23/09/2012 Sunday Politics London


23/09/2012

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Good morning. Welcome to the new improved, extended and earlier

:00:41.:00:47.

Sunday Politics. Beware of the tax police, as Lib Dems gather in

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Brighton. Danny Alexander announces plans to crack down on anyone who

:00:52.:00:56.

has a home worth 1 million quid, and might not be paying the tax

:00:56.:01:04.

they should. The Chief Secretary joins us for the top story. Will we

:01:04.:01:09.

hear more about the wealth tax? Could it work and would it be good

:01:09.:01:15.

for the economy? Evan Harris and John Redwood go head to head. Time

:01:15.:01:21.

for a fresh crackdown on the jobs who will hurl abuse at the police -

:01:22.:01:27.

no sign yet as Andrew Mitchell hangs onto his job. We will ask

:01:27.:01:31.

Eric Pickles whether his posh colleague should get back on his

:01:31.:01:35.

bike and pedal are out of the Cabinet. In London - the Liberal

:01:35.:01:38.

Democrats rule out a third runway at Heathrow. I'll be talking to

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Nick Clegg about whether the expansion at Gatwick or Stanstead

:01:41.:01:51.
:01:51.:02:01.

is an option. With me throughout, the best political panel. They will

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be tweeting as if their careers depended on it throughout the

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programme, which they probably do. Nick what of the Guardian, Isabel

:02:22.:02:32.
:02:32.:02:35.

Oakeshot, and Janan Ganesh. Nick Clegg has been talking about the

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new idea to help young people on to the housing ladder. I can announce

:02:41.:02:43.

today the government will be doing something which hasn't happened

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before - we will be working out ways in which parents and

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grandparents who want to help their children by a property of their own,

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we will be allowing them to use their pensions to act as a

:02:57.:03:02.

guarantee so that their youngsters can take out a deposit and buy a

:03:02.:03:12.
:03:12.:03:13.

home. On the one hand you need a big pension pot to guarantee a

:03:13.:03:16.

deposit, so this would help the better-off, on the other hand they

:03:16.:03:22.

seem to be bashing the better off at every opportunity. For the issue

:03:22.:03:28.

for most young people is trying to raise a big deposit. When I first

:03:28.:03:32.

bought a property, we have to raise 5% and that was a struggle in

:03:32.:03:42.
:03:42.:03:42.

itself. Now you have to raise between 30,000-�50,000. Would your

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parents risk their pension pot on your deposit? I am not sure there

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was enough there. There has been so much talk about some kind of bloody

:03:53.:03:56.

on property or pensions to make things easier when it comes to

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buying property and they need to have something to show for that

:04:00.:04:06.

talk, but the practical difficulties, as we have seen with

:04:06.:04:11.

the proposed mansion tax, they are so owner as I am not convinced they

:04:11.:04:19.

will produce anything by 2015. parents are not like Nick Ross. If

:04:19.:04:27.

we can speak up for the Lib Dems, this is about aiming this at the

:04:27.:04:31.

squeezed middle. Those who do not have large amounts in a building

:04:31.:04:34.

society, but those who have modest assets and they would hope to draw

:04:34.:04:41.

some of those down for their children. The man behind this,

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Danny Alexander joins me now from the party's conference in Brighton.

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:04:56.:05:03.

Good morning. Let's start with this anti-affluence unit. There is a

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basic point that everyone should play by the rules. We have been

:05:10.:05:15.

investing more time and effort in making sure people can't engage in

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tax avoidance. Tax evasion is cracked down on more toughly even

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than before. Last year we announced the creation of these affluence

:05:26.:05:30.

units to look at the minority of people in that bracket whose

:05:30.:05:35.

affairs presenter risks to the taxman, if you like. Today we are

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seeing how HMRC have got on, and that has been very successful. They

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have brought in �44 million in the first year of that unit. They have

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said it for cast the net more widely, we can bring in more

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resource. It will pay at least 15 times the amount of money we put in,

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but it is targeting those people whose affairs are risky. It will

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not mean anyone who has a home over a million pounds will get enough,

:06:03.:06:09.

door from the taxman. If you have a house or other assets combined at

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more than a million, you will now become the subject of special

:06:15.:06:22.

scrutiny from the taxman - is that true? Or if your net worth is more

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than a million pounds, you will be in the population that the affluent

:06:25.:06:32.

unit is able to look at, but HMRC can identify particular groups and

:06:32.:06:35.

individuals where there are particular tax risks. For example,

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those with properties overseas. They will not be looking at every

:06:41.:06:46.

person in that group. They will be saying let's identify the areas

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where there are risks. Let's employ more experts in tax law and

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accountancy to really make sure those people are playing by the

:06:55.:06:59.

rules, paying the taxes they should be saying. The consequence of

:06:59.:07:03.

people who dodge the tax system is that those of us who play by the

:07:03.:07:08.

rules have to pay more tax as a result. Let's look at the sudden

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idea your party has unveiled today, that parents and grandparents can

:07:17.:07:23.

dig into their pension pot. You would need a pretty big pension.

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This is a subsidy to the better-off. I think there are a lot of people

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out there who already help their children with deposits. That

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happened to me when I bought my first home, but there are an awful

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lot of parents who don't have any cash to help their children get on

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the housing ladder. In many cases they might have built up a

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substantial pension pot, which they were -- will be able to release

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after pension age. Parents in those category can use a lump sum when

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they reach retirement age to guarantee part of the mortgage,

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precisely the helped their children need to get on the housing ladder.

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It is about fairness and making sure young people have the chance

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to get on the housing ladder. also about your mother and father

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having a big enough pension pot. Let's turn to the apology. We

:08:21.:08:31.
:08:31.:08:33.

haven't got much time. Tuition fees - Vince Cable says you warned Nick

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Clegg abolishing tuition fees was unaffordable. How did he respond?

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We had a debate about this as a party for many months running up to

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the election. The what did you tell him and how did he respond? We knew

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that this was an expensive policy. What we put in our manifesto was a

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graduated way... Mr Alexander, what did you tell him and how did he

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respond? I'm coming to that. I am saying that we were clear this was

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an expensive pledge, it would be difficult to afford under the

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financial circumstances, but as a democratic party where our party

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conference have a big role in shaping our manifesto and we

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decided to include that in the manifesto and sign up to that

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:09:40.:09:41.

pledge. What did you tell him and how did he respond? You after the -

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- filibustering. I don't remember the details of the conversation

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which took place quite a few years ago, but this was an expensive

:09:50.:09:55.

policy and it would be difficult to afford, and that is why we took the

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approach we did in our manifesto, phasing it in over a number of

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years. Under the financial circumstances, it was not

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affordable, and we made a pledge we could not keep. That is why he

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apologised. You signed the NUS pledge, was that before or after

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your warning that it was unaffordable? For it is something I

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regret, I wish I hadn't done it because it was not a promise we

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could keep. How do already said it was unaffordable when you signed

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it? I signed it during the election campaign. The discussions you are

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referring to took place way before that campaign, but having agreed to

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include this policy in the manifesto I followed through that

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in the way every other Liberal Democrats MP did. We will let you

:10:46.:10:56.
:10:56.:10:57.

get back to the conference in Brighton. Thank you. Mystery still

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surrounds exactly what the chief whip, Andrew Mitchell, said to

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police officers on Wednesday night after they refused to let him ride

