Tag: Inflation

  • Mr Major’s Speech to 1997 Conservative Party Conference – 20 October 1997

    The text of John Major’s speech to the 1997 Conservative Party Conference, held in Blackpool in October 1997.


    JOHN MAJOR:

    Life has changed a little since I last spoke to you at Bournemouth: changed for you and for me. Five months ago, we lost the election. Like you, I wish events had been kinder to us but – on this occasion – it was not to be. So, today, my first task is to thank the British nation for the trust they placed in Conservative governments over 18 years.

    This year they made a different choice and as democrats we respect their decision – but as politicians we must work to change it at the first available opportunity.

    It’s no great secret how I feel about this Party. It’s the Party I grew up with, that fashioned the chances I had in life, that is full of people who share my hopes and values. To everyone who works in our constituencies in good days and bad – I’d like to say ‘thank you.’ ‘Thank you’ on behalf of our Party and ‘thank you’ for all the warmth and support you have always given to Norma and to me.

    On my first day as Prime Minister, I set out an ambition to build a ‘nation at ease with itself.’

    As I look around today, at the growing confidence of our Nation, at the glittering economic prospects, at the rising growth, the strong trading position, the low inflation, the falling unemployment, the low interest rates, the strong pound, the increasing number of young people in higher education, the rising level of savings and record personal well-being, then I sometimes wonder if we did not build better than we knew. If there is a New Britain, we built it.

    So when the Government boasts about the economy – it’s our economy. When they boast of falling unemployment – it’s our fall in unemployment.

    And – now I think about it – isn’t it odd. Those unemployment figures John Prescott said were ‘fiddled’ are now a triumph for New Labour as they march to the New Jerusalem. Or – as it’s probably now called – the People’s new, New Jerusalem.

    Our election defeat was not your defeat. Perhaps it was mine. Perhaps divided views – expressed without restraint – in the Parliamentary Party made our positions impossible. Perhaps it was the weariness of 18 years in government. Perhaps the democratic instinct of our Nation simply sensed it was time for a change. Probably it was some of all of these things.

    Rather than brood over it, we must accept our defeat as gracefully as we can; we should not waste time in pointless recrimination; we should work in the towns and the cities and the villages and begin to build for the future and the next Conservative Government.

    A few moments ago, we heard that you have endorsed William Hague’s election as Leader and the need for reform of the Party by a massive majority in a far larger vote than anyone expected.

    William is right. We need reform – but we don’t need to re-write every policy. Or change our name. Or deny our past. Or betray the philosophy that built us up. But neither can we leave things as they are.

    It’s a simple choice: reform the Party, back William Hague, re-discover the art of working together, fight every seat for every vote – or fight one another and lose elections.

    I know my choice. I’m backing William. I’m backing him because he’s an able man of talent and integrity with a tough job ahead.

    It’s difficult being the leader of a newly defeated Party. For a while, people won’t wish to listen to what we have to say. But that will pass. The tide will turn and – as the local election results are already suggesting – perhaps more speedily than anyone imagines. If anyone is fearful of our future, they should have heard Jane and Munish a few moments ago, for that is the future of the Conservative Party.

    In the meantime, we must use the time wisely. Party reform – yes. But we must also look at the things we left undone or uncompleted. Education reforms; market reforms; how to make better health care available; a fresh look at reviving local government – a big job there; more welfare reform; the people being left behind as prosperity grows.

    We now have the luxury of time to think anew – and we should use it to build up policies that the broad mass of the British people will know are right – and feel comfortable with.

    I propose to give William Hague the unqualified support – in public and in private – that he has a right to expect from his predecessor. If I should disagree with William, I’ll do it in private, not on College Green, not on the media, not in anonymous briefings to the Press that breed suspicion and distrust. And I’m backing reform because never again must we be constitutionally powerless to deal with people whose behaviour is damaging the Party as a whole.

    The Prime Minister said last week this was ‘the giving age.’ Well, he should know. Because we’ve given him a glowing inheritance. Not just the economy – excellent though it is. We gave him the route map to the settlement in Northern Ireland that I long to see. We gave him the ‘opt out’ from a single currency that – now the information is to hand – he should use without delay and say: ‘the economic case is not yet right: we will not be joining in 1999.’ And we gave him a lottery that – even after they’ve raided it – is still helping charities, schools, village clubs, arts and sport at local level on a truly massive scale.

    It’s good to give. And we should remind people what we gave.

    I’m confident about our future: ignore the pessimists – we can beat Labour. Never forget, their swollen majority is made up from far, far fewer votes than we polled in 1992. Our history might have been different if our votes had delivered Labour’s sort of majority in 1992.

    As I end, I’d like to say something else about the Party. Remember what we are.

    Remember that our Party has served its country in government more often and longer and better than any democratic party in the whole history of western politics.

    As we’ve seen, even such a party can be beaten at the polls. But the Conservative family can only be defeated from within.

    At the end of this week, there’s one strong message that I long to hear from this Conference:

    We are the Conservative Party.

    We exist to serve a nation that is Conservative by instinct.

    We will be back.

  • 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 Joint Doorstep Interview with the French Prime Minister, Alain Juppe – 3 February 1997

    Below is the text of Mr Major’s joint doorstep interview in London with the French Prime Minister, Mr Alain Juppe, held on Monday 3rd February 1997.


    PRIME MINISTER:

    Good afternoon. Let me firstly say what a pleasure it is to welcome the Prime Minister again to the United Kingdom. Over the last couple of years, or perhaps longer, we have had the opportunity of a number of meetings, they have always been immensely enjoyable and very constructive and I think I can say that of our meeting here again today.

    We had a pretty wide agenda, I will run through the heads of it, invite the Prime Minister to speak and then we will take your questions.

    I think if I went into the detail of all we had been discussing, we would be here until a very late hour this evening. We discussed a number of bilateral matters before turning on to the European agenda, concentrating most comprehensively upon the Intergovernmental Conference, but also discussing the prospects for economic and monetary union and communal European interests with the rest of the world.

    We also looked at a number of specific issues – enlargement of the European Union, enlargement of NATO, the present situation in a number of overseas countries, we also looked at the problem in the Great Lakes and a number of international issues of that sort about which we have a mutual interest.

    In many of the European matters we have a common view, in others I think, as is well known, we have a different view at present but are trying to see to what extent we can bring divergent views together and I think we had a very useful explanation, one to the other, of the areas of difficulty we both see in the Intergovernmental Conference.

    I think I will leave the details for your questions and invite the Prime Minister to say a few words.

    M JUPPE:

    [Interpretation inaudible].

    QUESTION:

    Prime Minister Juppe, do you think the single currency will come into effect on 1st January 1999 and why do you think it would be in Britain’s interest to join on that date?

    M JUPPE:

    I am deeply convinced that the single currency will be implemented next year, in 1998, and as you know France will be ready at that time to enter the single currency. Our budget policy, our anti-inflation policy and so on will allow us to meet the criteria and those criteria are wise criteria, as you know. We also think that it will be in the interests of all our partners, and especially of Great Britain, to join us, but I think that John Major has reason to explain this better than I do, but I wish that either in the first wave or in the second wave Great Britain will join us.

    QUESTION (Adam Boulton, Sky News):

    Is the British government now in favour in principle of the single currency, as the Foreign Secretary has accused Mr Blair of being and M. Juppe, what do you see as being the significance of this possible division between the Labour Party and the Conservative Party?

    PRIME MINISTER:

    I think you know very well our position on a single currency. We are not absolutely certain that it will be ready for 1999 and there is a difference of view between our European partners and us upon that about whether the convergence criteria will be clearly sustainable at that particular date. Clearly the importance of the economic criteria are such that if it isn’t sustainable we are very dubious about the desirability of it proceeding.

    And I will comment on the Labour Party’s position when I have been discussing the Labour Party’s position and not after I have been discussing the British Government’s position with the Prime Minister.

    M JUPPE:

    No comment on domestic affairs of course.

    QUESTION:

    M Juppe, does the existence of the social chapter in France present an obstacle to job creation?

    M JUPPE:

    I don’t think so. I think there is no relation or no link between those two elements. I think that our main objective to create jobs in France is to consolidate our budget and financial situation and I think we are making very interesting progress on this way. As you know unemployment has decreased in France during the last month of December and we have many signs of an improvement of the situation of our companies, especially our small businesses and as you know small business is likely to be the place where jobs can be created most efficiently in France.

    QUESTION (Tom Burrows, Market News):

    A story in the Independent today says that France and Germany have come close to an agreement on some kind of stability council, that would be some kind of counterpart to the European Central Bank. Given the concerns about this, particularly from some quarters both here and also in Germany about what this would mean for the Central Bank’s independence, where do you both stand on the issue of such a council and what its status should be?

    M JUPPE:

    We obviously respect the independence of the central banks, of the French central bank, of other European central banks and of course of the European central bank when EMU will be in effect. But it is also absolutely necessary to have a cooperation dialogue between the countries which will participate in EMU and the Council of Stability and Growth is the place where this cooperation must take place. It is in the spirit of the Maastricht Treaty and there is no question of stopping the independence of the Central Bank in such a project.

    QUESTION:

    [Indistinct] of a Labour Government?

    M JUPPE:

    I have already answered that question saying there is going to be no comment on domestic affairs and you can just use this answer to all the following questions on the same issue.

    QUESTION:

    Did you discuss defence matters and are you in agreement that it should be the Western European Union rather than the European Union that should proceed to control those [Indistinct].

    PRIME MINISTER:

    We discussed defence matters in some respects, we discussed for example the NATO Summit and we discussed the desirability of developing a European defence identity as the European arm of NATO. We did not discuss the organisational question to which you refer.

    QUESTION:

    Did the British Prime Minister give the French Prime Minister any useful home recipes as to how to manage the economy, and if so what are you going to do about it?

    M JUPPE:

    [Interpretation inaudible].

    QUESTION.

    [Indistinct] intervene in the current situation in Serbia with regard to the local elections?

    M JUPPE:

    [Interpretation inaudible].

    PRIME MINISTER:

    That is my view as well.

    QUESTION:

    Could you just make a comment on Serbia in English for the international press?

    PRIME MINISTER:

    As the Prime Minister just said, we are concerned that the legitimate outcome of the elections is honoured and that has been a European Union position, I think it is very well known. We spent some time looking at the position both in the short term and the long term in Serbia and also in Bosnia Herzegovina and clearly there is a great deal to be done. I don’t wish to go into the details of what we discussed.

    QUESTION:

    Since Prime Minister, you said that you talked about a number of international issues, did you talk about Algeria and if so what did you say?

    M JUPPE:

    [Interpretation inaudible].

    QUESTION:

    Can you comment on England’s World Cup row with Germany?

    PRIME MINISTER:

    The last time we played Germany we lost on penalties, it was an extremely good game and I think we were very unlucky to lose but it was a very good one. Whether we will lose as far as 2006 is concerned is a long way away. We think that the United Kingdom could stage the World Cup with skill and style and the Football Association will have the Government’s full support in its bid to do so.

  • Mr Major’s Comments on the General Election – 14 January 1997

    Below is the text of Mr Major’s comments on the General Election, made during an interview in Lahore on 14th January 1997.


