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Mr. John Greenway : Shame.

Mr. Dewar : I would have thought that that was a cause for celebration and cheer on the hon. Gentleman's part. Conservative Members should recognise a Christmas present when they are offered one. It seems very uncharitable and unseasonable for Conservative Members to mock in this way.

On this occasion I will beg to ask leave to withdraw the motion. Motion and clause, by leave, withdrawn.

Bill reported, without amendment.

Order for Third Reading read.

Motion made, and Question proposed, That the Bill be now read a Third time.

10.54 pm

Mr. Bradley : We have had an extremely interesting Committee stage. If any merit has come out of the fact that the Bill has been guillotined-- there is only one merit--it is that my hon. Friend the Member for Glasgow, Garscadden (Mr. Dewar) has been able to participate so effectively in the Committee. He has brought great knowledge and a particular humour to our proceedings. We should welcome that as we run up to the end of this part of the Session. On Second Reading, we concentrated very much on the consequences of increasing the national insurance contribution by 1 per cent. from 9 per cent. to 10 per cent. It is worth repeating yet again what the real consequences of that are. Through the back door, the Government are giving the biggest hike to taxation. The increase will bring

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Column 1385

in a staggering £2.26 billion in revenue in a full year. If the Government had been honest in the Budget and had raised taxation, they would not have received as much money. They would have received £360 million less than they are getting from this massive imposition of national insurance.

What has come clearly out of our debates today and yesterday is what the Government failed to tell the British people during the general election campaign. The Conservatives claimed that they were the party of low taxation. All that myth has now been exploded. I do not believe that the British people who, from next April, will on average have to pay £9 or £10 a week extra in total taxation and £16 on average the following year will ever again believe this Government.

This is the biggest hike in taxation. It is very pleasing that the former Chancellor, the right hon. Member for Kingston upon Thames (Mr. Lamont), is in the Chamber to listen to the description of the effects of his policies. The new Chancellor--I quote from the Daily Mail --admitted the truth to the Treasury Select Committee yesterday :

"Clarke comes clean. Kenneth Clarke admitted last night that this year's Budget has raised the equivalent of 7p on the basic rate of income tax."

We know that, in conjunction with the national insurance contribution, people throughout the country will suffer, and suffer and suffer from the consequences of the Government's policies. Through our debates, we have also been able to winkle out from the Government some important facts not only about the consequences of the increase in national insurance contribution, but about the effect on people of not being able to draw certain benefits in future. Two issues are worth reinforcing on Third Reading. I welcome our future opportunity to debate in greater detail the new job seeker's allowance. We have found out not only what was clear from the start--that it was about reducing the amount of benefit and about reducing eligibility from 12 months to six months--but, most importantly, that anyone under 25 who receives the new job seeker's allowance will get it at a reduced rate. That is a lower rate of income support. It is also clear that the dependants' addition will be significantly reduced under the new scheme.

It is a disgrace and scandal that the 3 million officially unemployed people will pay the price, not only through a reduction in the eligibility to benefit to six months, when many of them, through the contributory system, have paid into the fund and believed that they had a right to proper levels of unemployment benefit as a result, but young people up to the age of 25 will have their benefit reduced to income support level. That is a disgrace, and when it is properly understood, there will be a furore and campaigns against what the Government are proposing. The Minister may laugh, but the 3 million unemployed are not laughing. They are suffering from the consequences of the economic mismanagement of the Government.

Dame Elaine Kellett-Bowman : On a point of order, Mr. Deputy Speaker. Is it in order for the Opposition spokesman to mislead the House? There are not 3 million unemployed, and he ought to know--

Mr. Deputy Speaker : Order. The hon. Member for Manchester, Withington (Mr. Bradley) is responsible for his own speech.

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Mr. Bradley : I understand exactly what the hon. Member for Lancaster (Dame E. Kellett-Bowman) is saying. I understand that, over the 14 years of this Tory Government, they have fiddled the figures 19, 20 or 21 times to cover up the real total of over 4 million unemployed--that is, all those eligible to look for work, but ineligible to claim benefit because that right has been taken away from them. We understand what is going on, and we shall fight to protect the interests of those 4 million people.

You have not only curtailed the right to benefit for unemployed people. We shall look in great detail at the second exposure resulting from the debates in the past couple of days. That is the exposure of the way in which you are going to treat people with an incapacity, people who are sick and those who have disabilities. Not only will their right to a decent level of benefit be curtailed through the draconian measures that you are likely to introduce, but

Mr. Deputy Speaker : Order. The hon. Gentleman is getting a bit carried away. The Chair is not responsible for anything in this Bill, or any other.

