:00:20. > :00:47.do with the lack of talent, it is Sunday Politics. David Cameron
:00:48. > :00:53.house-buyers with deposits. Is he merely stoking a new house price
:00:53. > :00:56.bubble? As Tory activist 's gather in Manchester, we will have the
:00:56. > :01:00.results of our exclusive survey in Manchester, we will have the
:01:00. > :01:06.Conservative councillors. I will be William Hague. And Ed Miliband made
:01:06. > :01:09.headlines with his pledge to freeze energy prices for 20 months after
:01:09. > :01:10.headlines with his pledge to freeze the next election. But does the
:01:10. > :01:11.headlines with his pledge to freeze policy really stack up? Shadow
:01:11. > :01:20.And in the North West, I'll be speaking live to the Chancellor
:01:20. > :01:25.George Osborne here in Manchester. And the Prime Minister tells me
:01:25. > :01:26.Underground should be made illegal, something the Prime Minister doesn't
:01:26. > :01:45.With me are a trio of top political commentators. All three will be
:01:45. > :01:48.tweeting their thoughts, or in some cases just their thought through the
:01:48. > :01:55.show, using the hashtag #bbcsp. cases just their thought through the
:01:55. > :02:02.Conservative Party conference gets afternoon. We have already been
:02:02. > :02:06.bombarded with a series of policy announcements, a tax break for
:02:06. > :02:09.married couples of up to £200 per year, more money on life extending
:02:10. > :02:13.cancer treatments and, last night, the news that the second stage of
:02:13. > :02:19.the Chancellor's Help To Buy scheme brought forward from the start of
:02:19. > :02:24.next year. David Cameron says it is all about helping hard-working
:02:24. > :02:33.people. Right now, you can't get, 95% mortgage. That means a typical
:02:33. > :02:34.family with two people earning 20,000, 25,000, they are being
:02:34. > :02:43.asked, to buy an average house, 20,000, 25,000, they are being
:02:43. > :02:46.mortgage payment, but they can't get the mortgage. They can't buy their
:02:46. > :02:50.flat or house. As Prime Minister, I'm not going to stand back while
:02:50. > :02:52.people's aspirations to get on the housing ladder, to own their own
:02:52. > :02:58.flat or home, is being trashed. housing ladder, to own their own
:02:58. > :03:02.is why we need to act. A predictable attempt by party leadership to
:03:02. > :03:05.kick-start the conference with eye-catching policies. The polls
:03:05. > :03:10.show a big bounce for Ed Miliband and the Labour Party, with decent
:03:10. > :03:26.numbers for UKIP. What do party councillors as they travel to their
:03:26. > :03:36.For the Conservatives this weekend, conference, and as a scene setter we
:03:36. > :03:43.asked ComRes to survey councillors are Finland and Wales. Councillors
:03:43. > :03:45.asked ComRes to survey councillors like Tom, packing for conference at
:03:45. > :03:48.home in Wellingborough. Immigration is an issue for him. He thinks there
:03:48. > :03:55.are pros and cons. But we found is an issue for him. He thinks there
:03:55. > :04:02.immigration has had a negative reflects into this wider issue of
:04:02. > :04:08.our relationship with Europe. People possible influx of ovarian and
:04:08. > :04:18.Romania emigrants. Obviously the issue of Europe is very big. --
:04:18. > :04:23.Ukrainian. His colleagues in Corby are worried about the rise of the UK
:04:23. > :04:26.Independence Party. In our survey, nearly a quarter of Conservative
:04:26. > :04:31.councillors thought that their party should make a pact with UKIP. The
:04:31. > :04:40.concern is, yes, will they take If that happens, maybe we don't
:04:40. > :04:43.concern is, yes, will they take back in. Maybe a partnership is
:04:43. > :04:50.concern is, yes, will they take way to go. It depends what they
:04:50. > :04:50.concern is, yes, will they take talking about them. A pact? Depends
:04:50. > :05:06.what they say, anything is possible. What would you like to see? Ideally,
:05:06. > :05:11.from my point of view, a national pact. David Cameron arrived in
:05:11. > :05:14.Manchester last night. Around the same time as these activists from
:05:14. > :05:23.London. I broke the news to them that in our survey just 26% of Tory
:05:23. > :05:29.councillors think that the prime ministers in touch with the lives of
:05:29. > :05:32.ordinary people. The same at all Conservatives, you don't judge
:05:32. > :05:34.people by their background. It's not where they come from, it is where
:05:34. > :05:38.they are going to. It is not a where they come from, it is where
:05:38. > :05:40.problem that he is a bit on the where they come from, it is where
:05:40. > :05:42.side? Cull you might describe him like that, I would not use those
:05:42. > :05:49.words. Explain your T-shirt, it like that, I would not use those
:05:49. > :05:54.phrase that a senior Cameron person is alleged to have used about you?
:05:54. > :05:58.It is a humorous way of letting is alleged to have used about you?
:05:58. > :06:01.party now that we are here to say important. We are not going away any
:06:01. > :06:06.time soon. A sentiment you will important. We are not going away any
:06:06. > :06:09.a lot at this conference, because just 22% of councillors in our
:06:09. > :06:16.survey said that David Cameron was any good at listening to the people
:06:16. > :06:21.that work hard for his party. That was Adam. Joining me now from the
:06:21. > :06:26.Conservative Party conference in William Hague. Welcome to the Sunday
:06:26. > :06:33.Politics. Good morning. Over one in five Tory councillors in our survey
:06:33. > :06:36.support a pact with UKIP at the five Tory councillors in our survey
:06:36. > :06:39.election. Why do you think that five Tory councillors in our survey
:06:39. > :06:41.If it is one in five, it means a large majority did not want a pact
:06:41. > :06:46.with UKIP at the next election. large majority did not want a pact
:06:46. > :06:49.have noticed that UKIP, in local elections, has been receiving votes,
:06:49. > :06:52.some of which would otherwise have been for the Conservatives. I think
:06:52. > :06:58.we have to make sure that people election they are choosing between a
:06:58. > :07:01.Conservative and Labour Government, as David Cameron as Prime Minister
:07:01. > :07:07.or Ed Miliband. If people want to get a referendum on Europe, the
:07:07. > :07:07.or Ed Miliband. If people want to way to do that is to have David
:07:07. > :07:12.Cameron as Prime Minister. I think a Cameron as Prime Minister. I think a
:07:12. > :07:15.general election is different from the local government perspective. It
:07:15. > :07:20.is pretty unusual, some might say unprecedented, for a large chunk of
:07:20. > :07:23.one of the big parties in this country to want to go into coalition
:07:23. > :07:31.one of the big parties in this with a smaller party before an
:07:31. > :07:36.happened? Looking at your survey, three times as many didn't want
:07:36. > :07:38.happened? Looking at your survey, with statistics, you can highlight
:07:38. > :07:42.it whichever way around you want to. The point is, we are not having
:07:42. > :07:49.pacts with other parties, electoral pacts with other parties. You rule
:07:49. > :07:52.it out? That is not going to happen. What we do want is to have a pact
:07:52. > :07:56.it out? That is not going to happen. with the voters, if you like, as we
:07:56. > :08:00.have often done in the Conservative Party. We have won over the voters
:08:00. > :08:02.of other parties to support our policies and Prime Minister. That is
:08:02. > :08:05.important with those people that say important with those people that say
:08:05. > :08:09.they want to vote for UKIP. By default, they would produce a Labour
:08:09. > :08:14.government in the exact opposite of many of the things they intend,
:08:14. > :08:15.government in the exact opposite of Conservative and decide to vote
:08:15. > :08:18.government in the exact opposite of UKIP instead in a general election.
:08:18. > :08:25.That could help to produce a Labour government. The chairman of the
:08:25. > :08:29.That could help to produce a Labour committee, the elected voice of
:08:29. > :08:33.Conservative backbenchers, he says your party should spell out what had
:08:33. > :08:38.once back from the European Union before next year's European actions.
:08:38. > :08:44.Do you agree? We will be spelling out some things in the European
:08:44. > :08:53.elections. I will be talking about this later on today. For instance,
:08:53. > :08:58.European treaties the concept of ever closer union, a concept that in
:08:58. > :09:03.believed in. We would like that ever closer union, a concept that in
:09:03. > :09:07.consequences that would flow from that. We will be setting out the
:09:07. > :09:13.examples and principles of the changes we want to say. Certainly
:09:13. > :09:16.over the next year, not only before the European actions but the general
:09:16. > :09:21.election, if you are saying, let have the exact list of anything
:09:21. > :09:24.election, if you are saying, let negotiate, that is difficult because
:09:24. > :09:29.there will be a negotiation of a new deal in Europe if David Cameron
:09:29. > :09:35.there will be a negotiation of a new election. To some extent, that has
:09:35. > :09:38.to be negotiated. Only 11% of your own councillors feel that people in
:09:38. > :09:46.their area think that George Osborne is in touch with ordinary people.