:11:05.:11:11.

his bike through the main gate at Downing Street. He accepts he gave

:11:11.:11:14.

them a near full and there are reports this morning that he now

:11:14.:11:18.

one admits to swearing at them, but he still denies he called the

:11:18.:11:28.
:11:28.:11:30.

offices morons and plebs. Can he survive? If it is established he

:11:30.:11:37.

used that word or swore, I think he is toast. The toxic nature of the

:11:38.:11:47.
:11:48.:11:49.

word pleb, and secondly because he lied. If it is established those

:11:49.:11:53.

were the words used, I think he will be gone. It is difficult for

:11:54.:12:00.

that to be established. We probably have two police officers. Yes, but

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it depends on them publicise and that, and you can imagine the

:12:05.:12:10.

police dropping it if it is too dangerous. David Cameron could have

:12:10.:12:16.

done with this like a hole in the head. Nothing substantially new has

:12:16.:12:20.

emerged, and it is one person's word against another, and we still

:12:20.:12:24.

don't know who the police then is. I think this story is running out

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of steam now. Do you agree with that? It is dreadful because David

:12:31.:12:41.
:12:41.:12:42.

Cameron has spent 10 years trying to detoxify his party, and now this

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word has been used. I think Andrew Mitchell has got to draw a line

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under this. In the old days, Chief whips did not appear on television.

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He has got to face the camera and say what he is allowing his friends

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to say, which is yes I lost my rag and I swore, but I did not use the

:13:01.:13:11.
:13:11.:13:12.

word pleb. There are some people who find it hard to believe he used

:13:12.:13:18.

that word. Has he got previous? apparently it is not the first time.

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For remember the big Raul about planning reform, the one that

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ground on for two years until the U-turn in March? The row is back.

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Some time in summer, the Chancellor and Prime Minister decided they

:13:36.:13:42.

wanted more. The rumblings of discontent have carried on. David

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Cameron and George Osborne have demanded planning regulation must

:13:45.:13:49.

not hold back growth. The Prime Minister said he was frustrated by

:13:49.:13:53.

the current system and that he was determined to cut through the

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dither that holds this country back. One plan is to allow householders

:13:58.:14:04.

to build bigger extensions without planning permission. This week the

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council decided to block what they said was a very foolish proposal,

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and there could be more building on green belt land provided

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replacement land is found instead. This weekend attempt to focus the

:14:18.:14:21.

government on growth have been sidelined by the row over the Chief

:14:21.:14:26.

Whip's outburst at police officers in Downing Street. Andrew Mitchell

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is accused of swearing at the police, which he now admits. The

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Police Federation insists that police officer's notebooks confirm

:14:40.:14:44.

that and that he should resign. Eric Pickles joins me for the

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:14:55.:15:00.

Eric Pickles, let's start with Andrew Mitchell and go on to

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planning. Do you accept either the police or the Chief Whip is lying?

:15:05.:15:10.

It would be wrong to say either party is lying. But what is clear,

:15:10.:15:16.

Andrew Mitchell, used ungallant language which he regrets, and

:15:16.:15:23.

which he has apologised both to the police and the Prime Minister.

:15:23.:15:28.

the Metropolitan Police Federation who represents the police officers

:15:28.:15:34.

has been clear, they said police notebooks confirmed Mr Mitchell

:15:34.:15:39.

swore at them and use the word plebs. If it is established, will

:15:39.:15:45.

he have to go? Mr Mitchell has apologised. But not for using the

:15:45.:15:50.

word pleb. If he did, would he have to go? Mr Mitchell is clear he did

:15:50.:15:55.

not use the word pleb. The somebody who has been a member of Parliament

:15:55.:15:59.

for 20 years, sometimes in difficult times, I have always been

:15:59.:16:03.

grateful for the police and the protection they offer, both for the

:16:03.:16:08.

Palace of Westminster and Downing Street. His it likely it is the

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sort of work, a rugby educated at Mr Mitchell would use, rather than

:16:16.:16:20.

one big police officer would fabricate? At cannot recall Mr

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Mitchell and the times I have been with him every using such a word.

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So am of his colleagues have told us it is the sort of language that

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rings true of Mr Mitchell. Is this the sort of word he would use?

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has not used it in my presence. I am very proud myself to be a pleb.

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Do you accept no Cabinet minister can call the police plebs and stay

:16:47.:16:53.

in the Cabinet? No Cabinet minister can abuse the police. No Cabinet

:16:53.:16:58.

minister should lose their temper with the police. I don't believe

:16:58.:17:04.

given Andrew Mitchell, has apologised, given... He has not

:17:04.:17:09.

apologised for the workload. Can a Cabinet minister called the police

:17:09.:17:13.

plebs and survive? The Prime Minister has given him a public

:17:13.:17:18.

dressing-down. He should be given the opportunity to start the

:17:18.:17:22.

process of being a good Chief Whip. Who do you think the public are

:17:22.:17:29.

more likely to believe? At Tory politician nicknamed Thrasher

:17:29.:17:34.

because of the way he treated people are public school, or a

:17:34.:17:38.

couple of policemen? What happened was wrong. It shouldn't have

:17:38.:17:44.

happened. Mr Mitchell accepts it shouldn't have happened. Recognised

:17:44.:17:48.

he used, both in terms of his behaviour and language, was

:17:48.:17:53.

inappropriate. This is the poll from the Mail on Sunday this

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morning. The question was, should Andrew Mitchell resigned question-

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marks us -- 67% yes, 22% said No. They want him to go. I don't

:18:06.:18:12.

believe someone should Duke -- lose public office because they used

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inappropriate words and lost her temper. He has made a good start of

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being Chief Whip in terms of rebuilding the party and re-

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establishing the office. It could not have come at a worse time.

:18:28.:18:33.

one player to another, it does this make you embarrassed and angry? --

:18:33.:18:43.
:18:43.:18:43.

won play up to another. I think Mr Mitchell is angry. Are you not

:18:43.:18:49.

angry as well? In the power of forgiveness, and some want to be

:18:49.:18:55.

able to apologise and be able to move on. This is Brian Binley,

:18:55.:19:00.

Conservative MP. He says, Andrew Mitchell's actions strengthen the

:19:00.:19:03.

impression that those at the top of the party are a bunch of elitists

:19:03.:19:09.

who think they are better than others. I am not defending the fact

:19:09.:19:14.

Andrew Mitchell lost his temper... You have made that clear, but what

:19:14.:19:23.

do you say to the point that Brian Binley makes. I am not a public

:19:23.:19:28.

school boy, I'm not a millionaire and there are lots of people sat

:19:28.:19:33.

around that table... We should move away from this class ridden

:19:33.:19:38.

critique. We had the man on a bicycle who lost his temper.

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Whether he was a millionaire or not, you shouldn't have lost his temper.

:19:43.:19:49.

He is an Boris Johnson write about how people whose work at the police

:19:49.:19:55.

should be treated? This is what the mayor of London had to save.

:19:55.:20:02.

people swear at the police, they must expect to be arrested.

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APPLAUSE. Not just because it is wrong to

:20:09.:20:15.

expect officers to ensure profanities, it is about the

:20:15.:20:21.

experience the culprits. If people feel there are no comebacks, no

:20:21.:20:25.

boundaries and no retribution for the small stuff, they will go on to

:20:25.:20:30.

commit worse crimes. If you swear at the police you should have your

:20:30.:20:34.

collar felt unless you are the Chief Whip? We give discretion to

:20:34.:20:39.

police officers to determine charges along with the Director of

:20:39.:20:42.

