Mr Davey: My hon. Friend is absolutely spot on. I believe that the climate change science is unambiguous

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and that we have to act on that basis, but he is absolutely right: there are other reasons to invest in low carbon and energy efficiency. It is important that this country takes a lead on climate change by working with EU colleagues to reform the EU ETS and the European carbon market, by including the decarbonisation target in the Energy Bill, which we have done, and by taking various other measures. Other countries are looking at our measures on electricity market reform and our green deal because they believe that we are leading the way.

All those measures are critical in the run-up to 2015, which is when the climate change talks will take place in France, probably in Paris. During the climate change talks in Durban in 2011 the world agreed to sign a legally binding global treaty at the climate change talks in 2015. This will be a critical moment in the global battle against climate change. We need to ensure that our international legal obligations apply to everyone in the world, not just to Europe or the Kyoto protocol nations. Having agreed in Durban to do that in 2015, we now have to prepare the way to make it a success. Our work here and with the EU is critical because it will enable us to sign a treaty in 2015.

Whether we are trying to keep down costs for people or creating jobs, the package of measures introduced by the Government—not just my Department or the Department for Communities and Local Government, overseen by my right hon. Friend the Secretary of State—are focused on helping people in our country. On the longer-term challenges, we have rejected short-term fixes and the siren calls of vested interests. If we are interested in building a new and sustainable economy, we must make it a low-carbon economy and consider the long-term challenges.

I am grateful to the Opposition for how they have debated energy policy over recent months, particularly on the Energy Bill. I have seen a desire to build a consensus, which is really important, because investment to tackle our energy challenges and climate change are, by their very nature, long term, and the investment framework that one builds needs to span not just one Parliament or one Government, but several Parliaments and Governments into the foreseeable future. Building a consensus is critical for successful policies that are as cheap and effective as possible. I look forward to hearing what the right hon. Member for Don Valley (Caroline Flint) has to say. I am sure that she wants to add to that consensus.

1.42 pm

Caroline Flint (Don Valley) (Lab): I beg to move an amendment. At the end of the motion add:

‘but believe that the Gracious Speech offers no answers for squeezed households facing a cost of living crisis; regret that the economy is flatlining, unemployment is rising, borrowing is set to be £245 billion more than planned and the Office of Budget Responsibility has confirmed that by 2015 people will be worse off than they were in 2010; and call on your Government to take real action to get people back into employment, build more affordable homes, tackle rising energy and water bills, tackle the growing cost of getting to work and instability in private sector housing rents and tenancies and end extortionate letting agents’ fees and charges.’.

We debate the Queen’s Speech at a time of crisis for millions of people in our country. This was a golden

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opportunity for the Government to show that they were in touch with the nation’s concerns and that they would help with the rising cost of living and offer hope to families who are seeing their dreams evaporating with every year that passes. But this Queen’s Speech will not take the pressure off the squeezed middle, lessen the anger of commuters powerless to halt the relentless rise of rail fares or address the choice between heating and eating for our most vulnerable senior citizens. For the shop worker whose hours have been cut, putting them with the 1.5 million people who are part-time through no choice of their own, for the middle manager workless for the first time at 50, for the design graduate offered only unpaid internships and for the parents whose child is still living with them at an age when they should have a home of their own, this Queen’s Speech has only confirmed what they dreaded: jobs and growth will have to wait and living standards will continue to fall.

While the wealthiest 1% will see their earnings rise with the Chancellor’s spring bonus, everyone else will have to settle for less. They will be expected to make ends meet, cut corners, postpone the holiday and perhaps join the 5 million families who, according to Which?, use credit or savings to pay for food. The Queen’s Speech is not just a missed opportunity, but a denial of the power of Government to change lives for the better. I believe that Government can stimulate jobs, foster growth, encourage investment and skill a work force for today’s jobs and those of tomorrow, but not if the golden rule, at every turn, is to cut the deficit first, whatever the impact, cost and evidence.

Andrew Selous (South West Bedfordshire) (Con): Of course, the right hon. Lady is right that the employment market is tough for many people, but in these difficult times, will she welcome the fact that there are now 750,000 more people in work than when her Government left office and that the UK’s overall employment rate is growing at twice the rate of the United States’ and is the fastest growing of any G7 country? That is not a bad record in tough times.

Caroline Flint: The Prime Minister promised change, but things have got worse, not better. He inherited an economy in which growth had returned, inflation was low, unemployment was falling and borrowing was lower than forecast. Today the economy is still flatlining, with more people out of work than when he became Prime Minister, the slowest economic recovery for more than 100 years, prices rising faster than earnings and real wages down £1,700 since 2010, while energy bills, train fares and the cost of a weekly shop have spiralled out of control.

Andrew Gwynne (Denton and Reddish) (Lab): My right hon. Friend is right to mention train fares. The Government talk a lot about reducing the cap to 1%, but is not the truth that they have removed the ban on so-called flexibility, meaning that train companies can now increase their ticket prices by as much as 5% above the retail prices index, which was something the Labour Government removed?

Caroline Flint: My hon. Friend is absolutely right, which is why our amendment puts forward an alternative to the Government’s proposal that would help commuters.

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Meg Hillier: Will my right hon. Friend add to her list the trap that many of my constituents find themselves in, not earning an £81,000 salary and unable to afford the £17,000 deposit on an average-priced property—generation rent trapped in an unregulated private rented sector? What comfort are the Government giving them?

Caroline Flint: They are offering them no comfort, and I will address that issue later, as too will my right hon. Friend the Member for Leeds Central (Hilary Benn).

Even by the Government’s own tests, they have failed to face up to the stark reality that whatever the intention, after all the cuts, pain and hardship, the plan is not working. The credit rating test was to ensure our triple A status, but that has been downgraded by not one, but two agencies. The borrowing test was to eliminate the deficit by the election, but that is £245 billion off course. Struggling families, pensioners and businesses cannot afford another two years of stagnation, so the challenge for the Government in this Queen’s Speech was to get our economy back on track, get people back to work and stop the slide in people’s living standards.

Jacob Rees-Mogg (North East Somerset) (Con): Will the right hon. Lady tell us something that the Labour Front-Bench team have been reluctant to tell us, which is how much higher borrowing would be if Labour was in charge and what effect that might have on interest rates?

Caroline Flint: I am afraid to say that the Chancellor’s spending cuts and tax rises, which went too deep, too fast, have left our economy flatlining. As I said, the Government are borrowing £245 billion more than they planned. [Hon. Members: “Answer the question!”] I am going to. That is why we have called for infrastructure investment to be brought forward and for a temporary cut in VAT as part of Labour’s five-point plan for jobs and growth. These measures would lead to a short-term rise in borrowing, but getting growth and confidence back into the economy from a boost such as the VAT cut and investment such as in the building of affordable homes would increase our tax revenues, help reduce the welfare bill and see borrowing fall in the medium term.

Seema Malhotra (Feltham and Heston) (Lab/Co-op): Does my right hon. Friend agree that that much-needed boost to the economy is precisely the message of encouragement that young people in this country need? It is a damning indictment of the Government’s policies that more than 1 million young people are unemployed.

Caroline Flint: My hon. Friend is absolutely right, but we are not just about providing answers on jobs—we would expect something back too—which is why, under our jobs guarantee, if someone did not take a job, they would lose benefits.

Several hon. Members rose

Caroline Flint: I want to make some progress, because there are only six minutes per speech, and I am sure that many right hon. and hon. Members want to get in.

Let us take a closer look at the real lives of hard-working Britain. On energy bills, the facts speak for themselves. In just three years, bills have risen by more than £300, and, despite falling between 1997 and 2010, fuel poverty

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is now increasing sharply. There has been a doubling in the number of pensioners dying from hypothermia compared with five years ago. What have the Government done about it? The Secretary of State mentioned the energy company obligation, the ECO. But less than half the budget of that will go to people in fuel poverty. He has tried to claim credit for the warm home discount, but he will not want to talk about the hundreds of thousands of low-income families with children that are missing out on help. He mentions the green deal, which is going so well that the Government still will not tell us how many people have taken out a package.

But one thing I am sure he does want to talk about is the Prime Minister’s now infamous pledge to force the energy companies by law to put everybody on the cheapest tariff. I will not forget Wednesday 17 October 2012 when the Prime Minister said:

“I can announce…that we will be legislating so that energy companies have to give the lowest tariff to their customers.” —[Official Report, 17 October 2012; Vol. 551, c. 316.]

It sounded great; it is a shame his own Ministers did not know about this announcement until it happened. When the Government finally published their proposals in February, it confirmed what we knew all along; that this was an impossible promise from an out-of-touch Prime Minister making it up as he went along.

You do not have to take my word for it, Mr. Speaker. We can look at the Government’s Energy Bill, which categorically does not require the energy companies to put everybody on the cheapest tariff. All it says in clauses 121 to 124 is that the number of tariffs the energy companies are allowed to offer will be limited and that those tariffs may have to be standardised, and that customers will have to be provided with more information about cheaper deals. If the Secretary of State disagrees, I am more than happy to let him intervene to tell us that all energy companies will be required by law—as the Prime Minister promised—to put everyone on the cheapest tariff, the date on which the switchover will happen, how many of 22 million households will be affected and how much money on average they will save.

Mr Davey: We are legislating to make sure that people will be on the lower tariffs, given their preferences. The right hon. Lady always refuses to mention that. I believe that there is room for choice and to respond to people’s preferences.

Caroline Flint: There we have it, Mr Speaker. They cannot explain it because it was a false promise. The Prime Minister told this House 12 times that his Government would legislate to put everyone on the cheapest tariff; that is just not going to happen.

Jim Dowd (Lewisham West and Penge) (Lab): My right hon. Friend will be aware of the great potential of smart metering to reduce people’s bills. Is she as disappointed as I am, and the rest of the country, that the Government have now delayed the roll out of smart metering by 12 months?

Caroline Flint: Yes, further delays to that programme were announced last week. Whether it is smart metering, the green deal or changes to the feed-in tariffs, we have

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seen one mistake after another and bad handling of what should be very good policies not just for consumers, but for creating jobs and growth in this country.

Curbing the costs of energy for Britain’s households is very important, but the Government have introduced an energy market reform Bill that does nothing to reform the energy market. They have cut winter fuel payments for pensioners, despite promising not to. They have halved the fuel poverty budget while claiming it is bigger and better than ever. They have closed Warm Front, which helped well over 2 million households to insulate their homes. They stand proudly as the first Administration since the 1970s not to have a Government-funded energy efficiency scheme.

If this was our Queen’s Speech, we would be providing real help now for people and reform of the energy market for the long term. Here are three Labour policies that we would have included. [Interruption.] Well, we have been mentioning all these policies for the past year and this is another opportunity to confirm them again. First, elderly customers, who are most vulnerable to the cold weather and most at risk of fuel poverty, are among the least likely to be able to access the cheapest online deals or to switch supplier. We would put that right and put all those over 75 on the cheapest tariff for their gas and electricity. If we did that, as many as 4 million pensioners—including nearly 8,000 in the Secretary of State’s own constituency—could save as much as £200 a year off their bills. [Interruption.] The Minister of State, the right hon. Member for Bexhill and Battle (Gregory Barker), might like to listen, as I am offering him this policy to put in the Energy Bill. The energy companies know that that is our policy and they know that it can be done. The Government can have that policy for free; take it, put it in the Energy Bill and get help to those who need it most.

We also want everyone to benefit from a competitive and more responsible energy market. That means wholesale reform of the way in which energy is bought and sold. At the moment, no one really knows what the true cost of energy is. If energy companies were forced to sell the power they generate into an open and transparent pool, anyone could bid to retail energy.

