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Finance Bill

I do not accept the hon. Gentleman’s point. My argument is about the importance of prioritising the resources we have to help the poorest pensioners. I do not believe the prescription of the Conservative party, of simply increasing the basic state pension by the rate of earnings, is the answer. With over a fifth of pensioners retiring now on more than £400 a week, I do not believe that that would be a justifiable use of the inevitably restricted resources that any Government have at their disposal. The House will welcome the fact that the wife of the hon. Member for Shipley (Philip Davies) happily gave birth the other day and I am glad that he was able to deliver his maiden speech, even if it was slightly after the due date. He paid a generous and humorous tribute to Chris Leslie, a local Shipley lad, like the hon. Gentleman, who brought great abilities to this House. Like Opposition Members, I am confident that Chris will be back in this House, whether for Shipley or for somewhere else. However, the current hon. Member for Shipley’s speech indicated that he might have some of the same qualities as Chris, and I wish him well. The hon. Member for Wellingborough (Mr. Bone) has worked hard to gain his place in this House and he paid generous tribute to his predecessors and to his constituency, and I pay tribute to his very good maiden speech. The hon. Member for Beverley and Holderness is not in his place, regrettably, but he spoke with equal passion about his constituency and about Europe. I will alert my right hon. Friend the Prime Minister to the invitation to Beverley minster, although I say to the hon. Gentleman, ““Don’t hold your breath.”” The hon. Member for Surrey Heath (Michael Gove) gave a classic maiden speech, although it may have been a touch too bipartisan for his long-term good within the Conservative party. He displayed the historical and literary breadth and background that we know he brings to this House, with references ranging from John Gay to John Betjeman to Country Life. On the contributions by old hands, my hon. Friend the Member for Newcastle upon Tyne, North (Mr. Henderson) argued in favour of clauses 7 to 10, which rightly bring more flexibility to the provision of pensions. That will increasingly be needed and he is right that the Bill supports the move in that general direction. He also argued that clauses 13 to 15, on scientific research organisations, are important because they will help to support more investment in that part of the British economy. He spoke with knowledge and long experience, both in the House and in his previous role as a trade union official. The hon. Member for Grantham and Stamford (Mr. Davies) was just warming up when he abruptly sat down. We are pleased to see him back in his seat and hope that his temporary ill health was, indeed, only temporary. He was concerned in particular about the macro-economic position and treated us to his analysis of the fiscal rules. He argued that they are right in principle and right conceptually, but was pessimistic about the Government meeting the golden rule. One or two other hon. Members suggested the same thing. This year’s Budget shows that all tax and spending commitments that we set out are fully funded and that there is a margin of £6 billion against the golden rule in the current cycle. The Budget shows that the golden rule will be met whether the cycle ended last year or ends this year or next year. The forecasts are based on cautious assumptions that are independently audited by the National Audit Office. They also build in a safety margin against unexpected events. Alongside Canada, the UK is now the only G7 country with net debt below 40 per cent. of GDP. Public finances in Britain are sound. There is no threat to the sustainability of the UK public finances in the long term. The hon. Member for North Antrim (Rev. Ian Paisley) was worried about clause 67. The Bill does no more than deal with the tax consequences of the proposed reorganisation of water services in Northern Ireland. The Water Service is due to be transferred to a new company in 2006. That company will remain within the ownership of the Department for Regional Development. The reorganisation is not due to take place until early in 2006, following the extensive consultation that he wants.