Public Prosecutions. I'm not a word the police officers felt it was

:20:42.:20:47.

necessary. Boris Johnson was speaking before this event, that

:20:47.:20:52.

was last year at the party conference. The Police Federation

:20:52.:20:57.

are furious. They are calling for Mr Mitchell's resignation. How did

:20:57.:21:02.

the Tory party end up swearing at the police and getting on the wrong

:21:02.:21:08.

side of them? Mr Mitchell regrets what he said. He has apologised.

:21:08.:21:12.

You have said that 10 times. have asked me the same question 10

:21:12.:21:22.
:21:22.:21:23.

times. I thought I would be consistent. In not answering them?

:21:23.:21:27.

Consistent in the. Mr Mitchell is very sorry, and we should move on.

:21:27.:21:31.

What about the national planning thing? It was a remarkable success,

:21:31.:21:36.

you got the backing of conservationists and housebuilders.

:21:36.:21:40.

When the George Osborne tell you it wasn't enough and you have to go

:21:40.:21:45.

further? We have not changed that, the national planning policy

:21:46.:21:49.

framework remains. When we made the statement we said we would look at

:21:49.:21:54.

a number of procedural changes to the planning system, and this is

:21:54.:21:59.

part of a process. I wrote to local authorities earlier this year

:21:59.:22:05.

saying I would like them to look at what we call section 106 agreement.

:22:05.:22:12.

40% of them did. Some of them don't like it. This is the leader of

:22:12.:22:16.

Richmond council's, we don't think people should be putting up a

:22:16.:22:20.

neater extensions willy-nilly. We have planning rules and we believe

:22:20.:22:26.

they need to be adhered to. What are you going to do with them?

:22:26.:22:32.

And surprised at his reaction, considering we said we would

:22:32.:22:37.

consult and considering we also said existing safeguards to protect

:22:37.:22:42.

neighbours would be there. Let me give you a quick example - if you

:22:42.:22:47.

have a terraced house and you have a seven metre garden meant. In the

:22:48.:22:52.

present rules you can move out three-metre us or 50% of the garden,

:22:52.:22:57.

which ever is the smaller amount. Under these rules you can move

:22:57.:23:03.

about six metres or 50%. So the difference is half a metre. What

:23:03.:23:06.

will you do with councils, including from your own party who

:23:06.:23:12.

say, we don't want to do this. 54% of the public were behind them,

:23:12.:23:16.

they said the rules will lower the quality of Designed buildings and

:23:16.:23:23.

houses? I don't think it will. It will allow people who want to have

:23:23.:23:27.

their parents live with them, or maybe want to take care of someone

:23:27.:23:32.

within their family, who has particular needs. They might want

:23:32.:23:38.

to put up a conservatory. I recognise it is ironic that on the

:23:38.:23:44.

date I announced this, the Labour Party want to tax this aspiration.

:23:44.:23:49.

The planning officer societies say, if people can build big things in

:23:49.:23:56.

their back garden without permission, it is likely

:23:56.:24:01.

neighbourhood disputes will increase? I am surprised the

:24:01.:24:05.

professionals are saying this before they had even seen the plans,

:24:05.:24:12.

before they have even seen what we are doing. We made it clear

:24:12.:24:16.

existing protection for neighbours will remain. We made it clear it

:24:16.:24:21.

will never be more than half the side of the garden or the extent we

:24:21.:24:27.

allow, whichever is the smaller amount. It is allowing people to

:24:27.:24:30.

extend a single story of her home. It happens all over the country,

:24:31.:24:34.

all of the time and it will make a marginal difference, but an

:24:35.:24:38.

important difference. councillors say they don't want to

:24:38.:24:43.

go this way, and voters don't want to go, since you are meant to

:24:43.:24:47.

believe in localism, will you leave local councils to go of their own

:24:47.:24:52.

way on this? It is the other way round. If they decide not to do

:24:52.:24:59.

this, under Article four arrangement. A member of the public

:24:59.:25:04.

can seek damages against them, so it will be the public taking on the

:25:04.:25:09.

councils if they go against. We will be very reasons, civilised and

:25:09.:25:15.

straightforward. You have repeatedly promised to stop people

:25:16.:25:23.

being fined for putting things out on the wrong day. Why were 3197 of

:25:23.:25:29.

these fines issued in 2011 and 2012? Watch this space, an

:25:29.:25:36.

announcement is due. What will it say? Very soon, and when we

:25:36.:25:41.

announce it, it will be an honour to appear on your fine programme.

:25:41.:25:46.

We will take you up on it. Another Lib Dem Conference and

:25:46.:25:51.

another tax to catch the affluence. The party who brought you the

:25:51.:25:56.

mansion tax and the tycoon tax is back with the mansion tax. What is

:25:56.:26:05.

it and will it work? Here is Giles Dilnot.

:26:05.:26:08.

It says something about our political and financial times we

:26:08.:26:11.

live in that "tax the rich" has gone from something people with

:26:11.:26:13.

placards shouted in the street to something seriously discussed in

:26:13.:26:16.

Government Nick Clegg opened the Lib Dem Conference saying he wanted

:26:16.:26:19.

"Lower taxes on work, more on unearned wealth to reward people

:26:19.:26:29.
:26:29.:26:30.

who put in a proper shift, not those who sit on a fortune". A

:26:30.:26:34.

Wealth Tax has been his theme for weeks, saying he won't accept �10

:26:34.:26:40.

billion of extra cuts coming from Welfare alone. He's long-called for

:26:40.:26:43.

a mansion tax on million pound properties but at the last year's

:26:43.:26:47.

Budget, George Osborne, walked all over that idea. Now it seems the

:26:47.:26:50.

Lib Dems are ready to block any Tory welfare cuts unless they get

:26:50.:26:57.

that wealth tax. Simply read, the Lib Dem tune is 'Money's Too Tight

:26:57.:27:01.

NOT to Mansion'. Economic growth hasn't come out anywhere near as

:27:01.:27:05.

well as expected. Growth is worse, tax revenues are down, spending is

:27:05.:27:10.

up. You need to do more to get rid of the deficit, that's why a year

:27:10.:27:12.

ago we heard there would be significant additional cuts in the

:27:13.:27:16.

next Parliament in order to meet the Fiscal Rules. The Economy has

:27:16.:27:22.

done even worse again over the last year. We're probably going to hear

:27:22.:27:25.

more this December about more cuts certainly in the next Parliament if

:27:25.:27:29.

not this one. We know George Osborne favours a two-year benefits

:27:29.:27:35.

freeze, what's the Lib dems price for that? Exactly what the Liberal

:27:35.:27:39.

Democrats are talking about, we don't know. But for most people the

:27:39.:27:42.

key thing is does this involve a tax on their property, the house

:27:42.:27:45.

that you live in, and does this include a tax on your pension?

:27:46.:27:49.

That's where nearly all the wealth that people have sits and that's

:27:49.:27:51.

the biggest economic and political question surrounding this issue.

:27:51.:27:54.

tend to feel in today's politics that welfare cut and taxing the

:27:54.:27:59.

rich are politically popular, but is that true? To a limited extent

:27:59.:28:02.

yes, unfortunately even if they do manage to get some taxes on the

:28:02.:28:04.

wealthy increased against the wishes of some parts of the

:28:04.:28:08.

