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9.28 pm
The Financial Secretary to the Treasury (Dawn Primarolo): I welcome the hon. Member for Daventry (Mr. Boswell) to his new post. I look forward to our future debates, and acknowledge his experience, which goes back for some 30 years. As he said, while he was advising on the Finance Act 1968, I was 14--when I was enjoying an excellent comprehensive education, which has equipped me with the qualifications to establish myself in society and to contribute to that society. The Budget is about offering to young men and women the opportunities which the hon. Gentleman's Government unfortunately denied them.
The hon. Member for Daventry talked about controversy, said that he did not wish to trade insults across the Dispatch Box, and reflected on his past. When I entered the House 10 years ago and made my maiden speech, I spoke of the young men and women in my constituency who were despondent, disappointed and rejected and who believed that society did not value them as individuals. Unemployment is a personal disaster as well as socially destructive but, some 10 years later, this Government have to take action to tackle it because the previous Government failed to do so.
I remind the House that the last time the Conservative party advised members of the public to seek advice on their pensions, it led to this country's biggest scandal in pension mis-selling. It ill behoves the hon. Member for Daventry and his colleagues to scaremonger and to frighten pensioners.
Yesterday and today, many hon. Members have made their maiden speeches. They were mostly Labour Members; that reflects our majority in the House, but I assure the hon. Member for Daventry that we have no intention of stifling debate or forcing through legislation, as his party did with the poll tax, because we intend to keep our excellent Prime Minister, not pull him down as the Conservatives did with their Prime Minister over the poll tax.
In yesterday's debate, my hon. Friends the Members for Eastwood (Mr. Murphy), for Brentford and Isleworth (Mrs. Keen), for Redditch (Jacqui Smith), for Enfield, North (Ms Ryan) and for Pontefract and Castleford (Ms Cooper) spoke in support of the windfall levy and talked of the importance of giving young people the opportunities for work and training. They supported the principle of rebuilding the health service and the principles that the previous Government allowed to be undermined and destroyed. They acknowledged the importance of reducing VAT on fuel and the benefits that that brings to the elderly. Conservative Members speak of their concern for pensioners, but I do not remember them showing that concern when they introduced VAT on fuel in the first place, having promised that they would not.
What seems to shock Conservatives Members is, first, that the Government intend to keep their election promises; and, secondly, that a new Government would want to introduce a Budget to set out the course that they intend to take. When the Conservative Government were elected for the first time, they introduced such a Budget, so I cannot see what is so terribly unusual about this Government wanting to do likewise, especially as we made clear in our manifesto our intention to do so.
My hon. Friend the Member for Warwick and Leamington (Mr. Plaskitt) gave us a scenic tour of his constituency. He, too, underlined the importance of ensuring training and skills for our young people. We must avoid the trap that the previous Government reversed those young people into--the trap of low wages, low skills and only rare chances of jobs that offer opportunities, if they have jobs at all.
My hon. Friend the Member for South Ribble (Mr. Borrow) spoke movingly of the cruel fate that denied Dennis Golden, the previously selected Labour candidate, the chance to contest that constituency. He had to resign because of ill health and then unfortunately died before he was able to see the election of a Labour Government. My hon. Friend spoke fluently without notes on the importance of jobs. I think that all hon. Members will acknowledge his thoughtful contribution and look forward to hearing him in the future.
My hon. Friend the Member for Leicester, West (Ms Hewitt) talked about a Budget for jobs. She also paid tribute to her predecessor, Greville Janner. I am sure that Greville would not mind me saying that he was a character in the House who will be sorely missed, although my hon. Friend, who is one of 101 Labour women, is an excellent addition to the House and will make a good contribution. She described graphically the needs of her constituents for access to jobs and training to liberate their talents and ensure that they can contribute to society. That was echoed by my hon. Friend the Member for Lincoln (Gillian Merron), who showed a clear understanding of the needs of her constituents.
