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It is going to help them because we are building starter homes for the first time for people to buy, we are extending the right to buy to housing association tenants so they can buy homes—[Interruption.] I notice Lady Nugee giving us the benefit of her wisdom, but many people in her constituency would love to buy a council house or a housing association house. We also have the Help to Buy scheme, which is helping many people get on the housing ladder, and shared ownership as well. All of those things will help. Since 2010, 101,000 homes have been built in London, including 67,000 affordable homes. We need to build many more and to make them accessible to people who work hard and do the right thing. That is whose side we are on.
It is going to help them because we are building starter homes for the first time for people to buy, we are extending the right to buy to housing association tenants so they can buy homes—[Interruption.] I notice Lady Nugee giving us the benefit of her wisdom, but many people in her constituency would love to buy a council house or a housing association house. We also have the Help to Buy scheme, which is helping many people get on the housing ladder, and shared ownership as well. All of those things will help. Since 2010, 101,000 homes have been built in London, including 67,000 affordable homes. We need to build many more and to make them accessible to people who work hard and do the right thing. That is whose side we are on.
Q13
.
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op):
The average property price in my borough of Hackney is £682,000, the median lower quartile rent for a two-bedroom flat for a month is £1,500, and overcrowding and demand for social housing are the highest I have seen in 20 years. Will the Prime Minister tell my constituents how on earth the Housing and Planning Bill is going to help them?
I will look very carefully at the hon. Gentleman’s suggestion because there is a problem whereby some clubs put up prices very rapidly every year, even though so much of the money for football comes through sponsorship, equipment and other sources. I will look carefully at what he says.
I will look very carefully at the hon. Gentleman’s suggestion because there is a problem whereby some clubs put up prices very rapidly every year, even though so much of the money for football comes through sponsorship, equipment and other sources. I will look carefully at what he says.
Q12
.
Clive Efford (Eltham) (Lab):
The Football Supporters Federation is considering calling on fans to hold mass walk-outs to get their voices heard about ticket prices. Will the Prime Minister act to give fans a place at the table in club boardrooms so that their voices can be heard when issues such as ticket prices are discussed?
My right hon. Friend makes an important point about this very big move in the oil prices. It of course has a highly beneficial effect for all our constituents, who are able to fill up their cars for less than £1 a litre, which is a very big increase in people’s disposable income and wholly welcome. I think that a low oil price basically is good for the British economy as an economy that is a substantial manufacturing and production economy, but of course there are other consequences and he named many of them. We need to look very carefully at how we can help our own oil and gas industry. Of course, as we are coming to the end of Prime Minister’s questions, I should say that he did mention one other calamity that the low oil price brings about, which is that it has led to a complete and utter collapse of the Scottish National party’s policy.
My right hon. Friend makes an important point about this very big move in the oil prices. It of course has a highly beneficial effect for all our constituents, who are able to fill up their cars for less than £1 a litre, which is a very big increase in people’s disposable income and wholly welcome. I think that a low oil price basically is good for the British economy as an economy that is a substantial manufacturing and production economy, but of course there are other consequences and he named many of them. We need to look very carefully at how we can help our own oil and gas industry. Of course, as we are coming to the end of Prime Minister’s questions, I should say that he did mention one other calamity that the low oil price brings about, which is that it has led to a complete and utter collapse of the Scottish National party’s policy.
Thirty dollar oil is great for petrol prices, but it is potentially catastrophic in other respects. If it goes on like this, we risk seeing regimes under pressure, dramatic corporate failures and financial default, enormous financial transfers out of our markets to pay for other countries’ deficits, a possible collapse in share prices and dividends for pensions, and a liquidity problem in our banking sector. May I invite the Prime Minister to initiate an urgent review across Whitehall to assess the effects of continuing low oil prices on our economy and beyond, and, in particular, to work out how we can avoid the destruction of our own oil industry in the North sea?
My hon. Friend is absolutely right to raise this, because low commodity prices are causing problems for farmers not only here in the UK but also right across the European Union. Yesterday, in the Council of Agriculture Ministers in Brussels, we led calls for urgent action, and there will be a €500 million package of measures to help farmers. Here in the UK, we have obviously taken steps to help, which include introducing the Groceries Code Adjudicator to make sure we get a fair deal with the supermarkets; steps to make sure we do more on public procurement, to make sure that, where possible, public authorities are buying British food, because it is of such high quality; and also, as the Chancellor said in the Budget, to make sure we look at the tax treatment of farmers to try to give them a better deal at this difficult time.
