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The facts are that we have the highest personal debt of any country in the world, one of the highest budget deficits in the world, and our regulation system has failed. In fact it failed so badly that the Prime Minister’s new Treasury Minister, Lord Myners, told the House of Lords this week that he wanted there to be a public inquiry into the regulatory failure. Can the Prime Minister tell us when we will have that public inquiry?

The Prime Minister: The Financial Services Secretary said no such thing, and I believe that the right hon. Gentleman is proving every time he speaks in the House that he is a novice in parliamentary procedure. When I referred to debt, I referred to low national public debt, and that is exactly what we have achieved since 1997 by reducing debt from 44 per cent. of national income to 38 per cent. this year. The Conservative party left us with higher levels of debt, and if the right hon. Gentleman wants to go back in history, he should remember his role as economic adviser to the Conservative Government when 3 million people were unemployed and, at the same time, we had interest rates at 18 per cent. As for borrowing, last week the shadow Chancellor said borrowing was the wrong approach. The Leader of the Opposition, however, said that borrowing

The only change they represent is that they change their minds every week.

Mr. Cameron: The Prime Minister says that I have in some way misrepresented what Lord Myners said. Let me explain exactly what he said. In the other place, Lord Lea asked him:

Lord Myners replied:

That is what he said. [Interruption.] That is the whole thing. He said we should have a public inquiry, and we should have one. Is not the truth that in Britain people are losing their homes, small businesses are closing, unemployment is rising and manufacturing output is falling again and that, by refusing to hold a public inquiry, the Prime Minister is yet again demonstrating that he cannot provide the change people want? On the day the American people voted for change, are not people in this country entitled to ask how much longer they will have to put up with more of the same from a Government who have failed?

The Prime Minister: The reason why the American people voted for change is that— [ Interruption. ]

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Mr. Speaker: Order.

The Prime Minister: The reason why the American people have voted is that they want progressive policies. They voted for a fiscal stimulus, opposed by the conservative; they voted for a rise in minimum wage, opposed by the conservative; they voted for regulation of pensions and mortgages, opposed by the conservative; they voted for tax credits, opposed by the conservative. The truth is that the Conservative party’s policies are rejected in America and in Britain by people who do not want to pursue them.

If the right hon. Gentleman will forgive me, on this day of all days, I believe that we should end this exchange by recognising the truly historic significance for America of the decision that has been made by the American people. They have demonstrated again and again the enduring strengths of their democracy and their values, and we will work closely with the new Administration, because their progressive policies are similar to ours.

Jim Dobbin (Heywood and Middleton) (Lab/Co-op): Like the banks, the energy companies need considerable regulation. What can my right hon. Friend do to control gas and electricity prices for my poor families and pensioners?

The Prime Minister: We have already raised the winter allowance for pensioners, and it will be paid in the next few weeks; that is £250 for the over-60s and £400 for the over-80s. We are already coming down hard on the gas and electricity companies so that social tariffs—that is, the same rate as last year—are available to many low-income families in this country. We are continuing to talk to the electricity and gas companies about how the £900 million levy that we charged upon them can be used to give greater help to people who are poor or low-income, and to families on modest incomes as well. We will continue to do what we can to help people through these difficult times.

Mr. Nick Clegg (Sheffield, Hallam) (LD): I would like to add my own expressions of sympathy and condolence to the family and friends of the soldier from the Royal Gurkha Rifles who tragically lost his life in Afghanistan this week. Of course, I would also like, on behalf of all Liberal Democrats, to join in congratulating Barack Obama on his extraordinary victory as the new President of the United States, and to wish him luck, because the hopes and expectations that people have of him to change America and change the world are immense.

The Prime Minister just said that he shares lots of policies with the new President-elect, so he will be aware that the central policy that Barack Obama fought on in his election was to cut taxes for people on low and middle incomes, paid for by the very wealthy. Why will the Prime Minister not do the same here?

The Prime Minister: What Barack Obama did not fight on was a policy for £20 billion of public spending cuts, and that is the effect of the policy of the Liberal party.

Mr. Clegg: The fact is that this Prime Minister has fixed things so that a millionaire pays less in tax on their capital gains than their cleaner does on their wages. He is not learning from Barack Obama; he is copying the Conservatives, who want to cut more taxes for millionaires
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and not give an extra penny to anyone else. So will he cancel his special tax breaks for the very wealthy to put more money into the pockets of hard-pressed families right now?

The Prime Minister: I think that the right hon. Gentleman is a bit behind the times. We raised capital gains tax from 10 per cent., and at the same time we took action on non-domiciles in the United Kingdom, but I have to remind him that a tax and spending policy must add up. If he is going to propose £20 billion of public spending cuts, he is out of touch with the British people.

