Tag: Housing

  • 1997 Conservative Party Manifesto – 2 April 1997

    Below is the text of the 1997 Conservative Party manifesto.


    Foreword

    The Conservative administrations elected since 1979 are among the most successful in British peacetime history. A country once the sick man of Europe has become its most successful economy. A country once brought to its knees by over-mighty trade unions now has industrial peace. Abroad, the cold war has been won; at home, the rule of law has been restored. The enterprising virtues of the British people have been liberated from the dead hand of the state. There can be no doubt that we have created a better Britain.

    Why, then, do we still need a Conservative Government? Because resting on what we have achieved is not enough. To stand still is to fall back. Our goal must be for Britain to be the best place in the world to live.

    We live in a tougher, more uncertain world. A fast-moving global free market is emerging. New economic powers are rising in the East. Family life and social attitudes are changing. Europe is adjusting to the end of communism. The European social model is failing. The nation state is under threat. We must respond to these challenges.

    We have turned around our economic fortunes. We have fewer people out of work and more in work than any other major European economy. British people now have the opportunity of a prosperous future. But that prosperity cannot be taken for granted. We have to compete to win. That means a constant fight to keep tight control over public spending and enable Britain to remain the lowest taxed major economy in Europe. It means a continuing fight to keep burdens off business, maintaining our opt-out of the European Social Chapter. If we relax for one moment, our hard won success will slip away again.

    We have strengthened choice and personal ownership for families, and rolled back the state from areas where it was interfering unnecessarily in our lives. But we now have the opportunity to achieve a massive expansion in wealth and ownership so that more families can enjoy the self-respect and independence that comes with being self-sufficient from the state. Our far-reaching proposals for personal pension funds are central to achieving this – so too are our plans to increase support for the family in our tax system. Our aim is to spread opportunity for all to succeed, whoever they are and wherever they come from, provided they are prepared to work hard. To turn the “have nots” into the “haves”. To support the family in providing security and stability.

    We have modernised and reformed many of the areas where the state still has a vital role. But we now have to build on these reforms to deliver even better services. We must continue providing the resources to invest in our modernised health service. We can now provide parents with a hard-edged guarantee of standards in schools. We need also to widen choice in areas where state bureaucracy has constrained it.

    We have pioneered new ways of building partnerships that engage the private sector in areas previously dependent on the public purse. We now need to capture private sector investment on a massive scale to regenerate our cities, transform our crumbling local authority housing estates and modernise other public assets.

    The only way to secure this future of opportunity is to stick with the Conservative programme of continuing reform. Now would be the worst possible moment to abandon the pathway to prosperity on which we are set. We must keep up the momentum.

    At the same time we must maintain the security that a stable nation provides in an uncertain, fast-changing world. We must protect our constitution and unity as a nation from those who threaten it with unnecessary and dangerous change. And we must stand up for our interests in shaping a free-market Europe of sovereign nation states.

    There is, of course, an alternative on offer: to load costs on business while calling it “stakeholding”; to increase the role of the state, while calling it “the community”; to succumb to a centralised Europe while calling it “not being isolated”; to break up our country while calling it “devolution”.

    To risk this alternative would be a disaster for our country. We have come a very long way. We must be sure that we do not throw away what we have gained, or lose the opportunities we have earned.

    Our Record

    The UK is on course to grow faster than both France and Germany for the sixth successive year in 1998 – a post-war record.

    Inflation has now been below 4% for well over 4 years, the longest period of low inflation for almost half a century.

    Mortgage rates are at their lowest levels for 30 years.

    Unemployment has fallen to its lowest level for 6 years. We now have a lower unemployment rate than any other major European economy. Youth unemployment in Britain has fallen to less than 15% whereas by contrast, in France it has risen to 27% and in Italy to 33%.

    A higher proportion of our people are in work than in any other major European economy – 68% against a Continental average of 57%.

    The UK is the favourite location for inward investment into Europe, attracting around one third of inward investment into the European Union.

    We have the lowest tax burden of any major European economy, with the government taking almost 8% less of national income than the European average.

    Public borrowing has averaged 3.4% of GDP since 1919 compared with 6.8% (and a peak of 9.5%) under the last Labour Government. Our level of public debt is now one of the lowest in the European Union – whereas it was one of the highest in 1979.

    In 1994 the UK lost 300,000 working days through strikes, the lowest figure ever recorded; in 1979 the figure was 29,500,000: nearly 100 times that figure.

    Britain ranks fifth in the world in international trade, and exports more per head than America or Japan. Exports account for 28% of GDP as against 9% for Japan, 11 % for USA and 24% for Germany and France. Britain’s current account is broadly in balance, reflecting our increased competitiveness and improved trading.

    1. Doubling Living Standards

    The free market is winning the battle of ideas the world over. From Russia to Vietnam, from China to Romania, people are realising that the socialist model has failed. This is not just an economic triumph. It is a triumph for human freedom. Britain helped to secure it. We should take pride in it.

    The spread of the free market heralds a new age of global competition. That means new markets for British goods and services, but new competitors for British companies as well.

    If we try to protect ourselves from these challenges with more regulations, public subsidies and a cosy dependence on government then Britain will fail. But if we boldly embrace these new opportunities by pushing forward the economic revolution we began in 1979, then we will enter the next millennium with boundless prospects for growth and prosperity.

    That choice – between stagnation and dynamism – is the choice which faces Britain at this election. It is a stark choice between the British way – of trusting the people and unleashing enterprise – and the failing social model, practised on the continent, which the Labour Party wants to impose on us here under the guise of “stakeholding”.

    Hard economic evidence shows how great is the divide between these two strategies. Britain is now in its fifth year of growing faster than France or Germany. Unemployment in Britain has fallen to less than two million, while it rises across Europe. Britain attracts nearly forty per cent of all the American and Japanese investment in Europe. Our aim now is to safeguard these achievements and build on them, so Britain becomes the unrivalled Enterprise Centre of Europe.

    A Low Tax Economy

    For enterprise to flourish, the state must get out of the way of the wealth creators. We are the only party that can cut taxes because we are the only party which is serious about controlling public spending. The choice between the two economic philosophies is clean In the years before 1979, public spending in Britain kept pace with the average for Europe as a whole. Since then, it has continued rising on the continent, while we have restrained public spending here. Now, public spending takes about 40% of our national income as against an average of 50% on the continent. We have broken free from a trend in which the rest of Europe is still trapped.

    Conservative government will keep public spending under tight control and ensure that it grows by less than the economy as a whole over the economic cycle. At the same time we will continue to spend more on the services which matter most to people – hospitals, schools and the police.

    Over the next parliament, we will achieve our goal for the government to spend less than 40% of our national income.

    That means we can reduce the amount government borrows too, and meet our aim of moving towards a balanced budget in the medium term. Our plans show how we can virtually eliminate public borrowing by the year 2000.

    Thanks to our success in controlling public spending, Britain is now Europe’s low tax economy. This is one of the reasons why we are becoming the Enterprise Centre of Europe.

    Our aim is to ensure Britain keeps the lowest tax burden of any major European economy.

    In the election manifesto of 1992, we promised that “We will make further progress towards a basic income tax rate of 20p”. Since then, we have cut the basic rate of income tax from 25p to 23p, and extended the 20p band so that over a quarter of all taxpayers now only pay income tax at the 20p rate. Achieving our public expenditure goals will mean we can sustain permanently low tax levels.

    Over the next parliament, our aim will be to achieve our target of a 20p basic rate of income tax, while maintaining a maximum tax rate of no more than 40p.

    Stable Prices

    Inflation has to be kept firmly under control for an economy to thrive. Britain is now enjoying the longest period of stable prices for almost fifty years. We are on target to reach our goal of 2½% inflation this year.

    Low inflation has delivered lower interest rates whilst preserving the value of people’s savings. Homeowners are now enjoying mortgage rates at the lowest levels for 30 years.

    It has taken tough decisions to break free from our reputation as a high inflation economy. No Conservative government will jeopardise this achievement.

    During the next parliament, we will maintain an inflation target of 2½% or less.

    Rising Living Standards

    The only secure base for rising living standards is a strongly growing economy, low levels of public spending and taxation, and stable prices. That is exactly what Britain is achieving. People are reaping the rewards of their hard work as their take home pay increases. Between 1974 and 1979, the take home pay for a family on average earnings rose, in real terms, by just £1 a week in today’s prices. Since 1979 it has increased by £100 a week; this year alone it will increase by £7 a week.

    The goal which we set ourselves in 1995 is to double living standards over 25 years.

    We are on course to achieve our goal.

    2. Jobs and Business

    Our priority is to create jobs. This is not just an economic priority, but also a social and moral one. Jobs and enterprise are the best ways of tackling poverty and deprivation.

    Britain is succeeding. 900,000 jobs have been created over the past 4 years. By contrast the European social model is stifling job creation on the continent by imposing regulations and burdens on business. In the United Kingdom unemployment is much lower than in the rest of Europe and falling whereas in Germany, France, and Italy it has risen to its highest level for a generation. This is no accident. It is because we have pursued very different policies from those on the Continent.

    Curbing the power of trade unions, opening up markets and cutting red tape, have given us a low strike, low cost economy: and as a result Britain is the number one location for foreign investment in Europe.

    Never have such policies been so important. For the first time this century we face a world full of capitalist competition. The only way Britain will be able to compete and win in world markets is by sticking to the Conservative policies that are delivering success. We can earn prosperity as one of the world’s most successful global trading nations. We should not risk this progress by adopting the very policies that have made the continent uncompetitive and have increased unemployment in Europe by 4.5 million over the past 5 years.

    Small Businesses – Britain’s Risk-takers

    Governments do not create jobs. Businesses do. The source of tomorrow’s jobs will be small businesses, the seedcorn of Britain’s prosperity. Over the last 15 years, small businesses have created over 2 million jobs. By the year 2000, over half the workforce should be working in companies which employ fewer than 50 people. Back in 1979 only a third of the workforce did.

    Entrepreneurs often risk everything when they set up their own business. We have already helped them: raising the VAT threshold, cutting employer’s national insurance contributions, simplifying audit requirements and much more besides. Now we intend to go further, tackling the remaining problems they face.

    High taxes and rates deter enterprise. Our low tax structure has been crucial to our industrial revival. We already have the lowest corporation tax of any major industrialised country. As we want small businesses to flourish, we will go even further.

    We will cut the small companies rate of corporation tax in line with personal taxation as we move towards a 20p basic rate

    Investment and enterprise are deterred if the taxman takes too much of the capital that is built up by a successful business. Capital is ever more mobile, flying around the world to places where the tax on it is low: Britain must be one of those places.

    We will continue to reduce the burden of capital gains tax and inheritance tax as it is prudent to do so.

    One of the heaviest burdens small businesses face is business rates. At the moment, this bears more heavily upon small businesses than large ones.

    In the next parliament, we will reform business rates to reduce the cost that falls upon small businesses.

    No businessman has time to fill out reams of forms. We will continue to simplify the administration of NICs and PAYE for small firms, allowing them to concentrate on satisfying customers not bureaucrats. We are also tackling a problem that hits small businesses particularly hard – the late payment of bills. On top of our programme to ensure government departments and local authorities pay on time we have legislated to require companies to publish their payment policy and to report their record on how quickly they pay their bills to small businesses.

    We have already abolished over a thousand regulations. New regulations must only be introduced if it is clear that their benefits exceed their costs and they do not place an undue burden on a small firm.

    We will introduce “sunset” requirements into new regulations whenever appropriate so that they are automatically reviewed or dropped after a specific period.

    Many businessmen suffer regulatory burdens imposed by local government and quangos.

    We will therefore insist that the whole of the public sector adopts the same stringent rules that we require of central government in justifying the benefits of new regulations against their costs.

    Reducing the Burden on Companies

    Jobs depend on British firms winning orders: the difference between success or failure can be wafer-thin. Any extra burden on business will destroy jobs.

    Britain is enjoying more jobs and record investment, thanks to the competitive edge we have over other European countries. We are a low cost economy But that does not mean we are a low pay economy. Our competitive advantage comes from the lower costs facing our businesses. It can be measured by the social costs an employer has to pay on top of every £100 of wages: in Germany it is £31, in France £41, but in Britain, it is only £15.

    Many countries in Europe have tried to cocoon themselves from global competition behind layers of red tape and regulation – such as the Social Chapter and a national minimum wage. This provides a false sense of security, playing a cruel trick on working people. It also excludes the unemployed from work. As companies in the rest of Europe have grown more uncompetitive, employers have found it too expensive to employ new workers, investment has gone elsewhere, and the dole queues have lengthened. The European social model is not social and not a model for us to follow. But if Britain signed up to the Social Chapter it would be used to impose that model on us – destroying British jobs.

    No Conservative government will sign up to the Social Chapter or introduce a national minimum wage We will insist at the Intergovernmental Conference in Amsterdam that our opt-out is honoured and that Britain is exempted from the Working Time Directive: if old agreements are broken, we do not see how new ones can be made

    We will resist the imposition of other social burdens on the work place through a new European employment chapter.

    Welfare into Work

    Although governments cannot create jobs, they can help people train and find work. We now have in place a battery of schemes working with Training and Enterprise Councils to provide targeted help and training, including remedial education in literacy and numeracy. We are also developing new incentives, alongside Family Credit, to help people move off benefit into work.

    We will always help those in genuine need: in return, the unemployed have a responsibility to look for work and accept a reasonable offer That belief underpins our new Jobseeker’s Allowance which ensures that no-one can refuse reasonable work opportunities and remain on benefit.

    As unemployment falls, we want to focus on those who have been unemployed for some time. At present, Project Work is helping 100,000 people who have been unemployed for more than 2 years in cities around Britain. They are first given help in finding a job – which includes giving employers incentives to take them on. Those who do not find jobs are then required to work for a specific period on a community project. This helps them regain work habits and ensures they are available for work.

    As Project Work succeeds and demonstrates that its costs can be met by the savings from getting people into work, we will extend the programme to cover the long-term unemployed nationwide

    We will also develop an innovative “Britain Works” scheme which uses the experience and ingenuity of private and voluntary sectors to get people off welfare into work.

    Britain has one of the most mobile economies in Europe. People move on, and up, into better paid jobs more easily than on the continent.

    The Information Society

    Britain is at the forefront of creating tomorrow’s information society Already we have exposed domestic telecommunications to competition and stimulated investment in cable and satellite entertainment systems. And by opening up international telecommunications we will continue to encourage companies worldwide to base their global operations here. We will make sure that the digital revolution comes to Britain first.

    We are launching an ambitious programme with industry to spread “IT for All”, giving every adult the opportunity to try out and learn about new IT services. We will work with industry to ensure that all schools are connected to the information superhighway.

    We will use the Millennium Lottery Fund to transform the computer facilities and information links available in schools, libraries, museums, voluntary organisations and other public places after the turn of the century.

    This will give the public much wider access to information services in the years ahead. We will also take advantage of information technology to transform the way government provides services to the public.

    We will keep Britain in the vanguard of new mobile service development – including mobile telephone and information services – by introducing a pricing system for the radio spectrum to achieve more efficient allocation of radio frequencies.

    We will maintain a strong, free and competitive broadcasting and press environment at both national and local level, while continuing to be vigilant in monitoring whether action is needed to curb breaches of standards, and prevent unacceptable press intrusion.

    Science

    British science enjoys a worldwide reputation for excellence and cost-effectiveness, which makes Britain an attractive base for many domestic and overseas companies. We will continue to invest in science and target funds at basic research, which would not otherwise be funded by industry. At the same time we will provide an enterprising environment which encourages firms to invest with confidence in applied science.

    2020 Vision

    There is no part of the globe which has not been reached by British enterprise and British culture. We have always looked out beyond these shores, beyond this continent. Our language, our heritage of international trading links, our foreign investments – second only to America’s – are historic strengths which mean we are ideally placed to seize the opportunities of the global economy.

    Thanks to Conservative policies of liberalisation and privatisation we are strong in industries of the future such as telecommunications, financial services, and information technology. These are the industries that will benefit from opening up trade around the world. We will push for completion of the European Single Market and continue to pursue the objective of transatlantic free trade against the background of world trade liberalisation.

    Our aim is nothing less than tariff free trade across the globe by the year 2020.

    Free competition is important for free markets. Companies should not make agreements that restrict competition and hence result in poor value for consumers. We have set out proposals to give companies greater protection against price fixing, dumping, and other restrictive practices by larger competitors.

    We will introduce a Competition Bill to take forward these proposals in the first session of the next parliament

    We are committed to pushing forward our competitiveness agenda which is making Britain the Enterprise Centre of Europe.

    Opportunity and Ownership for Individuals and Families

    Our Record – Opportunity

    The right to buy has allowed 1.5 million council tenants to become homeowners. There are over 4 million more homeowners today than in 1979.

    The Government has spent £6 billion through housing associations to provide homes for rent. Between 1992 and 1995 housing associations provided 178,000 new lettings – 25,000 more than promised in the 1992 Manifesto.

    There are now around 10 million private shareholders, up from about 3 million at the time of the last Labour government. 2.5 million people now have tax free savings in PEP accounts, and 4.5 million in TESSAs.

    Since 1979, the success of private pension provision has raised the average income of pensioners by 60% more than inflation. Almost 90% of recently retired pensioners now have incomes over and above state benefits.

    Savings in private pension funds have increased to £650 billion –more than 4 times the level in 1979. Their value is greater than the pension funds in all other EU countries added together.

    Over the period 1979 to 1995, education spending per pupil rose from £515 to £1,890 – an increase in real terms of 48%. Real spending on books and equipment per pupil rose 56%. Teachers’ real pay rose 57%: from £270 per week in 1979 to £420 in 1995.

    In 1979, 40% of three and four year olds attended nursery school; in 1995 the figure was 59%. Our nursery vouchers now give this opportunity to every child.

    The proportion of sixteen year olds staying on in full-time education rose from 4 out of 10 in 1979 to 7 out of 10 in 1995.

    Almost 1 in 3 young people now go on to university, compared with 1 in 8 in 1979.

    The proportion of adults with no academic qualifications has halved since 1979 and the proportion of adults with a degree or equivalent has more than doubled rising from 5% to 12%.

    3. Choice and Security for Families

    The family is the most important institution in our lives. It offers security and stability in a fast-changing world. But the family is undermined if governments take decisions which families ought to take for themselves. Self-reliance underpins freedom and choice.

    Families are stronger if they have the money to look after themselves: that is why we are shifting power and wealth back to working families and away from the state. We have already achieved much – the average family’s disposable income has gone up by 40% since 1979. But we want to go further. The next Conservative government intends to reform the tax system so that it gives substantially more help to families.

    We also want to encourage people to save so they have the security and self-respect that comes from being able to rely on their own resources rather than immediately turning to the state. We have already made much progress here too with widening ownership of homes, pensions, and the new PEPs and TESSAs. We now propose further radical measures for more saving for retirement.

    Families and Tax

    We believe families should be left with as much of their own money as possible. They know better than politicians how to spend it. We have already cut the basic rate of income tax from 33p to 23p, and our aim is to get it down to 20p, benefitting 18 million taxpayers. We intend to do even more to help families in particular

    At the moment, if one spouse does not take paid work in order to look after children or dependent relatives, they not only give up earnings but may also be unable to benefit from their personal tax allowance. Yet this is the time at which their income is often most stretched.

    We believe our tax system should recognise and support the crucial role of families in their caring responsibilities. We will give them that support.

    We will give priority to future reductions in personal taxation that help families looking after dependent children or relatives by allowing one partner’s unused personal allowance to be transferred to a working spouse where they have these responsibilities.

    This will provide a targeted reduction in the tax bill to those families who need it most. Around 2 million one-taxpayer couples with dependent children, or looking after elderly relatives and others needing care, would gain up to £17.50 a week – around £900 a year

    Family Savings

    In the old days people just depended on the weekly pay packet or money from the state. But no job can be secure and the state cannot provide for every eventuality. It is ownership which brings true security and genuine independence from the state. That is why Conservatives have long dreamed of a property-owning democracy. Now we are delivering it in practice. Home ownership is up by 4.7 million. 10 million people own a direct personal stake in our economy. 16 million are gaining shares in their building societies thanks to our deregulation of them. We intend to carry forward our vision of a people’s share. This is a significant increase in personal security. It is the Conservative vision of security through personal savings – not a socialist vision of security through the state.

    We want people to enjoy Britain’s success – especially by owning shares in the companies for which they work. We have already introduced a number of schemes to encourage employee share ownership. To encourage a further expansion of worker shares, our new Share Match Scheme will allow employees to be rewarded with additional free shares if they acquire a stake in their company.

    Our goal is that by 2000, more than half of the employees of Britain’s larger companies will own shares in those companies.

    Four and a half million people now benefit from tax free TESSAs and 2.5 million from PEP schemes to encourage the accumulation of long term saving. We will continue to build on this success by exploring ways in which existing tax exemptions for savings can be developed – allowing individuals to secure their future and protect their families against unexpected contingencies.

    We will continue to raise the threshold for inheritance tax as it is prudent to do so.

    People are not just saving for themselves but for their children and grand-children. These savings should not be penalised by the tax system.

    For many people their biggest asset is their pension. Thanks to the steps we have already taken to encourage occupational and personal pensions, we now have £650 billion invested in private pensions – more than the rest of the European Union put together We now plan to build further on this achievement.

    We will make it easier for small employers to set up personal pension plans for groups of employees.

    We will create more flexibility for people who save in personal pension plans to continue investing in those schemes if they subsequently move to jobs with company pension schemes.

    We will also create flexibility for employees with savings in Additional Voluntary Contributions (AVC) schemes to take part of that pension earlier or later than their main company pension.

    But we believe the time has now come to plan for another important step in improving Britain’s pension provision. Britain is already much better placed than many other countries to afford state pensions in the future, but we want even more people to be able to look forward to properly funded pension that grows with the economy and is free from dependence on taxes paid by future generations. We now propose a practical way of achieving a gradual transformation of the state pension scheme.

    At the start of the next parliament we will set out proposals to provide all young people entering the workforce with a personal pension fund paid for through a rebate on their national insurance contributions. At retirement they would be entitled to the full pension earned by this accumulated investment. This could give them a pension significantly higher than they would currently receive from the state. But they will be guaranteed a pension at least equal to the current bask state pension, increased in line with inflation.

    This will be one of the most significant improvements in the state pension system since it was introduced.

    Older people currently in the workforce would be unaffected – they will continue to contribute as now and receive the normal state pension when they retire.

    This policy would come into effect early in the new millennium. Gradual phasing in of the new system over 40 years will make the impact on public finances affordable. Even at its peak, the net revenue forgone will be only a fraction of the savings from the recent Pensions Act. And eventually, the new policy will produce massive public expenditure savings.

    This far-sighted idea is in the best Conservative tradition. The growing wealth of the nation will provide for the next generation through private funding, underpinned by a state guarantee. British people will be able to look forward to retirement with even greater confidence. And our young people will have a pensions opportunity unrivalled in the world.

    Support for Families

    Conservatives believe that a healthy society encourages people to accept responsibility for their own lives. A heavy-handed and intrusive state can do enormous damage.

    Some families need help to cope with their responsibilities. For them, Social Services play a vital role. They help with children where parental care has failed. They deliver an ever wider range of services to people with learning difficulties or who are mentally ill. Our community care reforms have given them a central role ensuring that elderly people get care of the highest quality: and in their own homes where possible. We need to ensure that role is properly fulfilled.

    Early in the next Parliament we will introduce a Social Services Reform Bill which will create a new statutory framework for social services. The Bill will provide for greater openness and accountability in social services.

    We will provide new guidance to ensure social workers properly reflect the values of the community – focusing their efforts on those families who most need support, and minimising unnecessary interference. Social workers working with children will receive special training to cope with the often heart-rending cases they face.

    We will raise standards through a new regulatory framework which will apply the same standards in both the public and private sector.

    We will also remove the power of local authorities to operate care homes where this is in the best interests of the people for whom they are responsible.

    We believe that families who use social services should be able to exercise choice wherever practicable. We have given cash payments to disabled people to purchase the services they need directly.

    We also want new ways of reinforcing individual choice where possible. We will therefore ensure no barriers stand in the way of local authorities wanting to issue their users with vouchers to buy certain services.

    We will review the direct payment scheme, and provided it has been cost effective, we will extend it to other users of social services.

    Above all, we want to help families to help themselves. Caring for older – or disabled – relatives is one of the most natural human instincts. We recognise the crucial and often demanding role carers play, and will help them more.

    We will introduce a Respite Care Programme. This will enable family members with heavy responsibilities caring for a relative to take a much needed break. We will also offer more practical advice for carers who want to go back to paid work.

    But in some cases, elderly people need more care than their friends or relatives can provide. Financing long term care worries many families. We will create an imaginative, fair partnership between individuals and the public sector to resolve this problem.

    In the first session of the next Parliament we will implement our partnership scheme for long term care, making it easier for people to afford the cost of care in old age without giving up their lifetime savings.

    Good preparation for marriage can be an important aid to a successful family, while timely help in meeting difficulties can often avoid family breakdown. These are matters for voluntary effort, not the state, but we will continue to support such effort.

    We need to make sure efforts to help struggling families does not turn into unnecessary meddling.

    When the state goes too far, it is often the children who suffer They become victims of the worst sort of political correctness.

    We will introduce legislation to remove unnecessary barriers to adoption and introduce new rules to make adoption from abroad more straightforward.

    We will also monitor the workings of the Children Act, and act if necessary to ensure it maintains a proper balance between the rights of children and the responsibilities of adults.

    Social Services departments are now the fourth arm of the welfare state. Most people will need them at some point in their lives. We will ensure that the Conservative revolution in public services now reaches Social Services.

    Disabled People

    We have quadrupled real spending on long term sick and disabled people since 1979, to £22 billion.

    We have introduced the Disability Discrimination Act. This is the first legislation of its kind anywhere in Europe and it provides positive proof of our commitment to disabled people. We will monitor it to ensure it continues to meet its objectives.

    We are also providing a continuing fund to enable the most severely disabled people to stay in their own homes.

    Security in Retirement

    Pensioners continue to make a positive contribution to society in retirement. They give more of their time in charitable work than any other age group. They lift some of the pressures on their own families. They help keep our nation’s history and traditions alive.

    They have paid their National Insurance contributions and taxes and rightly expect us to continue to protect the value of the basic state pension against price rises. We will do so. We will also ensure that less well off pensioners continue to get extra help on top of the basic pension.

    At the same time as protecting the state pension, our encouragement of private pensions is already transforming the living standards of pensioners. The average net income of pensioners has risen by 60% since 1979. This has been achieved by our encouragement of saving for retirement.

    The tax system must help pensioners who have saved. Our new lower 20p rate on income from savings directly helps 1.7 million pensioners and the special age allowances raise the point at which pensioners start to pay income tax.

    A Better Social Security System

    People in need can rely on our continuing support. To ensure that taxpayers are

    willing to go on paying for that support, we have shaped a social security system we can afford, taking a steadily declining share of our national income. We are doing this by focusing benefits on those most in need, helping people off welfare and into work, and curbing welfare fraud. These policies are underpinned by our measures to help families help themselves.

    Social Security must be there to help families, pensioners and people in need. We will protect the value of Child Benefit and Family Credit which help with the cost of bringing up children. This is our Family Benefits Guarantee.

    We will bring the structure of benefits for lone parents into line with that for two-parent families. We will continue to help lone parents obtain maintenance, and assist with childcare in work: both these measures help lone parents obtain work. We will pilot our “Parent Plus” Scheme that gives special help to lone parents who want to work, and extend it if it proves successful.

    Social Security fraud must be stamped out.

    We will intensify our current initiatives of inspections and checks, including more home visits, to crack down further on benefit cheats. We will introduce benefit cards across the country. We will establish a Benefit Fraud inspectorate to monitor local authorities’ performance. We will also improve the sharing of information between government departments to catch more fraudulent claims.

    To ensure as much of the Social Security budget as possible goes into benefits, we will continue to improve the efficiency of administration, using the best mix of public and private sector operations.

    Housing

    Owning one’s own home is an aim shared by millions of people. Over the last 18 years, the number of homeowners has increased by 4.7 million – including 1.7 million who have bought their home under the right to buy scheme. Over the next 10 years, we expect to see another one and a half million people buying their own homes – some 3,000 every week. To meet that demand, we will continue to allow local authority and housing association tenants to buy their homes, or move to houses which they buy.

    We will also carry through our draft Bill, creating the option for those buying flats to choose a new form of commonhold ownership.

    For those who wish to rent their home, we are encouraging a thriving private rental market, building on the success of housing investment trusts and protecting assured tenancies.

    Easier renting will help us meet our target of reducing the proportion of empty homes below 3%. The number of empty houses has fallen in each of the last 3 years. But nothing is more frustrating for people who need social housing, than the sight of a suitable property owned by the public sector boarded up and empty. We will stop that.

    Public landlords will have to sell houses which are available for occupation yet have been left empty without a good reason for more than 12 months.

    Housing associations and housing companies will continue to receive help in building new homes, and we will encourage more public-private partnerships. Together, these policies will help meet the demand for new public housing and make sure that there are decent homes for those in need.

    Opportunities for Women

    Women are succeeding in Britain. More women have jobs in Britain than in almost any other European country. Women have a better education, more financial independence and more opportunities than at any other time in Britain’s history.

    This success reflects the efforts and determination of many women. Government’s role has been simpler – to level up the playing field, whether in education, where girls are now doing better than boys, or in the workplace, where opportunities for women are the best in Europe.

    But we know our job is not yet done. Some women still face barriers to doing well. Some still do not have the financial security they deserve. And crime, and the fear of crime, often affect women more than men.

    We will ensure women have equal opportunities in education and the workplace. This can best be achieved by keeping our economy buoyant and our labour markets flexible. And our proposals to bring crime rates down further will help women especially.

    But many women – and some men – face a particular problem: how to juggle job and family. For those who need or want to work, we will seek further ways to minimise the barriers to affordable, high quality childcare. For those who wish to be full-time parents, our proposals to enable them to transfer their unused personal allowance to their spouse will be worth up to an extra £17.50 a week.

    We also want to give women more financial independence, particularly when they retire. We propose, as explained elsewhere, to improve flexibility in saving for retirement and to allow courts to split pensions on divorce.

    Looking Outwards

    The spread of share ownership, the transformation of pension provision, and the sale of council houses are revolutionising our nation. Personal prosperity and property ownership are not selfish or inward-looking.

    People who are secure at home can look out for others in their community. Over two thirds of adults engage in some form of voluntary activity. By the end of 1997 all young people aged between 15 and 25 who want to volunteer will be helped to find an opportunity to do so.

    We will make it easier for those receiving incapacity benefit to volunteer by removing the 16 hour weekly limit on their voluntary work.

    We will encourage voluntary work by others living on benefit while continuing to insist that those who are capable of work should actively seek employment. We will also develop accreditation for voluntary work to encourage employers to see it as preparation for a paid job.

    It is wrong to imagine that compassion must be nationalised and that we can only help our fellow man through state action.

    4. Education and Opportunity

    All children dream of what they might do when they grow up. Our task is to help them turn those dreams into reality whatever their background may be. It is an exciting world, full of new opportunities for inquiring minds: it should be open to every child. Their future – and Britain’s prosperity – depends on the quality of their education.

    Our Education Guarantee

    A good education is the birthright of every child. Literacy is the building block of all future learning: English is the global language of commerce and, much more, a thing of beauty. Without basic science and mathematics, the modern world is incomprehensible. Every child therefore must be taught to read, write and add up from an early age.

    Years of mistaken, progressive education in the 1960s and 1970s denied these precious skills to too many children. We have worked ceaselessly since 1979 to put that right. Our decision to test children and publish the results has allowed standards to be measured and exposed. We have reformed the curriculum, toughened inspections, and given more information and power to parents. Our many excellent teachers now know what is expected of them, and already standards in schools are rising. But they are still not good enough. We must do more.

