for every single graduate. But then in July, the

:44:18.:44:24.

Government consulted on freezing the repayment threshold. In November

:44:25.:44:30.

2015, Debbie sponsors showed that 84% were against freezing the

:44:31.:44:35.

repayment threshold for all post-2012 borrowers. The Government

:44:36.:44:40.

went ahead against the evidence to freeze the repayment threshold until

:44:41.:44:46.

April 20 21. I want to ask the Minister, why did the Government do

:44:47.:44:49.

that in the face of all that evidence? Is it not the case of

:44:50.:44:55.

misleading Parliament? Minister will it statement said that he was going

:44:56.:45:00.

to increase the threshold. The consultation responses and the

:45:01.:45:03.

Government action against all the evidence that was put before them.

:45:04.:45:08.

By the Government's owner figures on the repayment, should the iniquity

:45:09.:45:13.

of this. It is far from being progressive as the ministers pointed

:45:14.:45:18.

out that this new scheme. Graduates on 21 to 30,000 will have to pay

:45:19.:45:24.

?6,100 more. Those aren't over 40,000 will pay only ?400 extra and

:45:25.:45:30.

to those on 50,000 will pay only ?200. I did seek permission from the

:45:31.:45:43.

honourable lady. Absolutely no problem in intervening but just gave

:45:44.:45:47.

a little bit longer than walking into the chamber to intervene. The

:45:48.:45:50.

night wouldn't be the same without you. You are most kind. I spoke to

:45:51.:45:57.

the honourable lady beforehand. I just want to put on record for those

:45:58.:46:03.

in Northern Ireland. Those who own more than 17300 per year, the

:46:04.:46:07.

interest rates alone is currently one have percent an undergraduate

:46:08.:46:12.

and, a bigger proportion of the loan baby P. Those who benefit most from

:46:13.:46:17.

their degree than those who do not benefit as much. Does the honourable

:46:18.:46:22.

lady agree with me that you should look at the Northern Ireland

:46:23.:46:25.

perspective on what we have done there which seems to be a very

:46:26.:46:31.

system? Thank you. In his defence, most of us were taken by surprise

:46:32.:46:36.

that I was an early. I absolutely agree with him, that seems to be a

:46:37.:46:44.

much fairer system. I don't call that progressive, the figures I have

:46:45.:46:47.

just given, and neither do the Institute for Fiscal Studies that

:46:48.:46:50.

found that the impact of freezing had threshold was that the largest

:46:51.:46:53.

increase in a proportion of earnings was among the lower earners. Can the

:46:54.:46:58.

Government explain why it has chosen to link this funding system less

:46:59.:47:02.

progressive by removing the central elements of the 2012 reforms and

:47:03.:47:09.

what of women and disabled graduates? They are most likely to

:47:10.:47:14.

be on salaries in the region of 21,000 to 30000 and the Government

:47:15.:47:18.

has acknowledged this. Let me give an example. In the 2013 cohort, 8000

:47:19.:47:25.

more women were paid in that range and men. Six months after

:47:26.:47:31.

graduation. 51% of the M E a graduates are employed in that range

:47:32.:47:36.

compared to 45% of their white graduate counterparts. Could I ask

:47:37.:47:40.

the Minister, what measures have the Government implement to mitigate

:47:41.:47:42.

against the disproportionate effect on those on comes, women, disabled

:47:43.:47:50.

graduates and BM E a graduates? As those groups earn less than other

:47:51.:47:54.

graduates, they are most likely to be middle earners, those who pays

:47:55.:47:58.

the largest absolute increase in repayments. What of prescriptive

:47:59.:48:03.

students to the nursing profession who will have lots of debts? The

:48:04.:48:08.

concerned about the change to a based system which will leave many

:48:09.:48:13.

nursing student with debts of 60,000 for a three-year degree. They are

:48:14.:48:17.

desperately in need of nurses from here who are trained and qualified

:48:18.:48:23.

in this country. The NUS, which represents more than 95% of all

:48:24.:48:26.

higher education and further education units, August seven

:48:27.:48:30.

million students, have expressed their concerns. They say that the

:48:31.:48:33.

repayment threshold will not increase in line with earnings so

:48:34.:48:36.

students have to start repaying their loans on a lower income.

:48:37.:48:41.