But it does not stop with energy prices. Let us look at another basic need on which every household relies; water. Ofwat estimates that some 2.2 million households—one in 10—spend more than 5 per cent of their income on water and sewerage. As my hon. Friend the Member for Wakefield (Mary Creagh) has pointed out, despite Labour’s legislation, which allowed for new social tariffs to help people squeezed by rising water bills, the Government have washed their hands of any responsibility and are leaving it to water companies to decide whether to introduce social tariffs. We think that that is a responsibility that the Government should take on and deal with.

Mrs Eleanor Laing (Epping Forest) (Con): The right hon. Lady is coming forward with all these ideas now, but why did her Government spend 13 years neglecting the country’s energy needs? Why did they not bring those matters to the House during that time?

Caroline Flint: I refute that accusation; investment in energy was up, there were more starts in terms of renewables, some of which will be completed under this

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Government—that is our legacy—and by tackling fuel poverty, the insulation programme through Warm Front and the decent homes programme we helped millions of households.

To answer honestly, I have witnessed things over the past three years that have made me challenge what we need to do for the future in terms of how the energy market works. It is up to all of us to reflect on where we are today and on what has happened in the past three years and try to put it right. That is why we believe that we need to encourage new entrants, increase competition and ease the upward pressure on prices.

One of our other proposals is to deal with Ofgem. Ofgem removed price controls a decade ago, so in the belief that competition had developed sufficiently and that privatisation had delivered a functioning competitive market. I believe it is clear now that that was a mistake. We need to create a tough new regulator that people can trust and ensure that the regulator has the power it needs to protect consumers. That is why we would abolish Ofgem and create a tough new regulator with a statutory duty to monitor the relationship between the prices that energy companies pay for their energy and the bills the public pay and the power to force them to cut prices when wholesale costs fall. We believe that that is very important.

Mr Davey: The right hon. Lady has explained to the House the Opposition’s policy to get rid of a regulator and to replace it with another regulator. Given that we need to attract £110 billion of investment in energy to this country, is she aware that one of the things that investors prize about the UK is regulatory stability and certainty? Will her proposal improve that or make it worse?

Caroline Flint: Investment in the renewables sector in this country has gone down; we are a less attractive place to invest. The Secretary of State makes much of the so-called “decarbonisation target” in the Bill. The truth is that there is no such target. Investors say to me that they need certainty, which is why we need to have strength behind a decarbonisation target to make sure that that investment comes forward.

I also believe that we cannot have a regulator that people do not trust. It has not been doing the job it was asked to do; it is not fit for purpose. To get our energy market and sector into a better place, we need consumers to have confidence in the regulator, which is why it needs to change. There is no point in trying to hold up a regulator that does not command confidence. We need a regulator that does just that and can move us to a better place, where energy has the certainty it needs for investment but also has the confidence of consumers.

David Mowat (Warrington South) (Con): Will the right hon. Lady give way?

Caroline Flint: No, I will not give way to the hon. Gentleman.

Mr David Anderson (Blaydon) (Lab): Will my right hon. Friend give way?

Caroline Flint: I will give way to my hon. Friend.

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Mr Anderson: That was very good decision by my colleague. Is not the truth that investors see this country as having stable regulation, but that they see it as wide open? That was the way privatisation was set up in the 1980s, so that companies can rip off the public and put bills up on a whim and do not care how they do that as long as they can get away with it. Ofgem has failed continually and it needs to be reformed; my right hon. Friend is absolutely right in what she says.

Caroline Flint: I thank my hon. Friend for that intervention. The truth is that we do not have a competitive market: six large companies dominate 99% of it, so we have to open it up. We need to make it more dynamic and more transparent, so that the public feel they are paying a fair price for the energy they buy.

David Mowat: Will the right hon. Lady give way?

Caroline Flint: No. I will make some progress; I have taken a number of interventions.

I have discussed energy and water, but what about those families who get up to do the right thing and head off to work each day? Among them are hard-working commuters forced to travel at peak time. Often, they have moved a long distance away from their workplace to stand a chance of buying their own home. Their reward for doing the right thing, day in and day out, is season ticket price hikes of up to 9.2%. What understanding have the Government shown them? How about squeezing them further by allowing new “super peak” fares? As my hon. Friend the Member for Garston and Halewood (Maria Eagle) has made clear, if we were in government and if this was our Queen’s Speech, we would put passengers first, not siding with the powerful private train operators. Our consumers Bill would cap fares at no more than 1% above inflation in each year of this Parliament and ban train companies from introducing even higher “super peak” fares.

Caroline Lucas: Would the Queen’s Speech of the right hon. Lady’s party include a Bill to bring the railways back into public ownership? Reports suggest that doing so would save around £1 billion a year in administration costs.

Caroline Flint: What we are clear about is that the rail companies must prove themselves when it comes to their franchises being renewed. On my local line—the east coast line—the operator has done a remarkable job. Unlike some of the other operators, it has paid premium payments back into the Government’s coffers to spend on other things. However, we must ensure that each rail company is fit for purpose, and where a company is not doing the job and we need to take action, we can make a decision on a case-by-case basis at the time.

On housing, as my right hon. Friend the Member for Leeds Central will set out in his speech later today, the Government are not just failing to tackle the housing crisis; their policies are making it worse. House building is at its lowest level since the 1920s, annual housing starts are down and housing completions were lower in both years of this Government than in Labour’s last year in power. As a result, more and more people are locked out of home ownership, stuck on local authority

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waiting lists or forced to live in the private rented sector. Whereas this Government sit back and do nothing, Labour would act now to change the private rented sector so that it works for all—landlords and tenants.

Mr Andy Slaughter (Hammersmith) (Lab): In my constituency, both house prices and private rents went up last year by 8%, which is eight times the rate at which wages rose. It costs £650,000 to buy the average property in my constituency and £800 a week to rent a three-bedroom house, yet the Tory response is to sell off council homes when they become vacant and to put families into bed-and-breakfast accommodation, at a cost of £1 million a year.

Caroline Flint: My hon. Friend makes some important points. I seem to recall that we were told that the Government’s housing policies would not lead to an increase in private rents, but the opposite has happened. I, too, saw the headline—I think it was in the Evening Standard a few weeks ago—about private rents in London rising eight times more than wages.

If this was our Queen’s Speech, we would have had a housing Bill in it and we would be taking action to encourage landlords to offer families longer tenancies, so that they have security and stability. We would introduce a register of landlords and empower local authorities to strike off rogue elements, and we would end the rip-off fees and charges imposed by letting agents. However, this Queen’s Speech offers nothing to address those concerns. It is a no-answers Queen’s Speech from a tired, failing and increasingly fractious Government.

This Government promised change, but nothing is changing for hard-working Britons. Our country faces big challenges, but this Government and this Queen’s Speech are not equal to the task. The Queen’s Speech fails to provide a reboot for flatline Britain; it fails to address the rising cost of living; and it fails to listen to hard-working people. The big question that those people are asking of Government is: how can they afford to secure a roof over their head, heat their home, feed their family and get to work? However, this Queen’s Speech has no answers for them. The promise is that we will get there in the end, but like so much with this Government, it is wearing thin. Even the Government’s own independent Office for Budget Responsibility is saying that British people will be worse off in 2015 than in 2010.

I do not relish the rising levels of young people out of work, or the months turning into years among the adult jobless. I regret that our economy remains in the doldrums. None of us has all the answers, but our amendment shows that there are ways to help people through these harsh times. At no cost to the Government, we could cap train fares, put the over-75s on the cheapest energy tariff and stop private landlords ripping their tenants off. Labour’s amendment is about what is fair, what is reasonable and what is just, and I commend it to the House.

Several hon. Members rose

Mr Speaker: Order. Just before I call the first contributor from the Back Benches, I remind the House that in light of the number of right hon. and hon. Members seeking to contribute, I have had to impose a six-minute limit on each Back-Bench contribution.

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2.5 pm

Mrs Caroline Spelman (Meriden) (Con): I support the Gracious Speech and commend the Secretary of State for Energy and Climate Change on the important measures that he has outlined, which will help the hard-working families in my west midlands constituency with the cost of living.

It is the rising cost of global energy that has had such a huge knock-on effect on household bills, not least the cost of travel to work. I therefore wish to speak about the proposed investment in high-speed rail, which will run through my constituency. We will get both the pain and the gain, as the first stop outside London will be Birmingham International, just 38 minutes from Euston. High Speed 2 throws a lifeline to the west midlands, which has been held back by a lack of transport investment down the years.

The principle behind high-speed rail is the lack of capacity on the existing railways. There is already a lack of capacity, which is why freight has had to be moved off the west coast main line, on to the Chiltern line or the congested west midlands road network. That lack of capacity means that I frequently have to stand when travelling at peak times to and from my constituency. Indeed, the right hon. Member for Birmingham, Hodge Hill (Mr Byrne) teased me as I read the contents of my red box standing up when I was a Minister, but I reminded him about his note to the effect that there was “no money left” for us when we took power.

The Opposition claim that the Queen’s Speech does nothing to tackle rail fares, but we are about to make a huge investment in rail infrastructure that will create jobs and growth. Without that extra capacity, the fundamental tool to meet rising demand will not exist. With a renaissance in west midlands manufacturing and the success of companies such as Jaguar Land Rover, demand for rail will only increase, so we must have a transport network to match the needs of the 21st century as we compete in the global race for jobs.

Jake Berry (Rossendale and Darwen) (Con): Does my right hon. Friend agree that the Government’s commitment to rail travel is shown not only in HS2, but in the investment being made in Birmingham New Street station at the moment?

Mrs Spelman: I absolutely agree. That is an example to west midlands constituents of the Government’s commitment to growth, jobs and infrastructure, which is essential.

When I drive home up the M40, I frequently see transporter loads of newly made cars from Solihull, representing our export-led recovery, but would it not be so much better if there was capacity on our railways to take that freight straight to Southampton for export? Frequently, the motorway link between the M42, the M40 and the M6 is heavily congested, even with the innovative active traffic management system. There are strategic assets along the length of the M42—the Blythe and Birmingham business parks, Birmingham airport and the national exhibition centre—but what we need is connectivity. The evidence from France is that the towns that really benefited from high-speed rail were those that managed to put such connectivity in place, and we have a Government who are committed to rail infrastructure.

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HS2 would also optimise the under-utilised runway capacity at Birmingham airport, which would make the travel time competitive with London’s airports. The runway at Birmingham is being extended to accommodate long-haul traffic, which reflects the preferred destinations in the Indian subcontinent of west midlands manufacturers and exporters and, of course, those of the region’s residents, many of whom have their origins there.

I cannot outline the potential gains of HS2 without touching on the real pain suffered by my constituents whose homes will be blighted by the route. Properties have lost approximately 20% of their value. I say “approximately” because it is actually hard to sell a property at all, given the level of uncertainty. There is a hardship fund, and I have helped many constituents to apply to it, but very few have received help. The blight compensation is to be calculated on a set distance from the rails, which can be harsh on those who are just beyond the eligible distance. This is why I introduced a ten-minute rule Bill calling for the use of noise contours, which might more accurately reflect noise nuisance. I hope that the paving Bill proposed in the Queen’s Speech will contain significant improvements to the compensation package.

I urge the Government to look again at a property bond scheme of the type proposed by Birmingham airport when a second runway was on the cards. A property bond would enable people blighted by HS2 to move on with their lives. The evidence from HS1 is that, if the Government were to buy up their property today, most of it would not lose value once construction was completed and the perceived blight had lifted. There might even be an uplift in value from the proximity to an improved transport network. I urge the Government to continue their efforts to improve and mitigate the impact of HS2. Just today, I have heard that a new tunnel will be constructed under Castle Bromwich in my constituency, but as yet I have had no response to my request for a deep-bore tunnel that would protect the Greenway and villages such as Berkswell and Hampton-in-Arden, as well as keeping the surface around the interchange station free of rigid structures.