My hon. Friend is absolutely right to raise this, because low commodity prices are causing problems for farmers not only here in the UK but also right across the European Union. Yesterday, in the Council of Agriculture Ministers in Brussels, we led calls for urgent action, and there will be a €500 million package of measures to help farmers. Here in the UK, we have obviously taken steps to help, which include introducing the Groceries Code Adjudicator to make sure we get a fair deal with the supermarkets; steps to make sure we do more on public procurement, to make sure that, where possible, public authorities are buying British food, because it is of such high quality; and also, as the Chancellor said in the Budget, to make sure we look at the tax treatment of farmers to try to give them a better deal at this difficult time.
Q3
.
Rebecca Pow (Taunton Deane) (Con):
A slight change of tack. Over past weeks, I have met farmers across Taunton Deane facing severe difficulties owing to falling commodity prices in many sectors—lamb, beef, arable and dairy. These industries are the lifeblood of my constituency. Will the Prime Minister please give assurances that all efforts are being made to help these industries through this particularly tricky time? Farmers have campaigned on the streets recently to highlight their straits.
What we promised was to get energy companies to cut their bills by taking some of the charges off them, and that has been delivered. What the Labour party is promising is a price freeze even when prices are coming down. So even before the election Labour has started to inflict real damage on consumers in our country by helping to keep prices higher than they otherwise would be.
What we promised was to get energy companies to cut their bills by taking some of the charges off them, and that has been delivered. What the Labour party is promising is a price freeze even when prices are coming down. So even before the election Labour has started to inflict real damage on consumers in our country by helping to keep prices higher than they otherwise would be.
Let us try the Prime Minister on another one of his promises: to make energy companies put their customers on the lowest possible tariff. Too many of my constituents are still paying many hundreds of pounds more per year for energy. Will he again make that promise or is he content to wait until an incoming Labour Government in May fix this energy market?
First, we should welcome this fall in oil prices. We are beginning to see prices fall quite substantially at the pumps, but I agree with the hon. Gentleman that we want to see them go down further and faster. Some of this will depend on the buying strategies that the fuel companies had, but we will ensure that the competition authorities and the Government do everything they can to ensure that those fuel prices are passed on.
First, we should welcome this fall in oil prices. We are beginning to see prices fall quite substantially at the pumps, but I agree with the hon. Gentleman that we want to see them go down further and faster. Some of this will depend on the buying strategies that the fuel companies had, but we will ensure that the competition authorities and the Government do everything they can to ensure that those fuel prices are passed on.
Q10
.
Mr Gregory Campbell (East Londonderry) (DUP):
The Prime Minister will be aware that members of the public and small businesses across the UK have had to endure very high fuel bills in recent years when oil prices were averaging more than $100 a barrel. In recent weeks, that price has dropped steadily and now stands at less that half that level. However, fuel prices at the pump have not been reduced by anything like that amount. Last week, the Chancellor indicated that some action would be taken against the fuel companies. Will the Prime Minister outline what action that will be?
I absolutely agree with the hon. Gentleman on all three grounds. First, North sea oil is a vital industry for the UK and one of the biggest investors in our country, so we should do everything we can to help it. Secondly, and for that reason, we took steps in the autumn statement to improve the taxation regime for North sea oil. Thirdly, as we said during the referendum campaign, it makes the case that North sea oil is better off with the broad shoulders of the UK standing behind it, because we never know when the oil price is going to be more than $100 a barrel or, as it is today, around $50. It makes the case for the strength of the UK and the utterly misguided nature of the SNP, which thought it could base its entire budget on such a high oil price.
I absolutely agree with the hon. Gentleman on all three grounds. First, North sea oil is a vital industry for the UK and one of the biggest investors in our country, so we should do everything we can to help it. Secondly, and for that reason, we took steps in the autumn statement to improve the taxation regime for North sea oil. Thirdly, as we said during the referendum campaign, it makes the case that North sea oil is better off with the broad shoulders of the UK standing behind it, because we never know when the oil price is going to be more than $100 a barrel or, as it is today, around $50. It makes the case for the strength of the UK and the utterly misguided nature of the SNP, which thought it could base its entire budget on such a high oil price.
Q5
.