:09:46. > :09:53.is not for me to explain why people say what they say in surveys. The
:09:53. > :09:56.important thing is what we are delivering for the country. What
:09:56. > :10:00.George Osborne is delivering his renewed economic growth. 1.4 million
:10:00. > :10:06.new jobs in the private sector, renewed economic growth. 1.4 million
:10:06. > :10:09.for hard-working people, by reducing the tax for 25 million of them.
:10:09. > :10:12.for hard-working people, by reducing Help To Buy scheme that we are
:10:12. > :10:17.highlighting today. That is what really matters to people, actually,
:10:17. > :10:20.I think you will find. Let's talk about helping ordinary people. Ed
:10:20. > :10:28.Miliband is guilty freeze energy prices. What are you going to do
:10:28. > :10:36.about energy prices, we already asked energy companies to put people
:10:36. > :10:45.on their lowest tariffs. This has not been amended. -- implemented.
:10:45. > :10:51.Why not? This is going to happen within this government. It is going
:10:51. > :10:58.to happen within this government when the... Why hasn't it happened
:10:58. > :11:01.now? People are suffering now from rising energy prices. It has not
:11:01. > :11:07.happened because my colleagues have been implimenting it. In the case of
:11:07. > :11:10.Ed Miliband's policy, if you are asking why it has not yet happened
:11:10. > :11:16.under this Government, it didn't even survive a few our's scrutiny in
:11:16. > :11:19.opposition. In a few hours he had to concede that if there was a big
:11:19. > :11:23.change in oil prices then the policy would not work. The trouble is,
:11:23. > :11:30.change in oil prices then the policy would dry up some of the investment
:11:30. > :11:33.in the energy industry. I don't think it is a credible promise.
:11:33. > :11:33.in the energy industry. I don't a party that presided over council
:11:33. > :11:40.tax bills doubling in the next a party that presided over council
:11:40. > :11:46.tax bills doubling in the next government, -- last government,
:11:46. > :11:48.tax bills doubling in the next not very credible. Why is George
:11:48. > :11:52.Osborne going against the European Well, we don't want to see the
:11:52. > :11:56.European treaties used in a way Well, we don't want to see the
:11:56. > :12:01.they should not be used. It's not necessarily over this particular
:12:01. > :12:05.issue. It is over the power that the European Union has over our lives
:12:05. > :12:08.and over this country. Can the bankers look after themselves? We
:12:08. > :12:11.should be able to decide those things in our own country. We have
:12:12. > :12:18.never signed up to such matters things in our own country. We have
:12:18. > :12:20.European institutions. If you allow one thing that wasn't meant to be
:12:21. > :12:24.decided to be decided, you find one thing that wasn't meant to be
:12:25. > :12:26.there are another ten or 20 things that affect many other people. We
:12:26. > :12:32.are very vigilant about what we that affect many other people. We
:12:32. > :12:36.competence creep, with the European Union taking more powers than it was
:12:36. > :12:41.meant to have. That is one of the referendum, do want a new deal in
:12:41. > :12:51.Europe. That is what we intend to institution, ICAP, fined for fixing
:12:51. > :12:56.the LIBOR rates. The founder of institution, ICAP, fined for fixing
:12:56. > :13:00.company has donated £5 million to your party. Shouldn't you give it
:13:00. > :13:08.back? Aren't you ashamed to accept that money? He has donated his own
:13:08. > :13:10.Which he made out of ICAP. As people have to other parties, people are
:13:10. > :13:13.free to do that and they should have to other parties, people are
:13:13. > :13:16.free to do that. I am not aware have to other parties, people are
:13:16. > :13:21.any plan for that to be repaid. Because you can't afford to. Let's
:13:21. > :13:25.recap this. We have seen Tory MPs parrot propaganda lines from the
:13:25. > :13:29.energy companies this week. We have the Chancellor going to court to
:13:29. > :13:33.fight for unlimited banker bonuses. We have a top Tory donor the centre
:13:33. > :13:35.fight for unlimited banker bonuses. of yet another city scandal. Ed
:13:35. > :13:39.Miliband is right when he says you lot are on the side of the vested
:13:39. > :13:46.interests so the rich and powerful, isn't he? Well, again, look at the
:13:47. > :13:52.record. I just did! 1.4 million extra jobs in the private sector, 25
:13:52. > :13:56.million people with a tax cut, a Help To Buy scheme which is going to
:13:56. > :14:03.help so many people, particularly young people have the house that
:14:03. > :14:08.future. Council tax bills held down, welfare reform so that it pays to
:14:08. > :14:11.work. Actually, this is a government achieving things for hard-working
:14:11. > :14:32.While President Laugharne he's talking about peace, the Iranians
:14:32. > :14:37.weapons programme. -- is talking. It would be hard to say from week
:14:37. > :14:45.to week whether it is speeding up continuing with it. That is why
:14:45. > :14:48.to week whether it is speeding up say the new message - the new words
:14:48. > :14:52.- from Iranian leadership are very welcome. I said that to the Foreign
:14:52. > :14:57.Minister in New York over the last few days but it is the actions that
:14:57. > :15:03.will count. At the moment, the nuclear programme continues. We
:15:03. > :15:07.negotiations on that and that will be a very important test as to
:15:07. > :15:12.whether actions will match the words. When will we know it if we
:15:12. > :15:17.are being strung along? He has strung as a long in the past as
:15:17. > :15:20.are being strung along? He has nuclear weapons negotiator. When
:15:20. > :15:24.will we know if he is not just doing that again? Over the next
:15:24. > :15:27.will we know if he is not just weeks, it will be a very important
:15:27. > :15:34.time. He has said there should be more transparency over the Iranian
:15:34. > :15:40.transparent in many regards at the moment. The atomic agency is asking
:15:40. > :15:47.for information that is not being given. One test is, in the coming
:15:47. > :15:51.information? The information that the international of authority is
:15:51. > :15:55.asking for about their nuclear programme. We will be able to form
:15:55. > :16:00.a view of this in the coming weeks or months. It is important we test
:16:00. > :16:09.their new willingness to talk to us important to find out whether they
:16:09. > :16:14.asking, is the nuclear programme really continuing? Are they really
:16:15. > :16:22.negotiations and offer something Speaking of being strung along,
:16:22. > :16:31.what sanctions would President Assad face if, in six months - the
:16:31. > :16:36.Year, Syria still has a chemical weapons arsenal. In the resolution
:16:36. > :16:44.we voted through the UN Security Council on Friday night, is the
:16:44. > :16:50.Council will take measures under Chapter seven of the UN Charter
:16:50. > :16:53.Council will take measures under the event of non-compliance. Does
:16:53. > :17:00.that allow full force? I did not catch that. Does that allow for
:17:00. > :17:05.Security Council resolution about Iraq, which most people concluded
:17:05. > :17:13.in not allow full force. It does not specify that. It talks about
:17:13. > :17:18.terms seven of the charter. That is a message of the whole UN Security
:17:18. > :17:24.Council that there will be measures - there will be consequences - if
:17:24. > :17:33.the Assad regime does not comply. has a big commitment. I have spent
:17:33. > :17:38.counterpart over the last week. Russia has said, this is something
:17:38. > :17:43.you will have to do. We will work with Russia and others very closely
:17:43. > :17:48.to check there is compliance will this resolution. Given the progress
:17:49. > :17:53.that has been made, you must be very glad that the British House of
:17:53. > :18:08.Commons stopped your rash to force against Syria. -- rush. The reason
:18:08. > :18:14.credible threat of military action. has happened is because there was a
:18:14. > :18:14.credible threat of military action. President Obama did not get it
:18:14. > :18:20.through Congress. They have not President Obama did not get it
:18:20. > :18:25.the vote in Congress. There is no other explanation as to why the
:18:25. > :18:29.policy changed. It was because there was a debate about military
:18:30. > :18:35.action in the West that the policy changed on theirs. That is why it
:18:35. > :18:40.changed. We were not in a rush for military action. The boat put to
:18:40. > :18:50.the House of Commons was to have inspectors reported. It was before
:18:50. > :19:02.Russian and Syrian policy changed. We need to make sure that works
:19:02. > :19:05.Russian and Syrian policy changed. practice. Thank you. What do you
:19:05. > :19:09.make about this rushing forward with the help to buy scheme which
:19:09. > :19:14.was meant to start next year - coming forward mad to the next
:19:14. > :19:28.couple of weeks? I think it is a Government having an interest in
:19:28. > :19:33.mortgage lending. -- there is a fundamental problem. It should have
:19:33. > :19:38.been set much lower to exclude London and the South East where
:19:38. > :19:44.houses are dramatically overvalued. Many economists think freezing
:19:44. > :19:49.energy prices is a terrible policy. These policies can be popular. If
:19:49. > :19:59.you have no chance of getting a deposit, the Government will make
:19:59. > :20:04.Osborne tried every single lever. It looked like he could not do
:20:04. > :20:11.anything to get the economy moving. It is moving. They have pulled it
:20:11. > :20:14.forward and there are signs it is recovering. The reason why they
:20:14. > :20:17.forward and there are signs it is doing this is they want to show
:20:17. > :20:21.this week at the conference there are real sort of understandable
:20:21. > :20:25.issues you can explain very simply that really up going to improve
:20:25. > :20:34.people's lives. The Conservatives Miliband's speech last week. The
:20:35. > :20:49.nuts. Much more cautious and -- language about the energy price
:20:49. > :20:54.freeze. They are nervous that Ed Miliband may be touching a nerve on
:20:54. > :21:02.that one. What we will get this week, I suggest, his Tory populism
:21:02. > :21:04.to counter Miliband populism. I think we will see that and it will
:21:04. > :21:10.be a mistake. As long as it is think we will see that and it will
:21:10. > :21:18.about The Picture, they are on relatively strong ground. When the
:21:18. > :21:20.political conversation changes to more fiddly things, particularities
:21:20. > :21:26.standards, things that are some more fiddly things, particularities
:21:26. > :21:31.below that picture, I do not think they can win a bidding war with
:21:31. > :21:31.below that picture, I do not think Labour Party. It is about borrowing
:21:31. > :21:46.against a party that stands for Labour Party. It is about borrowing
:21:46. > :21:50.is unemployment, GDP growth and Labour Party. It is about borrowing
:21:50. > :21:54.warming economic picture. That does not pay energy bills. Does not
:21:54. > :22:00.sound that the Tories have anything not pay energy bills. Does not
:22:00. > :22:02.to counter the price freeze. -- not pay energy bills. Does not
:22:02. > :22:07.does not sound. They have had a week to think about a great attack
:22:07. > :22:09.line and they do not add anything. They have just said, the lights
:22:09. > :22:32.the credibility test. Ed Miliband said, if there were a big spike
:22:32. > :22:33.the credibility test. Ed Miliband energy prices, he would not be able
:22:33. > :22:52.it is about credibility. Being seen as serious and grown-up is worth
:22:52. > :22:52.it is about credibility. Being seen more than any burst of popularity.