The House would expect me, as a former Environment Secretary, to give consideration to the environmental impact of HS2, and of course there will be a loss of green space, but it is also possible to do something really beneficial to the environment through biodiversity offsetting. During my time at the Department for Environment, Food and Rural Affairs, we introduced a tool that allowed us to calculate what had to be done to compensate for the loss of nature where development occurred. With such credits, a big scheme for the restoration of the environment can be achieved either near to or where the loss occurs. For example, the university of Birmingham, in conjunction with the engineers Arup, has come up with a proposal to restore the Tame river valley, which was badly polluted by the industrial heritage of the west midlands. Biodiversity offsetting was one of the key tools in the natural environment White Paper, and the HS2 project provides a good opportunity to put it into practice.

I hope that Ministers will accept some of these suggestions for how to build on and improve the legislation for a high-speed railway, which will need to demonstrate clearly the gains to the community it serves economically,

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socially and environmentally in order to be sustainable and to expand public transport capacity to help with the cost of living.

2.12 pm

Mr David Blunkett (Sheffield, Brightside and Hillsborough) (Lab): I often wonder on these occasions how Aneurin Bevan and Michael Foot would have got on, having only six minutes to make a speech, but I will do my best.

Last week, my right hon. Friend the Member for Dulwich and West Norwood (Dame Tessa Jowell) reflected on the current political dialogue, saying that

“our political narrative has been characterised by a view of the worst of national human nature rather than the best.”—[Official Report, 8 May 2013; Vol. 563, c. 28.]

I regret to say that she is right. She is right because history teaches us that when politicians—particularly those of governing parties—are prepared to stoop to the politics of blame and resentment, and when the fulcrum of politics shifts to looking to our communities, rather than to the international financial and banking fraternity, to see who can be blamed for our problems, that is when we see people turning on each other. That is what we are seeing now. People are looking at those on welfare as though they are living high on the hog, and looking at migrants as though they are responsible for what has happened to their living standards, even though they are not.

There is a danger that the current ridiculous debate on Europe could put our prosperity at risk. Today’s debate is about the cost of living. If the debate on Europe continues as it is doing at the moment, the ratio of the pound to other currencies internationally will worsen to the point at which our imports will be more expensive and our cost of living will rise. The uncertainty will reduce inward investment into our country and, as we have seen from the Prime Minister’s somewhat ill-timed visit to the United States this week, negotiations over international trade with China, India, the US and the Russian Federation which require a Europe-wide approach to achieve a scale that allows us to negotiate sensibly, will be put at risk.

I simply ask Members on both sides of the House to be big enough to address the real challenges that we face as a nation, rather than turning individuals against individuals and fostering the politics of grievance. Historically, we seem continually to rewrite the issue of migration to this country. There is nothing new about using the politics of insecurity and uncertainty and the fear of change and difference to turn one set of people against another—usually the poor against the very poor—and we are seeing it again today.

Let us compare properly organised, legal inward migration with the illegal migration that pushes people into the sub-economy, which would have happened had we not reached the agreement to allow people to work legally here and pay tax and national insurance from 2004. This is fact, not fiction: 40% of those people from eastern Europe who registered to work here in 2004 were already in this country. They were working in the

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sub-economy. Nobody wants that; we want secure boundaries and legal, open migration that is properly organised.

Richard Graham (Gloucester) (Con): I could not help but note, when the right hon. Gentleman said it was ridiculous to blame migrants for our economic woes—I agree with him on that—that it might also be ridiculous to assume that they had nothing to do with our economic woes. At the weekend, Lord Mandelson said:

“In 2004 when as a Labour government, we were not only welcoming people to come into this country to work, we were sending out search parties for people and encouraging them, in some cases, to take up work in this country.”

Would the right hon. Gentleman care to comment on that?

Mr Blunkett: This talk of search parties is, frankly, risible. The fact was that we had a booming economy with enormous growth and we needed people to fill those jobs. We needed them to do so legally, rather than illegally. At the moment, however, illegal migration is growing and the message we are sending out, particularly to graduate and postgraduate students, is entirely wrong. Of course there is an issue about integration and about protecting people, but we need a sensible, rational dialogue, rather than one that fosters and engenders fear.

What about the welfare state? In 2005, we set out our principles for welfare reform. Of course, earned entitlement is crucial. We all accept that work is the best form of welfare, but turning those who are struggling on welfare into victims and suggesting that they are responsible for the dilemmas that we face in these times of austerity is frankly unacceptable. My right hon. Friend the Member for Don Valley (Caroline Flint) mentioned the £1,700 cut in average earnings, but this Government have also frozen child benefit and cut tax credits. In-work benefits have also been cut, creating a disincentive rather than an incentive to work. Goodness knows what is going to happen when universal credit comes in later this year.

Above all, the Government are punishing people who are already struggling. The bedroom tax is the most iniquitous of the changes that the Government have brought in—[Hon. Members: “It’s not a tax.”] Does someone want me to give way?

Alec Shelbrooke rose—

Mr Speaker: Order. The hon. Member for Elmet and Rothwell (Alec Shelbrooke) cannot opportunistically spring up in that way. He is showing a considerable discourtesy to the House. The right hon. Member for Sheffield, Brightside and Hillsborough (Mr Blunkett) should proceed unhindered with his speech.

Mr Blunkett: I am grateful to you, Mr Speaker.

I am talking about children under 10 who suddenly discover that their parents have to move and that they can no longer have their own bedroom, and about those with shared care not being able to look after their children at weekends. We could have provided incentives for people to move, but I am not sure whether the Government want them to move or whether they want to punish them for having a house with two bedrooms.

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Alison McGovern (Wirral South) (Lab): My right hon. Friend’s brilliant contribution is reminding us all of why he is such a towering force in politics. Does he agree that the bedroom tax—it matters little what we call it; it is what it is—is a precise example of the politics of division that he has been talking so eloquently about?

Mr Blunkett: I am very grateful to my hon. Friend for her kind words. I want to make the point that there were alternatives, including introducing incentives for people, including older people, to move. It is often older people who require smaller premises and who have larger premises that they can no longer manage. But we will not move them, will we? We will not tax winter fuel or assumed benefits for older people because older people vote in very much greater numbers than younger people. My message today is that politics—democratic politics—can be our solution and that people should engage with it as citizens in their community. They should engage with it through voting, but they should not be misled by organisations and parties such as UKIP that seek to obtain their vote by building on resentment and hatred, which history shows us has brought countries to their knees.

Yes, we need strong borders; we need welfare reform; we need a review of the European Union—but we need fairness at home, too. Today, Sheffield city council’s fairness commission, of all parties and no parties, has presented to Downing street thousands of names on a petition. I mean fairness, not just in respect of dealing with the recession and austerity, but fairness in the sense of what Barbara Castle used to call the social wage—the investment in our decent public services. That is the message we should be putting out today.

2.21 pm

Sir Menzies Campbell (North East Fife) (LD): It is a privilege to take part in this debate on the Gracious Speech, and it is a particular pleasure to follow the right hon. Member for Sheffield, Brightside and Hillsborough (Mr Blunkett).

In view of recent events relating to the Government side of the House, I think I should make it abundantly clear that I intend to vote for the Queen’s Speech, that I will support the Prime Minister and the Cabinet, and that I will vote against any amendment, tabled or selected. The face that I should feel the need to make such an assertion at the outset will underpin some of the observations I shall make.

I continue to support the restoration of economic stability. That was the raison d’être of the coalition and it remains its overarching objective. To fulfil that commitment, I, like others, have had to subordinate my views on other subjects to that objective. I felt it necessary to do so because of the economic circumstances we have inherited and because of the very obvious difficulties that exist in resolving them. Some of the decisions that have been made have been very painful—to me and to others—but I believe them to have been necessary.

We continue to make progress towards the objective. We have reduced the deficit; we have maintained low interest rates; there has been no run on the pound—and although it is a volatile measurement, it is worth observing that the stock market, often seen as a barometer of confidence, has in recent days returned to its levels of

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five years ago. Between now and 2015, nothing should be allowed to distract the Government from that objective. It is impossible in the present context to ignore possible distractions.

Thankfully, the internal management of the Conservative party is nothing to do with me, but speaking as someone who was a not entirely dispassionate observer of the Major Government between 1992 and 1997, I say that there are surprising echoes of that period in the current turmoil of the Conservative party. It is worth remembering that that Government had very substantial economic achievements—to such an extent that the incoming Labour Government, with the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown) as Chancellor of the Exchequer, accepted the public spending proposals of the outgoing Government.

If we undermine the authority of our Prime Minister, we will undermine the credibility of our Government. If we undermine the credibility of our Government, we will undermine the economic objectives of that Government. This is all the more the case when the coalition agreement contains a perfectly rational mechanism for a referendum if constitutional change is made. Is it rational to spend the next two years on a fractious and divisive debate over Europe when so much remains to be done? I simply cite the example of Scotland, in respect of which every decision, every policy and every political statement has for some time—and it will continue for some time—had to be seen through the prism of the referendum fixed for September next year.

If these events are a reaction to UKIP, let me offer a sporting metaphor. Teams that chase the game are rarely successful. That applied, of course, to the right hon. Member for Kirkcaldy and Cowdenbeath when he sought to outbid the current Chancellor on the question of inheritance tax, and as it did when he declined to call a further general election. Concessions rarely satisfy dissidents, who have the ghost of Oliver Twist among them.

Another issue—that of Syria—should not allow us to be distracted from these economic goals. I retain my previously expressed reservations about the proposals to arm the rebels. President Obama’s resistance to that is sometimes related to an inactivity—whether or not that is right is neither here nor there, but in my view his resistance is well founded. The objections are many, including the emergence of Islamist Jabhat al-Nusra as an increasingly influential part of the rebel forces, which raises the question of who would inherit any arms that we might deliver. The risk of a proxy war between the United States and Russia is another example, with each matching each other in armaments supply. Once we depart from non-lethal supplies, where would we stop?

Dr Julian Lewis (New Forest East) (Con) rose

Sir Menzies Campbell: I am about to finish.

Some have suggested a no-fly zone, but if we have one, we must be ready to shoot down the aircraft that intrude into it and accept the risk of the aircraft enforcing it being shot down. We must also be ready to suppress the air defences, many of which have in an entirely deliberate but cowardly way been situated among the civilian population.

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I finish by noting that as Russia and the United States tentatively explore the possibility of a joint approach on Syria, this is no time to encourage the rebels to believe that they need not subscribe to any political settlement in the hope of outright victory.

2.27 pm

Jim Dowd (Lewisham West and Penge) (Lab): I am delighted to have the opportunity to make a few comments on the Queen’s Speech. This is the third anniversary of the formation of this particular coalition, and this Queen’s Speech is the penultimate one, with only one more to go—Hallelujah! What is most remarkable about this Queen’s Speech is how thin it is, and how it is dominated by two particular elements. The first is just how little the coalition parties can agree on—they seem to have spent most of their time deciding not what should go into this Queen’s Speech, but what to keep out of it. That explains its paucity to some degree.

The other element is the fear of the saloon-bar stage that is Nigel Farage and UKIP. It was said at the end of the 19th century that the spectre of communism was haunting Europe, but the spectre of UKIP now haunts the Conservative party to such a degree that it really does not know how to deal with it. There is widespread sympathy on the Conservative Benches for UKIP’s aims and objectives, and there is a degree of incomprehension, as I observe it, of the fact that the natural home for right-wing fruitcakes is within the Conservative party. The acts of UKIP have clearly led to some confusion.

