14/12/2011

:00:25. > :00:29.Morning, folks, this is the Daily Politics. Is the deal to save the

:00:29. > :00:34.Eurozone coming apart at the seams already? Cracks are emerging all

:00:34. > :00:38.over the 26 who signed up to last week's EU summit deal. David

:00:38. > :00:42.Cameron decided not to sign that treaty. Now several other European

:00:42. > :00:46.governments are starting to pick holes in it, so maybe it is not 26-

:00:46. > :00:49.1 after all. Meanwhile, the euro has hit another low against the

:00:49. > :00:54.dollar. He was notable by his absence on

:00:54. > :00:58.Monday, so will Nick Clegg cuddle up to Dave at PMQs today, and what

:00:58. > :01:03.is the state of the coalition? Apparently, there is "snow"

:01:03. > :01:06.Christmas spirit in Westminster this year. We will be asking why.

:01:06. > :01:11.And is the 50 pence tax rate sending the economy down the

:01:11. > :01:16.Swanee? We will be talking to one plumber who thinks it is. With this

:01:16. > :01:19.50 pence tax rate, we are close to the tipping point. That is why I

:01:19. > :01:29.believe the Chancellor should ignore his coalition partners and

:01:29. > :01:30.

:01:30. > :01:32.listen to us entrepreneurs and flush it down the drain.

:01:32. > :01:38.Public service broadcasting at its best. With us for the duration, we

:01:38. > :01:41.have a couple of Christmas fairies. At least, it says so here. Housing

:01:41. > :01:48.Minister Grant Shapps and the shadow energy secretary Caroline

:01:48. > :01:53.Flint. Now, without more ado, let's talk about the Christmas spirit in

:01:53. > :01:58.your own land, or should I say lack of, because appetite for a new

:01:58. > :02:02.European treaty to create a Eurozone fiscal union appears to be

:02:03. > :02:08.waning before the ink is dry on last year's agreement. Add to that

:02:08. > :02:11.fears over the European markets, the future of France's credit

:02:12. > :02:15.rating, some countries' ability to service their debts not looking

:02:15. > :02:22.good, the bond markets not looking good and the state of the actual

:02:22. > :02:24.banking system not booking could. They deposited EUR350 billion on

:02:24. > :02:30.Monday with the European Central Bank because they don't trust

:02:30. > :02:35.lending to each other. All looking rosy. It is all aboard

:02:35. > :02:39.the Trans Euro Express. All except the British, citing health and

:02:39. > :02:43.safety concerns for the City. But this could trip is already turning

:02:43. > :02:47.into a bumpy ride. Some passengers are refusing to pay their fare.

:02:47. > :02:52.Romania has said that they and other countries like Ireland,

:02:52. > :02:55.Greece, Latvia, Hungary and Portugal should write for free and

:02:55. > :02:59.not contribute to a new 200 billion euro bail-out fund. Others are

:02:59. > :03:03.getting restless about being relegated to the back seats while

:03:03. > :03:07.the Germans and French do all the driving. The Austrians look set to

:03:07. > :03:11.hold a referendum. The Irish might have won as well, and there have

:03:11. > :03:14.been calls for a vote in the Netherlands, Denmark and elsewhere.

:03:14. > :03:17.Now some of the passengers are threatening to stop the bus and get

:03:17. > :03:21.off altogether, with the Czech prime minister say he thought they

:03:21. > :03:24.should not take part. The Finnish premier told his parliament he

:03:24. > :03:28.could not agree to a transfer of national budget sovereignty, and

:03:28. > :03:31.most seriously, the French opposition Socialists have said the

:03:31. > :03:36.treaty will not be ratified by France if they win the election

:03:36. > :03:43.next year. I am joined now by our European Correspondent in Brussels.

:03:43. > :03:46.It sounds like the whole thing is unravelling? It has never been a

:03:46. > :03:50.straightforward process. The Thursday night into Friday morning

:03:50. > :03:54.was a process of pushing through an agreement to please the markets,

:03:54. > :03:59.but there was no question that there were differences of opinion

:03:59. > :04:04.behind the scenes. The treaty does not exist at the moment. It is a

:04:04. > :04:07.blank sheet of paper. They hope to have a first legal draft of it

:04:07. > :04:10.before the Christmas holiday so that people can take it home and

:04:10. > :04:14.then choke on their turkey or whatever meat they decide to have

:04:14. > :04:18.been he'd respective countries. But until they have seen the piece of

:04:18. > :04:23.paper and the specifics in it, people are standing on the

:04:23. > :04:28.sidelines. I still think it could be 26-1, because there is enormous

:04:28. > :04:32.pressure on people to take part. But it will be difficult,

:04:32. > :04:36.particularly if we get into the realm of referenda in places like

:04:36. > :04:41.the Netherlands and Ireland. It will be very sticky. A lot of fire

:04:41. > :04:47.is being directed at David Cameron in the European Parliament. Can you

:04:47. > :04:51.give us a flavour of that? It was good knockabout stuff for panto

:04:51. > :04:56.season, with people saying, if you are not going to be here, don't

:04:56. > :05:00.bother turning up at all. One person said maybe we should

:05:00. > :05:05.renegotiate the British rebate. There was a lot of anger. Part of

:05:05. > :05:08.that is built out of a sense of frustration that the impact on the

:05:08. > :05:12.markets of the agreement in principle to have a treaty was

:05:12. > :05:15.definitely diluted by the fact that Britain decided not to take part.

:05:15. > :05:20.There was a feeling that this summit was supposed to be about the

:05:20. > :05:25.Eurozone, not about you and your determination to safeguard elements

:05:25. > :05:33.for the City of London. They felt that he hijacked the process in a

:05:33. > :05:38.selfish way. That is why a lot of ire was directed towards Mr Cameron

:05:38. > :05:42.and Britain in general. There have been plenty of calls for the

:05:42. > :05:45.Liberal Democrat MEP who chairs the economic affairs committee in the

:05:45. > :05:48.European Parliament, many are saying she should now step down

:05:48. > :05:57.because you should not have a bit running a committee which is to do

:05:57. > :06:03.with the economy. -- a Brit.

:06:03. > :06:09.So as this debate takes place, has Ed Miliband decide whether he would

:06:09. > :06:14.have Sandip? We would not have been in that position, or we would have

:06:14. > :06:17.had a different debate. In some ways, the discussions now going on

:06:17. > :06:21.and the differences of opinion among the 26 reinforce our view

:06:21. > :06:25.that we have lost a chance to be at that table, joining others about

:06:25. > :06:31.our concerns on issues that are important to us as a country and

:06:31. > :06:35.losing the support of our traditional allies. But on Labour's

:06:35. > :06:40.position on the economy, which is for a bigger fiscal Keynesian

:06:40. > :06:43.stimulus, you are isolated. Nobody agrees with you. We are isolated

:06:43. > :06:48.because we never got down to talking about things, for example

:06:48. > :06:54.the European Central Bank being a lender of last resort. It was not

:06:54. > :06:59.even discussed. Our Prime Minister put down a protocol he had not

:06:59. > :07:03.discussed with others before the summit and then walked away. Is it

:07:03. > :07:08.seriously Labour's position that the Labour Party as a Labour

:07:08. > :07:13.government would be able to talk Mrs Merkel into agreeing with the

:07:13. > :07:17.ECB becoming a lender of last resort? If we were in government,

:07:17. > :07:22.opposition would be the same as when we were last in government, to

:07:22. > :07:26.look at the ways we can have allies. But do you really think you could

:07:26. > :07:29.convince the Germans? I said we would have a different approach in

:07:29. > :07:34.tax ticks to this summit, which would have involved months of

:07:34. > :07:37.discussion. If you are going to put a protocol down, we would not have

:07:37. > :07:42.drafted it that week. We would have discussed it before and not just

:07:42. > :07:47.with France and Germany, but our allies like Poland and the new

:07:47. > :07:51.entrants. That has been vital for putting the French and German power

:07:51. > :07:56.base into perspective. In walking away, David Cameron denied us the

:07:57. > :08:00.chance to influence further and be at the heart of discussions. Your

:08:00. > :08:04.leader can't even get a peace treaty with his brother. What makes

:08:04. > :08:12.you think he could do better in Brussels? It is better to be at the

:08:12. > :08:15.table. Chris Huhne, this week, during one of our encounters on

:08:16. > :08:20.energy in Durban said, if you are not on the table, you are on the

:08:20. > :08:26.menu. Michael Heseltine had concerns about us walking away.

:08:26. > :08:31.Margaret Thatcher never walked away, for all her views about the

:08:31. > :08:35.European Union. And if you are on the Titanic, you don't drown. The

:08:35. > :08:42.coalition is a joke now, isn't it? It is the hokey croaky coalition.

:08:42. > :08:45.You put one foot in, one foot out. It is a Christmas panto. Everyone

:08:45. > :08:53.knows that the coalition has different views on these issues.

:08:53. > :08:57.There is no point hiding it. We are two different parties with views

:08:57. > :09:01.that are different on these issues. You don't have the majority in the

:09:01. > :09:06.house for your position. Labour are against your position. The Lib Dems

:09:06. > :09:11.are against your position. You have taken a position at this summit for

:09:11. > :09:18.which you do not have a democratic mandate from the House of Commons.

:09:18. > :09:28.We do have a mandate from the House of Commons. There was a vote last

:09:28. > :09:30.

:09:30. > :09:34.night. This is becoming a habit, the Lib Dems not turning up. I will

:09:34. > :09:37.not say there is no division of opinion between us and the Lib Dems.

:09:37. > :09:41.But your point about whether the House of Commons supports the Prime

:09:41. > :09:44.Minister has been proving last -- proven last night, because there

:09:44. > :09:49.was a vote on the issue where the House of Commons supported the

:09:49. > :09:55.Government. Could you say, in a sentence, or even two sentences,

:09:55. > :10:01.what was it that David Cameron vetoed? The idea that Europe would

:10:01. > :10:06.put upon itself some type of additional tax on financial

:10:06. > :10:16.services. This should not just be an opt-out for Britain, it should

:10:16. > :10:18.

:10:18. > :10:22.be an opt-out for Europe. vetoed that the 26? The European

:10:22. > :10:25.Act was part of the agreement. There is a straight forward

:10:25. > :10:31.principle here that if you have an industry like financial services,

:10:31. > :10:35.which has 10% of our GDP, you should not do things, even Europe-

:10:35. > :10:39.wide, which impacts badly on financial services here or anywhere

:10:39. > :10:45.else. The Prime Minister was not able to get a reassurance that the

:10:45. > :10:47.new treaty would not impact on financial services. Because we have

:10:47. > :10:52.a bigger financial services industry than anywhere else, it was

:10:52. > :10:57.going to have a negative impact on us disproportionately. You skirted

:10:57. > :11:04.around the question of whether Ed Miliband, if he was Prime Minister,

:11:04. > :11:07.would have signed. Of course he would. You were the guys who signed

:11:07. > :11:17.the working-time directive. You signed us after the general

:11:17. > :11:22.