    Building on what we have done, we can now offer a new pledge to parents – a guarantee of education standards.

    First, we will set national targets for school performance that reflect our objective of ensuring that Britain is in the top league of international standards across the whole spectrum of education.

    Second, we will require every school to plan how to improve its performance, and to set targets which relate to similar schools and national standards.

    Third, we will give all parents full information on the performance of their child’s school

    Fourth, to underwrite our pledge, we will ensure action is taken to bring any under-performing school up to the mark.

    We will meet this pledge by using the full set of levers for improved standards that we have put in place.

    We are revising and simplifying the National Curriculum in primary schools to emphasise high standards in the basic skills.

    Parents and teachers must have an overview of not just how much a child has learnt while at school, but how the school performs against others. Poor schooling must not be protected by a veil of secrecy. Parent power is a vital force for higher standards.

    Regular tests and exams are essential if teachers are to discover how much their pupils have learnt, and parents are to know how much progress their children are making against national standards. That is why children are already being tested at 7, 11 and 14.

    We will publish all school test results, including the results of tests of 7 and 14 year olds.

    We propose also to assess every child at five.

    This will give teachers and parents a benchmark against which they can measure future progress. To give a better measure of pupil’s performance, marks out of 100 will be made available to parents as well as the broad-brush levels.

    We will also introduce a new test for 14 year old children that covers the whole National Curriculum – assessing progress before they choose subjects for GCSE.

    Tests and exams need to be rigorous and demanding. We will insist that they establish children’s command of spelling, punctuation, and grammar in English tests. Children will sit arithmetic tests without calculators. We will not allow such extensive use of open books in tests and in GCSE exams. We will establish an English Language GCSE. We will continue to uphold the gold standard of A-levels, and ensure that the great classics of our literature are studied at A-level. At the same time students should have the chance to study more subjects in the sixth form.

    Rigorous tests show how individual children and schools are performing and expose schools that are not giving children the education they deserve. To underwrite our guarantee, we will then take action to improve standards. We cannot tolerate schools that fail their pupils.

    By this summer every secondary school in the country will have been inspected by independent inspectors, and by summer 1998, every primary school will have been inspected as well. We have the power to take over failing schools directly and close them if necessary We will now go further and require every school to set, and publish, regular targets, and plans for improving their academic results. Independent inspectors will monitor the results of weaker schools and their plans for improvement at regular intervals.

    Sometimes, though, schools are failing because the local education authority which runs them is failing. The authorities with the worst GCSE results and the worst results at Key Stage 2 (11 year olds) are run by Labour. Those children need our help.

    We will allow for on independent inspection of education authorities and intervene directly to raise standards where education authorities are letting children down.

    Failing authorities will be required to set out their plans to raise standards, and work with education teams – directed by independent inspectors – to implement those plans.

    The vast majority of teachers do an outstanding job. They have played a key part in implementing the reforms that we have introduced. A few, though, let their pupils down.

    We will establish a more rigorous and effective system of appraising teachers, which reflects how well their pupils perform in tests and exams: this will identify which teachers need more help and, where necessary, which teachers need to be replaced.

    Many feel that the professional standing of teachers would be strengthened by the creation of a single body which could speak with authority on professional standards. We will consult with teachers and other interested parties about the possible role of such a body.

    The school should be a place of stability and stimulation for children, especially if they come from a hostile or turbulent environment. To improve standards in future our new teacher training curriculum will stress traditional teaching methods –including whole class teaching and learning to read by the sounds of letters. We will also encourage more teachers to enter the profession through practical training schemes focused on classroom experience such as the Graduate Teacher Scheme. A child is likely to learn more in a well-ordered school. Teachers must have the powers they need to maintain discipline. We will give teachers greater power to set detentions, to exclude disruptive pupils and to use reasonable physical restraint where necessary.

    Schools also have an important role to play in spiritual and moral education. We will take steps to ensure that every school fulfils its role of providing religious education and collective worship.

    Choice and Diversity

    When we came to power in 1979 the school system was totally dominated by one type of school – the monolithic comprehensive. The system failed our children. It treated every child the same. It told parents where to send their children. It did not give schools the freedom to run their own affairs.

    Since 1979 we have created a rich diversity of schools, to serve the varied talents of all children and give parents choice within that diversity, because we believe that parents know what is best for their children.

    That is why we – and only we – are committed to giving the parent of every four year old child a voucher for nursery education so they can choose the pre-school education they want for their child, whether in a play-group, a reception class, or a nursery school in the private or state sector.

    We will give more talented children, from less well-off backgrounds, the opportunity to go to fee-paying schools by expanding the Assisted Places Scheme to cover all ages of compulsory education, in line with our current spending plans. We propose to develop it further into a wider scholarship scheme covering additional educational opportunities. The freedoms and status of fee-paying schools will be protected.

    Grant-maintained schools have been popular with parents across the country –whatever their politics. We will encourage more schools to become grant-maintained and will allow new grant-maintained schools to be set up where there is sufficient local demand. We will give all grant-maintained schools greater freedoms to expand and to select their pupils.

    Grant-maintained schools are leading the way. Local authority schools are also benefitting from our policy of local management of schools. Our ultimate objective is that all schools should take full responsibility for the management of their own affairs. In the next parliament we will take another step towards giving them that freedom.

    We will extend the benefits of greater self-governance to all LEA schools. We will require local authorities to delegate more of schools’ budgets to the schools themselves. We will give them more freedom over the employment of their staff and over admissions. And, where they want it, we will allow them to take over ownership of their assets, so they can make best use of the resources.

    Local authorities will continue to be responsible for their schools’ standards. They will provide funds, and compete with other organisations to provide services to schools. We would expect the increased responsibility of head-teachers, and their role in achieving efficiency-savings, to be recognised by their pay review body.

    Schools are stronger and more effective where head-teachers and governors can shape their own distinctive character Sometimes that means developing a speciality in some subjects. Sometimes it means selecting children by their aptitudes: where parents want this we should not stand in their way. Special abilities should be recognised and encouraged.

    We will continue to encourage the establishment of more specialist schools in technology, arts, languages and sport. We aim to help one in five schools become specialist schools by 2001.

    We will allow all schools to select some of their pupils.

    We will help schools to became grammar schools in every major town where parents want that choke.

    The high standards, real choice and genuine diversity which we have introduced will produce the best results for all our children.

    Lifetime Learning

    Lifetime learning is a reality in Britain today. Over a half of all students in universities, and seventy per cent of those in further education colleges, are adults who have returned to education later in life. We will continue to create new opportunities for more people to participate.

    There has been a revolution in further and higher education. Three and a half million people are in further education –up from just half a million in 1979. The number of young people going to university has risen from one in eight to one in three over the same period.

    We will ensure consistently high standards and will consult on the development of higher education when we receive the results of the Dearing Review. We have world class research in British universities which we will continue to support.

    Every young person should have the opportunity to continue in education or training.

    We will give students between 14 and 21 a learning credit which will enable them to choose suitable education or training leading to recognised qualifications up to A levels or their equivalents.

    We will also introduce National Traineeships and encourage employers to offer more work-based Modern Apprenticeships to young people. Objective external assessments of a proper syllabus will be made a part of all National Vocational Qualifications.

    We will continue to support the network of Training and Enterprise Councils, which have created a valuable partnership between business and government. We will encourage more employers to become involved in “Investors in People”, with the public sector matching the performance of the private sector.

    Competitive markets demand high skills. If Britain is to win, we need to encourage learning and give people the opportunity to go where their interests and inquiring minds take them.

    World Class Health and Public Services

    Our Record – Health and Public Services

    Government spending has concentrated on priorities, not wasteful bureaucracy and overmanning. Despite tough overall public spending plans, real spending on the NHS has risen nearly 75% since 1979 , on schools by 50% and on the police by more than 100%.

    The Health Service is treating over 1 million more patients each year than before our reforms.

    The number of people waiting over 12 months for hospital treatment has fallen from over 200,000 in 1990 to 22,000 last year. The average wait has fallen from nearly 9 months to 4 months.

    The Government has set up the Citizen’s Charter to provide first class public services for all citizens. Nearly 650 organisations have received a Charter Mark for meeting demanding standards of performance, customer satisfaction and value for money.

    There are now 55,000 more nurses and midwives and 22,500 more doctors and dentists than in 1979. For every senior NHS manager, 77 people are providing direct patient care.

    Nurses average earnings have grown 70% in real terms: from £68 a week in 1979 to £325 in 1995. Doctor’s pay has risen by a third. Under Labour both were cut.

    Infant mortality has fallen from 13.2 to 6.2 per thousand over the last 18 years.

    Deaths through road accidents are now the lowest since records began in 1926. Since 1979 road deaths and serious casualties have fallen by 43% despite an 85% increase in motor traffic.

    The government has invested record amounts on transport – more than £26 billion since 1979 in investment on motorways and trunk roads; £16 billion in investment on railways; and £8 billion in investment on London Transport.

    Privatisation is delivering better services at lower costs. BT’s main prices are down by more than 40% in real terms. Average household bills for gas and electricity have also fallen in real terms since 1990.

    5. Security in Health

    We have been the guardians of the NHS for most of its life, improving its services and securing its funding. The benefits can be seen in our rising standards of health. 1993 was for example the first year in which no child in this country died of measles. Between 1979 and 1995 life expectancy at birth in England has increased from 70.4 years to 74.3 years for men and from 76.4 years to 79.6 years for women. We are getting healthier and we are better looked after when we are sick.

    Growing Resources for a Modern Health Service

    This progress has been possible because we have increased spending since 1979 by nearly 75% more than inflation, to almost £43 billion. And we are not stopping there. The next Conservative Government will honour a firm guarantee to the NHS.

    We will continue, year by year; to increase the real resources committed to the NHS, so NHS spending will continue to share in a growing economy

    Under Labour there have been years when resources for the NHS actually shrank – something that would be inconceivable with the Conservatives.

    Money is only really a means to an end: better patient care. Now we are treating 9.2 million hospital in-patients and day cases as against 6.9 million in 1992 and 5.1 million in 1979.

    Investing in Skilled Staff

    We are committed to expanding the medical staff of the NHS. We shall therefore increase medical school intakes to 5,000 a year by the year 2000 and are ahead of schedule in reaching the target.

    Good nursing is the bedrock of the NHS. In particular we will increase the number of nurses with specialist qualifications in paediatric intensive care,emergency care, and cancer care. The number of nurses qualifying each year will increase by 2,500 within the next 5 years as we continue to expand Project 2000 training.

    Higher Standards of Service

    We are tackling the problem of long waiting times which can cause so much worry; distress, and pain. We have set tough targets under the Patient’s Charter and as a result average waiting times for in-patient hospital treatments have fallen from more than 6 months 5 years ago to 4 months last year.

    Patients no longer put up with being kept in ignorance. They want to know more.

    We will publish more information on how successfully hospitals are treating patients so that they and their GPs can make more informed choices between services in different hospitals and help stimulate better performance

    Better Primary Care

    Our vision of the NHS is one in which hospitals and family doctors gain greater power to run their own affairs. That is why we will continue to encourage the spread of fundholding among GPs. Labour by contrast would destroy the new freedoms that fundholding doctors enjoy by imposing a new layer of bureaucracy on top of them.

    However, we do not want the benefits of better healthcare to be confined to patients of GP fundholders. Our proposals to shift more healthcare towards family doctors are open to all

    We shall implement the new Primary Care Act which will enable all family doctors to provide a broader range of patient services within their surgeries. This will include (“super surgeries” and practice-based cottage hospitals that can offer faster and more local treatment.

    We expect to see the number of nurses working in GP practices continue to grow, as will the number of GPs.

    We will extend nationwide our plans to enable more nurses to prescribe a wider range of drugs for patients, recognising their contribution to primary care.

    Mental Health

    The last decade has also seen major changes in the care of mentally ill people. We will continue to develop a full range of services – including 24-hour nursed hostels and secure units – that can care for them in a way which is most appropriate to them and the interests of the wider community.

    We will not close any long-stay mental hospitals unless it can be shown that adequate care services exist in the community.

    We will strengthen co-operation between health and social services in the delivery of mental health services. Our recent Green Paper showed how this can be done. And we will monitor the progress of Health Authorities in developing proper mental health care plans.

    Health of the Nation

    A modern health service is not just about treating illness, it is also about keeping people healthy. This is why we launched the Health of the Nation strategy in 1992 – the first time England has had a strategy for health. Its aim is to reduce illness and premature death by identifying common causes of ill health, like excessive smoking and obesity. Different groups in and outside the health service then work together to tackle the problems.

    We are already seeing progress. Between 1990 and 1994, deaths from coronary heart disease among the over-65s, the suicide rate, and the number of teenage pregnancies fell substantially And last year we announced that environmental targets would be added to Health of the Nation.

    Improved general health means fewer people requiring attention in hospitals and GP surgeries – and more resources available for patients who need them. Our Health of the Nation strategy is a vital part of our vision for creating a health service fit for the 21st Century.

    A Modern Health Service

    Healthcare is changing fast. Modern technology is constantly increasing the range of treatments which are available. Conservatives believe that the benefits of these advances should be made available to patients on the basis of their clinical need, without regard to their ability to pay.

    Furthermore we also believe that the NHS must have access to sufficient resources to allow it to invest in the facilities required to deliver up-to-date healthcare. Since 1979 capital investment in the NHS has proceeded at an unprecedented rate. In the future we believe these requirements will be best met in a partnership with the private sector which allows the private sector to improve the facilities in which NHS healthcare is delivered.

    We will promote the Private Finance Initiative which will unleash a new flow of investment funds into the modernisation of the NHS.

    The NHS is a British success story. It commands universal support in Britain. It is widely admired all over the world. Conservatives are proud of the part we are playing in improving the NHS still further.

    6. Better Public Services

    The public sector is being transformed the world over. Britain is in the vanguard. Everyone else wants to learn from our vision of a smaller state doing fewer things and doing them better.

    Old style public services were centrally planned with little information or choice for the public who used the service. Our reforms have made these services more responsive to the public by breaking up cumbersome bureaucratic structures and shifting power to small responsive local institutions and the people who work in them. The schools, hospitals and police have all been transformed in this way. We support the people who do, not the people who plan.

    In order to get better standards we are liberating services from centralised control over capital. We will push forward our Private Finance Initiative to break down these old barriers.

    We have made public services genuinely accountable, with useful information and real choices for the people who use them. We set tough standards and they will get tougher. The Citizen’s Charter has raised standards of customer service. When these high standards are reached we recognise and reward excellence through our Charter Mark initiative. There are now 647 Chartermarks and we will aim for more than 2000 Chartermarks by the year 2000.

    We will require all government agencies to apply for Chartermarks.

    The days of the bureaucratic paperchase are behind us. The future is “government direct”. We will harness the latest information technology to place the public sector directly at the service of the citizen. People will be able to use simple computer terminals to enter information directly. This will transform time-consuming transactions like completing a tax return or registering a new business.

    Privatisation and Competition

    In 20 years, privatisation has gone from the dream of a few Conservative visionaries to the big idea which is transforming decaying public sector industries in almost every country in the world. Britain has led the way with this new industrial revolution: we can be proud of what we have achieved.

    In 1979 the Government inherited a range of businesses which had come into the public sector for different reasons. Many were known for their poor standards of service, and most were making large losses.

    Over the past eighteen years that situation has changed substantially. Privatisation has enhanced productivity, improved customer services, raised safety and environmental standards and substantially reduced prices.

    Telephone, gas and electricity bills to the customer have fallen as never before. Telephone waiting lists are unknown, and water, gas and electricity disconnections have fallen dramatically. Nearly £40 billion in private sector funding has been committed to a major investment programme to meet higher quality water standards. We can now look forward to water prices falling over the years ahead.

    Service standards have improved substantially. Before privatisation published service standards did not exist. Now industry regulators monitor legal requirements to provide quality services in a competitive environment. Refunds may be made when performance standards are not met.

    Privatisation has benefitted – and will continue to benefit – consumers, shareholders, employees, and taxpayers. In 1979 the then-nationalised industries required a £50 million per week subsidy from the taxpayer In 1996 those now privatised companies paid taxes of £60 million per week.

    We will ensure private ownership, competition and regulation continue to deliver lower prices and better services for consumers.

    We will extend competition for domestic gas users, and introduce competition in the water industry, starting with large users.

    The Post Office occupies an important part in national life. It comprises Counter Services, the Royal Mail and Parcelforce. The network of sub-post offices is vital and most are already run as private businesses. The Royal Mail provides a universal service at a standard price in every part of the United Kingdom. No one can imagine a stamp that does not bear the Queen’s head. These characteristics must continue, but reforms are needed to allow the services to develop. The Royal Mail must face up to the challenges and opportunities that are arising from increasing competition and the international liberalisation of services.

    We will guarantee to preserve the national identity, universal service and distinctive characteristics of the Royal Mail, while considering options – including different forms of privatisation – to introduce private capital and management skills into its operations.

    We will transfer Parcelforce to the private sector whilst ensuring that every Post Office in the land continues to provide a full parcel service at an economical price

    Privatisation works. We will therefore continue to pass government activities into private ownership where this can bring benefits to consumers and taxpayers.

    Local Government

    We are developing a new vision for local government.

    We believe local government should take a lead in the planning and development of their communities. To achieve that, we have encouraged them to work in partnership with central government, with private enterprise, and other organisations in their community. The impact of local government is multiplied when they work in this way.

    To encourage this partnership, we have developed the new approach of Challenge Funding. We set up a fund to meet a particular objective and then invite competing bids for the money. Those who form effective partnerships are far more likely to win those bids. The Single Regeneration Budget Fund, for example, has stimulated many working partnerships that are bringing new life to their communities.

    We will push Challenge Funding further to reward effective local government.

    This innovation has the potential to transform the financing of the public sector.

    In addition, we are encouraging higher standards and more cost-effective provision of local services. Local authorities can enable things to happen rather than necessarily running them themselves. They must look after the interests of users of their services – and that is often best done by being a purchaser, not an employer.

    Standards of service are rising in many local authorities. There are, however, still great disparities between the best and worst performers, as the Audit Commission shows in their thought-provoking reports.

    We will keep up the pressure for higher standards and improved value for money by insisting on compulsory competitive tendering.

    The development of Challenge Funding and the shift in the role of local authorities from direct employers to purchasers of services will transform local authorities over the coming years. In the meantime we will, for so long as is necessary, retain the power to cap local authorities to protect taxpayers.

    Strikes in Essential Services

    Industrial relations in this country have been transformed. In so far as there is a still a problem it is concentrated in a few essential services where the public has no easy alternative and strikers are able to impose massive costs and inconvenience out of all proportion to the issues at stake. We will protect ordinary members of the public from this abuse of power.

    We will legislate to remove legal immunity from industrial action which has disproportionate or excessive effect Members of the public and employers will be able to seek injunctions to prevent industrial action in these circumstances. Any strike action will also have to be approved by a majority of all members eligible to vote and ballots will have to be repeated at regular intervals if negotiations are extended.

    Transport

    Our railways are already improving now they have been liberated into the private sector Passenger numbers are up: more people are using the railways every day. Investment is up: Railtrack plans to spend £4 million each day on improving stations and maintaining and renewing the network. The new train operators are committed to investing £1.5 billion in new and refurbished rolling stock. And key fares are set to fall in real terms for the first time in a generation, with guaranteed price controls keeping fare increases below the level of inflation until at least 2003. We intend to build on this growing success story to create a thriving railway network for the new century.

    We will complete the successful transfer of British Rail into the commercial sector

    We now want to draw in private investment to modernise London Underground and improve services to passengers.

    We will bring forward plans to privatise London Underground. Proceeds from privatisation will be recycled in order to modernise the network within 5 years – creating an underground system to serve the capital in the 21st Century. We will regulate fares so they rise by no more than inflation for at least 4 years after privatisation. We will also protect services – including the Travel Card and concessionary fares.

    After completing the modernisation of the network, the majority of the remaining surplus from privatisation will be channelled into additional support for transport investment in London and elsewhere in the country.

    We will continue to encourage public transport. In particular, we will use the existing funding for local authorities to promote developments which make it easier to interchange between bus and rail.

    We recognise the needs of road users, and will continue to work with the private sector to sustain our road building and maintenance programme. Already under the Private Finance Initiative the private sector is contributing some £1 billion to investment in roads and achieving significant savings in construction costs. We will also tackle road congestion by introducing new regional traffic control centres, by extending the use of variable speed limits, and by ensuring that local authorities have the necessary powers to act. We will promote a cleaner environment by supporting a Europe-wide reduction in vehicle emissions, and encouraging the manufacture of more fuel-efficient vehicles.

    We will continue to build on our record of improving safety on roll-on roll-off ferries and cargo ships through higher standards of survivability and the measures in the Merchant Shipping Act.

    We will continue to make it easier for people to travel by air Already over the last 5 years opening up the market in Europe has led to more services and lower fares. We will build on that success in negotiations with the United States and other countries. We will also continue to encourage the development of regional airports offering new direct services to the rest of the world in the same way that we have already opened up new regional links with Europe and the United States. We will privatise the National Air Traffic Service because it will be run better in the private sector.

    Competition and enterprise are the best way to improve our transport system.

    A Safe and Civil Society

    Our Record – A Safe and Civil Society

    Spending on the police has doubled since 1979 after allowing for inflation. There are now about 16,000 more police officers than when we took office. 2,360 more constables have been recruited since the last election and the Government is giving Chief Officers the resources to recruit 5,000 police constables over the 3 years to 1999.

    Recorded crime has dropped in each of the last 4 years. It is now over 10% down on 1992 levels – more than half a million fewer offences – the biggest drop since records were first kept.

    There are now 153,000 Neighbourhood Watch schemes in England and Wales – 38,000 more than in 1992 – covering 5.5 million homes. We have helped fund over 4,000 closed circuit TV schemes over the last 2 years for additional security.

    Our national DNA database – the first in the world – now has over 112,000 samples on it. 3,300 matches have so far been made between suspects and crime stains.

    The Government has increased the maximum penalty for taking a gun to a crime and for attempted rape to life imprisonment. Since 1985 the average sentence for violence against the person has risen by a third and for sexual offences by nearly 40%.

    The number of cars stolen has fallen by nearly 20% in the last four years – that is about 100,000 fewer cars stolen.

    We have built 22 new prisons since 1980. Slopping out has ended. No prisoners now sleep three to a cell designed for one. Prison escapes have fallen by 80% since the last election.

    Mandatory drug testing has been introduced throughout the Prison Service. Home leave has been cut back – down by half in two years.

    We have made witness intimidation a crime. 500 people were charged with that offence in 1995 alone.

    We have stepped up the fight against drugs and organised crime, giving the Security Service powers to support the police and Customs and Excise in tracking down the serious criminals.

    7. Law, Order and Security

    People have a right to sleep safely in their homes and walk safely on the streets. Governments have a duty to maintain that security.

    Our reforms are aimed at ensuring that crime does not pay. And they are working – the pessimists and the scoffers are wrong. Recorded crime has fallen every year for the last 4 years. It is now 10% lower than it was in 1992. That is over half a million fewer crimes – the biggest drop since records were first kept in the middle of the 19th century.

    But crime is still too high. We must do more. Our aim is to keep crime falling over the lifetime of the next parliament. This is what we will do.

    Safer Communities

    Anti-social behaviour and petty crime disrupt communities and spread human misery. The police are rightly now vigorously tackling problems such as graffiti vandalism and drunkenness. Where such behaviour goes unchecked more serious crimes will follow.

    We will support chief constables who develop local schemes to crack down on petty crime and improve public order.

    Closed circuit television has proved enormously successful in increasing public safety.

    We will fulfil the Prime Minister’s pledge to support the installation of 10,000 CCTV cameras in town centres and public places in the 3 years to 1999. We will provide £75 million over the lifetime of the next parliament to continue extending CCTV to town centres, villages and housing estates up and down the country that want to bid for support.

    We will also continue to take other steps to improve the safety of our streets and communities. In this parliament we have given the police power to seize alcohol from under-18s caught drinking in public. The police have been given the power to stop and search in a specified area for up to 48 hours if they reasonably believe people to be carrying knives.

    Identity Cards can also make a contribution to safer communities.

    We will introduce a voluntary identity card scheme based on the new photographic driving licence it will, for example, enable retailers to identify youngsters trying to buy alcohol and cigarettes or rent classified videos when they are under age.

    Tackling Juvenile Crime

    A fifth of all crime is committed by under-18s. We are encouraging schools to reduce truancy through the publication of league tables and by supporting local projects to tackle the problem. We are developing a network of local teams to identify children who are at risk of turning to crime and to take early steps to address the factors which put them at risk.

    We will encourage these local child crime teams to refer children from primary school age upwards who are at risk of, or who are actually, offending to programmes to tackle their behaviour and fully involve their parents.

    The courts would be able to impose an order – a Parental Control Order – on the parents of children whom they believed could keep control of their children but were refusing to do so.

    Courts will be given the power to attach conditions to Parental Control Orders. Conditions might include a requirement to keep their children in at night, taking their children to and from school, attending a drug rehabilitation clinic or going to sessions to improve their skills as parents. Parents who breached these conditions – in defiance of the court – would face a range of possible sanctions.

    Appearing before a youth court should be a daunting experience for the juvenile concerned. All too often it is not. At the moment about a third of all juveniles appearing before the youth courts are discharged without any punishment at all This sends all the wrong signals to youngsters – particularly first time offenders – who then feel they can get away with crime.

    We will give the courts the power to impose speedy sanctions on youngsters, involving wherever possible an element of reparation to the victim. The probation service – rather than social services – will be responsible for enforcing community punishments for under-16s.

    Persistent juvenile offenders need to be properly punished. We are piloting a tough new regime, with a heavy emphasis on discipline, at a young offenders institution and at the military prison in Colchester In 1994 we doubled the maximum sentence for 15-17 year olds to 2 years detention in a young offenders institution. We have given the courts the freedom to allow the publication of the names of convicted juveniles. We will give the courts the power to detain persistent 12-14 year old offenders in secure training centres once the places become available.

    We have given the courts the power to impose electronically monitored curfews on 10 to 15 year old offenders. We will introduce pilots to test their effectiveness. If successful we will consider extending them nationwide.

    Catching, Convicting and Punishing

    We back the police every inch of the way. There are now about 16,000 more police officers – and over 18,000 more civilians helping them – than when we took office. We are providing chief constables with the resources to recruit 5,000 extra police constables in the three years to 1999.

    We support police initiatives to target the hard core of persistent criminals. Intelligence is crucial for this.

    We will establish a national crime squad to provide on improved nationally coordinated approach to organised crime.

    Once caught, criminals must be convicted and then properly punished. The public needs to be protected. We have reformed the right to silence, despite opposition from Labour. The number of suspects refusing to answer police questions has nearly halved as a result.

    We have piloted curfew orders for adult offenders. They have been shown to keep criminals indoors – curbing their freedom as a punishment – and keeping them out of trouble in the meantime.

    We will extend electronically monitored curfew orders nationwide for those aged 16 and over.

    Persistent offenders account for a high proportion of all crime. Prison works – not only as a deterrent, but in keeping these criminals off the street. Those sent to prison are less likely to re-offend on release than those given a community punishment. We will provide another 8,500 prison places by the year 2000.

    We will introduce minimum sentences for violent and persistent criminals to help protect the public more effectively, reversing Labour’s wrecking amendments to our tough Crime Bill.

    Anyone convicted of a second serious sexual or violent crime, like rape or armed robbery, will get an automatic life sentence.

    Persistent house burglars and dealers in hard drugs will receive mandatory minimum prison sentences of 3 and 7 years respectively.

    We will restore honesty in sentencing by abolishing automatic early release.

    Support for Victims

    Concern for the victim must be at the heart of our entire approach to the criminal justice system. We will continue to give strong backing to Victim Support.

    We will give courts in all cases the discretion to allow witnesses to give evidence anonymously if they believe them to be at risk from reprisal.

    We will also take action to allow a judge to stop a defendant from personally questioning the victim in rape cases and other cases where the victim is particularly vulnerable.

    Conservatives are on the side of the victims not the criminal.

    Strengthening the Fight Against City Crime

    Crime that takes place through manipulation of financial accounts and markets is as serious as crime on the street.

    The City’s unchallenged position as Europe’s most dynamic and successful financial centre owes a great deal to its reputation for honesty and fair dealing. We will help ensure that this reputation is maintained.

    We will bring forward in the next parliament a package of measures designed to modernise the current systems for dealing with City fraud.

    This will include legislation to allow the Inland Revenue to pass confidential information to the police, the Serious Fraud Office and the financial regulators to assist in the investigation of cases involving serious financial fraud. We will also remove the remaining legal obstacles to the controlled exchange of confidential information between the police and the regulators in this kind of case.

    Faster Justice

    Justice delayed is justice denied. It is wrong that people who are innocent should face an excessive wait before the start of their trial. The guilty must be held to account for their actions promptly. And victims should be given the chance to draw a line under their experience as quickly as possible. We are determined to speed up justice without diminishing the genuine rights of every citizen to a fair trial.

    Last October the government set up a review of delays in the criminal justice system. It made a series of detailed recommendations. We see merit in those recommendations and will seek the views of interested parties. We believe that taken together they could dramatically speed up the prosecution process, bringing the guilty to justice and acquitting the innocent more quickly.

    All defendants would appear in court the next working day after they were charged. At least half of them would be convicted the next day compared with just 3 per cent at the moment. And the time taken to bring juveniles to court would be cut from 10 weeks to a matter of days.

    Civil Justice

    The civil justice system of this country is a vital part of its competitive economy and has a high international reputation. The commercial courts attract substantial litigation from all over the world, generating significant foreign earnings. We will work to maintain the high standing of these courts.

    We have greatly improved the service the civil courts provide for the aggrieved citizen. The simple procedure for small claims has been extended to claims up to £3,000. For large claims the county court now provides an efficient local service with specialised courts in many locations around the country leaving the High Court to deal with the more complex and difficult issues.

    We will push ahead with the major reforms now under way which will greatly speed up the process and improve the delivery of justice without imposing additional burdens on the taxpayer.

    The Legal Profession

    We will ensure that the framework in which the legal profession operates is responsive to the changing needs of our people and is one in which unjustified restrictions have no place. We have, for example, given most solicitors rights of audience in the higher courts under appropriate conditions.

    Legal Aid

    People are rightly concerned about the rising costs of legal aid. We have taken many steps to control the burden and to deny access to legal aid to the “apparently wealthy” – those who qualified technically, but whose lifestyles suggested they should not.

    But more is required:

    We will change the structure of legal aid to ensure that it, like other vital public services, functions within defined cash limits.

    This will enable us to identify priorities and serve them much more efficiently than the present system.

    Drugs

    Drugs are a menace to the very fabric of our society They ruin the lives of addicts and their families. They can destroy whole neighbourhoods. The promising youth of today can too easily become the sad dropouts of tomorrow turning to crime and violence.

    The Conservative Government has a comprehensive strategy, launched in 1995, committed to fighting drugs in communities and in schools. It is tough on criminals and vigilant at our ports. It is respected throughout the world. We spend over £500m every year in tackling all aspects of drug problems.

    We will continue the fight against drugs through a coordinated approach: being tough on pushers; reducing demand by educating young people; tackling drug abuse at local level through Drug Action Teams; saying “No” to legalising drugs; and working with international agencies and foreign governments to resist the menace spreading.

    This pernicious evil has to be fought by all of us.

    A Confident, United and Sovereign Nation

    Our Record – The Nation

    Many of our old cities have been rejuvenated through a partnership of public and private investment.

    The area of green belt has doubled since 1979.

    Water and air quality in the UK have improved significantly.

    We are one of only a few nations on course to meet our commitment to return emissions of all greenhouse gases to 1990 levels by 2000.