Sir Stuart Bell (Middlesbrough) (Lab): Is it not 40 years ago that Martin Luther King said, “I have a dream”, and was that dream not fulfilled in the election yesterday? Given that the Prime Minister will be in the United States on 15 November for a financial conference with President Bush, will he also take time to see the President-elect to discuss the many issues of foreign policy that we have together?

The Prime Minister: I am grateful to my hon. Friend, who undoubtedly underlines the significance of what has happened in the United States: more people voting than ever before; the first black President elected by the American people; and more young people engaged in political debate than ever before. I will continue my discussions with Senator Obama, the President-elect, and I hope to talk to him very soon.

Q2. [233008] Mr. John Hayes (South Holland and The Deepings) (Con): The Prime Minister knows that since 1997 opportunities to learn and skill in the workplace, in communities and in further education colleges have been restricted. He looks surprised, but Government figures show that numbers in FE colleges alone fell by 20 per cent. last year, and the National Institute of Adult Continuing Education says that 1.5 million places have been lost in adult education since 2005. Why has he so savagely cut adult education, when, given that Brown’s bust means that more people will need to reskill and retrain, it is vital that we provide those opportunities?

The Prime Minister: There are more people in education than ever before. I hope that the hon. Gentleman will go back to look at the statistics, which show that the number of young people and the number of adults who have been benefiting from our courses since 1997 is far greater than was ever the case in the years before—we wish to continue that. One example of this is the apprenticeship, which is available to adults as well as to young people. We have trebled the number of apprenticeships in recent years.

Mr. Parmjit Dhanda (Gloucester) (Lab): President-elect Obama has consistently opposed the war in Iraq since 2002, and he has made it his stated policy to withdraw all US combat troops by April 2010. That is a very significant policy change. Does my right hon. Friend consider it a change in which we should all believe?

The Prime Minister: I announced in July that, as we completed our mission in Iraq, there would be a fundamental change in what our troops do in the first half of next year. We have, of course, completed a lot of work in training the Iraqi forces, and we will continue to do that until completion. We wish to pass control of the
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airport across to Iraqi authorities. We wish to help to speed up economic development in Basra, and we wish to see the local elections take place. We have moved from a role in combat to one of overwatch, and we will have a further fundamental change of mission next year.

Q3. [233009] Mr. Bernard Jenkin (North Essex) (Con): The Prime Minister keeps seeking to reassure home owners and small businesses by urging the banks to pass on rate cuts to their borrowers, but the Abbey National is putting up its lending margins today. Why does he keep making such meaningless reassuring noises, when he cannot even persuade his own banks—the ones he owns—to pass on their rate cuts?

The Prime Minister: First, we do not own the Abbey National bank; it is owned by Santander. The second thing that I must point out to the hon. Gentleman is that interest rates have been cut from 53/4 per cent. to 41/2 per cent, and the Bank has said that there is more scope for interest rate cuts. May I explain to the Conservatives what we have been trying to do in the past few weeks? We have been trying to get the liquidity into the system, recapitalise our banks and then get them to resume the lending that is necessary. The LIBOR has decreased from 6.25 per cent. to 5.25 per cent. We are starting to make progress, but I agree with what he says: that we want the banks and building societies to pass on the interest rate cuts to their mortgage holders.

Mr. Elliot Morley (Scunthorpe) (Lab): Does my right hon. Friend agree that the President-elect’s inspirational address identified a number of key objectives, one of which was to help “a planet in peril”? Does my right hon. Friend agree that this time of economic downturn is one in which to invest in infrastructure for a low-carbon future, both in the public and private sector, and to work with the new US Administration on a new green deal that would benefit us all?

The Prime Minister: That is exactly what we want to do. We are committed to an 80 per cent. cut in carbon emissions by 2050. I believe that the policy is similar to that of the incoming US Administration. We want to work together towards an agreed solution in Copenhagen next year. We recognise that there are benefits in jobs, as well as in reductions in carbon emissions. That is why a new deal for the environment in America and Britain can create thousands of jobs for people in both continents.

Q4. [233010] Mr. Graham Brady (Altrincham and Sale, West) (Con): The Prime Minister has guaranteed British savings in the Icelandic bank, Icesave. When will he do the same for the 1 million blameless people who have seen their pensions savings decimated in Equitable Life?

The Prime Minister: We had a report by the ombudsman and there will be a statement on that soon.

Q5. [233011] Ms Angela C. Smith (Sheffield, Hillsborough) (Lab): More than 70 Members have signed early-day motion 2189 calling for the inclusion of the marine Bill in this year’s Queen Speech. Will the Prime Minister assure us that the Bill will be included and that it will give adequate protection to our marine wildlife?

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The Prime Minister: I know that my hon. Friend has taken a great interest in these matters. We are discussing them with the devolved Administrations to deliver a coherent approach across the United Kingdom. The Government continue to prepare the Bill for introduction early in the fourth Session and do not intend to reduce its scope or coverage.