Secondly, those ongoing comes pay more than they otherwise would and

:48:42.:48:45.

thirdly, they are concerned that the Government can change her -- turns

:48:46.:48:51.

retrospectively and the impact that will have an existing borrowers

:48:52.:48:54.

which they say that a terrifying precedent. I will congratulate on

:48:55.:49:03.

securing this debate. Despite having graduated in 2001, I am still paying

:49:04.:49:06.

off student loans but I fall under the old system where the threshold

:49:07.:49:14.

is the median wage but that means it can go up and down depending on your

:49:15.:49:18.

earnings. I have paid off student debt for a while, gone back down

:49:19.:49:22.

below the medium and then re-accumulative interest which has

:49:23.:49:26.

basically negated the payments that I previously made. Does she share my

:49:27.:49:30.

concern about the outsourcing or the selling off of student loans and the

:49:31.:49:34.

continual of doing this by the Government? It just seems to be a

:49:35.:49:37.

never ending chain and it's not clear who benefits from that others

:49:38.:49:40.

in the private companies who own these loans. I absolutely agree with

:49:41.:49:46.

team and I'm coming onto an aspect where students are and student loans

:49:47.:49:51.

are to do differently from any other ordinary loans. Turning to the

:49:52.:49:56.

contract, the Government is asking Mr Deputy Speaker, 17 and

:49:57.:49:59.

18-year-olds to look at contract terms and understand them. They are

:50:00.:50:04.

not given financial advisers are lawyers, that's when they go to

:50:05.:50:07.

universities that become those professions. The rule of their

:50:08.:50:12.

teachers is doing courage and is to go to university, not to give

:50:13.:50:15.

financial advice. Under the new system of 2012, this can vary across

:50:16.:50:24.

the lifetime of the loan. Another great when they graduate but on the

:50:25.:50:28.

repayment threshold and another rate when they are over the threshold. I

:50:29.:50:35.

would argue that is a complicated system unlike my other honourable

:50:36.:50:39.

members who have a much clearer system. How is a 17 or 18-year-old

:50:40.:50:45.

expected to understand these terms? Especially when the table of

:50:46.:50:49.

circumstances are not set out in a contract or attached to it and they

:50:50.:50:53.

receive no financial advice? The guidelines and terms I am told I set

:50:54.:50:58.

out in a separate convocation and Asians are told to look online to

:50:59.:51:04.

look at these documents. The information provided in the

:51:05.:51:06.

representations that I made that leads them to sign the contract

:51:07.:51:12.

could be, on the face of it, a form of mis-selling. The contract terms

:51:13.:51:16.

could be described as unfair could be terms which could be described as

:51:17.:51:21.

void for uncertainty because it is not clear on the face of the

:51:22.:51:24.

contract wattage and are signing up to. There are no clear terms of

:51:25.:51:30.

exactly what they have to repay. No financial information is provided,

:51:31.:51:33.

such as sitting down in front of the financial adviser. When we take out

:51:34.:51:39.

a mortgage, we have someone sitting down in front of us explaining

:51:40.:51:42.

everything, the students aren't even that. Yet, they're expected to sign

:51:43.:51:47.

up to pay back a loan, in some instances ?45,000, we need to be

:51:48.:51:54.

able to protect our young people. Worse still, student loans are not

:51:55.:51:58.

subject to financial regulations and consumer protections as for other

:51:59.:52:03.

loan agreements. That must change. There is an opportunity which can

:52:04.:52:07.

arise in the higher education and research bill to add that extra

:52:08.:52:10.

regulatory protection. What assessment has the Government made

:52:11.:52:14.

that student loan agreements are exempted from consumer credit

:52:15.:52:18.

protection unlike other loans and why does the Government not want to

:52:19.:52:22.

protect our young people? Can the Minister confirm whether there are

:52:23.:52:30.

any plans to plan other terms and conditions to existing borrowers? It

:52:31.:52:32.

can't be right that the Bank of England base rate is your .5% and

:52:33.:52:38.

students are paid retail Price index plus 2% under loans. How can we

:52:39.:52:43.

treat our young people the fewer the future? No wonder they are the

:52:44.:52:47.

welders, confused and upset. The minister comes to the house to see

:52:48.:52:51.

double B and increasingly threshold and the Government ignores that. The

:52:52.:52:54.

consultation gives an 84% response and the Government ignores it and

:52:55.:52:59.

presses ahead with the boys. A young person have to sign a form in

:53:00.:53:02.

contract terms in another document online with three rates of interest.