Conservative Party. But it goes alongside a further �10 billion of

:28:08.:28:12.

cuts that are being thought about in the Welfare Bill. It's very

:28:12.:28:14.

unlikely that the soft-left voters who've deserted the Liberal

:28:15.:28:19.

Democrats would come back to them if you look at the polling evidence.

:28:19.:28:23.

The rich are taxed the wealthiest 1% of income tax payers pay 30% of

:28:23.:28:28.

all income tax. But any taxation of the rich risks, as many

:28:28.:28:31.

Conservatives argued when calling for the removal the 50p top rate,

:28:31.:28:34.

stifling the very incentive to invest and spend and flow of money

:28:34.:28:44.
:28:44.:28:53.

you were trying to create. Former Lib Dem MP, Evan Harris and

:28:53.:29:02.

John Redwood go head-to-head. Evan Harris, Nick Clegg said to the

:29:02.:29:06.

BBC this morning there would be more measures to tax at the wealthy

:29:07.:29:10.

this side of the election. But he wouldn't tell us what they are,

:29:10.:29:17.

what should they be? It should be a range of things. A clampdown on tax

:29:17.:29:21.

avoidance, which is mainly by better off people who can afford to

:29:21.:29:26.

explore the schemes. Tax on property, the value of properties

:29:26.:29:33.

over 2 million. Your property cannot go overseas, it is fixed and

:29:33.:29:37.

that is sensible. It cannot be right to have a �3 million mansion

:29:37.:29:43.

on paying the same council tax as a family house next door. I would

:29:43.:29:49.

like to see more taxes on other wealth, because if we sit to this

:29:49.:29:54.

deficit reduction plan... Give me an example? I think things are

:29:54.:30:00.

being worked on. I'm not in Government. On that you part of the

:30:00.:30:05.

federal policy committee? We have a tax Commission looking to what we

:30:05.:30:09.

will put in our manifesto. I am looking at this side of the

:30:09.:30:14.

election? Even the Liberal Democrats, one person does not make

:30:14.:30:19.

the tax policy. We won't accept, and Nick Clegg made this clear,

:30:19.:30:23.

should there be any more demands on the poorest in society, including

:30:23.:30:33.
:30:33.:30:37.

the working poor who get benefits, What is wrong with asking wealthy

:30:37.:30:41.

to make a considerable contribution? They are paying less

:30:41.:30:46.

tax because they have good ways of getting away from paying the tax

:30:46.:30:51.

and not bothering at all. We need to be smart in the way we tax the

:30:51.:30:58.

rich, tax them at a level in a way which means they stay and play.

:30:58.:31:07.

What about tax wealth? Of course in inheritance tax, they have

:31:07.:31:13.

introduced 7% on stamp duty, but revenues are falling at the top end.

:31:13.:31:18.

The top 1% of income tax earners pay 28% of the total tax at the

:31:19.:31:25.

moment. I might even agree with Mr Harris that we would like that to

:31:25.:31:31.

be higher. In America they pay 37% because the rate is lower. On the

:31:31.:31:37.

Labour, the gap between the rich and poor got wider. If we recognise

:31:37.:31:43.

the inequalities that continued to grow, then the wealthy, who own

:31:43.:31:47.

much more than the percentage they pay in tax, should pay more. That

:31:47.:31:56.

is wrong the wealthiest should pay less than the poor. While did you

:31:56.:32:01.

caught the top margin? That was wrong. I don't think the case that

:32:01.:32:06.

John has made was right and that is the first question - when it raised

:32:06.:32:12.

more? If you asked the academics what the evidence based was for

:32:12.:32:17.

that, that is weak. I think the economic case is the first thing.

:32:17.:32:21.

What we are having here is a discussion about what the

:32:21.:32:25.

differences will be at the next election, and I say bring it on. I

:32:25.:32:30.

don't mind if John Redwood says vote Conservative and we won't be

:32:30.:32:35.

tough on the wealthy, and the Liberal Democrats are saying the

:32:35.:32:40.

wealthy should pay their fair share. We know how to tax the rich in a

:32:40.:32:45.

way that gets more revenue from them, that is the smart thing to do.

:32:45.:32:50.

I am interested in what happens between now and you write in your

:32:50.:32:57.

manifesto, because we have your side saying we made do some of that

:32:57.:33:02.

but we want more tax on the wealthy. The deal will have to be done.

:33:02.:33:08.

course - each Budget is a deal, and so far we have been following the

:33:08.:33:13.

Liberal Democrats approach of big increases in current spending in

:33:13.:33:15.

the first three years of the coalition instead of cutting

:33:15.:33:19.

spending, and we have been following their policy of

:33:19.:33:22.

increasing tax rates. The higher tax rates are bringing in less

:33:22.:33:31.

revenue. 20% of the deficit reduction is coming from spending

:33:31.:33:38.

cuts. No, it is not. Have you looked at the numbers? Spending is

:33:38.:33:44.

up by more than 50 billion so far. The deficit reduction plan involves

:33:45.:33:50.

billions of effective cuts and the ratio over Parliament's is 70 - 30.

:33:50.:33:56.

We don't think there should be any more cuts affecting the poorest

:33:56.:34:01.

part of the community until the wealthiest pay their fair share.

:34:01.:34:05.

don't want cuts on the port either but this government has made a big

:34:05.:34:09.

increase in public spending, which went up by more than 5% in the

:34:09.:34:17.

first year. The figures in August showed it going up by 4.4% over the

:34:17.:34:21.

most recent year, but because the tax rates when talk so much by

:34:21.:34:25.

Labour, instead of collecting more revenue they are collecting less

:34:25.:34:34.

revenue. There is a clear differentiation between the Liberal

:34:34.:34:38.

Democrats on the Conservatives, both now and that the next election.

:34:39.:34:44.

Do you agree current spending has gone up? The art is another debate.

:34:44.:34:50.

It is good to see such harmony in coalition politicians. It is just

:34:50.:34:56.

after 11:35pm. You are watching Sunday Politics., not in 20 minutes,

:34:56.:35:02.

more from the best-connected panel in political television. Well, they

:35:02.:35:12.
:35:12.:35:21.

Hello and welcome to the London section of Sunday Politics. Coming

:35:21.:35:24.

up later - the Lib Dems have this morning reinforced their opposition

:35:24.:35:29.

to new runways at Gatwick, Heathrow and Stansted, but might there

:35:30.:35:32.

leader be prepared to take them down a different flight path?

:35:32.:35:37.

Joining me this morning, Nick de Bois and Tom Brake, who has just

:35:37.:35:44.

joined the government of deputy leader of the House of Commons. As

:35:44.:35:49.

we have been hearing, the Lib Dems want focus on the tax affairs of

:35:49.:35:53.

people with assets of more than a million pounds through a beefed-up

:35:54.:35:58.

anti- Affluence Unit at the Inland Revenue. This morning they have

:35:58.:36:04.

another target in their sights, second homeowners, so that councils

:36:04.:36:12.

can crack down on them. This person's decision to buy a second

:36:12.:36:17.

home can prove controversial... But according to some, Londoners are

:36:17.:36:27.

victims. This is the office of Simon Hughes, he says in inner

:36:27.:36:29.

