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Question, That the proposed words be there added, put forthwith, pursuant to Standing Order No. 31 (Questions on amendments) :—
The House divided: Ayes 293, Noes 195.
AYES
Abbott, Ms Diane
Ainsworth, rh Mr. Bob
Alexander, rh Mr. Douglas
Allen, Mr. Graham
Anderson, Mr. David
Anderson, Janet
Armstrong, rh Hilary
Atkins, Charlotte
Austin, John
Bailey, Mr. Adrian
Baird, Vera
Balls, rh Ed
Banks, Gordon
Barlow, Ms Celia
Barron, rh Mr. Kevin
Battle, rh John
Bayley, Hugh
Beckett, rh Margaret
Begg, Miss Anne
Bell, Sir Stuart
Benn, rh Hilary
Benton, Mr. Joe
Berry, Roger
Betts, Mr. Clive
Blackman, Liz
Blackman-Woods, Dr. Roberta
Blears, rh Hazel
Blizzard, Mr. Bob
Blunkett, rh Mr. David
Bradshaw, Mr. Ben
Brown, rh Mr. Nicholas
Brown, Mr. Russell
Bryant, Chris
Buck, Ms Karen
Burden, Richard
Burgon, Colin
Burnham, rh Andy
Butler, Ms Dawn
Byers, rh Mr. Stephen
Byrne, Mr. Liam
Caborn, rh Mr. Richard
Cairns, David
Campbell, Mr. Alan
Campbell, Mr. Ronnie
Challen, Colin
Chapman, Ben
Chaytor, Mr. David
Clapham, Mr. Michael
Clark, Paul
Clarke, rh Mr. Tom
Clelland, Mr. David
Clwyd, rh Ann
Coaker, Mr. Vernon
Coffey, Ann
Cohen, Harry
Connarty, Michael
Cooper, rh Yvette
Corbyn, Jeremy
Cousins, Jim
Creagh, Mary
Cryer, Mrs. Ann
Cummings, John
Cunningham, Mr. Jim
Cunningham, Tony
Curtis-Thomas, Mrs. Claire
Davies, Mr. Quentin
Dean, Mrs. Janet
Denham, rh Mr. John
Devine, Mr. Jim
Dhanda, Mr. Parmjit
Dismore, Mr. Andrew
Dobson, rh Frank
Donohoe, Mr. Brian H.
Doran, Mr. Frank
Dowd, Jim
Eagle, Angela
Eagle, Maria
Efford, Clive
Ellman, Mrs. Louise
Ennis, Jeff
Etherington, Bill
Farrelly, Paul
Field, rh Mr. Frank
Fisher, Mark
Fitzpatrick, Jim
Flello, Mr. Robert
Flint, rh Caroline
Flynn, Paul
Foster, Mr. Michael (Worcester)
Foster, Michael Jabez (Hastings and Rye)
Francis, Dr. Hywel
Gapes, Mike
George, rh Mr. Bruce
Gerrard, Mr. Neil
Gibson, Dr. Ian
Gilroy, Linda
Godsiff, Mr. Roger
Goggins, Paul
Goodman, Helen
Griffith, Nia
Griffiths, Nigel
Grogan, Mr. John
Gwynne, Andrew
Hain, rh Mr. Peter
Hall, Mr. Mike
Hall, Patrick
Hamilton, Mr. David
Hamilton, Mr. Fabian
Hanson, rh Mr. David
Harman, rh Ms Harriet
Harris, Mr. Tom
Healey, John
Hendrick, Mr. Mark
Hepburn, Mr. Stephen
Heppell, Mr. John
Hesford, Stephen
Hewitt, rh Ms Patricia
Heyes, David
Hillier, Meg
Hodgson, Mrs. Sharon
Hoon, rh Mr. Geoffrey
Hope, Phil
Hopkins, Kelvin
Howarth, rh Mr. George
Howells, Dr. Kim
Hoyle, Mr. Lindsay
Hughes, rh Beverley
Humble, Mrs. Joan
Iddon, Dr. Brian
Illsley, Mr. Eric
James, Mrs. Siân C.