:22:52. > :23:01.with the election campaign, it My worry about the announcement
:23:01. > :23:06.with the election campaign, it begins to lose credibility, begins
:23:06. > :23:12.to seem a banana republic. It looks a lot less wise than it did last
:23:12. > :23:13.week. I disagree. Every time energy bills go up and they will continue
:23:14. > :23:18.to go up, it will be a reminder bills go up and they will continue
:23:18. > :23:24.how much people are being hit in the pockets. People know by energy
:23:24. > :23:28.prices are going up. There is a structural change in the world that
:23:28. > :23:33.was not there before - China and India. These energy companies may
:23:33. > :23:40.be making huge profit but, at the end of the day, what is driving
:23:40. > :23:42.be making huge profit but, at the the cost of fuel is China and India.
:23:42. > :23:47.Ed Miliband, great man that he is, I am not sure he can take on the
:23:47. > :23:56.people Sammir on that one. How dare Labour's Conference in Brighton
:23:56. > :23:59.last week. Dogged by criticism over the summer of his leadership style
:23:59. > :24:02.and lack of policies, Mr Miliband tried to demonstrate his strength
:24:02. > :24:04.of character with a series of bold announcements, and attempted to
:24:05. > :24:11.position himself on the side of ordinary Brits. The Labour leader
:24:11. > :24:13.told party members he would stand up to the strong and take on the
:24:13. > :24:17.vested interests that hold back up to the strong and take on the
:24:17. > :24:21.economy. In a speech in which he jokingly referred to himself as
:24:21. > :24:22.economy. In a speech in which he action hero, Mr Miliband promised
:24:22. > :24:26.to switch the forthcoming business action hero, Mr Miliband promised
:24:26. > :24:30.tax cut from large firms to smaller businesses. He said he would force
:24:30. > :24:35.big firms to train at an apprentice every time they bring in a worker
:24:35. > :24:40.from outside the EU. He hinted that increasing the minimum wage would
:24:40. > :24:47.be increased. He bowed to take on developers with a use it or lose it
:24:47. > :24:52.threat to landowners and pledged to build 200,000 homes each year by
:24:52. > :24:57.2020. He promised to freeze energy prices and reset the energy market.
:24:57. > :25:06.The next Labour government will freeze gas and electricity prices
:25:06. > :25:12.provoked a rash of headlines - hailing the return of red Ed macro.
:25:12. > :25:15.It has also given him a spike in the polls. And Labour's Shadow
:25:15. > :25:33.Ed Miliband says, our energy market is broken and does not work. In
:25:33. > :25:42.what way is that market to date different from the one Labour left
:25:42. > :25:53.companies that dominate the energy generate energy, and sell it on
:25:53. > :25:55.companies that dominate the energy Miliband recognised when he was
:25:55. > :25:59.Secretary of State and asked for more information from the company
:25:59. > :26:01.Secretary of State and asked for is on hold serve costs and profits,
:26:01. > :26:05.all the things we have done to mitigate against that in terms of a
:26:05. > :26:13.warm front programme and everything Horsell market is too secretive
:26:13. > :26:16.warm front programme and everything it is too much about such supply. -
:26:16. > :26:18.- the wholesale market. We have been raising with the Government in
:26:18. > :26:25.a co-operative way the argument been raising with the Government in
:26:25. > :26:31.resetting the market. It has got worse in terms of speed at which
:26:31. > :26:34.prices have gone up. Labour put wholesale and retail together. It
:26:34. > :26:40.was the start this dates back to wholesale and retail together. It
:26:40. > :26:40.was the start this dates back to privatisation. We took some reforms
:26:40. > :26:48.realised it was not working and privatisation. We took some reforms
:26:48. > :26:50.was broken and we need to reset privatisation. We took some reforms
:26:50. > :26:55.Ed Miliband will be the first to onwards. Let's have a look at what
:26:55. > :26:59.happened to energy prices under onwards. Let's have a look at what
:26:59. > :27:08.Labour government. Electricity up 67%, gas up 139%. Overall prices up
:27:08. > :27:14.by 48%. The market was broken and we saw prices biking as wholesale
:27:14. > :27:21.prices went up. The tick action we saw prices biking as wholesale
:27:21. > :27:31.the one Front programme, decent homes for social housing. -- we
:27:31. > :27:35.programme. Trying to do things around social obligations needs
:27:35. > :27:43.programme. Trying to do things be looked at. Gas and electricity
:27:43. > :27:46.presided over but as a consequence of Labour policy. Beds have a look
:27:46. > :27:52.at the breakdown of dual fuel - of Labour policy. Beds have a look
:27:52. > :27:59.and electricity bill. -- let's have a look. The supply costs of getting
:27:59. > :28:11.it to us and so on. The policies government - Green levies - are
:28:11. > :28:24.energy bills. £112 on average bill of 1188. You have put the bill up.
:28:24. > :28:29.obligations amount to £112. That helps the poorest insulate homes.
:28:29. > :28:36.Overwhelmingly, looking at your wholesale costs are worth more than
:28:36. > :28:43.half. What we have seen, based on figures we now have, in Eni macro,
:28:43. > :28:52.a wholesale costs fell by 39% and that was not reflected in our bills.
:28:52. > :28:57.Do you have plans to do anything about the £112? If you took that
:28:57. > :29:02.off, you could cut bills by 10% tomorrow. Or if you were in power.