London constituencies like this, second homes are a very serious

:36:29.:36:34.

problem, pushing up the property prices and forcing locals out of

:36:34.:36:38.

the area. So this week at conference, he will be pushing for

:36:38.:36:41.

the Lib Dems to adopt a policy giving local councils the power to

:36:42.:36:46.

designate certain properties as off-limits for second-home owners,

:36:46.:36:51.

but there is a snag. If the council don't want to use the powers,

:36:51.:36:58.

nothing will happen. In Simon Hughes' borough of Southwark, they

:36:58.:37:02.

are happy to see second homeowners coming in and they are not

:37:02.:37:07.

interested in the Lib Dem proposal. How do you go about policing it?

:37:07.:37:12.

What about the foreign investor who uses a front man to buy or acquire

:37:12.:37:18.

the property? Who will be policing that? How can councils do this when

:37:18.:37:21.

there are such a drain on our resources?

:37:21.:37:26.

Sunday Politics spoke to the 12th in a London authorities and City

:37:26.:37:36.
:37:36.:37:39.

Hall. I only Lewisham expressed any desire to use the powers. At the

:37:39.:37:44.

heart of this debate is the issue of foreign owners, the idea that

:37:44.:37:48.

people from abroad Bar by Inner London crash pads and leaving them

:37:48.:37:53.

empty, whilst everyone else faces a desperate shortage of housing. Last

:37:53.:37:59.

year, 60% of new build houses went to foreign buyers. To put that in

:38:00.:38:03.

context, it is equivalent of the Government's the fording housing

:38:03.:38:07.

budget for the whole of England over four years. Although these

:38:07.:38:15.

figures are often quoted, There is no data that demonstrates this

:38:15.:38:21.

money is being spent on cushy London homes like this. This flat

:38:21.:38:25.

is right in the middle of Simon Hughes' constituency, and was

:38:25.:38:32.

bought by a foreign investor. Rather than sitting empty, it is on

:38:32.:38:34.

the market and available to rent. According to the agents renting the

:38:34.:38:38.

property, there would be almost no building in London if it was not

:38:38.:38:44.

for the foreign influx of cash. Banks are not very willing to lend

:38:44.:38:48.

money to developers, so they have to sell them before they have built

:38:48.:38:52.

them. The only people in the market with money to buy those properties

:38:52.:38:59.

are the Asian investors. proposal does not appear to be a

:38:59.:39:07.

hit with their coalition partners either.

:39:07.:39:16.

Let's hear from Tom Brake and Nick de Bois in a moment, but first

:39:16.:39:22.

Simon Hughes can join us from Brighton. How will you do this? How

:39:22.:39:29.

would it work? Step back for one second, what is the issue in London

:39:29.:39:36.

and surrounding London - the issue is we are desperate for homes,

:39:37.:39:43.

affordable homes, rented housing association homes, and homes to buy.

:39:43.:39:47.

The big challenge, worse than any other part of that country.

:39:47.:39:53.

Secondly, the gap between peoples in comes is greater than anywhere

:39:53.:39:57.

else, and saying step back and let the market sort it out is not an

:39:57.:40:02.

answer. We need to think imaginatively about what to do. The

:40:02.:40:06.

proposal could be done across London by the mayor of London,

:40:06.:40:11.

designating the areas where the pressure on prices is accentuated

:40:11.:40:15.

by the fact that a lot of the sales are going to foreign investors who

:40:15.:40:19.

are paying much higher prices, forcing up the cost of housing in

:40:20.:40:25.

the market. If we tried to make sure that the homes for sale were

:40:25.:40:29.

for people to live in, so the people who were spending the money

:40:29.:40:34.

would be spending to live in them, it takes out a whole range of

:40:34.:40:39.

people whose only interest is in investment, and it would bring the

:40:39.:40:44.

house prices down. I don't buy the arguments that it is technically

:40:44.:40:48.

difficult made by the Labour leader of Southwark Council, who has a

:40:48.:40:53.

vested interest in opposing things that I say because we are in a

:40:53.:40:59.

contest. We have got to have some imaginative solutions. You set

:40:59.:41:04.

designating areas - could you designate individual apartments?

:41:04.:41:09.

That is the first question, but the second question is how can you

:41:09.:41:17.

enforce this? Firstly, we designate areas already in housing in London.

:41:17.:41:21.

Rent is fixed according to different designations called broad

:41:21.:41:26.

market rental areas. It is well used by the land valuation people

:41:26.:41:33.

and councils and so on so that is not difficult. How do you prove

:41:33.:41:38.

someone is using somewhere for a second home? It is very easy.

:41:38.:41:43.

Firstly you discover who the owner is, that is not difficult because

:41:43.:41:53.
:41:53.:41:53.

it is a public requisite to know that, and they signed a document to

:41:53.:41:57.

prove they live in it. People are told when they buy that they have

:41:57.:42:01.

to buy it for their own use, and if they don't they will be committing

:42:01.:42:09.

an offence, and by definition you have a self policing the -- self-

:42:09.:42:13.

policing system which can be backed up by the authorities. We also have

:42:13.:42:18.

to build more affordable homes, use tax incentives to get land release,

:42:19.:42:24.

stop developers sitting on land which has planning permission, and

:42:24.:42:27.

do the sort of things the government have announced in the

:42:27.:42:31.

last couple of months, which is put more money in the kitty so they can

:42:31.:42:35.

be borrowing for homes. We have got to encourage housing associations

:42:35.:42:39.

by giving them security for their funding so there is a lot of things

:42:39.:42:44.

to do. This is the way for high- pressure areas like London, where

:42:44.:42:49.

you could take heat out of the market and bring the prices down.

:42:49.:42:57.

Thank you. Let's test those ideas firstly with Nick de Bois. Does

:42:58.:43:03.

this seem like a runner for you? is well-intentioned, but crackers.

:43:03.:43:07.

The fact that councils will have to be doing work to enforce this and

:43:07.:43:12.

their reaction is very telling - the reality is how do you determine

:43:12.:43:16.

between someone who was buying a property from abroad and renting it

:43:16.:43:23.

on the market? It is still a place for people to live. Companies buy

:43:23.:43:28.

them so employees can come and live in them. Who will sign the form

:43:28.:43:33.

then? Sometimes they are transient employees. It is not a solution to

:43:33.:43:39.

the housing crisis. Tom Brake, just joining the coalition government,

:43:39.:43:43.

is this one you will want to bang away at straight away? For there is

:43:43.:43:48.

a problem with affordable housing and this could make a contribution.

:43:48.:43:52.

Lewisham expressed an interest in using this, and it may well be that

:43:52.:43:58.

if this was on the table, a tool that councils can use, or the local

:43:58.:44:02.

authorities in London may want to do the same. Do you see any

:44:02.:44:08.

difficulties with it? Clearly any proposal will not be completely

:44:08.:44:13.

straight forward, but Simon set out how this could be enforced. It is a

:44:13.:44:17.

number of one of a possible number of measures that money to implement

:44:17.:44:23.

in London to deal with the housing crisis. Could you see people being

:44:23.:44:28.

penalised or prosecuted for having a second home? I can't see it and

:44:28.:44:33.

the telling thing is that it will be optional for the council's so it

:44:33.:44:37.

is hypothetical, but it is a state intervention that worries me we

:44:37.:44:42.

will end up with different blocks, creating an artificial intervention

:44:42.:44:46.

rocket is not solving the problem. Good intervention would be with the

:44:46.:44:50.

idea that we can give discounts for selling off council housing stock,

:44:50.:44:54.

and different from the past so people buy their council houses and

:44:54.:45:00.

that money is released to buy another house. For another day.