The amendment tabled by the hon. Member for Basildon and Billericay (Mr Baron) and predominantly, although not exclusively, supported by Conservative Members is no amendment at all. I think the technical expression for it is “pious”—it just expresses a view and will have no impact whatever either for good or ill. If these Members were serious about voting against the Queen’s Speech, they could, of course, vote against the main motion, but they will not—

Mr Speaker: Order. I want to help the hon. Gentleman by gently saying that he would not think it right to start to debate an amendment that has not been selected. He is an experienced and wily old hand, and I feel sure that he will be able to frame his remarks in an appropriate way.

Jim Dowd: I am grateful for your guidance, Mr. Speaker, as, indeed, I always am.

I think that this also reflects the enduring resentment among Conservative Members, and their failure to appreciate that they did not win the last election. They try to behave as if they did, and they try to believe that they can simply have their way in this matter, but that is not the situation that the electorate gave them. I understand their resentment, because if there was one election that the Conservative party really ought to have won it was probably the one that took place in 2010, but they failed to do so.

The Prime Minister, of course, is away. He will not even be voting for the Queen’s Speech himself when it is put to the vote tomorrow. He has thrown just a few titbits to the fruitcakes by saying that while Ministers must not vote for the amendment, others can abstain. He is trying to draw up a strange pact, the “pax Cameron”.

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Meg Hillier: Does my hon. Friend have the impression that the Prime Minister may be in power but not in control?

Jim Dowd: I see quite easily how a logical person could reach that conclusion.

I myself am in favour of a referendum on the question of Britain’s continuing relationship with the European Union, but I believe that it is a matter for the next Parliament. I hope that we can prevail on the Opposition Front Bench to include a manifesto commitment, but of course the manifesto for the next election is still two years away.

David T. C. Davies: Am I to understand that the hon. Gentleman is perfectly happy to support a referendum in the next Parliament, but believes that anyone who wants to give the people a chance to have a say in their future in Europe in this Parliament is a fruitcake?

Mr Speaker: Order. We must not pursue this exchange, whether in relation to fruitcakes or in relation to a prospective amendment which has not been selected. The hon. Member for Monmouth (David T. C. Davies) should not seek to divert the hon. Member for Lewisham West and Penge (Jim Dowd) from the path of virtue to which I think he had just about returned.

Jim Dowd: I can tell the hon. Gentleman quite honestly that I would not accuse him of being a fruitcake—

Mr Anderson: Why not?

Jim Dowd: But I entirely understand that there may be those who would.

The argument needs to be heard. The other day I received a message from a constituent who was an avowed Tory voter at the last election—in the Bromley part of my constituency; there are not many Tory voters left in the Lewisham part—

Mr Anderson: Any Liberal Democrats?

Jim Dowd: A few.

My constituent resented the suggestions that were being made about the referendum, because no one had put the idea to the electorate at the last election. I expect the issue to be a key part of the next general election campaign, and I think that we should offer people a referendum on it.

Labour is the only party that has ever given people in this country a referendum. Back in 1975, under the Wilson Government, the referendum was on whether we accepted the revised terms under which we would remain in what was then the European Economic Community. Scottish and Welsh devolution, the forming of the Greater London Authority, the direct election of a Mayor of London and elected mayors in cities across the country have all spawned referendums, and all of them were instituted by a Labour Government. The closest that a Conservative Government have ever got was being forced into a referendum on electoral reform and the alternative vote by the terms of the coalition agreement.

Alec Shelbrooke: Will the hon. Gentleman give way?

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Jim Dowd: No, I will not, tempted though I am. I have taken two interventions, and if I took another it would come out of my speaking time.

The deal over boundary reform, and not Lords reform, was another part of the coalition agreement, but the Liberal Democrats appear to have ignored that. Mind you, I am not complaining: both the boundary gerrymander and the equally ridiculous AV system were well worth kicking into touch.

Others speak of a “mandate referendum”, whatever such a thing is. A Government have a mandate; and what would be the question in this “mandate referendum”? “Should the Government seek every opportunity to protect and promote the best interests of the British people”? I believe that all Governments do that, although I do not agree with the way in which this Government do it. I believe that the mandate stems from the general election. Who on earth is going to vote “No”? It is ludicrous. This is merely a distraction, an attempt to confuse activity with action.

My right hon. Friend the Member for Sheffield, Brightside and Hillsborough (Mr Blunkett) referred to the way in which we are isolating certain people. While we must provide fair access to public services, the Government must be careful not to fuel the flames of xenophobia. We should understand in this country that while there must be a genuine entitlement, and while a contribution must be made—according to people’s ability—the overwhelming majority of immigrants and their descendants have contributed mightily to what the country is today. We should not allow that to be put at risk by any obsession at the margins, or try to reduce what is a great record.

As I said at the outset, the Queen’s Speech is thin. It is clearly not up to the task of meeting the challenges that face Britain today. The sooner this Government go, the better.

2.35 pm

Dr Julian Lewis (New Forest East) (Con): It was kind of you, Mr. Speaker, to allow a segment of today’s debate to those of us who were concerned about the Opposition’s decision not to choose foreign affairs, defence or, indeed, Europe as the subject of one of the themed days of debate on the Queen’s Speech, so that we could refer to some of those matters. I suppose that I ought to get the words “cost of living” into my speech from time to time, and I shall endeavour to do so, but I hope that if I fail, they will be taken as read.

Although the right hon. and learned Member for North East Fife (Sir Menzies Campbell) and I serve closely together on the Intelligence and Security Committee, we are not best known for agreeing on issues such as the future of the European Union or that of the Trident nuclear deterrent. On one issue, however, we find ourselves in close agreement, and that is the question of whether or not we should arm the rebels in Syria, or become militarily involved in the civil war in other ways.

Alec Shelbrooke: Absolutely not.

Dr Lewis: I think I am right in saying that my hon. Friend’s view is quite widely shared on the Back Benches, at least on this side of the House, and, I suspect, on the other side as well.

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It is not a matter of wanting to do something less than we might in terms of humanitarian intervention. I certainly supported humanitarian military intervention in Sierra Leone, and I was one of the first to call for military intervention to topple Miloševic. I have supported military action in other theatres, such as Afghanistan and Iraq, and I even supported such action—albeit with considerable reluctance—in the case of Libya, given Gaddafi’s explicit threat to the citizens of Benghazi. We must, however, consider two aspects when thinking about undertaking military intervention. One is the humanitarian consideration, but the other is the question of who will take over if that military intervention is successful. What concerns me is the possibility that the people who take over will become dominated by a group allied to al-Qaeda who are even worse than the Assad regime—and that is saying something.

My mind goes back to the speech made by Tony Blair as Prime Minister in the run-up to the Iraq war. What did he say that so swayed the House in favour of intervention? He said that his nightmare was the prospect of weapons of mass destruction falling into the hands of al-Qaeda. We now know that either there were no weapons of mass destruction, or, if there were chemical or biological weapons, they were not there by the time the allied forces went in.

In this case, however, we know that there are weapons of mass destruction—chemical weapons; a big stockpile of nerve gas—in Syria. What the Foreign Secretary has admitted at the Dispatch Box, repeatedly, is that there are, to use his own estimate, several thousand al-Qaeda-linked militants fighting alongside the Syrian opposition. I have raised the question at least five times since last September, and I have had five answers, none of which has satisfied me on the point. The point is this: how do we prevent that stock of deadly chemical weapons, which in the hands of Assad and his regime poses no threat to the west, from falling into the hands of al-Qaeda-linked militants, who would undoubtedly use them against the west, with terribly adverse effects on our cost of living and on our being able to stay alive?

It is not beyond the realms of possibility that Carla del Ponte may be right, because it certainly does not make sense for the Assad regime to use chemical weapons—the one thing that would cause the west to intervene and overthrow him. If he did use them, why use them in such small quantities that they could not have a decisive effect? If the intent was to intimidate the opposition, why deny vehemently, as the Assad regime does, that it has used them? It does not make sense.

Alec Shelbrooke: What would be the direct effect on the cost of living in this country if an al-Qaeda-led Government in Syria got together with the Shi’a-led Government in Iran and took a direct look at the democracy in Iraq, which is diametrically opposed to their beliefs?

Dr Lewis: I am sure that my hon. Friend is right in his implication that there would have to be a huge uplift in public expenditure on all forms of counter-terrorist techniques, and there would undoubtedly be a deleterious effect on the freedoms of peoples in this country, which would have to be restricted considerably if we found ourselves under attack from deadly chemical weapons in the hands of an extremist group allied to our enemies.

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The hon. Member for Lewisham West and Penge (Jim Dowd) quoted Marx, without attributing the words to him, when he said that the spectre of communism is haunting Europe. I am put in mind of a quotation attributed to Lenin:

“The capitalists will sell us the rope with which we will hang them.”

We would have to be out of our minds to assist in the overthrow of one shocking regime and the coming into place instead of a regime that was equally shocking and atrocious but hostile to us and armed with chemical weapons.

Mr Andrew Love (Edmonton) (Lab/Co-op): I am sympathetic to much of the hon. Gentleman’s argument, but a humanitarian crisis in Syria has to be addressed. Given the difficulties between the Russians, ourselves and the Americans in relation to an international conference, how do we move a political settlement forward?

Dr Lewis: I am extremely grateful for that intervention, as it leads me to my final point. Whenever we talk to our Government spokesmen about this, they say that the answer is a peaceful transition. It is abundantly clear that either there will be something peaceful and no transition, or if there is a transition, it will not be peaceful. If our concern is, above all, to stop the killing, we ought to be working with the Russians not for a transition but for a cease fire. We ought to aim to freeze the situation, the effect of which would be to stop the killing but not to result in the transfer of the chemical weapons stocks to the hands of an opponent of western civilisation that is even more deadly than the people who currently hold them.

Mr Love indicated assent.

Dr Lewis: I am grateful to see the hon. Gentleman nod in some agreement with that. We should be striving for a cease fire, not for a change of regime, atrocious though that regime happens to be.

2.44 pm

Seema Malhotra (Feltham and Heston) (Lab/Co-op): I am honoured to speak in this year’s debate on the Loyal Address and to make some comments on Her Majesty’s Gracious Speech.

I join the sentiments expressed by other Opposition Members that Britain could and would have hoped for so much more from this Queen’s Speech. After three years of low growth, rising unemployment, increased borrowing and a rising cost of living, including fuel and food bills and transport fares, Britain deserved much more. We got no answers on tackling the rising cost of living, at a time when real wages have fallen by £1,700 since the election, and there was nothing to help the increasing number of Londoners struggling to afford food. It is clear that, after three years of failure and U-turns, this Government are out of touch, out of ideas and unable to bring the change this country needs.

Last year, I spoke in my first Queen’s Speech debate as the Member of Parliament for Feltham and Heston. I spoke of local unemployment and how Her Majesty’s Gracious Speech last year offered no hope to these local

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families and young people, but 12 months later the situation is worse. More than 550 local people in my constituency who were unemployed 12 months ago are still unable to find a job. More people are out of work now than there were when this Prime Minister took office, and a growing number of food banks are now opening across the country—these are the most visible manifestation of the growing crisis of food poverty in Britain. Food is the most basic of human requirements, yet in one of the richest cities in the world, local families and children cannot afford to eat and are going hungry. The Trussell Trust, which runs the largest chain of food banks in the country, fed more than 34,000 people in London in the past year. In my borough of Hounslow two food banks have opened in the past two months alone, with the local council, local charities, places of worship and volunteers doing all they can to help local families and a growing number of children in poverty.

Andrew Selous: Perhaps the hon. Lady would like to put on the record the fact that food banks increased tenfold under her Government. Will she condemn the fact that her Government refused to let Jobcentre Plus signpost people to food banks because they were worried about the political damage? That was a callous way of treating people in need.

Seema Malhotra: Yet again, we see how the Conservative Government are so out of touch and so complacent, not acknowledging any of the challenges—rising unemployment and a rising cost of living—that people in Britain are facing today; they are not taking any responsibility.