    The Lottery has been established as the most successful in the world – raising £3 billion for good causes in a little over 2 years.

    More support is now given to arts and heritage than at any time in our nation’s history. We now provide nearly 20% more for the arts than the last Labour Government, over and above inflation.

    British talent was this year nominated for 30 Oscars. British music is again receiving international acclaim. The industry is worth £2.5 billion, more than shipbuilding or electric components: one in 5 CDs and records sold anywhere has a British connection.

    There is record investment in our sports facilities. Already the Lottery has provided £480 million for sport, including the planned British Academy of Sport, English National Stadium and, for the first time, direct funding for British athletes.

    We have continued to stand up for British interests in Europe, protecting our opt-out from the Social Chapter, maintaining our border controls, and preserving our budget rebate – worth £18 billion since it was introduced.

    We have the most professional armed forces in the world. We have modernised our nuclear deterrent by replacing Polaris with Trident.

    8. The Best Place in the World to Live

    Britain is admired the world oven Every year, millions of tourists travel here to enjoy our heritage and culture, our cities and countryside, our way of life. Our nation’s history is an anchor in a sea of change. We need to protect, cherish and build upon what is great about our country so our children grow up in a better Britain. We also must make sure that everyone, wherever they live, has the support of a strong, tolerant and civilised community.

    Our aim is for this generation and future generations to take pride in Britain as the best place in the world to live.

    Britain’s Cities

    London is one of the world’s greatest cities. It is livelier than even Our vision of its future is set out in a separate manifesto.

    Many of our cities have undergone a complete transformation over the last decade. We have promoted partnerships –through schemes such as Urban Development Corporations, the Single Regeneration Budget and City Pride – to attract private enterprise and investment back to inner-cities. These initiatives are bringing hope, opportunity and prosperity to what were once wastelands of urban decline.

    As the country thrives and becomes more prosperous, one of our central tasks is to apply the same approach in transforming the legacy of soulless, decaying public housing estates. They are places that suffer from the very worst kind of poverty – poverty of aspiration.

    We have already made a start – spending more than £2bn over the last 10 years on improving 500 of the worst estates. And we have shown how it is possible to tackle the economic and social problems alongside new investment in buildings – where possible, bringing in a greater mix of public tenants and private housing to recreate a more balanced community. Now we will extend this approach, focusing the Single Regeneration Budget to launch a combined attack on crime, unemployment and under-achievement, and developing the government’s partnership with the private sector to help fund the massive investment that will be required.

    Over the next decade, we aim to raise some £25bn of new private investment in housing estates by encouraging tenants in more than half of the remaining public sector housing stock to opt for transferring their homes to new landlords. These transfers will only occur where tenants choose this mute to improve theft estates.

    We will use this approach to regenerate the worst housing estates and transform the lives of those who live in them –targeting support for programmes to improve education standards, employment and crime prevention alongside new private sector investment.

    As well as this attack on poor housing, we will continue to help the homeless. We will carry through our planned extension of the Rough Sleeper Initiative from London to other big cities.

    We will provide sufficient hostel places to ensure that no-one need sleep out on the streets.

    Rural Communities

    Britain is blessed with some of the most beautiful countryside in Europe.

    We need to protect the best of the countryside whilst ensuring good jobs and living conditions for people who live there.

    We have to strike a balance: our rural communities must not become rural museums, but remain vibrant places to live and work. We will make sure government departments work together to ensure that balance is kept.

    We will continue to protect the green belt from development, making sure that derelict and under-used urban land is developed in preference to greenfield sites.

    We will use the planning system to ensure that more new homes are built on reclaimed sites in our towns and cities. We will aim for more than 60 per cent of all new homes to be built on derelict sites.

    This will reduce the pressure to build in our countryside and expand choice where it is needed most.

    We will support our rural communities, by giving special rate support to small village shops and post offices. The planning system can do more to help too.

    We will introduce a new Rural Business Use Class to encourage job creation in the countryside.

    We will increase support for schemes which promote care for the countryside – like Countryside Stewardship.

    We believe participation in traditional country pursuits, including fishing, is a matter for individuals. A Conservative Government will not introduce legislation that interferes with the rights of people to take part in these activities.

    We will also encourage managed public access to private land – in agreement with farmers and landowners – but strongly resist a general right to roam, which would damage the countryside and violate the right to private property.

    We aim to double Britain’s forest cover over the next fifty years. We will continue to encourage tree planting by targeting grants, encouraging investment in wood processing, and using new freedoms with the reform of the Common Agricultural Policy.

    Agriculture and Fisheries

    We will continue to provide robust support to the British beef industry through the BSE crisis until its long term strength is restored. We will vigorously pursue the eradication of BSE in the United Kingdom, as we have been doing successfully for the last eight years. We will spare no efforts in our fight against the unwarranted ban on British beef exports.

    Public health and food safety have been the government’s top priorities throughout the BSE crisis.

    We will tighten up control over food safety by appointing a powerful and independent Chief Food Safety Adviser and Food Safety Council to advise government

    We will continue to push for fundamental reform of the Common Agricultural Policy, moving away from production support to measures that will give our farmers the opportunity to compete while safeguarding the rural environment. We will ensure that no change to the Common Agricultural Policy unfairly disadvantages British farmers.

    Fishing is a vital industry in many parts of coastal Britain. We will continue our fight to secure a prosperous long term future for the industry and sustainable management of our fish stocks.

    We will insist at the IGC and elsewhere on measures to stop quota hopping and prevent the vessels of other countries from using UK fishing quotas.

    The integrity of our 6 and 12 mile fishing limits is not negotiable. We reject any idea of a single European fishing fleet.

    We believe that fishermen should have more say in decisions affecting their industry We will press the European Commission to establish regional committees to give fishermen a direct influence in fishing policy. We will use these committees to develop new ways of managing quotas and regulating fisheries which are more sensitive to the industry’s needs.

    Animal Welfare

    A civilised society respects animals. Britain will continue to take the lead in improving standards of animal welfare in Europe. In 1995 we secured a major breakthrough in the treatment of animals in transport; in 1996 we won victory in our campaign to ban veal crates throughout the EU. We are determined that standards should continue to rise and that all EU countries should have to meet them.

    We will seek to ensure that all European countries have to raise animal welfare standards.

    We are not going to take any risks with rabies. There may however be ways other than quarantine which maintain or increase protection for public health, while improving the welfare of pets and reducing the costs to travellers.

    We will publish a Green Paper on rabies protection, setting out all the options including the existing controls, early in the new parliament.

    Britain’s Environment Britain has an enviable track record in protecting our environment. Our rivers, beaches and water are cleaner and we are using our energy more efficiently. We are leading the world in reducing the level of the “greenhouse gases” that cause global warming and pressing for policies that will enable the world to sustain development without long-term damage to the environment. Our Green Manifesto is published separately.

    We have clear objectives to build on this record. We will set tough, but affordable targets, with published environmental strategies to improve air quality and banish city smog – with tighter standards on vehicle emissions and pollution crackdowns around the country We aim for sustained improvements in water quality, at a pace which industry and consumers can afford. We will develop labelling of products that gives consumers information to show the environmental impact of how they were made.

    In addition, we will continue to use the tax system and other incentives to encourage the use of vehicles and fuel which do not pollute the environment. And we will continue to explore policies based on the principle of polluter pays: those who contaminate land, pollute the environment or produce harmful waste should be made responsible for their actions and pay for the consequences.

    Britain – A Tolerant Country

    Tolerance, civility and respect have always been hallmarks of our nation. It is thanks to them that we have an excellent record in race relations.

    Everybody, regardless of colour or creed, has the right to go about his or her life free from the threat of intimidation. We are taking tough action to tackle harassment. Under proposals in the Protection from Harassment Act 1997, it will be a crime to behave in a way which causes someone else to be harassed. The maximum penalty will be 6 months in prison.

    Firm, but fair, immigration controls underpin good race relations. We will ensure that, while genuine asylum seekers are treated sympathetically, people do not abuse these provisions to avoid normal immigration controls.

    A World Leader In Sports, Arts and Culture

    Britain is enjoying a cultural renaissance. British music, films, television, fashion, art and food are winning plaudits the world oven They add excitement, fun and enjoyment to our lives. Our success brings pride to everyone.

    The National Lottery, which John Major set up, will pump billions of pounds into Britain’s good causes. Its proceeds will weave a new, rich thread of opportunity and charity into the tapestry of British life. In addition to benefitting major national institutions, about half of the awards are for amounts under £25,000 – benefitting local communities up and down the country. We will encourage new ways of distributing awards to support the performing arts – through support for amateur productions and community events, providing more musical instruments, and helping productions tour round the country.

    The National Lottery will also help us train and promote British sporting talent. The English National Stadium and British Academy of Sport, funded by the Lottery, will be new focal points for sporting events and excellence. We will encourage more young people to play sport by ensuring every school plays a minimum level of sport, including competitive sports, and developing a network of Sporting Ambassadors – sporting celebrities who will visit schools to inspire young people. We will also encourage the Sports Council to use Lottery money to employ over 1000 additional community sports coaches to assist in schools.

    We will encourage the use of Lottery money to train young athletes and artists, with revenue funding for bursaries, concessionary tickets to professional performances and support for young people’s organisations and productions.

    The development of young talent is important in all fields.

    The Lottery will also fund our Millennium celebrations. They will be inspirational as well as enjoyable. We want these be a showcase of British excellence. Britain will be able to look back on past achievements with pride, and look forward with confidence.

    9. Europe and the World

    Britain is a world leader as well as a European nation. Our economic strength, our history and our language make us a global trading nation with links right around the world. Only the United Kingdom is a member of the European Union, the United Nations Security Council, the Commonwealth, NATO and the Group of Seven leading industrial nations. In the Gulf, Bosnia, Cyprus and Northern Iraq, John Major has shown how our nation can contribute to world peace.

    We will continue to work with international partners to secure peace and stability in areas of tension such as former Yugoslavia; in Kashmir; in Cyprus; and in the Middle East. We will promote reform of the United Nations to make it a more effective organisation for securing international stability. Britain will continue to deploy our outstanding Armed Forces as peacekeepers under the United Nations. And we will support the aspirations of the Poles, Czechs, Hungarians and others to join the European Union and NATO.

    After the transfer of Hong Kong, we will work under the terms of the Joint Declaration to help sustain the prosperity and way of life of the people of Hong Kong and build on the substantial British interests that will remain.

    We will continue to support the Commonwealth, our unique global network, to encourage the spread of democracy; as set out in the Harare Declaration. We will focus our aid programme to encourage sustainable development in countries that are growing towards self sufficiency under democratic government. We have taken the lead in alleviating the burden of debt for the world’s poorest countries. We also have significant flows of private investment to developing economies. We are more than achieving the long term UN target of 1% of GDP for the transfer of wealth to less developed countries. We will continue to maintain a significant bilateral and multilateral aid programme reflecting the aspiration of meeting the UN’s target of 0.7% of GDP for aid as a long-term objective.

    We will also continue to provide leadership in Europe and internationally on environmental issues, building on the Rio Conference to encourage sustainable development – meeting our commitment to reduce Carbon Dioxide (CO2) emissions by 10% on 1990 levels by 2010 to prevent climate change. The Prime Minister has committed himself to attending the next UN Environmental Conference in June.

    Britain and the European Union

    We believe that in an uncertain, competitive world, the nation state is a rock of security. A nation’s common heritage, culture, values and outlook are a precious source of stability. Nationhood gives people a sense of belonging.

    The government has a positive vision for the European Union as a partnership of nations. We want to be in Europe but not run by Europe. We have much to gain from our membership of the European Union –in trade, in co-operation between governments, and in preserving European peace. We benefit from the huge trade opportunities that have opened up since Britain led the way in developing Europe’s single market. We want to see the rest of Europe follow the same deregulated, enterprise policies that have transformed our economic prospects in Britain.

    However, in June, the nations of the European Union will gather in Amsterdam to negotiate possible amendments to the Treaty of Rome. It is a moment of truth, setting the direction in which the European Union will go. It will also be crucial in ensuring that we have a relationship with the rest of Europe with which we can be comfortable.

    A Conservative Government will seek a partnership of nation states. Some others would like to build a federal Europe. A British Conservative Government will not allow Britain to be part of a federal European state.

    The diversity of Europe’s nations is its strength. As more nations join the European Union, it needs to become flexible not more rigid We must also ensure that any developments which only include some members do not work to the disadvantage of others.

    Our priorities for Europe’s development will be enlargement of the Community, completion of the single market, reform of the European Court of Justice, and further strengthening of the role of national parliaments. We will seek more co-operation between national governments on areas of common interest – defence, foreign policy and the fight against international crime and drugs. We also believe the European Union itself should do less, but do it better. So we have proposed incorporating the principle of subsidiarity – that the European Union should only do that which cannot be done by member states acting alone – into the Treaty. This is how we are approaching the Inter-Governmental Conference.

    We will argue for a flexible Europe which fully accommodates the interests and aspirations of all its member states and where any new proposals have to be open to all and agreed by all. We will not accept other changes to the Treaty that would further centralise decision-making, reduce national sovereignty, or remove our right to permanent opt-outs.

    We will retain Britain’s veto and oppose further extension of qualified majority voting in order to ensure we can prevent policies that would be harmful to the national interest. We will defend the rights of national parliaments and oppose more powers being given to the European Parliament at the expense of national parliaments.

    We will take whatever steps are necessary to keep our frontier controls. We will resist attempts to change the inter-governmental nature of co-operation in justice and home affairs. We will not accept the development of new legal rights that extend the concept of European citizenship.

    Britain’s rebate has so far saved British taxpayers £18bn and we will protect it.

    One of the greatest challenges Europe faces is to cut unemployment and make its businesses competitive. Here Britain is leading the way. We will continue to argue for deregulation and lower costs on Europe’s businesses, the policies that have helped give Britain one of the strongest economies in Europe. We will not put that achievement at risk by signing up to the Social Chapter, which would open the door to imposing the high costs of the European social model on British business. Once Britain accepted the Social Chapter we could not stop many of these damaging policies being imposed on us by qualified majority voting.

    We will insist that any new Treaty recognises that our opt-out from the Social Chapter enables Britain to be exempt from the Working Time Directive, and prevents any abuse of our opt-out. And we will not accept a new employment chapter in any revised Treaty, which would expose British businesses to new costs.

    We made it clear in the previous chapter that we will continue to work for further reform of the Common Agricultural Policy and the lifting of the worldwide ban on British beef and will insist on measures to stop quota hopping by foreign fishing vessels.

    Protecting Britain’s interests demands tough, experienced negotiation. John Major has proved he has these qualities – including the resolve to say no when necessary even if that means being isolated. Labour have said they would never let Britain be isolated in Europe: they would damage Britain’s success by undermining our veto, signing up to the Social Chapter and following in others’ footsteps – even where they lead in the wrong direction. They support policies that would fragment the United Kingdom’s influence within a Europe of Regions. The Liberal Democrats welcome the end of the nation state. Only the Conservatives can be trusted to stand up for Britain in Europe: our national interest must be protected.

    A Single Currency: Our Referendum Guarantee

    The creation of a European single currency would be of enormous significance for all European states whether they are members or not. We must take account of all the consequences for Britain of such a major development of policy.

    John Major secured for us at Maastricht an opt-out from the commitment to enter a single currency. It is only because of this opt-out that we have the right to negotiate and then decide whether it is in Britain’s interest to join.

    It is in our national interest to take part in the negotiations. Not to do so would be an abdication of responsibility. A single currency would affect us whether we were in or out. We need to participate in discussions in order to ensure the rules are not fixed against our interests. The national interest is not served by exercising our option – one way or the other – before we have to.

    For a single currency to come into effect, European economies will have to meet crucial criteria. On the information currently available, we believe that it is very unlikely that there will be sufficient convergence of economic conditions across Europe for a single currency to proceed safely on the target date of January 1st 1999. We will not include legislation on the single currency in the first Queen’s Speech. If it cannot proceed safely, we believe it would be better for Europe to delay any introduction of a single currency rather than rush ahead to meet an artificial timetable. We will argue this case in the negotiations that lie ahead.

    We believe it is in our national interest to keep our options open to take a decision on a single currency when all the facts are before us. If a single currency is created, without sustainable convergence, a British Conservative government will not be part of it.

    If, during the course of the next parliament, a Conservative government were to conclude that it was in our national interest to join a single currency, we have given a guarantee that no such decision would be implemented unless the British people gave their express approval in a referendum.

    Defence in an Unstable World

    The old rivalries of the Cold War have been replaced by new tensions. Britain must be able to react rapidly to protect our security and interests around the globe.

    Our armed forces are the most professional in the world. We have cut unnecessary bureaucracy and increased efficiency, and directed money to support our Services in the frontline. We have made the changes necessary to adapt our Services to the threats which we might now face. We have set out defence plans based on stable levels of funding. There is no need for a defence review, which would raise fear and uncertainty about the future.

    We will continue to ensure the Services have the modern weapons they need to guarantee their superiority against potential aggressors. We will make sure we can conduct military operations throughout the world, and develop our capability to deploy the three services together and rapidly, including the ability to transport heavy equipment into an operational zone. We will take part in ballistic missile defence research so we can decide whether we should procure any such system for the United Kingdom.

    We will continue to target our efforts on recruiting for the armed forces. We will set up an Army Foundation College, which will provide 1,300 places for 16 and 17 year olds who want to join the Army. We will also enable the reserve forces to play a more active role in operations. We appreciate the enormous value of cadet forces, and our current plans include resources to encourage their further development.

    We will continue to support Britain’s defence industry, and we will work with companies to identify the technologies of the future.

    NATO will remain the cornerstone of our security. We will resist attempts to bring the Western European Union under the control of the European Union, and ensure that defence policy remains a matter for sovereign nations.

    10. The Constitution

    Alone in Europe, the history of the United Kingdom has been one of stability and security; We owe much of that to the strength and stability of our constitution – the institutions, laws and traditions that bind us together as a nation.

    Our constitution has been stable, but not static. It has been woven over the centuries – the product of hundreds of years of knowledge, experience and history.

    Radical changes that alter the whole character of our constitutional balance could unravel what generations of our predecessors have created. To preserve that stability in future – and the freedoms and rights of our citizens – we need to continue a process of evolution, not revolution.

    Conservatives embrace evolutionary change that solves real problems and improves the way our constitution works. In recent years we have opened up government, devolved power and accountability, and introduced reforms to make parliament work more effectively. It is that evolutionary process that we are committed to continue.

    Open, Accountable Government

    In recent years we have taken significant steps to open up government to public scrutiny, and give individuals more information to hold government and public services to account.

    We have introduced a code on access to government information, policed by the Ombudsman. We have published information on the workings of government previously held secret –including the composition of cabinet committees, and the structure of the security and intelligence services. We have introduced a new civil service code, and reformed the process for public appointments. We are pledged to legislate on the commitments in our 1993 White Paper on Open Government, including a statutory right of access by citizens to personal records held about them by the government and other public authorities. And we have set up the Nolan Committee and have implemented its proposals to ensure that the highest standards are maintained in public life.

    But our reforms go even wider than that. We have transferred power from central bureaucracies to local organisations such as school governors and hospital trusts. We have introduced the Citizen’s Charter We have also required them to publish information on their performance – information which enables the local community to keep a check on standards and apply pressure where needed. Wherever possible, we are widening competition and choice in public services. We showed in Chapter 6 how we wished to push this agenda forward.

    Regional government would be a dangerously centralising measure – taking power away from elected local authorities. We wish to go in the opposite direction, shifting power to the local neighbourhood – for example, by giving more power to parish councils.

    Parliament

    Parliament – alongside the Crown and our legal system – is one of the three key institutions that uphold our constitution. The supremacy of parliament is fundamental to our democracy, and the guarantee of our freedoms. The last 17 years have seen many changes to strengthen parliament and make it more effective – the flourishing of select committees, new procedures to scrutinise European legislation, reform of parliament’s working day, and a budget that brings together tax and spending.

    We have therefore already done much to improve the way parliament works and will do more. We have accepted the proposal from the Public Service Select Committee and put before the House of Commons a clear new statement of the principles underlying ministerial accountability to parliament.

    All these developments have made parliament open to the citizen, and the government more accountable. In the next session of parliament we will continue this careful reform.

    To give parliament more time to consider legislation thoroughly we will extend the Queen’s Speech to cover not only legislation for the immediate year but also provisional plans for legislation in the year after that

    This will mean that more draft bills will be subject to public scrutiny before they reach the floor of the House of Commons. It will give select committees more time to take evidence and report. And this should also mean better legislation.

    We do not believe there is a case for more radical reform that would undermine the House of Commons. A new Bill of Rights, for example, would risk transferring power away from parliament to legal courts – undermining the democratic supremacy of parliament as representatives of the people. Whilst this may be a necessary check in other countries which depend upon more formalised written constitutions, we do not believe it is appropriate to the UK.

    Nor do we favour changes in the system of voting in parliamentary elections that would break the link between an individual member of parliament and his constituents. A system of proportional representation would be more likely to produce unstable, coalition governments that are unable to provide effective leadership – with crucial decisions being dependent on compromise deals hammered out behind closed doors. This is not the British way.

    We have demonstrated we are not against change where it is practical and beneficial. But fundamental changes which have not been fully thought through – such as opposition proposals on the House of Lords – would be extremely damaging. We will oppose change for change’s sake.

    The Union

    The Union between Scotland, Wales, Northern Ireland and England underpins our nation’s stability. The Conservative commitment to the United Kingdom does not mean ignoring the distinctive individuality of the different nations. On the contrary, we have gone further in recognising that diversity than any previous government. We are publishing separate manifestos for Wales and Scotland.

    While preserving the role of parliament at the centre of the Union, we have given new powers to the Scottish Grand Committee and Welsh Grand Committee – enabling Scottish and Welsh MPs to call Ministers to account and debate legislation which affects those countries – something that would be impossible with separate Assemblies. For the first time, Welsh members of parliament can ask their questions to Ministers in Welsh in Wales. Most recently we have similarly extended the basic powers of the Northern Ireland Grand Committee.

    We believe this is the right way to go. By contrast, the development of new assemblies in Scotland and Wales would create strains which could well pull apart the Union. That would create a new layer of government which would be hungry for power. It would risk rivalry and conflict between these parliaments or assemblies and the parliament at Westminster. And it would raise serious questions about whether the representation of Scottish and Welsh MPs at Westminster – and their role in matters affecting English affairs – could remain unchanged.

    Nor do we believe it would be in the interests of the Scottish or Welsh people. A Scottish tax-raising parliament, for example, could well affect the choice of where new investment locates in the United Kingdom.

    In a world where people want security, nothing would be more dangerous than to unravel a constitution that binds our nation together and the institutions that bring us stability. We will continue to fight for the strength and diversity that benefits all of us as a proud union of nations.

    Northern Ireland

    While we cherish the Union and Northern Ireland’s place within it, we recognise that there exist within the Province special circumstances which require further action to be taken.

    After a quarter of a century we wish to see the unique and originally temporary system of direct rule ended and a successful restoration of local accountable democracy achieved. We want to see this brought about in a form which carries the broadest agreement possible. And we want to see the rights, traditions and interests of all parts of the community recognised within any such agreement.

    We will accordingly continue to pursue a policy of dialogue and negotiation with and between the democratic Northern Ireland parties. We will continue to underpin such negotiations with the guarantee that the constitutional position of Northern Ireland cannot and will not be changed without the broad consent of the people of Northern Ireland. At the same time we will continue to take whatever security measures are required to protect the people of Northern Ireland from those who seek to achieve their political goals by violent means.

    We seek peace. But we will never be swayed by terrorist violence nor will we ever compromise our principles with those who seek to overthrow the rule of law by force.

    A Choice of Two Futures

    At this election the British people face a stark choice. A choice of two futures.

    They can elect to continue down the road of success and achievement. An opportunity that has been hard won by the efforts and sacrifices of the British people. An opportunity that has only come about because successive Conservative governments have been determined to face up to the long term problems facing Britain, and take the tough steps needed to arrest our slow decline.

    Or they can elect to take a huge risk with that future – the future of themselves, their children, their nation – by handing over the government of the country to politicians who have fought, opposed and denigrated every step that has been taken to restore Britain’s economic health and standing in the world. Politicians whose own declared policies would burden the United Kingdom with new spending and taxation, new regulations, and new threats to the stability and sovereignty of the nation itself.

    You can only be sure with the Conservatives.

    Our Vision for Britain:

    25 Pledges for the Nation

    The Enterprise Centre of Europe

    TAX AND SPENDING. keep tight control of public spending priorities, aiming for our target of a 20p basic rate of income tax over the next parliament.

    PRICES AND MORTGAGES. Stick to the policies which have delivered the lowest inflation levels and mortgage rates for a generation, meeting our inflation target of 2½ % or less.

    JOBS. Protect jobs by keeping Britain out of the European Social Chapter; build on our record of falling unemployment; and help get the long term unemployed back to work – including by requiring those on benefit for some time to undertake work experience on a community project.

    ENTERPRISE. Support growth and investment by keeping Britain the lowest tax major economy in Europe. pursuing Britain’s global trade opportunities. and curbing unnecessary regulations.

    SMALL BUSINESS. Reform business rates to help small businesses.

    THE FUTURE. Keep Britain ahead in the technologies of the future, encouraging new entertainment and information services and using the Millennium Lottery Fund to give people access to new computers and information links in schools, libraries, and other public places.

    Opportunity and Ownership for Individuals and Families

    HELP FOR FAMILIES. Give priority to reducing tax bills for families looking after dependent children or relatives by allowing one partner’s unused personal allowance to be transferred to a working spouse where they have these responsibilities.

    HELP FOR CARERS. Help family members with heavy responsibilities caring for a relative to take a much needed break through a new Respite Care Programme.

    OWNERSHIP. Encourage schemes that help employees build a shareholding in the company they work for, alongside tax benefits for other savings schemes.

    PENSIONS. Transform pensions by providing all young people entering the workforce with a personal pension fund paid for by a rebate on their national insurance contributions, while maintaining a state pension guarantee.

    CARE IN OLD AGE. Make it easier for people to afford the cost of care in old age without giving up their house and savings.

    SCHOOL STANDARDS. Guarantee school standards by intervening directly to raise standards where schools or local education authorities are letting children down.

    SCHOOL CHOICE. Widen choice and diversity in schools, with more freedom for schools to develop their own character, more specialist schools, and a grammar school in every town where parents want that choice. We will also maintain our nursery voucher scheme offering a choice of places for parents of all 4 year olds.

    World Class Health and Public Services

    NHS FUNDING PLEDGE. Continue, year by year, to increase the real resources committed to the NHS, so NHS spending will continue to share in a growing economy.

    FAMILY DOCTORS. Enable all family doctors to provide a wider range of services in their surgeries and in practice-based cottage hospitals – offering faster and more local treatment.

    CITIZEN’S CHARTER. Continue to improve the standards and value for money of Britain’s public services, giving those who use them more information and, where possible, wider choice.

    ESSENTIAL SERVICES. Introduce measures to protect the public against strikes that cause excessive disruption to essential services.

    A Safe and Civil Society

    PUBLIC SAFETY. Support local police schemes to crack down on petty crime, and continue our funding for the installation of TV security cameras in town centres and public places that want them throughout the next parliament.

    JUVENILE CRIME. Give the courts power to impose speedy sanctions on youngsters, including an element of reparation to the victim; and continue our war against drugs.

    PERSISTENT CRIMINALS. Ensure persistent house burglars and dealers in hard drugs receive mandatory minimum prison sentences.

    A Confident, United and Sovereign Nation

    QUALITY OF LIFE. Continue the renaissance of our towns and cities, in particular harnessing private capital to regenerate the worst public housing estates; continue to protect our countryside and heritage; and use the National Lottery to help promote British sports, arts and culture.

    THE ENVIRONMENT. Maintain our international leadership role in protecting the environment, and continue improving air and water quality at home alongside effective conservation of our wildlife.

    THE NATION. Maintain the unity of the United Kingdom and preserve the stability of the Nation through an evolutionary – rather than revolutionary – approach to constitutional change.

    EUROPE. Seek a partnership of nation states in Europe, and not allow Britain to be part of a federal European state.

    THE POUND. Guarantee that Britain will not join a single currency in the next parliament unless the British people give their express approval in a referendum.

  • Mr Major’s Speech on Anniversary of Indian and Pakistan Independence – 18 January 1997

    Below is Mr Major’s speech at a rally to commemorate the 50th anniversary of the Independence of India and Pakistan. The speech was given at The Commonwealth Institute on 18th January 1997.


    PRIME MINISTER:

    Britain – The Best Place in The World

    I’ve just returned from a long visit with British businessmen to India, Pakistan and Bangladesh.

    Everywhere I went the welcome for Britain was very warm.

    Today, many people with an affection for those nations are gathered here.

    What brings us together?

    The same beliefs, the same hopes – to see Britain prosperous, stable, secure.

    A tolerant, civil nation, where everyone has the opportunity to make a success of life.

    We don’t wish to see people boxed into compartments or pigeonholed to fit into plans, according to their colour or sex or wealth. That isn’t the kind of society I care for. It isn’t the kind of society we’re building.

    We should relish the fact that every person is unique, with their own talents and abilities. Diversity is a strength and we should play to it, so that everyone can make the most of their skills.

    Some will do better than others – that’s a fact of life. Some will need help – and a Conservative Government will be there to help them. That’s a fact of life too. But all should have the same opportunities and choices.

    My aim is to make Britain the best place in the world to live.

    Is that a pipe-dream? We aren’t the same size as some countries and don’t have the raw materials or climate of others.

    But we do have something quite unique. We have our history. Our instincts. Our national character. We have, above all, the British people.

    And thanks to their hard work, Britain is in an enviable economic position.

    We’re enjoying growing prosperity – and, as we look forward, we can expect hard work to be rewarded with higher living standards, year in year out.

    The present prospects are very bright.

    And stability and prosperity are already giving even more people the opportunity to get ahead in life, the chance to realise their dreams and ambitions. Ahead of us is opportunity for all – irrespective of background.

    All of us here today share values that are instinctively Conservative. Some of you – or your parents or grand parents – have risked everything by leaving your country of birth and settling here. Your livelihood depended on your enterprise, your determination to come to Britain to give you and your families a better life.

    If you say to a gathering of British citizens whose fathers or grandfathers came from Asia or the Caribbean, “Look, we’ve all done a lot better than we ever expected, and life together is a happier experience than anyone would have supposed thirty years back”, you are bound to be accused of complacency.

    But I am going to say that.

    I believe the general record since the sixties is a good one – a record of living together, getting along with one another, of general decency. It utterly contradicts the fears which were so widespread in the late 1950s and 1960s.

    Many decent people feared racial tension – that there’d be riots, killings and endemic hatred, a trench war between dark and light-skinned peoples.

    The press was heavy with speculative articles about the rage pent up and waiting for explosion, the backlash which was so certain to come. Commentators deplored racism while waiting excitedly upon events.

    But the great trench war between the races never happened.

    Why is it those fears were so wrong?

    I believe it was thanks to the fundamental goodwill and decency of the British people. And politicians recognised that and built on it.

    Plenty of perfectly decent people were unsure about whether actual formal legislation on racial equality, the actual out-lawing of the colour bar, was a wise move.

    They feared the backlash and doubted the possibility of making good by law. That’s a respectable point of view, but also quite wrong. Public goodwill and decency existed Out there in the country, but had to be given a lead. If freedom includes freedom to run a colour bar, and bureaucracy forbids colour bars as evil, then that bureaucracy is right and that freedom is wrong.

    Politicians agreed on how to tackle the problems. We had fine leadership on the race issue from many in all parties.

    The best expression of the consensus is – not surprisingly to me – in the words of lain Macleod. Listen to what he told a Conservative Conference:

    “I believe quite simply in the brotherhood of man – men of all races, of all colours, of all creeds. I think it is this that must be in the centre of our thinking. .”