Anas Sarwar (Glasgow Central) (Lab):
The price of oil has now fallen to $50 a barrel. While this is good news for motorists, it is bad news for Scotland’s oil industry and thousands of workers. It comes just weeks after Nicola Sturgeon said we were on the verge of a second oil boom and after the independence White Paper said the price would be $113 a barrel. This is a serious issue—jobs depend on it—so will the Prime Minister agree to meet my right hon. Friend the Member for East Renfrewshire (Mr Murphy), a cross-party delegation, industry leaders and workers to see what support can be provided?
The levy control framework has been fixed, and it sets the overall amount of investment that can go into renewable energy schemes, many of
which are providing jobs for constituencies up and down the country—often particularly those on the east coast of our country, not least in Hull, where an enormous amount of investment is going in. I welcome that investment, and I am not sure what the hon. Gentleman’s view is.
The levy control framework has been fixed, and it sets the overall amount of investment that can go into renewable energy schemes, many of
which are providing jobs for constituencies up and down the country—often particularly those on the east coast of our country, not least in Hull, where an enormous amount of investment is going in. I welcome that investment, and I am not sure what the hon. Gentleman’s view is.
Q10
.
Douglas Carswell (Clacton) (UKIP):
The levy control framework—the total cost added to energy bills and taxation by green targets—will rise from £2.3 billion in 2012 to £9.8 billion in 2020, at a time when many households are struggling to heat their homes. Does my hon. Friend think that is fair?
The right hon. Gentleman makes important points. On off-grid heating oil and the costs, more needs to be done to put pressure on companies not just in Northern Ireland but across the UK. On the issue of corporation tax, I maintain the commitments that I have made before about what we will be saying and when we will be saying it, but as we address this issue we are also going to have to look carefully at the Northern Ireland budget, and to ensure that the budget is working and that the Government of Northern Ireland are working, because that is an important part of the overall picture.
The right hon. Gentleman makes important points. On off-grid heating oil and the costs, more needs to be done to put pressure on companies not just in Northern Ireland but across the UK. On the issue of corporation tax, I maintain the commitments that I have made before about what we will be saying and when we will be saying it, but as we address this issue we are also going to have to look carefully at the Northern Ireland budget, and to ensure that the budget is working and that the Government of Northern Ireland are working, because that is an important part of the overall picture.
Given the Prime Minister’s observation that red lights are flashing on the dashboard of the world’s economy, does he agree that, in relation to Northern Ireland’s economy, he could take two positive measures very soon: first, to devolve corporation tax powers to the Northern Ireland Assembly; and secondly, to put pressure on energy companies to reduce the price of home heating oil as well as petrol and diesel because of the very high dependence in Northern Ireland on that type of energy? Will he take action on those two fronts immediately?
My hon. Friend raises an important point. There are many people who are off mains gas, including in my constituency. I think that there are things we can do, not least encouraging the power of group purchasing by encouraging communities to come together to buy oil and gas so that they can drive down prices. I am sure that he will be looking at the options available in his constituency.
My hon. Friend raises an important point. There are many people who are off mains gas, including in my constituency. I think that there are things we can do, not least encouraging the power of group purchasing by encouraging communities to come together to buy oil and gas so that they can drive down prices. I am sure that he will be looking at the options available in his constituency.
Q10
.
Roger Williams (Brecon and Radnorshire) (LD):
Although I welcome the Government’s intervention on fuel bills, many rural people do not benefit from mains gas and have to depend on more expensive fuels. Will the Government investigate how they can benefit off-grid customers, who often live in fuel poverty?
It is hugely welcome in our country that energy companies are cutting and freezing their bills. As ever with the right hon. Gentleman, he has failed to read the small print. This is what Scottish and Southern Energy says about why it has been able to cut bills in that way. It says today that “the decisions taken” by the Government
“to reduce the…costs of the ECO were a principal factor in SSE being able to make this price commitment”.
That is what is happening under this Government. What a contrast with the doubling of the gas bills and the 50% increase in electricity bills when Labour was in power.
It is hugely welcome in our country that energy companies are cutting and freezing their bills. As ever with the right hon. Gentleman, he has failed to read the small print. This is what Scottish and Southern Energy says about why it has been able to cut bills in that way. It says today that “the decisions taken” by the Government
“to reduce the…costs of the ECO were a principal factor in SSE being able to make this price commitment”.
That is what is happening under this Government. What a contrast with the doubling of the gas bills and the 50% increase in electricity bills when Labour was in power.