Jenkins, Mr. Brian
Johnson, rh Alan
Johnson, Ms Diana R.
Jones, Helen
Jones, Mr. Martyn
Jowell, rh Tessa
Joyce, Mr. Eric
Kaufman, rh Sir Gerald
Keeble, Ms Sally
Keeley, Barbara
Keen, Alan
Keen, Ann
Kelly, rh Ruth
Kemp, Mr. Fraser
Kennedy, rh Jane
Khan, Mr. Sadiq
Kidney, Mr. David
Kilfoyle, Mr. Peter
Kumar, Dr. Ashok
Ladyman, Dr. Stephen
Lammy, Mr. David
Laxton, Mr. Bob
Lazarowicz, Mark
Lepper, David
Levitt, Tom
Lewis, Mr. Ivan
Linton, Martin
Lloyd, Tony
Lucas, Ian
Mackinlay, Andrew
MacShane, rh Mr. Denis
Mactaggart, Fiona
Mahmood, Mr. Khalid
Malik, Mr. Shahid
Mallaber, Judy
Mann, John
Marris, Rob
Marsden, Mr. Gordon
Martlew, Mr. Eric
McAvoy, rh Mr. Thomas
McCabe, Steve
McCafferty, Chris
McCarthy, Kerry
McCarthy-Fry, Sarah
McCartney, rh Mr. Ian
McDonnell, John
McFadden, Mr. Pat
McGovern, Mr. Jim
McIsaac, Shona
McKenna, Rosemary
McNulty, rh Mr. Tony
Meale, Mr. Alan
Michael, rh Alun
Milburn, rh Mr. Alan
Miliband, rh Edward
Miller, Andrew
Mitchell, Mr. Austin
Moffat, Anne
Moffatt, Laura
Mole, Chris
Moon, Mrs. Madeleine
Moran, Margaret
Morden, Jessica
Morgan, Julie
Morley, rh Mr. Elliot
Mountford, Kali
Mudie, Mr. George
Mullin, Mr. Chris
Munn, Meg
Murphy, Mr. Denis
Murphy, rh Mr. Paul
Naysmith, Dr. Doug
Norris, Dan
O'Brien, Mr. Mike
Olner, Mr. Bill
Owen, Albert
Palmer, Dr. Nick
Pearson, Ian
Plaskitt, Mr. James
Pope, Mr. Greg
Pound, Stephen
Prentice, Bridget
Prentice, Mr. Gordon
Prosser, Gwyn
Purchase, Mr. Ken
Purnell, rh James
Rammell, Bill
Raynsford, rh Mr. Nick
Reed, Mr. Andy
Reed, Mr. Jamie
Riordan, Mrs. Linda
Robertson, John
Robinson, Mr. Geoffrey
Rooney, Mr. Terry
Ruane, Chris
Ruddock, Joan
Russell, Christine
Ryan, rh Joan
Salter, Martin
Sarwar, Mr. Mohammad
Seabeck, Alison
Sharma, Mr. Virendra
Shaw, Jonathan
Sheerman, Mr. Barry
Sheridan, Jim
Simon, Mr. Siôn
Simpson, Alan
Singh, Mr. Marsha
Skinner, Mr. Dennis
Slaughter, Mr. Andy
Smith, rh Mr. Andrew
Smith, Ms Angela C. (Sheffield, Hillsborough)
Smith, Angela E. (Basildon)
Smith, Geraldine
Smith, rh Jacqui
Smith, John
Snelgrove, Anne
Soulsby, Sir Peter
Spellar, rh Mr. John
Starkey, Dr. Phyllis
Stewart, Ian
Stoate, Dr. Howard
Strang, rh Dr. Gavin
Straw, rh Mr. Jack
Stringer, Graham
Stuart, Ms Gisela
Sutcliffe, Mr. Gerry
Tami, Mark
Taylor, Ms Dari
Taylor, Dr. Richard
Thornberry, Emily
Timms, rh Mr. Stephen
Tipping, Paddy
Touhig, rh Mr. Don
Trickett, Jon
Truswell, Mr. Paul
Turner, Dr. Desmond
Turner, Mr. Neil
Twigg, Derek
Ussher, Kitty
Vaz, rh Keith
Vis, Dr. Rudi
Walley, Joan
Waltho, Lynda
Ward, Claire
Watson, Mr. Tom
Watts, Mr. Dave
Whitehead, Dr. Alan
Wicks, Malcolm
Williams, rh Mr. Alan
Williams, Mrs. Betty
Wills, Mr. Michael