:11:22. > :11:27.election into the European We have to move on. You had eight

:11:27. > :11:30.sentences there. I still don't know why it was vetoed. As we have just

:11:30. > :11:33.been hearing from Grant Shapps, Harmony has not exactly broken out

:11:33. > :11:37.in the coalition, so where does this leave it?

:11:37. > :11:40.Last night, Liberal Democrat MPs refused to vote on a Commons motion

:11:40. > :11:45.praising the prime minister's handling of the European summit.

:11:45. > :11:48.The party instead abstained. I am joined now from Westminster by the

:11:48. > :11:53.Liberal Democrat MP Andrew George and the Conservative MP Peter Bone,

:11:53. > :11:56.who has never been a fan of the coalition. But they are standing

:11:56. > :12:00.quite close together. Peter Bone, do you like your friend Andrew

:12:00. > :12:07.George? I liked him enormously. We agree on nothing except that the

:12:07. > :12:11.Labour left is in a mess. So the end of the coalition before 2015?

:12:11. > :12:16.You know I have always shared that view. Last night, we had the DUP

:12:16. > :12:21.with us and the Liberal Democrats against us. Maybe we need to change

:12:21. > :12:24.coalition partners. Andrew George, it will all be over soon, according

:12:24. > :12:31.to Peter Bone. Before you answer that, can you confirm that Nick

:12:31. > :12:35.Clegg will be in the house for PMQs today? Yes, he will. And of course,

:12:35. > :12:40.we are entitled to express a view on the outcome, as we did last

:12:40. > :12:47.night, of last week's summit. Whether it is Mr or Mrs Bone that

:12:47. > :12:54.we are in coalition with, we are very happy to be there. Are you?

:12:54. > :12:58.Absolutely. We signed up for a five-year deal. We are committed to

:12:58. > :13:04.doing that. We will see this through. Of course we are two

:13:04. > :13:08.political parties at opposite ends of the political spectrum, mortal

:13:08. > :13:11.enemies in many ways. But we came together in the national interest

:13:12. > :13:17.and we are delivering on the things of which we agree and seeking

:13:17. > :13:20.compromise in the areas where we don't. What crumbs of comfort are

:13:20. > :13:25.there for Lib-Dem voters when you have lost on electoral reform,

:13:25. > :13:30.tuition fees and now Europe, or critical issues to the Liberal

:13:30. > :13:34.Democrats? You said yourself you are perhaps mortal enemies with the

:13:34. > :13:39.Conservatives. It is important that we worked together in the national

:13:39. > :13:43.interest to restore the country's finances. Whether it be the pupil

:13:43. > :13:47.premium, which is helping disadvantaged children, whether it

:13:47. > :13:52.is taking the lowest paid million out of tax, we have seen the

:13:52. > :13:56.biggest increase in the state pension for decades. We are

:13:56. > :14:00.delivering Liberal Democrat policy. In his heart, whether it is missed

:14:00. > :14:05.from us as bone, I am sure they agree with that. Peter Bone, in

:14:05. > :14:09.your heart, is that how you feel? Andrew sums it up in saying we have

:14:09. > :14:13.come together to solve the economic crisis. That is the only reason for

:14:13. > :14:20.us to be in a coalition. As soon as that is solved, we should go our

:14:20. > :14:24.separate ways. I have a problem with collective responsibility.

:14:24. > :14:28.When government ministers like the deputy prime minister signed up to

:14:28. > :14:32.a policy that the Prime Minister then implements in Europe, and then

:14:32. > :14:36.the deputy prime minister says it is a good idea, and then when his

:14:36. > :14:44.party kicks up a fuss, changes his position, he is not abiding by

:14:44. > :14:48.collective responsibility. Thank you.

:14:48. > :14:54.I go away for two days, and it all falls apart. Am I not allowed to

:14:54. > :14:59.leave the country? Clearly not. I am going away again next week.

:14:59. > :15:02.Anyway, it has been quite a week for Liberal Democrat fury. On

:15:02. > :15:07.Monday during the parliamentary post-mortem, the usually coalition

:15:07. > :15:15.friendly Joe's Winson, MP, voiced a few thoughts on Mr Cameron's

:15:15. > :15:20.Against the odds, an excellent deal on climate change was agreed in

:15:20. > :15:24.Durban this weekend, with the UK playing a leading role alongside

:15:24. > :15:28.our EU counterparts. Will the Prime Minister reflect whether that kind

:15:28. > :15:32.of constructive and positive diplomacy might be a better

:15:32. > :15:42.approach to securing British interest, and Russian for the exit?

:15:42. > :15:47.That was Jo Swinson in the Commons. She is there now. When Nick Clegg

:15:47. > :15:50.said to his MPs and peers, I don't want to be the last leader of the

:15:50. > :15:57.Liberal Democrats by provoking a general election today, what did he

:15:57. > :16:02.mean? I think we are in a situation where we want to work in the

:16:02. > :16:06.national interest. It is not in the national interest in any way for us

:16:06. > :16:09.to have a general election at the moment. We have a job to do to sort

:16:09. > :16:13.out the nation's economy and that is what the Liberal Democrats in

:16:13. > :16:16.the coalition are committed to doing. Why did he say he would be

:16:16. > :16:23.the last leader of the Liberal Democrats if he provoked an

:16:23. > :16:28.election? I am not sure where that quote is from. It is in today's

:16:28. > :16:33.Guardian and he told it to his MPs and peers. I would not believe

:16:33. > :16:36.everything you read in the papers, Andrew. Clearly, there are

:16:36. > :16:40.differences between the Liberal Democrats and the Conservatives on

:16:40. > :16:43.the issue of Europe, and that is hardly astonishing. What we are

:16:43. > :16:48.united about is the importance of getting the economy back on track.

:16:48. > :16:54.We feel very strongly that playing a positive role in Europe is part

:16:54. > :16:58.of that. 3.5 million British jobs depend on the EU, half of British

:16:58. > :17:02.trade is with the EU. The cabinet has decided, and this has been

:17:02. > :17:07.reported also, that there is a re- engagement strategy, to make sure

:17:07. > :17:12.we get what we need to liberalise the markets further within the EU,

:17:12. > :17:18.on digital services, green technologies and so on, to help

:17:18. > :17:23.British Benefit and create jobs. will ignore the attack on the

:17:23. > :17:31.Guardian, which we think said to vote for your party in the last

:17:31. > :17:36.election. Is re-engagement David Cameron's latest joke? Nobody in

:17:36. > :17:42.Strasbourg want to re-engage with the Brits. We don't want to mince

:17:42. > :17:47.our words. It is not going to be straightforward, it is a challenge,

:17:47. > :17:51.we have heard about the different negotiations going on between the

:17:51. > :17:56.countries. That is something which is important. What should Mr

:17:56. > :18:01.Cameron have done it last week, in the middle of the night? I made

:18:01. > :18:05.clear in the Commons on Monday that I think a constructive and positive

:18:05. > :18:10.approach... If we look at what we manage to do on the climate change

:18:10. > :18:15.negotiations... You made that point, what should he have done? Should he

:18:15. > :18:20.have signed up with the other 26? We didn't start from a great

:18:20. > :18:25.position, as has been reported. In terms of the planning that had gone

:18:25. > :18:30.in, the position paper being very late in the day. Diplomats often

:18:30. > :18:35.require time to build alliances. Should he have signed up or

:18:36. > :18:40.shouldn't he? In it your view, should he have signed up with the

:18:40. > :18:44.other 26, or shouldn't he? It is important to remember that on

:18:44. > :18:48.Friday, we were not being asked to give away any powers for the UK.

:18:48. > :18:55.There would have been the opportunity at a later date. That

:18:55. > :18:58.said, clearly the Prime Minister is in a very difficult situation. Not

:18:58. > :19:03.only were France and Germany intransigent, but there is a large

:19:03. > :19:07.part of David Cameron's party that don't recognise the economic

:19:07. > :19:12.benefits. I did not ask about his party, I asked about what you would

:19:12. > :19:16.do. Let's ask Grant Shapps. Did David Cameron have Nick Clegg's

:19:16. > :19:21.consent to use this veto? negotiating position was set out in

:19:21. > :19:25.advance. I have got that bit. Did he have the position -- the

:19:25. > :19:29.permission, if it all goes belly-up, to use the veto? The person doing

:19:29. > :19:32.the negotiating is the prime minister, ultimately. He is the one

:19:32. > :19:40.who is there and the only one who can take the decision, on the

:19:40. > :19:47.ground. Did he or didn't he? Yes. He had Nick Clegg's permission?

:19:47. > :19:50.negotiating position... understand that. I think we have to

:19:50. > :19:55.assume there was never a position where an agreement was made in

:19:55. > :20:02.advance, saying you can do anything, but don't do this. Have we still

:20:02. > :20:08.got Jo Swinson there? She has had to go. I am quite sad about that. I

:20:08. > :20:13.was going to ask her if that is what Nick Clegg was saying. It is

:20:13. > :20:18.an interesting point, that the Labour point is -- the Labour Party

:20:18. > :20:23.is in at the moment. We are clearly heading for recession, if we are

:20:23. > :20:27.not already in one. Mr Cameron, isolated in Europe, your favourite

:20:28. > :20:35.phrase, yet he is up in the polls, he has pleased his own party. Your

:20:35. > :20:38.party is even slipping in the polls, and so is your leader? Clearly, in

:20:39. > :20:44.terms of the polls of the public and the stand-off with the European

:20:44. > :20:47.Union, that goes down well a number of quarters. I have always said, it

:20:47. > :20:53.-- if it was our task to make people love the European Union, it

:20:53. > :20:58.would be a hiding to nothing. What ever the hit his short term, what

:20:58. > :21:03.are the consequences when the smoke clears? Our concern is we are not

:21:03. > :21:07.in the discussions. The 26 are not unified, and that is not a bad

:21:07. > :21:12.thing, for a start. We have had a number of summits where, getting to

:21:12. > :21:17.grips with what is happening in Greece, in terms of the EU, in

:21:17. > :21:20.terms of jobs and growth -- in terms of the euro. We have had yet

:21:20. > :21:24.another summit in which we have not been able to be that at the heart

:21:24. > :21:29.of pressing those issues, and instead we are talking about...