This morning, we learned that the energy company, SSE, will be freezing its energy prices for 20 months. Would we be right to assume that the Prime Minister believes that the price freeze is unworkable, impossible to implement and probably a communist plot?
What we have done is reduce the costs of energy charges so that companies are able to cut their bills. Let me give the right hon. Gentleman the
list of what has happened since I made the announcement about rolling back the costs of green charges—[Interruption.]
What we have done is reduce the costs of energy charges so that companies are able to cut their bills. Let me give the right hon. Gentleman the
list of what has happened since I made the announcement about rolling back the costs of green charges—[Interruption.]
So, over the past six months, we have obviously misunderstood the Prime Minister. He is the champion of the price freeze—that is what he wants us to understand. Week after week, he denounced Labour’s call for an energy price freeze to help families and business, but now—apparently—he supports the price freeze. Can he explain why a price freeze was wrong six months ago but the right thing to do today?
You are right, Mr Speaker. Opposition Members shout in support of the Leader of the Opposition in the Chamber and brief against him outside. That is what happens.
This is what has happened since I made that announcement. For dual-fuel users, British Gas has cut £50 off bills; Scottish Power £54 off bills; E.ON £50 off bills; EDF £65 off bills; and npower, Scottish Power and EDF have announced that prices will not go up further in 2014. May I therefore thank the right hon. Gentleman for the opportunity to demonstrate how that part of our long-term economic plan is as successful as all the other parts?
You are right, Mr Speaker. Opposition Members shout in support of the Leader of the Opposition in the Chamber and brief against him outside. That is what happens.
This is what has happened since I made that announcement. For dual-fuel users, British Gas has cut £50 off bills; Scottish Power £54 off bills; E.ON £50 off bills; EDF £65 off bills; and npower, Scottish Power and EDF have announced that prices will not go up further in 2014. May I therefore thank the right hon. Gentleman for the opportunity to demonstrate how that part of our long-term economic plan is as successful as all the other parts?
So, over the past six months, we have obviously misunderstood the Prime Minister. He is the champion of the price freeze—that is what he wants us to understand. Week after week, he denounced Labour’s call for an energy price freeze to help families and business, but now—apparently—he supports the price freeze. Can he explain why a price freeze was wrong six months ago but the right thing to do today?
It is our policy that bills should be cut, and bills are being cut under this Government. That is what is happening. When we come to the small print, let us have a look at what Scottish and Southern said about the Labour policy. [Hon. Members: “Weak.”] I will tell hon. Members what is weak: weak is not having an economic policy; weak is not responding to the Budget; weak is having no long-term plan for Britain—that is what is weak. This is what Scottish and Southern says about Labour’s plans. It is worth listening to. It says that Labour policy
“does not appear to include a clear commitment or a long-term solution to reduce the costs of supplying electricity and gas…An externally-imposed 20-month price freeze would not reduce the costs of supplying energy.”
That is what Scottish and Southern says, and that is why, I assume, a Labour business supporter called John Mills said about Labour’s policy yesterday:
“I don’t think the Labour party would do that if it were in power”.
If Labour cannot convince its one business supporter, how on earth can it convince the country?
It is our policy that bills should be cut, and bills are being cut under this Government. That is what is happening. When we come to the small print, let us have a look at what Scottish and Southern said about the Labour policy. [Hon. Members: “Weak.”] I will tell hon. Members what is weak: weak is not having an economic policy; weak is not responding to the Budget; weak is having no long-term plan for Britain—that is what is weak. This is what Scottish and Southern says about Labour’s plans. It is worth listening to. It says that Labour policy
“does not appear to include a clear commitment or a long-term solution to reduce the costs of supplying electricity and gas…An externally-imposed 20-month price freeze would not reduce the costs of supplying energy.”
That is what Scottish and Southern says, and that is why, I assume, a Labour business supporter called John Mills said about Labour’s policy yesterday:
“I don’t think the Labour party would do that if it were in power”.
If Labour cannot convince its one business supporter, how on earth can it convince the country?
Once again, the Prime Minister shows how totally out of touch he is. The Office for Budget Responsibility itself says that energy prices are rising by more than double the rate of inflation. That is the reality. I am very interested in his position now on price freezes, because this morning the Energy Secretary said—[Hon. Members: “Weak.”] I will tell Government Members what is weak: not standing up to the energy companies. That is what they are not doing. The Energy Secretary, who I see over there, said this morning that he was calling on other suppliers to do the same and freeze their bills. Is it now the Prime Minister’s policy that we should freeze bills?