    Macleod went on:

    “And this is coming. There are foolish men who will deny it, but they will be swept away…”

    And they were swept away – not by legislation alone but by the British people. It was the British character that won the day. Civil, decent and tolerant.

    Society is an unimaginably complex thing made up of little threads and small actions. It works through a blurring of sharp edges, a million acts and omissions. And the acts and omissions of most people in recent decades are ones which imply acceptance and tolerance.

    Yes, tolerance. Tolerance is the real test of civilisation. Most of the relationships between people turn upon tolerance. It’s tolerance that confounded the forecasters of doomsday.

    “Oh,” says smart, knowing opinion. “Is that all? Tolerance? What a banal commonplace, little thing.” Yes, indeed. It is so banal, so commonplace this tolerance, that it is Alpha and Omega. It is so little a thing that if it disappears, men die.

    If you disbelieve me look at Srebrenica. That’s a warning of what happens when people no longer tolerate other religions or values or races. Tolerance had disappeared. Civility vanished.

    Civility goes far beyond politeness. It’s a breakwater against first thoughts and worst instincts. It inhibits anger, pulls away from prejudice. Civil people acknowledge other people – they respect their cultures and traditions.

    To take a concrete example, I think most civil people would share my concern about an approach some have to Islam.

    If you were to play the game of word association – you know, think of a word, then follow with the first next word you associate it with – I fear that I know what would too often follow the word “Islamic”.

    It would be “fundamentalism”.

    Now where all extremism or militancies do occur – Christian, Moslem or Political – I am going to be against them.

    But “Islamic fundamentalism” – how glibly it trips off the tongue. It comes out for all the world as if there were no other things which go with “Islamic”.

    But there are. And we must resist the temptation to judge a race or religion by its least worthy members.

    Because what is salient about Muslims – just as it is about Sikhs and Hindus – in Britain is that they respect the law, secular and religious, that they cherish the family and bring children up by earnest moral standards, that they are good citizens.

    They were attracted to Britain by our values – values that have brought people here for centuries. The Flemings, Huguenots, Jews.

    There’s a new, twentieth century word to describe our kind of society. Multi-cultural. I prefer a different word – cosmopolitan. Our trading history has, in every sense, broadened our horizons and outlook. They brought with them skills, enterprise, innovation.

    Their background did not stand in the way of success. They melded into the landscape of British society – and long may that continue.

    Today, neither race, nor colour, nor religion, nor background must stand in our way.

    If the man in the same office, cursing the same computer when it goes down, following the same football team, grumbling about the same café menu, has a different complexion, then it’s just about the only thing different about him. His job, his family, his hopes, his fears, his allegiances, his experiences are often otherwise all the same.

    Life is lived, people join, people belong.

    Darkness, lightness – that’s a difference losing significance with every day crossed off the calendar.

    A quick glimpse at Britain today and you cannot miss the tremendous contribution the ethnic community makes to our country. From footballers to lawyers, businessmen to pop stars, newsreaders to doctors – they’re all adding to and sharing in Britain’s success.

    And their success has come from hard work, enterprise, innovation. Making the most out of opportunities that come their way. That’s the kind of nation we Conservatives believe in and are creating.

    The Challenge Ahead

    I don’t wish to paint a picture of utopia. There is much still to be done. I don’t pretend that the prospects for the young black man in Brixton is yet as open to talent as it is to the young white man in the Home Counties. It clearly isn’t.

    But we must try and make it so.

    Jobs, crime, education – these aren’t purely racial issues – and no purely racially based solution would solve them. But many of these problems do bear disproportionately on ethnic minorities; unemployment rates are significantly worse for all ethnic minority teenagers. And black households are twice as likely to be burgled as white households.

    The institutional barriers of racism and prejudices that stood in people’s way might have begun to crumble. But we still have more to do to entrench and broaden opportunity.

    Politically correct policies won’t achieve this. No man or woman wants to succeed because of their colour. They wish to succeed on merit.

    Few things would inflame racial tension more than trying to bias systems in favour of one colour – a reverse discrimination that fuels resentment. An artificial bias would damage the harmony we treasure. Equality under the law – yes; equality of opportunity and reward – yes. These promote harmony.

    Policy must be colour blind – it must just tackle disadvantage. Faced by British citizens, whatever their background might be.

    Education

    But how do you achieve equality of opportunity?

    It begins with education.

    Over the last few years we’ve opened up our schools so parents – and taxpayers – can see how well they’re performing. That hasn’t always made comfortable reading. Too often bad schools are found where we need good schools the most – in areas where education is a lifeline of hope.

    Ironically, the councils whose schools score the poorest results are Labour controlled – the party that says education is their ‘priority’. In many of their areas it’s so bad it needs to be made a priority. Their politicians make the most of our reforms, enjoying the choice we’ve given them, but seek to deny it to other parents, leaving them to suffer the shoddy teaching their children have left behind. Equality of opportunity rings hollow coming from their lips.

    We’re helping those children who suffer from such education with practical policies. Testing children on the basic skills, and giving parents the results. Inspecting schools on a regular basis. And, when it’s really necessary, closing down failing schools.

    If young people aren’t able to read, write and add up from an early age, their chances of getting a rewarding job suffer a crippling blow.

    That’s why literacy is so crucial.

    We’re setting up literacy centres to pinpoint our efforts on those who need help most. On top of the tens of millions of pounds we’re already spending to help pupils who don’t have English as their first language, this will be another lever to raise standards.

    But that isn’t enough – we need to promote success and give excellence the freedom to flourish.

    Not every child is the same and they shouldn’t be forced to fit into a rigid education system.

    Every parent wants their child to be given the best education – and they’re the ones who know those children the best.

    So they should be in the driving seat of deciding what kind of education their children receive.

    Specialist schools, grant-maintained schools, city technology colleges and – yes, if parents want them – grammar schools. This is the choice we’re opening up.

    Creating a system that gives children an education that opens up a world of enjoyment, pleasure and potential. An education that prepares them for today’s modem hi-tech workplace, where getting a job becomes more competitive by the day.

    Jobs

    Almost alone in Europe, we’re enjoying falling unemployment. Britain is bucking the trend in spectacular fashion.

    This month, unemployment fell by 45,000 – down to its lowest rate for nearly six years.

    Over the last four years, Britain has created 900,000 extra jobs – more than France, Germany, Italy and Spain combined.

    Put it another way, since 1992 we’ve created the equivalent of two jobs every working minute – over 100 jobs every working hour.

    We’ve given people the tools – lower taxes, stable prices, a competitive edge – and they’ve created more jobs. Without the costly burdens of red tape and regulation that are weighing down European companies, British enterprise is winning the day.

    I know how tempting some of the policies of our political opponents might sound. New rights, new conditions, new minimum wages. But forcing employers to pay more to employ people means they won’t be able to take on new workers – but might end up sacking existing ones.

    And who will suffer? The young, the unemployed.

    Youth unemployment is 29% in France and 43% in Spain. That’s not a coincidence. Both countries have a minimum wage.

    Unemployment is not the kind of future I want for our young people – and it’s them I’m thinking of when I say ‘no’ to the minimum wage and Social Chapter. Why copy the mistakes other countries are making when things are going so well here?

    Unemployment is falling right across Britain – in every region, including the traditional employment wilderness of Northern Ireland – it’s now below 10%. That hasn’t happened for over 17 years. Some people used to point at certain areas and say they were no-go areas for new jobs. We’ve shown that doesn’t have to be so.

    Like the inner cities, where people need opportunities the most, but where it’s hardest to get a foot on the ladder.

    I was a councillor in an inner city once. I saw the problems people faced.

    And all too often socialist thinking made matters worse. It was well-intentioned – but wrong. Generations of wrong-headed policies in the inner cities drove away jobs with punitive business rates.

    The ambitious and the enterprising were driven from the inner cities by municipal controls and union driven services.

    Bad local government policy shut out new business with political correctness and impossible demands and self serving red tape. And the minority groups in our country often suffered most from this policy failure.

    But now look what’s happening.

    Bricks and mortar, jobs and hope are flooding back.

    Government-backed projects should create or preserve 600,000 new jobs, improve or complete more than a quarter of a million homes, and help over 92,000 businesses start up. Altogether, some £4 billion will be available over the next three years for local re-generation.

    Concrete proof that freeing enterprise, trusting private business, attracting investment spells new jobs, new opportunities, new hope.

    There’s more to do.

    Bring in more private capital. Break up monolithic council estates. Encourage more home ownership. Create more jobs. Build houses on a human scale.

    It’s a massive task. One I care about. But it can be done and we will bring in plans to do it.

    The people Labour have deserted, we’re helping – not with soundbites and smiles, but sound policies and substance. Labour’s heartlands reinvigorated by Conservative policies.

    Law and Order

    These policies aim not just to make people better off, but feel more secure.

    Safe streets and secure homes should not be a priority only for those in the leafy suburbs. Living free from fear is something every person should be able to enjoy. 5,000 more police constables by 1999, 10,000 more closed circuit televisions, tougher sentences for persistent offenders – these are practical policies to fight crime that has blighted too many communities.

    I spoke earlier about tolerance and civility. Sadly, there’s a small minority who do not share those values. They incite racial hatred and violence.

    That’s why we’ve given the police greater powers to deal with racially inflammatory material.

    But all too often, it’s verbal abuse that causes distress. Continuous snide, offensive language, designed to hurt. So we’ve strengthened the penalties available for intentional harassment and our new proposals will make the law stronger still.

    I’ve never been a victim of racial discrimination, but any decent person would agree that those kind of acts are utterly repugnant in a civilised nation like Britain. They have no place in our country – and never in our Party.

    The Conservative Party/Peroration

    The Party I joined is one that governed for the whole nation – because it represented the whole nation. You can’t tie a label to the Conservative Party. To me, that’s part of its attraction.

    We should remind people more often that the Conservative Party is an inclusive party – open to all.

    Its roots are sunk deep across the country. It must always be so.

    We have always had an alliance with people from all walks of life. That must always be so too.

    So to those of you here today and many beyond, I say that if you share our beliefs you are welcome.

    If you share our love of country, you have a place in our Party – in our associations, in our councils, in our Parliament.

    As an inclusive Party, we seek to build an inclusive Britain.

    We know how far we’ve come. We know what still needs to be done. We know how to do it.

    And if the work can be finished, we can then truly say “Britain is the best place in the world to live”.

  • Mr Major’s 1996 Conservative Party Conference Speech – 11 October 1996

    Below is the text of Mr Major’s 1996 Conservative Party Conference speech made on 11th October 1996.


    PRIME MINISTER:

    Madam Chairman, we’ve had a good week.

    It’s been the week the Tory family came together – to renew the family contract with the British nation.

    And through the week, colleague after colleague has set out fresh, detailed, new policy for the future.

    There’ve been some marvellous speeches.

    It’s been 21 years since Michael Heseltine first got a standing ovation at this conference. And no one has sat down since.

    The well-being of our country is more important than any political party.

    And the well-being of the Conservative Party is more important than any member of it.

    So the lesson is clear. Everyone in the Conservative Party should work – and if I know them, will work – heart and soul, irrespective of personal interests, to secure the re-election of a Conservative Government.

    Over the last two or three years there’s been attempt after attempt – by our opponents – to sully the reputation of our Party.

    Well, I know this party.

    No doubt it’s not perfect – nor is everyone in it.

    But I grew up in it.

    And that campaign won’t succeed.

    Because this Party as a whole is straight and honourable and true and – like you – I’m proud to be a member of it.

    Unlike Labour, we aren’t ashamed of our past.

    Unlike Labour, we haven’t abandoned our principles.

    Unlike Labour, we haven’t had to reinvent ourselves. We’re proud of what we’ve achieved.

    Because, Madam Chairman, we’ve changed Britain – for the better.

    ENTERPRISE CENTRE OF EUROPE

    When I became Prime Minister, I set out to make Britain a low inflation economy.

    I knew what a fight it would be.

    But we went for it. We took the flak.

    No weakening. Heads down. We did what we always do when we’re challenged: we came out fighting.

    And, as a result, we’ve had the longest run of low inflation this country has seen for a generation.

    I want to thank my colleagues – and you – my party – for standing with me through that battle. Between us, we’ve transformed the prospects for our country.

    And we did it with raw political gut.

    We set out to create jobs. And we’re succeeding.

    Unemployment is lower here than in any comparable country in Europe.

    In Britain it’s falling.

    In Europe it’s not.

    Last year, this year, and next year we’re set to have higher growth here, in our country, than any big country in Europe.

    Curiously enough, the Labour leader didn’t mention these successes in his flight of fancy last week.

    Pages missing perhaps?

    He just said the country was falling apart.

    Inflation down.

    Mortgages down.

    Unemployment down.

    Some fall.

    Of course, there was a time when this country was falling apart. It was when we had a Labour Government.

    So I’ve got some friendly advice for Mr Blair. If you knock your country, you’ll never lead it.

    The plain truth is I’m the first Prime Minister for generations who can say “We’re the most competitive economy in Europe”.

    And I intend to be the Prime Minister who builds on that success after we’ve won the next General Election.

    Madam Chairman, at that election there’s a central question. It’s this: who can be trusted with the future?

    Labour try to persuade people it’s them.

    “We’re different” they say. “We’ve changed our name”.

    “Rely on us – you know we’ve always been wrong in the past”.

    Well, that’s candid – if a touch eccentric.

    Trouble is, they’re wrong in the present as well.

    And it simply won’t do for Mr Blair to say, “Look, I’m not a Socialist anymore. Now, can I be Prime Minister please?”.

    Sorry Tony. Job’s taken.

    And anyway, it’s too big a task for your first real job.

    Mr Blair’s handlers are trying to spread the tale that he’s a very fierce dog indeed. Indeed, but also that he’s quite harmless.

    Another eccentric messages, “Fierce dog – no teeth!”.

    By the way, have you noticed how the less a politician has to say, the more over-heated the language in which he says it?

    When every aim becomes – “a crusade”.

    Every hope – “a dream”.

    Every priority – “a passion”.

    Then it’s time to duck from cover.

    And when the whole show is laced with words like “tragedy”, “catastrophe”, “triumph” and “destiny” – terms with real meaning, but which, ransacked for political advantage, degrade the message – then I think of Ralph Waldo Emerson: “the louder he talked of his honour, the faster we counted our spoons”.

    BELIEFS

    Madam Chairman, I came into politics to open doors, not shut them.

    They were opened for me.

    I was born in the war.

    My father was 66. My mother was – how shall I put it? Surprised.

    We were like millions of others. Not well off, but comfortable, until financially the roof fell in.

    Nothing special about that.

    But for us, it changed our life.

    My mother coped – as women do.

    I left school at 16, because 5 pounds a week mattered.

    I learnt something from that experience. In the game of life, we Tories should even up the rules.

    Give people opportunity and choice, to open up an avenue of hope in their lives.

    And by “people”, I don’t mean “some people”. I mean everyone.

    Opportunity for all.

    It’s in the bloodstream of our party.

    It was Shaftesbury who gave an education to thousands of children from poor homes.

    It was Disraeli who gave many working men the freedom to vote.

    It was Salisbury who brought free education within the reach of almost every family in England.

    All Tories.

    And it was Margaret Thatcher – another Tory, as you may know, who sold council houses and public industries, giving people a real stake in this country.

    Giving people opportunity marks the great divide in British politics.

    In its heart, Old Labour, New Labour, any old Labour still believe that Government knows best.

    I don’t.

    But then, I’m a Conservative.

    I believe we should give families opportunity and choice and a wider, warmer view of life.

    Our belief in choice is the driving force of our policy – its not a political ploy; for me it’s the core of what I believe in.

    EDUCATION

    I start with education.

    There are millions of children in our country. All unique. Everyone an original: different skills, different talents, different needs.

    Should each child – with all his or her originality – be made to fit into a regimented education system?

    Or should we design an education system to fit the originality of the child?

    We of course we should.

    So our task is to provide a rich choice of schools and colleges, giving the best to every child and demanding the best of every child.

    And who should choose the right schools for those children?

    The Government?

    The bureaucrat in Whitehall?

    The councillor in the Town Hall?

    Or the parents, who love and care for those children?

    Of course it’s the parents.

    Wherever possible, they should choose.

    We’re improving that choice every year.

    And we intend to widen it further.

    So, I make this promise:

    If parents want more grant-maintained schools – they shall have them.

    More specialist schools – we’ll provide them.

    More selection – they’ll have it. Why should government say “no” if parents think it’s right for their children?

    And if parents want grammar schools in every town – so do I, and they shall have them.

    We grammar school boys – and girls, Gillian – believe in choice for parents.

    That means parents shouldn’t face a choice between one bad school and another.

    What kind of choice is that?

    I’ll tell you.

    It’s the kind of choice you get in Islington – unless you move out of the borough.

    We’re going to change that. That’s why this autumn, as Gill Shepherd told you, we’ll turn today’s promises into tomorrow’s reality with a flagship Education Bill.

    We want high standards in every school.

    It’s why we set up the National Curriculum. It’s why we insist on tests.

    Without tests, how can you know what a child hasn’t learned?

    And how can parents be sure how well their children – of their school – are doing?

    When we insisted on giving that information to parents, John Prescott called it “Political Propaganda”.

    Just pause and think about that for a moment. It tells you a lot.

    Information to parents about their children – and the Deputy Leader of New Labour calls it “Political Propaganda”.

    Well, well. If education’s a passion for Labour, it’s a passion that dare not speak its results.

    SPORT

    While on education, I want to say a word about sport.

    Firstly, well done England on Wednesday. More please.

    And well done Scotland. I hear it was no effort at all. But you’d have won anyway.

    Last year, at this conference, I told you of my determination to restore sport, and particularly team sport, to the heart of school life.

    It’s natural and healthy for young people at school to have their sporting heroes and heroines: sportsmen and women whom they can choose as role models.

    So with the enthusiastic help of the Sports Councils, I’m going to set up a team of Sporting Ambassadors – widely drawn from the best role models in sports, our leading athletes, past and present – who’ll visit schools and talk to pupils, teaching staff, school governors and parents, to enthuse and inspire and encourage.

    To work up the scheme, I have asked that legendary England cricketer – that man for all seasons – Sir Colin Cowdrey – to chair a small committee whose members will be drawn from the elite of the sporting and academic worlds. Colin is here today and I want you to thank him for agreeing to do this.

    His committee will announce their conclusions by Christmas, and I intend that the scheme will be up and running in schools in the coming academic year.

    Colin scored nearly 8,000 runs for England. Now he’s going to inspire nearly 8 million boys and girls who might want to play, compete and represent their country.

    I want them to enjoy sport. And they’ll enjoy it more if they play to win.

    Take it from me – winning is fun.

    THE FAMILY

    There are those who believe in the self-before-everyone, grab-what-you-can school of thought. They may find opportunity for all an odd philosophy.

    But it’s ours.

    And for the last 17 years we’ve followed it.

    We’ve cut direct tax, given more and more people the opportunity to save, to own shares, own pensions, own homes.

    More than ever before, we’ve given families more independence and more freedom to choose.

    As a result, millions have become owners of homes, savings, shares and pensions.

    But not enough yet.

    Madam Chairman, in our next 5 years, we will seek new opportunities: an opportunity owning democracy.

    Helping more people save and build security for retirement.

    Helping people who need care keep more of those savings.

    We’re aiming for the least possible tax to give the greatest possible choice.

    As we can afford it, we’ll move to a 20p basic rate for all. That’s our priority.

    We know that cutting taxes isn’t government giving anything back to people.

    It’s the government taking away less of people’s own money.

    That’s why low taxes are right.

    We don’t want to soak the tax payer.

    Labour often say they want to soak the rich.

    But they’re the only party in history who also regularly manage to soak the poor.

    And sometimes no taxes are right. So, to encourage wealth creation for the future, we’ll reduce and then abolish Capital Gains Tax.

    Many people in our country build up savings long after they’ve enough for their own needs.

    One reason they do that is to pass on the fruits of their life’s work to their children and grandchildren.

    This is a powerful, human emotion.

    So, over time, our next target is to remove the burden of inheritance tax.

    Building wealth for the many, not for the few.

    WELFARE

    People treasure independence. Their own independence. The State is the last option, not the first.

    The more independence, the less reliance. The less reliance, the more we can help those in real need.

    There are many demands we must meet.

    Health – as science provides more treatment.

    Social services – as we improve care.

    We’ve always accepted this responsibility.

    But as we accept responsibility, so must people themselves.

    Dependency must be about needs, not culture.

    I can’t stand the welfare cheats. I’ll tell you why. They deprive those in real need.

    We’re determined that taxpayers’ money goes where it’s needed.

    Our task is to build a welfare system for the 21st century.

    A system for a self-help society – not a help-yourself society.

    And one way of building independence is to get more people back to work.

    We’re now doing that on a scale that’s the envy of Europe – partly because we refuse to make political gestures that cost jobs. That’s why I say “No” to the minimum wage and “No” to the Social Chapter.

    The minimum wage is the wage of the dole queue.

    It’s not a wage at all.

    How can you talk of a Social Chapter that makes it more difficult for people to find work.

    That’s why I say they’re no-go areas for jobs and no-go areas for us.

    It’s business not government that creates jobs.

    But government can help the unemployed.

    Last year I announced our plans to develop a Contract For Work.

    This week we Tories took a big step forward with the start of our new Job Seekers Allowance.

    We don’t want to pay people to stay on the dole. We do want to help them get back into work.

    So first we’re going to help those who’ve been out of work the longest. They’re the people for whom the barriers to opportunity are highest.

    First, we give them help to find a job and if that doesn’t succeed, they’ll be offered work on a community project.

    For many it’s just the motivation they need.

    But it also shows up those who don’t want to work. I think that’s right.

    So over the next year we’ll be extending the scheme to towns and cities across the country.

    This is part of building a welfare system we can afford. One that goes with the grain of the British nation. Fair to those in need. And fair to those who pay the bills.

    HEALTH

    Madam Chairman, every year, someone writes to The Times to say he has heard the first cuckoo of spring.

    And every year at the Labour conference, some cuckoo distorts out commitment to the National Health Service.

    Listen.

    Our NHS is unique.

    In this country, when you’re ill, we take your temperature.

    In other countries, they take your credit card. While I’m in Downing Street, that will never happen here.

    That doesn’t mean that National Health Service shouldn’t change. It must. If it were fossilised, it would decline.

    I saw that clearly the other day when Norma and I visited a doctor’s surgery – in Glossop actually.

    The family doctor is the gateway to the Health Service. More people see their doctor than anyone else.

    This was a fundholding practice – part of our reforms – and, in its own small way, an example of the quiet revolution of the NHS.

    Waiting lists have been slashed.

    People no longer have to trek to the district hospital.

    More services were available. Osteopathy, acupuncture, Alexander technique, counselling, nursing, physiotherapy and occupational-therapy posts created. Community Care improved. More money spend on patients, not paperwork.

    Tory policy working for the patient.

    Now, this practice is one of the very best. But that excellent service could be the future everywhere.

    Our task is to make it so.

    And this autumn, Stephen Dorrell will introduce a Bill to do just that – giving family doctors greater freedom to develop local services in their surgeries – creating a new generation of cottage hospitals all over Britain.

    And that’s only half of it. In the Autumn, Stephen will set out our ambitious plans to build the National Health Service for the 21st Century.

    And Labour’s vision? Stuck in the past and stuck in the mud – as usual. They plan to end fundholding.

    What ideological madness. Do you know what that would mean? I learnt in Glossop. It would mean that those new clinical posts, new nurses, new physiotherapists, the new occupational therapist – all these would go.

    New Labour, no new services.

    But, in the NHS we must always try to improve our services.

    So, before the end of this year, we’ll unveil new plans to help mentally ill people followed by new plans to reform social care for children, disabled people and the elderly.

    More practical Tory measures.

    And looking a little further ahead, I still hear too many stories of politically correct absurdities that prevent children being adopted by loving couples who would give them a good home. If that is happening, we should stop it.

    Madam Chairman, for over 17 years, through thick and thin, we Conservatives have found extra money for the NHS.

    It’s become a habit.

    So today, I give you a Health Service Guarantee.

    Our Manifesto pledge that the NHS will get more, over and above inflation, year … on year … on year … on year … on year … through the next Conservative Government.

    LAW AND ORDER

    Earlier this week, Michael Howard set out our new plans to fight crime. But there’s two things I’d like to add.

    Firstly, in a few weeks, we’ll published new plans to deal with younger offenders.

    They’re a real problem.

    We must spot school age children turning to crime and stop them in their tracks early on.

    One theme of our plans will be to make them repair the hurt they’ve done. And we’ll have some new ideas.

    But today, let me tell you of our plans for young tearaways who are out of control.

    We only want them in institutions if it’s really necessary.

    But if they don’t deserve that punishment – severe for young people – they mustn’t think they can offend and get away with it.

    Over the last year, we’ve been testing an electronic way of tagging offenders so we can confine them to their homes, and know that that curfew is being kept.

    It’s worked. We think it will work on younger offenders as well – so, we’ll try that too.

    If we know a young trouble maker is out there, night after night, disturbing the peace and committing crimes, we’ll make sure the courts have the power to order him to stay put. At home – off the streets.

    And the tag around his ankle – that can’t be removed – will raise the alert the moment he tries to go out.

    If he can’t go out on Friday and Saturday nights with his mates it might cool him down a bit. If he can’t watch his football team on Saturday, let me say it plain. That’s his fault. Not mine, not yours, his. And it’s time the buck stopped where the responsibility lies. No-one will miss the hooligan on the terrace.

    And he might just learn the lesson.

    And that will help him – as well as us.

    NORTHERN IRELAND

    Earlier this week, the IRA once spat their hate at the British nation.

    Many good people tell me I shouldn’t bother with Northern Ireland. “No votes in it” they say. Maybe not. But there are lives in it.

    And that’s why I bother.

    I don’t believe Northern Ireland will leave the United Kingdom, nor do I wish it to.

    But I know that there can only be a peace in Northern Ireland if all its citizens – Catholic and Protestant alike – feel their traditions have a welcome place in the United Kingdom. And there will only be peace of mind if we remove the causes that have given rise to so much conflict.

    This is a political task. Grindingly hard, I know. But that is what the multi-party talks are for.

    Progress has been slow – painfully slow. But progress has been made. And there is no other show in town.

    Bombs will not bring Sinn Fein into the talks.

    All they mean is that Sinn Fein has slammed the door on themselves.

    I applaud the way the Loyalists have maintained their ceasefire in the face of the IRA’s provocation. Their political leaders have gained in influence and standing as a result. I urge them to stand firm and not to throw away what they have achieved.

    The IRA’s latest betrayal of Northern Ireland means the demand for decommissioning of illegal arms is justified even more clearly.

    We must have decommissioning in parallel with the talks.

    And so that there’s no hiding place for those arms, missiles and explosives, Paddy Mayhew will introduce legislation into Parliament this autumn to set out how they can be taken out of circulation.

    I want those weapons off the street.

    And I want to remove the false excuses peddled by the men of violence for keeping their weapons. Let us expose these men to the world for what they are.

    I also want to make government in Northern Ireland more accountable and give MPs more responsibility. We have already given the Scottish and Welsh members greater ability to question Ministers.

    This autumn, I shall do the same for Northern Ireland. MPs from there should be able to question the Ministers and scrutinise Government policies directly in the Grand Committee, meeting sometimes in Northern Ireland. I will consult the parties about how best to achieve that.

    The IRA has always believed that Britain can be deflected by terrorism. They’ve always been wrong. And they’re wrong now.

    No-one will take Sinn Fein seriously ever again until they show a serious commitment to end violence for good.

    I believe in the politics of reason – backed by strong law enforcement. I know in the end it will prevail.

    And I promise the people of Northern Ireland this;

    For as long as there is a political breath in my body, I will fight for a secure way of life in Northern Ireland for a settlement fair to all.

    EUROPE AND THE WIDER WORLD

    Earlier this week, Ian Lang, Malcolm Rifkind and Ken Clarke set out exciting new possibilities for Britain as a global trading nation with interests around the world. Wonderful speeches, all of them.

    We have links and influence on every continent.

    We have given birth to a whole family of nations.

    I never forget that as I contemplate our future role in Europe.

    The sharpest element of the European debate is the possibility of a single European Currency.

    We Conservatives are in grown-up politics. We know that where Britain’s national interest is at stake, Britain’s national voice must be heard.

    Over recent days in articles, interviews and in this conference hall on Wednesday, I spelt out why we must play a full part in that debate.

    Madam Chairman, Europe is changing. The only thing that is certain is that it won’t be the same in the future.

    In a few years, Europe will have 26 or 27 members. They’ll be widely different. Many of them will never match the economic performance of the larger European nations.

    So, how do we cope with this?

    We believe Europe must become more flexible and responsive. That the only realistic future is a partnership of nations, not a United States of Europe.

    But some of our partners do see the future of Europe as ever closer political as well as economic integration.

    We don’t believe this is practical. Nor, to be frank, desirable.

    It’s not the Europe we joined and it’s not a Europe we can accept.

    This debate about the future direction of Europe is one of the most critical we have ever engaged in. We need to argue it fiercely but fairly.

    Europe is at a watershed.

    Britain is a great nation. Of course, we must be in Europe. But we are in Europe to help shape it – not to be shaped by it.

    NATION

    Madam Chairman, a buccaneering spirit, gritty resolve, give and take, a conviction that everyone is entitled to the same dignity, courtesy, and esteem because of what they are, not who they are.

    These are some of the values we all share. That’s what makes us a nation. Down the centuries, they have moulded our democracy.

    It’s not a concept of government copied across the world because it’s the oldest. It’s because it’s the best. We treasure it. That’s why we must hold on to it.

    The Union. Parliament. Our voting system. It’s naive to think that radical change would be easy or risk-free.

    And it’s revealing to look at Labour’s plans.

    Their priority would be to gerrymander the British constitution.

    They’ve avid for more parliaments, more assemblies, more regional assemblies.

    Their policy in in chaos. On Scottish referenda, they change sides more often than a windscreen wiper.

    What a message. “Vote Labour – for more politicians, more bureaucrats, more taxes, more regulations, more tampering, more meddling, more authoritarianism”.

    If this is the New Gospel, give me the old religion.

    In less than 1,000 days, Labour would vandalise nearly 1,000 years of British history.

    Once again, they show their true colours.

    Labour are the Party of the State. We are the Party of the Nation.

  • Mr Major’s Speech on Opportunity – 19 March 1996

    Below is the text of Mr Major’s speech on opportunity, given on 19th March 1996.


    PRIME MINISTER:

    Introduction

    Building a nation of opportunity is one of the five themes I set out last year. Opportunity is at the heart of my philosophy. And it marks a great divide in British politics.

    The word ‘opportunity’ has particular meaning for me. The same opportunity – for everyone, whoever they are, wherever they come from. I want people to get on. I want them to want to get on. I want them to believe that, if they have the talent and the application, there’s nothing they can’t achieve.

    To do that, people need freedom and encouragement to take responsibility for their own lives. To know the pride and security of independence.

    That’s the political divide. Politically correct and fashionable views often pull us in the opposite direction. Undermining opportunity by destroying choice and independence in favour of a patronising ‘we know best’ attitude.

    But I don’t view people without position or money from some lofty pedestal. I was one of them. I remember their hopes and the obstacles in their way.

    Those hopes are as varied as the leaves on the trees. For every family that wants to save there’s another that wants to spend. For every family that wants to decorate their living room, there’s another whose greatest dream is to own their home. For every child with the ambition to bat for England, there’s another thinking only of conquering disease.

    You can’t lay out a common high road – and say to everyone “This and this and this is right for you”. You give each family the tools to make their own choices and find their own way forward. It’s called opportunity. Choice. Freedom.