Wilson, Phil
Winnick, Mr. David
Winterton, rh Ms Rosie
Woodward, rh Mr. Shaun
Woolas, Mr. Phil
Wright, Mr. Anthony
Wright, David
Wright, Mr. Iain
Wright, Dr. Tony
Wyatt, Derek
Tellers for the Ayes:
Siobhain McDonagh and
Mr. Wayne David
NOES
Afriyie, Adam
Ainsworth, Mr. Peter
Alexander, Danny
Amess, Mr. David
Ancram, rh Mr. Michael
Atkinson, Mr. Peter
Bacon, Mr. Richard
Baker, Norman
Baron, Mr. John
Barrett, John
Beith, rh Sir Alan
Bellingham, Mr. Henry
Benyon, Mr. Richard
Bercow, John
Binley, Mr. Brian
Bone, Mr. Peter
Boswell, Mr. Tim
Brake, Tom
Brazier, Mr. Julian
Breed, Mr. Colin
Brokenshire, James
Brooke, Annette
Browning, Angela
Bruce, rh Malcolm
Burns, Mr. Simon
Burstow, Mr. Paul
Burt, Alistair
Burt, Lorely
Butterfill, Sir John
Cable, Dr. Vincent
Campbell, Mr. Gregory
Campbell, rh Sir Menzies
Carmichael, Mr. Alistair
Carswell, Mr. Douglas
Chope, Mr. Christopher
Clark, Greg
Cormack, Sir Patrick
Cox, Mr. Geoffrey
Crabb, Mr. Stephen
Curry, rh Mr. David
Davies, Mr. Dai
Dodds, Mr. Nigel
Duddridge, James
Duncan Smith, rh Mr. Iain
Dunne, Mr. Philip
Ellwood, Mr. Tobias
Evans, Mr. Nigel
Evennett, Mr. David
Fabricant, Michael
Fallon, Mr. Michael
Farron, Tim
Featherstone, Lynne
Foster, Mr. Don
Francois, Mr. Mark
Fraser, Christopher
Gale, Mr. Roger
George, Andrew
Gibb, Mr. Nick
Gidley, Sandra
Gillan, Mrs. Cheryl
Goldsworthy, Julia
Goodman, Mr. Paul
Gray, Mr. James
Green, Damian
Greening, Justine
Grieve, Mr. Dominic
Gummer, rh Mr. John
Hague, rh Mr. William
Hammond, Stephen
Hancock, Mr. Mike
Harper, Mr. Mark
Harris, Dr. Evan
Harvey, Nick
Hayes, Mr. John
Heald, Mr. Oliver
Heath, Mr. David
Heathcoat-Amory, rh Mr. David
Hemming, John
Hendry, Charles
Herbert, Nick
Hogg, rh Mr. Douglas
Hollobone, Mr. Philip
Holmes, Paul
Horam, Mr. John
Horwood, Martin
Howarth, Mr. Gerald
Howell, John
Hughes, Simon
Huhne, Chris
Hunt, Mr. Jeremy
Hunter, Mark
Hurd, Mr. Nick
Kawczynski, Daniel
Keetch, Mr. Paul
Key, Robert
Kirkbride, Miss Julie
Laing, Mrs. Eleanor
Lait, Mrs. Jacqui
Lamb, Norman
Lancaster, Mr. Mark
Laws, Mr. David
Leech, Mr. John
Letwin, rh Mr. Oliver
Lewis, Dr. Julian
Liddell-Grainger, Mr. Ian
Lidington, Mr. David
Lilley, rh Mr. Peter
Loughton, Tim
Maclean, rh David
MacNeil, Mr. Angus
Main, Anne
Malins, Mr. Humfrey
Maples, Mr. John
May, rh Mrs. Theresa
McCrea, Dr. William
McIntosh, Miss Anne
McLoughlin, rh Mr. Patrick
Miller, Mrs. Maria
Milton, Anne
Moore, Mr. Michael
Moss, Mr. Malcolm
Mundell, David
Murrison, Dr. Andrew
Neill, Robert
Newmark, Mr. Brooks
O'Brien, Mr. Stephen
Öpik, Lembit
Ottaway, Richard
Paice, Mr. James
Paterson, Mr. Owen
Penrose, John
Pickles, Mr. Eric
Price, Adam
Prisk, Mr. Mark
