Tag: Taxation

  • Sir John Major’s Interview on BBC Radio 4’s Today Programme – 27 June 2020

    Below is the text of the interview with Sir John Major on BBC Radio 4’s Today Programme on 27 June 2020.


    MARTHA KEARNEY

    There’s a focus on the terrible problems, the tragedies, caused by the pandemic. But we should also remember that there have been some positives too?

    SIR JOHN MAJOR

    There have been quite a few and there may be a lot still to come. Most crises throw up opportunities and I’m sure this one will. For example, they can change what was merely possible into something that becomes inevitable – because it is unavoidable.

    So among the losses of the virus, there will be gains. Some are apparent already. We’ve seen one with rough sleepers. This has been a problem for 20, 30, 40 years and yet for health reasons, it has been absolutely necessary to take rough sleepers off the streets. That has happened, is very welcome, and is great progress. We now need policy to keep them from returning there. That’s one illustration, of which there will be many more.

    MARTHA KEARNEY

    It’s an indictment that it’s taken a pandemic to address a problem like that and to have this sort of urgent action?

    SIR JOHN MAJOR

    There are some things that tend to do this. It’s likely, not certain though, that the lessons of this pandemic will lead to a tipping point in our value system. The virus has showcased inequalities, and as a result of that public opinion and priorities may change.

    If I can give some examples, everyone is aware of the remarkable job done by the National Health Service and the NHS is clearly going to have an even greater priority in funding, in research and in training than ever before. I think that the country as a whole will welcome that, and will want people who work in the NHS to be fairly treated.

    But beyond that, we’ve learned that there are many unglamorous jobs in our economy, often lowly paid, that are crucial to our way of life. I have in my mind care workers, who are generally lamentably paid – but also cleaners, porters, the refuse collectors who protect our health by collecting our rubbish, shop assistants, a huge number of people who we depend upon in our daily life. I think that has become clearer, and will have an effect on policy. It has become evident that a lot of people have been left behind by the changing nature of modern life. That has been happening over quite a long period and it hasn’t been sudden, but the shock of the virus has made that crystal clear.

    MARTHA KEARNEY

    So many of those people have borne the brunt haven’t they in terms of their health and lives?

    SIR JOHN MAJOR

    Some have lost their lives, some have lost their health. Many of the people who have cared for the sick have themselves been living in fairly deficient accommodation. Many of those who supported them have done so too, and common decency suggests that this has to be put right. I think that the national conscience post-Covid may well demand it.

    MARTHA KEARNEY

    It’s not just a question of national conscience is it? It’s a question often of Government policy, such as care-workers and we’ve seen terrible situations erupting in our care-homes. Social care has been an issue that has been neglected by many Governments hasn’t it?

    SIR JOHN MAJOR

    I agree with that. I think that it has been under-valued, and I don’t think it’s possible to under-value it any longer – and that may be an advance. I’m very conscious that it is easy for me, who is not in Government and doesn’t have to enact policy to point these things out. These are very big issues, and they are very complex for any Government. The solutions will be expensive and some of them will have to be long-term. But some are immediate. I don’t know if I speak for others when I say this, but it seems to me that ending dependence on food banks is essential. It’s truly shocking that we have food banks in 2020.

    Then there are the much bigger issues. Clean, healthy homes for example. We know that’s necessary, and steps have been made towards that by Government after Government. We don’t just need a policy for issues such as housing and those left behind by modern life. If we step back, we are still the fifth or sixth richest nation in the world and we have to acknowledge that. We need a crusade to improve the living standards of those people who have fallen behind.

    If this Government, and its successor Governments (because this is a very long-term project) tackle hardship consistently and enthusiastically – a crusade for a decade as it were – then it will do a great deal to end divisions in parts of our society.

    MARTHA KEARNEY

    You’ve acknowledged that that crusade would be expensive and you think that there might be more of a public appetite for this, but what are you talking about? Are you talking about greater Government intervention? We were looking back at some things you’ve talked about in the past, in 2015, you said some people think the solution is easy, penalise the rich, cut defences, cut overseas aid, borrow more and spend more. You’ve said that that argument is simplistic and naive. So what should the Government be doing?

    SIR JOHN MAJOR

    None of this is easy for any Government of any political ideology, but it seems to me that it is going to be inevitable that the Government takes a greater role in what happens in terms of the future, in terms of social care, simply because there is nobody else who can do it. The attractions of small Government are always ideologically obvious, but the practicalities, from where we are at the moment, are that the Government is going to have to take the lead in policies that deal with many of our social problems.

    I said that this is going to be extremely expensive, but there are other positives that are not as expensive. So how does the Government handle this? Let me make one point first, I think to put up taxes before the economy has recovered, which may take a while, would in my view be a mistake. Over time, there is little doubt that taxes are going to rise. For the moment, because interest rates are so low, and likely to remain so, it’s possible for borrowing to take the strain in a way it couldn’t have done a quarter of a century ago.

    MARTHA KEARNEY

    So even though our debt levels are now more than 100% of national income, which is eye-wateringly high in historic terms, you think there is still a case for more borrowing?

    SIR JOHN MAJOR

    I think it will be inevitable in the short-term. It would be politically impossible for any government not to deal with these problems. They will neither wish to, nor will be able to ignore them and I don’t think that, at this moment, they can tax. So I think there is scope in the short-term. Not forever – and there is no magic money tree, let me make that clear – but for a period, until the economy has recovered and taxes for some people can then go up.

    MARTHA KEARNEY

    The money would be spent on the left behind people? Continuing perhaps with the furlough scheme in some sense after it’s due to end?

    SIR JOHN MAJOR

    I don’t want to be prescriptive about what needs to be done. There is a whole range of options and priorities may become clearer as we move out of lockdown. But clearly the Government is going to have to borrow a great deal, and there are one or two imaginative things that previous Governments may have been against, which they may wish to look at. As an example, I think you can use borrowing as a social tool. For decades, our nation has been told to save for retirement and, over the last few decades, many people have done so in order to be secure in their retirement.

    With interest rates now at their present level, which is in some ways helpful, the people who have saved and who have done what Governments have asked them to do, are now earning nothing on their savings. This is causing resentment and embarrassment.

    One option might be to offer very long-term bonds, say twenty years, to UK nationals at a slightly higher rate of interest, and perhaps with the added advantage that if the investor dies during the period of the investment, then the sum they invested is excluded from inheritance tax. There are lots of variants, investment in bonds for hospital building or social housing. Of course, the Government can borrow more cheaply from the markets, but that often means a foreign commitment rather than a domestic commitment. I think there would be an appetite for domestic investment from many people in the UK.

    MARTHA KEARNEY

    I wanted to move onto another very important area and one which I know you care a great deal about, the future of the United Kingdom itself. We’ve seen different parts of the United Kingdom, different countries, moving in different directions and at different speeds over coronavirus measures. How do you see the future?

    SIR JOHN MAJOR

    The priority in the future is, in my mind, to keep the United Kingdom as a single entity. I believe every part of it is better off within the United Kingdom rather than split away, for a range of complex reasons that I and many other people have made clear in the past.
    As policy develops, it would be much more difficult for the Scottish Nationalists, for example, to win a referendum in the short-term, because of the economic difficulties that they, too, will face as a result of Covid. In that period, the UK Government should work very hard to try and reconnect to a greater extent with the way the Scots think and act, and try and persuade away the arguments for breaking away from the United Kingdom.

    There may be a breathing space to do that, and we should hug the regions closely and make sure they are properly consulted – as they should be. They need to be given a great deal of freedom as they are now, but we must do everything we can to keep the United Kingdom as an entity. Without it, we are all much weaker.

    MARTHA KEARNEY

    And finally, we’ve been talking about the kind of lessons to be learned in social terms and in economic terms? What about the way that the pandemic has been handled so far? Do you think that there’s an urgency that we look at what has been happening in recent weeks in order for us to be able to handle any potential second wave more effectively?

    SIR JOHN MAJOR

    In due course there will be a full-scale Inquiry, but the time for that is not yet. It might be practicable to have what you might call a “quick and dirty” look to see what lessons can be learned in case it returns in the winter, or next year. But we mustn’t overlook, and I hope we won’t, the many positives there have been across the country that have arisen solely because of the crisis that we’ve passed through.

    MARTHA KEARNEY

    Sir John Major, many thanks indeed for talking to us.

    SIR JOHN MAJOR

    Thank you.

  • Sir John Major’s Comments on the Economy – 5 July 2009

    The text of Sir John Major’s comments on the economy, made in an interview on 5th July 2009.


    SIR JOHN MAJOR:

    [Sir John was asked how deep the recession is].

    I think it’s as deep as I can ever remember. If you look at the contraction in the economy which is close to 5% on a year on year basis and then look at the size of the deficit, which is 175 billion or thereabouts on best estimates, about 12% of GDP, that’s a territory we have never before been in in peace-time, so this is about as bad as it has ever got, so I think the recovery pattern, you may get a small dead cat bounce here and there, but I think the recovery pattern will be very slow, and the pace and strength of the recovery may well depend on decisions yet to be taken about public expenditure and tax.

    [Sir John was asked about stories of severe public service cuts].

    I’m unsurprised by that story, I would be very surprised if departments up and down Whitehall and local authorities up and down the country weren’t looking at very significant reductions in expenditure at the current time. It would be remiss of them not to do so.

    I think one just has to look at the figures. If you’re talking of a public sector deficit of 12%, let us make the happy assumption that half of that may be wiped away by growth over the next few years, I think it’s questionable that it will, but on happier assumptions, it just conceivably might. You’ve still got a public sector deficit of around 90 billion, even that is over twice as high as we have ever had before, at the worst of any recession, even assuming we have that growth.

    Either we deal with that with public expenditure reductions or we deal with it in tax rises, or more likely a mixture of both. Let us assume for a moment that the Prime Minister’s plan not to cut public expenditure significantly holds steady. If that is the case, then you are then beyond a shadow of doubt facing very significant tax increases. Now difficult to be precise of how big, but I think we can begin to make a guess.

    [Sir John was asked whether taxes could only be on the rich].

    No, well of course, there’s already been an increase in the upper rate of 10% from 40% to 50%, but the rich can’t remotely provide the sort of money we’ll be needing, that’s relative petty cash of what we’ll be needing.