A recent report by the London assembly found that more than 95% of teachers asked in London said that children in their schools regularly went without breakfast—more than half of such instances were because families could not afford food. That is completely unacceptable in modern Britain. The health, educational attainment and life chances of these children are threatened by hunger, and the Government continue to do nothing to help with the cost of living.

Meg Hillier: Teachers and head teachers in my constituency have given me similar messages. One school has what it calls a “tack room”, where it takes in young people’s mobile phones or a deposit—little bits of money—towards a blazer or school equipment, because the children cannot afford that or their school lunches.

Seema Malhotra: My hon. Friend makes a moving contribution. We have seen how schools are increasingly picking up the pieces so that children can have something to eat and at least then be able to study.

The Government are even making things worse. A recent Institute for Fiscal Studies report into child poverty found that between 2010 and 2020 absolute child poverty will increase by 55%, with the IFS saying that the projected surge is a result of the fiscal and social security policies of this Tory-led Government. A great sign of weakness is not admitting when you have got it wrong, and it is a shame that the Government did not take the opportunity of this Queen’s Speech to put forward real solutions to meet the challenges our businesses and families are facing. As Labour’s alternative Queen’s Speech argued, the focus should have been on those

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matters that will make a real change: jobs; growth; tackling rising consumer prices; and banking reform to back our British businesses. Last month, the International Monetary Fund published figures showing that in 2012 the UK economy grew by just 0.2%. That was 0.7% less than Germany, 2% less than the United States, and 3.8% less than India. We are, of course, in a global race, in which Britain can lead, although not under this Government if the last three years are anything to go by.

The Queen’s Speech has been a missed opportunity—another chance missed to improve the prospects of Britain’s families. It is a no-answers Queen’s Speech from a tired and failing Government. They are out of touch, out of ideas and losing the global race for Britain. My constituents in Feltham and Heston deserved better. It is not too late for the Government to change course, and I look forward to the Minister’s response.

2.50 pm

Mrs Eleanor Laing (Epping Forest) (Con): It is a privilege to support the Gracious Speech. Although I appreciate that it is unfashionable to talk about conviction politics, I suggest to the House that there is nothing wrong with having principles, talking about principles and sticking to principles. The principles underlying the Queen’s Speech are those of freedom, choice and individual responsibility as well as rights. Through those principles, Conservative Governments throughout the ages have brought prosperity to Britain and improved the lives of British people.

The Labour party does not work on principle. It works—[Interruption.] Labour Members are shouting; if they have a principle to tell me about, let them get up and tell me the principle on which they oppose the Queen’s Speech. They work not on principle, but on short-term party political popularity.

Debbie Abrahams (Oldham East and Saddleworth) (Lab) rose—

Mrs Laing: Yes; let the hon. Lady have a go.

Debbie Abrahams: On principle, could the hon. Lady say how the Government’s statement on and commitment to fairness in the Queen’s Speech relates to child poverty, which my hon. Friend the Member for Feltham and Heston (Seema Malhotra) has just been talking about?

Mrs Laing: The hon. Lady makes my point for me. The Queen’s Speech is all about fairness, to which I am coming in a moment. Child poverty has arisen not because of the content of the Queen’s Speech but because of 13 years of economic mismanagement by the last Labour Government.

Mary Macleod (Brentford and Isleworth) (Con): Does my hon. Friend agree that the Queen’s Speech is fair to women, through its raising of the personal tax allowance and doing so much for child care?

Mrs Laing: Indeed it is. I thank my hon. Friend for that point. It is important that we treat women fairly, and much in the Queen’s Speech will make it easier for women to go to work and look after their families and do the two important jobs of being a mother and being

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active in the economy and the workplace. It is through measures such as reforming how we organise child care that that will be done. That is fairness and how we eradicate child poverty and improve the position of all families throughout the country.

Andrew Selous: On child poverty, did my hon. Friend note, as I did yesterday, that the Institute for Public Policy Research, a left-wing think-tank, has now disowned Labour’s approach to priority and is backing ours in dealing with the causes of child poverty? That is good news, as I am sure my hon. Friend will agree.

Mrs Laing: I did indeed, and my hon. Friend makes the point extremely well.

There is something that has not surprised me, but let me draw it to the House’s attention. The hon. Member for Feltham and Heston (Seema Malhotra) and many of her colleagues get excited about food banks because they believe that it is in the power of the state to do everything to help people. We believe, as a matter of principle, that power is with the people and it is up to individuals to help each other, voluntarily, if they so wish, in times of need. Food banks are not about entitlement. Entitlement and benefits are one issue, but food banks are about relieving short-term need. It is important that we should be able to do that voluntarily.

It is not nasty to make difficult economic decisions, but necessary. It is not nasty to tell the truth about having to cut public spending, but necessary. It is not nasty to reduce the nation’s debt to secure the future for our children, but necessary. It is right to construct a taxation and public spending regime that makes work pay. That is what fairness is all about—taking people on lower incomes out of taxation and not requiring them to pay benefits for those who can work but find that there is no point because they are better off not working. That is what Labour brought about, and it was wrong.

By reforming benefits and immigration laws, we are putting Labour’s mistakes right. It is wrong that people who have worked and saved all their lives have to sell their homes to pay for care in later life, and we are putting that right. It is wrong that enterprising people should be held back by the dead hand of an overbearing state. That is what Labour believes it in and it is one of the reasons made such a mess for 13 years. It was wrong and, again, we are putting it right.

Something else is wrong. Most of us appreciate the benefits of the European single market. However, it is wrong that unnecessary rules and regulations from expensive institutions are hindering our businesses and restricting our freedom. We must, as a nation, renegotiate the terms of our membership of the European Union. I am not going to mention any hypothetical amendments, Mr Deputy Speaker.

Mr Deputy Speaker (Mr Lindsay Hoyle): I know you know better.

Mrs Laing: Indeed. We are today debating the cost of living, an issue fundamental to the lives of everyone in Britain today. On these Benches, we care about the prosperity of our country and the well-being of our people, so we want the freedom to run our economy and the institutions of our country in a way that benefits the people of Britain.

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I hope that the Queen’s Speech will be augmented by a Bill that might come through the private Member’s Bill route and that such a Bill will pave the way for a referendum on our relationship with the European Union. I fully understand, although some appear not to, why such a Bill cannot be a Government Bill. We have to appreciate that we are in the most unfortunate situation of being in a coalition, and one part of that coalition does not want a referendum on or a renegotiation of the terms of our membership. However, many of us do want those things. We need a renegotiation and then a referendum for the simple reason that there is a silent majority of people out there who get on with their everyday lives, work hard, look after their families, contribute to their communities and look to this Parliament to hear their voice and give them the freedom to do the best for their country.

2.58 pm

Ian Paisley (North Antrim) (DUP): I want to speak about the three Fs—fags, farmers and fairness. From time to time, fruitcakes may also creep into this speech; perhaps some will want to intervene, although I hope they will not.

I turn first to fairness and the cost of living. Today is the start of carers week, so it is an appropriate time for us to think about fairness for the most important people in our society—people who give back, who care for others and who are in need. It is important that we make sure that the measures that will be presented to the House during this term of Parliament do most to deliver for those most in need, particularly carers or those in receipt of benefit.

There are 214,000 carers in Ulster, and they desperately need assistance. I look forward to the measures that will be introduced to assist them.

David Simpson (Upper Bann) (DUP): Child poverty has been mentioned in this debate. We all understand that finances are very tight, but does my hon. Friend agree that it is vital that the cuts that the Government have imposed do not penalise children? The Children’s Society estimates that 200,000 more children could go into poverty, and that should not be allowed to happen.

Ian Paisley: My hon. Friend hits the nail on the head.

The people who most require fairness are the most vulnerable in our society, such as families in the low-income bracket. One of the ways we can help to address that is through the cost of fuel. Sixty per cent. of fuel costs are duty or VAT. The Government could do something to deal with that, and I look forward to them taking measures to do so over the course of the year. I welcome the increase in the personal allowance for income tax, because that is focused on the low paid.

Job creation is really where the Government’s attention should be directed. Over the past few days, many people have expressed concern about things not being in the Gracious Address, and one such thing is a change to corporation tax levels in Northern Ireland. I am disappointed about that, because such a change would have allowed us to create additional employment and stimulate the economy in the way it needs to be stimulated.

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However, I pay tribute to the Government for listening to us on some of the welfare reform issues. They have allowed Northern Ireland to develop its own flexibilities, such as direct payment to landlords, twice-monthly payments to claimants, and the splitting of the single household universal credit payment between two people. That is very welcome because it helps families in Northern Ireland, especially those on low incomes, to manage their money better.

Mr Anderson: The hon. Gentleman is making a very detailed speech. I agree that those are good concessions for his part of the world, but is there any reason why they could not apply in the rest of the country, because people in the north of England have similar circumstances to those in the north of Ireland?

Ian Paisley: Like the hon. Gentleman, who is also a great Unionist committed to the Union, I believe that the same benefits should flow whether in the north of England or the northern part of Ulster. [Interruption.] That includes Donegal; we will get it back into the Union at some point soon.

Families with a person who suffers from cancer may face difficulties. Macmillan Cancer Support recently produced an interesting report showing the significant impact on the cost of living of cancer sufferers, which could amount to as much as a year’s mortgage payments. The Government should focus their attention on what additional support they can introduce to assist those people.

Jim Shannon (Strangford) (DUP): Will my hon. Friend give way?

Ian Paisley: Not at the moment, but I will shortly.

A disaster is coming to our farming community that will dramatically affect the cost of living through the rising cost of food. We have had one of the harshest winters ever. That is affecting, and will affect, the price of foodstuffs to feed our cattle and our sheep in the countryside. If next winter is equally harsh, I predict that this time next year the cost of food could be as much as double what it is this year. A bale of hay to feed cattle can cost as much as £60 in Northern Ireland—almost triple last year’s price. That will have a knock-on effect on the cost of living of ordinary households up and down the United Kingdom because it will affect how much a person can purchase to feed their family. The Government had better be warned about this now so that they can try to address the needs of the farming community across this country.

The impact of the cost of living in our rural communities is leading to an increase in suicide. For example, there was a very saddening episode last week in the Republic of Ireland, in County Monaghan, where a farmer shot 40 of his livestock because he could no longer afford to feed them, and then turned the gun on himself. This is a diabolical situation that is starting to affect our economy and will see the price of food increase.

I want to deal briefly with fags. Over the past few days people have talked about the impact of not having something in the Queen’s Speech. I want to commend the Government for taking a stand by not including measures on plain packaging, because that would have driven people out of employment, and not only in

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Northern Ireland; it would have affected shopkeepers up and down the United Kingdom and destroyed people’s opportunity to make a living.

In addition, it is a giant con trick. I am a non-smoker and I have four children who I never want to see smoking. If I thought for one moment that plain packaging would stop them smoking, I would have been in favour of it years ago. Indeed, the Labour party had the chance to introduce this measure in 2008 and did not do so. I am glad that 18 members of the Labour party signed my open letter to Her Majesty’s Government to support my campaign to stop plain packaging because of the impact it would have on smuggling, on counterfeit trade, and on all sorts of other aspects that would not affect the health of the nation in any way.

Alec Shelbrooke: As a reformed smoker, perhaps it would be helpful if I told the hon. Gentleman that the branding of cigarettes did not make me start smoking. Smoking became an addiction and unfortunately I got hooked, but what was on the packet had nothing to do with it whatsoever.

Ian Paisley: Let me say on this very important issue that I was delighted that 18 members of the Labour party signed my open letter to the Government, as did a former Labour Cabinet Minister, the current Chairman of a Select Committee, and three other former Ministers of the Crown. They did so because they were concerned about the impact that the introduction of plain packaging would have on crime, including smuggling and counterfeiting. It would drive young people—over 18-year-olds—to smoke the illicit cigarettes that are smuggled over a country’s borders. I welcome the fact that the Government have taken a stand on this. Very few people have been prepared to stand up to encourage and defend them, but I certainly will.