Pritchard, Mark
Pugh, Dr. John
Randall, Mr. John
Redwood, rh Mr. John
Reid, Mr. Alan
Rennie, Willie
Rifkind, rh Sir Malcolm
Robathan, Mr. Andrew
Robertson, Angus
Robertson, Hugh
Robertson, Mr. Laurence
Robinson, rh Mr. Peter
Rogerson, Dan
Rosindell, Andrew
Ruffley, Mr. David
Russell, Bob
Sanders, Mr. Adrian
Scott, Mr. Lee
Selous, Andrew
Shapps, Grant
Simmonds, Mark
Simpson, Mr. Keith
Smith, Sir Robert
Soames, Mr. Nicholas
Spicer, Sir Michael
Spink, Bob
Spring, Mr. Richard
Stanley, rh Sir John
Streeter, Mr. Gary
Stuart, Mr. Graham
Stunell, Andrew
Swayne, Mr. Desmond
Swinson, Jo
Syms, Mr. Robert
Tapsell, Sir Peter
Taylor, Mr. Ian
Taylor, Matthew
Teather, Sarah
Thurso, John
Timpson, Mr. Edward
Tredinnick, David
Turner, Mr. Andrew
Tyrie, Mr. Andrew
Vaizey, Mr. Edward
Vara, Mr. Shailesh
Villiers, Mrs. Theresa
Wallace, Mr. Ben
Watkinson, Angela
Weir, Mr. Mike
Whittingdale, Mr. John
Wiggin, Bill
Willetts, Mr. David
Williams, Mark
Williams, Stephen
Willott, Jenny
Wilshire, Mr. David
Wilson, Sammy
Winterton, Ann
Winterton, Sir Nicholas
Wright, Jeremy
Young, rh Sir George
Tellers for the Noes:
Mr. Crispin Blunt and
David Simpson
Question accordingly agreed to.
Mr. Deputy Speaker forthwith declared the main Question, as amended, to be agreed to.
That this House notes that the Governor of the Bank of England’s letter of 16th June 2008 to the Chancellor of the Exchequer said that 1.1 per cent. of the 1.2 per cent. increase in recent months in inflation was due to global energy and food prices; further notes the Government’s global leadership and supports the Government’s action to tackle price rises with action on an international level, including pushing for a successful conclusion to the Doha round of negotiations in the World Trade Organisation and examining the impact of biofuels on food production; acknowledges the significant increases in world prices, with the oil price rising by 80 per cent. and food prices up by 60 per cent. in the 12 months to May 2008; recognises that these increases in global prices affect every country and put real pressure on family budgets throughout the UK; further acknowledges that the measures that the Government has taken and will continue to take to support families, individuals and businesses throughout the UK include extra tax credits, increased tax allowances, further winter fuel payments and increases in child benefit; considers that a strong and stable economy delivers the most important support for working families; and supports the Government’s actions that have delivered unemployment, inflation and interest rates all at historically low levels.