    QUESTION:

    [Mr Major was asked why he didn’t just call a General Election now].

    PRIME MINISTER:

    People won’t have to wait too long, will they? There is an election coming soon and I will have the election when I think it is appropriate to have it.

    As far as being run ragged is concerned, if the Opposition are so energetic they might actually sort out their policies, that would be rather agreeable and then we could have an election about policy which would be a very good idea.

    QUESTION:

    [Mr Major was asked if he was at a disadvantage because he didn’t have a Parliamentary majority going into a General Election].

    PRIME MINISTER:

    It is a great advantage to go into an election with the best economy in western Europe and we took the measures in the early part of this parliament to try and produce the best economy in western Europe and that is precisely what we have produced. We have now got very low inflation, we have got unemployment falling very dramatically over the last three years, we have got interest rates at a relatively low level, we have got very high growth and you seen the reputation that Britain has abroad and the strength of its commerce and industry.

    We have achieved that because of many things that made us unpopular, things that were bitterly opposed by the Labour Party and the Liberal Party, but you can now see that they are working and I think it is right to let people see that they are working in the last few months of this parliament so they can make a mature judgement. They may say, “We didn’t like what the Tories did, it was very uncomfortable!” – and some if it was, I concede that – but people can now increasingly see why we did it and as the economy gets better, they can see the fruits of having done it and I think it is right to wait for those and I’ll call the election when I’m ready.

    QUESTION:

    [Mr Major was asked if people would really change their minds that swiftly].

    PRIME MINISTER:

    They changed their minds pretty swiftly in the last General Election campaign and I suspect that they will on this particular occasion. People are going to focus on this when they actually have to ask themselves the fundamental question, “Things are now going well, are they not?” to which the answer is “Yes, do we wish to risk that and perhaps throw it away with a leap into the dark?”. I think they will answer to that question “No!” and that question becomes sharper as we get nearer to the election and it becomes very sharp indeed once the election campaign proper really begins.

    QUESTION:

    [Mr Major was asked if he was ready to go to the country if a Parliamentary occurrence demanded it].

    PRIME MINISTER:

    The Conservative Party is ready for the election whenever it comes. We would prefer to have the election a little later, I suspect that we will have it a little later because we wish to see the effect of our policies flow through, but if you mean are we organisationally ready for whenever I wish to call the election, the answer is yes.

  • Mr Major’s Message to Conservative Party Association Chairmen – 29 December 1996

    Below is the text of the New Year message sent by Mr Major to the Conservative Party Association Chairmen on Sunday 29th December 1996.


    PRIME MINISTER:

    1997 will be a watershed year for Britain.

    At the election, people will face a choice. A choice of two futures.

    They can choose a future where prices and mortgage rates are firmly under control. They can choose a future that looks rosy, with the best economic conditions this country has seen for a century, created by millions of hard-working people and the government, together. And they can choose a future where British interests will be fought for in Europe.

    Or they can risk a future with an untried, inexperienced, unrealistic alternative. We will win that election, because on all three counts it is too risky to trust Labour with Britain’s future.

    I know how hard the British people have had to work to make life better in this country. As a result we have made real gains – more spending money, more jobs and record investment. But I know, too, how easy it would be to lose those hard-won gains.

    We will safeguard the stability and lasting prosperity of British families with a clear and reliable agenda for those who work hard. Here are my five economic pledges for stability and prosperity:

    Tax : Having cut the basic rate of tax from 33p to 23p, we aim to get it down to 20p. Labour has £30 billion spending pledges but will not say where the money will come from.

    Prices : We keep inflation firmly under control. Labour has no plan for controlling prices and no inflation targets.

    Mortgages : By keeping inflation and interest rates low, we will ensure that the repayment on people’s homes – their biggest monthly outlay – remains affordable. Labour cannot be trusted to protect people’s mortgages.

    Jobs : We will continue to help businesses create more jobs, particularly for the young. Labour would destroy jobs with the minimum wage and Social Chapter.

    Britain : We will fight for a Europe of globally competitive nation states, not a federal Europe. Labour would undermine our right to say “no” to policies that would harm our country, and sign up to the job-destroying Social Chapter.

    Only Conservatives can deliver and build on Britain’s stability and prosperity. The evidence is all around us. A hard-working family on average earnings is £1,100 a year better off than at the last election, after taking tax and inflation into account.

    Over the next five years, Conservatives will fight to build on the higher standards in our schools, to build on the better treatment in our hospitals, and to build on the increase in police numbers on the streets. We have built a platform for lasting prosperity in a tough and competitive world.

    Having come this far, people are now going to ask themselves if they are prepared to put their security and Britain’s success at risk.

    Every previous Labour government has mishandled the economy and every person has paid the price through higher taxes, mortgages, prices and fewer jobs. If a new Labour government acted as Labour has always done, we would all suffer.

    Labour’s aims are unachievable. They have made £30 billion of spending pledges, so everyone knows they will either put up taxes or run up the nation’s debt. They say they’d help the unemployed – but we all know that a minimum wage would price people out of jobs. They say they are on the side of the people, but they are determined to make them pay more for gas, electricity, water and telephones and reduce the value of their shares and pensions, by imposing a windfall tax on business.

    The real danger lies in the fact that Labour won’t say where the money is coming from. After seventeen years in opposition, they still won’t tell us how they would raise the money to achieve what they promise. This is an unbelievable stance for a party wanting the responsibility of government. It is not surprising that their deputy leader, John Prescott, says that it would be “stupid” to tell the people what their tax plans are.

    But this election will decide more than just how Britain is run. Our great country faces two futures.

    At the European Inter-governmental Conference in Amsterdam next year, the British Prime Minister will have to negotiate about the future of Europe.

    I have one overriding principle in my policy towards Europe: to put the British interest first. That is the best policy for Britain and our party. I want Britain to play a full part in building a Europe of nation states. Our agenda is to help make Europe more competitive, so all hard-working people will benefit.

    But I will firmly resist any policies that would damage Britain’s prosperity, or result in a significant shift of power to Brussels. As I have said before, if Europe goes federal, Britain will not follow.

    But there is another future.

    Imagine if Tony Blair represented Britain in Amsterdam. He says he would never be isolated in Europe, so he would just follow the crowd. He would sign up to the job-destroying Social Chapter. He would undermine our veto – our right to say “no” – in many crucial areas.

    While destroying Britain’s influence abroad, Tony Blair’s policies would dismantle Britain at home. He clings to the wreckage of a discredited policy – devolution. He says it is a priority for government, but it would undermine the United Kingdom. He would give Scotland a tax-raising parliament, Wales an assembly and England a series of regional assemblies. No-one can know the damage this would do to our country.

    Two futures. A united and successful Britain, holding its head up high in the world – as the respected Organisation of Economic Co-operation and Development has just confirmed. Or a country weakened abroad and divided at home.

    Stability and prosperity, or a leap into the unknown. That is the choice.

    When people ask, “But isn’t it time for a change?” tell them that there is a stark choice. Do people want to see the achievements of 17 years, and the brightest of prospects for generations, handed over to a party that is inexperienced and will say anything to win power? We get the basics right, Labour will get them hopelessly wrong.

    It is not in my nature to walk away from a fight. I am not going to do so now. I look forward to your help in winning a fifth term in office.
    Happy New Year.

  • Mr Major’s Speech in Dungannon – 18 December 1996

    Below is the text of Mr Major’s speech at Bush Primary School in Dungannon, held on 18th December 1996.


    PRIME MINISTER:

    I just wanted to say this morning how pleased I am to be here in Northern Ireland this morning and how much I’ve enjoyed the visit to the Bush School. I’m sorry we didn’t have time to finish the school play, it was just getting to the tense part but I’m reliably informed that it ends happily. I have, this morning, three places of extremely good news for every part of the United Kingdom. The unemployment figures announced a few minutes ago show the largest drop in unemployment since records were first kept, 25 years ago. We’ve seen today unemployment drop by just under 96,000 and we’ve seen that drop reflected right the way across the United Kingdom in terms of male unemployment, that has fallen, female employment has fallen and it has fallen in every region across the United Kingdom. This fall this morning doesn’t just take unemployment below 2 million, it takes it down to over 1.9 million, a very long way below 2 million, and it’s extremely good news for very many people.

    The other two pieces of good news I think, perhaps, help explain the drop in unemployment. The first is the report of the OECD into the economy across the United Kingdom. The OECD independent forecast not only notes that we’ve had the largest growth in the United Kingdom of anywhere in Europe last year and this year, but forecasts that we will have the largest growth across Europe next year and the year after that and that we will do that by maintaining very low inflation.

    The third piece of good news is the growth in retail sales showing yet again that the economy at the moment is extremely buoyant, so what we can see as we come to Christmas 1996 is perhaps the best economic prospects that we’ve seen across the United Kingdom for a very long time. I don’t think many people will remember when the prospects were quite as rosy as they were at present and we now have to make sure that those rosy prospects are turned into future realities and I have every intention of ensuring that we do. Here in Northern Ireland we’ve seen today’s unemployment figures take unemployment down below 10 per cent for the first time, I think, in about 15 or 16 years and that is a trend, I think that looks as though it’s going to continue, so extremely good news for very many people.

    QUESTION:

    Prime Minister, can I just ask you if you’re still committed to the peace process?

    PRIME MINISTER:

    I’m totally committed to the peace process and I will remain committed to the peace process for as long as I remain in politics, which I expect to be a very long time.

    QUESTION:

    Prime Minister, are you disappointed with all this good news you’re telling us about doesn’t extend to good news about real progress in the peace process which you might have expected coming back?

    PRIME MINISTER:

    I would have liked to have had more progress. I’ve said from the outset of this that it would often be two steps forward and one step back and I’m afraid over the last few weeks we’ve been in the one step back mould. I very much regret that but I think if we take the long view and see the changes that have occurred over the last few years, the change not just in terms of tangible progress but the changes in the terms of debate, the way in which the debate is expressed, I think we can see that over the longer run a lot of progress has been made and I believe that more progress can be made and will be made. The principal reason I’m confident about that is what I see every time I come to Northern Ireland. I come to Northern Ireland and I see people, whichever side they may instinctively support, who wish to see progress. I don’t believe people can stand in the way of that progress, it may be slow, it may be painful, but progress I’m confident there will be.

    QUESTION:

    What words of hope would you offer to the people of Northern Ireland for 1997? 1996 started off looking very good, ‘97 doesn’t look so good?

    PRIME MINISTER:

    Well I hope from where we are that we will be able to move forward. As I said a moment ago there’s a pause in the move forward but I don’t think this pause will last for good, providing everybody who speaks about their will to have peace means that they say, then there’s no reason why we can’t make progress. We have always known there’d be some very difficult hurdles to overcome but we know those hurdles would come at irregular intervals in the process, we have now hit a hurdle, but I think it is a hurdle we will be able to overcome, we’ve done so in the past, I have every intention of trying to do so again.

  • Text of the 1996 Budget – 26 November 1996

    Below is the text of the 1996 Budget, held on 26th November 1996 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 resolution will be available to hon. Members in the Vote Office.