:21:29. > :21:32.Hang on. We are talking about a week in which he got a hard time at

:21:32. > :21:36.PMQs, a slapping from his backbenchers. Whatever was the

:21:36. > :21:40.agreed position with the Nick Clegg, he went there and could not pick up

:21:40. > :21:44.the phone in 10 hours of negotiations to Nick Clegg. Why is

:21:44. > :21:49.a party doing so badly? The polls suggest that when it comes to this

:21:49. > :21:53.issue, Mr Cameron speaks for Britain and you don't. People are

:21:53. > :21:59.concerned about jobs and opportunities. We know that Europe

:21:59. > :22:03.is important, we agreed on that. The issue is that if the euro

:22:03. > :22:08.countries are not doing well, we will not do well either. I was not

:22:08. > :22:11.asking about the economy but your party's position in the polls, but

:22:11. > :22:16.we have to move on. Unemployment figures showed yet

:22:16. > :22:22.another rise in the jobless total, now up to 2.6 4 million, the

:22:22. > :22:26.highest level since 1994. Youth unemployment was also on the Rise

:22:26. > :22:30.Again, topping the 1 million mark to the highest level since records

:22:31. > :22:34.began in 1992. The Prince's Trust said there was a real risk of young

:22:34. > :22:38.lives being wasted in the dole queue. Can you reassure them

:22:38. > :22:43.otherwise? Anyone who loses their job, particularly young people, it

:22:43. > :22:47.is a very difficult position for them. We have launched a �1 billion

:22:47. > :22:51.fund to fund 160,000 placements, where companies will be able to

:22:51. > :23:01.take people on without the national picture has been paid, effectively.

:23:01. > :23:09.We are taking direct action -- without the National Insurance

:23:10. > :23:19.It is difficult to see any good news. However you paint it. With

:23:20. > :23:21.

:23:21. > :23:25.the best will in the world, they There isn't any evidence yet that

:23:25. > :23:30.any of these are working. You have not got figures to say, we have

:23:30. > :23:34.managed to create this many jobs. It is the early days of the Youth

:23:34. > :23:37.Contract that was announced last month. I think there is evidence

:23:37. > :23:42.coming through that some of the approach is starting to work. There

:23:42. > :23:46.have been nearly 600,000 jobs created in the private sector since

:23:46. > :23:51.the last election. That's more than the jobs that have been lost in the

:23:51. > :23:55.public sector. As I mentioned a moment ago, there are 40,000 people

:23:55. > :24:00.more in employment now than there were on the previous set of figures.

:24:00. > :24:06.Can I interrupt? Sorry to interrupt. On those figures, in the last

:24:06. > :24:11.quarter, 67,000 job losses in the public sector and only 5,000 jobs

:24:11. > :24:18.created in the private sector. That's a huge gap. Is that proof in

:24:18. > :24:23.your mind that the government's policy would move in, hasn't

:24:23. > :24:27.happened. The overall figure is 580,000 created. If you take a

:24:27. > :24:30.small period, I accept what you are saying. I think it shows times are

:24:30. > :24:34.incredibly tough. If you look at the chilling effect of what has

:24:34. > :24:37.been going on in the eurozone, that is bound to have an impact. That is

:24:37. > :24:40.why we need to have an open and free market across Europe. That is

:24:40. > :24:44.why we think the single market is so important, why we think we need

:24:44. > :24:48.to be able to export and protect industries, to make sure they are

:24:48. > :24:52.able to compete on a level playing field. Which is why things like the

:24:53. > :24:57.veto are so important. One could argue the other way. We hear that

:24:57. > :25:02.for every 13 jobs lost in the public sector, only one is being

:25:02. > :25:07.created in the private sector. We are seeing unemployment going up.

:25:07. > :25:11.What would you do? We would look at reducing VAT for a temporary period.

:25:12. > :25:15.We would give a National Insurance break. You would borrow more, spend

:25:15. > :25:18.more and increased debt, it is not a plan for recovery. You haven't

:25:18. > :25:22.got a plan for recovery because more and more people find

:25:22. > :25:25.themselves out of work. On the Youth Contract, we did have the

:25:25. > :25:29.Future Jobs Fund for young people. It may be that the government might

:25:29. > :25:32.have wanted to change that and improve it, but they chopped it.

:25:32. > :25:36.Now they are coming back with another programme called his

:25:36. > :25:40.contract, 18 months down the line. It is not good enough. This is

:25:40. > :25:45.really important. Last year, our exports to Europe actually went up.

:25:45. > :25:51.That was a good sign. Domestic be, it is dire in terms of our economy,

:25:51. > :26:01.because people are not spending... We want exports to rise. That is

:26:01. > :26:10.the idea. We have to end there. I was quite enjoying that.

:26:10. > :26:15.Tis the season to be jolly, at a time of season -- good will to all

:26:15. > :26:19.mankind, except the coalition. It is our final guest of the

:26:19. > :26:27.competition of 2011. In the spirit of Christmas, we are not just

:26:27. > :26:31.giving away one mug this we, we are giving away 12. The 12 mugs of

:26:31. > :26:38.Christmas. They have been on our show all year. Park, I hear you say,

:26:38. > :26:46.there are only 11 marks there. You could be right. That is because one

:26:46. > :26:53.lucky winner will be getting this, a brand new Daily Politics mug.

:26:53. > :26:57.That's right, in 2012, it is out with the old and in with the new.

:26:57. > :27:07.We might be living in hard times but there are some things that you

:27:07. > :27:07.

:27:07. > :27:11.cannot scrimp on. And here it is. A thing of beauty. British, or

:27:11. > :27:15.Taiwanese craftsmanship at its finest.

:27:15. > :27:19.Yes, they looked very smart. The first name we draw out of the hat

:27:19. > :27:24.will get the new mug, and we will draw the other names for the rest

:27:24. > :27:29.of those mugs. We will put the details on the Facebook page and

:27:29. > :27:39.remind you how to enter in a few minutes. First, can you remember

:27:39. > :27:44.

:27:44. > :27:48.# We are never going to be respectable.

:27:48. > :27:58.# But you never change us. # We are never going to be

:27:58. > :28:10.

:28:10. > :28:15.# Give a little bit of heart and soul. I therefore proclaim that

:28:15. > :28:22.they are husband and wife. Everything seemed to go so smoothly.

:28:22. > :28:32.It didn't matter if it was a woman or a man doing it.

:28:32. > :28:49.

:28:49. > :28:57.To begin with a chance of winning one of those Daily Politics mug,

:28:57. > :29:03.send your answer to SEN e-mail address -- to be in with a chance.

:29:03. > :29:08.Send your answer to our special e- mail address.

:29:08. > :29:12.Coming up to midday, let's take a look at Big Ben for the last time

:29:12. > :29:18.in 2011. Today's prime minister's question should be worth the price

:29:18. > :29:24.of admittance, if there was a price, it is on its way. Nick Robinson has

:29:24. > :29:30.a price, a very high price. He has got the new mark, he is a very

:29:30. > :29:35.happy man, it is the best Christmas present he will ever get. You want

:29:35. > :29:40.it back afterwards! He says one thing on camera and another off!

:29:40. > :29:44.is called television! He may have a go about unemployment, because that

:29:44. > :29:48.is an easy wicket, given the bad figures. Hard for him to avoid

:29:48. > :29:52.Europe, where it is not such an easy wicket. He will connect the

:29:52. > :29:56.two, I would have thought. The instinct will be to say, jobs are

:29:56. > :30:00.being lost because you are taking the wrong view on Europe and you

:30:00. > :30:04.are isolated. I always say this about Prime Minister's Questions,

:30:04. > :30:09.it is a team sport, it is about morale, and never more so than

:30:09. > :30:13.before MPs go off on their holidays. Ed Miliband has a big problem. The

:30:13. > :30:18.government has just admitted its economic policies are of course, --

:30:18. > :30:22.of course. We have a government that is split on the issue of

:30:22. > :30:28.Europe and his allegedly isolated, and yet it has gone up in the polls.

:30:28. > :30:31.And they go into Christmas ahead on one or two polls. If you are Leader

:30:31. > :30:37.of the Opposition, that is extraordinarily bad news. We used

:30:37. > :30:40.to have a name for this period of the parliament, mid-term blues. The

:30:40. > :30:46.Blues are rather chuffed and the reds are not. Mr Clegg is going to

:30:46. > :30:51.be sitting beside him, maybe we should get an extra camera on Mr

:30:51. > :30:56.Clegg's head and put it in the corner of the screen. These are not

:30:56. > :31:01.BBC cameras, we don't control them. In recent years, the directors of

:31:01. > :31:04.parliamentary television have got a bit bold or at doing cutaway shots.

:31:04. > :31:11.There is stuff that I do on a television news package, I have no

:31:11. > :31:14.control over those pictures. Let's see if they do it. When Mr Clegg

:31:14. > :31:18.told his party he couldn't call an election because he would be the

:31:18. > :31:22.last Lib Dem leader, it emphasised that he was between a rock and a

:31:22. > :31:27.hard place. Absolutely, emphasised his weakness. There is always a

:31:27. > :31:37.danger in doing well if you dismiss your partners. The danger for David

:31:37. > :31:38.

:31:38. > :31:42.Cameron and George Osborne is that The house will go any in paying

:31:42. > :31:46.tribute to sapper Elijah bond. He died at the Queen Elizabeth

:31:46. > :31:49.Hospital in Birmingham last Thursday as a result of wounds he

:31:49. > :31:54.sustained in Afghanistan. He was a dedicated and professional soldier.

:31:54. > :31:58.At this tragic time, we send our condolences to his loved ones, his

:31:58. > :32:01.friends and colleagues. This morning, I had meetings with

:32:01. > :32:06.ministerial colleagues and others. In addition to my duties in this

:32:06. > :32:10.house, I shall have further meetings today. Mr Speaker, may I

:32:10. > :32:16.associate myself and all members of the house with the Prime Minister's

:32:16. > :32:20.words about sapper Elijah Bond. People will be disappointed that

:32:20. > :32:25.this week's report into the financial crisis at the Royal Bank

:32:25. > :32:30.of Scotland contained no provision for the criminal prosecution of the

:32:30. > :32:34.executives, directors, regulators and ministers for their failures.

:32:34. > :32:38.Can the Prime Minister assure me that unlike the last government,

:32:38. > :32:46.his ministers will reinforce financial regulations and not

:32:46. > :32:50.undermine them like the shadow Chancellor did when in office?

:32:50. > :32:54.honourable friend is right. He will know that we are looking at

:32:54. > :33:02.specific extra measures and sanctions in terms of what people

:33:02. > :33:08.not just a damning report about the board of RBS, it was also a damning

:33:08. > :33:16.of the politicians responsible for regulating RBS. It did not just

:33:16. > :33:23.name politicians no longer serving, it also named the Shadow Chancellor.