Deferred divisions
Mr. Deputy Speaker (Sir Michael Lord): Before we go on to the next item of business, I must announce the results of Divisions deferred from a previous day.
On the motion on the draft Immigration (Biometric Registration) Regulations 2008, the Ayes were 249, the Noes were 56, so the motion was agreed to.
On the motion on the draft Immigration (Biometric Registration) (Civil Penalty Code of Practice) Order 2008, the Ayes were 249, the Noes were 56, so the motion was agreed to.
On the motion on the draft Northern Ireland (Sentences) Act 1998 (Specified Organisations) Order 2008, the Ayes were 285, the Noes were 118, so the motion was agreed to.
[The Division List s are published at the end of today’s debates.]
Council Tax
Mr. Deputy Speaker (Sir Michael Lord): Before we start the debate, it may help if I offer the House guidance on the scope of debate on the order. The order applies to Lincolnshire police authority. The authority was originally considered for capping, along with six other police authorities and Portsmouth city council. The debate may cover the position of Lincolnshire police authority and refer to the fact that the other seven authorities are not to be capped, but it would not be in order to focus exclusively on those authorities that are not being capped, as they are not covered by the order. I hope that that is helpful to the House.
5.6 pm
The Minister for Local Government (John Healey): I beg to move,
That the draft Council Tax Limitation (Maximum Amounts) (England) Order 2008, which was laid before this House on 26th June, be approved.
The order will be made under section 52F(4) of the Local Government Finance Act 1992. As you have said, Mr. Deputy Speaker, it caps the rise in council tax levied by Lincolnshire police authority this year. It is the only one of our decisions on eight designated authorities that requires parliamentary action at this stage, and that decision is therefore the focus of our debate this afternoon. Subject to the House’s approval, the order will be made, and I will issue a notice to the Lincolnshire authority about its maximum 2008-09 budget requirement—in other words, its cap. The authority will then have to recalculate its budget so that it is at or below that maximum, and recalculate its precept on the council tax. It will then have to arrange for the district councils, as billing authorities, to send out revised council tax bills for the current year.
In December and February, I said in statements to the House on the formula grant distribution for 2008-09 that keeping council tax under control remains a high priority for the Government. I said that we expected the average council tax increase in England to be substantially below 5 per cent. this year. I also said that we would not hesitate to use our reserve council tax capping powers as necessary to protect council tax payers from excessive council tax increases. No authority could have been unclear about our intent.
Most authorities recognised the public concern about council tax levels, particularly at this time, when all households are under pressure. Some 98 per cent. of authorities did not set excessive increases; two thirds set increases below 4.1 per cent.; one in six set increases below 2.5 per cent. this year; and a further 21 authorities either did not increase council tax or reduced it. That means that this year there has been the lowest average increase in council tax for 14 years at just 4 per cent. Alongside that, by 2010-11, central Government grant for local government will have increased by 45 per cent. above inflation, and it has consistently remained above inflation each and every year for the past decade. Also, investment in police has more than doubled since 1997, with an extra £3.6 billion. Funding is higher and councils are deciding to keep tax rises lower. The threat of council tax capping is helping to keep those rises down.
However, a small minority of authorities imposed excessive increases on their council tax payers. As a result, as I explained in my statement to the House on 27 March, we designated eight authorities—seven police authorities and one local authority—with a view to capping them in-year. All eight authorities challenged their proposed cap, as is their right. My right hon. Friend the Minister for Security, Counter-Terrorism, Crime and Policing and I met all seven police authorities together to hear their cases in person, and I also met Portsmouth city council to hear its case. Having considered carefully the representations that they made to us, I made a statement to the House on 26 June.
Keith Vaz (Leicester, East) (Lab): I thank my hon. Friend the Minister for the way in which both he and the Minister for Security, Counter-Terrorism, Crime and Policing accepted representations from Leicestershire police authority and others for which caps were proposed. My hon. Friend has said that Leicestershire will be capped next year. Can he confirm that he will be prepared to accept more representations before finally deciding on next year’s position?