    So you’ve had an increase of 10p in the upper rate for the rich, I think you may well get 5 pence on the standard rate, you might well get VAT at 20%. Even if you got that, you would not begin to bridge the gap that must be bridged. So it would be significantly larger than that, on the assumption you aren’t going to make public expenditure reductions.

    So I think the debate needs now to concentrate on the reality of where we are, and it doesn’t matter who is in Government now, this mess isn’t going to change with a change of government, someone, whoever is in Government now or later, is going to have to correct the public finances. And if they don’t, if they just continue with the finances of this huge deficit, at some stage our national credit rating would collapse, if that happened, sterling would be in difficulty, if that happened you’re get soaring interest rates and all the good done in the 90s when we took a lot of pain to get inflation down would have been thrown away.

    So the situation we are now in is pretty serious and has been built up over many years. Normally in years when you have a good economic record, you begin to repay debt and you bring the deficit down. What has happened, particularly since 1999, is that even in good years with a boom, the debt has risen. Now of course the boom has gone, we have the debt, and we have the problems of recession, adding to that on a daily basis.

    [Sir John was asked if he spoke to current Conservative leaders].

    My conversations with current Conservatives is private and I have my own views, and I speak for myself and no-one else.

    I think the public really need to understand how deep this is. These silly exchanges about “Mr 10%”, and things of that sort, totally under-rate the difficulties that we are now facing. People need to understand that this is an unprecedented situation. We have never seen anything like this in your lifetime or mine.

    [Sir John was asked about whether politicians can now talk more about tax increases].

    It may well be if you talk about cuts you get punished by the electorate as you did in the past. There are two things crossing over here, there is the question of whether you can talk about cuts and the question of trust. Trust has been eroded over a long period and I think the present Government have done a great deal of damage to trust in Parliament and to trust in Government. But now, the public are going to find out in the next few years exactly how serious what is now happening will be.

    I think the party that tells them the truth, in the most explicit terms, will be the long-term gainer. Whether they will be the immediate short-term gainer in the battle of oratory between now and the General Election I can’t say, but in the medium and long term, the party that tells the public how deep the problem is and what needs to be done about it is the party that will earn the respect of the public and the trust of the public and the party that will be the long-term gainer, in my view.

    I think we have to address the reality, you have a deficit of 180 billion;

    Can you continue with that? No.

    Have you got to narrow it? Yes.

    Can that be done solely by growth? No.

    So how do you bridge the gap, and what are the implications of that?

    And there are some opportunities here. When people think of cuts, I would argue that we are a heavily over-governed nation. When you have subsidy to some parts of the country greater than that is provided in Cuba, you realise you are beginning to become a bit of a nanny state.

    There is an opportunity not just to deal with the problem, but to downside the sum total of Government, which I think we should do. And by downsize the sum total of Government, I don’t just mean reduce the number of MPs, although I think that is right. I do mean reduce the size of the Government machine, we have no need for a 120 Ministers and 60 PPSs, and you could reduce that by a third quite comfortably, and

    I’d happily explain how.

    And then when you’ve done that and down-sized Parliament in that respect, I think you downsize what Government does. You can’t forever have the Government increasing its role at the expense of private endeavour and the private sector. It is a route that ends eventually in national bankruptcy, which is where the Government are heading us.

    So I think there is a philosophical opportunity to reshape the country as you deal with the problem.

    [Sir John was asked whether this was a 1979 moment].

    I very much hope that will be the case, though in many cases the problems now are more serious than 1979. 1979 was very bad, and it was only because of the disaster of the 1970s that the reforms of the 1980s were politically possible.

    I think now, with the problems we’ve got, that there is scope for bigger and more fundamental changes in the next Parliament and beyond.

    [Sir John was asked whether David Cameron was a Margaret Thatcher politician].

    I think he’s a David Cameron politician. No-one can know what someone is like until they’re in the position. And often events make people. And I think he’s going to face some very uncomfortable decisions in the future. I think he’s done a remarkable job of changing the Conservative Party in the right direction for the last two or three years, so I have a very high opinion of him and I very much hope he can do what still needs to be done.

  • Sir John Major’s Interview on the Andrew Marr Show – 13 July 2008

    Below is the text of Sir John Major’s interview on the BBC’s Andrew Marr show, broadcast live on 13th July 2008.


    ANDREW MARR:

    Welcome Sir John.

    SIR JOHN MAJOR:

    Good morning Andrew.

    ANDREW MARR:

    How bad is it going to get in your judgment?

    SIR JOHN MAJOR:

    I don’t think it’s quite clear how bad it will get. I think we’re going to be very close to recession, if not technically in recession, two quarters of negative growth. I think that’s entirely possible. But the problem we face at the moment is rather different from the one we faced in the early nineties or indeed in the early eighties.

    ANDREW MARR:

    In the early nineties we had that terrible problem of negative equity in particular and unemployment shooting up. A lot of people will say well it can’t be that bad this time round.

    SIR JOHN MAJOR:

    Well I said just now the problem was rather different. If you recall, on the day I became Prime Minister we had interest rates at fourteen percent. We had inflation at nine and a half percent. We had unemployment beginning to rise. All that was happening. We were heading for a recession as a result of the nineteen eighties boom.

    Now it was necessary then to deal specifically with one primary problem. And that primary problem was endemic inflation which had damaged the economy time and time again in the last forty years. And it’s precisely for that reason of course that Margaret Thatcher and I entered the exchange rate mechanism to bear down on inflation which was our predominant problem. And we did so.

    And the result of that of course, the figures when I became Prime Minister in nineteen ninety were awful. When we left I think by common consent we left the best economy people had seen for a very long time. But in the interim some very painful things were done and you mentioned some of the results of those painful things. But they were done to get inflation down, to put the economy on an even keel. And as a result of doing that we’ve had an extremely good economic run for a very long time.

    So the circumstances are different from the nineteen nineties.

    ANDREW MARR:

    Are we going to have to see similarly painful things in order to get inflation down now? And by the way what do you think inflation really is now?

    SIR JOHN MAJOR:

    Well on the second point it certainly isn’t the figures produced either by the Cost And Prices Index or indeed the Retail Prices Index. If you recall the government changed the mechanism for calculating the CPI. They took out housing costs and they took out Council Tax. Now that for many people’s expenditure is probably forty five percent of their expenditure. So the CPI is the government’s preferred measure. But it’s an extremely misleading measure in terms of people’s spending patterns.

    ANDREW MARR:

    So do you think inflation’s what double, double the CPI figure?

    SIR JOHN MAJOR:

    Oh I think more than that.

    ANDREW MARR:

    More than double? Where would you put it?

    SIR JOHN MAJOR:

    Well I think it depends precisely where your income group is.,

    ANDREW MARR:

    But roughly?

    SIR JOHN MAJOR:

    I would think for most people on average incomes if you look at what’s happening to food, you look at what’s happened to heating, you look at what’s happening to the expenditures that most people cannot avoid, I would say inflation is probably double the RPI figure so we’re between eight and ten percent.

    ANDREW MARR:

    The government says that most of this, if not all of it, is imported. It’s what’s happened to oil prices, it’s what happened to food prices, it’s, it’s a global problem, a banking problem and, and Britain is relatively well placed to deal with this.

    SIR JOHN MAJOR:

    Well to the extent it’s well placed it’s because of the structural reforms of the eighties and the destruction of inflation in the nineties. It’s got very little to do frankly with what the present government have done. But as far as the cause of the problem is concerned the government’s mantra certainly is that this is an imported problem and that is partly true.

    It is certainly true that there is an element of imported inflation with oil prices. That is undoubtedly true. What is equally true I’m afraid is that because of the actions the government themselves have taken over the last ten years or so we are not in a very good position to deal with that problem.

    ANDREW MARR:

    Actions and spending too much?

    SIR JOHN MAJOR:

    They certainly can’t cut taxes because they, in terms of increasing consumer choice because they have such a big fiscal deficit. They can’t increase public spending because they’ve already spent the, the money that we would normally use. So they have cut off the solution to this problem just as the problem has arisen.

    And it’s quite extraordinary that over ten years in which the world has had the most benign economic circumstances for a very long time, that we have run up such a huge fiscal deficit. We have increased taxes to the extent that we’ve increased taxes. And we have a trade deficit that’s about between fifty and sixty times higher than it was in nineteen ninety seven. So the problem is although there is a problem the traditional solutions to that problem are not practical at the moment.

    ANDREW MARR:

    Are not available. So what can they do do you think?

    SIR JOHN MAJOR:

    Well I think to a certain extent they’re going to have to sit this through. It’s going to take a couple of years to work its way through. Nobody’s quite certain how serious it’s going to be. I think it is a very serious problem. Some of the talk of Armageddon I think is overdone. I don’t believe that.

    ANDREW MARR:

    You travel around the world. You’re in the States a lot. These two big mortgage companies which are deeply in trouble in America, is that kind of thing going to be, be felt here? Is that, is that part of the crisis?

    SIR JOHN MAJOR:

    Well I think that must be one of the great worries that you’re going to have the collapse of a large institution, a large financial institution, and that would present very real difficulties for the Bank of England. But here again I’m afraid the regulatory changes made in nineteen ninety seven, certainly, if one puts it as its kindest, muddied the regulatory system.

    And the result of that may well have been Northern Rock. So I think we do have to look very carefully at precisely where the responsibility is for regulation. Some people I think are pretty unclear about that. We need to be absolutely clear about that.

    And the other thing that is essential, not something I can see that can be done over night, but at the moment the government, the state, are consuming between – depends on whose figures you use, the government’s or the OECD’s – between forty two and forty five percent of the national income. Well you and I are old enough to remember Roy Jenkins saying once you came above forty percent you were damaging a plural society.

    Now on the government’s own figures it’s around forty two to forty three percent. On the OECD’s forty five. So undoubtedly for the medium term health of the economy the proportion of public expenditure to national income has to fall. Now that plainly can’t be done over night, but it must be an objective for this chancellor and future chancellors.

    ANDREW MARR:

    Yes. Should be said you weren’t in parliament but your party wasn’t vociferously opposing any of those increases in public spending as they happened.