:45:01.:45:05.

Thank you. How to maintain Britain's global hub status in this

:45:05.:45:10.

guise is an issue back on the agenda. For the Lib Dems it opens

:45:10.:45:13.

up an issue they thought they had shelved under the terms of the

:45:13.:45:18.

coalition agreement, but the Conservatives ruled out additional

:45:18.:45:28.
:45:28.:45:32.

The Prime Minister used a Cabinet reshuffle this month to make the

:45:32.:45:38.

Transport Secretary, Justine Greening, and opponents of airport

:45:38.:45:48.
:45:48.:45:52.

But the London mayor, Boris Johnson, went on the attack warning there

:45:52.:45:56.

was only one reason to move Justine Greening, and that was to expand

:45:56.:46:01.

Heathrow airport. The Prime Minister has set up a Commission to

:46:01.:46:05.

find a consensual way forward. An interim report will look at the way

:46:05.:46:11.

of using existing one raise and maintain the UK's global hub status.

:46:11.:46:17.

The final report won't be delivered until 2015, so any decision will be

:46:17.:46:22.

for the next Government. Well, this morning the Lib Dems

:46:22.:46:25.

supported a motion to rule out new runways at Heathrow, Stansted and

:46:25.:46:35.
:46:35.:46:35.

Gatwick. My Conservative colleagues at the departments for Transport,

:46:35.:46:40.

Justine Greening and Theresa Villiers were robust in defending

:46:40.:46:45.

aviation policy, and resisting a third runway at Heathrow. How

:46:45.:46:48.

unfortunate but should have been removed at the last reshuffle,

:46:48.:46:51.

dispatched to look after the developing world and Northern

:46:51.:46:56.

Ireland, respectively. When I spoke to the Deputy Prime Minister, Nick

:46:56.:46:59.

Clegg, earlier this week he was quick to rule out expansion at

:46:59.:47:07.

Heathrow, but he is not now ruling out new runways elsewhere. I am

:47:07.:47:12.

against Heathrow expansion. I always have been and I cannot

:47:12.:47:18.

envisage any circumstances in which I would change my mind. My home in

:47:18.:47:22.

London happens to be under the flight path and I think the

:47:22.:47:26.

proposals don't stand up to the scrutiny. It would be a sticking-

:47:26.:47:33.

plaster solution. The runway fill up very quickly and before you know

:47:33.:47:41.

it we would be looking at a 4th and 5th runway. Do you rule it out?

:47:41.:47:47.

do at Heathrow. The Independent Commission has a wider remit to

:47:47.:47:51.

look at other alternatives. What happens if that Commission finds

:47:51.:47:56.

the preference but the best thing to do is expand Heathrow? I am not

:47:56.:48:00.

going to second guess what the Commission will come out with.

:48:00.:48:05.

There is no evidence at all that the only long-term solution to the

:48:05.:48:09.

challenges of the aviation sector in the UK, is to plaster and

:48:09.:48:13.

additional stretch of west London with Tarmac that will fill up with

:48:13.:48:18.

aeroplanes in a few short years. Were it to do that, would you

:48:18.:48:23.

prepare to state in Coalition or be in Coalition with a party which

:48:23.:48:29.

supported that third runway expansion? You were trying to lure

:48:29.:48:36.

me into a minefield of what if questions. Would you abide by the

:48:36.:48:41.

Commission? This is very clear, I see what you mean. The Commission

:48:41.:48:45.

can come up with any recommendations it wishes which it

:48:45.:48:49.

will submit to the three party leaders. It is for the party

:48:49.:48:54.

leaders to decide how that analysis from the Commission will affect

:48:54.:48:59.

their manifesto. As far as our manifesto is concerned in 2015, we

:48:59.:49:04.

will repeat that we have seen no analysis which in any way alter has

:49:04.:49:10.

argued that a third runway is not a long-term answer to Britain's

:49:10.:49:16.

aviation needs. Do you rule out expansion, new runways at Gatwick

:49:16.:49:19.

and Stansted? I want the Commission to look in the round at this issue

:49:20.:49:25.

of how you create, in the long term, not in the next 10 years, but 30,

:49:25.:49:32.

40, 50 years, this have connection to Asia, Latin America and so on.

:49:32.:49:36.

There are so many different proposals that people think you can

:49:36.:49:40.

join Birmingham with Heathrow, create a new harbour some were up

:49:40.:49:45.

the M1. So you personally would consider a more runways at

:49:45.:49:52.

Stansted? Personally, I think if there are options which just don't

:49:52.:49:56.

require additional capacity in the South East, but maybe mean

:49:56.:50:00.

additional capacity elsewhere, of course it is stuff we will look at.

:50:00.:50:06.

You have got to be driven by the evidence. So that is all clear. Tom,

:50:06.:50:11.

why don't you tell me personally what your hunch might be, where we

:50:11.:50:16.

could be in three years, way you think there should be a hub airport.

:50:16.:50:20.

We know you have been consistently opposed to Heathrow expansion, so

:50:20.:50:25.

what is the answer? You are inviting me to second guess what

:50:25.:50:28.

the Commission is going to be doing over the next three years. I am not

:50:28.:50:34.

going to do that. What we want the Commission to do is look at this in

:50:34.:50:39.

the widest way possible, to take into account of course Aviation,

:50:39.:50:43.

the need for runways and airport, but also to look at sustainability

:50:44.:50:49.

aspects and emissions. I don't want you to second guess that because

:50:49.:50:54.

the Commission says let's speak to the experts. You have not come to

:50:54.:50:58.

this recently, you have looked at it over many years. What is your

:50:58.:51:04.

instinct? Your leader does not feel averse or against Stansted. Do you

:51:04.:51:08.

want it to be Birmingham or do you like Boris Johnson's estuary

:51:08.:51:14.

airport? We made it clear at the conference there is no need for

:51:14.:51:20.

runways in the south-east. Now? There is capacity at those airports,

:51:20.:51:25.

there is capacity at Stansted, Luton and Gatwick. Heathrow cope

:51:26.:51:29.

with almost 50% additional passengers without any extra

:51:29.:51:36.

flights during the Olympics. should they not be a hub airport?

:51:36.:51:39.

Short term, we have the capacity and we should use it more

:51:39.:51:44.

effectively. There is going to be substantial growth in aviation,

:51:44.:51:47.

something like 60% will be allowed and stay within the carbon

:51:47.:51:53.

emissions cap. Longer term we do need to look at the issue of a hub

:51:53.:51:57.

airport, and we are hoping the Commission will come up with

:51:57.:52:02.

sensible suggestions were it could be located. Nick, are you someone

:52:02.:52:08.

who could live with and support Heathrow expansion? First of all I

:52:08.:52:13.

support airport expansion, the case has to be in the south-east. We do

:52:13.:52:18.

more trade with those countries where we have direct airport links.

:52:18.:52:22.