:33:23. > :33:27.Ed Miliband! Mr Speaker, can I join the Prime Minister in pay tribute

:33:27. > :33:34.to Sapper Elijah Bond. He bravely gave his life trying to improve the

:33:34. > :33:37.lives of others. Our thoughts are with his family and friends. As we

:33:37. > :33:42.approach Christmas, our thoughts are also with all of our troops

:33:42. > :33:46.serving bravely and Afghanistan and elsewhere. Many will spend

:33:46. > :33:52.Christmas away from their families and friends to ensure a peaceful

:33:52. > :33:56.Christmas for us. We owe them a huge debt of gratitude. Mr Speaker,

:33:56. > :34:00.in this, the last Prime Minister's Questions of the year, let me

:34:00. > :34:05.remind the Prime Minister of what he had to say in his new year

:34:05. > :34:10.message of 2011. He said at "uppermost in my mind as we enter

:34:10. > :34:16.the new year is jobs. In light of today's unemployment figures, can

:34:16. > :34:20.he explain what has gone wrong? Firstly, let me join the honourable

:34:20. > :34:24.gentleman in his fitting tribute to our forces at Christmas time,

:34:24. > :34:27.serving in Afghanistan and other parts of the world. One of the

:34:28. > :34:33.things that most strikes you in this job is that they are the best

:34:33. > :34:38.of the best - brave, dedicated, and the families give up a huge amount

:34:38. > :34:43.at the same time. About the unemployment figures, any increase

:34:43. > :34:47.in unemployment is bad news and a tragedy for those involved. That is

:34:47. > :34:52.why we will do all we can to help people back into work. That is why

:34:52. > :34:57.we have the work programme to help 2.5 million people, and the massive

:34:57. > :35:01.increase in apprenticeships that will help 400,000 people and will

:35:01. > :35:06.particularly help young people through the work-experience places.

:35:06. > :35:11.We will do all we can to help people back into work. But the

:35:11. > :35:17.figures show that his economic strategy is failing. The Chancellor

:35:17. > :35:21.said at the time of the spending review last year"private sector job

:35:21. > :35:26.creation will far outweigh the reduction in public sector

:35:26. > :35:31.employment". Will he confirm that over the last three months, for

:35:31. > :35:36.every job being created in the private sector, 13 are being lost

:35:36. > :35:44.in the public sector? Let me give him the figures since the election.

:35:44. > :35:52.Since then, in the private sector, there have been 581,000 extra jobs.

:35:52. > :35:57.In the public sector, he is right, we have lost 336,000 jobs. So we

:35:57. > :36:02.need private sector employment to grow faster. But whoever was in

:36:02. > :36:06.government right now would have to be making reductions in public

:36:07. > :36:12.spending. The only way you can keep people in work in the public sector

:36:12. > :36:15.while doing that is to cut welfare, something we are doing and he

:36:15. > :36:19.opposes, and to freeze public sector pay, something we are doing

:36:19. > :36:24.and he opposes, and to reform public sector pensions, something

:36:24. > :36:28.we are doing and he opposes. It is all very well complaining about the

:36:28. > :36:33.rise in unemployment. If you don't take those steps, you would lose

:36:33. > :36:37.more jobs in the public sector. whole House will have heard that he

:36:37. > :36:41.cannot deny that the central economic claim that he made that

:36:41. > :36:47.the private sector would fill the gap left by the public sector has

:36:47. > :36:51.not been met. He has broken his promise. Today's figures also

:36:51. > :36:57.confirm that youth unemployment not only remains over a million, it is

:36:57. > :37:03.still rising. And long-term youth unemployment has gone up by 93%

:37:03. > :37:08.since he made his new year pledge on jobs. Isn't the reality that he

:37:08. > :37:15.is betraying a generation of young people? We will not take lectures

:37:15. > :37:18.from a party that put up youth unemployment by 40%. Even his

:37:18. > :37:24.brother admitted the other day that youth unemployment was not a

:37:24. > :37:28.problem invented by this government. It has been going up since 2004.

:37:29. > :37:33.Here is what we are doing to help young people get a job. Through the

:37:34. > :37:39.youth contract, we are providing 160,000 new jobs with private

:37:39. > :37:46.sector subsidies. With 250,000 work-experience places, half of

:37:46. > :37:51.those people are getting jobs and off benefit within two months. But

:37:51. > :38:00.is 20 times more effective than the future jobs fund. But the key to

:38:00. > :38:04.this is getting our economy moving. We need a private sector jobs. It

:38:04. > :38:08.is this government that has got interest rates down to 2%. That is

:38:08. > :38:14.why we have the prospect of growth, whereas his plans are for more

:38:14. > :38:19.spending, more borrowing, more debt, more of the mess we started with.

:38:19. > :38:24.The truth is that his promises to young people for next year are as

:38:24. > :38:30.worthless as the promises he made in 2011. Let's turn from his broken

:38:30. > :38:40.promise on jobs to his broken promise on the coalition. It is

:38:40. > :38:46.

:38:46. > :38:54.good to see the deputy prime minister back. This is what he said.

:38:54. > :38:59.Calm down. This is what he said in his new year message for 2011. I

:38:59. > :39:05.will place a copy in the library of the house so everyone can

:39:06. > :39:14.see."coalition politics is not always straightforward, but I

:39:14. > :39:23.believe we are bringing in a whole new style of government". There is

:39:23. > :39:33.more."a more collegiate approach". I am bound to ask, what has gone

:39:33. > :39:35.

:39:35. > :39:37.wrong? I will answer. Look, no one in this house is going to be

:39:37. > :39:43.surprised that Conservatives and Liberal Democrats do not always

:39:43. > :39:49.agree about Europe. But he should not believe everything he reads in

:39:50. > :39:59.the papers. It is not that bad. It is not like we are brothers or

:40:00. > :40:23.

:40:23. > :40:27.He certainly walked into that one! Mr Speaker... I think our sympathy

:40:27. > :40:31.is with the Deputy Prime Minister. His partner goes on a business trip,

:40:31. > :40:38.his left waiting by the phone and he hears nothing until a rambling

:40:38. > :40:42.phone call at 4am confessing to a terrible mistake. How is he going

:40:42. > :40:46.to pick up the pieces? How will he picked up the pieces of the bad

:40:46. > :40:51.deal he delivered for Britain? The council came to conclusions on

:40:51. > :41:01.Friday morning, but the treaty will not be signed until March. In the

:41:01. > :41:01.

:41:01. > :41:05.cold light of day,... Order! Some very, very foolish person shouted

:41:05. > :41:09.out" Bob". The person who did that will stop, because people in this

:41:09. > :41:14.place must be heard. If there is a member here who does not think so,

:41:14. > :41:17.I invite that member to leave the chamber. In the cold light of day,

:41:17. > :41:20.with other countries and in the weeks and months ahead try to see

:41:20. > :41:24.if they can get a better deal for themselves, isn't the sensible

:41:24. > :41:29.thing to do to re-enter the negotiations and try and get a

:41:29. > :41:39.better deal for Britain? For I make no apologies for standing up for

:41:39. > :41:42.Britain. In the last two days, we have read a lot about my opinions

:41:42. > :41:47.and the Deputy Prime Minister's opinions. The one thing we don't

:41:47. > :41:51.know is what the right honourable gentleman would have done. While he

:41:51. > :41:55.was here on Monday, his aides were running around the press gallery,

:41:55. > :42:04.briefing them that he would not have signed up to the treaty. What

:42:04. > :42:07.is your answer? I have no answer on this matter whatsoever for the

:42:08. > :42:11.benefit of the Prime Minister. I am glad the Minister of State has

:42:11. > :42:15.returned from his troubles. We wish him a merry Christmas, but in his

:42:16. > :42:20.case it should be a quiet one. Speaker, there was a better deal

:42:20. > :42:26.for Britain that he should have got, and that is what the Deputy Prime

:42:26. > :42:32.Minister himself says. Last week, he made a catastrophic mistake.

:42:32. > :42:36.This week, we discover unemployment at its highest level for 17 years.

:42:37. > :42:43.This prime minister thinks he is born to rule. The truth is, he is

:42:43. > :42:49.not very good at it. Even the soundbite was recycled from a

:42:49. > :42:54.previous PMQs. On Wednesday, the answer was No. Today, I think the

:42:54. > :43:00.answer is maybe. This leader of the Labour Party next weakness and

:43:00. > :43:07.indecision an art form. He was giving me at my end-of-year report.

:43:07. > :43:13.Let me give him his. He told us at the start of the Year"the fightback

:43:13. > :43:17.started in Scotland". That went well(!). He told us he had plans to

:43:17. > :43:21.cut the deficit. We still have not seen them. He said he would stand

:43:21. > :43:26.up to vested interests, and yet backed the biggest shrike for years.

:43:26. > :43:31.We all know he has achieved one thing. He has completely united his

:43:31. > :43:41.party. Each one of them has asked Santa for the same thing - a new

:43:41. > :43:49.leader for Christmas. Order! Order! I am sure government backbenchers

:43:49. > :43:54.will want to hear their own college. Mr Martin Vickers. Yesterday's

:43:54. > :44:00.announcement about local television was good news for my constituency,

:44:00. > :44:04.where Channel 7, the sole survivor from the original batch, is based.

:44:04. > :44:08.Does the Prime Minister agree that local broadcasting strengthens

:44:08. > :44:11.local communities and advances the Big Society? If he is in north

:44:11. > :44:17.Lincolnshire in the near future, would he find time to pay them a

:44:17. > :44:21.visit? I would be delighted to do that. I have no immediate plans to

:44:22. > :44:28.visit North Lincolnshire, but I support local television and North

:44:28. > :44:35.Lincolnshire had some good news with the plant going into Hull.