    When we look at what’s going to happen now, however, house prices are bound to fall quite sharply. Everybody accepts that.

    Unemployment’s about to go up again. And we’re going to see inevitably increasing numbers of bankruptcies aren’t we?

    SIR JOHN MAJOR:

    I think you are. Quite how bad that will be I’m not sure. Once again the unemployment figures are quite difficult to disentangle because the method of calculation now is different from the past. And a huge number of people who perhaps traditionally would have appeared in the unemployment figures now receive Invalidity Benefit and are excluded from the unemployment figures. So unemployment, if you’re seeking the comparison you made at the outset with the early nineties is certainly a good deal higher than the government say. There are going to be more bankruptcies.

    ANDREW MARR:

    Again, have you any sense of where it is really?

    SIR JOHN MAJOR:

    I think there have been so many technical changes.

    ANDREW MARR:

    It’s impossible?

    SIR JOHN MAJOR:

    I mean well I think if one wished to be fair to the government I think it’s impossible to make a guess. But substantially higher than the

    figures they produce. I think that is true.

    ANDREW MARR:

    Right.

    SIR JOHN MAJOR:

    There are going to be some more redundancies. I think that is clear. There are going to be some bankruptcies.

    Depending upon how liquid the banking system is and how available loans are will be absolutely crucial to determining how bad the situation is. So the underlying sub prime mortgage problem which has damaged inter-bank lending for example is very important.

    Fear is toxic and…

    ANDREW MARR:

    And it’s spreading?

    SIR JOHN MAJOR:

    And it is spreading. And that is a real, quite apart from the realities of the situation that, that toxic element, that fear element is very serious. And I think the government and the bank will need to look and see how they can give some hope, some circumstance where one can see things beginning to get better. And the sooner we can identify some of that and put that in place I think the better it will be for everyone.

    ANDREW MARR:

    Can I ask you about the Conservative Party because in many ways they are playing tunes that you will find familiar, what David Cameron said about responsibility and so on. You, I think you talked about we should understand a little less and condemn a little more and got into some trouble of that but there’s certainly echoes.

    SIR JOHN MAJOR:

    Well it was, that’s because it was totally distorted. I mean…

    ANDREW MARR:

    Inevitably. It always is.

    SIR JOHN MAJOR:

    When I, well I dare say. I mean it’s a dangerous territory, but I mean there were two things. I said “back to basics” which was actually about traditional education and nothing to do with the matters that subsequently earned huge headlines. And when I said we condemn a little, should condemn a little more and understand a little less I was talking specifically about making sure very young children under the age of two or three actually understood there were boundaries and one didn’t instinctively say oh well, isn’t he lovely, forget the fact that he’s breaking all the crockery.

    ANDREW MARR:

    But, but with knife crime and stuff people are talking about this again.

    SIR JOHN MAJOR:

    But of course it was wholly misunderstood.

    ANDREW MARR:

    Yes but I mean, but in a sense what David Cameron is saying now?

    SIR JOHN MAJOR:

    Yes.

    ANDREW MARR:

    It’s quite similar to what you were saying.

    SIR JOHN MAJOR:

    It’s very similar. And indeed I think the underlying prescription needs to be similar as well. If you look at knife crime in the cities, if you go back to the time when I was a boy I, I lived in the middle of Brixton at a time of quite a lot of social turmoil, when there was relatively little to do. But there were gymnasiums, there were places where you could go and you could box, you could play indoor soccer, you could do things of that sort.

    Now one of the reasons I set up the Lottery which the government have ransacked and taken a large part of the money sadly, was to set up things like that right the way through the big cities. We need to find things for our young people to do. In the early part of the century, the previous century when there was a lot of trouble with youngsters, er, youth clubs, the Scouts, things like that were established and became set up.

    Maybe not the same prescription. But we certainly need the opportunity for sporting facilities and arts facilities inside the inner cities so that youngsters have something to do when they go out rather than stand on the street corner. Give them something to do. Give them the opportunity to do it. I think that would be expenditure well spent. It was the purpose of the Lottery. I very much hope and believe that a Conservative government will return the Lottery to its original intention.

    And I think we should work with the voluntary agencies and bodies like Chance To Shine, for example, who do so much to spread particularly cricket, to bring those leisure opportunities to young people in the cities. We need to help them. Of course we condemn people who use knives. That is unacceptable by any measure. But let us give them something to do that will attract their interest. And if that isn’t worthwhile expenditure I cannot myself imagine what is.

    ANDREW MARR:

    Could you imagine yourself coming back into public life? Just listening to you talk now.

    SIR JOHN MAJOR:

    No, I don’t think so. No, no. I was in public life for a long time. I enjoyed most of it but I don’t think I’m coming back, no.

    ANDREW MARR:

    If, if those are areas where you and David Cameron would feel comfortable it seems to me in one other area the Party has changed radically from the Party that you were leading. In those days Euro-sceptics were a very, very difficult minority that you were struggling with. Now they’re in charge.

    SIR JOHN MAJOR:

    Well they were certainly extremely difficult at the time. That is absolutely true. But I think public opinion generally has changed. There were some issues particularly on Europe magnified of course by our exit from the exchange rate mechanism.

    I mean because that was the European exchange rate mechanism, it was magnified out of all proportion. Had it for example been an American exchange rate mechanism we wouldn’t have had so much trouble with it. But there was a lot of Euro-scepticism. I think there is more unity in the Party. I, I hope it is not a unity that is wholly Euro sceptic. Europe is still our largest trading partner. It is our, it is our nearest partner. It is an enormous market. But I think a too prescriptive Europe wasn’t amenable to me in the nineties, let alone the Euro sceptics.

    And I don’t think it’s amenable to most people in this country. And I think the prospects now of Britain as a nation having more allies amongst the members of the European Union is greater now than it has ever been. When Margaret was there and when I was there we were often isolated in Europe. That is no longer the case.

    ANDREW MARR:

    One other thing which has come back again I’m afraid is sleaze. I mean the Conservative Party’s got yet more problems over who’s paying what to whom. So has the Labour Party. It’s not one party or the other.

    SIR JOHN MAJOR:

    Well indeed it isn’t.

    ANDREW MARR:

    But this must make you kind of despair because you know it was, it was supposed to be something that was around in the eighties and then disappeared again, whiter and white, purer than pure. It’s back. Both parties.

    SIR JOHN MAJOR:

    Well I was concerned in the mid nineties which was why I set up the Nolan Body in the first place and that was widely criticised by many people.

    But I felt, frankly I didn’t know how widespread it might have been. My inclination was to think that it wasn’t very widespread and Nolan would show that. Well in fact over the years it seems to have been rather more widespread than I had thought.

    ANDREW MARR:

    Is there anything can be done about this?

    SIR JOHN MAJOR:

    Well I strongly believe that it is desirable to audit which Parliament rejected last week. I think it is desirable to audit the money received by members of Parliament, the public funds received and the expenditure. I’m less certain about the publication of individual figures. They can be distorted and they can be utilised in a way that is often rather unfair.

    But I do not see any case whatsoever for there not being a private auditor set up by the Speaker or, or whomsoever who has access and audits the expenditure made available to MPs and the way they use the money made available to them and effectively producing an audit certificate saying this is within the rules. I see no credible case against that and I am absolutely baffled why the government opposed it.

    ANDREW MARR:

    When you look at Gordon Brown today human sympathy or Schadenfreude?

    SIR JOHN MAJOR:

    No, no, no, no. No. Well I hope it’s human sympathy. I have very strong disagreements with many of the things politically that Gordon Brown has done. But he’s doing an extremely difficult job. He’s doing it in extremely difficult circumstances.

    They may be partially of his making. But nonetheless it’s not helpful to the country or anybody else to have some of the comment about him that there has been and I, I regret that.

    ANDREW MARR:

    All right. John Major for now thank you very much indeed.

  • Mr Major’s Speech to the Bow Group – 23 February 2005

    The text of John Major’s speech at the annual Bow Group lecture, made on 23rd February 2005. The speech was entitled – The Conservative Economic Inheritance – An Examination of Reality.


    JOHN MAJOR:

    The economy is central to politics: now is a good time to look beyond the soundbites and separate fact from fiction.

    First, some background.

    By the late 1970s, our economy was a basket case. Inflation and industrial unrest had dragged us down. We were “The sick man of Europe”.
    In the 1980s, market reforms turned us once again into a competitive nation.

    In the 1990s, inflation was – finally – tamed.

    The 1970s were Labour years.

    The 1980s and 1990s were Conservative years during which the Labour contribution was to oppose the Government’s policy.

    There is a tendency to take the present Chancellor of the Exchequer at his word. A small vignette suggests this can be a mistake.

    On his first weekend as Chancellor, Gordon Brown was given a presentation on the economy. “The figures are fantastic”, he was told by officials at the Treasury, “much better than predicted”.

    “What am I supposed to do”, asked the Chancellor, “write a thank you letter?”. I use the neutral word “asked”: yet, in his biography of the Chancellor, Tom Bower’s use of “snarled” gives a more vivid picture of the exchange.

    That same weekend, the Chancellor’s spin doctor was despatched to brief the media that “errors” and “black holes” had been discovered, all of which “threatened a nightmare”.

    The spinner of this little fib was Charlie Whelan, the Chancellor’s “Man in the Red Lion Pub”, whom you may recall as Alastair Campbell without the charm.

    It was – of course – untrue. He knew it to be untrue. We all now know that it was untrue: none of these “nightmares” emerged. It was pure scene setting. Brown’s intention was to create a climate in which he – and he alone – could claim credit for the economic conditions he had inherited. It also had the secondary purpose of laying the groundwork for future tax rises to be blamed on his predecessors.

    So – what do the figures tell us?

    They are very clear.

    The economy began growing in the First Quarter of 1992.

    By 1997, there had been five years of progressive growth every Quarter.

    During that five year period:

    – interest rates were more than halved – to 6%;
    – inflation fell to 2.6%;
    – unemployment had been falling monthly since 1993;
    – fiscal deficit was narrowing and moving towards surplus.

    Moreover, despite the outcry over alleged punitive Tory tax rises between 1990/97, the facts are striking.

    In 1990/91, tax as a percentage of GDP – the accepted measure – was 35.9%.