3.6 pm

Mr David Ruffley (Bury St Edmunds) (Con): It is always a pleasure to follow the hon. Member for North Antrim (Ian Paisley).

Our membership of the European Union affects, one way or another, the living standards of our constituents and the prosperity of our people. Membership of the European Union has primarily been founded on an economic case that membership is in our economic interests. In 1973, the argument was principally that we wanted to join a common market because it would raise living standards in this country. More recently, proponents of our membership of the EU say that one fifth of all EU direct inward investment comes to the United Kingdom, representing a source of jobs.

What our membership of the EU has never been, in the eyes of the British people, is, to use the treaty language, a project for

“ever-closer union among the peoples of Europe”

Since 2010, this Government and their Ministers have been engaged in pushing back against the onward march of greater economic integration and the attendant political integration that follows from that. We saw that when our Ministers ensured that we did not contribute to the bail-out mechanism for sovereign states in difficulty. In the banking union proposals, where the rules of the

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European Central Bank could have seen banks dancing to the tune of a European regulator, they ensured a double majority system to protect UK financial services.

We have also had to push back on greater justice and home affairs integration. The Home Secretary has sensibly entered a reservation on 130-odd justice and home affairs measures, including the European arrest warrant and DNA fingerprinting.

Meg Hillier: Will the hon. Gentleman give way?

Mr Ruffley: I will not at the moment because time is short.

It is also the case that, historically, we have been against greater integration. Why else did we secure an opt-out from the euro—that disastrous project that we did not want anything to do with at the outset and that we will not, I trust, wish to join in the future? We were also, of course, one of the few EU countries to say that we would have nothing to do with the Schengen arrangements, whereby many of the other EU members decided to throw their borders wide open.

The question of whether UK membership of the EU is in the national economic interest is being asked with increasing urgency. Telling interventions have been made in recent days by Lords Lamont and Lawson and Michael Portillo, who have asked a question that has for too long been ignored: what are the costs and what are the benefits? They have come to the preliminary conclusion that the costs probably outweigh the benefits, but it is not just the words of Conservative politicians of the past that we should take into consideration.

Some important work has been done by Goldman Sachs. Jim O’Neill, who to my knowledge is not a card-carrying member of the Conservative party, has calculated that trade patterns are very much in flux. He says that if we look at German trade patterns from 2000 to 2012 and extrapolate to 2020, we will find, interestingly, that Germany will export 25% of its exports to the BRIC countries—Brazil, Russia, India and China—and a falling proportion of only 30% to the EU, and that 15% of them will be to China alone and just over 8% to France. The world economy and its trade patterns are in flux, and the idea that we have to be wedded, as an article of faith, to the single market deserves serious scrutiny and examination.

I regret the absence of a referendum Bill in the Gracious Speech. In the case of any hypothetical amendment so regretting that omission, I will gleefully and proudly support it for this reason and this reason alone: we have to have a rigorous and well-informed national debate about the costs and the benefits to our people of membership of the European Union.

3.12 pm

Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op): I draw the House’s attention to my entry in the Register of Members’ Financial Interests.

The cost of living in my constituency, as in others up and down the country, is a real concern. Wages have been depressed, unemployment is still too high, and many of the new private sector jobs that the Government like to trumpet are zero-hours contracts or part time, with no opportunity for increased hours. I will not repeat the comprehensive list that my right hon. Friend

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the Member for Don Valley (Caroline Flint) gave from the Front Bench about the challenges that face our nation.

I want to focus on housing, particularly private rented housing in my constituency, where the social rented sector accounts for 44% of households. Around 26% of my constituents are owner-occupiers and 29% are in the private rented sector, which has increased exponentially. The number of people in the private rented sector is projected to be double the number of people who own and occupy their own home in the next 15 years or so. Rents are high and growing.

On Saturday I hosted the Hackney housing summit, bringing together a range of people who are experts in their field and on living in Hackney. We said that enough is enough. We in Hackney think that the Government should listen to some of our solutions, but sadly the Queen’s Speech did not include any of them.

My constituency epitomises the challenge facing private sector renters—generation rent—who have no opportunity to get on the housing ladder, if that is what they want, and are trapped in an endless cycle of poor housing and high increases in rent, evictions or the like through extortionate rent increases. As a percentage of London rent, my constituency, across nearly all the quartiles, has more than 100% the average rent for properties of every size in London, except for the highest priced four-bed properties. All my constituents pay more than the average and the cost is going up. Costs are high, rents are increasing without limit and housing supply is woefully low.

This Government have a poor record: house building is down, homelessness and rough sleeping are up, people are struggling to get mortgages and to get on the housing ladder, and the rapidly growing private rented sector has so little security, with people having to pay increasing rents at a record high—not just in my constituency, although it epitomises the worst of it—and suffer poor quality accommodation.

On Saturday we heard very moving testimony from Rosie about Digs, a private rented sector body in Hackney that has been set up to campaign against the challenges. In nine years living in Hackney, she has had to move nine times and only one of those moves was voluntary. She also spent £50,000 on rent during those nine years. In order to buy an average sized home we would need an income of £81,000 and a deposit of £17,000. There are, however, many Rosies out there; she is not alone.

The Government must look again at the issue. I urge them to look at Treasury borrowing rules. A strong message from Saturday’s summit was that they should give local authorities the freedom to invest in new homes. It would provide construction jobs and homes in the private rented sector. Why not allow a good local authority to be a private rented landlord? The assets could ultimately be cashed in to pay off the initial investments, or they could be sold to the individuals, thus increasing home ownership, or, in boroughs such as mine, I would like to think that they could be turned into socially rented properties at affordable rents for local people so that those on the lowest incomes are not driven out of my borough.

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In addition to those housing costs there is the huge challenge of paying for child care. This Government have reduced tax credit and child benefit for those on higher incomes, as well as other work-related benefits. No wonder there is a high turnover of population in my constituency, and no wonder young families are priced out of the area. We have to take a serious look at what sort of balance we want in our inner cities. People must not be driven out. We need an increase in housing supply, on which the Government have a woeful record. Their record on new starts over the past two years is the worst of any peacetime Government since the 1920s. In the past year alone there has been an 11% decrease in housing starts.

The proposed consumer rights Bill, which has not yet been mentioned, is a real opportunity to improve the rights and the lot of private tenants. Their rights should increase, including a right to repair and protections against landlords who evict or who increase rents exponentially after reasonable requests for basic repairs. We should also tackle the practices of unfair letting agents, particularly with regard to fees taken at source, not just after the event, which has been addressed by a welcome amendment that was agreed to the other week. The decent homes standard should be applied to the private rented sector. We also need to see the licensing of landlords and to look again at section 21 notices, which are not fit for purpose, because they frequently are misused by landlords to evict people on spurious grounds.

I also call on the Government to look at rents. We need to grapple, on a cross-party basis, with the issue of spiralling rents in the private sector without any notice of the impact on tenants and their homes.

Jim Dowd: Does my hon. Friend accept that another facet of the spiralling cost of rent, particularly across London, is the increased pressure it is putting on social housing and local authorities? I am sure that she, like me and many other MPs for London and for other parts of the country, is visited by more and more people asking for assistance with regard to social housing on the grounds of cost.

Meg Hillier: Absolutely. Without the supply, none of those issues will be solved. One man who came to see me was a kitchen porter struggling to support his family—he had two children. The jobcentre asked him to go for jobs further afield, but the combined cost of extra travel and child care meant that he could not afford to travel a couple of boroughs away. That is the reality of the cost of living and life in constituencies such as mine. This Government’s Queen’s Speech was detached from the lives of people who want to work hard but who often cannot get the extra hours and of private renters who cannot ever hope to earn in the required bracket.

Justin Tomlinson (North Swindon) (Con): I would add to the hon. Lady’s list of housing costs the practices of some leasehold management companies, which trap tenants with ever increasing service charges while not allowing them the access they should to the right to manage.

Meg Hillier: Absolutely. Although there has been good cross-party work in the House to reform leasehold management, there is much more to be done. It is no wonder that there is a demand for home ownership in

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this country, because it gives people greater control. However, that is now out of the reach of so many people that reforming the rights of tenants is long overdue across all sectors, but particularly in the private rented sector, including leaseholders.

I call on the Government to look seriously at rents and at the growing housing benefit bill. The £45 billion a year that is spent on housing benefit could, if capitalised, provide a huge opportunity for bodies such as local authorities, housing associations and perhaps others to invest in building new homes at affordable and intermediate rents, which would provide homes for the very people in my constituency who are being driven out by high costs.

Finally, I want to touch on the Government’s policy of providing new social housing at 80% of local private rents. I will give the private rents in my constituency to give the House a flavour. A two-bedroom flat in my constituency in the lower quartile costs £300 a week. One in the upper quartile costs £400 a week. For a three-bedroom, family-sized property, the average rent in the lowest quartile is £388. Even if only 80% of those rents is paid, how affordable are they?

We need to tackle what affordability means if we are serious about helping people into work and getting the economy moving. If people are in work and have disposable income, they will spend. At the moment, they are struggling to survive and the Queen’s Speech does nothing to help them.

3.21 pm

Mike Crockart (Edinburgh West) (LD): It is a great pleasure to speak in support of the Queen’s Speech.

The Government recognise that household budgets are under extreme pressure. I am happy that we are taking action to support households with the cost of living. In the little time available to me, I will concentrate on one aspect of those costs: the cost of energy. The consumer group Which? recently found that 82% of consumers list the cost of energy and fuel as a top financial concern. It matters not just to fuel-poor households, but is a key issue for millions throughout the UK, including many small businesses. That is why I am glad that the Energy Bill will introduce radical new measures to make energy tariffs fairer and to make energy suppliers more accountable to consumers by strengthening Ofgem’s role.

By giving statutory backing to Ofgem’s retail market review proposals, we will ensure that customers receive the best deal on their energy tariffs, which will mean a radical reduction in the number of energy tariffs that are offered to consumers. That will be a huge improvement on the old regime, in which the hundreds of complex tariffs have led to confusion and a complete lack of transparency. Under the reforms, energy companies will be legally obligated to place households on the cheapest tariff for their individual payment and tariff preferences, and to provide households with relevant personal information.

Jim Shannon: Does the hon. Gentleman feel that competition provides the motivation to reduce prices? In Northern Ireland, where there is not the same competition, energy costs for industries and businesses are 30% or 40% higher. That is an example of where competition could bring prices down.

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Mike Crockart: I agree entirely. I would add that unfair competitive practices are being used, especially where businesses are concerned. Small businesses are being locked into long-term deals and are missing windows to change to different suppliers. They are penalised by higher charges—sometimes 60% or 80% higher. Energy for small businesses is a serious concern that needs consideration in the Energy Bill.

Jackie Doyle-Price (Thurrock) (Con): There is another side to the energy market, which is the supply side. Does my hon. Friend agree that after the rapid closure of our coal-fired power stations because of EU regulation, the new supply is not coming down the track fast enough, which will add to higher fuel costs?

Mike Crockart: I agree with the hon. Lady to a point. I believe that the Energy Bill will help to ensure that extra power generation of a cleaner and greener nature will come further down the track. I will say a little about that later, if I have time.

The Energy Bill will ensure that the changes for energy companies become legally enforceable from summer 2014. We are working with the companies and urging them to implement the changes voluntarily ahead of that date, but the signs of such voluntary change are patchy. When I met one of the big six energy companies recently, it spoke animatedly of its plans for the future, but the talk was not of simplification. Instead, it talked about personalising the tariff to my individual circumstances and tailoring the charges to mirror my lifestyle and work pattern. To put it another way, it made it so complex and confusing that the chances of me understanding it and switching my energy supplier were minuscule. That is not the way forward. We want to empower energy customers by untangling the maze of tariffs. The Bill will do just that and make energy suppliers more accountable and more focused on the needs of their consumers.