:44:35. > :44:38.David Blunkett. In the early new year, the Government intended to

:44:38. > :44:43.announce a wholesale revision of the national curriculum. Can I put

:44:43. > :44:47.it to the Prime Minister that it would be perverse to be requiring

:44:47. > :44:52.those coming from abroad to settle in Britain, to learn about our

:44:52. > :44:56.democracy, to take citizenship courses, whilst we are drawing them

:44:56. > :45:02.for the teaching of citizenship and democracy to our own children in

:45:02. > :45:06.our own schools? I will listen to what the right honourable gentleman

:45:06. > :45:10.says, because I agree with some of the proposals he put forward when

:45:10. > :45:14.Home Secretary about citizenship. Many in this house will have been

:45:14. > :45:17.to the citizenship ceremonies he was responsible for. It has been a

:45:18. > :45:21.good addition to our country and our democracy. I pay tribute to him

:45:21. > :45:26.for that. We will look at what he says about the curriculum, but the

:45:26. > :45:30.aim is to make sure we teach the basics properly and well, and we

:45:30. > :45:39.test on them. If you can't read and write properly, no lessons in

:45:39. > :45:42.91% of people who get into financial difficulty believe they

:45:42. > :45:45.would have avoided doing so had they been better informed. Ahead of

:45:45. > :45:48.tomorrow's debate on financial education, would the Prime

:45:48. > :45:55.Minister's support our calls for compulsory education for young

:45:55. > :45:58.people? It very much links in with the last question. I strongly

:45:58. > :46:01.support teaching young children about the importance of financial

:46:01. > :46:06.education, but the point of having a proper review of the curriculum

:46:06. > :46:12.is to make sure what is absolutely essential and call, and what can be

:46:12. > :46:16.included as extra lessons. Unemployment is going up, and

:46:16. > :46:20.living standards are being squeezed. Many more people are being forced

:46:20. > :46:24.into the hand of the pay-day lenders and the debt management

:46:24. > :46:28.companies. Will the Prime Minister act to protect ordinary people who

:46:28. > :46:32.are being preyed on and ripped off? The honourable lady speaks with

:46:32. > :46:36.great experience because she worked for Citizens Advice Bureau before

:46:36. > :46:40.coming to this house, and stands up for Citizens Advice Bureau and his

:46:40. > :46:44.right to do so. All of us know what a brilliant job they do. The last

:46:44. > :46:48.government wrestled with this question about how you best

:46:48. > :46:52.regulate doorstep lenders and other lenders. The danger of driving

:46:52. > :46:56.people into the loan sharks, if you get rid of the regulated sector. I

:46:56. > :46:59.am very happy to discuss this further with interested colleagues,

:46:59. > :47:03.it is a very difficult subject to get right but this government is

:47:03. > :47:08.working at it. Does the Prime Minister share my concern over the

:47:08. > :47:12.impact of pocket-money price alcohol on the state of our

:47:12. > :47:17.nation's health, the anti-social behaviour in town centres and the

:47:17. > :47:20.damage it does to community pubs. think the honourable gentleman

:47:21. > :47:24.makes an important point. There is no doubt in my mind that the very

:47:24. > :47:28.low cost alcohol is part of the problem in our town centres. One of

:47:28. > :47:33.the answers the government has already come up with is to ban a

:47:33. > :47:36.deeply discounted selling of alcohol, but we need to look at the

:47:36. > :47:39.broader question of low-cost Al Gore. I note the letter that is in

:47:39. > :47:42.the papers this morning from a whole set of people with great

:47:42. > :47:48.expertise about this, and we are looking very carefully at that

:47:48. > :47:52.issue. This morning we learned that Teesside Airport is up for sale,

:47:52. > :47:57.and it seems as though, as unemployment is skyrocketing in the

:47:57. > :48:00.north-east, our planes may be grounded. Isn't this yet further

:48:00. > :48:03.evidence that the loss of infrastructure and jobs in the

:48:03. > :48:08.North East, that this government's economic plan is a catastrophic

:48:08. > :48:13.failure? The key thing about the future of Durham TVs airport, which

:48:13. > :48:17.is a vital airport, is not necessarily so who owns it but is

:48:17. > :48:21.it being invested in, is it being expanded and working well. That is

:48:21. > :48:31.the key question and the question that I know at the Transport

:48:31. > :48:35.

:48:35. > :48:37.Has the Prime Minister seen the OECD and the National Institute of

:48:37. > :48:42.Economic and Social Research findings this week, showing that

:48:42. > :48:46.soaring immigration was not caused by the prospect of prosperity, but

:48:46. > :48:51.just by the open door policies of the last government? And will he

:48:52. > :48:56.stop it happening again? honourable lady is absolutely right.

:48:56. > :49:01.The report said specifically, the increase in net immigration to the

:49:01. > :49:11.UK was not driven primarily by the economic performance of the UK, or

:49:11. > :49:12.

:49:12. > :49:19.other countries, instead it points to other policies. The answer is to

:49:19. > :49:23.deal with the bogus colleges, and we are doing that. To put a limit

:49:23. > :49:28.on economic migration outside the EU and to have proper border

:49:28. > :49:34.controls, and we are doing that as well. The Autumn Statement saw

:49:34. > :49:41.400,000 Scottish children lose over �40 million due to changes in the

:49:41. > :49:44.tax system. In my constituency, that meant �600,000 taken from

:49:44. > :49:50.children. Why is the Prime Minister taking money out of children's

:49:50. > :49:54.pockets, while being in the pockets of the bankers? I am afraid to say

:49:54. > :49:58.to the honourable gentleman, he is plain wrong. The child tax credit

:49:58. > :50:03.is going up by �135. He talks about the bankers, this government has

:50:03. > :50:11.put in place a bank levy that is going to raise more every year than

:50:11. > :50:16.Labour's one of bonus tax raised in As a York MP, I am extremely proud

:50:16. > :50:19.of our City's vibrant tourism sector. Does my right honourable

:50:19. > :50:23.friend agree that tourism plays a key role in our local economies,

:50:23. > :50:28.and will he ensure that Northern tourist attractions in particular

:50:28. > :50:31.are promoted in the run-up to the Olympic Games? My honourable friend

:50:31. > :50:34.makes a very important point. Millions of people will come to

:50:34. > :50:38.this country to the Olympic Games, we need to encourage them not just

:50:38. > :50:41.to go to the Olympic Games but visit other parts of the country

:50:41. > :50:44.and return to Britain for his subsequent visit. There will be all

:50:44. > :50:48.sorts of promotions and schemes that we will be running to

:50:48. > :50:51.encourage just that. If we can encourage people more generally to

:50:52. > :50:54.visit places other than London, and York as many great tourist

:50:54. > :50:59.attractions and things of historical importance, we would

:50:59. > :51:03.drive a huge amount of growth and grub -- growth and jobs in our

:51:03. > :51:07.regions. On 16th December, Bangladesh will markets 40 is

:51:07. > :51:11.anniversary as an independent nation, following a war that cost 3

:51:11. > :51:17.million lives. I want to pay tribute to the contribution made by

:51:17. > :51:23.this parliament in supporting the fight for self-determination. As

:51:23. > :51:27.the second most vulnerable country to climate change, does the Prime

:51:27. > :51:31.Minister agree with me that it is now more important than ever before

:51:31. > :51:36.to support developing countries from the devastating effects of

:51:36. > :51:39.climate change. I agree with the honourable lady and I think the

:51:39. > :51:44.whole how should recognise what she has done in raising this issue at

:51:44. > :51:47.the time, as Bangladesh approaches this important anniversary. Britain

:51:47. > :51:52.can be proud of the back that we have very good relations with

:51:52. > :51:55.Bangladesh, and our aid programme in Bangladesh is one of the leading

:51:55. > :51:59.ones from anywhere in the world into that country. We are spending

:51:59. > :52:02.specific money on helping them with climate change, meeting all the

:52:02. > :52:06.promises we have. I met with the Prime Minister of Bangladesh. One

:52:06. > :52:09.of the issues we have to raise, there are human rights issues in

:52:09. > :52:15.Bangladesh and we shouldn't be scared of raising them in the

:52:15. > :52:20.proper way. An EU wide agreement on prisoner transfers comes into force

:52:20. > :52:26.this month, which will enable the UK to repatriate to jails in their

:52:26. > :52:30.own country, any EU nationals imprisoned here. Given some 13% of

:52:30. > :52:33.our prison population is made up of foreign nationals, will the Prime

:52:33. > :52:39.Minister ensure that our EU partners stick to these new rules

:52:39. > :52:45.and take their criminals back? my honourable friend and his strong

:52:45. > :52:51.views asking a question about a successful EU skin, it merely --

:52:51. > :52:56.really must be Christmas. He is absolutely right. We have 13% of

:52:56. > :52:59.our prison space is taken by foreign nationals. This is hugely

:52:59. > :53:03.expensive and this EU wide agreement gives us great

:53:03. > :53:10.opportunity to return people to their national prisons and save

:53:10. > :53:16.money at the same time. Is freezing the pay of young private and

:53:16. > :53:22.corporals, while they are fighting in Afghanistan, without reference

:53:22. > :53:26.to the armed forces Pay Review Body, a breach of the military covenant?

:53:26. > :53:31.It is this government which doubled the operational allowance, which I

:53:31. > :53:35.think is the best way to get money to the privates and the corporals

:53:35. > :53:40.in Afghanistan, who are doing such a good job. The operational Lowndes,

:53:40. > :53:44.being a flat cash amount of money, is of disproportionate benefit to

:53:44. > :53:47.relatively low-paid people in the armed forces -- operational

:53:47. > :53:50.allowance. The percentage increase would mean more money for the

:53:50. > :53:53.colonels and generals and brigadiers, rather than for the

:53:53. > :53:57.people on the front line. Looking at the operation allowance is

:53:57. > :54:02.crucial, but this government has an just done that, we have extended

:54:02. > :54:06.the pupil premium to force his children, we have increased the

:54:06. > :54:11.council tax rebates for those who are serving, and for the first time,

:54:11. > :54:15.we have written the military government into the law of our land.

:54:15. > :54:20.I commend my right honourable friend for protecting our national

:54:20. > :54:24.interest by exercising the be towed, the people of Dudley South thank

:54:24. > :54:28.him for it. The deal he vetoed commits eurozone members to

:54:28. > :54:33.struggle deficits of below half a per cent of GDP. But the planners

:54:33. > :54:36.to appreciate this is 16 times the UK struggled deficit left by the

:54:36. > :54:39.party opposite? My honourable friend makes a good point, which is

:54:40. > :54:43.perhaps why the leader of the Labour Party is struggling so much

:54:43. > :54:49.to tell us what his view is about this proposed treaty. On the one

:54:49. > :54:52.hand, he wants to join the euro, if he is Prime Minister for long

:54:53. > :54:58.enough but but but that's rubbish? He doesn't want to be prime

:54:58. > :55:02.minister for long enough. Oh, right. He wants to join the euro, he wants

:55:02. > :55:07.a deal with very tough budget deficit limits, and he wants to

:55:07. > :55:15.increase spending, borrowing and debt. He tells us he has got a five

:55:15. > :55:18.point plan. I can sum it up in five words. Let's bankrupt Britain again.

:55:18. > :55:21.Perhaps the Prime Minister could tell us why the Deputy Prime

:55:21. > :55:25.Minister did not support his position on Europe on Monday, and

:55:25. > :55:29.why not one single and a Democrat MP voted with the Prime Minister

:55:29. > :55:33.last night. -- not one single Liberal Democrat MP. Last night,

:55:33. > :55:37.there was something of a parliamentary rarity, a motion put

:55:37. > :55:41.down by an opposition party, praising the Prime Minister. I am

:55:41. > :55:45.very grateful to colleagues in the Democratic Unionists. I suspect

:55:45. > :55:49.that many people concluded that Labour simply wouldn't get their

:55:49. > :55:59.act together, it wasn't worth voting and as a result, we won very

:55:59. > :56:01.