    In 1997/8, it was 36%. The net increase over 7 years was 0.1%.

    As Treasury officials had told the incoming Chancellor – the figures were “fantastic” and better than those left by any previous Government.

    Indeed – as corroborative evidence – even as the new Chancellor denounced the Conservatives, he offered tacit admission of our legacy by sticking rigidly to our own expenditure plans – an unprecedented act of homage.

    Economic conditions unwind over a long period. Neither good nor bad policy reveals itself immediately – only in slower time can it be judged.

    When Gordon Brown boasts of the record length of continual growth he is right – he just fails to mention it began in 1992 and that the first half was during the years of Conservative Government. He offers no glimpse that it was created by those Conservatives who tamed the late 1980s boom, bore the pain of squeezing inflation out of the system, and who instigated inflation targeting. Norman Lamont and Ken Clarke should take a bow but the Chancellor writes them out of his script.

    What Gordon Brown writes into his script is the charge that the Conservatives were responsible for “boom and bust”. This is one of those fibs, repeated ad nauseum, until it is so fixed in the public mind it becomes the accepted truth. It is a rewriting of history. In fact, before 1990, all Parties could have had that charge levelled at them: “stop-go” had bedevilled our economy for decades. But, in the early 1990s, it was a Conservative Government that put an end to boom and bust: and it has not returned since.

    But not everything has rolled on unchanged.

    Since 1997, the economy has continued to grow, but taxes have grown far faster. Using the same measure for calculating tax rises as in the Conservative years – the ratio of taxes to GDP – we see taxes have risen from 36% of GDP to 37.1%. This is eleven times as fast. Moreover, Treasury estimates suggest a yet faster rate of increase of taxes in the next Parliament. The IFS, IMF, NIESR, CBI, BCC, and the OECD all concur that taxes must rise because this time, Charlie Whelan’s fictional “black hole” in the current account is real.

    Income tax rates have not risen – they are too visible, too politically sensitive.

    But the facts are as follows:
    – 7½ million taxpayers have been dragged into a higher marginal rate of
    tax by under-indexing thresholds;
    – National Insurance has gone up for Employers, Employees and the Self-employed; the earnings limit has also been abolished, despite the Prime Minister’s categorical assurance it would not do so;
    – Tax allowances – such as those for married couples, have been abolished.
    – Stamp duty tax on house purchases rise – again and again and again;
    – Mortgage Interest tax relief has been abolished;
    – The Council Tax payer has seen bills soar – far beyond inflation.
    – Fuel tax and Vehicle Excise Duty rise repeatedly.

    New and imaginative taxes have been invented, including a tax of £5 billion every year on Pensions creating a crisis that is continuing. The sum total lost to Pensions now exceeds £40 billion. As a result, many pensioners may have to retire later or live on less than they had anticipated.

    The Chancellor was given specific warnings about this – from many quarters: even the Prime Minister knew it was foolish but allowed himself to be overruled by the Chancellor. This folly – which will affect pensioners way beyond this Government’s term in Office – was wholly avoidable.

    Thus far, the cumulative total of tax rises is 66 – despite a growing economy yielding more revenue for the Exchequer without any additional rises whatsoever. Gordon Brown has out-taxed all his predecessors – and every commentator predicts more to come if Labour win the next election.

    Perhaps a more vivid indication of the scale of those rises is this: if they had all gone on to the standard rate of tax, rather than to every nook and cranny of our lives, the basic rate of tax would have risen to 39p in the Pound.

    The market reforms of the 1980s and the death of inflation in the 1990s created the robust and growing economy Gordon Brown inherited.

    But, although there may be a time-lag, tax rises on this scale are bound to have an effect:

    (i) The growth in our productivity has collapsed by one-third since 1997. There is still growth, but far less than in 1997.
    (ii) Private (non-residential) Investment has fallen to 1.1% per annum over recent years – one-tenth of the 11.2% in the mid-90s.
    (iii) We now have the largest Trade Deficit for over 300 years. The Chancellor hopes export growth will correct this but all the signs are that it is set to widen further as our share of world exports is falling.
    (iv) As a competitive Nation, we have dropped from 4th in 1998 to 12th in 2001, and 15th in 2003.
    (v) Household debt is soaring and savings are falling. Under Gordon Brown, the savings ratio has never been above 6.7%; between 1991/7 it was never below 9.3%. This is not a semantic statistic: it means people are becoming very vulnerable to unexpected economic shocks. Live today – and pay tomorrow – is a risky notion if taken too far.

    I could go on – but the central point is simple: slowly, the strong economic position that Labour inherited in 1997 is deteriorating.

    It has not gone – yet. But it is getting worse.

    We will hear none of this from the Chancellor.

    He will talk of success – not tax rises.

    He will talk of growth – not loss of productivity and competitiveness.

    He will talk of enterprise – not the regulatory mountain that now engulfs business and costs them £30 billion.

    So – when we hear exaggerated claims from the Chancellor – a little caution in accepting them would be well justified.

  • Mr Major’s Commons Speech on the 2001 Budget Resolutions Debate – 12 March 2001

    The text of Mr Major’s Commons speech on the 2001 Budget Resolutions Debate, made on the 12th March 2001. This was Mr Major’s last speech in the House of Commons.


    MR JOHN MAJOR:

    Mr Major: “Education, education, education” was originally a cry from Lenin, who did not mean it. I suspect that the Secretary of State, who has just left, does mean it. He is sincere and, in his unavoidable absence, I should like to congratulate him on graciously adopting some of the: proposals of my hon. Friend the Member for Maidenhead (Mrs. May), who is shadow Secretary of State. That behaviour is as welcome as it is unusual, and I hope that future Governments of both complexions will be inclined to follow that particularly good example.

    Turning to the Budget as a whole, I am pleased that the Chancellor has cut taxes and given back to taxpayers a small proportion of the money that he has extracted from them in the past four years. His generosity is not surprising: notwithstanding the problems of foot and mouth, a general election is pending and the public accounts show ample scope for tax reductions and, perhaps, modest expenditure increases. Yet, only a few weeks ago, when the Opposition said that, they were condemned as “irresponsible” by spokesmen from the Treasury and elsewhere. We now see how shallow those attacks were, for if the Opposition were irresponsible, why has the most prudent of Chancellors done what they recommended? In truth, my right hon. and hon. Friends were right to identify the scope for tax reduction. Not only were they right but, if the economy stays on course, there may be scope for even more tax cuts in future.

    A principal reason for that remarkable leeway is the sheer size of tax increases over the past four years. We must disentangle fact from fiction. Prior to the Budget, there had been 26 increases in personal taxation and 19 increases in taxes on business in this Parliament. That number has risen slightly although, given the Chancellor’s remarkable gift for sleight of hand, one must study the small print carefully to find out precisely how many tax increases there are. However, their sum total is enormous. The abolition of tax credits on dividends alone will cost shareholders about £6 billion in the current tax year. The reorganisation of advance corporation tax at the beginning of this Parliament has affected the quality of pension funds for millions of elderly people and cost those funds more than £5 billion during the course of this Parliament; it will do continuing damage until it is changed.

    Even after offsetting tax reductions – of which there have been some, mostly minor, examples – the Inland Revenue’s overall tax yield has risen by an astonishing one third during this Parliament. No wonder the savings ratio has fallen so badly. That is not a wicked Tory calculation; an independent survey shows the average family to be worse off than it was in 1996. The old tax-until-the pips-squeak bruiser Lord Healey must be salivating enviously at the extent of the tax rises forced through by the Chancellor.

    More people have been dragged into tax. An extra 2 million now pay tax; 28 million pay it, compared with 26 million three years ago.

    Mr. Mackinlay That is just nonsense. What about unemployment?

    Mr. Major If it is nonsense, it is Red Book nonsense. Those figures come from the Red Book. Before the hon. Gentleman mutters into his non-existent beard, he should read the Red Book and check. It is possible that the Chancellor has given us more duff facts; we are used to that. However, if they are duff, that is his responsibility, not mine.

    There are 2 million more taxpayers and 700,000 more higher-rate taxpayers than there were four years ago. In addition, mortgage interest relief at source has been scrapped, although I do not object to that particularly. However, not only has MIRAS been scrapped, but stamp duty on home purchase has been increased and national insurance contributions for middle-income earners have risen sharply. So much – on the eve of the next general election – for the promises that the Labour party made to middle England and middle-income groups throughout the United Kingdom on the eve of the last one. Those groups may also care to note that the yield from inheritance tax has soared 50 per cent. during this Parliament. The Chancellor still has no concept – I genuinely believe that he does not understand its value–of letting more of the fruits of a lifetime of work filter down to the people whom the earner most cares about: his own family and the next generation.

    It is no wonder, with such tax increases, that the ratio of tax to gross domestic product has risen 2.5 per cent. to 37.7 per cent. The Chancellor, despite all his promises, has not so much wooed middle England as assaulted it.

    Mr. Geraint Davies Does the right hon. Gentleman know that, taking tax and borrowing together as a share of GDP – given that borrowing is deferred taxation – the figure went down two points from 38.2 per cent. in 1996–97 to 36.2 per cent. in 1999–2000, and down to 34.1 per cent. in the current year? The current figure is due to the spectrum auction of mobile phone wavelengths, but for the previous period, those two points represent the equivalent of an increase of 7.3p in income tax. In other words, the right hon. Gentleman simply borrowed instead of taxing, and tried to fiddle the figures.

    Mr. Major The hon. Gentleman ought to know that his Chancellor changed the way in which the figures are quoted in the Red Book, and the actual equivalent of what he has done is an extra 10p on tax The hon. Gentleman may care to examine that matter. [Interruption.] If it is nonsense, it is the Government’s nonsense in the Government’s own figures. Those are the figures that I am using. I am glad to hear from Labour Members that they do not believe them.

    It is ironic that the Government and the Chancellor have increased taxes so much. During the last Parliament, I remember vividly the present Chancellor and his colleagues, ever ready to find a catchy slogan, repeating the slander of 22 Tory tax rises, with no acknowledgement whatever of any offsetting tax reductions. To call their attacks disingenuous would be kind. They were patently untrue, and a forerunner of the manipulation of facts that has characterised so much – not all, but so much – of what the Government have said and done in the past four years.