Frankfurt, Amsterdam, they are winning hands down and so we need

:52:22.:52:27.

more capacity. We hope the review will test the thesis an answer in

:52:27.:52:31.

the positive. Second it will look at the options, and they are

:52:31.:52:36.

complex. I cannot answer your question directly, but if the

:52:36.:52:40.

evidence supported a third runway would do the job for the long term,

:52:40.:52:45.

of course that would be something worthy of support. But I am not

:52:45.:52:50.

sure that it will be. With you and your colleagues wait and listen and

:52:50.:52:55.

watch the analysis, and take the recommendations in order of

:52:55.:52:58.

preference from this Commission? Every one will form their own

:52:58.:53:07.

opinion. But there is a strong case for the Boris Ireland as well.

:53:07.:53:12.

Would that work for you? I want a solution, what ever it is, that it

:53:12.:53:18.

will allow us to remain competitive. He would accept a proposal that led

:53:18.:53:23.

to the creation of a new airport in the estuary and meant the closing-

:53:23.:53:28.

down of Heathrow? A of course, that is an over-simplification, you have

:53:28.:53:33.

to look at what you'll do with Heathrow. The complex of trying and

:53:33.:53:38.

even considering transferring the airport, jobs, it is just the

:53:38.:53:42.

implication. We have to wait until after the election for the report,

:53:42.:53:48.

I don't like that. Tom, possibly would you support the idea of an

:53:48.:53:52.

airport hub, more runways at one of the south-east airports, if you

:53:52.:53:57.

closed others, so there was no net increase, but you still have a cup.

:53:57.:54:03.

So Stansted could have three? have made it clear we don't support

:54:03.:54:07.

any net increase in the number of runways. That is a given. We need

:54:07.:54:12.

to look at other airports, in terms of Manchester and Birmingham where

:54:12.:54:16.

they have capacity and they want it to be used. We have lots of light

:54:16.:54:21.

going into Heathrow that up 0.2 point flights which could go to

:54:21.:54:27.

other airports and the South East as an alternative. Much to talk

:54:27.:54:31.

about that in the future. We have to move on.

:54:31.:54:35.

Now safety belts on and hold on to your seats, here's our review of

:54:35.:54:45.
:54:45.:54:50.

The police officer cleared of killing Ian Tomlinson apogee Pentti

:54:50.:54:54.

protest was sacked for gross misconduct. Findings were denounced

:54:54.:54:58.

as a whitewash by the Tomlinson family.

:54:58.:55:03.

Still basking in Olympic glow, the London mayor did not bite when

:55:03.:55:09.

asked to consider heavy sponsors. When asked what Usain Bolt are

:55:09.:55:15.

eight and the day he ran, what did he eat? Do you know the answer? He

:55:15.:55:23.

ate McDonald's. Noel Olympic glory for G4S, the committee said it

:55:23.:55:29.

should forgo the �54 million management fee. G4S created an

:55:29.:55:33.

eleventh-hour fiasco. Richmond Green is under a known

:55:33.:55:37.

battleground, but could that change? The Conservative council is

:55:37.:55:42.

being rebellious and has voted to oppose the Prime Minister's plans

:55:42.:55:52.

to relax planning rules. Let's start with the revolting

:55:52.:55:57.

people of Richmond. Tom, do you agree or think they are right to

:55:57.:56:01.

object to a kind of free-for-all extensions to property, which could

:56:01.:56:05.

be coming in? I support the idea of localism, so local councils, they

:56:05.:56:10.

have an option to take this up, the Government is offering them. If

:56:10.:56:14.

they feel in their locality it is not appropriate, it is a decision

:56:14.:56:20.

for them. I think it is a bit early to rebel on that. I would like to

:56:20.:56:24.

see the detail. If you see the detail and then you can form an

:56:24.:56:28.

opinion. I am not convinced, it does need some examination on how

:56:28.:56:35.

it would affect my borough, so let's look at the detail. The idea

:56:36.:56:39.

of eight metre expansion, Design and no planning permission, how

:56:39.:56:45.

will people feel about this? It I was to put it like that, a lot of

:56:45.:56:49.

them would be concerned. But you hear ministers saying there are

:56:49.:56:54.

lots of safeguards. I need to see the detailed before we decide where

:56:54.:57:00.

to go. An G4S security, should they can back this management fee, it

:57:00.:57:04.

was far administration did but the security people in place. Should

:57:04.:57:09.

they handed back? The difficulty is, there is a contractual arrangement

:57:09.:57:14.

which guarantees them this fee. However, they may choose that in

:57:14.:57:17.

the circumstances it would be appropriate to hand it back.

:57:17.:57:25.

wonder if they will? I want to ask you, you are an official on the

:57:25.:57:30.

backbench 1922 Committee, is Andrew Mitchell in trouble? I won't speak

:57:30.:57:35.

for the 1922 Committee, but of course he is in difficulty. Because

:57:35.:57:38.

of the swearing, or if its emergence he called the police a

:57:38.:57:48.
:57:48.:57:49.

pleb? He has apologised. It was disgraceful, I don't think the

:57:49.:57:55.

police should be treated like that. I think the matter now needs to get

:57:55.:58:00.

some context. If there is a disagreement between the two,

:58:00.:58:03.

anything that the mergers which suggests an Judy use those words,

:58:03.:58:13.
:58:13.:58:17.

it is difficult. If thanks to you We will mark your card for the

:58:17.:58:21.

political week ahead, but first the news with Chris Rodgers.

:58:21.:58:25.

Good afternoon. The Deputy Prime Minister has pledged the very

:58:25.:58:31.

wealthy will be forced to pay more tax to help reduce the budget. He

:58:31.:58:35.

said the Lib Dems wouldn't agree to further welfare cuts unless the

:58:35.:58:38.

Conservatives accept the need for the better off in society to pay

:58:38.:58:46.

their fair share. Turbulent times for the Lib Dems,

:58:46.:58:49.

their poll ratings are dismal, with some putting them in 4th place. But

:58:50.:58:52.

Nick Clegg said the political weather would change when voters

:58:52.:58:57.

realise his party is fighting for greater fairness in an era of belt-

:58:57.:59:01.

tightening. I think the majority of people in this country would find

:59:01.:59:05.

it unacceptable if further fiscal austerity was basically implemented

:59:05.:59:10.

on the backs of the poor. Nick Clegg's party is pushing for a new

:59:10.:59:14.

levy on expensive properties, but he was not keen to divulge what

:59:14.:59:17.

other taxes or were being devised to hit the wealthy, or whether they

:59:17.:59:21.

could be delivered before the next election. Whoever will be in

:59:21.:59:26.

Government in the next Parliament, Labour, Conservative, or in

:59:26.:59:30.

combination, or have to produce further savings. It is an economic

:59:30.:59:34.

fact. It is important we have a debate now in the middle of this

:59:34.:59:39.

Parliament about the principles which will govern that but the

:59:39.:59:42.

Government's will do more to ensure the better off cough up what they

:59:42.:59:47.

already own. A specialist team of tax inspectors has been increased

:59:47.:59:52.

to 300. They have gone over those who are worth more than �2.5

:59:52.:59:56.

million or more. But millionaires will come under scrutiny, too. Nick

:59:56.:00:00.

Clegg, perhaps more than any other politician knows the dangers of

:00:00.:00:05.

promising what he cannot deliver. He has told his party wants to tax

:00:05.:00:15.

the wealthy, now he has to tell How much of this is Nick Clegg

:00:15.:00:20.

trying to please his own supporters? It will please them to

:00:20.:00:24.

hear that he is interested in tax and the wealthy, and he has a team

:00:24.:00:29.

to come more up with some options. Unless he shares more details,

:00:29.:00:33.

voters will be sceptical as to whether he can deliver. He admitted

:00:33.:00:39.

he has been unable to persuade his coalition partners on lunch and tax.