:56:01. > :56:06.easily. I am sure the whole house will join me in thanking a

:56:06. > :56:11.remarkable man, who has served this country and this place with courage

:56:11. > :56:16.and distinction, for nearly 50 years. Eddie Mackay, who is in the

:56:16. > :56:21.gallery right now, has been a doorkeeper here for 23 years and

:56:21. > :56:25.retires on Tuesday. Before coming to this place, he served with

:56:25. > :56:29.distinction with the Scots Guards, leaving after 23 years' service as

:56:29. > :56:33.a senior Warrant Officer. The Household Division, you're not

:56:33. > :56:37.promoted to drill sergeant unless you are exceptional. On a

:56:37. > :56:43.tumbledown mountain he saw action during the Falklands War in 1982.

:56:43. > :56:47.His company, 2nd Battalion Scots Guards, led that successful and

:56:47. > :56:52.audacious night assault. Can I ask the Prime Minister, on behalf of us

:56:52. > :56:57.all, to wish drill sergeant Andy Mackay a happy retirement and a

:56:57. > :57:02.happy Christmas. On behalf of the whole house, can I thank the

:57:02. > :57:06.honourable gentleman for raising this issue and question, and thank

:57:06. > :57:11.anti for his incredible service. I sometimes think in this house we

:57:11. > :57:14.can take for granted, the people who work so hard to keep it working,

:57:14. > :57:19.keep it going, and I sometimes wonder what they think of the

:57:19. > :57:23.antics we get up to in this house, but we are incredibly grateful of

:57:23. > :57:26.the service he gave to our nation, to come here and work so hard for

:57:26. > :57:32.so many years. We are all in his debt and sent him good wishes for

:57:32. > :57:38.his retirement. The publication of youth unemployment figures this

:57:38. > :57:45.morning show that in the last quarter, 22% of 16 to 24-year-old

:57:45. > :57:51.economically active citizens are unemployed. An increase of 1.2% on

:57:51. > :57:54.the previous quarter. The Prime Minister's rant earlier today at

:57:54. > :57:59.Question Time about what this government is doing for youth

:57:59. > :58:04.unemployment in this country, could he tell us why it is increasing?

:58:04. > :58:11.Every increase is unacceptable and I will tell you exactly why. In

:58:11. > :58:15.terms of 16 to 18-year-old Young unemployment -- young people, that

:58:16. > :58:19.is going down. The problem is people over 18, under 24, who are

:58:19. > :58:22.finding the job market extremely difficult. The reason on it when it

:58:22. > :58:25.is going up is because we are losing jobs in the public sector

:58:25. > :58:29.and we are not growing them fast enough in the private sector. We

:58:30. > :58:34.need to do everything we can to get our economy moving. The absolute

:58:34. > :58:41.key to that is keeping interest rates low. We have interest rates

:58:41. > :58:44.down at 2%, and if we followed his party's policy of extra spending,

:58:44. > :58:50.borrowing, debt, interest rates would go up, more businesses would

:58:50. > :58:53.go under and we wouldn't get our economy moving. Many members of

:58:53. > :58:58.this House will have encountered examples of banks using the threat

:58:58. > :59:02.of receivership to extract higher interest rates from its business

:59:02. > :59:05.customers. Does the Prime Minister agree it is wrong for banks to use

:59:05. > :59:10.what is effectively an extortion but -- extortion at bargaining

:59:10. > :59:18.position, and what he agreed to meet with me to examine procedures

:59:18. > :59:24.I have outlined? I am happy to meet with my honourable friend about

:59:24. > :59:27.this issue. It is not only vital that we get banks lending properly

:59:27. > :59:31.and to small businesses, but that we made sure they behave in a

:59:31. > :59:34.proper and ethical way as they do so. We are addressing the first

:59:34. > :59:37.issue through the National Loan Guarantee Scheme and the other

:59:37. > :59:41.credit easing measures that the Chancellor set out in the Autumn

:59:41. > :59:43.Statement, but we also need to make sure that the practices that the

:59:43. > :59:46.banks followed are fair, and seen to be fair. They have an interest

:59:46. > :59:53.in making sure that small businesses are in good health, and

:59:53. > :59:58.they need to follow procedures to make sure that happens. Youth

:59:58. > :00:06.unemployment in Dumfries and Galloway has risen by 65% over the

:00:06. > :00:11.last 12 months. With the British Retail Consortium indicating that

:00:12. > :00:16.one in three jobs are filled by under 25s, does he recognise that

:00:16. > :00:20.the predicted squeeze on the retail sector will only increase the

:00:20. > :00:24.chances of youth unemployment, increasing across the entire

:00:25. > :00:29.country? The thing that will put the biggest squeeze sector is if

:00:29. > :00:33.interest rates went up. Just one percentage point increase in

:00:33. > :00:36.interest rates would see the typical family lose �1,000 a year

:00:37. > :00:41.through extra mortgage payments. Everybody knows we are in a

:00:41. > :00:44.difficult economic situation, and we have to take difficult decisions,

:00:44. > :00:48.as there is effectively a freeze across the eurozone. The most

:00:48. > :00:53.important thing is to keep interest rates low, so people have money in

:00:53. > :00:57.their pockets and we can see good retail recovery. East Cheshire

:00:57. > :01:01.Hospice and many other hospices across the country run Christmas-

:01:01. > :01:03.tree collection services that help many families recycle their

:01:03. > :01:07.Christmas trees in an environmentally sensitive way. Can

:01:07. > :01:10.the Prime Minister join me in supporting the great work that

:01:10. > :01:13.these charities do, in collecting these trees, to raise hundreds of

:01:13. > :01:21.thousands of pounds for the important work of art was this is?

:01:21. > :01:25.I certainly join my honourable friend. -- of our hospices. I

:01:25. > :01:29.praise him -- join him in praising the important work that hospices do.

:01:29. > :01:32.They have to be ingenious about how they raise money up and down the

:01:32. > :01:35.country, and collecting and recycling Christmas trees so that

:01:35. > :01:41.we don't just leave them outside the house, I think is an excellent

:01:41. > :01:51.idea and I am sure the whole house want to praise meet in the work --

:01:51. > :01:52.

:01:52. > :01:56.join me in praising the work that Will he give us a publication date

:01:56. > :02:01.for a consultation paper, leading to legislation, or he could take on

:02:01. > :02:06.my ten-minute rule, which is already published. I am a generous

:02:06. > :02:10.sort of bloke, he can have it now, and get it on the statute book.

:02:10. > :02:13.am a generous sort of bloke, too. I can tell them that the lobbying

:02:13. > :02:18.proposals will be published within the next month. This government

:02:18. > :02:28.will have moved faster in 18 months than the last government did in 13

:02:28. > :02:30.

:02:30. > :02:34.The Prime Minister will have seen the news this morning of the study

:02:34. > :02:40.in the excess deaths of people with diabetes, unnecessary deaths it

:02:40. > :02:44.that condition is treating -- treated properly. The framework

:02:44. > :02:47.comes to an end in 2013. Will the Prime Minister look at the

:02:47. > :02:51.frameworks as a way of meeting the challenges that there will be on

:02:51. > :02:56.the health service budget, and helping people with diabetes in the

:02:56. > :03:01.future? I am very happy to look at the national service frameworks, as

:03:01. > :03:05.he says. I think the key issue with diabetes is that we need to raise

:03:05. > :03:09.the profile of this condition, because many people have it and

:03:09. > :03:13.don't know they have it. The key thing, as well, is to look at the

:03:13. > :03:17.public health issues. The explosion in diabetes is coming partly from

:03:18. > :03:21.bad diet and obesity in childhood, and we need to address those issues,

:03:21. > :03:26.otherwise we are always going to be dealing with the disease, rather

:03:26. > :03:31.than trying to look for the prevention. It is always a delight

:03:31. > :03:37.to listen to my colleagues, so we will have a little more. Thank you

:03:37. > :03:42.very much. Earlier this week, in the Other Place, the coalition

:03:42. > :03:47.government voted down a proposal to protect the benefits of disabled

:03:47. > :03:53.children, by a majority of two. Can I ask the Prime Minister that by

:03:53. > :03:57.reducing benefits for disabled children by ever �1,300 a year, is

:03:57. > :04:03.something that identifies his often repeated mantra that we are all in

:04:03. > :04:10.this together? We are not cutting benefits to disabled children.

:04:10. > :04:13.Actually, we are upgrading, operating by 5.2%, all of those

:04:13. > :04:22.benefits so that people will see an increase in the benefits that they

:04:22. > :04:27.receive next year. Last, but never forgotten, Mr Brian Binley.

:04:27. > :04:30.Speaker, the Prime Minister will be aware that capacity levels on the

:04:30. > :04:35.West Coast Main Line are intolerable, and getting worse.

:04:35. > :04:40.Does he share the concerns of rail users that delays to High Speed 2

:04:40. > :04:45.will only make their journeys more unpleasant. And will be provide the

:04:45. > :04:48.assurance they seek about the future he promised them? I am

:04:48. > :04:53.grateful to my honourable friend for raising this question. The

:04:53. > :04:57.country has a choice, because the West Coast Main Line is as

:04:57. > :05:02.congested as it is, we need either to replace it with a traditional

:05:02. > :05:05.line, or a high-speed line. It is well known, the government's view

:05:05. > :05:08.is that a high-speed line is the right answer. That is why this

:05:08. > :05:13.consultation has been conducted, and I think it is not just good for

:05:13. > :05:16.people who want to use the West Coast Main Line, but it will be a

:05:16. > :05:20.success for regional policy in linking up our cities, shrinking

:05:20. > :05:30.the size of our country and making sure all parts of our country can

:05:30. > :05:35.enjoy economic prosperity and That is the final Prime Minister's

:05:35. > :05:41.Questions of 2011. An historic event. There will be no more until

:05:41. > :05:44.20th January 12. The leader of the opposition did go on unemployment

:05:44. > :05:49.to begin with, as we predicted. Comfortable territory for him, but

:05:50. > :05:56.when he moved on to Europe, as we also predicted, the going got more

:05:56. > :06:00.rough. Indeed, most of you, from your e-mails and tweets, seemed to

:06:00. > :06:04.think it was game, set and match for Mr Cameron. Some thought Mr

:06:04. > :06:09.Miliband had done well, but the overwhelming view was but it was

:06:09. > :06:12.not Mr Miliband's finest day, and therefore he has ended the year on

:06:12. > :06:19.a low note. Nigel Farage, the leader of UKIP, tweeted while this

:06:19. > :06:25.was going on, and said why the EU is crumbling, today we are voting

:06:25. > :06:28.in the European Parliament on the sugar content in orange juice. It

:06:28. > :06:38.is good to know the important things in life are still being

:06:38. > :06:42.looked after in Strasbourg. I was day yesterday. What do our viewers

:06:42. > :06:51.make of it? You are right. The reflection was

:06:51. > :06:54.that it was a poor performance from Ed Miliband. He did not do well in

:06:54. > :06:58.general according to you, the viewer. Gareth says Miliband sounds

:06:58. > :07:02.out of his depth and out of touch with the sentiment of the country.