    The Government cannot deny that, because the figures for tax increases are now clear. The statistics cast light where the slogans cast deception. Before this Budget, the real increase in taxes over this Parliament was about 4.5 per cent. a year. Obviously, that figure is now a tiny bit lower, but not all that much. That compares with 1.8 per cent. between 1979 and 1997. I am indebted to the Institute for Fiscal Studies for pointing out that there were tax rises of 2 per cent. a year between 1979 and 1990, and of 1.3 per cent. between 1990 and 1997.

    So much for the 22 Tory tax rises, or, indeed, the unsustainable proposition – unsustainable except by malice – that the previous Government wrecked the Tory tradition of low taxation. Some of my right hon. and hon. Friends who rather timidly accepted that fiction in the early part of this Parliament can now feel comforted that it was not true and refute it. They need not concede, but may safely move on and reassert our traditional tax credentials. Taxes were not unduly increased, despite the pressures of a recession that began in the 1980s and cast its shadow into the 1990s – although not, from the point of view of the health of the economy, much beyond 1992.

    The Chancellor is ever ready to gloss over the excellent parts of his inheritance. He cherry-picks the bits on which he can make party political capital, and I do not blame him for that: most politicians do. However, he misses other bits. He is, after all, a very political Chancellor who wishes to be Prime Minister, and he is doing a bit of image building.

    We need more facts and less of the fiction that we so often hear. The economy has been growing steadily since 1992, before – some hon. Members may not wish to hear this next point – sterling left the exchange rate mechanism. Unemployment has also been falling since that economic recovery began, and the very welcome job growth across the country – in both the number and the variety of jobs – has been consistent throughout the previous Parliament and this one. Inflation, too, began to decline in the early 1990s and has remained low. It looks set to fluctuate only within historically narrow parameters.

    Mr. Mackinlay The Chancellor has been skilled, but I put that in perspective. Other factors have contributed, such as the ebb and flow of the economy, and I accept, to an extent, that employment growth was under way during the right hon. Gentleman’s stewardship. I have intervened only because of his breathtaking assertion that people are somehow worse off than in 1996, which defies both belief and the litmus test of what one sees and feels. There was extensive unemployment, particularly among poor and unskilled people, during the period to which he refers, and although I do not apportion credit or blame in respect of employment, people are now in jobs. Demonstrably, they are better off.

    Mr. Major Demonstrably, the people in jobs are better off. That is undeniably so, but I was referring to the scale of tax increases. If the hon. Gentleman reads some of the independent research, he will see precisely why I made that comment.

    As it happens, I was about to give credit to the Chancellor. The economy is in good shape and he can take a great deal of satisfaction from that. I shall not be mealy-mouthed: he can take a good bit of credit for it as well. Were he to be similarly candid, he too would offer credit to his predecessors, because he has built on what they did and on a trend that was established five years before he went to the Exchequer.

    For example, some hon. Members, but perhaps not all, believe that an economic miracle began on 2 May 1997. Let us take a date at random – 1 May 1997. Growth was set to be 3.5 per cent. for the next year. Inflation was 2.6 per cent. and stable. Unemployment was falling rapidly and, although still high, was down to just over 1.5 million. The fiscal deficit was falling sharply – a point that the Chancellor invariably overlooks because it embarrasses his campaign to discredit his predecessors. The trend of a falling fiscal deficit was clear, and it was falling sharply. The right hon. Gentleman can take credit for not wrecking the trend, but he cannot take credit for beginning it, for it preceded him by four years.

    I thoroughly welcome the fact that economic management has reached a maturity whereby the two major parties do not feel it necessary to reverse all the actions of their predecessor. That is beneficial to the British economy, and it will remain so for as long as that is the case. I may be wrong, but I think that the Chancellor took that too far in his first two years by adopting the previous Government’s expenditure plans in toto. I can tell the House, and I hope that it is not a great shock, that we certainly would not have done that. We would have increased them in the two public expenditure rounds that followed, as we had in every public expenditure round since 1979.

    Stakhanovite is one word; masochistic is another, which might perhaps describe more plainly the Chancellor’s disposition. He has been an economic masochist over public spending. We hear a huge amount about public spending, and the Secretary of State for Education and Employment was at it as well this afternoon, but despite the hype about the unprecedented sums for health and education, the fact is that the Chancellor has raised taxes by far more than he has increased expenditure. The public have not noticed because one skill that the right hon. Gentleman has perfected is that of counting, and that includes the capacity to double count, overcount and miscount, which he has done repeatedly.

    Again, I am indebted to the Institute for Fiscal Studies: total Government spending in this Parliament has risen at 1.2 per cent. a year in real terms. That is not only less than tax increases, but less than economic growth. It compares with public spending of 2.6 per cent. in the previous Parliament, which is a point that Liberal spokesmen have often made, although they are not often nice about the Conservative party. I am glad to see a nod of agreement, rather than a shake of the head, from the hon. Member for Sheffield, Hallam (Mr. Allan), because that is undoubtedly the case.

    I concede that much of that expenditure was not discretionary: it resulted from the unavoidable impact of the recession. However, it puts in a better context that hoary old myth about Tory cuts, which the Prime Minister is trying to recycle with his current spate of posters about potential future Tory cuts. Either he is ill-informed or scaremongering – probably the latter.

    The Government’s publicity on cuts is familiar: it is an echo from the past. It was an odd experience in the last Parliament to be taunted by the Labour party over so-called cuts while hostile monetarists attacked us for spending far too much money.

    Mr. Willis Nothing has changed.

    Mr. Major The Rt Hon. Gentleman may be right. The health of the economy in 1997 and subsequently suggests that we may have got that balance about right.

    During this Parliament, the Chancellor has benefited from the supply side reforms of the 1980s and the disinflation brought about by the policies of the 1990s. When he chants his mantra of boom and bust – I lost count of the number of times that he and the Prime Minister uttered such drivel last week – he should remember that the last unsustainable boom was well over a decade ago. That has not stopped the Prime Minister depicting my right hon. Friend the Leader of the Opposition and my right hon. Friend the shadow Chancellor as Mr. Boom and Mr. Bust. [Interruption.] The Financial Secretary to the Treasury sniggers, but that is the politics of sneer and jeer. Neither of my right hon. Friends were policy makers at the time of the last boom, and one of them had barely been in the House of Commons.

    There is a boom and bust today: a boom in tax raising and a bust in the competitiveness of manufacturing industry. Perhaps the Chancellor and the Prime Minister should concentrate on that boom and bust.

    Mr. Geraint Davies Will the right hon. Gentleman give way?

    Mr. Major I shall make a little progress, if the hon. Gentleman does not mind.

    The Chancellor of the Exchequer is a redistributive Chancellor. He tries to hide that fact, but it is evident, and from his perspective he should not hide it. He aims to redistribute to the less well-off, but in general he redistributes to the Inland Revenue. Even his well-intentioned schemes are not wholly successful. I do not disagree with all of them. Bits of what the Chancellor has done have been good social justice, and if I had been in government with the economy that he now has, I would certainly have taken some of the measures that he has taken, and I am not remotely shy about saying so. However, some of those schemes have not been successful.

    The Chancellor abolished the married couples allowance last year, and this year – after a helpful 12-month gap for the Treasury and the Inland Revenue – he has introduced a children’s tax credit to replace it. However, many people will not receive that credit, because it is means-tested and millions will lose either some or all of it on the means-tested taper.

    The organisation of that tax credit is a shambles. As it is based on the highest-earning member of the household, it throws up huge and unacceptable anomalies. If one parent works and earns £42,000 a year, no payment of the child tax credit is made, whereas if both parents are at work, with no one at home with the child, and earn £35,000 each, the full credit is payable. As a means of social justice, attacking poverty and helping low-income families with children, this scheme is nonsense on stilts. If the Chancellor were serious, he would have examined those problems and sought to correct them before introducing the tax credit in its present form.

    The minimum income guarantee is the Chancellor’s safety net against poverty, but it is so complex that more than one third of eligible pensioners do not claim it. The form is so complex and absurd that a large percentage of graduates might not claim it.

    The 10p band extension is right in principle. I do not disapprove of minimising tax on lower income groups. However, the proposal is so niggardly and mean as to be almost pointless. The maximum gain from the Chancellor’s measures in the Budget is 75p a week – that figure should strike a chord with Labour Members. Given pensioners’ response to that amount previously, surely he should have done it differently.

    Many of the main effects of all economic management, by every Chancellor of the Exchequer, become apparent some years after the announcement of the original tax and spending decisions. This Chancellor was lucky. He was lucky in his predecessors – lucky, notably, that my right hon. and learned Friend the Member for Rushcliffe (Mr. Clarke) and my right hon. and noble Friend Lord Lamont made the painful and unpopular decisions that contributed so much to the subsequent benign situation of which the present Chancellor has made such use in this Parliament. And – unless my memory is failing – I seem to recall that they made those decisions in the teeth of unrelenting opposition, not least from the present Chancellor and the Prime Minister.

    I will not be in the House to see the Chancellor’s legacy at first hand, but much of it is now predetermined. He inherited an economy of falling unemployment and low inflation, and he has maintained it. That was well done; but under his stewardship also, taxes have risen too much. The tax system has become far more complex. Manufacturing industry has declined further. Regulations have soared. Increases in business taxes are undermining competitiveness, and so in due course will the social charter, whose economic folly is not yet fully apparent but will become so. It is, in truth, a mixed record – some good, some bad – for this luckiest and most fortunate of modern Chancellors of the Exchequer.

    I cannot be certain, but this may well be the last occasion on which I shall speak in the House. Let me say that it has been a privilege beyond measure to be here, in this mother of Parliaments. I hope that the next generation of hon. Members, whichever of our great parties they may represent, will feel as I did when I first came to the House; I hope that they will feel that way in future, and I hope that we shall be able to end the miserable political climate of spin and counterspin that has grown up in recent years.

    We need to separate fact from fiction, substance from soundbite, information from innuendo. The public – the electorate – the people who sent us here – deserve more than to be spoon-fed a cocktail of headline-grabbing feel-good stories. They deserve the truth, unvarnished sometimes, but the truth, and every Member of this House, whether Minister or Back Bencher, has the obligation – the duty – to provide it.