My hon. Friend the Member for Wirral, West (Mr. Hesford) made it clear that we were delivering on our election promises. He acknowledged the contribution of his predecessor, David Hunt. He added a personal pledge, saying that he intended to answer all his constituents' letters by return post. I wish him good luck and hope that he is able to keep that pledge.
My hon. Friend the Member for Staffordshire, Moorlands (Ms Atkins) spoke of her predecessor, Sir David Knox, and the kind support that he has given her. I agreed entirely with her argument about the desperate need for a minimum wage--a floor under which wages cannot fall--and the importance of that for the future of Britain. I took particular note of her spirited representations for her local tax office. She rightly drew attention to the importance of self-assessment. I shall consider her points carefully.
The hon. Member for Bath (Mr. Foster) asked some specific questions about the provisions in the welfare-to-work programme. The programme will be carefully monitored in all respects--quality of training, quality of work experience and how people get on in keeping jobs. We shall also always keep open the opportunity for those who do not initially accept the option to take part to choose to do so. I stress again the importance of the advice, support, counselling and help that young men and women will get before their placement and new career.
Young people who have difficulties--special needs, homelessness or drug abuse problems, which blight so many lives--will have special advice and support. The organisations involved will have a track record of success in that area. It is our intention that the programme we propose should be about inclusion and opportunities, and not about exclusion and punishment.
In what has been an interesting debate this evening, one contribution hit an all-time low. I refer to the speech by the hon. Member for Mid-Norfolk (Mr. Simpson), who started by talking about the length of women's skirts and cross-dressing as an indicator of economic prosperity. Although the House appreciates a joke, he should perhaps refine his a little more before he speaks again.
The hon. Gentleman made comments about private medical insurance, and described Labour's proposals as nasty and hitting at pensioners. He really should check his facts. Between 1990, when the scheme was introduced by the previous Government, and now, there has been no significant growth in the number of people using private medical insurance relief. Some £140 million could be better spent, because the people getting the relief are those who already had insurance premiums. If Conservative Members are so worried about pensioners, will they explain why they took away the zero rate of VAT on fuel?
The Government have put forward clear proposals. We have a Budget equipping Britain for the long-term future. We have reflected the priorities of the people. Disillusionment does not stalk the land; instead, there is acceptance and support of the Chancellor's proposals. The Budget fulfils our election promises, in stark contrast with the practice of the previous Government. It is about a new deal for the unemployed, and about investment in industry and infrastructure. It is about fair taxes and economic stability. The Budget is for the long term and it is about equipping Britain for the future while delivering now on the priorities of education and health.
During the election, Labour promised that education would be our number one priority. This Budget allocates £2.3 billion extra spending for schools and £1.2 billion more for health while ensuring that Government borrowing is reduced. This Government are determined to
encourage a fair society in which the many and not the few can share high living standards and greater job opportunities.
Mr. Boswell:
I sense that the hon. Lady may be coming to the end of her remarks--
Dawn Primarolo
indicated dissent.
Mr. Boswell:
In that case, I am prepared to wait. I hope that we can have her assurance that she will answer the questions I posed.
Dawn Primarolo:
I can assure the hon. Gentleman that I was not about to bring my remarks to a close.
The new deal for the unemployed fulfils our manifesto commitment, and it will be paid for by the windfall tax on the privatised utilities. The Chancellor made it clear yesterday that after full consultation with the regulators, there is a clear judgment that the tax can be paid for without there being an impact on prices, investment, service standards or the employment prospects of those currently in the utilities. Indeed, the Public Accounts Committee has made it clear that in the case of the water companies, which have made profits totalling £7.4 billion, and in the case of the regional electricity companies, which have made profits of £8.7 billion, the profits were in excess of the level that the respective director generals have judged it reasonable to allow in the future.
The Budget contains a popular set of proposals that people have accepted. It provides opportunities for the unemployed, and assists lone parents back into full-time employment by helping them with child care provision. Some Opposition Members have complained that we have not invested enough in child care. That is rich coming from them, when, for 18 years, the Conservative Government presided over the worst investment in child care, denying people access to quality provision.
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