:29:02. > :29:11.It is important that restimulate energy. It -- we stimulate. If we
:29:12. > :29:16.do not have clean energy, we will be beholden for ever-more to fossil
:29:17. > :29:20.do not have clean energy, we will fuels that are depleting. It will
:29:20. > :29:30.create jobs and bring in investment will start in the last few years,
:29:30. > :29:37.investment. If I could go back to whatever advance there are, looking
:29:37. > :29:41.at whether the money raised through energy companies to deliver energy
:29:41. > :29:46.efficiency, is that doing as well as it might? Could it be better
:29:46. > :29:53.delivered by another agency? They are fair questions. We need to get
:29:53. > :29:57.market. Can we make the market will competitive make sure when there is
:29:57. > :30:02.downward pressure on wholesale prices, that is reflected on our
:30:02. > :30:04.bills? That is the bigger picture argument. Also the freeze to help
:30:04. > :30:17.As you complain about the energy prices, it was as a result of your
:30:17. > :30:20.actions. Ed Miliband introduced prices, it was as a result of your
:30:20. > :30:27.climate change act. He admitted prices would have to rise to pay for
:30:27. > :30:30.decarbonisation. He said, we are going to minimise the costs as much
:30:30. > :30:35.as possible, but it is true there is not a low-cost energy future out
:30:35. > :30:38.there. It is important that we address the pressures on bills,
:30:38. > :30:40.there. It is important that we also recognise that if we are going
:30:40. > :30:48.to build a better future where we can have more home-grown British
:30:48. > :30:59.renewables. Truth is it is about the market. I acknowledge I acknowledge
:30:59. > :31:08.wholesale prices have fallen. They fell in 2009, we got a reduction in
:31:08. > :31:13.bills of 5%. Which are saying that the big companies are overcharging
:31:13. > :31:16.customers. We are seeing profits going up, but we haven't seen the
:31:16. > :31:24.amount of investment suggested by those profits coming through. But
:31:24. > :31:27.because your leader said in his speech in Brighton that Labour will
:31:27. > :31:31.have a world leading commitment speech in Brighton that Labour will
:31:31. > :31:35.Government to take out all carbon from energy generation by 2030.
:31:35. > :31:37.Government to take out all carbon is not that far away. By 2030, no
:31:37. > :31:42.more coal generation, no more gas generation, only much more expensive
:31:42. > :31:51.nuclear and much more expensive without bills going up even further?
:31:51. > :31:55.Hang on a second. The 2030 target to remove carbon from the electricity
:31:55. > :31:59.supply, we have said we should set a target now because, actually, it
:31:59. > :32:02.gives us more time to plan ahead and also allows investment to come in.
:32:02. > :32:06.There is plenty of people with cash in their pockets not want to invest
:32:06. > :32:09.what they are stalling because of the Government's hesitancy over
:32:09. > :32:14.this. I just want a clarification here. My understanding is that your
:32:14. > :32:19.commitment is to get rid of all carbon from power generation by
:32:19. > :32:23.2030? From the letters city supply. Only electricity. We will still
:32:23. > :32:27.2030? From the letters city supply. gas? We have always said we will
:32:27. > :32:37.need gas for decades to come. So we are clear for that. But you will be
:32:37. > :32:41.increasingly dependent on expensive nuclear. EDF are currently demanding
:32:41. > :32:48.twice the market price to build plans in this country. Renewables
:32:48. > :32:55.are two or three times the market price. Bills are going up under
:32:55. > :32:56.are two or three times the market policies? On nuclear, we took a
:32:56. > :33:00.decision under the Labour Government that we needed to revitalise the
:33:00. > :33:05.sector, to hit targets on clean that we needed to revitalise the
:33:05. > :33:08.energy and make sure it can do the heavy lifting. The Government at the
:33:08. > :33:14.discussions with EDF about what heavy lifting. The Government at the
:33:14. > :33:16.important, because I don't know heavy lifting. The Government at the
:33:16. > :33:19.it's going to be, it is important that stands up to scrutiny in terms
:33:19. > :33:26.of value for money. At the same time, I go back to market reforms.
:33:26. > :33:32.difference, the jargon for nuclear, We will not just have a target for
:33:32. > :33:35.difference, the jargon for nuclear, we will have it for renewables as
:33:35. > :33:36.well. That is even more important, that we have a transparent market so
:33:36. > :33:42.that we can have a robust target that we have a transparent market so
:33:42. > :33:43.that we can have a robust target price to be judged against. Michael
:33:43. > :33:55.Gove recognised in question time they used the term cosy cartel.
:33:56. > :33:58.Gove recognised in question time Cameron saying something needs to be
:33:58. > :34:04.done. I'm surprised David Cameron doesn't acknowledge that. You are
:34:04. > :34:08.going to freeze prices for 20 months regulator to replace Ofgem. Will
:34:08. > :34:11.that regulator have the power to regulator to replace Ofgem. Will
:34:11. > :34:19.control prices? The new energy wholesale costs and prices, which it
:34:19. > :34:28.moment. As a result of that it will wholesale costs and prices, which it
:34:28. > :34:35.wholesale prices fall, it can force the energy companies, if they don't,
:34:35. > :34:38.to pass on reductions in bills to consumers. It will not have what we
:34:38. > :34:43.see in some parts of the European Union, 15 of them, that have a
:34:43. > :34:45.variety of price controls that set things at below inflation and what
:34:45. > :34:50.have you. France, Spain, Italy. things at below inflation and what
:34:50. > :34:54.will not do that. Why? Because we are looking at a temporary price
:34:54. > :35:00.freeze to reflect a reduction in are looking at a temporary price
:35:00. > :35:05.British public respite from ever reforms into the market. At the
:35:05. > :35:07.British public respite from ever of this, what we want is a more
:35:07. > :35:12.competitive market that can be trusted, that is more transparent.
:35:12. > :35:16.We do believe it is right that, actually, we need a regulator that
:35:16. > :35:19.has much more of a role in making effectively. Are you accusing energy
:35:19. > :35:29.companies of profiteering? EU I effectively. Are you accusing energy
:35:29. > :35:31.accusing them of overcharging and not passing on wholesale reduction
:35:31. > :35:41.costs to the customer in a fair not passing on wholesale reduction
:35:41. > :35:48.Of making Carter -- cartel profits? I do believe that the level of
:35:48. > :35:51.profits they have passed on to their shareholders is high, compared to
:35:51. > :35:52.the reductions they could have provided to consumers. Let's look at
:35:52. > :35:59.the evidence for that. Here are provided to consumers. Let's look at
:35:59. > :36:01.British owned companies, SSE and Centrica. In the last fiscal year
:36:01. > :36:10.they made combined earnings of Centrica. In the last fiscal year
:36:10. > :36:15.billion. The remaining money went to debt servicing and paying dividends,
:36:15. > :36:20.which go into pension funds. Where profiteering? My figures that I
:36:20. > :36:28.which go into pension funds. Where through their reporting to Ofgem and
:36:28. > :36:30.work done by other organisations, Witch and others, it shows that
:36:30. > :36:35.work done by other organisations, Centrica's case they have something
:36:35. > :36:39.like 8% return in profit margins on the retail side. That goes up to 24%
:36:39. > :36:45.on the generation side. They have passed on, in terms of profits,
:36:45. > :36:47.something I70 4% through evidence to shareholders. But these figures
:36:47. > :36:57.don't show that. They have invested £3 billion. I am reporting what
:36:57. > :37:01.don't show that. They have invested been reported by Ofgem. Ofgem has
:37:01. > :37:03.They may well be, but we don't have the evidence. I would accuse Ofgem
:37:03. > :37:06.of not doing the job they should be of not doing the job they should be
:37:06. > :37:16.doing, and they have held back from across the big six, something like
:37:16. > :37:22.50% of profits has gone over to Centrica's case it is 74%. On the
:37:22. > :37:27.Centrica example, even though they have had the highest profit margins,
:37:28. > :37:32.they have invested the least. It is fair to question. We are running out
:37:32. > :37:36.of time. None of us really know fair to question. We are running out
:37:36. > :37:42.the true price of energy is that is crucial. That is because he merged
:37:42. > :37:46.the market and we can't tell the difference. If they continue putting
:37:46. > :37:50.prices up, even after your price freeze, if they don't invest in
:37:50. > :37:56.prices up, even after your price way that they do, do you rule out
:37:56. > :38:02.competitive market and that is why watching Sunday Politics. Coming up
:38:02. > :38:03.in just over 20 minutes I will be looking at the week ahead with our
:38:04. > :38:21.Coming up in the North West: I'll be joined live by the Chancellor George
:38:21. > :38:30.Osborne, and the Prime Minister tells me why we can't afford to
:38:30. > :38:32.Osborne, and the Prime Minister Labour. What Ed Miliband is doing is
:38:32. > :38:38.saying that his first act as Prime Minister would be to spend another
:38:38. > :38:44.dominating Manchester today, and are broadcasting live from the
:38:44. > :38:58.Bridgewater Hall as Tory party members gather in the Manchester
:38:58. > :39:07.conference. We will be talking to the Chancellor and MP for Tatton,
:39:07. > :39:12.George Osborne. First, I am joined by Professor Jon Tonge of Liverpool
:39:12. > :39:18.University. Where are the Tories Conservatives are in good spirits.