John Healey: That will indeed be the case. We propose to designate Leicestershire, Warwickshire and Cheshire police authorities for next year and allow them a maximum council tax increase of 3 per cent. When we formally announce the confirmation of that, there will be an opportunity for them to make representations, which we will take into account. I wish to signal clearly that we intend to follow through the decision that I announced on 26 June in respect of my right hon. Friend’s police authority.
We are protecting council tax payers in those three counties, and we will protect others by setting a lower threshold for capping in future years for Bedfordshire, Norfolk and Surrey police authorities and Portsmouth city council. Finally, we will protect council tax payers in Lincolnshire by going ahead with setting a maximum budget requirement for the police authority, although at a higher level than I proposed on 27 March. It will be equivalent to a 26 per cent. increase in council tax, rather than the 79 per cent. increase that it planned.
We are satisfied that all eight authorities can live with the action that we have taken and that none of the seven police authorities will need to reduce their number of police officers as a result.
Mr. Douglas Hogg (Sleaford and North Hykeham) (Con): The Minister has fairly said that this is to be effectively a standstill budget for Lincolnshire. Does he accept that given that, Lincolnshire police will not be able to improve its services in either the current year or future years?
John Healey:
The police authority told us that to put in place a balanced budget, it needed £5.3 million more than our proposed cap would have allowed, which included the cost of rebilling. We have gone further than that and allowed an increase of £5.7 million. It has confirmed in a press release that there will be no redundancies as a result of the decision, and it must now take the tough decisions that every police authority and local authority has to take. It must decide how to make the efficiencies that are needed and improve services
at the same time within a tough budget and tough financial circumstances. I am confident that it will be able to do that.
Mr. John Hayes (South Holland and The Deepings) (Con): The Minister has acknowledged in the House that Lincolnshire has specific problems, and he was good enough to seek and receive representations from the authority. Given the history of policing in Lincolnshire, the need to develop the service offered is profound—a “rock-solid” case, in the chief constable’s words. The budget may allow Lincolnshire police to stand still, but surely it will not allow it to grow and develop in the way that it wishes.
John Healey: The hon. Gentleman is always assiduous in making a strong case for his area’s interests, but the police authority budget, following the action that I have proposed to the House, means that the authority will have more than £10 million above the level of last year’s budget. It can add a 26 per cent. rise on its council tax precept, which is more than it said that it needed to set a balanced budget. We have taken into careful account the full case made by the authority, both in writing and in person to my right hon. Friend the Minister for Security, Counter-Terrorism, Crime and Policing, who, I am pleased to say, is sitting on the Front Bench, and to me.
Mark Simmonds (Boston and Skegness) (Con): I am grateful to the Minister for giving way—he has been extremely generous. Does he accept and acknowledge that the very fact that he has allowed a 26 per cent. increase in the precept supports the Opposition’s view that there are serious problems with Home Office funding for Lincolnshire police authority funding?
John Healey: The decision reflects aspects of the case, to which we listened carefully and which we accepted, made by the police authority, which challenged our original decision under the set process. However, the hon. Gentleman must take into account the fact that this year Lincolnshire police authority has received the fourth-largest rise in police grant of any police authority in the country. It is therefore not the case—this cannot seriously be argued—that the Government have not taken into account the pressures faced by Lincolnshire police authority. It is not right—I have not heard any Opposition Member argue for this—that that police authority should be able to impose a 79 per cent. increase in council tax on Lincolnshire council tax payers this year.
Lembit Öpik (Montgomeryshire) (LD): Perhaps the Minister has missed the principle. I served on Newcastle city council when it was capped by a Conservative Government, and I remember the objections from the Labour party and Labour councillors to the principle of central Government making that diktat. Surely, it is up to voters in the local area to make the judgment and decide whether they agree with the decisions and so on, rather than requiring an intervention from Westminster.
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