    Education

    Education is the first vital step on that road.

    Every child deserves the best possible start in life, no matter where they live, who their parents are, what school they go to.

    That’s why standards are crucial. The National Curriculum, testing, regular inspection, performance tables, action on failing schools and improving teacher training will all help raise standards.

    Little by little, we’re doing away with the fads and fashions that short-changed a generation of children.

    They called it progressive education. But it took us backwards, not forwards. Educational theorists said that to stretch minds and push talent was narrowing. Salting away facts and knowledge would kill self-expression. Testing children and telling them if they weren’t doing well enough would lower their morale. That was such folly, such crippling folly.

    Because facts give you armour and argument and self-esteem. Tests tell a teacher how much a child has learnt. And competition at school is preparation for life beyond school.

    But facts were out. Tests were out. Competition was out. And – of course – selection was out.

    So the public schools weren’t abolished, but grammar schools were. Progressive education was a tragi-comedy. It betrayed the very children it meant to help – those from low and middle income backgrounds.

    In an opportunity society, every parent should be able to choose a good school for their child. If they wish to choose private education, they should be free to do so without political hectoring. That choice is part of freedom as well. But they shouldn’t have to pay for good education. They shouldn’t have to pay for choice. And they shouldn’t have to pay for their views as parents to count. They shouldn’t have to pay to ensure they receive good information about how their child is doing. And they shouldn’t have to pay for the sort of school that is right for their child.

    So we’ve created a spectrum of schools. A spectrum that reflects the fact that every child is different. Grant-maintained schools, specialist schools, church schools, city technology colleges, and grammar schools.

    We are currently considering how to increase that rich variety with more selective schools. We’re consulting on raising the percentage of pupils that schools can select without seeking prior approval from government.

    Selective schools represent an important part of the rich spectrum of schools which has become one of the great legacies of the Government’s education policies.

    In addition, we have expanded the Assisted Places Scheme and are currently doubling the number of places available.

    Some people would like to abolish selective schools and the Assisted Places Scheme.

    That’s like saying “We don’t want you getting above yourself’. It’s towering humbug.

    Well, I do want children to get above themselves. I want our youngsters to follow their own skills and ambitions, and not be confined by artificial barriers and outdated social conventions.

    Some children will choose to learn vocational skills. I’ve had enough of people who look down on those children and treat them as second best. Society depends on the men and women who have practical skills to do practical jobs.

    So practical skills are being put on an equal footing with academic subjects. We have a framework of vocational qualifications, with status and rigour. The old divide between universities and polytechnics has gone. Little by little, we’re chipping away at the prejudice that has turned too many of our young people away from vocational education.

    One epic change, though, has already happened. Barely seventeen years ago, one in eight of our young people went on to higher education. Now, it’s one in three.

    That’s more than a statistic: for countless families it’s something they never thought they’d see. I never had the chance to go to university, and neither did many of my generation. I’m glad, and I’m proud, that today’s young people aren’t shut out of these opportunities.

    In our schools and colleges, I want the gates thrown open and ladders let down. Good education should be for the many, not just the few.

    We have made many reforms in education. There are more to come. Evolution, not revolution, is our watchword. And our objective is an ever rising quality of education – in the interests of our children and in the interests of our country.

    Politicians over-use the word ‘passionately’. But if I ever wanted something passionately in my life, I want that.

    Jobs

    I’ve welcomed the chance to take on the forces of political correctness to get our young people a decent education. And I don’t intend to let political correctness destroy their chances of getting a job after school.

    18 million people are unemployed in the European Union. The unemployed are a nation in their own right: one that exceeds the combined populations of Sweden, Denmark and Ireland.

    Unemployment in Europe has been getting worse for about 30 years. In the last 20 years for every job created in Europe the USA has created 4.

    We should ask why. And the uncomfortable answer is that Europe’s politicians have quite simply priced their workers out of jobs.

    To be popular, politicians have imposed obligations on employers and benefits on employees. And, although they were well meaning, they have overdone it. So fewer people have jobs. It’s affecting young people most of all.

    In France, over a quarter of young people are unemployed. In Spain, almost a third are.

    But here, in the United Kingdom, youth unemployment is below the European average. We’ve more of our people in work, and fewer out of it, than any major European country.

    It costs less to employ someone here in Britain than in Germany, France, Spain and Italy.

    And I don’t mean in low wages. The OECD survey suggests that the average British family enjoys higher take home pay than their counterparts in Italy, France and Spain.

    I mean costs on business. For every £100 spent on wages, a British employer has to add an extra £18 for non-wage costs. But that same employer would have to add £32 in Germany, £34 in Spain, £41 in France and £44 in Italy.

    So why on earth should we sign the Social Chapter and put more burdens on business?

    The employer made to pay above what he can afford employs fewer people. More – literally – means less. It hurts the young most of all, because they’re at the bottom of the ladder. So why have a minimum wage?

    The Social Chapter and minimum wage are not only a threat to jobs. They’re economic handcuffs. They are a guarantee of higher unemployment when our main task must be to bring unemployment down.

    The people who advocate these policies say they want to create jobs. And so they do – sincerely. But wanting isn’t doing. It’s a sort of wrongheaded piety. It’s a mistake the young people of Britain cannot afford – because it’s their future it would destroy.

    So I won’t sign the Social Chapter. I won’t have a minimum wage. My aim is to build a dynamic, enterprise economy, in which people can build up a business free from the heavy hand of government.

    An enterprise economy in which small businesses are encouraged. 95 per cent of firms employ fewer than 20 people. Those small firms are the power house of our economy. And I’m not going to throw a spanner in their works by foisting new burdens on them.

    An enterprise economy is not negotiable.

    Enterprise needs low taxes, which fire the incentive to work hard and invest. We’re now back on our tax-cutting agenda, giving people the opportunity to spend or save more of what they earn.

    We want to cut taxes further and that means controlling public spending. When we spend public money – your money – we must spend it well. When we spend money on the benefit system, it must give protection to the needy but foster independence. And it must be a system we can afford.

    Here too there’s plenty of political correctness to battle with. It’s easy to be warm hearted with other people’s money. Too many still argue that the way to entrench opportunities and security is to increase constantly the size of the welfare state.

    But that’s not only unaffordable – it’s counterproductive. It perpetuates the myth that the State can satisfy the dreams of its people, individually and collectively. It ignores the fact that people have a desire and a responsibility to provide for themselves and their families. Our reforms of the benefit system have been designed to underpin incentives and offer a route to independence. Look at what we’ve done.

    Extra help to get back to work. New programmes to stop people sliding into the misery of long-term unemployment. New ‘Project Work’ pilots, that recognise that people receiving unemployment benefit ultimately have an obligation to accept reasonable work on offer.

    A whole new system of benefits for the disabled to help with their problems and make it easier for them to work.

    Making family credit more generous and helping parents who need childcare when they’re out at work.

    Finding practical solutions to the problems of single parents.

    I have no patience with people whose only response to our reforms is to snipe and criticise. I don’t accept that the only good benefit system is a bigger benefit system.

    Which would people most prefer? Income that comes from the state in the form of benefit? Or money they know they’ve earned and can spend as they please?

    Which brings us to the fundamental freedom of choosing and owning.

    Opportunity and ownership belong together. People naturally want to build to last.

    Some call this materialism, and criticise the Government for putting such selfish ideas into people’s heads.

    That’s patronising rubbish. The aspiration to choose and own was always there. People who had nothing always wanted to have something. All we did was make it possible.

    Take pensions. Private investment for retirement now stands at nearly £600 billion. It rose by £100 billion last year, more than the sum total the state spent – £90 billion – on social security. Year by year the value of what people save privately for retirement increases.

    The same goes for other savings. I’ve always believed that people should be encouraged to save for the long term. So when I was Chancellor, I launched TESSAs – tax free savings accounts. 4.5 million accounts were opened, and £30 billion was invested in them.

    We gave people another choice. Did they want the state to own and run industries, or did they want a piece of it for themselves? The privatisations of the 1980s and the introduction of PEPs brought share-ownership to the people. Share-ownership is no longer confined to the leafy stockbroker belt in the Home Counties. Today, there are more shareholders than trade unionists. And, thanks to the last Budget, more people will be able to have a share in their own business.

    But the most tangible way to take control of your life is to own your own home. Home ownership has risen dramatically over the last fifteen years of Conservative Government. I’m proud of that. I’m tired of hearing the people who became home-owners for the first time parodied as if they were only interested in making a fast buck.

    The desire to own your own home is the most natural thing in the world. Ask anyone who has grown up being buffeted from one rented place to another, with little security and no chance to put down roots. Where’s the independence when you’re in the council’s hands to get the leaking roof mended? I understand only too well how people in that trap dream of a place they can call their own.

    Yes, too many people who bought homes during the past few years have been hit by negative equity. But there are no quick fixes to put this right. Nor does the problem – which time will correct – negate the argument for home ownership. The best way to help the housing market is to keep interest rates – and thereby mortgage costs – down. They’ve now fallen by 8% since 1990 – which saves the average mortgage holder £160 pounds a month. Mortgage rates are at their lowest for 30 years.

    Combine rising earnings, today’s level of house prices, low inflation and low mortgages, and you have one of the most favourable times ever to buy a home. It provides the right conditions for a sustainable recovery in the housing market. House prices are already starting to edge upwards. Most housing commentators expect this recovery to continue in the year ahead.

    But let’s not forget: most people want to own their home not because it’s a financial speculation, but because of the independence and security home ownership brings. Ownership and independence that lie at the heart of an opportunity society.

    Labour

    Of course, the Labour Party also talks about opportunity. I don’t want to be unfair in analysing them, but there’s a world of difference between opportunity and opportunism.

    The first is what I stand for: the other I concede to Labour. Labour have always opposed our opportunity policies.

    They wouldn’t have given workers the chance to own shares in the once crumbling nationalised industries – although they’re the party that supported common ownership.

    They wouldn’t have given tenants – suffering under Labour councils – the chance to buy their homes.

    They wouldn’t give those parents, who face the appalling prospect of sending their children to failing schools run by Labour councils, the choice of schools in other areas – unless, of course, they sit in the Shadow Cabinet.

    They wouldn’t give bright children from disadvantaged backgrounds the chance to go to private schools – denying them the education some Labour politicians enjoyed.

    And to people who want to take home more of what they earn, to save or spend it as they wish, what do Labour say? “We’ll save you the trouble. We’ll spend the money for you.”

    Labour think most people can’t do anything for themselves, and good people like Labour politicians should do it for them. In other words, “Leave it to Labour. Labour will tell you what to do”.

    That’s an appalling mindset. Yet it’s how Labour think.

    And it’s what they say to people they claim to represent. People often dependent on the state, but who want more independence from it. “Onwards and upwards” offends Labour’s sense of planning. In Labour’s eyes, they have to know their place – in Labour’s hands, state-controlled and dependent on it.

    Of course there must always be a helping hand for those in need. But the state isn’t the panacea for all our ills. There is a limit to what the state can do and we politicians should admit it.

    We should also tell people that the world is a complicated place and so are the problems we face. Complex problems cannot be resolved easily with the stroke of a pen on a cheque book or the flourish of a sound bite on the media.

    But they can be solved if the state knows its place and keeps to it. And if it elevates to its proper role the freedom of choice and opportunity, the rights of reward and enterprise, and people’s obligations to themselves and their families.

    Many worry these days about the role of the family. They have some reason to do so. Yet I remain an optimist. The family is the rock of security and personal freedom.

    In a fast changing world, we need to do all we can to strengthen families, to bolster their freedom and independence to take responsibility for themselves.

    I believe we should ensure that the tax and benefit system helps people who take their family responsibilities seriously. I believe that people should keep more of their own money to spend on themselves and their families.

    One way of strengthening families’ independence is to allow parents to pass on more of their wealth and savings to the next generation.

    Families continue to be, as they always have been, the main way in which we care for the old and sick in our society. That’s how it should be – and should remain. But as more people live longer, the demand for long term care can drain a family’s assets. So we’re looking closely at how we can help them meet those costs, and I hope we’ll have announcements to make shortly.

    For the same reason, I have always harboured an aim to cut inheritance tax. Inheritance tax robs people of the chance to pass on to their children and grandchildren the rewards of their life’s work. Every parent would like their children to enjoy opportunities they didn’t have. That’s why I plan – as a long-term goal – to cut and then abolish inheritance tax.

    But parents want to pass on to their children more than just the fruits of their life’s work. That’s why most parents care about their children’s education – and why education is the bedrock of opportunity. Yet they also want to know that their children are going to inherit a better world, with a richer quality of life.

    Enriching Britain’s quality of life is central to the National Lottery. Across the country, hundreds of small sports clubs, amateur dramatic societies and local museums have been able to realise their dreams thanks to Lottery funds. In the past year, nearly £1,500 million has been raised for over 5,000 projects. Soon those awards will go wider still – to skilled athletes, artists, young people and others, so that British talent can flower and blossom as we enter the Millennium.

    These projects are giving all young people the chance to take part in sport, the arts, music. They give new opportunities to the disabled, those in the inner cities and the disadvantaged. They help nurture a talent for life.

    Peroration

    Decent homes, rewarding jobs, a good education, shares, quality of life. Giving more people those opportunities is what One Nation Conservatism is all about.

    Do-gooders with schemes, plans, and grand designs won’t achieve that. Their sort of help rarely works, but simply reinforces divisions, destroys dignity and ambition. It conditions people – in that appalling phrase – to “know their place”.

    I don’t want people to “know their place”. I never want to hear people saying “That isn’t for us” or “I could never do that”. I don’t want people to suffer from a poverty of aspiration. I want them to have high ambitions and the chance to achieve them.

    We are now well beyond the recession that so inhibited our hopes and ambitions for the country. We will soon be setting out our future policies in detail. They will be centred on trusting the people, building enterprise, giving people freedom, extending further opportunity and choice, and setting the framework in which people can make the best of their lives as a result of their own efforts and their own decisions.

    That is what the ancient Conservative adage – of trusting the people – really means.

    It is the heart of what we are building. Some of the structure is in place. But more needs to be built and I am determined to do it.

  • PMQT – 5 March 1996

    Below is the text of Prime Minister’s Question Time from 5th March 1996. Michael Heseltine responded on behalf of John Major.


    PRIME MINISTER:

     

    Ministerial Visits

    Q1. Mr. Wilkinson: To ask the Prime Minister when he next intends to visit the Ruislip-Northwood parliamentary constituency.

    The Deputy Prime Minister (Mr. Michael Heseltine): I have been asked to reply.

    My right hon. Friend has no plans to do so.

    Mr. Wilkinson: Before my right hon. Friend fixes a date, can he reassure my constituents in Ruislip-Northwood about the grave consequences of the European Court of Justice’s retroactive decision today to demand compensation of the British taxpayer for the loss of Spanish fishermen’s rights? Will my right hon. Friend the Deputy Prime Minister endorse the comments of the Minister of State, Ministry of Agriculture, Fisheries and Food, the hon. Member for Banbury (Mr. Baldry), that the quota hoppers must go? Can my right hon. Friend confirm that the Government will raise the common fisheries policy at the forthcoming intergovernmental conference?

    The Deputy Prime Minister: I am grateful to my hon. Friend and to my hon. Friend the Member for St. Ives (Mr. Harris), who have taken the matter extremely seriously. We obviously regret the European Court’s decision and we shall certainly take it up in the context of the intergovernmental conference. We believe that there have to be changes.

     

    Engagements

    Q2. Mr. Kirkwood: To ask the Prime Minister if he will list his official engagements for Tuesday 5 March.

    The Deputy Prime Minister: I have been asked to reply.

    My right hon. Friend the Prime Minister is carrying out official engagements in the far east.

    Mr. Kirkwood: Let me return to the question of the European Court’s decision; does the Deputy Prime Minister agree that the concept of the common fisheries policy is based on relative stability, with the allocation of quotas within member states according to historic fishing rights? Does the right hon. Gentleman further agree that the European Court’s decision is most unhelpful– the most recent in a series of unhelpful decisions concerning the common fisheries policy? What concrete proposals will Ministers take to the upcoming intergovernmental conference, to stop continuing back-door access to fishing stocks that are so vital to our coastal communities?

    The Deputy Prime Minister: That comes rich from the hon. Gentleman, whose party is committed to giving up the British veto in all circumstances. That is a classic example of the Liberals trying to have it all ways in all circumstances.

     

    Q3. Dr. Michael Clark: To ask the Prime Minister if he will list his official engagements for Tuesday 5 March.

    The Deputy Prime Minister: I have been asked to reply.

    I refer my hon. Friend to the reply that I gave some moments ago.

    Dr. Clark: Has my right hon. Friend noticed, when assessing Government policy, that when it is eventually time to put votes in ballot boxes, electorates reject Labour policies and choose Conservative ones, as they have in Australia and Spain? Is this not a sign of what will happen here? After all, these are recent results, and the parties which were beaten were not socialist but new Labour.

    The Deputy Prime Minister: I am grateful to my hon. Friend for his question. I could not help remembering that, not long ago, the Leader of the Opposition said that he was a fully paid-up member of the Paul Keating fan club. Unfortunately, there are not many others left in that club. The fact of the matter is that, when people have to choose between no Labour and new Labour, they choose no Labour. No leading western European country is left with a Labour Government. I cannot believe for one minute that the United Kingdom will embrace what everybody else has rejected.

    Mr. Prescott: Why is it that in Tory Britain in 1996, 1,000 families every week have their homes repossessed, 120,000 families are homeless, and 1,700,000 families are trapped in negative equity? On that miserable record, is not my right hon. Friend the Leader of the Opposition correct in identifying the Conservatives as the party of home wreckers?

    The Deputy Prime Minister: Nobody would ever accuse the right hon. Member for Kingston upon Hull, East (Mr. Prescott) of being new Labour. He is one of the old lags of the business, and therefore, of course, it is not surprising that his statistics are so carefully selected. The fact is that the number of households that face negative equity is down by 26 per cent. since 1992, and the number of people with mortgage arrears has fallen by 16 per cent. in the past year alone.

    I noticed that the Leader of the Opposition made a speech today about the need for special help for those with negative equity–that may seem to Opposition Members a very interesting and ingenious scheme. I sent out to inquire whether mortgages are available from the building society movement at more than 100 per cent. of the purchase value of homes on the market. The Abbey National, Cheltenham and Gloucester, Alliance and Leicester and the Halifax all have in existence schemes similar to that which the Leader of the Labour party says that his Government would introduce if his party were ever elected. They are already there. Building societies are doing it. The market has spoken. Tory Government works.

    Mr. Prescott rose–[Interruption.]

    Madam Speaker: Order.

    Mr. Prescott: How can the right hon. Gentleman be so complacent in the face of the sheer misery created by the Government’s policies? If the Government are so proud of their housing record, why not put it to the test by setting the date for the by-election in South-East Staffordshire, and let the people decide?

    The Deputy Prime Minister: This is the Labour party which fought to stop council tenants getting anywhere near owning their own homes. This is the Labour party which has not realised that banks and building societies have approved 13 per cent. more loans in January than they did last June. The Labour party is out of date. The housing market is showing signs of recovery.

    Mr. John Marshall rose–[Interruption.]

    Madam Speaker: Order. I call Mr. Marshall.

    Mr. Marshall: I ask my right hon. Friend to condemn the Hamas guerillas, who have killed 68 Israelis in recent days. Will he offer our sympathy to the relatives of the victims and to the Israeli people as they battle with this attack upon them and their democracy? Will he convey our understanding to the Israeli Government as they react to this attack upon themselves and upon the peace process itself?

    The Deputy Prime Minister: I am sure that the House will be grateful to my hon. Friend for raising the appalling situation in Israel. I am sure also that the House shares my feelings of horror and anger at the renewed terrorist outrages, which have killed more than 30 people over the past two days in Jerusalem and Tel Aviv.

    I shall make two points. First, it is the duty of the international community to support Israel and the Palestinian Authority in their efforts to keep the peace process on track and to encourage them in their efforts to curb terrorism. We particularly urge President Arafat to do his upmost to step up those efforts. That is a message that we have repeated to him unequivocally since the beginning of this tragic train of events nine days ago.

    Secondly, I make it clear that it is illegal for anyone in this country to support terrorist attacks abroad. We are carefully monitoring the situation of Hamas activists in the United Kingdom. We shall investigate vigorously any evidence of such criminal acts, which will not be tolerated.

     

    Q4. Mr. Sheerman: To ask the Prime Minister if he will list his official engagements for Tuesday 5 March.

    The Deputy Prime Minister: I have been asked to reply.

    I refer the hon. Member to the answer I gave some moments ago.

    Mr. Sheerman: Can the Deputy Prime Minister confirm reports that he has changed his mind and that he now supports a referendum on the single European currency? If he has, is he aware that the Chancellor of the Exchequer believes that anyone of that view is slightly up the creek?

    The Deputy Prime Minister: The hon. Gentleman will be fully aware of the Government’s position, which my right hon. Friend the Prime Minister has spelt out extremely clearly. It is a position to which my right hon. and learned Friend the Chancellor of the Exchequer fully subscribes.

    Mr. Budgen: If the Government’s proposals to the intergovernmental conference were accepted by the other members of the European Union, would we have any protection against judgements, such as the recent one in respect of Spanish fishermen?

    The Deputy Prime Minister: I do not know whether my hon. Friend heard the reply that I gave some moments ago. I made it clear that we would raise today’s judgement in the intergovernmental conference. We believe that there is need for change, and we intend to press that. As my hon. Friend, and the House generally, will be aware, the Government intend shortly to publish a White Paper on the Government’s policy towards the IGC, which the House will be able to consider carefully.

     

    Q5. Mr. Battle: To ask the Prime Minister if he will list his official engagements for Tuesday 5 March.

    The Deputy Prime Minister: I have been asked to reply.

    I refer the hon. Member to the answer I gave some moments ago.

    Mr. Battle: As a thousand families suffer repossession of their homes every week, by deliberately reducing the income support system for home owners, are not the Government’s policies shamelessly ensuring that in our society, after 17 years of Tory rule, if someone loses his job, he will lose his home?

    The Deputy Prime Minister: The hon. Gentleman cannot square that with the facts that I gave the House recently, which show that the number of mortgage arrears has fallen by 16 per cent. and that the housing market is beginning to recover. He will know, of course, that unemployment has been falling for the past 29 months.

     

    Q6. Sir John Hannam: To ask the Prime Minister if he will list his official engagements for Tuesday 5 March.

    The Deputy Prime Minister: I have been asked to reply.

    I refer my hon. Friend to the answer I gave some moments ago.

    Sir John Hannam: Has my right hon. Friend seen the recent Lloyds bank business survey report, which shows that businesses in Devon, Cornwall and Somerset have achieved the highest increase in export orders of all regions in the country, and increased investment and profitability? Will he accept the congratulations of all those from the south-west on those results? Would he like to conjecture on what would happen to such achievements if we ever had a Labour Government?

    The Deputy Prime Minister: I am extremely grateful to my hon. Friend, who has commented on what is extremely good news for the west country. As for conjecture about what would happen in the unfortunate event of this country electing a Labour Government, we can see, from the facts of what has happened in Europe, what would be likely to happen here. In Spain, nearly one in four people are unemployed. In France, under socialism, nearly one in eight were unemployed, whereas, in this country, the figure is one in 12 and has been falling for 29 months.

    Perhaps the other judgement is that of the international investors. Spain achieved 7 per cent. of inward investment into the European Union and France 18 per cent. whereas the UK attracted 30 per cent., proving beyond peradventure that, under this Government, the UK is the enterprise centre of Europe.

     

    Q7. Mr. Mullin: To ask the Prime Minister if he will list his official engagements for Tuesday 5 March.

    The Deputy Prime Minister: I have been asked to reply.

    I refer the hon. Member to the answer I gave some moments ago.

    Mr. Mullin: On reflection, does the Deputy Prime Minister regret his refusal to sign a public interest immunity certificate, given that we now know that the Attorney-General was right all along?

    The Deputy Prime Minister: The hon. Gentleman has conveniently forgotten that the Attorney-General advised me about the form of the PII certificate that I signed.

    Mr. Garnier: Does my right hon. Friend agree, and will he confirm what he said a moment ago, that the UK is the enterprise centre of Europe? Is it not right that the Prime Minister should be in the far east encouraging business men there to invest in this country, and is it not surprising that they invest in this country, given the burdens of the non-labour wage costs that the Europeans must deal with?

    The Deputy Prime Minister: It is one of the most satisfactory aspects of the many satisfactory aspects of our economic performance that we are attracting inward investment, which has created the jobs leading to enhanced exports–already at record levels. It has come to this country because the Government’s policies have made it the most attractive place to invest. One of the reasons for that is that we have avoided the social chapter, which all the Opposition parties are committed to introducing.

  • PMQT – 7 December 1995

    Below is the text of Prime Minister’s Question Time from 7th December 1995.


    PRIME MINISTER:

     

    Engagements

    Q1. Mr. Hood: To ask the Prime Minister if he will list his official engagements for Thursday 7 December.

    The Prime Minister (Mr. John Major): This morning, I presided at a meeting of the Cabinet and had meetings with ministerial colleagues and others. In addition to my duties in this House, I shall be having further meetings later today.

    Mr. Hood: Will the Prime Minister tell us who is running the Government this week? Is it proper for the hon. Member for Southend, East (Sir T. Taylor) to announce that the Government intend to publish a White Paper on Europe? If so, is that not further proof of the lurch to the right–or is the Prime Minister doing what he usually does: ruling nothing in, ruling nothing out and being decisively indecisive?

    The Prime Minister: As my right hon. and learned Friend the Foreign Secretary has made clear this morning, we are examining all the issues that will come up in the intergovernmental conference, including whether it would be appropriate to have a White Paper.

    Sir Peter Tapsell: Does my right hon. Friend agree that the present turmoil in France epitomises the potential social and political dangers of any attempt to shackle Britain to a single European currency or the social chapter, as is proposed by the Labour party?

    The Prime Minister: What it certainly shows, as my hon. Friend will be aware, is the difficulties that the present French Government have inherited from their socialist predecessors. If their predecessors had dealt with the underlying structural and fiscal problems at the time, the present French Government would not be facing this difficulty.

    Mr. Blair: I am surprised that the Prime Minister cannot tell us whether there will be a White Paper, but let me put this question to him and see whether he can answer it. Is it still the Government’s position that he will not rule out joining a single currency in the next Parliament?

    The Prime Minister: That is still the Government’s position, as I have made clear on a number of occasions.

    Mr. Blair: I think that that is a very important statement. The Prime Minister has said that he will not rule it out in the next Parliament. We know that that is not the position of the Welsh Secretary or of many of his Back Benchers. Will he tell us this, then: is that the position of the whole of his Government, including the Euro-sceptic members of the Cabinet?

    The Prime Minister: Of course it is the position of the whole Government and it has been repeatedly stated that that is the position of the whole Government. We have made that clear on a number of occasions, and nothing has changed.

    Mr. Robert Jackson: One of the conditions of the Dayton agreement is that all the parties should observe the European convention on human rights. Does my right hon. Friend agree that it would be somewhat paradoxical for British forces to be, in a sense, enforcing the European convention on human rights in Bosnia while we in Britain are contemplating withdrawal from that convention?

    The Prime Minister: We are certainly unhappy about some of the rulings made under the European convention on human rights. We have made that point and we will continue to do so. We were one of the founders of the European convention on human rights which, as my hon. Friend knows, is a quite separate matter from the European Court of Justice. That does not alter the fact that we and a number of other countries have been profoundly unhappy with some of its rulings. As I have said, we have made that point clear and will continue to do so.

    Mr. Ashdown: Will the Prime Minister make it clear whether Britain will withdraw from the European Court of Human Rights?

    The Prime Minister: We have not said that we shall withdraw from the European convention on human rights. We have said that we are profoundly dissatisfied with some of the court’s judgments and that we propose to take that up with the European Commission of Human Rights and deal with it in some way in the future.

    Mr. David Atkinson: Is my right hon. Friend aware that, at the end of this decade, a great many of our computers and those elsewhere will fail because they are not programmed to recognise the double zero of the year 2000? That will have immense and costly consequences for British business, small businesses and, perhaps, Government Departments. Can my right hon. Friend say whether the Government are aware of that and how they are responding to it?

    The Prime Minister: I am grateful to my hon. Friend for that helpful question. I shall certainly ensure that my right hon. Friend the President of the Board of Trade examines the matter and responds to him.

     

    Q3. Mr. Tony Banks: To ask the Prime Minister if he will list his official engagements for Thursday 7 December.

    The Prime Minister: I refer the hon. Member to the answer I gave some moments ago.

    Mr. Banks: When the Prime Minister writes his customary letter to Santa this Christmas, will he make it quite clear that he is not asking for a puppy? Will he make it clear that he would discourage anyone from giving a puppy as a present to a child this Christmas, because a puppy is for all the year, not just a Christmas present?

    When the Prime Minister has finished his Christmas list and is writing his resolutions for the new year, will he make a resolution to introduce legislation to ban puppy farms? Such legislation would win support on both sides of the House and outside.

    The Prime Minister: I hope that everyone who contemplates giving a pet as a present for Christmas bears in mind that it is a present for the long term, not just for the short term. I hope that people will be responsible in their present giving.

    Mr. Butler: Is my right hon. Friend surprised at the survey today which found that more than half of all private investors would remove their capital from Britain in the event of a Labour victory–or does he consider that that is the inevitable consequence of such a catastrophe?

    The Prime Minister: I cannot pretend to be surprised at that survey’s findings. I suspect that those surveyed have examined the likely implications of joining the social chapter and of the spending promises made by the Labour party and realised what they would do to taxation, competitiveness and employment.

     

    Q4. Mr. Bayley: To ask the Prime Minister if he will list his official engagements for Thursday 7 December.

    The Prime Minister: I refer the hon. Member to the answer I gave some moments ago.

    Mr. Bayley: As a parent of school-age children I am sure that I speak on behalf of many parents when I tell the Prime Minister that the Government have failed to convince the public or school caterers that British beef is safe. Will the Prime Minister, as a matter of urgency, make sure that the Department of Health issues genuinely independent advice about this matter to reassure parents?

    The Prime Minister: Of course this is an important matter for schools and for the safety of consumers as a whole. I have sought and received advice that there is currently no scientific evidence that BSE can be transmitted to humans or that eating beef causes CJD. That is not in question. I am also advised that beef is a safe and wholesome product. The chief medical officer’s advice is clear–there is no evidence that eating beef causes CJD in humans.

     

    Q5. Mr. Congdon: To ask the Prime Minister if he will list his official engagements for Thursday 7 December.

    The Prime Minister: I refer my hon. Friend to the answer I gave some moments ago.

    Mr. Congdon: Does my right hon. Friend agree that the quality of teaching is crucial to improving standards and that the publication of test results is important in monitoring them? Does my right hon. Friend find it strange that the belated conversion of the Labour party to recognising the need for higher standards has not been matched in the past by its willingness to see the publication of test results? In fact, it has done everything to frustrate that.

    The Prime Minister: My hon. Friend makes a point that will be recognised by parents throughout the country. On this matter, the Opposition’s actions have frequently spoken a great deal louder than their words. During the past few years, they have opposed every measure that we have introduced to raise standards. They have described school league tables as political propaganda, test results as virtually useless, teaching children the basics as a fanatical doctrine–[Laughter.] Hon. Members may scoff, but they are scoffing at what their party and their Front Bench have said.

     

    Q6. Mr. Beggs: To ask the Prime Minister if he will list his official engagements for Thursday 7 December.

    The Prime Minister: I refer the hon. Member to the answer I gave some moments ago.

    Mr. Beggs: Does the right hon. Gentleman accept that Northern Ireland students who have been accepted into universities in England to follow physiotherapy or other courses leading to para medical qualification should not be disadvantaged and should not be expected to pay the balance between their mandatory award and the fees charged by the universities, which sometimes amounts to more than £5,000? Will he consider the matter and ensure that Northern Ireland students are not less well off than students from the Irish Republic or the European Union? Will he endeavour to remove this perceived disadvantage?