:53:03.:53:08.

Students should not be burdened by debt but they should enjoy the

:53:09.:53:10.

benefits of the hard work and achievements. Thank you. I would

:53:11.:53:17.

like to congratulate the honourable member for Walsall size in securing

:53:18.:53:23.

this debate. Student debate is an important means for insurance higher

:53:24.:53:28.

education is open to all and I'm happy to respond to her points and

:53:29.:53:33.

other points made in the debate. This Government has done more than

:53:34.:53:38.

any other debate the financing of higher education on to be secure and

:53:39.:53:41.

sustainable footing. England has some of the finest universities and

:53:42.:53:44.

the world and it is vital for our future economic prospects that they

:53:45.:53:48.

remain well funded. Total funding for the sector has increased ?22

:53:49.:53:56.

billion in 2009 to ?20 billion in 2014, 15 and is forecast to reach

:53:57.:54:03.

?31 billion by 2017, 16. We must ensure our universities have the

:54:04.:54:06.

resources they need and that every student receives a high-quality

:54:07.:54:10.

experience during their time in higher education. When we reformed

:54:11.:54:15.

student finance in 2011, we put in place a progressive system of

:54:16.:54:19.

student loans that means higher education is accessible to all have

:54:20.:54:22.

the potential to benefit from it, irrespective of their ability to

:54:23.:54:27.

pay. The system is working. Students from disadvantaged backgrounds are

:54:28.:54:30.

going to university at a record rate. Up from 13.6% of those from

:54:31.:54:36.

the most disadvantaged backgrounds in 20 nine to 18.5% of those same

:54:37.:54:43.

groups today in 2015. If you are from a disadvantaged background, you

:54:44.:54:47.

are now 36% more likely to go to university than you were under the

:54:48.:54:52.

last Labour Government. The reforms have supported an increase in

:54:53.:54:55.

participation at higher education across the country. In the

:54:56.:55:01.

honourable member 's own constituency, participation has

:55:02.:55:08.

increased from 25.1% in 2010 to 31.4% in 2015. Walsall size now

:55:09.:55:13.

sends it higher proportion of its 18-year-old university than the

:55:14.:55:16.

English average, a reversal of the situation that existed in the last

:55:17.:55:22.

Labour Government. They shouldn't loan system is fair and sustainable.

:55:23.:55:26.

It removes financial barriers that anyone hoping distended and is

:55:27.:55:30.

backed by the taxpayer with outstanding debt written off after

:55:31.:55:34.

30 years. Steelers get a fair deal, graduates only pay back 9% of their

:55:35.:55:39.

earnings above 21000 and enjoy an average wage premium of ?9,500 per

:55:40.:55:50.

year. Over non-graduates. Happily. I admit the point about the system we

:55:51.:55:54.

have in Northern Ireland and how that is much more manageable than

:55:55.:55:57.

the system here in the mainland. As the Minister had the chance to look

:55:58.:56:01.

at the northern Ireland example of how it works and how I think gives

:56:02.:56:04.

better response to the students when it comes to repayment? Thank you.

:56:05.:56:12.

Yes, of course. Higher education has been devolved in Scotland and Wales

:56:13.:56:16.

since 1999 and in Northern Ireland since 2007 and will continue to look

:56:17.:56:20.

at how other nations within the UK choose to allocate public funds to

:56:21.:56:24.

the Highridge edition system and see what lessons there are to be learned

:56:25.:56:29.

from it. We believe we've now got in England, a very and sustainable

:56:30.:56:34.

system of funding. Our higher education system. The ?21,000

:56:35.:56:38.

threshold is higher than the one we inherited from Labour and is also

:56:39.:56:44.

very on lower earners. The system is also more progressive. Interest

:56:45.:56:48.

rates after graduation increased with income so that higher earners

:56:49.:56:53.

repay more. If you are earning ?21,000 less, the interest late is

:56:54.:56:57.

set at RPI, the loan balance does not increase in real terms. For

:56:58.:57:01.

those graduates who I'm writing this, the interest rate increases to

:57:02.:57:05.