    Mr. Jim Cunningham (Coventry, South) I hope that that was not the last speech that the right hon. Member for Huntingdon (Mr. Major) will make in the Chamber. We can agree with some of what he says from time to time and disagree with other things he says, but we must all recognise that he has made interesting contributions to the House over the years – and, indeed, ended up being Prime Minister as a result. I hope that we shall hear from him one last time: he may say things that Labour Members do not like sometimes, but that is the nature of politics and the nature of debate.

  • 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 Comments on Tax Cuts – 2 April 1997

    The text of Mr Major’s comments on his previous tax policy and his plans for cutting taxes, made on 2nd April 1997.


    QUESTION:

    [Mr Major was asked why he had increased taxation].

    PRIME MINISTER:

    We hadn’t wished to increase any element of taxation, and we did. And we did that because we were faced with a recession, that nobody anticipated, not made in this country, an international recession, and in a recession you have to help the people who are vulnerable. And that’s why we had to increase taxes and I believe it was right for us to do so.

    QUESTION:

    [Mr Major was asked if he would increase taxes in the future].

    PRIME MINISTER:

    I’ve made it perfectly clear, we are a tax-cutting party and when affordable we will cut taxes.

  • PMQT – 18 March 1997

    Below is the text of Prime Minister’s Question Time from 18th March 1997.


    PRIME MINISTER:

     

    Engagements

    Q1. Mr. Simon Hughes: To ask the Prime Minister if he will list his official engagements for Tuesday 18 March.

    The Prime Minister (Mr. John Major): This morning, I had meetings with ministerial colleagues and others. In addition to my duties in the House, I shall be having further meetings later today.

    Mr. Hughes: The Prime Minister yesterday made the uniquely personal decision not only to have a general election on 1 May and to dissolve Parliament on 8 April but that Parliament should be prorogued and sent away this Friday. [Interruption.] Is it not obvious that one of the reasons for that decision and for the unprecedented gap between prorogation and dissolution is that–[Interruption.]

    Madam Speaker: Order. This is so time-consuming. Come on, Mr. Hughes: spit it out.

    Mr. Hughes rose–[Interruption.]

    Madam Speaker: Order. There is no point in waiting for silence: the hon. Gentleman will not get silence. Produce your voice, Mr. Hughes.

    Mr. Hughes: One of the reasons for that decision is that the Prime Minister knows that the report of the Parliamentary Commissioner for Standards on cash for questions will be ready on Monday or Tuesday. That report will therefore not be seen by hon. Members in this Parliament and will be hidden until after the general election.

    The Prime Minister: One of the reasons for making the announcement on Monday and arranging for Parliament to be prorogued on Friday was to give the hon. Gentleman time to finish his question. As for Sir Gordon’s report, I have no knowledge when it will be presented.

    Sir Cranley Onslow: Following his successful visit this morning to the headquarters of the McLaren formula 1 team in my constituency, does my right hon. Friend agree that what counts is not who is ahead at the first corner, but who has the skill, expertise, stamina and nerve to see the race right through to the winning post?

    The Prime Minister: I entirely agree with my right hon. Friend. The purpose of going to see the McLaren team was rather wider than that. I wanted to draw attention to a tremendous British success story, of which there are many. McLaren and the British motor industry have been a huge success. Of the 20-odd cars that lined up at Melbourne for the grand prix won by David Coulthard, 20 would have been built in the United Kingdom.

    Mr. Blair: Does the Prime Minister agree that a situation where two thirds of health authorities and one third of hospital trusts are in deficit to the tune of £300 million is grave, and potentially disastrous for many parts of the national health service?

    The Prime Minister: I find it odd for the right hon. Gentleman to talk about funding in the health service, since he has declined to increase funding, whereas we have given a commitment to do so. In any event, the figures that he uses are blown out of all proportion. The forecast deficit is a relatively small fraction of the national health service budget and, of course, in less than two weeks’ time, funding for the national health service will rise by £1.6 billion, a multiple of the deficit to which the right hon. Gentleman refers.

    Mr. Blair: Is the Prime Minister aware that many health authorities have deficits this year that will not be met by real-terms growth next year? To give one example, in north Essex, the deficit is £10 million and the real-terms growth that he is promising is only £9 million. He is not keeping the promise that he says he is making. He may believe that this is a matter of no account whatever, but is he aware that non-emergency surgery is being cancelled up and down the country, that accident and emergency departments are closing, that waiting lists are up and that there are bed and staff shortages in many parts of the national health service? Is that not a real tragedy, and disgraceful handling of the NHS?

    The Prime Minister: Some time ago, the answer to the question whether the NHS was working was set out by the shadow Foreign Secretary as whether more people were treated, and treated well. Since then, an extra 1 million people are being treated, and treated well, in the NHS. The number of consultants in accident and emergency departments has risen by 40 per cent. over the past few years. The right hon. Gentleman does not mention that. He does not mention the fact that we have committed increased resources over and above inflation to the national health service every year since 1979, and will do so throughout the period of the next Parliament. That is a record that would not have been met by any previous Government, and cannot be met by any other Government, because they would not have delivered the growth in the economy that we have achieved.

    Mr. Blair: The contrast is between the Prime Minister’s complacency and what people know is happening in the national health service the length and breadth of this country. Is it not the case that in, the past six years, there has been an increase in administration costs of more than £1.5 billion a year, with 20,000 more managers and 50,000 fewer nurses? Is not the truth that the real challenge of the national health service is how to get money out of invoices, contractors, managers, company cars and pen-pushers and into front-line patient care so that we can rebuild the national health service that the Labour party created?

    The Prime Minister: There are elements of what the right hon. Gentleman had to say with which I would agree. That is why we support compulsory competitive tendering, which he does not support; that is why we cut a whole tier of management that he voted to keep; that is why we have cut management costs by 10 per cent., £340 million, in the past two years. He cannot do that.

    No one is being complacent about the need to improve the health service: that is why we are providing more resources; that is why I mentioned the extra doctors in accident and emergency; that is why 1.5 million more patients are being treated, with more than 10 million more in-patients every year, 3.5 million day cases a year and 14 million out-patients a year. Health service hospitals are now dealing with 75,000 patients every day of the year–£730 for every man, woman and child in the country, very nearly double the amount when his party left office. The Labour party may have set up the health service, but we have built it up.

    Mr. Sykes: When my right hon. Friend comes to choose his new Cabinet on 2 May–[Interruption.] Listen to the page three boys shriek, Madam Speaker. I remember when they were shrieking in Sheffield the week before the last general election. I should like to hear them shriek after this election, every single one of them. What would my right hon. Friend say if all that he had to choose from after the election was a group of failed teachers, a bunch of ex-trade union officials, one television director and a bar steward? That is all that the right hon. Member for Sedgefield (Mr. Blair) has to choose from.

    The Prime Minister: I think that it would be a kindness to protect the right hon. Gentleman from ever having to make such a choice. Who is meant by the bar steward, I cannot imagine.

     

    Q2. Mr. Wareing: To ask the Prime Minister if he will list his official engagements for Tuesday 18 March.

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

    Mr. Wareing: How did the Prime Minister have the audacity at the weekend to tell Tory central council that his type of Conservatism aimed to help the struggling classes–the have-nots? In 18 years of Tory rule, what did his Tory party ever do for the homeless, the sick and the disabled? The Prime Minister is not only past his sell-by date, he is well beyond his use-by date. It is time he went.

    The Prime Minister: The hon. Gentleman is unusually animated on this occasion, for reasons that I do not understand. I suggest that he asks the millions of council tenants who would never have become home owners but for the activities of the Conservative Government or the millions of people who now have savings, shares and pensions that are owned by them rather than held by a Labour Government, as they were in the past, on their behalf. We believe that, in the late 1990s, people should have the right to personal ownership for themselves and their families, and that is what we are building. We apply that to everyone, not just middle-income earners such as the hon. Gentleman.

    Mr. French: Did my right hon. Friend see the reports at the weekend that 40,000 people took to the streets of Paris to protest against the rising tide of European unemployment? Can he explain to the House why the same thing has not happened here and what will be the quickest way of making it happen here?

    The Prime Minister: I saw that, and I have also seen the trend in unemployment in many countries across Europe. The Labour party is keen that we should sign up to a 48-hour week, the minimum wage and the social chapter. Perhaps Labour Members should hear what the United States Chamber of Commerce had to say about the 48-hour week. It has just told the Irish Government:

    “It is no exaggeration to say”

    that it would be

    “the single most negative change in the last 20 years.”

    We intend to continue to put people back to work, as we have done in spectacular fashion in the past 18 months. Policies such as the social chapter, the minimum wage and the 48-hour week–however glib they may sound–are a recipe for putting people out of work if they are in work and, if they are out of work, making sure that they stay out of work for a long time ahead. That is the poison pill of the Opposition’s policy.

     

    Casualty Units (London)

    Q3. Mr. Corbyn: To ask the Prime Minister what plans he has to pay an official visit to a London NHS hospital to discuss the operation of casualty units.

    The Prime Minister: We have made an extensive investment in recent years in London’s accident and emergency services as part of a £400 million capital investment to provide the highest-quality and up-to-date facilities. I hope to have the opportunity to see some of them before too long.

    Mr. Corbyn: When the Prime Minister finally gets around to visiting a casualty unit in a London hospital, what answer will he give to staff who have seen one in seven of all the acute beds in London lost, 12 of the 46 casualty units closed, huge waiting lists, people waiting on trolleys, loss of morale among staff and the recent resignation of the consultant in charge of the casualty unit at Queen Mary’s University hospital, Roehampton, who left because he could no longer run it within the budget provided and did not feel that he was giving people a decent service? Is that not the reason why nobody trusts him and his Government on the future of the national health service and will accordingly vote him out?

    The Prime Minister: I think that the first advice that I would give them is not to vote Labour, because they are getting more money from this Government than they would from any putative Labour Government. I would tell them that the number of consultants in A and E departments has risen dramatically by 40 per cent. I would tell them that the number of nurses appointed had risen by 21 per cent. I would tell them that more patients are being treated. I would tell them that the hon. Gentleman is living proof that old Labour lives, because, while the Labour Front Benchers are saying that they will not raise taxes, he is saying:

    “What . . . many”–

    including the hon. Gentleman–

    “have been talking about is the need to raise taxation for the above average income people in order to pay for the rest. I see a moral justification for that and I think it is the right thing to do.”