We are raising awareness of and supporting collective switching schemes. That is one way in which customers can save money on their energy bills. DECC allocated £5 million to 31 successful projects in the Cheaper Energy Together competition, which spans 94 local councils and eight third sector organisations in Great Britain. One of the successful bids came from South East Scotland Together, which is delivered through Changeworks. It received more than £400,000 to help people in my constituency to save money. Such measures to ensure that consumers get the best deals on their energy prices reflect our determination to tackle rising energy bills.

Energy education for consumers is also key. I have spoken in previous debates about the necessity of reducing energy use. Reduction is the one step that will not only help households to reduce their bills, but help us to achieve a greener future. To quote from the report by the Energy and Climate Change Committee,

“Demand-side measures…are potentially the cheapest methods of decarbonising our electricity system…reducing overall demand”.

Knowing how we use energy in our homes and workplaces is key to reduction. That is why the single largest infrastructure project on which the Government are embarking in this Parliament is to roll out smart meters by 2019.

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As was acknowledged in a written ministerial statement on 19 December last year, smart meters are the best tool that we have in energy reduction. They have the potential to give customers accurate, real-time information about how much energy they are using and how much it costs. In my constituency, British Gas has installed 837 smart meters. With the average home saving 5% through the use of a smart meter, that is a potential saving of £54,405 in my constituency alone. More importantly, that is 5% of their energy use that we no longer have to generate. It is essential that smart meters have the capacity for real-time management, as well as the ability to record the energy that is fed back into the distribution network from co-generation sources, such as wind turbines and solar panels.

Unfortunately, the pressures on wholesale energy prices mean that household energy bills will probably go up in the medium to longer term. We must be clear that wholesale energy prices are a reason to increase our investment in renewables, which will increase our energy security and help to insulate this country from the unpredictable wholesale market, rather than a reason to run headlong towards the mirage of cheap shale gas. Our commitment to a diverse, low-carbon energy mix is radical and positive. Our reforms will ultimately ensure that people get the best value for money by shielding them from the volatility of global fossil fuel prices.

While we have been building a stronger, greener economy and a fairer society, our support for the people who need those things has not wavered. In government, the Liberal Democrats are helping millions of low-income and vulnerable households with the cost of living through the warm home discount, which is available to about 2 million households. That includes 1 million of the poorest pensioners, who are eligible to receive a rebate of up to £130 on their electricity bill during the winter. There is the winter fuel payment for more than 12.6 million pensioners in 9 million households, and additional cold weather payments, which during this year’s cold snap helped the most vulnerable people in my constituency to keep their homes warm. Last winter, 5.2 million individual payments were made in the UK, worth a total of £129.2 million. That level of support for our most vulnerable is available only because, in 2010, the coalition Government reversed Labour’s plans to reduce the payment to £8.50 and instead made it £25 permanently.

I do not have time to talk in detail about the green deal, our Government’s flagship—[Interruption.] I am astounded that Members seem to find something funny about the possibility of saving hundreds of pounds every year on their constituents’ bills.

Meg Hillier: Will the hon. Gentleman give way?

Mike Crockart: No, I will not, because I have only one minute left.

Nor do I have time to talk about the UK Green Investment Bank, the excellent Edinburgh institution that has already invested £635 billion in green projects, leveraging the overall figure up to £2.3 billion. That investment will ensure that there is enough secure, indigenous, low-carbon energy to provide for more than 2 million homes in the United Kingdom.

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The Government have a once-in-a-generation opportunity to decarbonise and ensure that there is a more competitive energy sector in the future. I am proud that we are seizing that opportunity while delivering policies to help families with the cost of living and investing in the future of our economy.

3.30 pm

Clive Efford (Eltham) (Lab): This Queen’s Speech has generated more debate about what is not in it than about what is, and it has highlighted the Government’s dysfunctionality. As we heard from my right hon. Friend the Member for Don Valley (Caroline Flint), the Prime Minister made a big announcement about putting people on the lowest energy tariff, a promise that has proved completely worthless. There is nothing effective in the Queen’s Speech to protect consumers from the cost of energy bills.

The Institute for Fiscal Studies published a report just before the Queen’s Speech showing that all the advances that had been made in tackling child poverty would be wiped out by the benefit changes that the Government are introducing. There was nothing to deal with that in the Queen’s Speech. Yet at the same time, there is a millionaires’ tax increase. Those millionaires share £27.4 billion of income, but they apparently deserve a tax cut while child poverty increases.

There are no coherent proposals for growth or job creation.

Jim Shannon: Is the hon. Gentleman alarmed by figures that seem to indicate that because of the changes to benefits, some 200,000 children will be added to the list of those in child poverty?

Clive Efford: I think the IFS puts the increase at 1 million children, but I take the hon. Gentleman’s point.

There are no proposals in the Queen’s Speech to stimulate the construction industry and build social housing. It is worth remembering that the Government inherited the biggest council house building programme for more than two decades, and then scrapped it as part of their austerity measures. In London, there were 11,328 social rented housing starts in 2010-11. That figure plummeted to 1,672 in 2012-13. That is a time bomb hitting young people in London, and the problem goes right up the social scale. It does not just affect people on low incomes who are in desperate housing need. People on above-average incomes who have children cannot afford to rent or buy in the private sector in London. That time bomb will not go away, and the Queen’s Speech does nothing to address it.

David T. C. Davies: I cannot comment on the London statistics, but I know that social house building has fallen off a cliff over the past two years in Wales, an area that is run by a devolved Labour Government. What does the hon. Gentleman say to that?

Clive Efford: I say that we need to build more houses. I said that when we were in government, I am saying it now and I will continue to say it consistently.

There is nothing in the Queen’s Speech on sport. We have just had the greatest year for sport that this country has ever known, but the Government have not come up

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with a coherent strategy across the whole of Government that will deliver sport in our communities and use the armies of volunteers up and down the country who are working hard in sport. We need a coherent strategy that will allow them to plan ahead for the long term and deliver the elusive sporting legacy, but there was nothing of that in the Queen’s Speech.

All that we have had is the Government parties falling into warring factions over different parts of their own Queen’s Speech. It started with the Deputy Prime Minister saying within 24 hours of the Queen’s Speech that he was not happy about the changes to child care ratios in nurseries. We have heard from several people who have been advising the Government on the matter, such as Professor Cathy Nutbrown, whom they commissioned to conduct an independent review of child care qualifications, and Dr Eva Lloyd and Professor Helen Penn, two more experts whom they commissioned. Professor Cathy Nutbrown said:

“Watering down ratios will threaten quality. Childcare may be cheaper, but children will be footing the bill.”,

and Dr Eva Lloyd and Professor Helen Penn said:

“Deregulation in the UK would lead to a reduction in quality.”

Meg Hillier rose

Clive Efford: I hope my hon. Friend will forgive me, but I do not have time to give way.

These things were known before the Queen’s Speech was written, so it is incredible that the Deputy Prime Minister then discovered that he did not support the measure included in it. He said:

“When we as a government consulted on changing the number of little toddlers that each adult can look after, the response from experts, from parents, from nurseries was overwhelmingly negative…They felt that the risks outweighed the benefits and it wouldn’t necessarily reduce costs. So that’s what I still have reservations about, about this change.”

That is the Deputy Prime Minister within 48 hours of the Queen’s Speech to which he put his name.

We are told that there is no reference to a referendum on Europe in the Queen’s Speech because the bullying Liberal Democrats stopped the Conservative party including it. That may be so, but what about the little toddlers to whom the Deputy Prime Minister referred? If he has a veto on a referendum on Europe, why did he not veto the measure on little toddlers and staff ratios in our nurseries? It seems to me that more than one party on the Government Benches is obsessing about Europe, and that is the Liberal Democrats. They have clearly got their values wrong on this issue.

All Governments face rebellions—I have even rebelled myself in the past—but I have never heard members of the Cabinet say that not only will they abstain on something, they will abstain on their own Queen’s Speech right at the start of the parliamentary Session. Can that be right? Is that the way we expect our Governments to behave, by falling apart almost immediately? The Secretary of State for Defence has effectively issued a warning to his leader that unless a change in the deal with Europe is achieved, he will vote against us remaining in the European Union. The Secretary of State for Education has said that he intends to abstain if a motion is put before the House on the matter of regretting the absence of a referendum on membership of the European Union in the Queen’s Speech.

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While that is going on—this, in my opinion, is where the public start to fall out of love with politicians—the Prime Minister is in the USA promoting on behalf of the UK a trade agreement that will be negotiated directly between the USA and Europe. He is enthusiastically supporting that agreement over there, while at the same time his party over here is falling asunder on whether to vote against its own Queen’s Speech because there is no reference to a referendum on membership of the European Union. No wonder the public are wondering what we as politicians are about.

The word “omnishambles” has often been mentioned in relation to this Government, and I think it will enter the vocabulary of the UK, just as “Fergie time” will. I say to the coalition that it is playing in Fergie time, and people out there are blowing their whistles and calling time on this Government.

3.38 pm

Mary Macleod (Brentford and Isleworth) (Con): The Gracious Speech by Her Majesty the Queen gives us a programme for the year ahead in Parliament, and today’s motion on the cost of living is immensely important and integral to the world we live in today—especially, I would argue, in the wonderful, creative capital city of London. The UK is ranked 18th in the world for the cost of living. Norway tops the ranking followed by Switzerland and Australia, and Japan and France are also above the UK. Real household income has almost doubled in the past 55 years, and living standards have been transformed. In 1970, fewer than one in three houses had central heating, but that is now 96%; just one third of people had a telephone, but that is now 87%; and 65% of people had a washing machine, which is now 96%.

Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op): The hon. Lady cites interesting statistics, but is she aware that figures came out today showing that Britain has dropped seven places down the world family income table to 12th, which shows the squeeze that the Government are putting on hard-working families?

Mary Macleod: If the hon. Gentleman bears with me, I will come shortly to what the Government are doing to help hard-working families.

The consumer prices index is steady at 2.8%, which is less than half its peak rate of 5.8% in September 2008. However, it is true that, in recent years, consumers are paying a higher percentage of their household income for essentials such as energy, fuel, child care and housing.

The right hon. Member for Don Valley (Caroline Flint) could not answer the question about borrowing, and nor did she apologise for leaving the country in the state she left it when the current Government took over in 2010. What are this Government doing? First, they are dealing with the budget deficit to ensure low interest rates and stability. Interest rates are at an historic low, benefiting all those who pay a mortgage. Mortgage rates are about 3.5%; in 2000, I was paying 7%.

Secondly, the Government are putting money back into people’s pockets by lowering tax. As I have said, they are raising the personal allowance to £10,000 in April 2014, and taking 2 million people out of tax altogether. That will mean that 4,900 Brentford and

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Isleworth residents in west London have been lifted out of tax by the Conservative-led Government since 2010, and that 49,000 people in my constituency will be more than £700 better off each year.

Mrs Laing: Does my hon. Friend agree that the provisions she has outlined will particularly help women, and therefore families and small children?

Mary Macleod: I completely agree with my hon. Friend. In addition, more women are in work than ever before.

Thirdly, the Government are taking action on the things that impact most on the cost of living. On energy bills, they are ensuring that providers let consumers know the best tariff by simplifying bills to make them easier for people to understand. The Government have cut fuel duty. Fuel is 13p cheaper than it would have been under the Opposition. It will cost the average family in my constituency £159 less to fill up the car.