    The Chancellor of the Exchequer (Mr. Kenneth Clarke): Contrary to popular belief, I always look at the mirror in the morning. I am reasonably well prepared for this occasion and I am about to deliver the real Budget statement. I think this is positively my last appearance in the House in a speaking capacity this week, or so at the moment I expect it to be.

    The British economy is today prosperous and successful. This Budget is going to make it even more prosperous and an even bigger success over the coming years.

    When I presented my first Budget in 1993, it was against a very different economic background from today. Although the recovery had begun then, consumer confidence had not yet returned. Growth was not yet firmly established. Further firm action was needed on the public finances, and our critics, in 1993, were peddling doom and gloom about the British economy. The recovery is now in its fifth year. Consumer confidence has returned and we are achieving something unprecedented for a generation in this country – growth with low inflation and without a widening trade gap. But one thing has not changed in 1996 – our critics are still peddling doom and gloom. With all their predictions of impending disaster, it is obvious that there is probably more than one Cassandra lurking in the Labour party.

    In my first two Budgets I curbed the growth of public spending and took firm decisions on tax, which have brought borrowing down by almost a half since 1993. Last year, in my third Budget, I was able to return to cutting tax while spending more on the public services which the people I know care about most – health, schools and the police – and keeping borrowing on a firm downward path.

    This year, I am presenting a Budget which builds on the last three. This Budget reduces public spending plans further, while providing more money for priority services. It makes responsible progress on our tax-cutting agenda, while getting borrowing down faster. This is not a reckless Budget on either tax or spending. In the run-up to Christmas I am not going to play Santa Claus, but this year I do not have to play Scrooge either.

    I have one overriding aim, which is the lasting health of the British economy. [Hon. Members: “And winning the election.”] The lasting health of the British economy might win elections, that is true, but my first aim is the lasting health of the British economy. We are securing that by creating the best conditions for British businesses and British men and women to earn a living. All my Budgets and all my policies have been designed to set this country on course to be the strongest industrial economy in western Europe in years to come.

    ECONOMY

    The British economy is in its fifth successive year of steady, healthy economic growth, with falling unemployment and low inflation. These are the best circumstances we have faced for a generation and that is the only sensible background to debate in this House. It is a Rolls-Royce recovery and it is built to last.

    The International Monetary Fund and the Organisation for Economic Co-operation and Development confidently expect the United Kingdom to be the fastest growing major European economy again next year. By next year we will have grown faster than either France or Germany for five years in succession for the first time in half a century.

    This time – unlike so many previous recoveries that many of us remember – healthy growth has been accompanied by the best inflation performance for nearly 50 years and restrained growth of earnings has been good news for jobs. The British labour market has become our flexible friend. Employment began to rise sooner and unemployment began to fall sooner than in the previous recovery. Growth creates jobs quicker, as long as we retain a flexible labour market.

    The OECD has praised us for having one of the least regulated labour markets in the industrialised world. High social overheads, minimum wages and unnecessary legislation do not protect workers – they cost jobs. Unemployment is still rising in France and unemployment is still rising in Germany. It has fallen sharply here, to its lowest level for over five and a half years.

    In the bad old days, recoveries were derailed by balance of payments crises. In this recovery, the current account has actually improved, despite the slowdown in our main European markets. In fact we now have a current account broadly in balance, which is our best overall trading performance for nearly 10 years.

    Economic policy

    Mr. Deputy Speaker, I want to ask the British people this question: in the years ahead do we seriously want to be prosperous in this country? I think that we do. That is why I am setting out an economic policy aimed at the next five years, not just the next five months. I am setting out an economic policy that will go on delivering our enviable combination of rising prosperity, low inflation and more jobs. That is my purpose in this Budget. This Budget secures a prosperous future for all sections of our people and their families.

    The last thing that the British economy needs now is a change of direction. We need at least another five years of this Government’s continuous vigilance on inflation. We need more of this Government’s determination to get government borrowing down. We need another five years of this Government’s commitment to raise the wealth-creating potential of the British economy, by improving incentives, reducing the role of the state and creating a climate for enterprise.

    Growth

    Let me begin by turning to my forecast for growth. I expect the British economy to grow by 2.5 per cent. this year and 3.5 per cent. next year – and there are few serious commentators who would disagree with me. I hear mutterings from the shadow Chancellor; there are few serious commentators who would disagree with me.

    By keeping a close eye on the prospects for inflation up to two years out, and by taking sensible early action if and when necessary, I intend to ensure that healthy growth continues without inflationary pressures emerging. That is what I have always promised–no return to boom and bust.

    Consumer spending

    I expect consumers’ expenditure to continue to be the main engine of growth next year. The real value of take-home pay is growing strongly.

    The housing market recovery is now firmly established. I hope that negative equity can soon be consigned to the economic history books.

    People are feeling the improvement in their family finances. Consumer confidence is at its highest levels for more than eight years.

    I expect consumer spending to grow by 3 per cent. in 1996 as a whole. But it has been strengthening through the year. So I expect stronger growth to continue, with consumers’ expenditure rising by more than 4 per cent. next year.

    Investment

    But this recovery is not just about a more confident consumer. Businesses are optimistic too. The climate for business is excellent. Strong demand at home and a recovery in our key export markets present British industry and commerce with tremendous opportunities.

    Interest rates and tax rates remain low, and profitability is high. The result has been business investment growth of 6 per cent. so far this year. I expect business investment to continue to grow strongly – by almost 10 per cent. next year.

    These excellent conditions for business are not lost on overseas companies looking to invest for the future inside the European market. Let us never forget the most valuable practical endorsement that we get for our sound economic policies.

    The United Kingdom remains the No. 1 destination for inward investment into the European Union. Keeping our enterprise economy on course at the heart of Europe will keep us in pole position.

    Exports

    Exports have grown by almost 20 per cent. over the past two years – an impressive performance in the face of weak demand in our key European markets. The achievement is down to our strong cost-conscious British exporters. They will benefit further next year as the tentative recovery on the continent becomes more established. I expect export volumes to rise by more than 7 per cent. this year and by 6 per cent. next year.

    The current account has been close to balance during the last two and a half years, thanks to strong growth in exports and income from our investments overseas. I expect the current account to remain broadly in balance this year and next.

    Jobs

    As I said earlier, I am glad to say that our thriving economy is creating jobs. Employment in the United Kingdom has risen by more than 0.75 million real jobs since the recovery began. Unemployment has fallen by almost a million from its peak. It will soon drop through the 2 million mark. But that is still too high. I want it to go on falling and I expect it to go on falling.

    I hope that during the debate the shadow Chancellor will say that he forecasts that unemployment will now rise, month after month. That seemed to help our performance in the labour market the last time he said it.

    Inflation

    We are on course to get underlying inflation down to our target of 2.5 per cent. or less, and to keep it there. In October underlying inflation rose to just over 3 per cent. This should not have surprised anybody who looked at last year’s statistics. It is a temporary and inevitable reflection of the exceptional falls in the price level 12 months before.

    Let me give the House my concrete reasons for being so confident about low inflation. Apart from oil prices, which have risen sharply, commodity prices are steady and are not putting upward pressure on inflation. Earnings growth remains sensible and modest. Producer price inflation – a good indicator of what is in the pipeline for retail price inflation – is at it lowest levels in this country since the 1960s. Producer input prices are actually lower than they were a year ago.

    Any risk to this recovery from inflationary pressures re-emerging remains a good way off. But as I have demonstrated again and again, when I see any risks, I will act. I will continue to stay ahead of the game on monetary policy. Eddie will keep me steady and I intend to continue to be canny.

    I expect underlying inflation to meet our target of 2½ per cent. or less. I will ensure that we go on meeting that target for the foreseeable future.

    PSBR

    We have made good progress in reducing public sector borrowing, but it has not been as fast as I expected. The Budget therefore targets public sector borrowing again. The general public may ask why I concentrate on public sector borrowing in the way that I do. [Interruption.] It is suggested that I do so because I am a Tory. That is a good reason for concentrating on public sector borrowing as I do.

    One reason why I continue to concentrate so heavily on public borrowing in setting policy is that money spent paying the interest on our debt is, in my opinion, money that I would prefer to spend on public services and the reduction of taxation.

    We are making good progress on bringing down borrowing, but lower than expected tax revenues mean that it has not fallen as fast as I expected in the last Budget. This is not bad news for everyone. People are no doubt quite glad not to be paying as much tax as I expected. But as I am the Chancellor, I strongly prefer to keep any tax cuts under my own control.

    The causes of these shortfalls in our forecasts of tax revenue – primarily on VAT, but also on direct taxes – cannot wholly be explained by any experts inside or outside the Revenue Departments. But there does seem to be an increasing tendency to exploit loopholes and use special reliefs in an artificial way to reduce tax bills. Those sort of tax cuts are unacceptable. On that, I seem to have agreement. If they are not tackled every year in the Budget, they mean that a few people pay less tax, but the rest must pay more.

    In this Budget I will propose a number of measures to stem tax leakage, to protect the ordinary tax payer and to make sure we get the right tax from the right people. When I reduce tax, I want to do so in a way that is fair for all businesses and fair for all hard-working British men and women.

    Government borrowing has been steadily coming down for three years. This Budget will ensure that Government borrowing keeps coming down. I expect the public sector borrowing requirement to be £26.5 billion this year. That will mean it has halved as a share of GDP over the past three years. I expect it to come down to £19 billion next year and to be broadly in balance by 1999-2000.

    That pattern of declining borrowing is very much better than the one I had to put in my summer economic forecast last July. Since I produced the summer forecast, which was debated in the House last summer, I have reduced my expectations for next year by £4 billion.

    A large part of that improvement is the result of the measures that I am taking in this Budget. This Budget tightens fiscal policy. The reason why I am tightening fiscal policy now is to reduce the risk of having to tighten monetary policy excessively as I set policy to hit my inflation target.

    My decisions are always taken solely in British interests to benefit the British economy. But my decisions in this Budget also mean that, by happy coincidence, we will meet the Maastricht debt and deficit criteria in 1997, and we will do even better than that in the medium term. [Interruption.] I do not need any assistance from nationalists. It is a happy coincidence for everyone because those criteria make sound economic sense, as we all agree, with or without a single currency.

    Our option whether to join or stay out of a single currency, based on British national interest, remains a genuine choice. We will qualify, but we will choose in the next Parliament when the time comes.

    This Government is the champion of sound public finances, of limited government and of low taxation. Our combination of low taxation, low public spending and low debt is the best in Europe. We intend to stay in that enviable position. We can do that only if we continue to bear down on public spending.

    Public Spending

    In the 1980s, across the rest of Europe, the modern state remorselessly took an ever greater share of almost every nation’s wealth. We in Britain held the line. The proportion of GDP going into Government spending in the United Kingdom is now 8 per cent. lower than the average in the rest of the European Union. If our spending had risen to continental levels we would now have to raise nearly £2,300 a year more in tax from every British household.

    I have set a target of 40 per cent. or below for the share of national income that goes on public spending. Making progress towards that desirable target means tough decisions on public spending every year, but this year we have had to cope with the costs of BSE, and with larger than expected increases in the costs of social security, as more and more elderly and disabled people receive benefits to which they are entitled.