    The Prime Minister: I shall certainly examine that matter. If the hon. Gentleman has pointed to a genuine disadvantage, I shall invite my right hon. and learned Friend the Secretary of State for Northern Ireland to examine it and see whether it can be corrected.

    Mr. Lidington: Which local education authority produced the worst results in the recently published GCSE league tables? What options would the Government want to be available to parents in that local council area who are dissatisfied with the education authority’s performance?

    The Prime Minister: I understand that the worst results were in Islington education authority. There are several options available to Islington. I hope that the education authority will try to correct what has gone wrong and improve the quality of education for all the children in Islington. Of course, there remains the option of grant-maintained schools, which many parents throughout the country rightly perceive as offering good education that they want their children to enjoy.

     

    Q7. Mr. McFall: To ask the Prime Minister if he will list his official engagements for Thursday 7 December.

    The Prime Minister: I refer the hon. Member to the answer I gave some moments ago.

    Mr. McFall: In her Centrepoint speech this morning, Princess Diana highlighted the inadequacy of the present system for homeless young people forced to live on the streets. Will the right hon. Gentleman give an undertaking to respond to that eloquent plea by providing further assistance for such young people so that the problem no longer blights British society?

    The Prime Minister: The hon. Gentleman will know that the Government have been dealing comprehensively with the problem for some time and have made remarkable improvements over the past few years. We are fully committed to ensuring that there is no necessity for some people to sleep rough. We very much hope that the culture, which has grown up among some people, of doing so can be changed and broken. The Government are providing about 5,000 places in permanent and temporary accommodation for people who otherwise would have to sleep rough. That is in addition to the outreach and resettlement services for homeless people living on the streets. There is no doubt that there has been a remarkable reduction in the number of people sleeping rough. Plans to eliminate that practice continue, and I look forward to that day being reached.

    Sir Teddy Taylor: I welcome very much what my right hon. Friend said about a possible White Paper on Europe. Does he agree that it would not only help to set out the Government’s basic objectives, but would draw to public attention the ever-widening gulf between the Government and the Opposition who, under their present leadership, are destined to surrender more of our liberty, power, jobs and freedom to Brussels?

    The Prime Minister: That policy is clear in many Opposition speeches, but it is not universal. They seem to sing a different tune on some occasions. We are considering the desirability of a White Paper, which was recommended by the Foreign Affairs Select Committee and the Scrutiny Committee. We shall consider their recommendations carefully, but we have made it clear on a number of occasions that we will most certainly oppose some areas–certainly in advance of any White Paper saying so–in the negotiations that are to take place next year. They include an extension of qualified majority voting, massive new powers for the European Parliament and signing the social chapter. Whatever decision is reached about a White Paper, those policies are firm and will not change.

     

    Q8. Mr. Skinner: To ask the Prime Minister if he will list his official engagements for Thursday 7 December.

    The Prime Minister: I refer the hon. Gentleman to the reply I gave some moments ago.

    Mr. Skinner: When will the Government stop closing hospitals and wards, which affects the million-long waiting list and creates misery for all the people who want to get into hospital? Is the Prime Minister aware that it is creating another problem? Does he know that people are roaming the streets at night looking for hospitals to visit, but cannot find them? It is giving a whole new meaning to the term “roving ambassador”.

    The Prime Minister: On the subject of provision of resources in the health service, the hon. Gentleman will be aware of the increased provision–an extra £1.3 billion again this year, which is 70 per cent. above inflation during the year. There was a time when there was a significant cut in the health service, but that was when the hon. Gentleman supported a Labour Government.

  • Text of the 1995 Budget – 28 November 1995

    Below is the text of the 1995 Budget, held on 28th November 1995 and presented in the House of Commons by the Chancellor of the Exchequer, Kenneth Clarke.


    Budget Statement

    Mr. Deputy Speaker (Mr. Michael Morris): Before I call the Chancellor of the Exchequer, it may be for the convenience of hon. Members if I remind them that, at the end of the Chancellor’s speech, copies of the Budget resolutions will be available to hon. Members in the Vote Office.

    The Chancellor of the Exchequer (Mr. Kenneth Clarke): I have already said publicly that I have been looking forward to this year’s Budget. I am enjoying each Budget a little more as I get nearer to my aims – [Interruption.] My aims are very worth while.

    The British economy has now been growing for almost four years. The recovery has created more than half a million new jobs. We have more of our people in work than any other major country in the European Union. Inflation is enjoying its best run for almost 50 years. All the major western economies have slowed down this year, but our recovery remains stronger than most. The International Monetary Fund has forecast that, next year, we shall be joint top, with Germany, of the G7 growth league table.

    Few Chancellors have delivered their Budget against a background of such strong economic fundamentals. But getting this far has not been easy. It has required tough decisions on tax and spending over the past three years. This Budget builds on the hard-won gains that this Government have made and keeps Britain on course to be the enterprise centre of Europe: a Britain that creates more jobs and generates the greater wealth and personal prosperity in which all can share; a Britain in which everyone can keep more of what they earn or save to spend as they choose, not as the state chooses; and a Britain where more money is spent on the things that everyone cares about – our schools, our hospitals, our police. [Hon. Members: “Oh.”] Yes.

    The people of this country believe in those goals. Only this Government are committed to the means of achieving them. We are keeping inflation low. We are keeping control of public spending. We are keeping Government borrowing on a downward path. And we believe in the policies of low taxation, which all countries must follow if they want to be world-class economic powers.

    These are the people of Britain who are hard working and take responsibility for themselves and their families. They are the people who want to get on in life, who run their own businesses and who create jobs. And they are the people with that great British virtue – a social conscience – [Interruption.] – people with a real social conscience, who want to see a successful economy first earn the wealth, in order to give the weak and the less fortunate a helping hand.

    This Budget addresses the aspirations of the people of this country in an economically and socially responsible way. It controls public spending overall while shifting more money towards schools, hospitals and the police. It keeps Government borrowing on a clear downward path and fiscal policy tight so that the recovery will be sustained. And it cuts taxes. For all those reasons, that is why I have been looking forward to this year’s Budget.

    The Recovery

    Before moving on to specific tax and spending measures, let me deal briefly with the economic background. In 1994, the economy grew by around 4 per cent., fuelled by the success of British exporters overseas. No mature industrial economy could easily sustain those rates of growth without risking a rise in inflation. That is why towards the end of last year I raised interest rates. In the event, slower growth in the world economy has reduced the growth of British exports. British exporters are well placed to compete in markets overseas. For example, we now have a current account surplus with the so-called tiger economies of south-east Asia. But our key markets in America and Europe are growing by less than they were in 1994.

    The growth in this country will be sustained because the fundamentals of the economy are strong as a result of our economic policies. We have low inflation, sound public finances and more competitive businesses. The change in the pace of growth this year is not unique to Britain and has been seen in the United States, Germany and elsewhere. No recovery ever proceeds at a constant rate of growth throughout. In fact, this recovery is proving to be the steadiest seen in Britain for a generation.

    Many commentators confidently predicted that the higher tax and lower public spending of the last three Budgets would knock the recovery off track. They were wrong. Consumer spending has been on a firm upward trend since the recovery began. With the necessary tax increases behind us, consumer spending should grow further next year and the year after.

    Businesses have responded to the economic recovery by investing for the future. Manufacturing investment has grown by 12 per cent. over the past year. The conditions for further increases in investment – low inflation, low interest rates, low corporate tax rates and healthy company balance sheets – remain in place.

    For the economy as a whole, the forecasts, which I am publishing in the Red Book, are for growth of 2.75 per cent. this year and 3 per cent. next year.

    My last two Budgets have strengthened the foundations of the economy and put the recovery on to a secure footing. I have reduced public spending and borrowing plans to create more room for the wealth-creating part of the economy to grow. I have helped businesses. And I have improved the workings of the labour market.

    The decisions I took and the policies I pursued in those Budgets have helped to reduce pressure on me to increase interest rates further, without jeopardising my inflation target.

    Inflation

    We have got inflation under control. Inflation has picked up over the past year as the impact of last year’s worldwide increase in commodity prices has fed through the price chain. Those cost pressures are now steadily easing. Underlying inflation may be close to its peak and should resume its downward path during the course of next year. It remains on course to meet the Government’s target of 2.5 per cent. or below by the end of the present Parliament. The House might care to remember that last August was the 20th anniversary of inflation in this country reaching a staggering 26.9 per cent.

    The Public Finances

    We have got inflation under control. We have also got the public finances under control. The Government have delivered last year’s tough public spending plans. Indeed, we expect to undershoot them. However, tax receipts have come in lower than expected this year. That is partly due to lower inflation and to lower growth. The public sector borrowing requirement is the difference between two enormous numbers, so that forecasts for public borrowing have always been notoriously difficult to make – under whatever party. I have therefore been cautious and prudent this year in setting out the latest projections for the PSBR. I now expect the PSBR to be £29 billion in the current financial year. That will be £7 billion less than last year and £16 billion less than two years ago. I am determined to follow a consistent course and I have taken more public spending decisions to keep it that way.

    I have no intention of throwing away the gains we have made in recent years in getting public borrowing down. We will keep on track towards balance in the medium term because I do not want the future strength of the recovery put at risk. Overall, our decisions on public spending and the tax measures I shall describe shortly will be broadly neutral in their impact on the downward path for the PSBR over the next three years.

    That downward profile for Government borrowing sets the overall framework for my Budget this year. I am not prepared to take any action that would put at risk my fiscal target of moving towards balance in the medium term. I had to make the difficult judgments and decisions about the balance between the levels of taxation and public spending. This year, as in previous years, I have made those judgments and taken those decisions with the dominant priority of improving the long-term health of the British economy. Our tax and spending policies must promote our aim of becoming the enterprise centre of Europe.

    Public Spending

    In each of my three Budgets, I have reduced public spending plans substantially. This year, I have once again kept a firm grip on public spending, helped by my right hon. Friend the Chief Secretary. My right hon. Friend and I have at least three things in common. We have both been in charge of big spending Departments, so we are both poachers turned gamekeepers. Neither of us could be described as adopting the slash and burn approach to public spending. But we are both convinced that the share of national income taken by the state in public expenditure must be reduced to below 40 per cent. if we are to remain competitive in today’s world. It is essential to give the private sector more room to generate the jobs, the investment and the wealth that will make people and their families more prosperous.

    That goes hand in hand with our commitment to a modern welfare state. In the rapidly changing world of technological advance and a more flexible labour market, the British people need to be prepared and equipped to embrace change in a flexible way. They will be more willing to do that if they know that high-quality schools, health care and a safety net for the unemployed, the disabled and the old are there if and when they need them. That is why we are modernising the welfare state so that it underpins the British economy, and does not undermine it. We are changing the welfare state to ensure that it serves the needs of today, not of 40 years ago; that it serves those who genuinely need it; and that it is affordable to the taxpayer.

    Those objectives are being achieved in the face of huge pressures for higher public spending that come rolling in year after year. But this Budget proves that we can have good-quality public services and spending control. Unlike our critics, we understand that good services depend not only on how much one spends, but on the way that one spends it.

    That realistic but socially responsible approach has guided me this year. I have limited the growth of spending overall. But I have also provided more money for the public services that the British people care about most – schools, hospitals and the police. To pay for that, my right hon. Friend the Chief Secretary and I have found savings elsewhere from our continuing drive to modernise government.

    Let me deal first with the priority areas where I have been able to increase spending plans.

    Mr. Dennis Skinner (Bolsover): Having cut them last year.

    Mr. Clarke: None of them was cut last year. That was an ill-thought-out and inaccurate interjection.

    I shall turn to what we are doing to the national health service. This Government are committed to the national health service. I am proud that since 1979 spending on the NHS has increased by more than 70 per cent. in real terms. We are continuing to deliver our commitment to increase spending on the NHS in real terms. That is what we said that we would do, and we are doing it.

    Public spending on the national health service will increase by over £l billion next year. In addition, patients will benefit from improvements in efficiency, including reductions in NHS management costs. All those savings – around £650 million next year – will be ploughed back into patient care. Privately financed projects will bring nearly £700 million of extra investment over the next three years without in any way undermining the fundamental principle that health care should be free at the point of service. It is no good the word “private” producing curls on the lips of Labour Members. The money is on top of the additional £1 billion of public expenditure, and it all represents additional resources for our free national health service.

    Schools

    The Budget allows for spending on schools to rise next year. We have already increased spending per pupil by some 50 per cent. in real terms since 1979. We devote a higher proportion of our public spending to education than Japan, Germany or France.

    Our achievements have been impressive. Post-16 staying-on rates have risen dramatically, from 42 per cent. in 1979 to 72 per cent. now. Almost one in three young people go on to higher education, up from one in eight in 1979. We have a higher graduation rate than any other major European country. We have achieved many improvements in our schools: introduction of the national curriculum, more rigorous schools inspection, measures to tackle failing schools, greater choice for parents, better vocational education and extension of free nursery education. That is not just good for our children; it is good for our future and good for our economy.

    Our reforms have delivered better standards of education for each pound that we spend – but we are also spending more pounds. The plans that I am publishing today allow for an increase in spending on schools of £878 million. Within that, over £770 million will be channelled through the local authority settlement. Parents will rightly expect local authorities to carry that funding through to school budgets, and they should ask their local authorities how the extra money for schools will be spent on their children.

    Police

    Since 1979, spending on our police has almost doubled even after allowing for inflation. Next year, the resources available to fight crime will be increased again. Money is being provided for an extra 5,000 police officers over the next three years. That is on top of the 32,000 increase in the police service since 1979. The plans also allow for an extra 10,000 closed circuit television cameras in town centres and elsewhere.

    I have found those extra resources for important programmes because we are changing government to ensure that it meets the needs of people today, not those of 20, 30 or 40 years ago. We are cutting Government bureaucracy, cracking down on fraud, getting Government out of activities in which they need not be involved and using private sector skills and finance to provide better public services. That is the hallmark of a Government who are looking to the future needs of a modern industrial state.

    Running Costs

    We are now making spectacular efficiency gains as a result of our civil service reforms of recent years. I remind the House that in my last Budget I cut provision for central Government running costs by 10 per cent. in real terms over three years. This year, I will go much further on top of that. The cash cost of Whitehall will be £860 million lower in three years’ time than it is today. In real terms, that represents total savings of 12 per cent., which is equivalent to a saving of nearly £2 billion a year. But we must never delude ourselves that more resources for schools, hospitals and police as well as tax cuts can be paid for just by eliminating waste in the public sector. Life is not that simple. We have also had to look elsewhere.

    Three years ago, before my right hon. Friend the Secretary of State for Social Security very skilfully put in place a programme for long-term reform, we were expecting social security spending to grow by more than 3 per cent. each year in real terms. We now expect real growth in planned spending of around 1 per cent. per year over the next three years. That reduction in growth will build up year on year to a cash saving of huge proportions. The changes that we have made and that we are making are an assurance for future generations. We are going to leave our children a welfare state that works and a welfare system that they can afford.

    My right hon. Friend the Secretary of State for Social Security will announce the details of this year’s settlement to the House tomorrow. I shall set out just the main points. Increases in social security spending next year will be well within the growth of the economy. We will ensure that all that spending represents legitimate spending on people in genuine need. That is why my right hon. Friend will give details of a further intensive campaign against fraud. He will also announce measures that will mean that people who apply for asylum on arrival in the country will cease to receive benefits after an unfavourable adjudication.

    My right hon. Friend will announce steps to close the gap between single parents benefit and those paid to other families. The right approach to single parents is neither to penalise them nor to favour them. The costs and responsibilities of having children are the same for couples as they are for single people.

    We intend to build at the same time on our previous measures to help more mothers move from benefit dependency into work. My right hon. Friend will announce a package of measures to encourage work, including a further increase in the child care allowance in family credit from £40 to £60 each week.

    Next is housing benefit. The housing benefit system should not be an inducement for young people to leave their families before they need to. My right hon. Friend will announce measures to restrict the amount of housing benefit paid to single people under the age of 25 to a maximum that more sensibly reflects their circumstances. The benefit system should offer a real incentive to young people to rent within their means, improving their incentives to work rather than dependency on the social security system. [Hon. Members: “Nonsense.”] Opposition Members are so predictable. It is by restricting spending in those areas that we can protect people in greatest need and stand by our pledges on pensions and child benefit. Others apparently claim to be thinking the unthinkable. I have yet to see evidence of their thinking at all.

    This Government have acted decisively to put in place policies to bring social security spending under better control. Let no one underestimate what we have achieved. The measures that I have announced in my three Budgets will reduce planned social security expenditure by £5 billion each year by the end of the century.

    Social security is a good example of how more money can be found to be spent on areas that we care most about, by trimming back elsewhere. We have applied that principle to most other programmes. When hon. Members examine the full details of our spending plans, they will find that, in practically every Department of Government, we have found significant savings while protecting the front line of public service delivery.

    Let me give two examples. We have found further efficiency savings in defence, but we maintain fully our commitment to a strong front line and, in a tight public spending round in the Foreign Office, the planned allocation for bilateral aid is likely to be little changed from that set out in last year’s departmental report. British bilateral aid is internationally recognised for its high quality and for the substantial share going to the poorest countries in Africa and Asia, and that will continue.

    We are also doing more to get the Government out of activities that they simply need not be involved in. My right hon. Friend the Secretary of State for Defence is today announcing his intention to transfer ownership of the Ministry of Defence married quarters estate to the private sector. That will improve the management of the estate, which will be good for the services, and good for service families. We plan to privatise the Housing Corporation loan book, and to encourage the banks to provide student loans.

    Private Finance

    There are many services that the Government have a duty to ensure are provided as public services, but where private sector management skills and expertise can improve delivery to the public. That is where the private finance initiative comes in.

    Under the private finance initiative, the public sector does not simply sign a contract to buy a prison, a train or a computer system. It pays to have specific services supplied at guaranteed levels of performance – available prison places, trains running reliably on the Northern line, national insurance records kept up to date. [Interruption.] The Opposition had better make up their mind whether they agree with that policy or not. It rather depends which day of the week it is or which spokesman is speaking, as far as I have been able to see. The Government choose the quality services that the public require, and then go out and acquire those services from private companies with the finance and expertise to deliver.

    The key point is that the initiative delivers infrastructure projects of higher quality at a lower overall cost to the British taxpayer. That is because the private sector puts its own money at risk and brings its own management skills to bear.

    The initiative means that better public services will be provided by better private means. The service remains a public service and the taxpayers get a better deal. No wonder some of our critics have decided to copy our innovative policy. [Interruption.] We are now, as the deputy leader of the Labour party demands, far beyond the stage of simply identifying projects. The money is starting to flow. We expect actual capital spending under the private finance initiative to be around £2 billion per year and rising over the next three years. We expect to have agreed contracts worth at least £14 billion by the end of 1998-99.

    That money is replacing old-style public sector capital spending and it can deliver big gains in value for money for the taxpayer. In the past, cost overruns and delays were typical of public sector capital projects. The private finance initiative is delivering better-quality projects. To take two well-known examples, the PFI contract for Northern line trains specifies reliability levels that are nearly four times above the best fleet currently operating on London Underground. The service that we shall get from the new national insurance records system could have cost up to twice what we shall pay under the privately financed deal that we have struck. As a result of those flows of private finance, we have been able to find savings in publicly financed capital while maintaining overall high levels of investment activity and high-quality investment.

    Let me just illustrate progress with another four projects that demonstrate the extent to which the private finance initiative is spreading to all parts of Government activity. First, I can announce a huge new package of privately financed roads, five new projects with a capital value totalling £500 million. Secondly, my right hon. Friend the Secretary of State for Health has announced today that a £35 million deal is going ahead to modernise two hospitals for the South Buckinghamshire NHS trust. Thirdly, we are tendering for the refurbishment of Lowdham Grange prison, a £50 million project to add to the two new prison building contracts at Bridgend and Fazakerley, which will be signed shortly. Finally, full bids will be due on 5 December for the £45 million water project in Inverness and Fort William. My hon. Friend the Financial Secretary to the Treasury will be publishing more details tomorrow on the real progress of the private finance initiative.

    In the 1980s, our privatisation programme brought enormous benefits to the British economy. Our private finance initiative can and will do the same in the 1990s and beyond.

    Challenge Funding

    We are also rapidly developing our innovative idea of challenge funding. Challenge funding invites groups to compete for public funds to improve local services. That is another way in which the quality and value for money of public services is improved.

    The first single regeneration budget challenge fund bidding round ensured that every £1 of public money attracted another £1 of private funding. Some £250 million has been made available for the third and fourth bidding rounds for the single regeneration budget challenge fund. That will help to regenerate many areas, including inner cities. More than £300 million of challenge funding will be made available to speed up the transfer of deprived housing estates to housing associations and other private landlords.

    Challenge funding has enormous potential for projects of all kinds. My right hon. Friend the Secretary of State for the Environment is considering more challenge funding for a wider range of local authority capital provision, and he will be making an announcement in this debate later this week. Challenge funding ensures that the best possible projects get the money, while fostering genuine local commitment to the project.

    Budget Strategy

    Public spending as a share of national income varies from year to year, but under this Government’s policies – and I have described our policies, which are policies of change and of priorities – over the past 16 years, the trend has been downward.

    In the mid-1970s, when public spending peaked, it did so at 47.25 per cent. of national income. The next peak reached 45.5 per cent. in the early 1980s and the last peak was 43.5 per cent. in the recession of the early 1990s. I now expect total public spending to be 42 per cent. of national income this year.

    When I became Chancellor two and a half years ago, I said that we should aim to push the ratio below 40 per cent. and keep it there. The decisions I am announcing today will achieve that aim. The ratio will be below 40 per cent. from 1997-98 onwards. That is far below the ratio in any other major European country. Controlling public spending is crucial to our goal of making the economy more successful and the enterprise centre of Europe.

    I have now taken £53 billion out of projected public spending in my three Budgets. I judged that necessary to reduce Government borrowing following the international recession of the 1990s. Even with the extra money for schools, the extra money for hospitals and the extra money for the police, I now expect total planned public spending to be kept broadly unchanged in real terms over the next three years.

    When we first set out our public spending control totals three years ago, most of the pundits did not believe that we would stick to them. The doubters have been proved wrong.

    Not only have we stuck to our plans, but I have managed to reduce them again, for the third year running. Next year, the control total will be £3.25 billion below the level that I set in last year’s Budget. That is £12 billion below the level we expected it would be for that year when I was first appointed Chancellor.

    Having carefully reviewed the latest projections for public borrowing in the light of those decisions, I have concluded that we can now return to the task of starting to cut taxes again. [Interruption.] I hope that some Labour Members begin to understand that there is a correlation between the two in a well-managed economy. I am able to make tax cuts broadly equivalent to the spending reductions, with Government borrowing still falling to zero by the end of the decade.

    After the Budget measures are taken into account, I expect the PSBR to continue to fall at roughly the rate we have now achieved in the past two years. I expect it to fall from £29 billion this year to £22.5 billion in 1996-97 and £15 billion in 1997-98. Broad balance should be reached after a further two years. The financial deficit is now expected to be close to the Maastricht reference level of 3 per cent. of GDP in 1996-97 and to fall well below it in subsequent years.

    So fiscal policy will remain tight. That is why the measures in this year’s Budget are economically and socially responsible. I have made it clear all along that every Budget I deliver will be dominated by the long-term interests of the British economy. Let me now turn to my tax proposals.

    INDIRECT TAXES

    I have had to consider carefully where tax cuts might fall. Since 1979, this Government have shifted the tax burden away from direct taxes, which fall on income and employment, and towards indirect taxes on spending and consumption. That is the best way to encourage enterprise and investment and it is the best way to improve the long-term performance of the British economy. Before moving on to direct tax, let me run through my proposals for indirect taxes.

    Landfill tax

    Last year I proposed a new landfill tax, which is a charge on the disposal of waste in, for example, tips and old quarries. That will come into effect on 1 October 1996. It will be charged at a standard rate of £7 a tonne and a lower rate of £2 for inactive waste.

    That is a tax on waste in order to enable me to reduce the tax on jobs. The money raised by the landfill tax will allow for a matching cut in the main rate of employers’ national insurance contributions by a further 0.2 per cent. to 10 per cent. from April 1997. That will cut the cost of employment by half a billion pounds and will make it cheaper for businesses to create new jobs.

    Road fuel

    Next, I intend to stick to my commitment to raise road fuel duties by at least 5 per cent. on average in real terms. From 6pm this evening, tax on petrol and diesel will rise by 3.5p a litre. I also plan to increase the tax on super-unleaded petrol by a further 4p next May. That reflects its higher emission of pollutants such as benzene and the dangers to the Revenue of switching to super-unleaded from leaded petrol. Despite those increases, petrol prices in this country should remain lower than in any other major European country.

    Last year I froze the duty on gas used in road vehicles, that is, liquid petroleum gas and compressed natural gas, pending further work on their impact on the environment. Studies since then have confirmed that those are relatively clean fuels. The Government would like to help to encourage further use of those fuels, and I propose to reduce the duty on them by 15 per cent.

    VED

    We expect emissions of most pollutants from vehicles to fall over the next few years, but emissions of some pollutants may remain at high levels, so the Government now intend to look into ways of using vehicle excise duty to encourage low-emission vehicles. [Interruption.] I am glad that someone welcomes it.

    This year, the tax disc for cars will rise by £5, but I am freezing the rates for lorries for the sixth consecutive year.

    Honest motorists are irritated by tax disc evaders. The Secretary of State for Transport and I are publishing today a revised proposal on continuous licensing, which will make it easier to enforce the collection of vehicle excise duty, but we shall not be requiring licences for vehicles when they are kept off the road. To make sure that the new system does not penalise vintage and classic car enthusiasts, many of whom run their cars on the road only occasionally, we shall be exempting from duty all cars and motor cycles over 25 years old, taking 150,000 historic vehicles out of tax. [Hon. Members: “Well done.”] My parliamentary private secretary is not the only hon. Member who approves of that.

    Gambling

    The national lottery has been an outstanding success and over £1 billion has been raised for good causes over the past year, but its success has affected other parts of the gambling industry in Britain.

    I am satisfied that the industry’s concerns are genuine and I propose to cut general betting duty by 1 per cent. The benefits should be spread between the betting industry and horse and greyhound racing. If satisfactory agreement can be reached quickly, the duty cut can take effect from 1 March.

    The pools companies have also been affected by the success of the national lottery. I propose to reduce pool betting duty by a further 5 per cent. from 3 December on top of a similar cut that I made last year. I am willing to reduce pool betting duty by another 1 per cent. from 5 May, if the pools companies will agree to pass on that extra 1 per cent. equally to the Football Trust and the Foundation for Sport and the Arts. That reduction will help the trust and the foundation to continue their valuable work, and I am sure that it will be welcomed – indeed, it has been – on both sides of the House.

    Tobacco

    In my 1993 Budget, I gave a commitment to raise duty on tobacco by at least 3 per cent. a year in real terms in future Budgets. I thought then that that was the most fair and effective way of backing up health warnings on smoking and I remain convinced of that today. From 6pm this evening, the tax on a packet of 20 cigarettes will increase by 15p, on a packet of small cigars by about 6p and on a 25 g packet of pipe tobacco by about 8p. I intend to freeze duty on hand-rolling tobacco this year because it is proving to be by far the easiest product to smuggle.

    Alcohol

    Next is alcohol. Cross-border shopping and the smuggling of alcohol is a serious problem for the retail drinks industry in Britain and it affects Government revenue, although our total revenue is still rising. Shopping abroad is one of the greater freedoms gained for consumers in the European single market. But smuggling is a crime that we will continue to fight.

    Our duty levels are higher than those of our continental neighbours. Each member state must retain its freedom to set its own tax levels and we accept the downward competitive pressures on tax in a single market. We therefore have to address the legitimate concerns of the British drinks industry, but at the same time minimise losses of revenue that would otherwise have to be raised by other taxes.

    This year I propose to freeze the duty on beer and wine. Tax as a share of the cost of a pint of beer will be the lowest that it has been in this country for more than 20 years.

    There are two changes that I propose to make to other duty rates here at home. Very strong cider is at present under-taxed compared with other drinks and I intend to raise its duty by 8p a pint from next October, without disturbing the rate for ordinary ciders.

    High rates of duty at home have made it difficult for the Scotch whisky industry to press its excellent case for lower duty rates in other countries. Scotch is one of our most important exports. Spirits duty will therefore be reduced by 4 per cent. from 6 pm today. That is equivalent to 27p off a bottle of whisky. [Laughter.] I have just had the last sip of the expensive stuff.

    OTHER TAXES

    Windfall Tax

    I turn now to the utilities. My right hon. Friend the President of the Board of Trade will speak about the regulatory regime that protects consumer interests in his speech in the Budget debate on Thursday. I have been looking at the case for a windfall tax on the utilities. I have been told that it has many splendid qualities. It is a one-off tax, often described as if it hurts nobody. It is claimed that it has no impact on the economy and apparently can be used to pay for up to 10 public spending proposals which cost far in excess of the amount of tax that it actually raises. What a potential pot of gold; an elixir to cure all the ills of some people.

    Of course, a windfall tax is nothing of the kind. It would damage investment and threaten the quality of customer service. It is an illusion that a windfall tax is paid by the company. It is paid by its shareholders, including many small shareholders and pension funds, and it would mean higher future prices for customers. The whole point of privatisation is to benefit consumers, not simply the Exchequer. I have no intention of introducing such a tax. [Interruption.] If that decision is meant to be a help to the Labour party, heaven help it. I do not think that it can make much of that.

    Redundancy Payments

    Let me turn to some other proposals that I do not intend to make. I have no plans and I never did have any plans to change the rules that allow the first £30,000 of redundancy payments to be received free of tax. I also never contemplated any increase in insurance premium tax, nor air passenger duty. Those ideas were inventions of the newspapers that wrote about them.

    Tax law has become too long and complicated. That campaign is certainly well founded. Some experts have described tax law as incomprehensible. The Inland Revenue will shortly be publishing a report on tax simplification. We shall propose that the Revenue tax code is rewritten in plain English – a major task. The House has a duty to set out clear legislation, which in that area we have not done. We in the House will need to look at our procedures, to see how that tax rewrite can be sensibly handled.

    Housing

    The Government’s commitment to home ownership remains as strong as ever. Today there are 16 million homes in the United Kingdom occupied by their owners – 40 per cent. more than when we came to power in 1979. All surveys show that the vast majority of people still want to own their own homes.

    We therefore have a target in our housing White Paper of a further 1.5 million home owners over the next 10 years. I reaffirm that mortgage interest relief will remain unchanged for the lifetime of this Parliament.

    We have already introduced measures for mortgage lenders to make it easier for people with negative equity to move home, and the Finance Bill will pave the way for housing investment trusts, which will encourage investment in private rented housing.

    I have considered very carefully the case urged upon me for special measures to revive the housing market. Many housing experts, sadly and reluctantly, are forced to the same conclusion as I am – that none of the affordable proposals would actually make any difference.

    The problem at the moment is not the cost of house purchase to the purchaser. There have never been such bargains on the market. An average mortgage costs only around £180 per month, far less than renting an equivalent property, and houses are more affordable than they have been for years.

    I remain convinced that what the housing market needs above all is steady growth in the economy and low inflation. That is what this Budget delivers. This Budget will reinforce my ability to keep interest rates and mortgage costs down. That matters most of all to the housing market. All the major lenders expect prices to start to rise next year, and as confidence grows I expect the market to start to move soon.