:07:02. > :07:05.Colin in rugby - I find the position taken by a Ed Miliband and

:07:05. > :07:09.Labour about the economy, unemployment and Europe staggering

:07:09. > :07:13.and the reason why they are behind in the opinion polls. John in Essex

:07:13. > :07:23.- oh, dear, poor Ed Miliband. No matter how well his script is

:07:23. > :07:26.written, he does not have the skills to deliver it. But Joe says

:07:26. > :07:29.of the com -- of the negotiations, if Cameron really cared, he would

:07:29. > :07:36.still be at the top table in Brussels where he could be positive

:07:36. > :07:39.business for Britain. There were a lot of e-mails about unemployment.

:07:39. > :07:43.Diane said Cameron can't spin his way out of the figures on

:07:43. > :07:47.unemployment. It is going up and his designating millions to the

:07:47. > :07:51.scrapheap without pity. A few statistics will not hide that.

:07:51. > :07:56.Robert in Oxford said when it comes to the economy, couldn't all

:07:56. > :08:00.politicians admit there is little governments can do? And then on the

:08:00. > :08:03.Speaker, Damian said, can someone please tell him that the public do

:08:03. > :08:07.not like his interruptions? It is not good for democracy and the

:08:07. > :08:10.public cannot hear a word that is being said. This is Prime

:08:10. > :08:15.Minister's Questions and not speaker's interruptions.

:08:15. > :08:22.I am sure the Speaker will take notice of that e-mail from a member

:08:22. > :08:27.of the great British public. What is the impact on the Labour

:08:27. > :08:30.backbenchers when the leader performs sub-standard? The feeling

:08:30. > :08:34.on the back bench at the moment is that we are united about wanting to

:08:34. > :08:38.get things going in this country and get people back to work.

:08:38. > :08:43.Whether it is today or on other occasions, David Cameron always

:08:43. > :08:46.refuses to answer questions about if the economic policies are going

:08:46. > :08:54.so well and the deficit reduction is working, why aren't we seeing

:08:54. > :08:59.people going back into work? I take your point on the substance of that,

:08:59. > :09:05.but Prime Minister's Questions is a theatrical event. People can take

:09:05. > :09:10.their own views on how important it is in the grand scheme of things.

:09:10. > :09:15.But when Conservatives were in opposition, if their leaders did

:09:15. > :09:19.badly, it affected morale and that percolated through the party itself,

:09:20. > :09:25.not just for the few minutes which we cover live. Is that a problem

:09:25. > :09:29.for Labour? Ed Miliband's job is to ask the questions that reflect

:09:29. > :09:33.concerns in the country. That is what our backbenchers want to see.

:09:33. > :09:40.Why do people think he did so badly? Some people have suggested

:09:40. > :09:44.that. Most of them. We believe it is his job to keep asking the

:09:44. > :09:49.questions. From one week to the next, David Cameron refuses to

:09:49. > :09:53.answer. Beyond the theatricals of Westminster, it is about what is

:09:53. > :09:57.really happening out there. People are worried about job security,

:09:57. > :10:01.their kids and the cost of living. If everything is going so well for

:10:01. > :10:07.the Government, and there has been a hit in the polls over this EU

:10:07. > :10:11.matter, but it is about the medium and long-term about the prospects.

:10:11. > :10:18.Is there a lesson for Labour, though, on this hit in the polls

:10:18. > :10:26.over Europe? Is there a lesson for your own popularity, that you

:10:26. > :10:31.should not be seen to be too pro- Europe? Are we have always thought

:10:31. > :10:35.our relationship with Europe should be a proper -- pragmatic one. It is

:10:35. > :10:40.not about popularity. Where does the summit leave us outside the

:10:40. > :10:49.negotiating table and in terms of the big issues around the Eurozone?

:10:49. > :10:52.I was asking about the impact on the Labour Party. There are a lot

:10:52. > :10:56.of questions left to be answered about how the European Union will

:10:56. > :11:00.work to get people back to work. And we walked away from that

:11:00. > :11:05.discussion with this Prime Minister. Prime Minister's Questions, which

:11:05. > :11:10.are a bit of an acquired taste for the aficionados to watch it, but it

:11:10. > :11:13.is also important. It is hugely important. I said before that

:11:13. > :11:20.politics is a team sport. When you are in opposition, you can't do

:11:20. > :11:23.anything. You can only say things. And if your team captain seems not

:11:23. > :11:28.to be performing, if the results are not good and the only results

:11:28. > :11:33.you have got our opinion polls, changeable although they are and

:11:33. > :11:37.not the real thing, of course heads drop and morale goes down. That

:11:37. > :11:46.matters in opposition because when you are not getting paid extra to

:11:46. > :11:52.do it, when you are not getting the rewards of doing things, of course

:11:52. > :11:57.team morale matters. I did think it was one of those moments where you

:11:57. > :12:01.want to say ouch. You really thought he was taking a pasting.

:12:01. > :12:05.Not on the substance. But there were three or four questions on

:12:05. > :12:13.unemployment. He was making a substantial point. A lot of viewers

:12:13. > :12:16.would have been saying, quite right. Conservative ministers did say

:12:16. > :12:20.private sector job creation would outweigh public sector cuts. There

:12:20. > :12:26.was no answer on that. But on Europe, he said nothing of any

:12:26. > :12:30.substance. He chose instead to effectively dragged out the

:12:30. > :12:34.coalition's expense, and it was turned back on him in a pretty

:12:34. > :12:39.devastating way. These things are not the big substance of politics,

:12:39. > :12:43.but they are very corrosive before a holiday. That sounds odd, but

:12:43. > :12:48.people go away feeling a bit low, and then they call their friends

:12:48. > :12:54.and say, it is not going well. That makes it harder for Ed Miliband. We

:12:54. > :12:59.used to talk about mid-term blues, and at the moment, that is how it

:12:59. > :13:04.is. Grant Shapps, maybe you should enjoy it while it lasts, because it

:13:04. > :13:09.might not last long. Most private sector forecasts think we will be

:13:09. > :13:16.back in recession next year. Unemployment will continue to rise.

:13:16. > :13:20.Growth will be elusive. Living standards will continue to be

:13:20. > :13:25.squeezed, and those on below- average incomes will suffer more

:13:25. > :13:30.than ever. It is not a great prospectus for the Government.

:13:30. > :13:35.are not living in a great world. As Nick has just said, you would not

:13:35. > :13:40.want any of this and you would not to be -- want to be in a position

:13:40. > :13:44.where your export markets are in turmoil over the Eurozone. You

:13:44. > :13:47.would not want to be here. I am cautious about some of those

:13:47. > :13:51.projections in as much as we would not have thought at the beginning

:13:51. > :13:54.of the year that things would have been like this at the end. I would

:13:54. > :13:59.not want to project forward the next year and talk ourselves into a

:13:59. > :14:03.recession but accept that it is likely to be tough for the

:14:03. > :14:09.Government. But you have to show leadership. Cameron has scored here

:14:09. > :14:17.because he has shown leadership on the economy and in Europe. With 13

:14:17. > :14:23.years of being in opposition... are you showing leadership? We are

:14:23. > :14:27.not being forced by the Eurozone to cut budgets, as is happening in

:14:27. > :14:35.Italy, Greece, Spain and many other countries. We did it on our own

:14:35. > :14:43.terms. You got nothing from Europe. If you are not saying what you

:14:44. > :14:52.would do on the economy... We have. If you don't do those things, you

:14:52. > :14:56.do not get confidence. You are borrowing more. But people agree

:14:56. > :15:00.that this is because the world is experiencing a huge slow down.

:15:00. > :15:10.our domestic situation is worse than our export situation, isn't

:15:10. > :15:10.

:15:10. > :15:13.it? You need a plan of your own. have. We have to stop you there.

:15:13. > :15:20.More spending and more borrowing. Getting people into work. You are

:15:20. > :15:28.borrowing more. She is still going on. It is true!

:15:28. > :15:33.In the words of Homer Simpson, give me your thought for the year.

:15:33. > :15:36.last thought on that. If you are the Government, you will go away

:15:37. > :15:41.for Christmas feeling pretty chirpy about the polls and the politics,

:15:41. > :15:45.but here is a potential danger. Nick Clegg told his party yesterday,

:15:45. > :15:49.I am not going to produce an election and bring this coalition

:15:49. > :15:52.down, because I might be the last Lib Dem leader ever in government.

:15:52. > :15:57.There is a danger of being so dominant in politics that you

:15:57. > :16:00.humiliate people who sit around your Cabinet table. If, and it is a

:16:00. > :16:04.big if, because the truth is that the relationship between Cameron

:16:04. > :16:08.and Clegg is still strong and they did agree on the negotiating

:16:08. > :16:13.position, I know for a fact, before that summit. But if Nick Clegg

:16:13. > :16:17.fails, I have to be here because otherwise I will be destroyed, if

:16:17. > :16:22.his party feels more and more humiliated, that has dangers for a

:16:22. > :16:27.government because as Geoffrey Howe found, and if you have seen the new

:16:27. > :16:30.film about the Iron Lady, Margaret Thatcher, you see the eyes of the

:16:30. > :16:38.men around the Cabinet table feeling daily more humiliated, and

:16:38. > :16:43.boy, they get you back eventually. It is not dull, is it? My reel for

:16:43. > :16:52.the 2012 is, keep watching. Has politics be in this interesting for

:16:52. > :16:56.a long time? Merry Christmas and happy Hogmanay. Your present is in

:16:56. > :17:00.the Azerbaijan post. Taxes have been hiked across the

:17:00. > :17:04.board in response to the financial crisis, but have we reached the

:17:04. > :17:07.point where they are now so high that they are harming growth? One

:17:07. > :17:11.of the most controversial changes recently was an increase in the top

:17:11. > :17:15.rate of income tax to 50 pence in the pound. Introduced by Labour,

:17:15. > :17:18.kept by the coalition, it is not popular among the highest earners.

:17:18. > :17:23.One of those is Charlie Mullins, owner of his own business and

:17:23. > :17:33.probably Britain's richest plumber. He explains why the 50 pence rate

:17:33. > :17:36.

:17:36. > :17:41.should go. Nobody likes it. We would all

:17:41. > :17:45.rather see a lot less of it, but if we want to live in a society that

:17:45. > :17:52.is fair and not just looking after the fittest that survive, we really

:17:52. > :17:57.all need to pay taxes. The more economic growth we create, the

:17:57. > :18:00.richer we become, but that does not necessarily mean that we have to

:18:00. > :18:05.tax people more, especially in if it is a disincentive to create

:18:05. > :18:09.wealth. At the end of the day, we paid enough tax as it is, and at

:18:09. > :18:14.the moment it is 50 pence in the pound. I believe it is a bad tax.