    Against that background, we had to keep the rest of public spending within the tightest possible limits, in order for us to spend more on the public services that people really care about: education, combating crime and our national health service. This country has been well served by my right hon. Friend the Chief Secretary who has successfully tackled that problem. Despite all the difficulties, we have been able to reduce public spending plans over the next three years by a further £7 billion in this Budget. Public spending next year will be more than £24 billion lower than was projected when I became Chancellor – a reduction of 7 per cent.

    We have been able to reduce spending plans because we have lower inflation, falling unemployment, a continuing campaign for efficiency in the public sector, sensible policy priorities and a Government capable of taking decisions about those priorities. On top of that, the Government’s relentless drive against fraud and the abuse of tax and benefits will be stepped up another gear.

    Next year, we will meet our target of 40 per cent. for the share of national income that goes on public spending. In last year’s Budget I said that I would make 40 per cent. in 1997-98. This year’s Budget secures that important goal. So long as we keep – as the next Conservative Government will keep – the growth in public spending down below the growth in the economy, we will go below that.

    Education

    Education is the key to the future of any prosperous and civilised society. It helps to determine how well the economy performs in the long run. It also helps to determine the sort of citizens that we have and the sort of society that we have. The Government are committed to raising standards in education.

    As a result of last year’s Budget, £878 million extra was provided for schools this year. We are giving schools priority again in this Budget. Planned expenditure on schools will rise by another £830 million next year. A large proportion of that money – £633 million, an increase of 3.6 per cent. – will be channelled through the local authorities. I see the hon. Member for Sheffield, Brightside (Mr. Blunkett) shaking his head. Perhaps the money did not reach his schools; I am not as familiar with Sheffield as he is.

    Judging by last year’s experience, some local authorities are reluctant to pass on the increases in their standard spending assessment to their schools, preferring to spend the money on other areas. It is no good local authorities campaigning for more spending on education in the autumn and then spending their money on other things in the spring. Parents will want to make sure that their local authorities spend money on the things that they want for their children: good teachers and better equipped schools. I hope that the hon. Member for Brightside makes the same efforts to ensure that Sheffield passes the money on, if it did not last year.

    A good school has a value far beyond its buildings; but the quality of school buildings in which our children are taught is still very important. We have a long way to go in the post-war era to get up to the standards that we require. We will be providing an extra £50 million on top of the previously planned provision for more capital investment to improve the fabric of our schools.

    By setting high standards for schools and increasing choice for parents, this Government are delivering better trained and better qualified young people. Almost one in three young people now goes on to university, compared with one in eight in 1979. And our universities and colleges maintain some of the highest standards in the world despite the pressure on their unit costs that this unprecedented explosion of opportunity for young people has produced.

    But I recognise this pressure – I have heard about these pressures – and I also realise that our universities and colleges make an important contribution to the economy.

    My Budget therefore includes £280 million to boost further and higher education over the next two years. This includes an extra £20 million next year for science equipment. We want to ensure that the British science research base remains the best in the world, which it certainly is at the moment.

    As my right hon. Friend the Secretary of State for Education and Employment announced in September, the Government are planning a substantial sale of student loans debt. It makes no sense for the Government to keep a huge portfolio of loans on their books when the private sector could manage it more effectively and is better placed to cope with the risk. I emphasise that the sale will have no effect on the terms on which students can get loans.

    The substantial reduction in the figures for education that Members will find published in the new spending plans is more than accounted for by the sale of this debt. As I have just described, we will actually spend more on the things that really matter – educating our children and young people.

    Combating Crime

    This Government believe that effective law and order are an essential part of making Britain a nation at ease with itself. A good quality police service and an effective system of criminal justice are very high on the list of this Government’s priorities.

    When it comes to spending on law and order this Government have a record as long as your arm. [Interruption.] Spending more money on a much better police service and a much better criminal justice system – I plead guilty as charged, if that is indeed the charge against the Government. Spending on law and order has already doubled in real terms since 1979.

    Provision for combating crime – police and prisons – will now rise by another £450 million next year. Our plans provide for 2,000 more police constables by the end of next year. We are well on course to meet the Prime Minister’s pledge for 5,000 more constables.

    Health

    Our British national health service, with treatment free at the point of delivery, is the envy of the world. It is the best system of health care that I have ever encountered. In every modern civilised society the demand for better health care, for new techniques to save lives and improve our quality of life grows constantly and remorselessly. This Government completely understand that. That is why we have increased spending by some 75 per cent. in real terms since 1979.

    That is why the Prime Minister has pledged on our behalf more resources for the national health service in real terms every year, throughout the next Parliament – a pledge which, to my continual mystification, the right hon. Member for Sedgefield (Mr. Blair) has not yet brought himself to match.

    We are also spending that money better. We have reformed the NHS so it is much better managed and much more efficient. It is no good opposing these improvements, because when waste is reduced, more can be directed to higher quality patient care. This means that patients get more treatment and care out of every extra pound that we spend.

    For next year, we will increase current spending on patient services in the NHS by £1.6 billion, or 2.9 per cent. in real terms. The real increase in current spending for hospitals next year over and above inflation will be 3 per cent.

    On top of this, private finance initiative investment will play an increasingly important role in providing new health care facilities. The PFI contract for the Norfolk and Norwich hospital scheme, worth close to £200 million, was signed yesterday, and others will follow. [Hon. Members: “Oh.”] I am grateful to my right hon. Friend the Secretary of State for Health for not signing it tomorrow, but I do not think that he had the Budget in mind. There are many in the pipeline–[Hon. Members: “Oh.”] He had the people of Norfolk and Norwich in mind and the efficacy and investment in our national health service. PFI investment in the NHS will reach some £900 million over the next three years on top of the increased public spending I am announcing. I think that the Labour party has at last belatedly become converted to that source of investment in our great national health service.

    The NHS will continue to grow and continue to improve. We are totally committed to the national health service as a public service providing high quality up-to-date treatment, free at the point of delivery.

    By our decisions on public spending, we prove that the NHS remains at the top of the Government’s priorities. The NHS has been safe in our hands, it is safe in our hands and it will always be safe in our hands.

    OTHER PROGRAMMES

    This year’s spending round was as tight as any that I can remember – I keep describing it as eye-wateringly tight – but we never lost sight of our objective, which is to sustain and improve the key public services that the British public care about: education, combating crime and our national health service. In part we have achieved that by increasing efficiency within the priority services, but inevitably we have also had to find savings in other programmes. [Hon. Members: “Whisky.”] You will find out in a minute.

    Falling unemployment and lower inflation has helped to reduce the social security and employment programmes. We are also continuing to transfer activities to the private sector where this is more efficient as it is for student loans. We have refocused the housing programme to encourage the use of private finance and the transfer of the local authority housing stock to the private sector. We are stepping up our programmes against fraud. We are continuing our remorseless squeeze on the costs of bureaucracy itself. And we have looked in every department for ways of achieving our objectives more economically. With efficiency savings, most departments will be able to deliver their programmes next year, but with less public money in real terms.

    Private Finance Initiative

    People pay their taxes in order to get good quality public services, not to accumulate state-owned buildings. This simple truth has led to the development of the private finance initiative.

    The PFI helps to square the circle of sound public finances and growing demand for better and more modern public services by tapping the expertise and the resources of the private sector.

    A year ago we had agreed £1.5 billion worth of deals – now we have agreed £7 billion, and we are on course to double that by March 1999. Time and again the taxpayer is getting better value for money, through new road schemes, new prison services, and information technology projects. And reforms to local government rules are bringing the PFI into new areas, notably schools.

    London is currently experiencing a transport investment boom under the PFI: the channel tunnel rail link, Thameslink 2000, the Docklands light railway extension, and the A40 and A13 improvements. This is in addition to conventional public and private capital spending on the Jubilee line extension, the Heathrow express and the new A12-M11 Hackney link. Investment in London Transport is now running at 50 per cent. in real terms above the average for the 1980s. London will soon become one of the biggest construction sites in the country. As a defiantly provincial Nottingham man, I can only say that I hope that London will be even nicer when it is finished.

    Adding traditional capital spending to PFI investment, publicly sponsored capital spending in the United Kingdom in the next three years will be substantially higher in real terms than it was in the 1980s.

    Social Security

    One third of all public spending goes on social security. Our social security system is there to provide an income when people cannot earn because of sickness, disability, unemployment, caring for relatives or old age. People on the left and the right of politics continue to search for a radically different and better way of meeting those needs in our wealthy nation. I have studied many of their proposals closely and so far, I am afraid, nobody has yet come up with anything remotely sensible or practicable.

    Until people come up with a radical alternative, if they ever do, our welfare safety net must remain affordable. We must not allow the welfare state to damage the incentives of individuals or businesses in the private sector, because it is the wealth-creating enterprise economy that sustains our entire social security system.

    In the post-war period social security has grown in real terms by around 5 per cent. each year. In recent Budgets we have taken action to bring that growth under control. We now expect future growth of 1.5 per cent. a year – well below the growth of the economy.

    Year after year, this Government have also vigorously attacked fraud and reformed benefits to target them on those in genuine need. The measures that I now propose in this Budget intensify those efforts yet again.

    We plan a further move to align the benefits paid to lone parents and couples with children, because both care for children. From April 1998, new awards of family premium and child benefit will be the same in value for lone parents as for couples. We are introducing a number of measures on housing benefit and council tax benefit to ensure that those on benefits do not have a more comfortable life style than some of those who are supporting themselves on modest incomes. The contrary would be unfair and unwise. Full details will be made available later today by my right hon. Friend the Secretary of State for Social Security who, with your permission, Mr. Deputy Speaker, will speak later in the Budget debate.

    In my Budget two years ago, I announced a whole package of measures to help the unemployed get back to work – from improvements to the family credit system to national insurance holidays for employers taking on long-term unemployed people. Those are contributing to the steadily improving jobs position.

    In this Budget I am providing another £100 million worth of new money for new measures mainly targeted on people who have been unemployed for two years or more. First, they will be required to attend a compulsory programme of interviews with the Employment Service to give them a helping hand to compete in our ever improving market for jobs.

    We are expanding Project Work pilots to a further 28 areas. That will create up to 100,000 new opportunities, on a programme with a good track record for getting long-term unemployed people back to work. The pilots have been successful.

    I can also announce pilots for a new scheme called Contract for Work. Private contractors will help people to find work. Those firms will be paid by results. As with Project Work, if the scheme works better than the existing approach, we will expand it. We have drawn on some American experience. We will adapt it to Britain and, if it works, we will widen its application. We must tackle the problem.

    Dependency on welfare impoverishes us all. The welfare system should provide a safety net. It must provide the support that a caring society wants to give to our less fortunate fellow citizens. But the welfare system must never be allowed to become a way of life. We do not want our social security system to be undermined by resentment.

    We have to take these careful measures. We must move people from dependency to responsibility for themselves and their families, because we are serious about protecting those in genuine need and we want to go on delivering that protection for the future.

    Spend to Save

    We want to combine a strong, affordable welfare system with a successful low-tax economy. That means that when we spend money on social security, it must go only to those who need it. It also means that when we levy taxes, we must make sure that they are paid and not evaded by those who ought to pay them.