:39:18. > :39:21.They believe that the economic mess it has been vindicated and that
:39:21. > :39:24.They believe that the economic mess can achieve economic growth whilst
:39:24. > :39:27.cutting the deficit. They would argue that you cannot spend money
:39:27. > :39:33.the nation doesn't have. Chancellor must not appear like centre forward,
:39:33. > :39:40.it would only take one bad set of economic figures to perhaps fatally
:39:40. > :39:49.Conservatives but the message this week will be that we are on course
:39:50. > :39:54.Party's position in the North West. The Conservatives have 21 of 72
:39:54. > :40:04.seats in the region, although Nigel considered vulnerable battle ground
:40:04. > :40:12.seats. In the will collections the council and 16 seats. They also
:40:12. > :40:13.seats. In the will collections the Derbyshire, that as the economy
:40:13. > :40:17.recovers the polls are narrowing. Well, Chris Rider has been looking
:40:17. > :40:18.at the challenges facing the party eighteen months before the expected
:40:18. > :40:32.general election. Asking people eighteen months before the expected
:40:32. > :40:37.Conservative? No. The aid if I ask why? From Margaret Thatcher and
:40:37. > :40:41.everything, she brought the country down. I am a primary school teacher
:40:41. > :40:48.and I hate the new performance only Conservatives with the economy but
:40:48. > :40:53.you can't with Labour. David Skelton Conservative voters in Manchester.
:40:53. > :40:57.The party was once more popular Conservative voters in Manchester.
:40:57. > :41:01.but has not had an MP for 26 years. The Conservatives have hired his
:41:01. > :41:06.grip to boost the appeal across The Conservatives have hired his
:41:06. > :41:10.North. The Conservatives have had a major challenge for several decades,
:41:10. > :41:19.people living in cities and towns, Councillors in those cities and
:41:19. > :41:21.people living in cities and towns, is a major issue for them. They
:41:21. > :41:23.people living in cities and towns, show they are on the side of these
:41:23. > :41:32.groups of voters. Will this message Like businesswoman Mary Robinson? My
:41:32. > :41:37.details are here. She wants to take Cheadle from the Liberal Democrats
:41:37. > :41:41.in 2015 and says the party is making an impact. I find that people are at
:41:41. > :41:44.the seating what we are doing as a party, that people are seeing that
:41:44. > :41:50.the Conservatives are trying to deficit. It was four months ago
:41:50. > :41:52.the Conservatives are trying to the Conservatives lost control of
:41:52. > :42:00.luggage county council after four years in charge. —— Lancashire
:42:01. > :42:04.county council. There is maybe a perception about the North—South
:42:04. > :42:09.that a lot of the government is centred on the south, and people in
:42:09. > :42:15.the Northfield neglected. What do the Conservatives need to do address
:42:15. > :42:20.that? The need to come here more often. We try very often to get
:42:20. > :42:26.speakers, and it is very difficult. It is as though they cannot come
:42:26. > :42:30.Germany will prove crucial if the Conservatives are to get the return
:42:30. > :42:33.tickets to number ten. —— making of I'm joined now by the Chancellor and
:42:33. > :42:44.Tatton MP George Osborne. Thank I'm joined now by the Chancellor and
:42:44. > :42:46.programme. It is good to be here. In Haiti, do you think it is likely
:42:46. > :42:52.that we make tapping better off Haiti, do you think it is likely
:42:52. > :42:55.Labour 's economic plan than yours? No, Labour 's economic plan would
:42:55. > :42:58.have been an economic disaster for this country and you can see other
:42:58. > :43:01.countries in Europe who pursued this country and you can see other
:43:01. > :43:06.rate of knots dealing with their debts as they are any huge amount of
:43:06. > :43:08.trouble. We have turned a corner and the economy is growing, but of
:43:08. > :43:12.course we still have a long way the economy is growing, but of
:43:12. > :43:17.go and for many families it is still a difficult time. We have a small
:43:17. > :43:22.amount of economic both but if you would get the wider picture the
:43:22. > :43:25.British economy is still two and a half percent smaller than it was
:43:25. > :43:29.before the recession. Let's be clear, what happened in 2008 and
:43:29. > :43:34.2009 was an economic catastrophe for this country. Britain was made over
:43:34. > :43:39.by that event. We are recovering from it, we are fixing problems
:43:39. > :43:41.by that event. We are recovering dealing with their debts but look at
:43:41. > :43:45.the north—west. There are more people in jobs than there were three
:43:45. > :43:46.years ago, in deployment is lower, and police are investing in this
:43:46. > :43:51.part of Britain, so I would say and police are investing in this
:43:51. > :43:56.are making progress. —— companies something you said, that we are
:43:56. > :44:02.better off than other countries something you said, that we are
:44:02. > :44:09.are the country that has recovered the least of the G—7 other than
:44:09. > :44:13.Italy. We had the deepest recession of any country in the G—7. Biggest
:44:13. > :44:18.economic catastrophe. If you are better, I agree because Germany
:44:18. > :44:20.economic catastrophe. If you are the decision to use the good years
:44:20. > :44:23.to invest in infrastructure and education and do all the things
:44:23. > :44:25.to invest in infrastructure and didn't do when the sun was shining
:44:25. > :44:29.and I would say that we are now fixing these problems, helping here
:44:29. > :44:34.in the north—west big infrastructure projects in the trans—Pennine route
:44:34. > :44:39.and lots of road schemes happening here, but also helping by attracting
:44:39. > :44:43.big companies and small businesses to this area to create jobs. We
:44:43. > :44:45.big companies and small businesses come to that, but your big plan
:44:45. > :44:48.big companies and small businesses to balance the books and get rid of
:44:48. > :44:54.the deficit. The reality is that this has not worked. The officer but
:44:54. > :44:58.at any responsibility says that deficit production has stalled. The
:44:58. > :45:02.deficit is down by one third but it is still too high. It is not coming
:45:02. > :45:07.down at the rate trajectory. It is still too high. It is not coming
:45:07. > :45:11.fallen by one third, a huge amount of progress. We are having this
:45:11. > :45:13.interview any week when the Italian government is in real trouble, there
:45:13. > :45:17.is a problem in the US Congress government is in real trouble, there
:45:18. > :45:21.the budget problems, the debt crisis is still with us around the world.
:45:21. > :45:29.If you think that Britain can ease up when it still has this deficit
:45:29. > :45:33.alternative plan on offer, the so—called plan be more borrowing and
:45:33. > :45:39.more debt and more spending would be would have been less deeper cuts. In
:45:39. > :45:43.terms of your plan because you have not got the deficit down as you
:45:43. > :45:45.terms of your plan because you have you would it means there will be
:45:45. > :45:49.another two years of cuts. We have seen over the last week and police
:45:49. > :45:55.services are talking about more officers being cut because of that.
:45:55. > :45:59.Trend is down in this country so you can reform public services like
:45:59. > :46:01.Trend is down in this country so you police and schools to deliver a
:46:01. > :46:02.better service for the people who use these services and rely on them
:46:02. > :46:06.and indeed a better environment use these services and rely on them
:46:06. > :46:08.the people working in them. But use these services and rely on them
:46:08. > :46:14.you're telling me there is still a lot of work to do I completely agree
:46:14. > :46:17.with you. I am seeing that your plans are in schedule and they have
:46:17. > :46:21.not worked in the way you have told us they would. We are coming around
:46:22. > :46:25.and people are looking at Betton and seeing that this country is getting
:46:25. > :46:32.to grips with its problems. —— unbalanced economy were for over a
:46:32. > :46:37.decade we as a country took the unbalanced economy were for over a
:46:37. > :46:40.that we could lie on the city of London to provide all of the tax
:46:40. > :46:44.revenues and economic growth and places like the North West could be
:46:44. > :46:50.neglected. That was the liberal approach and I will not repeat it. I
:46:50. > :46:56.reality is that rebalancing the economy is not working. As it proved
:46:56. > :46:59.more difficult than you expected? This as a long—term challenge and
:46:59. > :47:09.you must invest in things like the HS two real link that will create
:47:09. > :47:13.jobs. —— high speeds to rail link. How will this benefit the Northwest
:47:13. > :47:18.more than the south? It will benefit the whole country, it will bring
:47:18. > :47:24.much regeneration to be any avid thousands of jobs in this city,
:47:24. > :47:30.much regeneration to be any avid Birmingham and London and to the
:47:30. > :47:35.investment that this country needs to make, it is the sort of thing
:47:35. > :47:39.that everyone back on disputed in ten or 20 years time ITV did not do
:47:39. > :47:50.this kind of thing we would regret Northwest economy but it would not
:47:50. > :47:55.advantage than London other side. It would, it would change the economic
:47:55. > :47:59.geography of the country and make this an attractive place to invest
:47:59. > :48:03.and grow business and employ people. It is one of the number of things we
:48:03. > :48:07.must do as a country to ensure that we are not putting all of our bets
:48:07. > :48:10.on London. That is what Gordon Brown and Tony Blair and Ed Balls at Ed
:48:10. > :48:16.Miliband dead and that was a huge mistake. You said we need to get
:48:16. > :48:23.manufacturing going and we still you're telling me that this country
:48:23. > :48:27.has problems that need solving and I would be the first to agree with
:48:27. > :48:34.you. What I saying is, when will the them? Manufacturing is growing,
:48:34. > :48:35.you. What I saying is, when will the we must do a lot more because over
:48:35. > :48:38.the past 15 years manufacturing we must do a lot more because over
:48:38. > :48:42.halved as a share of our economy. This country needs to make things
:48:42. > :48:46.that the rest of the world wants to buy, and the good news as we are
:48:46. > :48:52.making these things though and that is part of BB balancing of our
:48:52. > :48:55.economy. You must fix the long—term problems as well as the immediate
:48:55. > :49:00.problem is that the financial crisis brought about. One of those problems
:49:00. > :49:04.was unemployment. You have mentioned that but you haven't told us was
:49:04. > :49:06.that unemployment nationally is marginally down from when you became
:49:06. > :49:10.Chancellor, in the Northwest it marginally down from when you became
:49:10. > :49:14.marginally up. I would say that there are more jobs you are the
:49:14. > :49:21.Chancellor, but we need to do more and I expect more companies to come
:49:21. > :49:25.to the Northwest and expand and create jobs, I would expect more
:49:25. > :49:29.Company is to be able to do that, I think we will have better news on
:49:29. > :49:34.the jobs front in the weeks ahead. I businesses are able to create jobs,
:49:34. > :49:38.jobs are there for people and people have the rate skills to take those
:49:38. > :49:40.jobs. That is the fundamentals of getting the economy working. Thank
:49:40. > :49:44.you for your time and thank you getting the economy working. Thank
:49:44. > :49:47.Well, that's the view from the top of the party, time now to cross
:49:47. > :49:49.Well, that's the view from the top to the conference centre itself
:49:49. > :49:59.Well, that's the view from the top join Stuart Pollitt who's with some
:49:59. > :50:02.starting to fill up with delegates. They are looking around the various
:50:02. > :50:06.conservative stalls and helping themselves to a jacket or trinkets.