Mr. Bradley : I accept what you say, Mr. Deputy Speaker. I had no intention of drawing you into the net of the guilty people who sit on the Treasury Bench, who will significantly reduce the living standards of thousands othe Statutory Sick Pay Bill yesterday. Because of the extra burden of having to pay statutory sick pay, employers will look carefully at people's health records. People with health problems will be denied the right to a decent benefit. They will be caught in a trap--too ill to work but not ill enough to receive benefit from this miserly Government. We are determined that, when the Bill dealing with incapacity goes into Committee, we shall look at every line dealing with the way that assessments are done. What you are doing--

Mr. Deputy Speaker : Order. I have already told the hon. Gentleman that the Chair is doing nothing. I am only conducting the debate, in accordance with the rules of procedure. I should be grateful if the hon. Gentleman would bear that in mind.

Mr. Bradley : I apologise. As we enter the Christmas period, we feel even more the ways in which the people whom we represent are being downtrodden. I apologise for getting emotional. We are trying to protect the vulnerable--the people who do not have the income to match that of Tory Members. We are trying to protect them against the ravages of an incompetent Government, who in one day can lose £7 billion. At the same time they try to cut the benefits of the most vulnerable people in society. Such are this Government's priorities. The Secretary of State is so appalled and is such a guilty man that he cannot even come to the Chamber to hear the closing speeches on this legislation. Where is he? I think I perhaps know. I suspect that there is an argument going on between the Chief Secretary to the Treasury, the Chancellor of the Exchequer and the Secretary of State about the other area that we are determined to protect--the right to a decent level of state retirement pension.

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The Chief Secretary is not interested in the future needs of people for the state retirement pension. He is looking for it to be continually eroded so that it has no real value in future. He believes that the state should not provide this sum in the 21st century and that everyone should look to the private market for an income in their old age. That is not good enough for us. We shall protect the elderly. We do not accept the arguments put to us and directed clearly by the Chief Secretary. We shall ensure that the millions of elderly people are properly protected by the policies of a Labour party committed to the interests of the elderly. Today's debate has given my hon. Friends adequate opportunity to expose the Government's hypocrisy and the way in which they are trying to con the British people into believing that if direct taxation does not increase, somehow national insurance contribution increases are a side issue and do not affect pay packets in the same way. I assure Ministers that on 1 April next year when the public receive their pay slips the Government's con will be exposed. At the same time as incomes are ravaged and limited by tax and national insurance impositions, bills will come through doors demanding VAT on fuel. Then the public will look at how mortgage interest tax relief has been eroded ; they will look towards future travel and holidays and see that they have to pay tax on that. As their bills come in for home insurance and car insurance, it will be tax, tax, tax.

That from a party that went into the general election saying that it was the party of low taxation, that it had no plans and no need to raise taxation. Its hoardings argued against the Labour party's tax policies. Yet look what the country is having to suffer as a result of the mismanagement of the economy by these Ministers and all their guilty colleagues.

We have failed-- [Interruption.]

Mr. Deputy Speaker : Order. For the last two minutes it might be wise for the House to settle down.

Mr. Hague : To help the hon. Gentleman through the last two minutes, may I suggest that he spends them by informing the House how the Labour party proposes to meet the shortfall in the national insurance fund?

Mr. Bradley : Is not it incredible that when Britain is faced with the biggest tax hike ever, amounting to £9 a week for the average family this year and £16 next year, the Government can ask only what we would do? The Government are responsible for what is happening. The Minister and all his right hon. and hon. Friends are the guilty men whom we have exposed during the past two days. We may not have won a vote in those two days, but I am assured that we have won the hearts and minds of the British people who know only too well where the guilt lies for the economic consequences.

It being six hours after the commencement of proceedings on Second Reading, Mr. Deputy Speaker-- put the Question already proposed from the Chair, pursuant to Order [14 December] :--

The House divided : Ayes 303, Noes 256.

Division No. 56] [11.10 pm

AYES

Ainsworth, Peter (East Surrey)

Alexander, Richard

Alison, Rt Hon Michael (Selby)

Allason, Rupert (Torbay)

Amess, David

Ancram, Michael

Arbuthnot, James

Arnold, Jacques (Gravesham)

Arnold, Sir Thomas (Hazel Grv)

Ashby, David

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Column 1388

Aspinwall, Jack

Atkinson, David (Bour'mouth E)

Atkinson, Peter (Hexham)

Baker, Rt Hon K. (Mole Valley)

Baker, Nicholas (Dorset North)

Baldry, Tony

Banks, Matthew (Southport)

Banks, Robert (Harrogate)

Bates, Michael

Batiste, Spencer

Bellingham, Henry

Bendall, Vivian

Beresford, Sir Paul

Biffen, Rt Hon John

Blackburn, Dr John G.