    As part of our continuing fight against tax and benefit fraud and tax loopholes, I am introducing a package of measures called “spend to save”. That involves the planned spending of money, carefully targeted to save much more money for the general public, and to raise revenue. There will be more money next year to clamp down on benefit fraud. There will be more visits and checks on benefit claimants in high-risk groups, and the information that we already have on benefit claimants will be used more effectively to catch cheats.

    Inland Revenue tax experts will be redeployed to investigate even more rigorously how some big, sophisticated companies seem to pay so little tax. They will make sure that companies are paying what they owe, and what we intended they should owe. In short, we intend to do more about companies being “economical with their tax”.

    There will be more resources in the Revenue and Customs to stem the growth of the shadow economy. Tax cheats put law-abiding small entrepreneurs out of business, and we all lose from that. There will be more Customs and Excise officers to tackle value added tax and other tax abuse, including yet more to target the smuggling of alcohol and tobacco.

    The “spend to save” package will cost £800 million over the next three years to secure, in a well-planned and measured way, revenue and expenditure savings of well over eight times that amount – £6.7 billion. These measures are additional to the effective steps that we have taken previously.

    Running Costs

    “Spend to save” protects the ordinary taxpayer and the people in genuine need of benefits. It is certainly not about more bureaucracy or more red tape.

    We remain a Government committed to deregulation, and we are committed to a more efficient civil service. We have cut overall central Government Departments’ running costs by 8 per cent. in real terms since the start of this Parliament and we are going to reduce them by a further 7 per cent. by the end of the decade. Civil service numbers are already below half a million, and we expect this fall to continue.

    TAXATION

    The first duty of Government is to make sure that people can live their lives as they want and that businesses can flourish. People must have the opportunity of a good quality job to go to, a good standard of living, good schools and hospitals, and safe streets to live in. It is only when those essentials are secure and only when the Government have made sure that they are not borrowing more than they should, that a responsible Government can start to think about tax cuts.

    Last year I cut taxes paid by the ordinary family and this year I am able to cut a little more. I think that the message I have repeated over recent months has now been understood. If there are to be tax cuts, in my opinion they must be for keeps. That means that they must be backed not only by sound spending decisions but by a sound fiscal judgment.

    Consumer spending is strong and inflation remains in check. But a fiscal stimulus to the economy at this stage could be just as damaging as letting go of monetary policy. So, in setting my Budget, I have struck a careful balance.

    I want to cut taxes, but first I have to continue my drive to secure the tax yield. I want to make sure that the tax due is turned into tax paid. The balance of the tax burden must be distributed sensibly and fairly and it must not distort decisions or competition.

    I am introducing a number of measures which will help us to achieve this. I am plugging some loopholes to raise revenue, I am ending some tax reliefs that have done their job to raise revenue and I am adjusting some indirect tax rates.

    Securing the Tax Base

    Even though VAT revenues have revived in recent months, they are still coming in significantly below what was expected last year. This Budget includes a crackdown on some of the rather ingenious wheezes that have sprung up to get around paying VAT. The measures I am announcing will raise £0.75 billion in revenue next year, but they also protect a further £1.5 billion a year of existing revenue from further attack from ingenious accountants, acting lawfully and acting to take our revenue.

    Customs will restrict access to special VAT schemes for retailers. We will also tighten up the rules of VAT relief schemes for bad debts and the option to tax commercial property to prevent widespread abuse of these reliefs. I also propose to take steps against retailers who reduce their VAT bills when selling insurance with their products.

    We have already announced a three-year limit on repayments of VAT claims. This was a sensible precautionary measure in the national interest – not just that of the Exchequer. Recent high-profile court cases have revealed the potential exposure of the Exchequer to enormous claims for tax going back to when VAT was first introduced. No responsible Government could leave the Exchequer and, ultimately, all taxpayers exposed in that way. Government needs to strike a balance between what is fair to the individual taxpayer, and what is fair to the whole body of other taxpayers. The three-year cap that I have announced strikes that balance.

    But one feature that attracted particular criticism from not only accountants and their clients but others was that Customs and Excise retains the right to claim underpaid tax going back six years. That argument was rather disingenuous, because Customs and Excise does not claim underpaid tax on unexpected changes to the interpretation of the law when they go against taxpayers. However, Government must not only be fair – it must be seen to be fair. I have, therefore, decided that Customs’ right to claim underpaid tax, in cases where no fraud or malpractice is involved, should be restricted to three years as well.

    I will be releasing today details of a package of measures to stamp out tax abuse in a number of areas, including leasing transactions, the abuse of foreign tax credit rules and paying employees in their own company’s shares. I am sure that they will be accepted by the House and others as necessary and sensible measures to stem the growing loss of tax revenues, and thereby to protect the ordinary tax payer. I will not tolerate tax abuse. A number of those measures are being introduced – subject to the Finance Bill becoming law – with effect from today.

    Special tax reliefs can be a powerful tool. They can play an important pump-priming role, and encourage companies and individuals to change their behaviour in a way that benefits the wider economy. But by their very nature, they need to be used very selectively. We owe it to the ordinary taxpayer to keep each and every special tax relief under constant review to determine whether it is still justified, or whether it has now served its useful purpose.

    Profit-related Pay

    The tax relief that the Government introduced in 1987 to promote profit-related pay schemes has been a success. It has played a key role in reinforcing the Government’s strong beliefs that employees’ rewards should depend on the success of the business for which they work.

    I have always believed, and have argued publicly for many years, that in a modern enterprise economy people’s pay should be closely linked to the performance of the business for which they work. The best way for businesses to motivate their staff is to let them share in the rewards of success. I am delighted that tax reliefs have helped to get that idea accepted so widely.

    Tax relief on profit-related pay was always intended to be a pump-priming measure, and it was introduced in very different circumstances. In the 1986 Green Paper, Nigel Lawson said:

    “There is considerable inertia to overcome, so it might make sense to offer some temporary measure of tax relief.”

    Profit-related pay is now firmly established as part of British businesses’ pay policy. It is one of the reasons for our success. More than 3.7 million people are in schemes. Ten years on, the temporary tax incentive has successfully served its pump-priming purpose.

    I can no longer justify the ever increasing cost of the tax relief to the 22 million taxpayers who are not in profit-related pay schemes. We cannot permanently divide the work force into groups of people who pay different levels of tax on the same earnings depending on whether the firm that they work for is in a scheme or not. The aim of the relief – a widespread use of PRP – has been achieved, and I would rather make faster progress on lower taxes for everybody. We have changed the culture.

    Good managers in today’s enterprise economy no longer need a tax relief to know that pay should be linked to their firm’s performance. Pay linked to profits produces it own rewards on the bottom line in a thriving economy.

    I shall describe to the House how the Government will start to withdraw this special tax relief. I intend to do that gradually, so I must ensure that businesses which need to adjust their pay packages and their sharing of the rewards of success have ample time to make those adjustments.

    The upper limit of pay attracting the relief will remain unchanged at its present £4,000 until 1998, which means that no one will be affected before then. [Hon. Members: “In time for a general election.”] But during the lifetime of a Conservative Government. It will then be progressively reduced until the year 2000, when the relief will be withdrawn altogether.

    Capital Allowances for Long Life Assets

    Investment is vital to our recovery, and business investment is now growing strongly. The tax system recognises investment through capital allowances. These allow the cost of investment to be written off against tax bills, frequently faster than it is written off in commercial accounts. But within that system, for plant and machinery with a long lifespan, the rate at which costs can be written off for tax is far more generous than for other types of investment, and bears no relation to the useful economic life of the asset. This is an unjustifiable distortion in the tax system in favour of particular types of business and investment.

    I propose changing the capital allowance for plant and machinery with a life of more than 25 years to 6 per cent. on a reducing balance basis. That will spread the tax relief more evenly over the average life of these assets. Groups spending less than £100,000 a year on such assets will be exempt. This will mean that the vast majority of small companies will not be affected. Ships and railways will also be exempt.

    Oil Production

    I also propose to withdraw the 100 per cent. corporation tax deduction for the intangible costs of drilling most production oil wells.

    OTHER TAX CHANGES

    The Government recognise that low marginal tax rates on income are a spur to hard work and enterprise. Taxes on spending do less damage to effort and enterprise than taxes on income, but the balance of the taxes that we do impose on spending must be right, and I am making some changes to taxes which help to move towards a better balance for the tax system as a whole.

    Insurance Premium Tax

    I propose to increase insurance premium tax, which applies to most general insurance, to 4 per cent. Three quarters of all insurance – including life insurance, and other long-term insurance – will remain exempt. Insurance remains undertaxed for consumers compared with other services in this country.

    The introduction of the tax – I made it a very low rate – did not harm the healthy insurance industry that we have. Most companies absorbed the tax, and some premiums actually fell for a time. Even after this further modest change – which I think is lower than many people expected – the overall rate of insurance premium tax in the UK remains very low, lower than in almost any other European Union country.

    Air Passenger Duty

    Air travel has also been undertaxed, because it has proved difficult – still proves difficult – to get international agreement to tax its fuel. The rates of air passenger duty are to be increased. The £5 rate on flights to most European countries will be increased to £10, and the £10 rate on flights to the rest of the world will be increased to £20. Those increases will not come into effect until 1 November 1997. [Laughter.] I realise that we are all thinking of a forthcoming election, but the reason why the Opposition cannot produce a responsible economic policy is plainly that they are obsessive about it. The very good reason for delaying until November 1997 is to give tour operators who have already sold their packages time to reflect the new rates in the prices that they publish in their holiday brochures. I announce necessary things before an election. That is responsibility; that is what is totally lacking among Opposition Members, who seem to propose to announce nothing whatever of any substance, apart from a windfall tax, this side of the election.

    Business travel is soaring, and the holiday business is booming at the moment in prosperous Britain. This modest change will not stop it booming in future prosperous years. About 40 per cent. of the revenue raised by passenger tax is borne by overseas visitors.

    Vehicle Excise Duties

    I am making the same changes to the main vehicle excise duties this year as I did last year. The cost of a car tax disc will go up by £5, around the rate of inflation. The cost of a lorry tax disc will be frozen for the seventh year in succession.

    Road fuel duties

    I firmly believe that motorists should bear the full costs of driving – not only wear and tear and congestion on the roads, but the wider environmental costs. Even those of us who frequently have to drive – and, contrary to rumours that Ministers always travel in limousines, that includes most hon. Members – can take steps to cut fuel consumption and we all ought to consider carefully the use of our car.

    I intend to stick to my 1993 Budget commitment to raise road fuel duties by an average of at least 5 per cent. each year in real terms. In line with this, I am raising the tax on all petrol and diesel by 3p per litre from 6 o’clock tonight. Those tax rises will encourage fuel efficiency and help to control harmful pollution.

    Air quality package

    I am glad to say that pollution from vehicles is already coming down, helped by tax measures in previous Budgets. The tax measures that we took to encourage unleaded petrol were a huge success. It now accounts for two thirds of the petrol market. I want to go further in this Budget for green purposes or, to put it more sensibly, to attack pollution in cities and to improve air quality by effective steps to reduce particulate emissions – the smoke produced by diesel engines.