:00:39.:00:44.

He also came up with a new idea on helping young people on to the

:00:44.:00:50.

housing ladder, but again with very little detail. The idea is popular

:00:50.:00:56.

with voters, but what people in the country will be asking is when he

:00:56.:01:00.

will be putting these ideas into practice. And that has died and

:01:00.:01:04.

another has been seriously injured in a skydiving accident near

:01:04.:01:07.

Peterborough. It is thought the men collided

:01:08.:01:12.

approximately 50 ft above the ground, collapsing their parachutes.

:01:12.:01:17.

One man died at the scene, the other is in Addenbrooke's Hospital

:01:17.:01:22.

in Cambridge with severe spinal injuries.

:01:22.:01:25.

How has told could be compensated directly by gas and electricity

:01:26.:01:31.

suppliers who break industry rules, under new plans announced today.

:01:31.:01:35.

The regulator Ofgem will have the power to force energy firms to make

:01:35.:01:39.

direct payments to customers, rather than imposing fines which go

:01:39.:01:43.

to the Treasury. Special church services are being

:01:43.:01:47.

held today in memory of the two police officers killed in Greater

:01:47.:01:54.

Manchester. PC Fiona Bone and PC Nicola Hughes died last Tuesday.

:01:54.:01:58.

Dale Cregan has been charged with murdering the women, as well as two

:01:58.:02:05.

men who were shot earlier this year. There will be more news on BBC One

:02:06.:02:14.

at 6:35pm. Now back to Andrew. It is a Lib Dem

:02:14.:02:18.

seaside Special, but will Nick Clegg - the one in the kiss-me-

:02:18.:02:24.

quick hat - When the cuddly toy on the peer or get sound on his ice-

:02:24.:02:33.

cream? These are the big questions in the week ahead. While we have

:02:33.:02:39.

been on air doing the Eric Pickles interview, Ladbrokes has narrowed

:02:39.:02:44.

the odds that Mr Mitchell will go to 5-4 on. What do you make of

:02:44.:02:51.

that? I think they are wrong. Cabinet ministers have to resign if

:02:51.:02:55.

something new about the story emerges and there has not been

:02:55.:03:00.

anything substantially new, as I said before. Nick was right when he

:03:00.:03:06.

said if Andrew made an apology publicly, that would probably be

:03:06.:03:14.

the end of it. What if we see these contemporaneous note books from the

:03:14.:03:20.

policemen? Then it becomes his word against the police and I suspect he

:03:20.:03:24.

loses that battle. I am also surprised David Cameron has not

:03:24.:03:28.

used this as an opportunity to further the modernisation of the

:03:28.:03:33.

Conservative Party. You can imagine if this happened in opposition in

:03:33.:03:37.

2006 he would have seized on it and said we will not tolerate this in

:03:37.:03:43.

this party and dismissed him. It is obviously harder when you're only

:03:43.:03:50.

appointed him 17 days ago. We have the story is still raging in the

:03:50.:03:55.

paper on the seventh day, the minister has to go, and it is not

:03:55.:03:59.

still raging but I wonder if we should have a new Alastair Campbell

:03:59.:04:04.

role - not necessarily whether it lasts in the papers, but the danger

:04:04.:04:08.

with this story is that it has cut through and makes the point that

:04:08.:04:14.

was made on one of your other programmes which is that David

:04:14.:04:16.

Cameron and George Osborne are arrogant posh boys who don't know

:04:17.:04:23.

the price of milk. If you think that what happened to Patrick

:04:23.:04:29.

Mercer in the row about racism - what he said was very harshly

:04:29.:04:34.

treated for and he is still very bitter about it, and David Cameron

:04:34.:04:39.

reacted immediately to that. He has reacted differently to this. Let's

:04:39.:04:43.

come back to the Lib Dems in Brighton for their annual

:04:43.:04:49.

conference. Nick Clegg wants to bash the rich more, playing to his

:04:49.:04:55.

own Lib Dem party faithful, but in the Sunday Times poll 58% of voters

:04:55.:05:05.

find him untrustworthy, 66% see him as indecisive. There are not enough

:05:05.:05:09.

apologies to pull him back from that. I don't think it will make

:05:09.:05:13.

any difference and other papers have similarly gloomy polls for the

:05:13.:05:19.

Lib Dems. In one poll they are behind UKIP so he has a very

:05:19.:05:23.

difficult task this week. He will do his very best to cheer up his

:05:23.:05:28.

troops and remind them of the benefits of being in coalition.

:05:28.:05:32.

leadership is not in fact, but can he pull back these figures?

:05:32.:05:39.

suspect not. You alluded to the fact that his party is mired in the

:05:39.:05:49.

polls, but there is no immediate prospect of him being disposed of.

:05:49.:05:52.

Tim Farron is not a plausible leader of the major political party

:05:52.:05:58.

for example, so he is fairly safe for the next few years. Vince Cable

:05:58.:06:03.

will be putting down a marker this week. And he has been talking about

:06:03.:06:06.

if there was a vacancy he would love to do it. The problem with

:06:07.:06:14.

Nick Clegg is he is to find structurally by the fact he did one

:06:14.:06:19.

thing in the election and another in the government. If you define

:06:19.:06:24.

structurally, it is difficult pull it back from that. Within the next

:06:24.:06:28.

year, if for example the Lib Dems have difficult local elections in

:06:28.:06:32.

the spring, if his position doesn't come back, I think by next summer

:06:32.:06:37.

his position will look very difficult. I agree, I think it is

:06:37.:06:45.

not if but when. I think he's doomed. There is more going on in

:06:45.:06:47.

the conference than the question of his leadership because something

:06:47.:06:52.

interesting is happening - the slow but real recovery of coalition

:06:52.:06:57.

relations. Last week we saw Nick Clegg and Michael Gove collectively

:06:57.:07:01.

announcing GCSE reforms and there is now the mooted idea of some kind

:07:01.:07:08.

of deal on the wealth tax. Lib Dems accept the strategy of the last

:07:08.:07:15.

year didn't work. Evan Harris wants a lot of differentiation. He will

:07:15.:07:20.

be the one helping to draw up the next manifesto. The signing of the

:07:20.:07:25.

pledge was meant to save him, but Evan Harris was not signed on that.

:07:25.:07:29.

His point was made well by David Laws in the Times yesterday, which

:07:30.:07:37.

is that the danger at is they were basically like Daleks blasting each

:07:37.:07:42.

other. It is interesting about how they're made the movement towards

:07:42.:07:45.

the wealth tax because in the Budget George Osborne was willing

:07:45.:07:50.

to agree to this mansion tax if the top rate of income tax went down to

:07:50.:07:57.

40p. David Cameron veto that mansion tax, which is why we have

:07:57.:08:02.

45p but no mansion tax. I want you to promise me you can make sure you

:08:02.:08:06.

know how to use your machine's next week, it has been at Twitter free

:08:06.:08:13.

zone. You need to provide us with decent kit. We will be back on the

:08:13.:08:17.

daily politics on BBC Two throughout the week with the big

:08:17.:08:20.

speeches from Brighton, reaching a crescendo on Wednesday afternoon

:08:20.:08:25.

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