    That may be what he tells the consultants, but it is not what the right hon. Member for Sedgefield (Mr. Blair) tells the consultants.

  • PMQT – 11 March 1997

    Below is the text of Prime Minister’s Question Time from 11th March 1997.


    PRIME MINISTER:

     

    Engagements

    Q1. Mr. Hendry: To ask the Prime Minister if he will list his official engagements for Tuesday 11 March.

    The Prime Minister (Mr. John Major): This morning, I had meetings with ministerial colleagues and others. In addition to my duties in the House, I shall be having further meetings later today.

    Mr. Hendry: Does the Prime Minister agree that parents everywhere will welcome today’s publication of league tables for primary schools? Does he understand their very real anger at those who would deny them the right to know how their children’s schools are performing? Whether or not schools are doing well, parents have an absolute right to know how their children and their local authorities are performing. We understand that, but Labour does not.

    The Prime Minister: I agree with my hon. Friend about the importance of the tables. For the first time, parents will have the information they need to help to choose the appropriate primary schools for their children.

    Mr. Foulkes: In Orkney?

    The Prime Minister: They do–

    Madam Speaker: Order.

    The Prime Minister: It is interesting to note that any prospect of choice or information is an appalling proposition for Opposition Members–no wonder they propose to do away with this information if they ever get the opportunity. The tables expose under-achievement and high truancy, and where they occur: in authorities run by the party of the hon. Member for Carrick, Cumnock and Doon Valley (Mr. Foulkes).

    Mr. Blair: Is the Prime Minister aware of the correspondence from the Association of Meat Inspectors sent to Ministers and the Meat Hygiene Service that shows that, contrary to what we were told last week, serious concern about contamination was being expressed to Ministers and others over a nine-month period and that contamination in abattoirs is getting worse, not better? Those are serious allegations. Will the Prime Minister institute immediate inquiries and ensure that the Minister of Agriculture, Fisheries and Food publishes a full account of the state of abattoirs, of what warnings were given to Ministers, and of what action was taken?

    The Prime Minister: In the past few hours I have seen the letter to which the right hon. Gentleman refers since it attained some notoriety on the lunchtime media. I entirely share the concern of the right hon. Gentleman and the Association of Meat Inspectors to ensure the highest standards of hygiene in slaughterhouses. I am surprised by the contents of the letter for two reasons: first, I am surprised because the AMI is responsible for the enforcement of hygiene rules, and I understand that extra staff have been provided to the Meat Hygiene Service, including at least 250 staff who are responsible for inspection. Secondly, I am surprised because the vice-president of the Association of Meat Inspectors, who is a vet–unlike the general secretary to whose letter the right hon. Gentleman referred–said today that he is

    “fully supportive of the Meat Hygiene Service and everything they have achieved in raising standards”.

    Notwithstanding that point, I have not yet fully had the chance to investigate the letter, but I will most certainly do so.

    Mr. Blair: I thank the Prime Minister for that, but will he ensure that we are given a full account of exactly what was said to Ministers over that period of nine months and what the state of abattoirs is? Is there not an unanswerable case for ensuring that the Ministry of Agriculture, Fisheries and Food does not look after the interests of the industry and consumers together, and that we set up a proper, independent food standards agency that can look into these matters and monitor them on behalf of the public?

    The Prime Minister: The right hon. Gentleman raises two important points. Let me try to answer him in some depth on both of them.

    As to the importance of what Ministers have been doing, I understand that my right hon. and learned Friend and my hon. Friend the Parliamentary Secretary have had a total of 22 meetings on hygiene matters over the last year to deal with abattoirs and related matters. That series of meetings continues, which shows the extent of the Government’s concern. I will, of course, look personally at what has happened about those meetings.

    I share the right hon. Gentleman’s view on the need for independent advice. The point of distinction between us is whether it should come from an agency, or independent advice from scientific experts, but not necessarily an agency–[Interruption.] I will explain why not necessarily an agency, and I will use the words that are often used by hon. Members when criticising agencies that exist. Hon. Members often say to me that agencies do not stand at the Dispatch Box; that they are not answerable for what is happening. On a matter such as food safety–the right hon. Gentleman just asked that my right hon. and learned Friend the Minister of Agriculture, Fisheries and Food be held accountable–it is, perhaps, right that there should be independent advice. I agree with the right hon. Gentleman about that and we have set it in train, but a Minister should stand at the Dispatch Box and answer for the advice that he receives.

    Mr. Blair: I thank the Prime Minister for that, but I would just point out to him that, in the letter written last Wednesday, the Association of Meat Inspectors said that

    “far from being encouraged to enforce stricter hygiene standards, MHIs are being actively encouraged to ignore breaches of regulations and in some cases threatened if they try to take action”.

    I understand that inspectors have a responsibility, but surely Ministers do as well. I therefore ask the Prime Minister whether, as a result of his previous answer, he is prepared to look again at the possibility of an independent food standards agency–not to commit himself to it today, I understand that–as a better way to deal with these issues.

    The Prime Minister: I am grateful for the way in which the right hon. Gentleman poses his question. Let me deal with the first part of it and what instructions were given to inspectors.

    Inspectors have been given clear instructions to apply the rules firmly: for example–to pick up one of the points in the letter–if they see signs of any form of contamination, not to stamp meat as fit for human consumption. Their job is to stop such meat reaching the consumer. Abattoir managers and owners who flout those rules face prosecution. The right hon. Gentleman will know of the monthly report on observance of bovine spongiform encephalopathy rules. In addition, members of the AMI–the inspectors–know that they face disciplinary action if they fail to enforce the rules properly. That is a real threat. The Meat Hygiene Service has dismissed a number of employees and disciplined rather more for inadequately carrying out the public safety responsibility of careful examination of abattoirs, and that is right.

    Of course I will look at the question of independent advice, but for the reason that I set out a moment ago I do not favour a food standards agency.

     

    Q2. Mr. Gallie: To ask the Prime Minister if he will list his official engagements for Tuesday 11 March.

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

    Mr. Gallie: Does my right hon. Friend welcome, as I do, the high level of investment in the electronics industry in central Scotland? Does he recognise the importance to that industry of manoeuvrability of components and products? Will he consider the requirements of fifth freedoms, which could benefit that industry, particularly by using Prestwick airport as a gateway?

    The Prime Minister: As my hon. Friend will know, I visited Prestwick airport 10 days ago to look at its excellent cargo facilities. Granting fifth freedom rights to foreign airlines using Prestwick is attractive, provided United Kingdom airlines are given a fair opportunity to compete and there are matching rights for UK airlines overseas. I shall certainly ensure that my right hon. Friend the Secretary of State for Transport is aware of my hon. Friend’s comments. I share my hon. Friend’s belief that good transport links are vital to that success.

    Mr. Ashdown: If, as the Government claim–

    Mr. Nicholas Winterton: Welcome to the role of grandparent.

    Mr. Ashdown: Yes, we hope that we shall be.

    If, as the Government claim, today’s primary school league tables are a fair and accurate judge, will the Prime Minister consider two facts? Of the top 20 local education authorities, eight have Liberal Democrat control, three have Labour control and only two have Conservative control. According to the tables, Britain’s primary education system is now, in the words of The Express, the worst in the western world and a national disgrace. After 18 years of Conservative government, does the Prime Minister take any responsibility for that, or is it the fault of the teachers and the Opposition parties?

    The Prime Minister: If it were not for the fact that we introduced this information, nobody would know precisely what was happening in schools. As to standards in secondary and primary schools, the fact is that, across the board, it is long-standing Conservative authorities that have the best results, certainly not Labour authorities. The 20 worst secondary schools and the 10 worst primary schools are in Labour authorities. The schools for which the right hon. Gentleman takes credit have been Conservative run for many years, and have only recently been run by the Liberal Democrats.

     

    Q3. Mr. John Greenway: To ask the Prime Minister if he will list his official engagements for Tuesday 11 March.

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

    Mr. Greenway: Will my right hon. Friend join me in congratulating the Chartered Insurance Institute on its centenary year, which is marked by a major international insurance conference at Westminster today? Are not Governments throughout the world increasingly turning to the private sector to help to meet long-term social costs? Does my right hon. Friend agree that a partnership between insurance companies and the state is the best way of ensuring that future generations can meet their pension needs?

    The Prime Minister: If we wish to enshrine the welfare state for our children and our grandchildren, it is necessary to look again at how we can ensure that the provision that is made today is still affordable in years to come. That is why we produced the plans on basic pension plus. That is why my right hon. Friend the Secretary of State for Health yesterday announced our partnership scheme for long-term care, and that is why further plans will be announced tomorrow. We are seeking to ensure that the welfare state is enshrined for the long term by taking decisions that every hon. Member knows need to be taken if we are to ensure the continuation and improvement of welfare provision.

    Mr. Ashton: As we are only three or four weeks away from the official start of the general election campaign, will the Prime Minister tell us whether, a few weeks before the last general election, the Conservative Government did a deal with the tobacco companies, in which several hundred hoardings were given to the Conservative party in return for an agreement that there would be no ban on tobacco advertising? Is that true? Will he confirm that that deal will not be done again?

    The Prime Minister: I confirm that no deals are being done, although I have noticed one: the substantial advertising campaign by the trade unions. Those trade unions fund the Labour party when the deputy leader is not abroad raising funds for the party before denouncing the Conservatives, whom he claims do the same thing.

     

    Q4. Mr. Butler: To ask the Prime Minister if he will list his official engagements for Tuesday 11 March.

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

    Mr. Butler: Will my right hon. Friend join me in congratulating the Church primary schools on their exceptional performance, as shown in the league tables that were published today? Is that not further and conclusive proof that traditional teaching methods, employed in an atmosphere in which achievement is expected and there are strict rules and discipline, are not only the most successful but the only proper methods?

    The Prime Minister: My hon. Friend is right to point to the excellent performance of the Church primaries. About 60 of the 100 best-performing schools in the tables are either Church or grant maintained. They show the success of a policy of promoting choice and diversity in our education system if we wish to promote excellence.