    In recent years, new evidence has come to light strengthening the health arguments for reducing particulates. This pollution is being reduced, but we all want to see it being reduced further and faster.

    Ultra-low sulphur diesel is cleaner than ordinary diesel and it is slightly more expensive to produce, so I want to create the conditions where ultra-low sulphur diesel can cost the same at the pump as ordinary diesel. I have just said that I am increasing the tax on diesel by the same amount as petrol. I plan to reduce the duty on ultra-low sulphur diesel by 1p per litre relative to ordinary diesel, when I get the necessary international agreement.

    I also want to encourage high-mileage vehicles in our towns and cities to switch to cleaner gas power. Last year’s Budget changes broadly equalised the pump prices of liquid gas and petrol. From 6 o’clock tonight, I am reducing the duty on road fuel gases by a further 25 per cent.

    I also intend to reduce vehicle excise duty by up to £500 for lorries meeting very stringent emissions standards from early 1998. That will give an incentive for lorry owners to fit particulate traps or to convert to gas power. We will be consulting on the practical details of those changes.

    I believe that this air quality package will significantly speed up the reduction of urban emissions of particulates, helping us to meet our air quality targets for 2005 and beyond. We intend to ensure that the economic growth that we are achieving faster than others in this country is consistent with a healthy environment and with sustainable development as we become one of the most successful economies in the western world.

    In my 1993 Budget, I gave a commitment to raise duty on tobacco by more than inflation each year. I believe and accept that that is a fair and effective way to hammer home the message that smoking can seriously damage one’s health. So far as I am concerned, this announcement is necessary masochism in the wider public interest.

    From 6 o’clock this evening, the tax on a packet of 20 cigarettes will increase by about 15p, on a packet of small cigars by about 7p and on a packet of pipe tobacco by about 8p, but I am limiting the increase in the duty on hand-rolling tobacco to the rate of inflation. Hand-rolling tobacco is proving to be by far the easiest tobacco product to smuggle, although it represents a very small part of the tobacco market.

    Mr. Terry Lewis (Worsley): What time do the shops close?

    Mr. Clarke: Not yet.

    Alcohol

    I am aware of the serious problem that cross-border shopping and smuggling of alcohol causes our drinks industry in Britain. I have already announced that customs is further stepping up its efforts to catch smugglers.

    Last year, I was able to freeze the duty rate on beer and wine. This year, it will remain frozen. The proportion of tax on the price of a pint in the pub is now at its lowest level for 30 years. For some of us, that helps to keep our small cigars affordable – [Laughter.]

    Last year’s cut in the duty on spirits was the first cut that any Chancellor had made for 100 years, and I was tempted to maintain a striking rate of once every 100 years. But I am sure that the industry will be glad to know that it will not have to wait so long this time. From 6pm tonight, the tax on whisky, gin and other spirits will fall by another 4 per cent., which is worth 26p. The reduction in the rate on spirits boosts an important industry in the United Kingdom, and it will also reinforce last year’s signal to overseas authorities not to discriminate against our products. Only smugglers will regret that we are slowly moving our duty on spirits nearer to the continental level.

    From 1 January, the tax on alcoholic soft drinks will be increased by over 40 per cent., which will put up the price by between 7p and 8p a bottle–for those who have not yet tried them. That increase will meet public concern about the attraction of the “alcopops” for under-age drinkers, but it will also attack a distortion of competition by bringing the tax broadly into line with that on beer. The House will notice that I have considered carefully the balance of my overall package on this matter, and I have not yet been converted to a bubble-gum flavoured “alcopop”–[Laughter.]

    Business

    Nothing matters more for business than a stable economic environment – low interest rates and low inflation – and businesses throughout Britain are benefiting from the healthy sustainable growth in the economy that I have described today.

    As I promised in my last Budget, there will be, from April 1997, a cut in the main rate of employers’ national insurance contributions, to 10 per cent. The cut will be paid for by the proceeds that we are receiving from the landfill tax. A tax on waste is cutting a tax on jobs, and it will benefit employers in Britain and make it even cheaper to create new jobs in our growing economy. Our overheads on jobs are already less than half those in Germany, France or Italy. I am determined that we must keep that advantage over our competitors on the continent, where the creation of new jobs, in the rest of the European Union, is over-regulated and over-priced. That fact is another practical reason for being confident that our unemployment will keep falling.

    In this Budget, I propose to keep the three intermediate thresholds for employers’ national insurance contributions where they are now. I propose to increase – by £10 and £1, respectively – the upper and lower earnings thresholds for employers’ and employees’ national insurance contributions.

    In this Budget, I also want to deal with a particular concern of our small businesses, upon which so much of our future economic prosperity depends. I think that small businesses are most concerned about the burden of non-domestic rates.

    The uniform business rate is a fixed cost which can rise each year beyond the control of the manager of any business, and it hits the small business hard. Since the last revaluation of business rates, I have repeatedly slowed down the increase of rates for those businesses whose rates have had to go up. No business property has seen its rates go up by more than 7.5 per cent. above inflation in any one year. But I want to do more than that; it is not good enough. I have decided to freeze next year’s rates bill for all small businesses whose rates would have gone up. Small properties whose rates are falling will have those reductions accelerated, which will benefit over 1 million small business properties, by up to £130 a year.

    I want to go further. A freeze is a significant step that I can make right away, this year. We have already reduced business rates for rural village shops. But I realise that the current system of business rates bears particularly hard on smaller businesses, for which it represents a much bigger proportion of total costs compared with their large competitors. We must therefore move on as soon as possible to make more changes in the system to recognise this and to redistribute the burden more sensibly between smaller and larger businesses. My Budget next year will be a convenient opportunity to proceed with that.

    Inheritance tax

    The Government are committed to reducing and then abolishing capital gains tax and inheritance tax. I repeat those commitments. But we have always said that we will cut these taxes only when we can afford to do so. This is a responsible Budget which is protecting future growth and prosperity by putting the public finances into a healthier state. We will not be able to make progress on both these taxes this year.

    Mr. John Prescott (Kingston upon Hull, East): Next year.

    Mr. Clarke: The right hon. Gentleman can come back next year and discover from the same seat that he is now occupying.

    I am pleased to announce that we can take a further significant step towards abolishing inheritance tax. Inheritance tax is nowadays a penalty on thrift, independence and enterprise. It is a growing anachronism.

    Lloyd George’s maxim that the “the most convenient time to tax the rich is when they are dead” no longer holds. Inheritance tax today is largely paid by people of modest means who either cannot or simply do not make careful plans to avoid it. [Hon. Members: “Modest!”] Modest means in the opinion of all those outside the hard core of the labour movement, that is.

    Last year I made significant progress towards our commitment. In this Budget I will build on that by raising the value of the inheritance tax threshold to £215,000.

    Mr. Dennis Skinner (Bolsover): I read that this morning.

    Mr. Clarke: The hon. Gentleman appears to know that from this morning. Is he also aware that the Government have raised that threshold by 40 per cent. in only two years?

    Tax rewrite

    In last year’s Budget I announced a project to rewrite Inland Revenue tax legislation in plain English. That is a tall order. The project is as ambitious as translating the whole of “War and Peace” into lucid Swahili. In fact, it is more ambitious. I am told that “War and Peace” is only 1,500 pages long. Inland Revenue tax law is 6,000 pages long and was not written by a Tolstoy. We have consulted extensively on how the project should be carried out, and I am glad to say that there is wide consensus. The Inland Revenue will publish the plans and arrangements shortly after the Budget.

    The aim is to prepare a series of rewrite Bills, the first of them to be ready for enactment in the 1997-98 Session. My noble and learned Friend Lord Howe has produced a thorough and helpful report on how Parliament might handle those Bills. We endorse his broad proposals, and invite the Procedure Committee to consider how the House is going to handle the Bills in a sensible fashion. I can announce that my noble and learned Friend Lord Howe has agreed to chair the steering committee that will oversee the rewrite project.

    The project will bring the benefits of clarity and certainty to businesses and ordinary taxpayers. It has been widely welcomed and deserves the continuing support that it has enjoyed in all parts of the House.

    Income Tax

    The Government have led Britain towards our clear goal of a low-tax economy in which private enterprise has the incentive to generate jobs, investment and wealth to make people and their families more prosperous. We are moving towards a low-tax economy in which individual living standards continue to rise and the Government can afford the excellent public services that people want.

    Low direct taxes are the most effective way to encourage enterprise and hard work – a message to which we have not converted Labour Members, but one that they no longer dare to deny. Under this Government, those who do an honest day’s work and those who take entrepreneurial risk will keep more of what they earn and save by their own efforts.

    This year, people have taken more heed of my speeches on the overriding priority of securing future prosperity and jobs and financing key public services. Sensible people already expected my cuts in direct taxation to be modest before they read the one leak and many guesses this morning. They know that their well-being depends on lasting growth and more jobs and that living standards rise from a combination of steadily rising incomes in a successful economy and steadily lowering taxes. Tax cuts matter a lot to low-paid people and to men and women in ordinary jobs.

    I announced my income tax cuts last year as a return to our tax cutting agenda and, for the second year in succession, as a result of all the steps that I have announced, I can afford to deliver an instalment of that agenda. The choice is how best to do so. It is the old dilemma between thresholds and rates. Today it is between The Guardian, the Daily Mirror, The Independent or The Sun.

    I want to ensure that tax does not start to be paid at too low a level of income and I want to improve work incentives. Therefore, I propose to raise the threshold below which no income tax is paid at all.

    In this Budget, I am making an increase in the basic personal allowance of £280. That is 3.5 times more than necessary to cover the rate of inflation. It will also ensure that each and every person who pays any income tax at all will get a direct benefit out of the Budget.

    I am also increasing the married couple’s and related allowances by £40, maintaining the extra tax allowance to all married couples. It will now be worth nearly £275 each year for married couples. The tax system does recognise marriage, contrary to popular belief.

    We also give a special tax allowance to blind people. This year, I am increasing that by the rate of inflation. I am also moving to put indexation of that allowance on to the same statutory basis as for the other income tax allowances. I also propose to raise the threshold above which people start to pay the 40p higher rate tax by £600.

    One of the Government’s most important pledges is that we will move to a basic rate of income tax of 20p as soon as we can. We are proving that we can move towards the delivery of that promise and still maintain healthy public finances. Every step that we take makes that more credible and makes it more affordable to reach the ultimate goal to which we are getting tantalisingly near and which a Conservative Government will achieve. As a further step towards that, I propose to widen the lower rate band of 20p tax by £200 – twice as much as is required to meet indexation.

    That will mean that the slice of income on which a 20p tax rate is paid will have more than doubled during the lifetime of this Parliament. More than one in four of all taxpayers will now pay a marginal rate of tax at 20p in the pound.

    They are wide thresholds, so were the newspapers wrong? Am I indeed going to cut a penny off the basic rate of income tax? What the newspapers did know was that my control of public spending and borrowing and the responsibility of my Budget means that I can raise thresholds, widen the 20p band and also responsibly afford to reduce income tax as well. If I had put it all on tax rates, I could have taken 2p off the basic rate of income tax, but I preferred instead to raise personal allowances and widen the 20p band for those at the bottom end of the scale. In addition, I am able to reduce the basic rate of income tax by one penny to 23p in the pound.