Bonsor, Sir Nicholas

Booth, Hartley

Boswell, Tim

Bottomley, Peter (Eltham)

Bottomley, Rt Hon Virginia

Bowis, John

Boyson, Rt Hon Sir Rhodes

Brandreth, Gyles

Brazier, Julian

Bright, Graham

Brooke, Rt Hon Peter

Brown, M. (Brigg & Cl'thorpes)

Browning, Mrs. Angela

Bruce, Ian (S Dorset)

Burns, Simon

Burt, Alistair

Butcher, John

Butler, Peter

Butterfill, John

Carlisle, John (Luton North)

Carlisle, Kenneth (Lincoln)

Carrington, Matthew

Carttiss, Michael

Cash, William

Channon, Rt Hon Paul

Chapman, Sydney

Churchill, Mr

Clappison, James

Clark, Dr Michael (Rochford)

Clifton-Brown, Geoffrey

Coe, Sebastian

Colvin, Michael

Congdon, David

Conway, Derek

Coombs, Anthony (Wyre For'st)

Coombs, Simon (Swindon)

Cope, Rt Hon Sir John

Cormack, Patrick

Couchman, James

Cran, James

Currie, Mrs Edwina (S D'by'ire)

Curry, David (Skipton & Ripon)

Davies, Quentin (Stamford)

Davis, David (Boothferry)

Day, Stephen

Deva, Nirj Joseph

Devlin, Tim

Dicks, Terry

Dorrell, Stephen

Douglas-Hamilton, Lord James

Dover, Den

Duncan, Alan

Duncan-Smith, Iain

Dunn, Bob

Durant, Sir Anthony

Dykes, Hugh

Eggar, Tim

Elletson, Harold

Emery, Rt Hon Sir Peter

Evans, David (Welwyn Hatfield)

Evans, Jonathan (Brecon)

Evans, Nigel (Ribble Valley)

Evans, Roger (Monmouth)

Evennett, David

Faber, David

Fabricant, Michael

Fairbairn, Sir Nicholas

Fenner, Dame Peggy

Field, Barry (Isle of Wight)

Fishburn, Dudley

Forman, Nigel

Forsyth, Michael (Stirling)

Fox, Dr Liam (Woodspring)

Fox, Sir Marcus (Shipley)

Freeman, Rt Hon Roger

French, Douglas

Fry, Peter

Gale, Roger

Gallie, Phil

Gardiner, Sir George

Garel-Jones, Rt Hon Tristan

Garnier, Edward

Gill, Christopher

Gillan, Cheryl

Goodlad, Rt Hon Alastair

Goodson-Wickes, Dr Charles

Gorman, Mrs Teresa

Gorst, John

Grant, Sir A. (Cambs SW)

Greenway, Harry (Ealing N)

Greenway, John (Ryedale)

Griffiths, Peter (Portsmouth, N)

Grylls, Sir Michael

Gummer, Rt Hon John Selwyn

Hague, William

Hamilton, Rt Hon Archie (Epsom)

Hampson, Dr Keith

Hannam, Sir John

Hargreaves, Andrew

Harris, David

Haselhurst, Alan

Hawkins, Nick

Hawksley, Warren

Hayes, Jerry

Heald, Oliver

Heathcoat-Amory, David

Hendry, Charles

Higgins, Rt Hon Sir Terence L.

Hill, James (Southampton Test)

Hogg, Rt Hon Douglas (G'tham)

Horam, John

Hordern, Rt Hon Sir Peter

Howard, Rt Hon Michael

Howarth, Alan (Strat'rd-on-A)

Howell, Rt Hon David (G'dford)

Hughes Robert G. (Harrow W)

Hunt, Rt Hon David (Wirral W)

Hunt, Sir John (Ravensbourne)

Hunter, Andrew

Hurd, Rt Hon Douglas

Jack, Michael

Jackson, Robert (Wantage)

Jenkin, Bernard

Jessel, Toby

Johnson Smith, Sir Geoffrey

Jones, Gwilym (Cardiff N)

Jones, Robert B. (W Hertfdshr)

Jopling, Rt Hon Michael

Kellett-Bowman, Dame Elaine

Key, Robert

Kilfedder, Sir James

King, Rt Hon Tom

Knapman, Roger

Knight, Mrs Angela (Erewash)

Knight, Greg (Derby N)

Knight, Dame Jill (Bir'm E'st'n)

Knox, Sir David

Kynoch, George (Kincardine)

Lait, Mrs Jacqui

Lamont, Rt Hon Norman

Lang, Rt Hon Ian

Lawrence, Sir Ivan

Legg, Barry

Leigh, Edward

Lennox-Boyd, Mark

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