    [Hon. Members: “Oh.”] I note the hatred of diversity and excellence on the Opposition Benches. I note Opposition plans to abolish grant-maintained schools, to undermine Church schools and to give local education authorities unprecedented control over them. It is very interesting indeed that members of the Labour party would like to deny other parents the opportunities that they exercise themselves.

    Q5. Ms Walley: To ask the Prime Minister if he will list his official engagements for Tuesday 11 March.

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

    Ms Walley: Does the Prime Minister recall that, five years ago yesterday, the then Chancellor of the Exchequer promised in his Budget speech that he would not increase VAT on fuel? Are we not entitled to know now why the Government did not go ahead with that?

    The Prime Minister: I think that we are entitled to know by what amount a windfall tax will add to the cost of fuel for people–and the cost of water, and the cost of all the other utilities. We are promised such a tax; we have not been given any information about the impact of that tax on either the consumer–

    Ms Walley indicated dissent.

    The Prime Minister: There is no point in the hon. Lady’s shaking her head; this is the fact of the matter. We have not been given any information about the impact of the tax on either the consumer or the dividends of hundreds of thousands of investors in those industries.

  • PMQT – 28 January 1997

    Below is the text of Prime Minister’s Question Time from 28th January 1997.


    PRIME MINISTER:

     

    Engagements

    Q1. Mr. Harry Greenway: To ask the Prime Minister if he will list his official engagements for Tuesday 28 January.

    The Prime Minister (Mr. John Major): This morning, I had meetings with ministerial colleagues and others. In addition to my duties in the House, I shall be having further meetings later today.

    Mr. Greenway: Will my right hon. Friend confirm the Government’s continued support for successful schools? Will he sympathise with the head teachers and governors of St. Olave’s and the London Oratory schools who will have difficulty in expanding their schools, even to accommodate more children of hypocritical Labour Front Benchers, if the Opposition have their way?

    The Prime Minister: I can assure the House that we will press ahead with our plans to allow successful schools to expand, either before or after the general election. Last night, the Opposition voted to deny other parents the choice, and some children the opportunities, that they themselves enjoy. Our aim is to raise standards: they apparently peddle double standards.

    Mr. Blair: I see now: it is now our fault that they cannot run a halfway competent Government. Why does the Prime Minister not simply call a halt to what is the fag end of a burnt-out Government? They have no legislative programme left and the country is tired of waiting: March–not March; May–not May. If they are so confident, why does not the Prime Minister, just for once, put a stop to the dithering, name the day and call a general election?

    The Prime Minister: The right hon. Gentleman clearly is not aware of the importance of the legislation that he has just dismissed. He clearly does not want the legislation against crime that we are proposing. He clearly does not want the tougher sentences that we are proposing and he certainly does not want the educational choice for everyone that he himself has enjoyed.

    Sir Fergus Montgomery: Whenever the general election comes, will my right hon. Friend promise that, when he leads our party into it, he will not pledge to spend £30 billion more on public expenditure while at the same time saying that there will be no increase in taxation?

    The Prime Minister: I can certainly confirm that we will not have £30 billion-worth of spending pledges. The Labour party is very keen to reassure people that it would not raise taxes, but it has not yet withdrawn the £30 billion-worth of spending pledges that make it inevitable that it will raise taxes, and it has not yet managed to school its Front-Bench spokesmen out of promising more expenditure on every occasion.

     

    Q2. Mr. Miller: To ask the Prime Minister if he will list his official engagements for Tuesday 28 January.

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

    Mr. Miller: I remind the Prime Minister of his words at Question Time on 28 January 1992, as this is the fifth anniversary of his pledge not to increase value added tax. Will he apologise to the millions of pensioners who this winter have had to pay the VAT that he imposed on their gas and electricity bills?

    The Prime Minister: As the–[Hon. Members: “Answer.”] I propose to answer.

    The hon. Gentleman might bear it in mind that his windfall tax will impose just such a tax on utilities, on electricity and gas, and on pensioners, but the Labour party does not have the courage to say how much it will be. It says that it will raise and spend the money, but it does not say on whom it will be levied or how much it will be. If the hon. Gentleman is really concerned about VAT, perhaps he can stop what he knows to be the wholly untruthful smear campaign about our future plans on value added tax.

    Mr. Marland: Will my right hon. Friend confirm that it is not, and never has been, his intention to impose VAT on Severn bridge tolls–[Laughter.]–and that, contrary to what the new Labour candidate for Forest of Dean says, it was not the Government’s idea, but that of the European Transport Commissioner, who is a former leader of the British Labour party?

    The Prime Minister: I can confirm that. Perhaps if Opposition Members had listened to my hon. Friend before they began scoffing, they would have seen the trap opening in front of them. It certainly remains our view that tolls are not subject to value added tax, and we are opposed to the European Commission’s view that they should be–a view that I believe is held by Commissioner Kinnock.

     

    Q3. Mr. Winnick: To ask the Prime Minister if he will list his official engagements for Tuesday 28 January.

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

    Mr. Winnick: Will the Prime Minister take this opportunity to congratulate the present right hon. Member for Chelsea (Sir N. Scott) on his honesty? He said in an interview on Friday that it was most unlikely that the Government would be re-elected. Is that not the real reason why the Prime Minister is so terrified of calling the general election and clings desperately to office day by day? Does he consider it dignified to carry on to the very last moment so that he can stay at No. 10?

    The Prime Minister: I think that the hon. Gentleman has overlooked the fact that we have the most successful economy, with the highest growth and the best inward investment record, in western Europe. None of the socialist Governments in Europe can begin to match that record, which people are understanding more and more as day succeeds day.

    Mr. Day: Does my right hon. Friend agree that the countries that form the United Kingdom–Scotland, England, Wales and Northern Ireland–although proud entities in themselves, would count for nothing in the world as individual, separate nations? Will he therefore assure the House that his Government will never follow the lead of the Labour party in proposing constitutional changes that would lead to the break-up of this United Kingdom and provide the perfect scenario for our component countries to be nothing more than provinces in a federal Europe?

    The Prime Minister: The shadow Foreign Secretary seems to think that we are heading for a Europe of the regions. I strongly disagree with that view. I believe that the United Kingdom is at its strongest while it remains united and I fear that the policies proposed by the Opposition parties–to be fair, not merely the Labour party but the Liberal Democrats as well–would lead to Scotland leaving the UK. Were that to happen, it would damage not only Scotland, but each of the other parts of the United Kingdom as well. It is a policy that should be opposed and we will oppose it.

     

    Q4. Mr. Rooney: To ask the Prime Minister if he will list his official engagements for Tuesday 28 January.

    The Prime Minister: I refer the hon. Gentleman to the reply I gave some moments ago.

    Mr. Rooney: Does the Prime Minister recall his pledge, which was apparently reiterated by the Secretary of State for Health yesterday, to phase out mixed-sex wards? What condolences will he give to my constituents who have found that the Bradford Hospitals NHS trust has reopened and created two mixed-sex wards in the past month?

    The Prime Minister: If the hon. Gentleman recalls, it was this Government who, in 1995, gave patients the right to be told before admission if it was planned that they would be cared for in a mixed-sex ward. The Labour party did not seem to bother about that at all when in office. We decided to take action. We are monitoring the process. The health authorities will report back by the end of next month with individual timetable plans for separating male and female patients–timetable plans for action that the Opposition ignored for years.

    Sir Roger Moate: On the vote last night on grant-maintained schools, does my right hon. Friend recall the remarks of the Labour education spokesman, who said:

    “I am having no truck with left-wing, middle-class parents who preach one thing and send their children to another school outside the area”?

    Should we check the Division list from last night, to find out whether the Leader of the Opposition voted in his own interests or those of his party?

    The Prime Minister: I cannot imagine about whom the shadow education spokesman was speaking, but I gather that there was a miscount last night and the Government were not defeated in that Division. No doubt the usual channels are sorting out the position now. What is important is not Labour’s student union ambush of last night, but what it shows about Labour party policy, which is that Labour Members will enjoy choice and opportunity for themselves, but will come together as an act of policy and vote against it for people who happen not to be Labour Members of Parliament.

    Mr. Loyden: Instead of spending public money on building the proposed royal yacht, will the Prime Minister consider using that money to kick-start the shipyards of this country so that our shipyard workers can get back to work to build ships in which our unemployed merchant seamen can sail?

    The Prime Minister: I am glad that the hon. Gentleman supports the decision, because the yacht will be built in a British shipyard.

    Mr. Nicholls: Does my right hon. Friend agree that the policy of being able to see league tables is greatly popular with parents? What significance does he give to the fact that the National Association of Head Teachers recently launched a major test case to try to ensure that parents would not have that right? What significance should be attached to the fact that the barrister who vigorously prosecuted that case was the wife of the Leader of the Opposition? [Interruption.]

    Madam Speaker: Order. The House will come to order.

    The Prime Minister: The important element is the official policy of the Opposition, which has been to oppose greater information for parents and league tables–to oppose each and every one of the reforms that we have produced to give children and parents better choices and parents information about schools. We believe that parents should have information about schools; the Opposition policy is that they should not.

     

    Highlands and Islands

    Q6. Mr. Charles Kennedy: To ask the Prime Minister what plans he has to pay an official visit to the highlands and islands.

    The Prime Minister: I have at present no plans to do so.

    Mr. Kennedy: That being the case, may I invite the Prime Minister to take this opportunity to explain to local people a glaring inconsistency that emerged over the weekend and that they have difficulty comprehending? Why is it that, on a £60 million contract, public money is ruled in and private finance is completely ruled out; yet, on a contract of half that value and one that is fundamental to the interests of the people of the west coast of the highlands, the Isle of Skye and, indeed, the Western Isles constituency, which is one of the lowest-income parts of the country, the public sector is completely ruled out, private finance imposed and people now face the highest toll bridge charges, not only in Europe but probably in the world, for a future generation?

    The Prime Minister: The reality is that tolls on the Skye bridge are going to be no higher than ferry fares in 1995. Without the private finance initiative project, Skye would not have had the bridge for another 20 years. I note that the Liberal Democrats are opposed to using private finance. I hope that, in all the constituencies up and down the country where private finance is providing better facilities, it will be clear that the Liberal Democrats oppose those projects.