    DIRECT TAXATION

    I now turn to my proposals for direct taxation. I want to do four things this year. I want to give people more security by ensuring that their needs will be met in old age. I want to help people to have a greater personal share in the prosperity and success of the businesses for which they work. I want to encourage enterprise, particularly small businesses. And I want to allow people to keep more of the money that they earn, or that they save, to spend as they choose, not as the state chooses. That is essential in a modern dynamic economy.

    Long-term Care

    In this Budget I shall be helping people who are earning and people who are saving. But I also want to help the people who have worked and saved all their lives. Some of them may be unfortunate enough to need care in residential or nursing homes in their old age. If they do, they may find their savings eaten away quickly to pay for that care. Of course, that is one of the rainy days for which people save. But the balance between the state paying and the family paying must be right. If it is not, many prudent people will complain that they are being treated unfairly compared with those who were unable or unwilling to save at all.

    To help people who have already put money aside, it was recently decided to exempt from VAT some forms of care provided in someone’s own home. I now have two important further proposals.

    First, I intend to exempt from tax the benefits from a range of insurance policies that provide long-term care benefits. We should encourage, not penalise, people who decide to take more responsibility for themselves.

    Secondly, at present only people with assets worth less than £3,000 are not asked to make any contribution from their capital towards the costs of residential or nursing home care. People with assets worth more than £8,000 receive no financial support from the Government. When applied to care in residential and nursing homes, those limits are far too low.

    From April, and sooner if practicable, we shall more than treble the lower threshold, from £3,000 to £10,000, and double the upper threshold, from £8,000 to £16,000. That means that people in residential care who have worked hard and saved will now keep more of their own money. It will give many elderly people and their families more financial security and greater peace of mind. But we also want to find more ways of helping people who are now in work or recently retired and want to plan ahead to prepare for their old age.

    We shall be consulting shortly on an innovative range of proposals to encourage people to make provision for long-term care. We are studying in particular the concept of so-called partnership schemes. The essence of those schemes will be that individuals who plan ahead to meet a proportion of long-term care costs themselves will be able to retain more of their assets above the £16,000 capital threshold.

    State-funded care will, of course, still be there for all those who need it, but those who have provided for themselves will be able to keep more of their savings. The partnership approach combines state provision for the needy with reward for the thrifty who make provision for themselves.

    In addition, I have asked the Inland Revenue to consult on the possibility of extending to members of occupational pension schemes the option to take a variable pension. That could provide a larger pension in later years, when people are more likely to need long-term care, in exchange for a smaller pension earlier on. For future generations, long-term care will be a growing problem for the finances of many families. The Government have put in a lot of work to put together a package to meet their concerns. We shall now go out and consult and explain our ideas in detail.

    For all retired people living on their savings, the pensioners bonds that I introduced have proved a very popular National Savings product. The House will recall that I introduced them two years ago. I am today announcing that we are reducing the qualifying age for purchases of those bonds from 65 to 60.

    Taken together, this package of measures covering the big problems of savings and long-term care for the elderly is the mark of a Government who care about our elderly, their families and their sense of security. It also shows yet again that we are a Government who look to the long term in all those difficult areas of social policy.

    Employee Share Ownership

    I am proud of our record of wider share ownership, which has seen the number of shareholders in this country treble. There are now 10 million shareholders in Britain. Thanks to our policies, shareholding is no longer a minority interest.

    All the old-fashioned distinctions between employee and employer, between capital and labour, are being broken down in our modern enterprise economy. Most employees understand that their rewards depend on the success of the businesses for which they work. Most businesses believe that the best way to motivate staff is to let them share in the rewards of success. The public’s willingness to embrace and understand those principles has been a major culture change over the past 16 years.

    An important part of that change has been the spread of employee share ownership, which is one of the most attractive features of what has become known as popular capitalism. Holding shares in the company for which they work gives people a stake in the company’s future success. Nobody in the House has advocated the cause of performance-related rewards and employee share ownership more than I have over the years, and I started doing so well before those ideas become fashionable.

    We have two tax-privileged schemes to encourage share ownership for all employees: save-as-you-earn schemes that encourage share ownership through share options linked to savings plans and profit-sharing schemes that allow employees to receive free shares. There are around 1 million people in each scheme. I want to build on those successes by improving both schemes.

    The minimum period for saving under a SAYE scheme will be reduced from five years to three and the minimum contribution will be halved to £5 a month. The holding period under profit-sharing schemes will also be reduced from five to three years. Those changes will increase significantly the attractiveness of those employee share-owning schemes. But I am going to do more.

    In July, I withdrew the tax privileges attaching to some so-called “executive” share options. The overwhelming majority of companies used those options for their more senior employees. I approved of such options so long as they were linked to genuine performance, but I did not see any justification for maintaining their tax privileges.

    The resulting debate brought out the fact that there was a demand for a third type of wider share ownership scheme, to provide a more flexible basis of granting options to lower-paid employees. I am, therefore, introducing a new tax relief that will enable companies to grant options, under a scheme approved by the Inland Revenue, up to a limit of £20,000.

    The conditions for the new relief will be similar to the conditions that applied for the old one. The relief will also be available to schemes in existence at 17 July 1995, which qualified under the old rules subject to the £20,000 limit.

    Those changes go further than ever before in creating a climate in which employee share ownership can become the norm. I hope that companies will offer all their employees, not just their executives, the chance to enjoy the economic benefits and the sense of ownership that shareholding can bring.

    Helping Business

    I have said several times in this speech that the Government’s aim is to turn Britain into the enterprise centre of Europe. [Interruption.] That is where we are going. We are encouraging more innovation, investment and growth. That means allowing people to keep more of the income that they earn, and I shall have more to say about that in a moment. It means encouraging people to save more, to invest more and to build up more personal wealth. It also means helping small businesses. The backbone of our modern, dynamic, successful economy is an active small business sector. Small businesses are the seedcorn of our future prosperity.

    I have some important measures this year to help businesses, and small businesses in particular.

    Business Rates

    First is help with business rates. Many businesses faced lower rates bills following the five-yearly revaluation of rateable values, but many others faced higher bills. To help that group, I announced in last year’s Budget that real terms increases in rates bills would be capped to a maximum of 10 per cent. a year. I have looked at that cap again and I no longer consider it to be low enough. For 1996-97, the maximum real terms increase in rates bills for all businesses will be reduced from 10 per cent. to 7.5 per cent. Small businesses will get extra help. The maximum increase for small properties will be 5 per cent. instead of 7.5 per cent. One million two hundred thousand business properties will benefit from those changes, including 870,000 small properties.

    Capital Gains Tax

    Investment is important for prosperity. Investment depends on capital. We want to reduce taxes on capital to encourage and reward the investment that the millions of people who work for private businesses depend on. We remain committed to abolishing capital gains tax when resources allow.

    The starting point must be help for those who have built up their own businesses and want to be sure that they can sell up and enjoy the rewards of their own hard work in managing the business that they own. Tax relief for the owners of businesses selling up on retirement was substantially increased in 1991 and again in 1993, so that capital gains of up to £1 million now benefit from that relief. This year I am going to extend further the relief for owners who have worked hard and created their own businesses by reducing the qualifying age from 55 to 50.

    That will reward the success of more of those who own and manage their own business. It will increase incentives for those who are going to work in their own business in the future. It is the mark of a Government who back enterprise. [Interruption.] If I repeat it often enough, the Labour party might eventually at least discover how to spell it. At the moment, it is not up to speed on it in any other way.

    Inheritance Tax

    It is not just businesses that create wealth. Thanks to this Government’s policies, ordinary hard-working people have a bigger personal stake in the wealth of this country than ever before. In our property-owning democracy, more and more people have the opportunity to own their own homes, have occupational or personal pensions, invest in TESSAs and PEPs, build up other savings and own shares. Those benefits are now being enjoyed by the many and not just the few.

    Many people who do not consider themselves rich work hard and save for their families throughout their whole lives. They pay their taxes when they work. They want to pass on their family capital without having it taxed again when they die. Many people want to pass on an inheritance to their children and their grandchildren to give them a better start in life than they had. That is a natural instinct in families. Inheritance is now an issue for middle Britain. It is to help middle Britain that we aim to abolish inheritance tax as soon as we can afford to do so.

    It is a myth that inheritance tax is paid only by the very rich. In fact, the very rich are well placed to dispose of their wealth in their own lifetime. Most people hit by inheritance tax are those who would not consider themselves rich at all. These are people who bequeath not much more than the present tax-free allowance of £154,000. They may be people who own their home and a few modest investments. There are many more people like them who fear that their assets will be hit by inheritance tax. I therefore propose to increase the tax-free allowance substantially to £200,000. The number paying inheritance tax will be reduced by one third and only one in 45 estates will now pay that tax.

    Inheritance tax can also have a direct effect on enterprise. A family company, for example, may have to be broken up when the owner dies. We already recognise that problem through the existence of business property relief for qualifying unquoted companies. I now propose to remove the problem altogether by extending 100 per cent. relief to unquoted shareholdings, whatever their size.

    Income Tax

    Finally, I turn to my proposals for income tax payers. In the post-war era, when Britain went into comparative economic decline, Britain had high rates of taxation on income. Those rates damaged the economy and stifled prosperity. We had a tax policy that was based on envy.

    When this Government came to power, the basic rate was 33 per cent. The top rate on earnings was 83 per cent. Rates on so-called unearned income were as high as 98 per cent. There was nothing fair about taxation before we started to make it fairer. During the past 16 years, we have cut the basic rate by around one quarter to 25 per cent. and abolished all rates of income tax above 40 per cent.

    But the income tax burden is about more than just tax rates. Tax allowances matter as well. I propose to increase allowances for married couples and people receiving related allowances by £70, in line with indexation. It is a myth that the tax system penalises marriage and that single people are better off than married couples within the British taxation system. Any young couple contemplating living together and starting a family will pay less tax by getting married.

    As the economy continues to grow and create jobs, more people, as they return to work, will find themselves earning more than the tax threshold. I believe that we should relieve as many of the lower-paid as possible from the burden of income tax. I therefore propose to increase the basic personal allowance by £240 – that is £100 more than indexation. That will provide an incentive to work to those at the bottom of the income scale. More than 200,000 people will be kept out of tax, compared with indexation of allowances.

    People who do not consider themselves rich now find that their incomes may bring them into the top rate of tax. That has a lot to do with the growth of the economy over 16 years and the growth in personal incomes. I do not want more people to be taken into the 40 per cent. band next year. I therefore propose to raise the higher rate threshold by £1,200 – that is £200 more than indexation.

    But in the longer term, of course, we have a clear and achievable goal for income tax – moving to a basic rate of 20 per cent. as soon as we can. This year, I can move much faster towards that goal. I propose to increase the 20 per cent. band by a further £700 – that is £500 more than indexation. That will bring an extra 1 million people into that band. That means that around a quarter of all taxpayers – that is, over 6 million people – will pay tax on their income at just 20 per cent.

    There were many who doubted the credibility of our goal of a 20p basic rate when we first set it out in 1992. We are now making big strides towards achieving it. Some people are even having to resort to trying to outbid us, I discovered in recent debates. But widening the lower rate band is not the only route to 20p. I want to make progress on another front. I therefore also propose to reduce the rate of tax on all savings income for all basic rate taxpayers to just 20 per cent. That will apply to the tax deducted from interest on bank and building society accounts, for example, and it is equivalent to an increase in interest rates for savings income. Around 14 million savers will gain from that tax reduction and they will see the income from their savings increase. As a result of that measure, people will gain an extra £5 from every £100 they receive in interest from their building society account.

    Many of those who benefit will be pensioners, who will gain £75 a year on average. Some could stand to gain £500 a year or more. So, again, those who have earned and saved will be able to keep more of their own money and benefit more from their own money; and the measure is another and decisive step to a 20 per cent. basic rate for all income.

    I propose to reduce the small companies rate of corporation tax to 24 per cent. The reason I am able to reduce the small companies rate of corporation tax is that the small companies rate has for many years been pegged to the basic rate of income tax. My final proposal in this Budget is therefore to reduce the basic rate of income tax by one penny to 24p in the pound. [Interruption.] It is no good laughing. That was the shortest smile, on the face of the hon. Member for Dunfermline, East (Mr. Brown), that I have seen even from him in a very long time, because these three steps – widening the 20p band, a 20p tax rate for savings income and a penny off the basic rate – move us much closer to a 20 per cent. base rate of tax for all income. We have a clear commitment – [Interruption.]

    Mr. Deputy Speaker: Order. The House should listen to the Chancellor.

    Mr. Clarke: We have a clear commitment to the 20p basic rate. We believe in it and we can achieve it. As a result of the measures in this Budget, a married couple with only one earner on average earnings with two children will pay £190 less tax, but overall, their real take-home pay after tax will rise by around £450 next year. They will be £700 a year better off than they were at the time of the last election, and that is extra money for families to spend as they wish.

    My Budgets of the past two years have kept us on the course that we said we would follow. We have cut taxes, we are cutting taxes and, when we can afford it and when it is in the interests of the economy, we will cut taxes again. Good economics is good politics.

    This Budget puts Britain on course to be the enterprise centre of Europe; a Britain that creates more jobs and more wealth in which all can share because business can flourish here in a secure climate of low borrowing, low taxation, deregulation and free trade. That is why this Budget controls overall public spending while shifting more money towards schools, towards hospitals and towards the police. That is why this Budget keeps Government borrowing on a downward path and that is why this Budget cuts taxes. I have achieved that hat trick – controlling spending, downward borrowing and cutting taxes – only because the Government have followed a consistent economic policy.

    Only we, in this House, have clear objectives and we know how to achieve them. We are aiming at borrowing falling to zero; public spending below 40 per cent. of national income; inflation below 2.5 per cent; and a 20 per cent. basic rate of income tax. This Budget puts us on a path to meet all those goals and I commend it to the House.

  • PMQT – 26 October 1995

    Below is the text of Prime Minister’s Question Time from 26th October 1995.


    PRIME MINISTER:

     

    Engagements

    Q1. Mr. Lidington: To ask the Prime Minister if he will list his official engagements for Thursday 26 October.

    The Prime Minister (Mr. John Major): This morning, I presided at a meeting of the Cabinet and had meetings with ministerial colleagues and others. In addition to my duties in the House, I shall be having further meetings later today.

    Mr. Lidington: Will my right hon. Friend take the opportunity to reaffirm his opposition to terrorism and, in doing so, make it his policy to condemn unreservedly the selection by the Labour party in Exeter of a self-confessed terrorist as its candidate? Does not that action illustrate most clearly that the Labour party is utterly unfit for government?

    The Prime Minister: I am wholly opposed to any act of terrorism, and I have no doubt that the majority of people in Exeter will feel the same.

    Mr. Blair: Will the Prime Minister confirm that the changes in housing benefit revealed today will mean that thousands of vulnerable people–pensioners, disabled people and families with young children–will lose help and be confronted with poverty or eviction? How can that possibly be fair? Is it not the clearest evidence of the Conservative party’s lurch to the right and the death of one nation conservatism?

    The Prime Minister: Indeed it is not. My party remains in the centre of politics, and that is where it will always be. The right hon. Gentleman’s outrage is rather artificial because he obviously believes that this morning’s story was a leaked document: in fact, it relates to measures approved by the House last July.

    Mr. Blair: The question is whether the measures are right. If the problem is the soaring housing benefit bill, does the Prime Minister accept that that bill has increased under his Government as a result of Government policy? Housing benefit has increased as housing investment has been slashed.

    If the problem, as was suggested by the Secretary of State for Social Security, is private landlords charging excessive rent, is not it sensible to tackle that problem head-on instead of using vulnerable and innocent tenants as pawns to clear up a mess of the Government’s own making?

    The Prime Minister: The right hon. Gentleman cannot have it both ways. If he had spent one single day in government, he would know that the Government have to take difficult decisions to control expenditure throughout the budget. This is the Labour leader who said that he was in favour of hand-ups, not handouts; this is the party that has said that it wants to take a very radical look at the whole system of social security to try to ensure that money is spent in the best possible way; yet, whatever Labour Members may say about fiscal control, whenever there is a difficult decision to be taken they will oppose it. That is why they will spend on every occasion and tax on every occasion. If they had had their way, public spending would be half national income and tax would be where it was when they left office.

    Mr. Blair: If we had had our way, we would not have slashed housing investment, which has produced the rise in housing benefit. The Prime Minister is perfectly justified in saying that, if there is a problem, it should be tackled. I have given him a specific way of tackling it. Why does not he tackle directly the excessive rents being charged by private landlords rather than make tenants the victims?

    The Prime Minister: I am pleased to see the right hon. Gentleman commit himself–I hope that the whole country heard it–to rent control. That is what the right hon. Gentleman has done–

    Mr. Blair indicated dissent.

    The Prime Minister: Yes, he has–he cannot shake his head. What he has just said is a Labour commitment to rent control–presumably in the private sector, which would mean no more available lettings. Presumably, in the public sector he would hold down rents artificially and push up the amount of borrowing and tax. If the right hon. Gentleman wants to know how to deal with housing and matters of that sort he should look at some of his own boroughs such as Hackney, Lambeth, Tower Hamlets, Greenwich, Southwark and Islington, which among them have 6,000 empty council houses. They are all in good repair and ready to be let out, but none is available because of the chronic inefficiency and stupidity of Labour local authorities.

    Mr. Viggers: Has my right hon. Friend had time today to see the report of the chief inspector of constabulary which, for the first time, includes some national indicators of the performance of the local, county police establishments? Does my right hon. Friend agree that the report contains some useful ideas, including the use of advanced technology, the increased use of community resources and better targeting of resources? Does he agree that that is a matter on which we can assist the police to be more efficient?

    The Prime Minister: Yes, I have no doubt about that. I have not yet seen that report in detail, but I have asked my right hon. and learned Friend the Home Secretary to study it and report to me on its contents.

    Mr. Ashdown: Does the Prime Minister realise that the number of primary school pupils in classes of more than 40 has risen by 30 per cent. in the past year? Does he understand why parents and governors are deeply concerned about that? Does he still believe that class sizes do not matter?

    The Prime Minister: Of course every aspect of education matters, but what matters most is the quality of teaching, which we are seeking to improve. We have introduced a series of measures to do that in recent years, most of which have been visibly and volubly opposed by the right hon. Gentleman and his party.

    Mr. Nicholls: Does my right hon. Friend agree that the assisted places scheme and grammar schools are immensely popular with parents? What conclusions does he think parents should draw from the fact that, although the Labour party is committed to the abolition of the assisted places scheme and grammar schools, 19 out of 24 members of the shadow Cabinet attended grammar schools or exclusive fee-paying schools?

    The Prime Minister: Extending choice and opportunity is central to our education policy–it is what we believe parents want and we are delivering it. The Labour party’s policies are yet another case of double-think: Labour Members go to good schools, but want to abolish them; they send their children to good schools, but want to abolish them. I read that the shadow Cabinet is now going to Templeton college for the weekend–it had better watch out for its future.

     

    Q2. Mr. Gerrard: To ask the Prime Minister if he will list his official engagements for Thursday 26 October.

    The Prime Minister: I refer the hon. Member to the answer I gave some moments ago.

    Mr. Gerrard: How can the Prime Minister justify his earlier answers, which defended housing benefit cuts that will attack some of the most vulnerable and poorest people? Does he believe that they should be forced to make up the short-fall in their rent from money that they need to survive–even using money such as their war pensions? Does it not show the Government’s complete abandonment of any sense of social justice or priority?

    The Prime Minister today attacks poor people, but only two weeks ago he stood at the Tory party conference promising to abolish inheritance tax and capital gains tax.

    The Prime Minister: The cheap insults from the Labour party are becoming increasingly silly. I shall tell the hon. Gentleman something about protecting the vulnerable: low-income families with children have received extra help–now worth more than £1 billion a year–since 1988. Extra help for poor pensioners has increased to £1.2 billion since 1988. In the past two years we have introduced help with child care worth up to £38 per week for the least well-off in work. We have introduced jobseeker’s agreements that are tailored to individual needs and a package of work incentives worth £700 million. All those initiatives are targeted to the people who are most in need in this country. It is about time that the hon. Gentleman saw what is really being done to help those in need and recognised that that sort of help is possible only if Governments resist some other elements of expenditure.

    Mr. David Evans: May I tell my right hon. Friend that, unlike Labour Members, we on this side are totally united behind our leader? Will my right hon. Friend confirm whether in five years at the Dispatch Box he has ever had to bail out one of his Front Bench spokesmen for total incompetence? Is he aware that last Thursday Bambi, the leader of the Labour party, showed the nation on live television what Conservative Members have known for years: Labour Members are all totally incompetent? In other words, they are men of straw.

    The Prime Minister: I am afraid that I do not have the same gift for understatement as my hon. Friend. We all noticed the Leader of the Opposition trying to rescue the shadow Home Secretary last Thursday–and we all noticed that he failed.

     

    Q3. Mr. Watson: To ask the Prime Minister if he will list his official engagements for Thursday 26 October.

    The Prime Minister: I refer the hon. Gentleman to the reply I gave some moments ago.

    Mr. Watson: The Prime Minister will be aware of the recent announcement by the Secretaries of State for Health and for Scotland of the ban on general practitioners prescribing the drug Temazepam in gel-filled capsules. Contrary to the advice of almost all statutory and non-statutory agencies, including the Standing Conference on Drug Abuse and the Scottish drugs forum, the drug remains available in other forms simply to save about £15 million in public expenditure–the cost of prescribing alternatives.

    Does the Prime Minister believe that the loss of young lives, which will continue to occur–particularly in Glasgow, but also in every other major city in the country–as a result of the availability of Temazepam, is a price worth paying for the short-term advantage of the Government’s desperate search for pre-election tax cuts?

    The Prime Minister: The depths to which some Labour Members sometimes sink in their questions helps me to understand why the public have such a low opinion of politicians generally. My right hon. Friend the Secretary of State for Scotland acted on the medical advice that he received and he will continue to do so in the future.

    Sir Ivan Lawrence: Will my right hon. Friend confirm that the proportion of asylum seekers who come to Britain is rising, whereas the number is falling in other European countries? Is that not precisely because this country is not the clapped-out, impoverished nation that the Labour party pretends it is? Is it not time to strengthen our protection against those who have no right to be in this country?

    The Prime Minister: My hon. and learned Friend is right about the proportion of asylum seekers in this country. Other countries have tightened their asylum procedures and we think that we should re-examine them as well. However, some of the stories that I have seen in the last 24 hours and some of the comments that I have heard from Opposition Front Bench spokesmen are entirely absurd. They are inaccurate and misleading and they would better not have been made. There is no doubt that we will honour our United Nations convention obligations and there is no doubt that claims will be considered individually. I hope that the activities of the shadow Home Secretary have not raised too many fears.

     

    Q4. Mr. Winnick: To ask the Prime Minister if he will list his official engagements for Thursday 26 October.

    The Prime Minister: I refer the hon. Gentleman to the reply I gave some moments ago.

    Mr. Winnick: Can the Prime Minister explain the purpose of setting up the Nolan committee if one of its main recommendations–the disclosure of outside financial interests–is rubbished and rejected by Tory Members of Parliament? Does not the Prime Minister understand that the general public will contrast the rejection of the Nolan committee’s very important recommendation with the way in which Tory Members of Parliament vote time and again to undermine the position of the poorest people in our society?

    The Prime Minister: As I told the hon. Member for Walthamstow (Mr. Gerrard), we set out innumerable ways–and I will give the hon. Gentleman a much longer list if he wishes–of helping people in great need in this country, and that will continue to be the case. The Nolan committee was established to report to the House and did so. A Select Committee is considering its report, and we will consider and vote on the Select Committee’s report shortly.

    Mr. Nicholas Winterton: Having known Sir John Templeton well for many years, and having attended the launch of the Templeton college in Oxford, I share my right hon. Friend’s sentiments about the dangers of a visit by Labour Members to that college. Does not my right hon. Friend think it extraordinary that the Labour party should accuse the Conservative party of being uncaring when, with unemployment dropping in this country — unlike in most other countries in Europe– we are increasing our social security year by year? Is that the sign of an uncaring Government?

    The Prime Minister: My hon. Friend makes his point most forcefully. Unemployment has dropped more dramatically here than in any other major country of western Europe. Unemployment is also below the level of other countries and our degree of social security protection is above it. As my hon. Friend said, Templeton college is a centre of excellence. Therefore, with this Labour party, it must be in danger.

  • Mr Major’s Speech to the Institute of Civil Engineers – 17 July 1995

    Below is the text of Mr Major’s speech to the Institute of Civil Engineers, made in London on Monday 17th July 1995.


    PRIME MINISTER:

    Well Nick, thank you very much indeed and thank you for inviting me this evening. I apologise for being a few moments late and for leaving pretty rapidly when I have finished speaking to you. I am afraid other events some way beyond our shores have been capturing my attention today, and will do later on this evening and I am sure you will understand that.

    Nonetheless, I wanted to take the opportunity of coning here this evening to talk to an audience both concerned with, and involved in, manufacturing and construction. And I do that for the reason that Nick set out. There is no doubt in my mind that Britain’s prosperity depends upon the success of our industries today and in particular our manufacturing industries.

    I don’t take the view prevalent in some quarters that manufacturing is of secondary importance, I think it is of primary importance. I dislike it intensely when I pick up things in the shops that say made somewhere else, when I believe it should be made here, and I dislike intensely being abroad and finding things not with a Made in Britain label. Nothing has given me greatest pleasure in the last few months than the truly remarkable performance of our exporting industries, not least our manufacturing exporting industries.

    So I will turn to some of the points that Charles Gallagher made on housing in a short while, but what I would like to do is to start by saying a word or two about how wider economic policy impacts upon manufacturing, and then of course upon home building, road building and the other sections of the construction industry.

    I know that the last few years have not been very easy for many people in industry. Some were hit by the roller coaster on which the British economy rode in the late 1980s and at the beginning of the early 1990s. A roller coaster, if I may say, is something that we have seen all too often in the period since the Second World War. And I know the difficulties that many people have faced.

    But I would like to test upon you an instinct that I have. Ever since I was a small boy growing up, I have seen the British economy in boom and bust, boom and bust, boom and bust, as it has ridden that sort of roller coaster. And I have to say to you that I don’t believe during those years we have gained as a result of that, I don’t believe we have gained because of artificial stimulus and then coming out of the boom and into a low.

    What I wish to see, and what economic policy is geared to, and this is partly why things have been held so steady after the last few years, with the reward still to come, is a position in where we have low inflation and steady growth, not for 1 or 2 or 3 years, but as a continuum year, after year, after year, to [indistinct] the right sort of backcloth against which we can get the right sort of investment to ensure that British manufacturing industry is profitable, not just in cycles but continually. So my overriding economic concern has been to put an end to the sort of boom and bust cycle which in my judgment has bedevilled our country for decades. And it is because of that, it is now I think widely acknowledged, that hidden behind the pain of the recession and the turmoil of politics, the underlying health of the British economy has made very remarkable strides over the last few years.

    And I think it is just worthwhile setting out some of those changes. We hear so much, we read so much, about the things that are wrong and the things that need to be done. It isn’t a bad idea occasionally just to take an audit of the things that have been done and the things that are going right.

    We now have the fastest growing economy of all the major companies in Europe and there is every sign that that is likely to continue – the highest growth last year, perhaps this year, and continued growth at trend or above trend rate in the year after that. Total industrial production up by more than 3.5 percent in the last year and is now at record levels, above the levels at the height of the boom in the late 1980s. Not, I know, a perception, but in fact the reality.

    Unemployment in this country has fallen by two-thirds of a million since 1992. No other country in Europe has begun to approach that level of reduction in unemployment and we now have one of the lowest unemployment rates anywhere in Europe and in many countries beyond it.

    Manufacturing productivity has grown steadily throughout the 1990s, up a further 3 percent in the last year. The CBI report showed that export orders were at their highest levels for 18 years. And about 9 months out of the last 14 or so we have seen new record levels set for exports. Exports in the three months to April were no less than 9.5 percent higher than the year before, and in the same period imports grew just by 2.5 percent.

    There aren’t many people sitting in this room who can remember when last we had that set of economic circumstances. It may just sound like a statistic to say that exports are up, but it means manufactures are up, it means people are in work, it means the cotton mills are spinning, it means we are actually making things that people are prepared to buy at the price at which we are selling them. And we are now in the United Kingdom hugely competitive.

    And that hasn’t happened by magic, it hasn’t happened by the government retreating and saying well we will just wait and see what happens. It has happened because we have taken decisions, a lot of them very unpopular, some of them Charles mentioned, but decisions that were necessary to close the fiscal gap and make sure that we had a disinflationary economic scenario.

    Manufacturing investment rising, up by another 8 percent in the last year. Research and development, crucial in the 1990s and the next decade to make sure that we stay ahead of all of our competitors, research and development spending by companies grew faster here in the United Kingdom last year than it did in the United States, in Germany or in Japan. And again I ask the question – who last can remember when we had that set of circumstances to improve our prospects for the future. And this improvement in the fundamentals is only now just beginning to feed through into living standards. The average household will probably be around 5 pounds a week better off this year, a modest beginning, but it is now beginning to feed through.

    And the biggest thing I believe that bothers the housing market that Charles was talking about are not individual measures but the impact upon confidence generally as a result of a world recession that impacted particularly badly in the south and east of the United Kingdom where people were most heavily borrowed. And that will take time to settle down but it is crucial that that returns both for the short term and the medium term.

    But what is most important about the fact that living standards are starting to rise and that consumer spending is starting to rise, is the result that that will have in economic growth. Because the fact is that the rise in living standards and the rise in consumer spending, which is likely to follow, if on this occasion the result of economic growth and not the cause of economic growth. Time after time in the past we poured out resources in order to create the economic growth artificially by spending, instead of letting the economy grow and generate the resources for growth. But because we have done it that way round on this occasion we have the best possible prospect of sustained low inflation growth for years to come that we have had for any time that I can remember.

    Now all of the industries, not just the relatively wide span of industries represented here, all industries now face the best economic climate that we have seen in this country for three decades, and I think that is something that should make us both optimistic and proud of what has been achieved.

    Let me say something about a core part of that – getting inflation down. Yes, it was painful. There were many who argued against the high interest rates that were vital if we were to conquer rising prices. But I thought they were right, the government stood their ground, and as a result both inflation and interest rates are now down to levels that we haven’t seen for very many years. In the short term both those in industry and home owners may feel that they benefit from rising inflation, debt can be paid off more quickly and house prices soar. And industrialists and home owners, both almost by definition large borrowers couldn’t be expected to welcome the higher interest rates needed to bring inflation down.

    But they are essentially short term views. On any longer term view they are precisely the groups who actually have most to gain from a continuing low inflation world. Companies need a predictable economic environment if they are to plan ahead with any confidence. Inflation undermines that right across the board, it erodes competitiveness with low inflation countries overseas. If we had let inflation run we wouldn’t have had these record exports, not a chance that we would have had those record exports. And it also of course confuses market signals so that companies can’t tell whether a rise in prices reflects an increasing demand or simply an excessive growth in the money supply. And it encourages wage demands which bear no relationship whatsoever to productivity improvements. And how many times in the last 50 years did we pass through that cycle to the damage overall of our future prospects?

    We are not going to go through that again. I know it has been painful to get inflation down but we have got it down, and we are keeping it down. And I would suggest to you this evening that industry has a real interest in keeping inflation under lock and key.

    And the prospect of long term economic stability also offers a very great deal to those who are investing a large proportion of their lifetime’s savings over 20 years or more in one asset, namely their house. Because keeping inflation low is the only means of ensuring that interest rates stay low as well. And they of course are an important component part of the housing market. If you were to look today at that vital nexus between interest rates, net disposable income and house prices, you would find that it was more favourable to buy a home at the moment than it has been at any time for the last 20 or 30 years.

    So the problem is not the capacity to buy, the problem is the confidence factor that people are waiting to be certain that unemployment is on a downward trend and that the prospects for the future are rosier than many people feared after the recession through which we have passed.