maximum of our PA plus three. It only fair that the graduates who

:57:06.:57:09.

have benefited most from education should pay the most back into the

:57:10.:57:13.

system. Student loans are very different from a mortgage or credit

:57:14.:57:16.

card debt. Repayments are determined by income, not the amount borrowed,

:57:17.:57:23.

graduates are protected if at any point their income drops, so did the

:57:24.:57:28.

repayments. The loans are income contingent so they will only repay

:57:29.:57:32.

if the owner of the threshold and the loans are written off after 30

:57:33.:57:35.

years, meaning that many graduates will not repay the full amount and

:57:36.:57:40.

this is a crucial part of the taxpayers knowing investment in our

:57:41.:57:44.

country's skills base. Our approach is based on the fundamental

:57:45.:57:47.

principle that a borrower's contributed to the cost of education

:57:48.:57:51.

should be linked to their ability to pay. Graduates benefit from higher

:57:52.:57:55.

earnings than those who do not go to university and we must ensure we

:57:56.:57:59.

maintain a fair balance between taxpayers and graduates in the costs

:58:00.:58:04.

of higher education. It is clearly important that students know what

:58:05.:58:07.

they are signing up to when the agreed to take out the loans. All

:58:08.:58:11.

students are provided with clear information to help them understand

:58:12.:58:15.

what financial support they may be eligible for as well as the interest

:58:16.:58:18.

rates and payment terms that will apply. They must also confirmed that

:58:19.:58:22.

the understand the information before they are granted the loan.

:58:23.:58:26.

All of the information that the SLC provides to James is reviewed

:58:27.:58:29.

regularly to assure that is both accurate and accessible.

:58:30.:58:34.

Let me turn to the threshold freeze which was mentioned in the

:58:35.:58:43.

honourable member's remarks. To sustain better footing, we must ask

:58:44.:58:47.

graduates to meet more of the costs of their studies. It is clear that

:58:48.:58:50.

graduates benefit hugely from higher education. An ad -- on average,

:58:51.:58:56.

graduates earnings are higher than nongraduates. In comparison, ?31,000

:58:57.:59:06.

to ?21,000 per year. As King graduates to support higher

:59:07.:59:10.

education is asking the taxpayer who will earn much less than those

:59:11.:59:14.

graduates. We did not take the decision to freeze the repayment

:59:15.:59:17.

threshold lightly. We consulted on the changes before they were

:59:18.:59:22.

announced last year and conducted a full quality impact assessment.

:59:23.:59:27.

Graduate earning more than ?21,000 will pay about ?6 per week more than

:59:28.:59:31.

if you had increased the threshold in line with average earnings. This

:59:32.:59:36.

is higher than what we inherited from Labour. This means that they do

:59:37.:59:40.

more of their earnings before they start to repay. A sustainable

:59:41.:59:46.

student finance system enabled us to abolish student number controls,

:59:47.:59:49.

lifting the cap on aspiration and enable more people to receive the

:59:50.:59:54.

benefits of a university education. This is essential if we are to

:59:55.:59:57.

maintain our place as a country in the modern, highly skilled economy.

:59:58.:00:02.

We still spend proportionately fewer people to university to study at

:00:03.:00:05.

undergraduate level than our competitors. She now and 2022 more

:00:06.:00:10.

than half of job vacancies will be in occupations much more likely to

:00:11.:00:16.

employ graduates. If we continue to grow our economy, we must equip our

:00:17.:00:19.

young people with these skills and provocations they will need to

:00:20.:00:24.

vaudeville the rose. Can I thank the Minister for his response? But I

:00:25.:00:30.

have not heard any response to the questions asked and he seems to have

:00:31.:00:35.

ignored the evidence I have given him in terms of the breakdown of

:00:36.:00:42.

those who are overpaying and receive ?40,000 actually paying less. I

:00:43.:00:46.

agree that all the points he makes about people going to university

:00:47.:00:50.

don't actually address the issue of the loans. Could also say, if a

:00:51.:00:54.

student still just as they get, with baby able to apply for a mortgage

:00:55.:01:00.

with that student loan date against their main? Would they be able to?

:01:01.:01:07.

