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Armed Forces Covenant

I am grateful for the welcome—the basic welcome—that the right hon. Gentleman has given. Yes, it is perfectly true that the Opposition raised some of the issues in a recent debate—except that they would not define what they meant, nor would they tell us what rights they might create or how they would pay for them, yet they expected us to take them seriously. The reason why we have taken time to produce these reports and responses to detailed work is that we want to get the policies right and do the right thing for our armed forces, their families and their personnel. The right hon. Gentleman asked about the doubling of council tax relief. As I said, this will be 50% for personnel on eligible operations overseas. It will go to all those who currently get the 25% discount, which is a wider definition than that used for the operational allowance, but not to all those serving overseas—for example, in Germany. He also asked about the launching of the veterans card. It will be used to access commercial discounts or privileges, and we will consider how to expand it to include service families. It is linked to the relaunch of the defence discount scheme next year. It is not an ID card, for the reasons that we consistently gave in Committee and in the House. On indexation, when the change was made from RPI to CPI, none of us in the coalition Government wanted to see anyone in the public sector disadvantaged—but may I remind the Labour party that it left us with a £158 billion deficit, which has to be addressed? We will spend more on debt interest next year than on defence, the Foreign Office and aid put together. That is the scale of the problem, and it is the deficit deniers who are now on the Opposition Benches who put this country at risk. They had 13 years in office, yet they now have the audacity, after 12 months, to tell us that we are doing things at the eleventh hour. No credibility!