:50:06. > :50:12.We have heard from George Osborne and David Cameron, what did people
:50:13. > :50:17.on the ground think. I am joined by two Conservative party members,
:50:17. > :50:18.on the ground think. I am joined by and Alison. Poll, if there's one
:50:18. > :50:22.thing he wants to hear, what is and Alison. Poll, if there's one
:50:22. > :50:26.I want to hear what the Conservative government will do for cost of
:50:26. > :50:27.living and how they will help people in my area actually get more money
:50:27. > :50:31.in their pocket and states that in my area actually get more money
:50:31. > :50:35.further when the going shopping every week. That is what I want
:50:35. > :50:39.further when the going shopping hear. Allison, what about you? The
:50:39. > :50:41.economy is back up and running and we are getting there but my work is
:50:41. > :50:46.very much a riddle ought and we we are getting there but my work is
:50:46. > :50:47.to see more benefit for smaller businesses and independence traders.
:50:47. > :50:57.—— rule award. Pol, what is the businesses and independence traders.
:50:57. > :51:02.topic —— the hot topic in your code is immigration, what are people
:51:02. > :51:06.multicultural area but even the ethnic members are seeing that they
:51:07. > :51:09.want control and immigrations and they want to ensure that we know
:51:09. > :51:13.who's coming to the country at the acid to come here. That we are
:51:13. > :51:17.controlling the number of people coming to the area, because we don't
:51:17. > :51:24.know what will happen. The change in make up is actually making pensions
:51:24. > :51:30.saw in all the married one with tensions there, we don't want that
:51:30. > :51:37.again. —— we saw in all time. We want to make sure we have the right
:51:37. > :51:42.people coming in. Alison, planning as a big topic for you? Yes, as
:51:42. > :51:48.people coming in. Alison, planning mentioned we are very rural, added
:51:48. > :51:53.my bottle we have a nut —— in my development to 2026 but when we
:51:53. > :51:57.refuse planning applications and the big developers are going to be
:51:57. > :52:09.decisions by local councillors are getting overturned and we need to
:52:09. > :52:13.planning. Thank you very much. There are plenty of things on sale here, I
:52:13. > :52:22.have picked up some here. Our Maggie beer. If you fancy that. And perhaps
:52:22. > :52:26.a little iron Lady baby bed. Proof that the future of the party is
:52:26. > :52:30.a little iron Lady baby bed. Proof the agenda. They have not forgotten
:52:30. > :52:37.their past, either. Thank you very much. What did you make of what
:52:37. > :52:41.their past, either. Thank you very Chancellor had to say? Be Chancellor
:52:41. > :52:48.talked up the recovery, but he did not mention the high business death
:52:48. > :52:52.businesses feel every year. He did not say whether he would help the
:52:52. > :52:58.high Street, which has been badly affected by online shopping. We
:52:58. > :53:02.businesses with a business rate evaluation. There is more to be
:53:02. > :53:04.businesses with a business rate in the Chancellor must be careful
:53:04. > :53:11.this week that he does not overtop the recovery given the pain that
:53:11. > :53:16.people have experienced. The top dog the kind of work that they are
:53:17. > :53:19.trying to do in the Northwest in terms of regeneration projects.
:53:19. > :53:24.trying to do in the Northwest in he talked up. There was not much
:53:25. > :53:27.talk of national rebalancing. We are to public sector dependent you in
:53:27. > :53:33.the Northwest and must develop the private sector. There have been
:53:33. > :53:40.45,000 job stated here but we are still overdependent on the public
:53:41. > :53:43.sector. Unemployment is too high. We have heard from the other main
:53:43. > :53:47.parties leaders over the past couple of weeks, today it is time to speak
:53:47. > :53:52.to David Cameron. I interviewed of weeks, today it is time to speak
:53:52. > :53:55.in Downing Street and bigger by asking him about another difficult
:53:55. > :54:01.electoral year in which the party lost control of Lancashire county
:54:01. > :54:05.It is a council that we won in a huge swing when we were opposition,
:54:05. > :54:09.with all of the difficult decisions in government you sometimes lose
:54:09. > :54:13.some support. It is a council that had not been Labour for a long time
:54:13. > :54:15.and of course they did not win outright but that is more comfort
:54:15. > :54:19.for people in my fisher who were benefiting from the council tax
:54:19. > :54:24.rises and from a good Conservative council. We must go on and win the
:54:24. > :54:31.argument and that is what this wanted to ASCII about Ed Miliband
:54:31. > :54:37.last week he announced that he will repeal the Bedroom Tax if he came
:54:37. > :54:45.into government. Hardly aware of how unpopular that policy is in part of
:54:45. > :54:49.Many of policies are popular but we're an enormous deficit and we
:54:49. > :54:55.must get it under control. People want to see us reform welfare have
:54:55. > :54:59.cut the cost of it anyway that is fair. When I look at the spare room
:54:59. > :55:02.subsidy the point I think of is this, that we do not subsidise
:55:02. > :55:05.people for additional spare ribs and private sector accommodation when
:55:05. > :55:09.they are on housing benefits and we should not get people back to money
:55:09. > :55:12.for spare rooms when they are in council accommodation. What Ed
:55:12. > :55:14.Miliband is doing is saying that his first act as prime minister would be
:55:14. > :55:20.to spend another billion pounds first act as prime minister would be
:55:20. > :55:24.welfare, putting up a deficit, more exactly the things that got us into
:55:24. > :55:27.this mess. Let me ask you about exactly the things that got us into
:55:27. > :55:31.practicality. In a region there exactly the things that got us into
:55:31. > :55:35.actually a lack of one—bedroom properties. If people are being
:55:35. > :55:40.forced out of homes with a spare bedroom, it means that they are
:55:40. > :55:41.actually going into the private sector and ending up having to pay
:55:41. > :55:47.more. There are two things that sector and ending up having to pay
:55:47. > :55:51.happen, there is the opportunity to go into private rented accommodation
:55:51. > :55:53.and there is also the opportunity to rearrange the way we use council
:55:53. > :55:58.housing and housing association housing so we make sure that more
:55:58. > :56:03.people can have the housing that is appropriate for them. There is not
:56:03. > :56:12.enough of it, Prime Minister. Kill not forget the hundreds of thousands
:56:12. > :56:16.of people across the Northwest who live in overcrowded accommodation
:56:16. > :56:20.who would love a house or flat that as a spare room because they can use
:56:20. > :56:23.it. We should remember the people who do not have housing on the
:56:23. > :56:27.housing list as well as those who are losing the spare room subsidy.