    The small companies rate of corporation tax will be reduced to 23p in line with that, helping 400,000 companies. The main rate of corporation tax of 33p is already lower than in any other major industrialised country. I look forward to hearing what the Labour party says about the basic rate of income tax.

    Seventeen years of steady progress – so far – means that the basic rate of income tax is now a full 10p lower than the rate that we inherited in 1979. The standard rate is now the lowest for nearly 60 years – since Stanley Baldwin was Prime Minister and Wally Hammond scored a double century at the Oval.

    Another penny off the basic rate is a significant further step towards this Government’s target of a 20p basic rate of tax. For more than 7 million people, our promise of a 20p basic rate is already a reality. I am bringing other income taxpayers ever closer to that reality. A basic rate of 20p is a realistic and attainable goal for the next Parliament. We shall not be content until we have completed the task of getting it down to 20p and every Budget that I have presented has shown step by step how we shall get there.

    With increases in real earnings and all the tax changes in the Budget, a family on average earnings will be another £370 better off next year over and above inflation. We said it last time and it happened. The same family will have more than £1,100 more to spend each year after tax and inflation than they did before they voted Conservative at the last general election. In 1992, the background was one of a worldwide slowdown, but now we are enjoying strong growth and rising living standards, and we shall enjoy more of the same.

    In November 1993, I promised that I would put Britain firmly on course for a sustained period of rising prosperity and falling unemployment, based on low inflation and healthy public finances. I have done what I clearly said I would have to do and I have delivered on those promises.

    The Budget cuts public spending next year by £2 billion, and it generates an extra £0.5 billion in revenue through “spend to save”. It contains a balanced tax package – it includes tax cuts of £2 billion while it secures the tax base by £1 billion. Taken together, the effect of the Budget is to tighten fiscal policy and so protect healthy lasting recovery – and still achieve our target of cutting the basic rate towards our 20p goal.

    I am a man of the world: I realise that virtue does not always brings its own rewards. I am probably not a particularly virtuous Chancellor, but this virtuous Budget will bring rich rewards the rewards of economic success to the hard-working men and women who are now in the best economic circumstances for years. It will also bring rewards to the Government. We should never forget that good economics is good politics.

  • PMQT – 14 November 1996

    Below is the text of Prime Minister’s Question Time from 14th November 1996.


    PRIME MINISTER:

     

    Engagements

    Q1. Sir Sydney Chapman: To ask the Prime Minister if he will list his official engagements for Thursday 14 November.

    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.

    Sir Sydney Chapman: Does my right hon. Friend accept that the drop of more than 40,000 in the latest monthly unemployment count–which, I understand, is the largest monthly decrease for two years–illustrates yet again the success of the Government’s policies in promoting job creation? Does he agree that if United Kingdom employers had additional costs inflicted on them by the EU, that would put in jeopardy the downward trend in unemployment in our country, which has been going on for three years and stands in stark contrast with many other EU countries?

    The Prime Minister: My hon. Friend is entirely right, both about the welcome trend in unemployment and about the fact that unemployment is falling here in a way that cannot be seen anywhere else in the continent of Europe. That is not unrelated to the fact that we have avoided the burdens on business that so many of our partners have accepted. Of course, those burdens would have been accepted by the Opposition.

    Mr. Blair: Does the Prime Minister agree that today’s inflation rise, together with the sharp rise in long-term interest rates, should set the warning lights flashing? How does he square that with the promise that he made just a few months ago that he would meet his inflation target by the end of this year?

    The Prime Minister: I am afraid that the right hon. Gentleman is mistaken. I know that the retail prices index figures are complex, but I think that he has failed to understand the impact of this morning’s figures. I will explain to him what has happened, and he can then explain it to his Back Benchers. The figures are calculated year on year, and there was a quite exceptional one-month fall last October. That means that the 12-month year-on-year figure looks artificially high. I can reassure the right hon. Gentleman that that will correct itself over the months ahead and that we expect to meet our target.

    Mr. Blair: I do not think that we have ever heard a more ridiculous excuse for a rise in inflation figures. If the inflation figures were so good, why did interest rates have to go up? They went up because of the worry about inflation. Have we not heard it all before? We heard it all before the previous election and we heard it all before 1987, when the Government said that an economic miracle was under way. Will the Prime Minister answer these specific questions? On interest rates and inflation, will he confirm that Britain is now 11th out of 15 in Europe? Do any of our main competitors outside Europe have as high interest rates or inflation as Britain?

    The Prime Minister: I begin to suspect that the right hon. Gentleman truly does not understand; he is not being perverse–he genuinely does not understand. I will explain the position to him gently and easily. My right hon. and learned Friend the Chancellor raised interest rates to prevent inflation from rising, not as a result of existing inflation. To hear lectures on inflation from the right hon. Gentleman, when the lowest inflation achieved by his party in government was 7.5 per cent. and millions remember when it was 27 per cent., and when the inflation figure today is a statistical aberration because of a dramatic fall last year, only illustrates the fact that the Labour party is totally incapable not only of running the economy but even of understanding it.

    Mr. Blair rose–[Interruption.]

    Madam Speaker: Order.

    Mr. Blair: The House will have noticed that the Prime Minister did not dispute that we were 11th out of 15 for interest rates and inflation. If he disputes it, let him come to the Dispatch Box and say that the figure is wrong. The House will listen to him when he rises to his feet and tells us that 11th out of 15 is wrong. The simple fact, as on every other matter, is that when he said that he would cut taxes, he raised them, when he said–[Interruption.] Conservative Members do not like this because it is the truth. [Hon. Members: “More.”] They want more, so let us give them more–[Interruption.]

    Madam Speaker: Order. This barracking must stop. Other hon. Members have questions on the Order Paper and I want to call them.

    Mr. Blair: Let the Prime Minister dispute any of the following facts. He said before the general election that he would cut tax, and he raised it. Does he dispute that? He said that he would eliminate public borrowing, and he doubled public sector debt. Does he dispute that? He said that he would lick inflation, and it has risen. Does he dispute that? If he does not dispute any of those facts, or the fact that we are 11th out of 15 for interest rates and inflation, why should anyone believe a word that he says on the economy?

    The Prime Minister: I had fondly suspected today that the right hon. Gentleman might have broken with tradition and mentioned the fall in unemployment, which his party is supposed to care about–[Hon. Members: “Answer.”] I will tell the right hon. Gentleman that the October inflation figures were the fourth best that we have known in October since the war. It is ridiculous for him to talk to us about taxation and to proceed as he did today, when the deputy leader of his party has said that Labour

    “shouldn’t follow the Government down the road of cutting the basic rate of tax”

    and that under Labour there would certainly be higher tax. I see hon. Members nodding in agreement. The right hon. Gentleman criticises us about tax while his party advocates higher tax. He cannot stomach the fact that the British economy is in better shape than any Labour Government have ever achieved and that he could not match the condition that it is in. He will do everything that he can to pursue grievance politics and damage the British economy in his own interest.

     

    Q2. Mr. Booth: To ask the Prime Minister if he will list his official engagements for Thursday 14 November.

    The Prime Minister: I refer my hon. Friend to the answer I gave some moments ago.

    Mr. Booth: Will my right hon. Friend assure the House that at the European intergovernmental conference he will block any proposal further to erode our right of veto? Is he fully aware that signing the social chapter is not only expensive in itself but would render Britain powerless to avoid becoming uncompetitive as Europe introduces more and more imposts? The Labour party will never understand that, which is one of the reasons why we shall win the next general election.

    The Prime Minister: I can certainly and willingly give my hon. Friend the assurance that he seeks. The social chapter is a pipeline bulging with potential new burdens on business, all of which would cost jobs in the United Kingdom. As an illustration of the damage that a Labour Government would undoubtedly do, perhaps at some stage today the right hon. Member for Sedgefield (Mr. Blair) would like to condemn the Labour Member of the European Parliament for Durham, who called on the Commission to take action against the United Kingdom including

    “seeking unlimited fines against the UK Government”.

    I want to know whether that is Labour policy or whether the right hon. Gentleman will disown him.

    Mr. Ashdown: Did the Prime Minister see the warning from Coopers and Lybrand yesterday that if we continue as we have so far the Government will be technically bankrupt by the end of next year? [Interruption.] That is what it said. The Prime Minister obviously has not read it. Let me put it to him like this: if a council had done what the Government have done and doubled its debt in six years, doubled the level of borrowing to which it had said that it would adhere two years ago and then, to win an election next year, cut its taxes to make things worse, would he regard that as responsible?

    The Prime Minister: What the right hon. Gentleman said about the nation being bankrupt is just bizarre–it is just off the wall. If this is a bankrupt nation, why are all those overseas nations and overseas investors, both in Europe and beyond, investing in what he says is a bankrupt nation? I suggest that he looks at what is going on in Britain and stops taking advice from his economic advisers, who clearly know nothing about everything.

    Mr. Whittingdale: Is my right hon. Friend aware that this week marks the first anniversary of the death of my constituent, Leah Betts, who died as a result of taking a single Ecstasy tablet? Will he join me in paying tribute to Leah’s parents, who have worked tirelessly to ensure that other young people learn the lesson of Leah’s death? Will he confirm that the Government will give every support to the Bill to be introduced by my hon. Friend the Member for Milton Keynes, South-West (Mr. Legg), which will ensure that night clubs whose managers do not take proper action to stop drug trading will be swiftly and permanently closed?

    The Prime Minister: I am grateful to my hon. Friend for raising that matter. I met Mr. and Mrs. Betts some time ago and I think that the whole country remembers the tragedy that they had to endure and the courage with which they endured it. I certainly undertake to do all that I can to curb the menace of drugs and I will look most carefully at the private Member’s Bill that is to be introduced. If it is at all possible to give full support to that Bill, as I anticipate that it will be, then we shall certainly do so.

     

    Q3. Mr. Pike: To ask the Prime Minister if he will list his official engagements for Thursday 14 November.

    The Prime Minister: I refer the hon. Member to the answer I gave some moments ago.

    Mr. Pike: The Prime Minister will accept that there is still a major crisis over bovine spongiform encephalopathy. Does he accept that there has been enough dithering over the introduction of the selective cull scheme that was agreed at Florence? Will he give us a date for implementation of the scheme and say when we shall start to see an end to the problem?

    The Prime Minister: I do not know whether the hon. Gentleman was here yesterday or, indeed, when I answered those questions from the right hon. Member for Sedgefield. Since the hon. Gentleman is asking precisely the same question, I am tempted to refer him to the answer I gave some time ago. The reality is that we are pursuing with the Commission proposals for relaxing the ban on the United Kingdom and the export restrictions on animals from certified herds and on those that are qualified under the beef assurance scheme. Those discussions are going on at the moment.

     

    Q4. Mr. Robathan: To ask the Prime Minister if he will list his official engagements for Thursday 14 November.

    The Prime Minister: I refer my hon. Friend to the answer I gave some moments ago.