:18:14. > :18:18.If entrepreneurs were to go abroad and take with them their spanners,

:18:18. > :18:25.not only would we stop paying taxes, but thousands of jobs would follow

:18:25. > :18:29.and the country would sink. The tax burden at the moment is excessive.

:18:29. > :18:32.By the time you add national insurance to the 50 pence tax rate

:18:32. > :18:41.I have already paying, it is well into the summer before I am working

:18:41. > :18:45.for myself rather than paying taxes. So, how am I going to relocate my

:18:45. > :18:50.business to India or Bangladesh? We all know the answer to that - of

:18:50. > :18:54.course not. But I get a feeling many people may, or maybe they will

:18:54. > :18:58.pack it all in. I have worked hard and done well. I don't need to

:18:58. > :19:04.carry on working to live well. Of course, if you tax a man nothing,

:19:04. > :19:07.we can't pay for schools, hospitals, rubbish collection. But if you

:19:08. > :19:12.attacked a man too much, there will come a point where he will say

:19:12. > :19:16.enough is enough and chuck down his tools. With this 50 pence tax rate,

:19:16. > :19:20.we are close to the tipping point, and that is why I believe the

:19:20. > :19:30.Chancellor should ignore his coalition partners, listened to us

:19:30. > :19:33.entrepreneurs and flush it down the Very appropriate ending, of course.

:19:33. > :19:38.It is a busy time of year for plumbers but Charlie Mullins is

:19:38. > :19:44.here. What tax rate do you think would be fair? Anything less than

:19:45. > :19:52.the 50p one. We need an incentive, rather than being penalised. If we

:19:52. > :19:57.brought it down to... 40 it? come on. The -- 48? How much lower

:19:57. > :20:02.would you like to see it? 40p, maybe. You said yourself, that you

:20:02. > :20:05.would not relocate. Do think it is that much of a disincentive?

:20:05. > :20:09.course it is. You can't be penalising people that are

:20:09. > :20:14.successful. You need to encourage them, give them incentives. I don't

:20:14. > :20:22.particularly need to work any more, but I am sure that other people

:20:22. > :20:25.that may need to work will continue to work, or even packet all in.

:20:25. > :20:29.have a government minister here, when are you going to scrap the 50p

:20:29. > :20:32.tax rate? I don't think there is any point in the tax rate if it

:20:32. > :20:36.doesn't collect more money than not having it there. What is the

:20:36. > :20:42.estimate? 2.7 5 billion? The Chancellor is doing some work on

:20:42. > :20:45.that and we will look at it. There is an important message. In a time

:20:45. > :20:49.when we are in economic difficulty and people are being asked to

:20:49. > :20:52.contribute more, there is an order of sequence. I don't think it would

:20:52. > :20:57.be right to go abolishing that tax rate whilst people at the bottom of

:20:57. > :21:01.the pile pay more. We have to tackle this at both ends. 1 million

:21:02. > :21:06.people are being taken out of tax at the bottom, with the bottom tax

:21:06. > :21:10.rate rising higher and higher. First of the day, I am inclined to

:21:10. > :21:14.agree, there is no point having a tax rate that is punitive and when

:21:14. > :21:18.you are paying over half your increased -- income in tax, that

:21:18. > :21:22.may be the case. There are lots of tax is I don't like, this is one of

:21:22. > :21:26.them, but I wouldn't support getting rid of its it tomorrow.

:21:26. > :21:29.think you are going around in circles. If you do that, how do you

:21:29. > :21:33.know you're not going to collect more money if people are doing the

:21:33. > :21:38.work? That is an important point and the Chancellor is looking at it.

:21:38. > :21:42.It is fair enough to have a review, we have said the OBR should do a

:21:42. > :21:47.review on this. 2.4 billion a year comes in from this, that is not

:21:47. > :21:51.insignificant. We would say, if you are going to give a tax break, to a

:21:51. > :21:54.temporary one on the VAT. You benefit from that, everybody

:21:54. > :22:04.benefits from that. The last time we did that, it's got the economy

:22:04. > :22:04.

:22:04. > :22:10.going again. Charlie's point is Is why an independent review is

:22:10. > :22:14.important. The last time we reduced the VAT for a temporary period, it

:22:14. > :22:17.had an impact. People started spending and we went out of

:22:17. > :22:22.precision, back into a growth recession -- position and that is

:22:22. > :22:26.what we are asking for. That is great, but we are talking about the

:22:26. > :22:31.50p tax. You have got to think about other people also. At the

:22:31. > :22:37.moment, that is a burden for people like us. Have you taken on people

:22:37. > :22:42.recently? Yeah. We are trying to expand. It is not stopping your

:22:42. > :22:46.business, is it? No, but what is the point of working... There is

:22:46. > :22:55.for a cervical point. Should the state be taking away over half? --

:22:55. > :23:04.there is a bizarre vocal point. -- a philosophical point. Danny

:23:04. > :23:11.Alexander said it was cloud cuckoo land. I totally disagree with you.

:23:11. > :23:18.I had worked that out myself. Five- year Italian bond yields have hit a

:23:18. > :23:21.record high and this crisis is not over. I think time for a seasonal

:23:21. > :23:27.spirit full but it seems to have crept into The Daily Politics

:23:27. > :23:30.office this week, against all of my clear demand and instructions. A

:23:30. > :23:34.foot high Christmas-tree has been spotted on one of our producers

:23:34. > :23:40.desks, I will bring that down. They must be excited about the upcoming

:23:40. > :23:44.Christmas lunch and karaoke party. Jo likes the karaoke! It is self-

:23:44. > :23:47.funding, in case you want to tweet and say we are spending your

:23:47. > :23:51.licence fee on this. We have already spent it, there is nothing

:23:51. > :23:54.left. If our Christmas giveaway is not enough to get you into the

:23:54. > :24:04.seasonal spirit, Adam has taken a look at how Westminster has been

:24:04. > :24:06.

:24:06. > :24:11.gearing up for this season of Christmas is coming to Parliament,

:24:11. > :24:17.our MPs are getting fat. In reality, it hasn't snowed, and in the

:24:17. > :24:21.Commons, there is a deficit of Christmas spirit. In the members'

:24:21. > :24:26.tea room, a week ago, they had a lot of Christmas decorations up,

:24:26. > :24:29.they had paper Christmas napkins out, and a lot of those have

:24:29. > :24:33.disappeared. Whether this is because the management decided that

:24:33. > :24:37.it was the wrong image, or whether as one of my more cynical

:24:37. > :24:43.colleagues thought, that some MPs had decided when everybody had gone

:24:43. > :24:48.to borrow them. Some are getting into the festive mood, like George

:24:48. > :24:53.Osborne, having actual fund with his sworn enemy, Santa. Well, Ed

:24:53. > :24:56.Balls dressed as Santa for a kids' party. It is all about belittle and

:24:56. > :25:00.Swanwick comes to the leaders Christmas cards our as it is all

:25:00. > :25:04.about the little ones when it comes to the leaders Christmas cards.

:25:04. > :25:08.There are only 11 shopping days to Christmas but that does not worry

:25:08. > :25:12.MPs and peers, because they have got their own good shop. The queue

:25:12. > :25:16.will be out the door by the end of the week. I am told that the

:25:16. > :25:24.bestseller is chocolates, closely followed by, surprise surprise,

:25:24. > :25:29.bruise. -- boos. I also managed to pick up a house of Lords baby grow.

:25:29. > :25:33.But there are a few Scrooges around. The Christmas box in the members'

:25:33. > :25:41.tea room comes out, with a great deal of perhaps on subtlety by the

:25:41. > :25:46.staff, who worked very hard to look We have embarrassing scenes as

:25:46. > :25:51.colleagues are queuing up to get their meals, of what somebody calls

:25:51. > :25:57.the soft trouble, and people say, I would love to put �5 in but I don't

:25:57. > :26:03.have money at present our as the People you can rely on for genuine

:26:03. > :26:07.Christmas people, the parliamentary choir. Sadly, I missed their

:26:07. > :26:13.concert, so what after back as I will have to make do with their

:26:13. > :26:16.podcast instead. -- so I will have to make do with their podcast

:26:16. > :26:20.instead. He is like that most of the time.

:26:20. > :26:26.Who better to talk about all things Christmas than the Lib Dem MP in

:26:26. > :26:30.our By Rick -- and party conference favourite, Don Foster. Since you

:26:30. > :26:34.have been bemoaning the fact you have not got a Christmas tree, a

:26:34. > :26:38.present for you. It is a real one. I thought Caroline was going to

:26:38. > :26:45.nick it! I have heard the rumours that your Christmas ukulele single

:26:45. > :26:49.isn't going ahead? It is staggering, every year I send out a spoof press

:26:49. > :26:54.raised about something daft, as a way of inviting local journalists

:26:54. > :26:57.and councillors to drinks. So many paper -- people fail to read to the

:26:57. > :27:04.bottom line and realise that it is a spiv, that they got all sorts of

:27:04. > :27:07.coverage, that we had to report it was not true. I am told that Little

:27:08. > :27:15.Mix took a contract out on you in case they got knocked off the

:27:15. > :27:18.Christmas number one spot! There is real concern! Are referred to Chris

:27:18. > :27:23.Pringle from ukelele maestro magazine, it should have given the

:27:23. > :27:27.clear -- I referred to pull up I Quote about the get that keeps on

:27:27. > :27:32.giving, to suggest that you give as a gift, membership to the Labour

:27:32. > :27:35.Party. That's very nice. How many gift memberships are you going to

:27:35. > :27:40.give this year? I am always actively looking to encourage

:27:40. > :27:47.people to join the Labour Party. I have to say, that's for life, not

:27:47. > :27:52.just for Christmas. I will take that, it is only 15 quid, you can't

:27:53. > :27:59.buy life for 15 quid? Not bad, a good deal. Is it going to be an

:27:59. > :28:03.austerity Christmas, or a goose as fat as ever? Our Christmas

:28:03. > :28:09.tradition is going to feed some elderly people lunches in Welwyn

:28:09. > :28:12.Garden City, for anyone who is watching. I will be there! Did you

:28:12. > :28:17.bring your ukulele with you? didn't, very deliberately, because

:28:17. > :28:21.I would have had to play it and you would have been very upset. We have

:28:21. > :28:26.only got a few seconds, there is a Christmas decoration thief loose in

:28:26. > :28:31.Westminster, haven't you seen it? No, I have one in my office, I am

:28:31. > :28:35.worried about this. I am going to give you the answer to the guess

:28:35. > :28:40.the year competition, it was 1987. You could probably tell by the

:28:40. > :28:46.terrible music. We are knocking down Christmas trees to print out