Q6. [233012] Mr. Gerald Howarth (Aldershot) (Con): Does the Prime Minister accept that when Major Morley was forced to deploy his troops in Snatch Land Rovers, he was given no choice, contrary to all the ministerial assurances given to commanders in the field that they would have whatever equipment they required?

The Prime Minister: That was a sad incident involving the deaths of young people serving our country. However, in recent years, we have done our best to provide the necessary equipment. We have spent more than £1 billion on new vehicles for operations. In 2006, we ordered 108 Mastiffs and, in 2007, took steps to increase vehicle numbers. We ordered 150 Ridgbacks and the first Jackals as part of a constant review of capability. In June, operational commanders were asked by the Defence Minister to look again at our vehicle options. More armoured vehicles were decided upon, and last week we were able to announce the purchase of nearly 700 vehicles and an upgrade of more than 200 vehicles. That is a total of 1,200 new vehicles, and that is why the Conservative Chairman of the Defence Committee said:

Mr. David Winnick (Walsall, North) (Lab): Is my right hon. Friend aware that those of us who are pro-American hope that the very welcome result of the presidential election will result in the United States regaining the respect of the international community? When the new President-elect takes office next year, I hope that one of the first steps he will take will be to end the torture of political prisoners. That would be a very welcome step.

The Prime Minister: The President-elect has promised to close Guantanamo Bay, which would be a major step forward.

Q7. [233013] Mr. Nick Hurd (Ruislip-Northwood) (Con): Up to £200 million given by the public to charities has been frozen as a result of the banking crisis. Will the Government introduce measures to support that vital sector before it has to start cutting services to the people most vulnerable to a deep recession, for which the Prime Minister has prepared us so badly?

The Prime Minister: I, too, want to do my best to help charities. We created Gift Aid, which allowed them to get very considerable relief, and over recent years we have given substantial money to work in partnership with charities. Of course, we will consider anything that helps to protect the charitable sector, and we are already considering a number of measures through which to do so.

Q8. [233014] Mr. Dennis Skinner (Bolsover) (Lab): Does the Prime Minister agree that it is quite remarkable that, after the economic tsunami lapped the shores of every continent, countries of the left, right and centre— [Interruption.]

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Mr. Speaker: Order.

Mr. Skinner: Is it not quite remarkable that Governments of the left, right and centre have adopted our policy of taking over banks and recapitalising them? We are fixing not only our own roof here in Britain, but roofs around the world.

The Prime Minister: We are doing our best to work with other countries. One of the reasons I went to the Gulf was to talk to other countries about how we can better prepare for the future. The Conservative party opposed all our measures on Northern Rock, and on the banking crisis and HBOS. The shadow Chancellor opposed what we did on share speculation. Conservative Members also opposed what we did on regulation—they wanted deregulation. They have no answers to the problems facing the country.

Mr. Stephen Dorrell (Charnwood) (Con): Does the Prime Minister agree that it would be an absurd dumbing down of the principle of democracy if last week he felt himself able, quite rightly, to express his views about the antics of Russell Brand and Jonathan Ross as employees of the independent BBC but felt himself unable this week to express his views about the increasingly obvious fact that the independent Bank of England has moved too slowly and by too small a margin to reduce interest rates?

The Prime Minister: May I just quote back to the right hon. Gentleman what the shadow Chancellor said when the Bank of England was made independent? He said that it was independent to make its decisions, and that is the way that it should be.

Q9. [233015] Barry Gardiner (Brent, North) (Lab): The whole House was delighted by the commitment made by my right hon. Friend the Secretary of State for Health to ending prescription charges for all cancer patients, but there are other long-term patients who want to know whether the Government will extend that to them as well. Will the Prime Minister adopt a phrase from Senator Obama and say, “Yes, we can”?

The Prime Minister: We are committed to greater fairness in the NHS, and we know the worries of people who have long-term illnesses. We have agreed to abolish prescription charges for all cancer patients next year, and we are committed to abolishing charges for everyone with a long-term condition as we deliver savings in the drugs budget over the coming years. [ Interruption. ] The Conservatives are clearly not interested in the future of the NHS. We created it, and we are interested.

Mr. Andrew Pelling (Croydon, Central) (Ind): In what way does the Prime Minister expect the nature of the special relationship with America to change under President Obama?

The Prime Minister: We have worked very closely with America over the past few months on the economic crisis. President Bush has called the leaders’ meeting in Washington, and there has been a co-ordinated cut in interest rates, led by the central banks of America. Britain and Europe. I believe that, over the next few months, we will have to work even more closely to deal
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with the international and national repercussions of what is happening in the economies of the world. Senator Obama has already indicated that he wishes more
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co-ordinated global action on these matters, and I believe that we will be able to work together very closely and lead the world in taking us through these difficult times.

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