    Mr. Robathan: The whole House will welcome the Government’s decision in principle to support international action to prevent humanitarian catastrophe in central Africa. Will my right hon. Friend ensure that if British troops are sent to Zaire they will go with carefully considered and clear objectives, very precise instructions and a properly determined chain of command?

    The Prime Minister: I suspect that I speak for the whole House in expressing extreme concern at the situation in eastern Zaire. I believe that everyone is acutely conscious of the refugees’ plight and of the literally hundreds upon hundreds of thousands of people who will undoubtedly face death in the next few weeks unless urgent action is taken.

    My right hon. Friend the Secretary of State for Defence will be making a statement in a few moments. I believe that if western Governments have the capacity to help, there is a strong moral obligation upon us to help. We have considered very carefully how we can best provide that help and in principle we are prepared to provide troops for a multinational force.

    I have to say to the House, however, that the situation on the ground is complex and difficult, the terrain is tough, there is inadequate infrastructure and at this stage there is no clear ceasefire. So before sending British troops, or deciding upon the precise numbers, we need to be absolutely clear about what they are being asked to do in detail and the conditions in which they will operate. We also need to look very carefully at the particular circumstances that they will face. A reconnaissance team will be travelling to the region today to do that, and I hope that we shall be able to reach a firm decision before too long as to what troops are to go.

     

    Q5. Mr. Campbell-Savours: To ask the Prime Minister if he will list his official engagements for Thursday 14 November.

    The Prime Minister: I refer the hon. Member to the answer I gave some moments ago.

    Mr. Campbell-Savours: May I enter a last-minute plea that the Prime Minister reconsider his decision about a free vote for Conservative Members of Parliament next week on the banning of guns? Why cannot those hon. Members be allowed to exercise their own consciences and decide for themselves how to vote on an issue that the public regard as extremely important?

    The Prime Minister: We ought not to forget precisely what the legislation is about: the controls that we place on legally held firearms and the right of law-abiding citizens to use them responsibly. That seems to be a matter on which it is right for the Government to take a decision, as the House expected before the Cullen report was presented to it, and we have done so. Firearms legislation has not traditionally been considered on a free vote in the House and we are not inviting the House to do so on this occasion.

  • Mr Major’s Speech at the 1996 Lord Mayor’s Banquet – 11 November 1996

    Below is the text of Mr Major’s speech given at the Lord Mayor’s Banquet at the Guildhall in London on Monday 11th November 1996.


    PRIME MINISTER:

    You set out as the theme of your speech “Making Britain even Greater”. Not just – “great”. But – “even greater”. You acknowledge accurately what we are already and seek to improve it. That is exactly right.

    There is a part of the British character that undersells our achievements and over emphasises our difficulties.

    As a fault it is one on the right side. As a nation, we would not be comfortable with a boastful nationalistic posture, but we shouldn’t let our talent for understatement mislead others either about our prospects and abilities or our national character.

    My Lord Mayor, let me develop your theme. Because it is my theme too.

    Long gone are the days when the British economy was bedeviled by restrictive practices, strikes, high tax levels, runaway inflation and government controls.

    It has taken over a decade and a half to make fundamental, lasting changes to improve our economic performance. But we have done it. Some of it was very hard. There have been setbacks as well as advances.

    In the six years since I first spoke at this dinner, we have passed out of a turbulent recession, and emerged in vigorous economic health.

    We have turned round our economic prospects. We are back in the first rank. We are building a prosperity that will last.

    Too often, past recoveries were derailed by a yawning trade gap or soaring inflation. But not this time.

    All the evidence is that we have moved from a country prone to erratic bouts of high inflation, to one where subdued inflation can be the norm. If that is so, it is a change of historic importance.

    We now have a longer, more sustained recovery than any major European economy, with lower unemployment and inward investment flooding in.

    As a result, we are pulling ahead of the European field. To stay ahead we will need to go on pursuing the policies that are giving us this advantage.

    We have reined back public expenditure to well below the average of our European competitors – a difference worth £2000 to the average household in lower taxes. We now have the lowest basic rate of tax for 50 years, and a lower target still before us.

    Strikes are now down to a twenty-fifth of the 1979 figure. And huge swathes of industry – telecoms, gas, water, electricity, airlines and the bulk of the rail network have been transferred to the private sector, where they belong and are prospering. Daily we see evidence of this in lower prices for consumers, more investment in the future, and increased success in overseas markets.

    That is the argument for privatisation, and we shall look at more areas where private sector discipline can improve economic performance and service to the public.

    My Lord Mayor, the truth is that we may have to brace ourselves to hearing an increasing chorus describing Britain as a success.

    We are not going to throw away those hard won advances. The Chancellor of the Exchequer showed that when he acted on interest rates a week or so ago. And we’ll ram the message home with a prudent and sensible Budget – one that will keep us on the path of growth and prosperity for years ahead.

    Next year our country will have the most secure economic base for generations. We can turn to the future and plan with confidence.

    Ahead of us lie changes that we should embrace with enthusiasm because of the opportunities they bring with them.

    I believe we can expect a tremendous growth in world trade and economic development. Around the world trade barriers are withering.

    The dynamism of the single market is on our doorstep.

    Newly industrialised economies are emerging in East Asia and Latin America.

    The collapse of communism has opened up new markets and new competitors.

    We are well placed to take advantage of these opportunities.

    The world is turning to free trade. I welcome this. It makes countries more competitive, and more prosperous, and it gives consumers a better deal. It is in Britain’s interest, given our potential to win in the world markets of tomorrow. And it is the best way to help the developing world into long term prosperity.

    I have always felt there is something rather objectionable about rich countries grandly handing out aid with one hand, while with the other they block trade access that would enable poorer countries to become more self sufficient.

    Earlier today the Foreign Secretary and the President of the Board of Trade published a White Paper setting out our vision of global free trade by 2020.

    This means free trade in services – especially important for the City – as well as free trade in goods. It goes together with our determination to secure free and open markets for investment and capital.

    Day by day the very nature of trade is changing. It’s no longer dominated by freighters full of coal and steel. Now it’s as likely to be a service like broadcasting or tourism, or some tiny high tech component smaller than a fingernail assembled in four different pieces in four different continents.

    We are well placed to prosper in this new trading environment. In the last great age of British enterprise, the influence of this small island was spread world wide by the efforts of countless men and women, who often risked everything they had to trade and invest around the globe.

    That’s left the benevolent legacy that Britain has Links with nearly every corner of the world.

    They aren’t nebulous links. They have real substance. Britain is second only to the United States in our ownership of overseas assets around the world. Those assets don’t just earn dividends. They give us a vital edge in overseas markets.

    And the City of London remains an asset beyond price, as the dominant financial centre in our continent.

    And, on top of all this, we have the great advantage of the world’s international trading language. Worldwide, one in five people speak some English and it is an official language in over 70 countries.

    Six years of being Prime Minister has shown me these are real assets that can help us to realise our potential as one of the leading global trading nations of the 21st century.

    We are living in a world where the economic centre of gravity is shifting to the massive populations and economic growth of Asia and the Pacific Basin. In the global marketplace, we must compete with these countries in their markets and match their competitiveness round the world.

    We need to raise our eyes to this wider horizon. Some fear the development of global markets. They think it breeds insecurity. They believe that by shutting themselves off they can somehow be stronger. But history shows they are wrong. No country has ever prospered behind closed doors. The free movement of goods, people and ideas has always been a source of wealth.

    Our future economic security and prosperity will come from our success in competing in the free market, not trying to cocoon ourselves from it.

    So I am determined to develop further Britain’s position as the most competitive, low tax, enterprise centre in Europe.

    We have the lowest tax burden on business of any major European country. Low social costs, no Social Chapter and no minimum wage.

    This is what is making us more competitive and marks us out as a prime target for inward investment.

    Today’s investment is footloose and fancy-free. It will go where tax is low and opportunity is high. So it is coming to Britain.

    That’s why we’re bucking the trend and creating jobs, not dole queues.

    So we will continue with those policies and resist proposals that would damage our competitiveness, cost us markets, and lose us jobs.

    That is why the Working Time Directive, on which a European court judgement is expected tomorrow, represents an important point of principle.

    We are in favour of good working conditions in this country. They are very important. But the basic employee protections are long established in domestic law. There’s no case for extra prescriptive legislation from Europe – imposed by qualified majority voting against British objections – on matters that are now best resolved between employer and employee.

    That is why, if the court rules against us, we will require changes in European law to reinforce Britain’s protection from such legislation. Our partners know that. And they know that we shall insist upon these changes before we can conclude any new agreements at the Intergovernmental Conference next year.

    In the next decade the speed of change may worry some people. We British love progress. But we hate change. We shouldn’t – it will bring greater prosperity.

    We must look forward. No one ever reversed into prosperity. Progress will certainly change our lives. Information technology will bring new services available at the touch of a button in the home – banking, buying groceries, booking a flight, access to almost unlimited information and entertainment.

    We will see medical consultants diagnosing and even treating patients through information and pictures piped possibly hundreds of miles to their surgery.

    Dealings with government will be transformed – with services available on a terminal in your library or post office or even in your home.

    Children in schools may be coached at their own pace through a new generation of interactive software.

    These changes will happen. We’re making them happen. And this is a revolution where Britain is well placed to stay in front.

    Our telecommunications and media markets are amongst the most competitive and developed in the world. They will be able to take the new opportunities because two decades of deregulation and privatisation have enabled them to become market leaders.

    We are already one of the leading countries in the use of personal computers at home and in schools. And, by the end of this century, most households will have access to a range of new hi-tech services through cable, satellite and the telephone network.

    We’re becoming one of the laboratories of the world in the development of information technology. All of this means that the new, global information and media industries are truly industries in which we can win – and win handsomely.

    My Lord Mayor, the prospect before us is to become one of the world’s most successful global trading nations in the 21st Century.

    We have been through an industrial and economic revolution. We haven’t been beaten down by that effort. We’ve shown we have the skills and strength to win. But the last crucial ingredient for our future success is national self-confidence. There are always people prepared to write Britain off. They are always wrong.

    Listening to the political debate, you might sometimes get the impression that confidence is something we don’t have as a nation, or even that it’s something that we can’t have.

    But if you lift your eyes beyond the charmed circle of professional pessimists, you get a quite different picture.

    The City of London has the greatest concentration of foreign banks in the world.

    Britain has won more Nobel prizes than any nation except the US.

    As you pointed out, Britain has won a third of all Oscars in the last 30 years.

    Our streets are bustling with foreign tourists.

    Our pubs, clubs and restaurants are packed.

    Our television programmes are in demand worldwide.

    Our education system attracts half a million foreign students a year.

    Our theatres give the lead to Broadway.

    Our pop culture rules the airwaves.

    Our country has taken over the fashion catwalks of Paris.

    And our capital is described in an American magazine as “the coolest city on the planet”.

    So, my Lord Mayor, you are right. We have every reason to believe in ourselves.

    It’s time to parade our virtues as a country. To show – at home and abroad – how far Britain has come in economic progress and in the quality of our life and culture.

    We can surprise others as well as ourselves.

    We have a nation of talent in a world of opportunity.

    Not for a very long time have we been so well placed for future success.

    The fact is: Britain is back in business – and it’s back to stay.

  • 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.