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Spring European Council

I will deal with each point in turn, but is the central point not that, in the face of a global recession, unemployment and a loss of output, alone in Europe and alone in the rest of the world, isolated even from the Conservative party in Europe, the Conservatives' only response to the recession is to cut public services and public spending, except for the £200,000 that 3,000 people will get in inheritance tax? Our priorities are to raise the pension for everyone, which we are doing; to raise child benefit for everyone, which we have done; and to ensure a VAT cut for everyone. The Conservative party's policy is a £2 billion tax cut for the smallest number of people in Britain—the 3,000 people who will benefit from an inheritance tax cut. Is it not time for the Conservatives to face up to the fact that their policy is a 6p a week cut in the licence fee for the many and a £200,000 cut in inheritance tax for the few? Usually in times of difficulty, the few who have money help the many; only the Conservative party says that, in times of difficulty, the many should come to the aid of the few. [Interruption.] What am I on about? I am on about the Conservative policy, which Conservative Members say is a priority. At a time of crisis, they say that there is nothing for pensions, nothing for child benefit, nothing for public services except cuts, but tell us today that they are going ahead with an inheritance tax cut, which will help 3,000 people and give them £200,000 each. At least the shadow shadow Chancellor spotted that that was a difficulty, but he is not here because he is so out of synch with the Conservative party. He disagrees on VAT, the married couple's allowance, Europe, and now the inheritance tax cut. The Conservative party is out of touch with the rest of the country. [Interruption.] They will have to face up to that one day—their priority is an inheritance tax cut for the few, whereas ours is to help the many. As to trade—[Hon. Members: "Hooray."] I know that the Conservatives are grateful that we have moved off what I will be coming back to in a minute. As to trade, we are working with the developing countries to see whether we can get a trade deal, but I have to tell the right hon. Gentleman that the problem is not Britain or Europe. The problem on the trade deal—as he would see, if the Conservatives were serious about it and if they wanted to face up to it—is that we have to get an agreement between America and India on very difficult and sensitive negotiations, which we are trying to move forward. As for the colleges of supervisors, which the right hon. Gentleman mentioned, I have to tell him that instead of none having been established, as he said, 25 colleges of supervisors have been established to cover the financial institutions right across the world. As far as delivery of policies is concerned, the right hon. Gentleman might want to notice that 90,000 companies are already benefiting from the schemes that we have put in place. He might want to know also that large numbers of people are benefiting from the greater support that we are giving in income support to those who are unemployed and who need help with their mortgages. None of those policies is supported by the Conservative party. As for the right hon. Gentleman's quotations of Chancellor Merkel, President Sarkozy and other European leaders, is it not remarkable that he is trying to quote them in evidence the week after he walked away from the European People's party and linked up with the Czech forum, which says that there is no problem with climate change, and the Polish party of law and order—[Interruption.] I have to say to the Conservatives that they are isolated from the German Christian Democrats, that they are isolated from the French Conservative party of President Sarkozy and that they are now isolated from the party of Mr. Berlusconi in Italy. The Conservatives are out of touch with the European mainstream—so much so that the President of the Commission has criticised them, as has the President of the Parliament, and the chambers of commerce have said that it is a matter of regret that they are moving to the fringes in this country. As for the delivery of policies, let me be absolutely clear that in every area in which we are working, we are trying to move forward, but that requires money. The only party that is refusing to support a fiscal stimulus is the Conservative party. It is the Conservatives who are out of step with Europe; it is they who are out of touch with public opinion; and it is they who are out of their depth when it comes to dealing with the economy.