I mentioned child care, which has been one of the main barriers to women in the workplace and in creating new businesses. The changes will make an impact on helping women to set up new businesses and to create growth and jobs in the years ahead. The Government are extending free child care to women who work fewer than 16 hours a week, and increasing entitlement to free education and care for three and four-year-olds to 15 hours a week. We have also increased the free entitlement to early education to two-year-olds from lower-income households, which is helping the poorest in society. From 2015, the Government will meet 20% of the first £6,000 in child care costs per child for working families with children under 12.

On housing, I welcome the Help to Buy package—a £5.4 billion package to tackle long-term housing market problems. I also welcome the mortgage guarantee scheme to help first-time buyers and the funding for lending scheme. Genworth Financial in my constituency proposes private sector involvement in the scheme. I look forward to working with it and the Treasury to see whether we can make the scheme a success.

Fourthly and importantly, the Government are boosting business and encouraging aspiration. Ultimately, building growth in the economy by encouraging aspiration and supporting business to grow is how to address the cost of living. What have we done? We have lowered corporation tax so that it is the lowest in the G20. We have national insurance breaks for businesses. We have deregulation of businesses and less red tape. We have scrapped the beer duty escalator. Fuller, Smith and Turner, which is based in my constituency in Chiswick, says that scrapping the escalator is excellent for British brewing, British farming, British pubs and British jobs.

Nearly 600 new businesses were founded in Brentford and Isleworth in 2012, putting us in the top 10 of the entire country. We have worked with women in my constituency to help and encourage them to set up their own businesses. The hon. Member for Feltham and Heston (Seema Malhotra) gave unemployment statistics from her constituency. I am not sure which statistics she was looking at. Her constituency is next door to mine and has the same London borough of Hounslow. Jobseeker’s allowance claimants fell by 4.4% and youth

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claimants fell by 10% in the past year. Youth unemployment in my constituency is down by nearly 15% since last year and unemployment by 5.5%. We have done more to help by having events such as the west London jobs and apprenticeships fair, which I led in my constituency.

West London is a hub for great business, and I am glad that my right hon. Friend the Secretary of State for Communities and Local Government is in his place, because I want to appeal to him on permitted development rights and change of use from offices to homes. We really wanted the Great West road in west London, which is right next to Heathrow, to be exempt and protected, because we want to build businesses there. I invite him to come to the Brentford golden mile and see what we can do for businesses and job creation for the future.

Britain is a great country for so many reasons. We have won 76 Nobel prizes for science and technology. We are the No. 1 location for European headquarters. We have the largest creative sector per head in the world. We are home to four of the world’s top 10 universities and the world leader in offshore wind energy production and research. The Government are standing up for business, for people who want to own their own homes and for people who work hard and aspire to get on in this great country. The Government are standing up for Great Britain, and the Gracious Speech will help us to deliver in that task.

3.46 pm

Mr Nick Raynsford (Greenwich and Woolwich) (Lab): I intend to focus, as many other hon. Members have done, not on what is in the Queen’s Speech, which is one of the thinnest in recent memory, but on one of the most serious omissions. I refer not to Europe, but to the absence of adequate measures to stimulate growth and improve housing output, and by doing so improve people’s living standards.

As I propose to speak about the vital importance of increased housing investment, I should at the outset draw attention to my interests as recorded in the register.

The figures speak for themselves. Housing starts last year totalled just 98,000, 11% down on the already hopelessly inadequate level of 111,000 the year before. Those two years, 2011 and 2012, represent the worst output figures from any Government since the 1920s. Why has this happened? Clearly, the financial crisis which erupted in 2008 had a huge impact. Before that, housing starts totalled 183,000 in 2007—a level that was not sufficient, because a larger output was necessary to meet the forecasts, but it was massively ahead of anything we have seen since.

With the impact of the global meltdown, starts fell to just 85,000 in 2009, the nadir, and then recovered to some 110,000 in 2010. Since then, housing starts, like the economy, have been flatlining. We have seen no growth and no further recovery. The telling figure is that new starts in the second quarter of 2010—the quarter in which the Government changed hands—were the highest that have recently been achieved. No quarter since then has matched the level of output in that second quarter of 2010. That reinforces the point about the housing market flatlining, like the economy.

The case for doing something about the level of new starts is not just about meeting housing needs—although that is a powerful case. It is also about the economy,

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because the housing sector has a huge economic benefit. Not only is it labour intensive, but there is a considerable multiplier effect. It has a long supply chain, with all the manufacturers and material suppliers who contribute to house building, and all the firms involved in manufacturing the white goods, furnishings and fittings that go into finished homes. Stimulating house building has real scope to create new jobs and create growth in the economy. So why are we not doing it?

To be fair to the Government, they have been almost obsessive about trying to find ways in the past year to get the house building market going again. We have had endless announcements and proposals, some of which have been reasonably, if modestly, effective. Schemes such as NewBuy and First Buy, which were of course modifications of the previous Government’s homebuy schemes—I may have got the names wrong, because they change all the time, but the Minister knows what I am talking about—have made a modest but useful contribution. Others, however, have not. I am afraid that the new homes bonus has proved to be an extraordinarily expensive and ineffective measure, as the National Audit Office report devastatingly reveals. There has been no measurable sign of real advances in stimulating local authorities to grant planning consents.

Similarly, the Government seem to be tinkering obsessively and endlessly with the planning system to no demonstrable benefit whatsoever. The level of planning consents for new housing in the past two years has been the lowest on record for a very long time. That has not been successful, and nor is it likely that the mortgage support scheme announced in the Budget will be of great benefit. Acting to help to support demand when supply is absolutely inadequate is, as the Treasury Committee has highlighted, likely to stimulate house price inflation. We need to act on supply.

The Government need to focus on two areas, the first of which is the private house building sector. The big house builders are doing pretty well at the moment, but are doing so on the back of very low volume. They are seeing their balance sheets recover and their stock market valuations rise, but they are not building many new houses. Their model is very much geared towards high-value, low-volume development. The small and medium-sized house builders are suffering desperately, yet they are the people capable of providing greater volume and meeting the middle market.

The affordable and social housing sector is an even greater priority. The Government were responsible, with their ill-judged 60% cut in investment at the very start of their time in office, for undermining disastrously the affordable and social housing programme. Reversing that and investing in building new homes is a key priority. I regret that that is not in the Queen’s Speech, but I hope the Government change their mind and recognise its importance.

3.52 pm

David T. C. Davies (Monmouth) (Con): May I turn to the comments made earlier about our energy policy by the Secretary of State for Energy and Climate Change, the right hon. Member for Kingston and Surbiton (Mr Davey)? That policy will have an impact on the cost of living for all householders and anyone who buys

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manufactured goods. I do not accept his premise that the science on climate change, on which our energy policies are based, is settled.

The theory is pretty simple: ever since we started industrialising at the end of the 1700s, we started pouring CO2 into the atmosphere. As a result, the temperature across the world has warmed up and we must do something about it—that is the basic theory our energy policy follows. There are various flaws in that argument. The earth has always gone through cycles of warming and cooling. Coincidentally, at a time when we started to industrialise, we were coming out of a very cool period—a time referred to as a little ice age—when even the Thames used to freeze over. What is the total increase in temperature on which we are basing our policies and fears about climate change? According to all the statistics, it is just 0.7° C, yet some of that is clearly due to the fact that the earth was coming out of that cool period. Nobody can answer this simple question: how much of that 0.7° C is not down to CO2, but down to the natural warming that would have taken place anyway?

Then there is a problem with correlating CO2 levels with temperature increases in the past 300 years or so, because there is no straight line between the amount of CO2 in the atmosphere and temperatures going up. Between 1940 and 1970, temperatures were going down, and that was at a time when we were putting enormous amounts of CO2 into the atmosphere. Nobody can explain why that is. Since 1998, there has been no increase in average global temperatures—it has completely tailed off. Again, nobody can come up with a convincing explanation for that. Yet despite all that, and many other queries too, we are embarking on policies that will put up costs for householders, through the use of subsidies for solar and wind-powered energy, and put up costs for manufacturers, through the various taxes on carbon that we are levying.

The most serious point is that we are doing so unilaterally: Britain is taking steps that nobody else in the world is taking. Our carbon emissions are actually not that great compared with the rest of the world, yet we are unilaterally punishing manufacturers, forcing them to take their factories elsewhere, where they will continue to emit exactly the same amount of CO2, taking their jobs and forcing us into foreign exchange deficits as we buy goods that were originally made here.

Alec Shelbrooke: My hon. Friend is eloquently putting the case for those who doubt that global warming is down to climate change, and I am sure that many support his views, but does he agree that moving to a more renewable energy environment is important for energy security as much as anything else?

David T. C. Davies: My hon. Friend makes a good point, because there is a lot that we can do to generate electricity without CO2 and one would think that the Greens would be the first to support it. We had a proposal recently for a Severn barrage that could generate 20% of Britain’s electricity. It was an interesting proposal and one for which I would want to see more costings, but it was totally opposed by the environmentalists. We know that we can generate large amounts of electricity on demand and relatively cheaply from nuclear power without emitting CO2, but where do the environmentalists stand on it? They are totally against it.

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In the United States of America, by exploiting shale gas, I understand that they have halved electricity prices and created a wonderful environment for manufacturers—so much so that they are returning to the States. More importantly for the environmentalists, however, that has also reduced American CO2 emissions. One would think that the Greens would be jumping for joy, but instead they are doing everything they can to prevent the Government from encouraging those companies to get in there, drill and exploit the cheap shale gas that we know we have and which could do so much. I question what their beliefs really are.

I hear the environmentalists saying to me, “The most important thing to do is reduce our CO2 emissions”, but whenever anyone puts solutions in front of them that would reduce CO2 emissions and deliver the cheap electricity that we all need, they do not want to know. They are the same people who march against globalisation and capitalism, who totally opposed any form of nuclear deterrent in the 1980s and who a few hundred years ago would have been the Luddites smashing up the spinning wheels. These people live in a fantasy world, believing that if we could just get rid of technology, we could go back to living in wonderful grass huts and things in some Tolkienesque world, like the hobbits before the evil one started attacking them. They are totally opposed to the high standards of living that globalisation and capitalism have delivered in the west and are delivering across the whole world.

It is high time that the Government realised that these people will never support anyone in government. Only recently, Friends of the Earth ran a big campaign against increased energy costs, but one reason energy costs have increased is that the Government have been trying to follow policies recommended by that same organisation—policies of supporting wind farms and solar panels that are bound to increase energy costs. It is ludicrous for the people who have been advocating policies that will increase energy costs to demand that we bring them down.

Caroline Lucas: I really did not want to intervene, because I did not want to encourage the hon. Gentleman and give him an extra minute in which to continue coming out with this rubbish. I thought that the discussion on Europe was where we found the fruitcakes, but I am finding them this afternoon as well. Is he really suggesting that it is not rising gas prices that are increasing people’s fuel bills right now? It is not renewable energy, but the gas imports that are the problem.

David T. C. Davies: It is not rising temperatures that the hon. Lady ought to be concerned about, but rising tempers among the vast majority of the public, who are fed up with paying higher fuel bills and bills for manufactured goods for a problem that simply does not seem to exist.

I say to the Government that we need a proper cost-benefit analysis of our climate change policies before we embark on measures that will drive manufacturing elsewhere in an effort to solve a problem that quite possibly does not exist, and I say to the hon. Member for Brighton, Pavilion (Caroline Lucas) and to the hon. Member for North Antrim (Ian Paisley), who is no

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longer in his place but who also referred to me as a fruitcake, that it was the fruitcakes who warned against the euro 10 years ago. We were accused of being fruitcakes then, but the fruitcakes were right. Fruitcake is a cheap and reliable source of energy. I am for the fruitcakes. I am proud to be a fruitcake. Long may fruitcakes continue.