:56:27. > :56:30.The argue that —— the argument you hear from councils in places like
:56:30. > :56:34.Liverpool is that the cuts have hear from councils in places like
:56:34. > :56:37.them harder than other parts of hear from councils in places like
:56:37. > :56:41.country and that they are really struggling to provide the services
:56:41. > :56:45.they need to provide. I don't accept that, we have tried to be fair
:56:45. > :56:48.across the cities, the ruble areas, the north and south. If I look at
:56:48. > :56:59.Manchester then the spare room —— Manchester is £2600, some £400 ahead
:56:59. > :57:01.of the average for England. That is right because there are special
:57:01. > :57:07.issues that must be addressed. That is why they get more money. That is
:57:07. > :57:10.£400 more than the average, per house throughout the Manchester
:57:10. > :57:14.£400 more than the average, per Council area. That is fair. Hardly
:57:14. > :57:19.aware of the problems that appeared universal credit which is being
:57:19. > :57:23.piloted in part of a region? Of course I am following this very
:57:23. > :57:27.closely, it is an enormously, aided reform on one level because you
:57:27. > :57:29.closely, it is an enormously, aided replacing many benefits, housing
:57:29. > :57:33.benefit and working tax credit and income support with one credit,
:57:33. > :57:35.benefit and working tax credit and info is very good and simple which
:57:36. > :57:39.is to make sure you are always better off in work and always better
:57:39. > :57:44.off if you work extra hours. That you do not fall into a poverty trap.
:57:44. > :57:47.I make no apology for taking it slowly but the idea that you are
:57:47. > :57:52.always better off in work is a good one. Thank you very much. That was
:57:53. > :57:57.the prime minister talking to me in Downing Street ahead of the party
:57:57. > :58:01.conference. I asked him about the loss of life is a county council, he
:58:01. > :58:04.played it down. I worried well the party be? Elmer very worried. You
:58:04. > :58:10.must member that UKIP was not a party be? Elmer very worried. You
:58:10. > :58:16.elections so they cannot blame defections to UKIP for a seat they
:58:16. > :58:19.can grab back at the general. You also have the Lord Ashcroft survey
:58:19. > :58:23.of the modules which suggests that Labour is doing better and you also
:58:23. > :58:28.have the Yugo survey would suggest that Labour is enjoying a salad
:58:28. > :58:34.have the Yugo survey would suggest its own party conference. Partly
:58:34. > :58:37.because of the pledge on energy prices. You can win an election
:58:37. > :58:42.because of the pledge on energy a steady but slow recovery message,
:58:42. > :58:46.Conservatives are looking to enthuse the election more. Why has the party
:58:46. > :58:51.been struggling in those marginal seats? What is it they don't like
:58:51. > :59:03.that the government has been doing? immigration. The Conservatives have
:59:03. > :59:03.the problem with UKIP and also people seeking clarification on
:59:04. > :59:08.David Cameron on what the terms people seeking clarification on
:59:08. > :59:11.renegotiation will be in terms of what happens in 2017 when we head
:59:11. > :59:15.towards referendum on Europe should the Conservatives be elected. There
:59:16. > :59:17.are still severe problems in terms of European immigration that the
:59:18. > :59:27.Time for the rest of the week's of European immigration that the
:59:27. > :59:30.Commissioner Clive Grunshaw says he won't resign over allegations he
:59:30. > :59:37.fiddled his expenses. The Labour party's suspended him but he denies
:59:37. > :59:42.Merseyside Police expect to lose another thousand officers as public
:59:42. > :59:54.is unacceptable to put the police at 1120 unable to perform their duties.
:59:54. > :59:57.It is a step too far. You are on the wrong track. That's the view of
:59:57. > :00:01.Manchester City Council Leader Sir Chancellor Ed Balls suggested Labour
:00:01. > :00:03.might withdraw support for high The latest standoff between the
:00:03. > :00:05.Mayor of Liverpool Joe Anderson The latest standoff between the
:00:05. > :00:08.the Communities Secretary Eric Pickles, this time over government
:00:08. > :00:15.intervention into plans for the Welsh Streets, where Ringo Starr
:00:15. > :00:18.once lived. It is a nightmare to live in a situation, all of the
:00:18. > :00:23.residents have lived on —— lead live in a situation, all of the
:00:23. > :00:25.And building a new future — the live in a situation, all of the
:00:25. > :00:38.District National Park has created zones where more than 400 new homes
:00:38. > :00:44.can be built. John, there is a big march to pass in a few hours from
:00:44. > :00:49.the TUC, how much does that kind of thing worry the Conservatives? The
:00:49. > :00:54.idea that the Northwest has been harder hit by public sector cuts?
:00:54. > :01:00.The Conservatives will only be worried by the TUC demonstration if
:01:00. > :01:05.dismissive of the demonstration outside, arguing that they have
:01:05. > :01:25.So, we'll David Cameron's marriage tax break win over voters? How will
:01:25. > :01:36.So, we'll David Cameron's marriage conference initiatives? And what is
:01:36. > :01:41.UKIP leader Nigel FarageFarage up to with the Tories in Manchester?
:01:41. > :01:56.On this business of a possible Tory- UKIP pact, in a general election,
:01:56. > :02:02.let's see what David Cameron had to say about that earlier. I am not
:02:02. > :02:05.looking for a packed. I think we need to give people a clear choice
:02:05. > :02:09.at the general election. The British economy has turned a corner. We
:02:09. > :02:11.at the general election. The British on the right track, we are seeing
:02:12. > :02:15.more jobs, new businesses, we are beginning to get things moving
:02:15. > :02:20.again. Do you want to stick with us, hard-working people, or do you want
:02:20. > :02:25.to put it at risk with Ed Miliband hard-working people, or do you want
:02:25. > :02:32.and his crazy plans to tax business out of existence? That was the Prime
:02:32. > :02:39.there any appetite on the UKIP side discussions around the country,
:02:39. > :02:50.there any appetite on the UKIP side would say no. It's being discussed,
:02:50. > :02:53.is the media that is pushing this. It has reflected what has happened
:02:53. > :02:59.conference season began. Labour It has reflected what has happened
:02:59. > :03:05.trying to reclaim what I would call position. I'm not sure what the
:03:05. > :03:11.Liberal Democrats or two, but the Conservatives are trying to react to
:03:11. > :03:16.accusation they are lurching more to the right, which the media wants to
:03:16. > :03:20.able to do some sort of pact with interpret as them possibly being
:03:20. > :03:26.able to do some sort of pact with UKIP. Have you given any thought to
:03:26. > :03:33.whatsoever. It is not on the radar. I have read comments, including
:03:33. > :03:39.Carswell, the Eurosceptics, that they might form a potential, let's
:03:39. > :03:43.call it, you know, cabinet. If there were UKIP members, I don't doubt
:03:43. > :03:46.that Nigel Farage would be one of them. But I would reiterate it is
:03:46. > :03:54.not discussions that are taking place. I am thinking more of an
:03:54. > :03:58.have responded to that by saying, the moment, there are no ongoing
:03:58. > :04:05.discussions. There is certainly constituency level or coming out of
:04:05. > :04:14.believe any constituencies are Eurosceptics? I am not privy to
:04:14. > :04:16.believe any constituencies are all 360 constituencies might be
:04:17. > :04:22.discussing. All I can do is give you the example of the few I have seen
:04:22. > :04:24.and know it is not on the agenda. Without a pact, it is perfectly
:04:24. > :04:29.possible that you could fail to Without a pact, it is perfectly
:04:29. > :04:34.a single seat at the next election, but put Ed Miliband into Downing
:04:34. > :04:36.Street? Categorically not. There are a number of seats out there that are
:04:36. > :04:53.very clear marginals, just like a number of seats out there that are
:04:53. > :04:58.Izzard was. I believe there could be an MP -- just like Eastleigh was. If
:04:58. > :05:02.you take enough votes away from an MP -- just like Eastleigh was. If
:05:02. > :05:07.Tories, if you make sure that Labour wins? I will go back to the comment
:05:07. > :05:12.I made. If you take Eastleigh as an example, a Liberal Democrat held
:05:12. > :05:17.seat, even after that result, does not mean that UKIP is suddenly going
:05:17. > :05:21.to be focusing on Tory seats. We are out there because people resonate
:05:21. > :05:24.with our message. For the Liberal Democrats to make it abundantly
:05:24. > :05:27.clear that they will not support a referendum, that they will not
:05:27. > :05:31.support any discussion on leaving the queue, that could be a big
:05:31. > :05:33.turn-off for voters. David Cameron says there is not going to be a
:05:33. > :05:36.pact, Diane James says there is says there is not going to be a
:05:37. > :05:39.going to be one. There might be says there is not going to be a
:05:39. > :05:41.or at a constituency level. But says there is not going to be a
:05:41. > :05:46.seems clear to me that there will not be a national one. So, does
:05:46. > :05:49.David Cameron have a UKIP strategy? The only encouraging thing for
:05:49. > :05:51.UKIP's successful David Cameron that the moment that he would only
:05:51. > :05:55.that their support is so enormous that the moment that he would only
:05:55. > :05:58.really need to win back maybe a third or a quarter of its to make a
:05:58. > :06:02.decisive difference to the Tory share of the vote in 2015. The
:06:02. > :06:07.question becomes, how much of that UKIP support is up for grabs? A
:06:07. > :06:09.question becomes, how much of that last week suggested that 47% of
:06:09. > :06:13.current UKIP voters would consider voting Tory if it meant preventing
:06:13. > :06:19.Ed Miliband becoming Prime Minister. That number goes up to 57% against
:06:19. > :06:25.recovery. So, plausibly, there is secondary question is, what does
:06:25. > :06:29.David Cameron do to win over those people? He has tried a Europe will
:06:29. > :06:33.referendum and it didn't work. He tried travelling up his immigration
:06:33. > :06:38.policy and that didn't work. I wonder if it is time. You wait until
:06:38. > :06:44.the run-up to 2015, when they start to focus on the explicit choice
:06:44. > :06:52.Cameron, and that is what shifts a Cameron. We heard from William Hague
:06:52. > :06:56.earlier in the programme, the Tory line is that if you vote UKIP you
:06:56. > :07:01.could end up with Ed Miliband in Downing Street. That is the simple
:07:01. > :07:08.appeal, isn't it? Yes, and I think Diane is right, I think the European
:07:08. > :07:12.elections will show a good showing for UKIP. It is deemed the one where
:07:12. > :07:14.you can play away. I think it will be hard for people to get excited
:07:14. > :07:20.about that, I think that bounce be hard for people to get excited
:07:20. > :07:26.fade away. In Eastleigh, they had a good ground game, that is difficult
:07:26. > :07:28.for UKIP, that don't have that machinery sorted. How are they going
:07:28. > :07:33.to fund that operation? But the machinery sorted. How are they going
:07:33. > :07:39.bounce could fade away after the European elections. Even if they go
:07:39. > :07:43.election, they are still immensely dangerous to the Conservative Party.