The critical thing is that we have which are higher education finances

:01:08.:01:10.

on a sustainable footing. In order to do that, we have to do makes

:01:11.:01:15.

difficult decisions and freezing the repayment threshold was certainly

:01:16.:01:22.

one of them. It was in an underlying furnace which means they may earn

:01:23.:01:30.

more than nongraduates and have two contribute to the cost of running a

:01:31.:01:33.

big and expanding, and the Castle higher education system. If they do

:01:34.:01:37.

not make a big contribution, the cost of funding that system will

:01:38.:01:41.

fall back on many of her constituents, who did not go to

:01:42.:01:44.

university and did not get a chance to have a higher earning career path

:01:45.:01:50.

over their lifetimes. As a result. That is fundamental furnace, which

:01:51.:01:56.

I'm sure she will appreciate. One point, it is a difference now of

:01:57.:02:02.

ideology. I was lucky to benefit from a free education. I went to

:02:03.:02:08.

university without having to pay. I saved on my grant, which is slightly

:02:09.:02:12.

unusual. They will pay back the taxpayer does not have to pay back.

:02:13.:02:16.

They will be paid rapidly higher rate of tax and a graduate, so they

:02:17.:02:20.

will be putting more back into the economy. But leading students that

:02:21.:02:26.

they get in this way of ?45,000 Minister underlines is not the right

:02:27.:02:31.

in my view. The honourable member was fortunate, in a sense, that she

:02:32.:02:35.

went to university at a time when it was very much smaller system in the

:02:36.:02:40.

country, as a percentage of the 18-19 year cohort when she went to

:02:41.:02:48.

university, when a lot of people do not go to university at all. In the

:02:49.:02:53.

mid-40s, we are in that cohort and it is a big system to run. If you

:02:54.:02:57.

make the cost of that system runs solely on the taxpayer, you put a

:02:58.:03:02.

very big burden on those who are not going to have benefited from the

:03:03.:03:06.

higher earnings part, which, being a graduate gives you. For women, as

:03:07.:03:12.

she will be aware, the lifetime earnings are likely to amount to

:03:13.:03:17.

some ?250,000 more than for a woman who did not go to university. For a

:03:18.:03:21.

man, to something like ?175,000 more. There are significantly higher

:03:22.:03:27.

earning path which is going to university put you on making the

:03:28.:03:31.

amount of debt that you might take on on an income contingent bases

:03:32.:03:34.

look relatively small by comparison when you set the huge lifetime games

:03:35.:03:38.

to higher education against the songs would you take on in debt in

:03:39.:03:42.

order to generate the lifetime games. It is important to barely to

:03:43.:03:46.

some side-by-side when thinking about it. Of course, England is not

:03:47.:03:50.

unique in grappling with these problems. But we are, according to

:03:51.:03:55.

experts in the financing of higher education, such as the OECD, one of

:03:56.:04:03.

the very few countries on the world which has what is came to seem a

:04:04.:04:08.

sustainable solution. -- what is the a stable solution. This been

:04:09.:04:13.

recognised internationally by the OECD, praising our student system as

:04:14.:04:18.

one of the few systems to have figured out a sustainable approach

:04:19.:04:26.

to higher education finance. The honourable member mentioned

:04:27.:04:31.

bursaries and the health... Funding from hell students. At the moment,

:04:32.:04:34.

the presence is admittedly not working for patients, students or

:04:35.:04:38.

for the universities which train them. To deliver more nurses and

:04:39.:04:42.

other health professionals for the NHS, a better funding system for

:04:43.:04:46.

hell students and a sustainable model for universities will need to

:04:47.:04:51.

move fell student grants and bursaries on to the bandage and

:04:52.:04:54.

support system, as we have for all degrees. This means we can move away

:04:55.:04:59.

from centrally proposed student number controls and financial

:05:00.:05:02.

limitations, and as a result, the Department of Health imagine that

:05:03.:05:09.

this will help sustain up to 10,000 health professional training places

:05:10.:05:13.

over this Parliament. Mr Deputy Speaker, that is just one example of

:05:14.:05:17.

why we have one of the best higher education systems and most

:05:18.:05:19.

sustainable higher education systems anywhere in the world. As many as

:05:20.:05:26.

are of the opinion, say "aye". To the contrary, "no". The ayes have

:05:27.:05:30.

it. Order, order.

:05:31.:05:41.

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