    If you took, for example, a home owner on an average mortgage, payments are now over 130 pounds a month less than they were when interest rates peaked just over 5 years ago, and that dwarfs any other changes in the capacity for people to buy that people normally talk about.

    Let me say a word about competitiveness. We need to ensure sustained growth, and there is only one way we can be certain of doing that, and that is by improving our competitiveness as a nation. That will deliver better living standards to all, it will increase employment and it will encourage [inaudible]. And to set out our determination to do that by setting out two White Papers in the last couple of years, not talking in generalities but talking specifically about what we seek to do and measuring what we need to do to improve the competitiveness of British industry. We made more than 300 detailed commitments in the first of those and now we are making dramatic progress in delivering them.

    Let me turn to the construction industry particularly. The key elements, as I have sought to set out, of the best economic outlook are now in place. But the element that I return to that is missing, is confidence, and I want to return to the way we are tackling that in a moment. But let me turn next to some broader issues affecting the future of the construction industry.

    That industry is beyond a doubt one of the great industrial sectors of our country, it provides nearly half of all our industrial investment, it is the biggest employer in Britain and it is crucial to our export prospects. In a quite literal sense, Britain’s future is being built by your industry day after day. So I don’t need any persuading whatsoever of the importance of the construction industry to UK plc. And I share the disappointment that you will have had that figures published in recent days show that many of the difficulties of the recession haven’t yet been put as firmly behind that industry as they have in other sectors of the economy.

    And let me add that whatever may have been the perceptions of some in the 1980s, we have a very strong commitment to make sure that British industry succeeds both here and around the world. To put it at its bluntest, when it comes to exports, I am less interested in laissez faire than in winning the contracts abroad, and we have changed government policy both in the Department of Trade and Industry, and in the Foreign Office, to make sure that that happens and it has made a material difference to Britain’s capacity to win orders in some of the toughest markets of the world. And that is a permanent change, that is going to continue. I want to see British exporting industry win markets overseas and we will take the detailed government decisions to make sure that we assist them in doing so.

    So what in practical terms can the government do, in addition to what is already being done, to help ensure that happens? Let me turn to some of those areas. Certainly we can help with education and training, so vital to an industry that has long since moved away from the idea that workers can be recruited off the nearest street corner.

    Earlier this month – to the dismay of our political components – I merged together the Department of Education and the Department of Employment. Some people said well it just shows that the wicked Tories don’t care about the unemployed. It actually shows precisely the reverse, it shows that we are more concerned than anybody else to make sure that those people who are unemployed have the opportunity and the training, not just once but right the way through life, to get themselves back into permanent employment.

    The aim of that merger was to give Britain a head start in the field that will determine competitiveness in the next millennium, and that field is lifetime learning for people who are unemployed. We cannot any longer afford to think that people stop learning in their teens or their early 20s, we need to make sure that they have access to the right skills right across their adult lifetime. At the specific request of this industry we have retained the statutory underpinning of the Construction Industry Training Board, and that is playing a full part in training and enterprise councils.

    And it is also playing a part, I am delighted to say, in the development of the new modern apprenticeships that we have been floating over the last couple of years or so. And we are determined to make sure that the needs of industry are not just an optional extra in our education system, but are increasingly the driving force that underpins our education system. It is not good enough for us to say that our education system is as good as this country or that country or some other country, what we need to make sure is that our education system and our training system is as good as any other country, not just a random selection of countries.

    Neither is it any good for us just to say well we can compete with France or Germany. Indeed we can, we complete hugely successfully with France and Germany at the moment. But only half our market is in the European Union, the other half is in the wider world and we have to compete with the United States, with Japan, with the Pacific Basin and with Latin America as well. And so those points on education and training are even more valid in every aspect.

    Then of course we can deal with an ugly word, but a real concept – deregulation. We can strip some of the burden of red tape from industry’s shoulders. In 1991 we changed the building regulations to make them less detailed and prescriptive. The introduction of development plans which will be in place in most areas by the end of year should produce more consistent quicker planning decisions and fewer appeals, both I think are of particular importance to the construction industry.

    I have no doubt that there is a great deal more that can be done in that direction, we are seeking to do it and I am open to hear from industrialists such as you precisely the areas where it is most important for us to look at and to make changes. Because the intention is to make sure that government helps, and not hinders, the competitiveness of British industry.

    In the Government changes a few days ago, Michael Heseltine took with him responsibility for competitiveness and deregulation, responsibility he had before and took with him to his new position, so I can tell you that both the Prime Minister and the First Secretary are determined to see those issues at the top of the Government’s agenda and we do not intend that any jobsworth official will be able to defend a piece of unnecessary red tape that we believe can usefully go, so I offer you tonight this invitation through your industry representatives.

    If you see areas that you think are unnecessary, that we can get rid of because they cause a great deal of hindrance and very little help, the offer is there: tell us where it is and we will examine whether we can do anything about it. I can’t offer you a blanket promise that we will but if you have got a good case, then you have got a very realistic chance of seeing that burden removed.

    Let me say a word about capital expenditure because I am well aware of the importance of Government expenditure to the construction industry.

    There will be people who will say that the best help the Government can provide is through plenty of public sector construction work and of course for some people, however much of your money we spend on construction projects, it will never be enough but we have what by any standards is a pretty substantial capital spending programme under way. In the next three years, we will spend over £5,000 million on road-building, a programme doubled in real terms – a dreadful jargon phrase but we all understand what it means in this room – since 1979. £4 billion a year through the Housing Corporation, a figure which rises to £6.5 billion if you include private finance. Housing Corporation spending support has risen by 40% over the last five years. Overall this year, net public sector capital spending is expected to be around £22,000 million and in addition to that of course there is the Private Finance Initiative which has now sunk roots and is beginning to expand and that offers the private sector in general and certainly the construction industry in particular dramatic new opportunities. It should mean that year after year more capital projects begin than would ever previously have been affordable under the old Treasury rules.

    We are now beginning to see some progress being made: the international passenger station at Ashford and the Heathrow Express are already under construction; competition for the Channel Tunnel rail link is well under way; contracts are in the final stage of negotiation for the construction of two new prisons; and private finance is already contributing over £1.8 billion a year to housing associations.

    That, of course, is the Private Finance Initiative still in its infancy. I know that some people have been concerned that it has been slow to get off the ground and I certainly would have preferred it to have moved more speedily myself. I suspect that is inevitable with any significant departure from previous policy but it is nonetheless important to me and I know to you that the benefits of the Private Finance Initiative should be felt as rapidly as possible. I can certainly tell you today that we are looking at the Private Finance Initiative, it is under constant review and I am open to examine any suggestions that further measures may be needed to accelerate projects brought forward under the new rules.

    There is also, of course, a new source of spending, one that had perhaps been underestimated and that is the tremendous sums now being released by the national lottery for good causes, a large proportion of which will end up on construction projects. When the lottery is in full flood, as it will be very shortly, in a year or so, it will be spending something like £1.8 billion a year and a very significant part of that will also be on construction and whether that is a small-scale scheme such as the construction of new village halls and community facilities or large prestige projects such as new sports stadiums or national monuments to mark the millennium, I expect that lottery funds will keep a sizeable slice of the British construction industry in work for some years to come. Those funds, like the Private Finance Initiative, are only now beginning to come on-stream but by the end of this decade I expect they will be a very significant part of the construction scene as a whole.

    Let me say a word about the report by Michael Latham. I think it was a splendid report. Government can help the industry I think by throwing our support behind the programme of change for the construction industry that Michael Latham identified a year or so ago. When I read his report, it seemed to me that his prescriptions rested upon one very profound truth: the success of this industry, like all others, ultimately depends upon satisfying the customer and the culture of conflict, claim, counter-claim which has been ingrained for so long will not give the client what he wants nor encourage him to build more often.

    Michael Latham addressed that point and he offered a new vision for the construction industry based on teamwork but he also gave us a vision for the future, not a magic wand for the present. His suggestions will require determination and commitment from the industry to change on the scale that the car industry has already changed. It is of course important that they do so and it is of course for the industry to consider such changes, not for the Government to impose them but I don’t have very much doubt that the industry will take up the challenge of improving its performance that Michael Latham threw down and we know from survey upon survey that there is a wide spread of capability in British industry.

    It is vital that the best practice be spread more widely and that can be influenced directly by setting higher quality standards in supply chains. Michael Latham asked the Government to do two things: the first was to become best-practice clients of the industry; I accept that goal. I have asked the Efficiency Unit under Peter Levine to carry out a scrutiny of our construction procurement to that end and I expect to see the results of that very soon. In the meantime, we published a White Paper called “Setting New Standards” which spells out what we see as best practice and the principles which will guide us in our construction procurement.

    Secondly, Michael Latham asked us to legislate to deal with abuses of current contractual arrangements, to provide for quicker dispute resolution and greater security of payments. I am certainly prepared in principle to do that but in order to do so we need to find practical options which command broad support within the industry and its clients. With your help we will get that and then I will be prepared to take action.

    Let me return for a few moments to support for exports. We can provide support in the area of export promotion. Last year, the construction industry alone reported export orders totalling around £7 billion. During this year, Department of Environment ministers will lead ten trade missions to fifteen countries, Russia to Lebanon, from Vietnam to South America. We set up an Export Promotion Initiative; under this, 124 secondees from British industry, including a number from the construction industry, have been drafted into the Government and their aim is to make sure that we are as effective as possible to both fostering and promoting British exports.

    You know better than I do from day-to-day experience that world markets are fiercely competitive at present. It is important that our exporters should know that the Government will help them as vigorously as they can and I am determined to ensure that that is precisely what we do.

    Let me add a word about one of the highest-profile aspects of industrial investment going on in Britain today. I spoke of it in private to the Conservative 1922 Committee of back-benchers last week and I am happy to speak about it publicly today and that is the development of the information super highway.

    I say “high profile” because you can hardly walk down a street in Britain today without tripping over some member of the construction industry installing new cables. We are now in a different age, an information age. It is quite literally a third Industrial Revolution; it affects every business. Exploiting its potential is vital for the maintenance of our competitiveness both short-term and long-term and because Britain was one of the first countries in the world to privatise and liberalise its information and telecommunications industries, we are now one of the world’s leaders in the field. The cable industry alone is in investing £10 billion and every penny of this £10 billion is private money, every penny is a vote of confidence in the future of this country and of its industries and increasingly, major commercial and industrial developments will expect and require built-in cabling facilities just as automatically as they would expect to be connected up to the electricity and the water supplies. Our political opponents, who opposed deregulation every step of the way, have recently stumbled across the idea of the information super highway, they even claim to have embraced high technology.

    Well I have to say it is not evident in what they do. Their approach remains as mired in the steam age as ever as we move forward to the information super highway age.

    Let me illustrate why I say that. They want state direction of this development, they want Government guidance for investment, they want to create a monopoly. I only have to ask you what would have happened in the past in those circumstances. What would have happened if investment in building up the railways during the first industrial revolution had had to wait for Government guidance? We wouldn’t have had an Industrial Revolution and I very much doubt that we would have had any railways either. And what would happened if the state had imposed a monopoly at the time on the invention of the printing press? We might have had one newspaper so I suppose it wouldn’t have been wholly bad! It certainly has a modicum of appeal after the last two or three years, dependent of course upon which particular newspaper it is that would have survived but it would of course like most monopolies have stifled creativity, limited access and as ever driven up prices, no good for the country, no good for competitiveness and of course, the same thought applies today. The route forward for new industries, as for old, is not for Government to dictate, still less to permit monopolies. Our job is to create the conditions for private enterprise to flourish and then to let private enterprise get on with it and that is the role and the ambition that I have for the private sector.

    Let me turn back to the housing market and home ownership, a subject as Charles Gallagher said, of some concern to this audience but let me make it immediately clear in the light of what Charles said that the Conservative Party is and as far as I am concerned always will be the party of home ownership and what is more, the only party that cares truly about home ownership in this country.

    Over the past sixteen years, I think we have given evident illustration of that. It was the Conservative Party that promoted home ownership, the Conservative Party that actually sold off local authority houses, the Conservative Party that was opposed by both our main political opponents on each and every occasion that we developed those particular policies. That was the position in the past and however the surface oratory might have changed elsewhere, the gut instincts most certainly haven’t and so for us a strong and steady expansion in home ownership isn’t simply a welcome offshoot of rising living standards; it is at the very core of what the Conservative Party is about and of our vision of the sort of society that we wish to create. That has always been our position. We believe in ownership, we believe in security, we believe particularly in home ownership for the security and freedom of choice that it actually offers to the individuals and that is why we have consistently promoted it. Since 1979, the number of home-owners has increased by four million and more than 1.5 million of those were council house tenants exercising the right to buy so there shouldn’t be a shred of doubt about the overall commitment of the Conservative Party to home ownership both in the short-term or the long-term, it is [indistinct] of our bone and sunk deep in our marrow and that is not going to change.

    58% of households in this country are now owner-occupied, one of the highest proportions in Europe and we have made pretty dramatic progress but I agree with the survey that Charles referred to there that still remains a great untapped demand for home ownership. Surveys show four out of five would want to own their own homes; perhaps in ten years’ time, that may have gone up but certainly in all age groups the desire instinctively of young people today is not to go and live in a house owned by someone else but to be able to purchase a house that they own themselves, that they can decorate themselves, that they can live in and know that it is theirs both for the short- and the long-term and that is intrinsic and that was why in our White Paper last month we sat out a clear target, a further 1.5 million home-owners within the next ten years.

    Many of the ways of achieving that will simply come from the stability of economic circumstances, from that nexus I spoke of earlier of keeping interest rates down low so that people actually find themselves in a position to be able to buy. If we hadn’t closed the fiscal gap, including the painful decision of reducing mortgage interest relief a little, what do you think would have happened to interest rates? Would we have managed to get them to come down or would they have gone back up towards 15%, the lingering impact of which is one of the things that have caused most concern to the housing market?

    What I am seeking to do is deliver the circumstances not just to generate a little extra housing activity in the short-term but provide the right sort of circumstances for the housing market to return to being what it always has been, a central aspiration for people in this country and moreover with the right economic circumstances, an affordable central aspiration for the people in this country.

    There are some things we can do to give it a push. For example, the new housing association properties will automatically be available for sale to tenants on request and the resources will be available to put back into new construction in terms of it being recycled. One gets two bonuses for the price of one – the home-owner actually begins to own his own home and the housing associations have resources that would not otherwise be available for reinvestment in bricks and mortar and new building.

    We are looking at new options to bring private finance and owner occupation right into the heart of those great big social housing estates, areas that would benefit enormously from the initiative and dynamism of the private sector and also the social stability that would come from mixed occupation.

    There are a range of options that we are looking at because I care not just for the wider economic reasons but for the philosophical reason I set out a few moments ago to ensure that those people in this country who wish to become home-owners have the opportunity of becoming home-owners.

    Of course, the general condition of the housing market is of concern to people, it is of concern to me but I doubt there is anyone here who would want to go back to the unsustainable and frankly illusory world of rampant house price inflation which we saw briefly in the late 1980s. I remember very well those circumstances and I remember meeting audiences like this audience which said to me on that occasion: “House prices are going up so fast that at the bottom end of the market young people can no longer afford to get into the market and that will have a ripple effect up the market over a period of time!”.

    Let us not forget the problem that is being solved by keeping down inflation and the right sort of economic judgements for the future because it is, as I indicated earlier, more favourable now to purchase a home than it has been for a very long time but on the other hand, aside from that rampant and rather absurd circumstance that existed briefly in the 1980s, a strong but not overexcited housing market is an important part of a balanced economy, as Charles indicated earlier.

    We have been giving serious consideration in Government to a wide variety of proposals that have been put to us on how we can halt the housing market grow. The proposal that Charles made is one of the proposals that we are looking at along with others. We haven’t yet decided which action would be appropriate from Central Government or what action could be effective and that is the judgement that we have to make. I am not interested in a judgement that will achieve short-term applause in the press and the media and elsewhere but bring long-term problems. I am not interested in something that will bring short-term applause but actually will have no real practical effect on what happens. I want to decide what is going to be effective before I decide what it is the Government might be able to do so you cannot expect me to go into detail about what options might or might not come to be in the future but perhaps I can set out for you some of the principles which are guiding us as we examine this matter.

    First, we have to recognise that the main issue is confidence about future capital values, not current affordability. I have no doubt whatever that houses are a very good buy at present levels of prices and interest rates; with the number of households continuing to grow, houses will be a sound investment over a five or a ten-year time-scale but confidence in that is not reflected in the market and nothing will induce people to commit their capital until that perception is changed and so we need to test any proposal against whether it is likely to change that perception and so stimulate the housing market. That is the acid test that we will have to provide in Government.

    Second, let me say we are not an interventionist government by instinct or by philosophy, we are not permanently searching for excuses to interfere in the private sector. The case for a specific intervention would therefore need to be very powerful in order to persuade us.

    Thirdly, we believe that the best help we can provide to the housing market is by keeping interest rates as low as possible and once people have confidence in that they will not have the lack of confidence that comes from believing their mortgage is going to be at some level this year but half as high again eighteen months on and so they are discouraged from taking on the commitment so keeping stability and interest rates at a low level is an important component in restoring confidence to the housing market and that means we must stick to our fiscal target of continuing to reduce Government borrowing. We are not therefore in the business of taking any action which could only be afforded by jeopardising our attainment of that target.

    Let me say a word about the housing market as a whole. Britain’s housing market is worth about £750 billion pounds. That is around two-and-a-half times the total amount of money which Government spends each and every year so there are, to say the least, serious limits on the amount of leverage which Government action can exercise over the housing market. We would need to be persuaded that any resources we did commit would have an appreciable effect.

    Let me stress again that we are looking at options but that no final decisions have yet been taken on them but I would be misleading you if I gave you the impression that I thought there was an easy way. I think anyone would be misleading you if they gave you the impression there was an easy way for the Government co change perceptions about long-term housing values. There isn’t. It will change I am confident because of that innate desire for home ownership but it cannot easily be changed by a single fiscal amendment.

    Let me, however, mention one particular issue in conclusion, one that Charles touches upon. Some people assume that the reductions we made in mortgage interest relief in 1993 indicated that we had a long-term objective to eliminate mortgage interest relief altogether so let me make the position about that entirely clear.

    The reductions in MIRAS were a necessary part of an overall package of tax increases needed to bring Government borrowing back under control. Without those tax increases, Britain’s fiscal position would have deteriorated, driving interest rates and of course mortgage rates far higher than they went so my attitude towards every part of those tax increases was the same: all of them were necessary and none of them were desirable and we have made clear that we will not further reduce MIRAS though it is too soon to make binding pledges up or down beyond that. That is a matter for budgets and manifestos but certainly there will be no further change in the present Parliament.

    Let me add something to that. I am very well aware of the symbolic value of mortgage interest relief at source. I know there are a number of groups, including I dare say this audience tonight, who support it and I can tell you tonight we don’t have any present plans to eliminate it as I tried to set out for you over the last few moments.

    Our philosophical aim is clear: instinctively and by training we are committed to private ownership. No part of private ownership is more important to the individual and his or her family than the ownership of his or her home. The commitment therefore to home ownership is rock solid and central to the philosophy of my party, to my instincts and that will remain so both in the short-term and the long-term.

    Let me just summarise something about some of the things I have been saying to you:

    It is ultimately the imagination, the creativity and the dynamism of the private sector – not the public sector – that will determine the future prosperity of this nation and in that dynamism and in that future prosperity a vital role will be played by the manufacturing and the construction industries. That will not just be true this year and next year; it will be true when we go right through into the next millennium and far beyond it. I am sometimes accused of being a romantic in some respects, certainly in terms of seeing the “Made in Britain” label – I would agree with that; certainly in terms of believing that we are entering into a new Industrial Revolution and the construction industry and manufacturing industry have a key role to play in that revolution. Again, I would admit to that particular label. Unless we succeed in those industries, the economy as a whole will not succeed; unless we succeed in the economy as a whole, we will not lever up the increased living standards that I believe are imperative for this country.

    The economic policy that we have embarked upon and the stability and economic growth that it looks as though we have established will do nothing less than double the living standards of every British family in the next twenty years. Twenty years – if I may say with respect looking round the audience – many of you can remember back twenty years without a great degree of difficulty. What I invite you to do tonight is to bear in mind that this stability of economic growth that we have put in train will double from its present position living standards over the next twenty years. That is going to have its implications not just in a narrow sense but in a wide sense – on the country as a whole, on the manufacturing industry, on the construction industry and on each and every family. That is what we are committed to and I can promise you we shall continue with those policies. I want your industries to succeed and as far as we are able to – for we will not always be able to deliver precisely what you would ask of us – we will give to you full, active and continuing support in your endeavours in those industries; they are vital to us. You deserve our support and you will have it.

  • PMQT – 15 June 1995

    Below is the text of Prime Minister’s Question Time from 15th June 1995. Tony Newton responded on behalf of John Major.


    PRIME MINISTER:

     

    Engagements

    Q1. Mr. Mans: To ask the Prime Minister if he will list his official engagements for Thursday 15 June.

    The Lord President of the Council and Leader of the House of Commons (Mr. Tony Newton): I have been asked to reply.

    My right hon. Friend the Prime Minister is currently in Canada attending the G7 conference.

    Mr. Mans: Does my right hon. Friend agree that the release of the remaining members of the Welch Fusiliers and of the RAF flight lieutenant by the Bosnian Serbs shows clearly that the Government’s robust response to the taking of the hostages was the right one? Does he further agree that we now have an opportunity to reassess how our diplomatic and military efforts in Bosnia can best be taken forward?

    Mr. Newton: The whole House will want to join in my hon. Friend’s welcome of the release of nearly all of the remaining hostages, including the British ones, and it is essential in our view that the other 26 are released immediately. My hon. Friend was right to say that the Government’s policy has been vindicated. Indeed, by standing firm, the whole international community has shown that it will not submit to blackmail and terrorism of that kind. I share the view implicit in my hon. Friend’s remarks that it is vital that we redouble our efforts to achieve a negotiated settlement.

    Mr. Prescott: Does the Leader of the House think that it is really wise for the Prime Minister to be out of the country at this time?

    Mr. Newton: At a time when it is widely acknowledged throughout the international community that this country’s economic performance in growth, increasing investment, improving our trade performance, keeping inflation down and reducing unemployment makes it a world leader in that respect, it is quite right that my right hon. Friend should be sharing our experience with our partners in the G7.

    Mr. Prescott: With Baroness Thatcher making it clear that the Prime Minister is not up to the job, the President of the Board of Trade professing loyalty while preparing to take over the Prime Minister’s job and the Chancellor attacking his Tory critics as right-wing xenophobes, is not it obvious that the Tory party is in a state of civil war and, like the Prime Minister, is clearly unfit to govern this country?

    Mr. Newton: If the right hon. Gentleman believes that–against the background of the account of our successful economic policies which I have just given–he will believe anything. He might also explain why his right hon. Friend the Leader of the Opposition took the risk of letting him ask questions from the Dispatch Box today.

    [Interruption.]

    Madam Speaker: Order.

     

    Q2. Mr. Barry Field: To ask the Prime Minister if he will list his official engagements for Thursday 15 June.

    Mr. Newton: I have been asked to reply.

    I refer my hon. Friend to the answer I gave some moments ago.

    Mr. Field: Does my right hon. Friend agree that the Government’s trade union reforms reintroduced democracy into the Labour movement? Will he therefore ask the committee considering the Nolan report whether the 165 Members of the parliamentary Labour party who are sponsored by trade unions will resign if the long-overdue reform of the trade union block vote does not go ahead? In particular, if the Transport and General Workers Union gives that reform the order of the sharp elbow, will the Leader of the Opposition sever all his links with that union?

    Mr. Newton: I am not quite in a position to give my hon. Friend the assurance that he seeks because the committee to which he refers has not yet met and, therefore, has not made a decision about who should be its chairman. In one way or another, however, I will ensure that my hon. Friend’s request is drawn to the committee’s attention. No doubt the right hon. Member for Kingston upon Hull, East (Mr. Prescott) will draw the second half of my hon. Friend’s question to the attention of his right hon. Friend, the Leader of the Opposition.

    Mr. Ashdown: Is not it absolutely clear from the Chancellor of the Exchequer’s statement last night that, when it comes to a policy on inflation, the Government’s policy is very clear–a target is a target, but only so long as it does not get in the way of a tax cut?

    Mr. Newton: What is clear from my right hon. and learned Friend’s speech last night is that the Government’s commitment to low inflation remains absolutely unshakeable and clear and that the commitment to low inflation is part of a range of policies, which I have already described and which will make it possible for us to consider tax cuts in due course when it is appropriate and responsible to do so.

     

    Q3. Mr. Heald: To ask the Prime Minister if he will list his official engagements for Thursday 15 June.

    Mr. Newton: I have been asked to reply.

    I refer my hon. Friend to the answer I gave some moments ago.

    Mr. Heald: Will my right hon. Friend join me in welcoming this week’s further fall in unemployment, which is down for the 21st month in a row and down 500,000 in the past two years? Does he agree that it is not coincidence, but the result of the Government’s policies and that if we had a guaranteed minimum wage as the Labour party suggests–it is no good the right hon. Member for Kingston upon Hull, East (Mr. Prescott) looking glum as he has admitted this–there would be a shake-out of jobs and any silly fool knows that? Does my right hon. Friend agree that, in the interests of Britain, that policy must be reversed?

    Mr. Newton: Although it is sometimes difficult to glean from the observations of the Opposition, I imagine that the whole House will welcome the fact that unemployment has fallen by 350,000 in the past year and, indeed, that employment has grown by more than 170,000 in the year to March. I see the hon. Member for Dunfermline, East (Mr. Brown) giggling in some way– it is especially ironic that, not so long ago, he forecast that unemployment would go on rising month in and month out. No doubt he will be reassessing his forecasting methods. At the same time, he might reassess policies such as the social chapter and the minimum wage, which would certainly push things in the other direction.

    Mr. Madden: May I ask the Leader of the House a question, of which I gave the Prime Minister notice on Tuesday; will he comment on the tragic events in Bradford at the weekend? In condemning without reservation those who commit serious criminal damage, does the Leader of the House share my deep concern about the large number of very young people who are so deeply angry, disaffected and alienated, not only in Bradford but in many other inner cities throughout the country? Will he support an independent public inquiry to establish what happened in Bradford– [Interruption.] If the House–

    Madam Speaker: Order. I hope that the hon. Gentleman will come to his point as I have other questioners to call.

    Mr. Madden: But this is a serious matter to the majority of hon. Members on both sides of the House. Will the right hon. Gentleman support an independent public inquiry, which can identify the causes of the serious public disorder that took place in Bradford at the weekend and draw attention to the action that can be taken by all public agencies, including the Government, to bring back hope to young people, their parents and local communities?

    Mr. Newton: First, I am grateful, as everyone in the House will be, for the hon. Gentleman’s initial acknowledgement that, whatever arguments he or anyone else cares to adduce, we all agree that there can be no excuse for the kind of behaviour that we saw in Bradford at the weekend.

    So far as the inquiries are concerned, the hon. Gentleman will know that the Police Complaints Authority is supervising the investigation of a number of complaints made against the police during the weekend. That authority is independent and will do a thorough job. The work will be undertaken by officers from another force–

    Mr. Madden indicated assent.

    Mr. Newton: I am glad to see the hon. Gentleman acknowledge that. I think that that is the appropriate action to take.

    As for the rest of what the hon. Gentleman said, I am glad to know that discussions are now taking place between the police and members of the Asian community in Bradford. That is the way to explore other problems.

     

    Q4. Mr. Hendry: To ask the Prime Minister if he will list his official engagements for Thursday 15 June.

    Mr. Newton: I have been asked to reply.

    I refer my hon. Friend to the answer I gave some moments ago.

    Mr. Hendry: Has my right hon. Friend ever seen a shred of evidence that suggests that people in this country want more government rather than less? Is he aware that my constituents in High Peak would be horrified at the prospect of another tier of regional government based perhaps 100 miles away in Leicestershire? Is not it time for those people who advocate such a policy to admit that what they are really saying is that we should have more bureaucracy, more waste, more remoteness and more taxes?

    Mr. Newton: Labour’s plans for regional government would certainly end up simply sucking responsibility away from many existing councils that are closer to the people whom they represent. As one of Labour’s think tanks made clear yesterday, English regions would be “essentially artificial constructs”, which is true of more or less the whole of Labour’s policy in that area.

    Mr. Macdonald: Is the Leader of the House aware of the growing anger, not just in Britain but on the continent, about the plan to dump the Brent Spar oil platform at sea, at a spot not more than 150 miles from my constituency? Is not it a disgrace that Shell should have tried to hide the true costs of recycling the oil platform on land? Is not it time that the Government intervened to halt the tow of the Brent Spar and allow a proper examination of the true benefits of recycling on land, which would be better for the environment and for jobs?

    Mr. Newton: The hon. Gentleman knows that the Government are following the principle of disposal on a case-by-case basis. In the Government’s view, the deep-sea disposal of Brent Spar is consistent with the UK’s international commitment, and all necessary approvals and consents have been obtained. It is also the Government’s view that it is the best practicable environmental option available.

     

    Q5. Mr. Jenkin: To ask the Prime Minister if he will list his official engagements for Thursday 15 June.

    Mr. Newton: I have been asked to reply.

    I refer my hon. Friend to the answer I gave some moments ago.

    Mr. Jenkin: Will my right hon. Friend draw the Prime Minister’s attention to last week’s report by the Social Security Select Committee into the growth of social security, which vindicates the Government’s view that the continuing growth of social security spending is a cause for concern? Is it not time that we tackled that problem? Is not the test of the Opposition whether they start to support those reforms, otherwise they betray the fact that they have no commitment to dealing with the growth of public expenditure?

    Mr. Newton: My hon. Friend is right to draw attention to that matter. The increase in social security expenditure in its various forms, under various pressures including demographic trends, is a matter of concern throughout the western world and perhaps beyond. Against that background, it has been absolutely right for my right hon. Friend to look carefully at the social security system to ensure that the bill is constrained while at the same time meeting proper priorities. That is what he seeks to do and it deserves the support of hon. Members on both sides of the House.

     

    Q6. Mrs. Anne Campbell: To ask the Prime Minister if he will list his official engagements for Thursday 15 June.

    Mr. Newton: I have been asked to reply.

    I refer the hon. Member to the answer I gave some moments ago.

    Mrs. Campbell: Will the Leader of the House ask the Prime Minister whether, while considering what to do about the damage that his Government have caused to home owners with negative equity, he will consider the misery caused by the removal of mortgage interest relief to those who are unemployed and the damage caused to those who need social housing by the £600 million of cuts to housing associations?

    Mr. Newton: I shall always draw the hon. Lady’s questions to the attention of my right hon. Friends. However, she might have referred to the fact that negative equity and repossessions are sharply down since the 1991 -92 peak, and that average mortgage payments have fallen by £130 a month since October 1990. On the hon. Lady’s first point, a survey has shown that two thirds of lenders intend to buy block protection in the area to which she referred, and the majority of those, including the Skipton building society, to which my right hon. Friend referred last week, intend to make no charge.

    Mr. Marland: Is my right hon. Friend aware that, in the county of Gloucestershire, under the profligate Lib-Lab pact local government, the schoolchildren are being cruelly misused? Is he aware that, as a result of the historic overspending in Gloucestershire, the county council has decided to cut spending on education? Is he further aware that some of us are tired of being a whipping boy for Lib-Lab extravagance, and that it is time that we considered lifting the cap on local authority expenditure?

    Mr. Newton: I see that it has been reported in some parts of the press that the Leader of the Opposition has managed to persuade the Labour councillors of Mid-Glamorgan to reduce their demands for increased allowances from the exorbitant to the extortionate. I hope that he might now use his influence with some other Labour local authorities to persuade them to pursue sensible and proper policies.