:07:43. > :07:47.But there is really only two things David Cameron can do. One is to
:07:47. > :07:49.But there is really only two things boring and talk about helping people
:07:49. > :07:54.with their mortgage, helping with bread and butter issues. The second
:07:54. > :07:57.thing is, those European actions, he tends to the natural Conservative
:07:57. > :07:59.voters and says, you have had your fun, next year do you want me or Ed
:07:59. > :08:03.Miliband us your prime and? The fun, next year do you want me or Ed
:08:03. > :08:07.danger with David Cameron is saying, of course, there is not going to be
:08:07. > :08:13.a pact, the danger is you will get a repeat of the 1977 election. John
:08:13. > :08:19.Major said, famously, do not bind my hands. A series of Conservative
:08:19. > :08:24.personally rule out membership of the euro, when the Conservative
:08:24. > :08:25.membership was wait and see. That looked like a Prime Minister not in
:08:25. > :08:31.charge of his party. The danger looked like a Prime Minister not in
:08:32. > :08:34.Let's assume you do really well looked like a Prime Minister not in
:08:34. > :08:41.the European actions and there is a widespread expectation that you
:08:41. > :08:44.will, even in Downing Street. They might be managing expectations.
:08:45. > :08:47.will, even in Downing Street. They stops you fading away as the general
:08:47. > :08:50.election approaches? A number of reasons. As has been mentioned,
:08:50. > :08:52.election approaches? A number of whole issue of the referendum pledge
:08:52. > :08:59.has been proved to be an absolute nonsense. It is so contingent on if
:08:59. > :09:07.I am re-elected, if it's not a coalition government, is, if, if.
:09:07. > :09:08.That was fooled nobody. The issue of where voters are coming from, it is
:09:08. > :09:12.because they have lost faith in where voters are coming from, it is
:09:12. > :09:19.David Cameron says. There is nothing he is going to say that is convince
:09:19. > :09:21.think that is my view and the view of a lot of UKIP. I am told that
:09:21. > :09:29.they have expunged Nigel Farage of a lot of UKIP. I am told that
:09:29. > :09:33.the fringes? It is a great scoop, on the front page. They are outside the
:09:33. > :09:38.ring of steel. Even so, they won't programme, so they must be worried
:09:38. > :09:43.paid money for adverts in the Tory about something. His people have
:09:43. > :09:43.paid money for adverts in the Tory brochure and his name has been taken
:09:43. > :09:48.out. Speaking of people the Tory brochure and his name has been taken
:09:48. > :09:53.leadership is worried about, Boris Johnson, are we in any doubt as
:09:53. > :09:59.leadership is worried about, Boris interview that he is now beginning
:09:59. > :10:01.his long march back to Parliament? He does express feeling slightly sad
:10:01. > :10:04.during the Syria debate that he He does express feeling slightly sad
:10:04. > :10:10.not there, on the political front line to participate. I still do
:10:10. > :10:14.not there, on the political front see why it is in his interest is to
:10:14. > :10:17.move before 2015. No, I don't think he will move before, I think he
:10:17. > :10:17.move before 2015. No, I don't think sending a signal to the existing
:10:17. > :10:29.Tories in the Commons that when sending a signal to the existing
:10:29. > :10:33.Me Dave goes, I will be back? He has the Vince Cable problem, if you
:10:33. > :10:36.Me Dave goes, I will be back? He has the same thing too many times,
:10:36. > :10:40.people get bored and factor it in. The interesting thing is him saying
:10:40. > :10:45.that people have seven years before the electorate get bored of them. He
:10:45. > :10:48.might be cresting that. He doesn't want to be Prime Minister, he is
:10:48. > :10:55.much more ambitious than that. He wants to be an emperor. He was
:10:56. > :11:02.asked, which Roman emperor would you like to be compared to? You said,
:11:02. > :11:09.important. I don't think you are thinking big enough. See what I
:11:09. > :11:09.important. I don't think you are to put up with, every Sunday? By
:11:09. > :11:14.virtue of being born in the US, to put up with, every Sunday? By
:11:14. > :11:24.could be president. Unlike Arnold Schwarzenegger. How about a deal
:11:24. > :11:27.with Boris? He has made no secret, after Eastleigh, that he would be
:11:27. > :11:31.open to a discussion. Let's call it no more than a discussion. He has
:11:31. > :11:36.been adamant, however, he does not see any reason, any justification or
:11:36. > :11:42.any opportunity where he would be able to have that discourse with
:11:42. > :11:45.any opportunity where he would be David Cameron. Maybe it comes down
:11:45. > :11:49.to that on both sides. I've no idea. We know that the Tories will be
:11:49. > :11:52.to that on both sides. I've no idea. more Eurosceptic after the next
:11:52. > :11:56.election? I can't imagine David Cameron's successor will be somebody
:11:56. > :12:04.that supports EU membership in ideological direction of the party.
:12:04. > :12:05.The leadership contest will be about 2018. If you are standing, when
:12:05. > :12:12.this is a great deal for Britain membership, are you going to say
:12:12. > :12:14.this is a great deal for Britain because the Prime Minister has
:12:14. > :12:17.turned to leave rapid change two words in the working Time directive,
:12:17. > :12:20.turned to leave rapid change two or are you going to become a leader
:12:20. > :12:32.by saying, I want out? What would be a good conference for David Cameron
:12:32. > :12:36.eye-catching announcement related to living standards. May be a clearer
:12:36. > :12:41.line on energy prices? That would certainly help, that fightback has
:12:41. > :12:44.been rubbish so far. The thing we should be looking out for are not
:12:44. > :12:48.the polls immediately after, but the ones about the end of October, when
:12:48. > :12:53.everything gets to settle down and then we will see what happens. In a
:12:53. > :12:57.word, what is Nigel Farage out to get at the Tory conference? What is
:12:57. > :13:05.he doing, other than mischief? I could almost say revenge. Revenge on
:13:05. > :13:11.Mr Cameron? Yes. You know? Lord Ashcroft was there at the Labour
:13:11. > :13:15.conference. You call it mischief, but there is every reason why he
:13:15. > :13:19.should be there. We all call it mischief. Thanks for being with
:13:19. > :13:22.should be there. We all call it Join me on Daily Politics for live
:13:22. > :13:26.coverage of the Conservative Party conference tomorrow morning from
:13:26. > :13:30.11:30 on BBC Two. We will bring conference tomorrow morning from
:13:30. > :13:34.George Osborne's speech live and uninterrupted. I'll be back next
:13:34. > :13:35.weekend when guests will include former Conservative Chancellor
:13:35. > :13:38.Kenneth Clarke. Remember, if it former Conservative Chancellor
:13:38. > :13:40.Sunday, it's the Sunday Politics.