The most important thing we can do is to help the energy companies reduce bills by rolling back the costs of these green levies and charges. Only since we have done that have we seen energy company after energy company reduce the costs of people’s bills. We also want to see a more competitive market and to see more players in this market. These are all things we are having to correct from the disastrous stewardship of the energy Department when the right hon. Member for Doncaster North (Edward Miliband) was in charge.
The most important thing we can do is to help the energy companies reduce bills by rolling back the costs of these green levies and charges. Only since we have done that have we seen energy company after energy company reduce the costs of people’s bills. We also want to see a more competitive market and to see more players in this market. These are all things we are having to correct from the disastrous stewardship of the energy Department when the right hon. Member for Doncaster North (Edward Miliband) was in charge.
Q9
.
Mrs Mary Glindon (North Tyneside) (Lab):
Despite what the Government have said about cutting energy costs, 71% of the people in North Tyneside I surveyed are still worried about their bills and want a full energy bill price freeze now. Will the Prime Minister listen to the people of North Tyneside and meet that demand?
The Energy Secretary was right to write to Ofgem, because it is part of the competition review we have announced. It is on this side of the House that we have delivered the £50 off bills by rolling back the cost of the green levies. That is the right approach, rather than promising a freeze that only means prices will go up.
The Energy Secretary was right to write to Ofgem, because it is part of the competition review we have announced. It is on this side of the House that we have delivered the £50 off bills by rolling back the cost of the green levies. That is the right approach, rather than promising a freeze that only means prices will go up.
Q9
.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op):
Does the Prime agree that, after months of letting energy companies get away with increasing their profits on the back of hard-working people across the country, the Energy Secretary’s letter to the regulator this week was simply too little, too late?
I am certainly happy to look into this issue. We have taken steps to compel the energy companies to put people on the lowest tariffs, and we want to ensure that everyone can take advantage of that. As my hon. Friend said, we have also cut energy bills by £50 by rolling back the cost of some of the green measures, and we should continue to make this market more competitive, to give more choice to consumers and to encourage switching, which happened a huge amount towards the end of last year and has saved many people many hundreds of pounds.
I am certainly happy to look into this issue. We have taken steps to compel the energy companies to put people on the lowest tariffs, and we want to ensure that everyone can take advantage of that. As my hon. Friend said, we have also cut energy bills by £50 by rolling back the cost of some of the green measures, and we should continue to make this market more competitive, to give more choice to consumers and to encourage switching, which happened a huge amount towards the end of last year and has saved many people many hundreds of pounds.
Some 45% of people do not pay their utility bills by direct debit, and 1 million of them do not have bank accounts, yet energy companies charge, on average, £115 extra for people who do not pay by direct debit, hitting pensioners and the poorest the most. Will my right hon. Friend look into this, given that the Government are doing everything possible by cutting energy bills by £50?
First of all, let us deal with the predictions. The right hon. Gentleman said this—
First of all, let us deal with the predictions. The right hon. Gentleman said this—
Let us talk about the Prime Minister’s predictions. He said that he would balance the books in five years; he has failed. He said that he would secure Britain’s credit rating; he has failed. The worst prediction of all is that he said he would be good at being Prime Minister, and he has certainly failed at that. He has got no answer—[Interruption.]
They have a programme which will clearly lead to the disappearance of 1 million jobs. Now we have 1.6 million more private sector jobs and 1.2 million more people in work, it is time that the right hon. Gentleman apologised for his prediction talking the economy down. He asks about the cost of living; let us compare our records on the cost of living. They doubled council tax; we have frozen it. They put up petrol tax times 12 times; we have frozen it. They put up the basic state pension by 75p; we have put it up by £15. [Interruption.] Ah, we have a new hand gesture from the shadow Chancellor! I would have thought that after today’s briefing in the papers the hand gesture for the shadow Chancellor should be bye-bye. You don’t need it to be Christmas to know when you are sitting next to a turkey. [Interruption.]
They have a programme which will clearly lead to the disappearance of 1 million jobs. Now we have 1.6 million more private sector jobs and 1.2 million more people in work, it is time that the right hon. Gentleman apologised for his prediction talking the economy down. He asks about the cost of living; let us compare our records on the cost of living. They doubled council tax; we have frozen it. They put up petrol tax times 12 times; we have frozen it. They put up the basic state pension by 75p; we have put it up by £15. [Interruption.] Ah, we have a new hand gesture from the shadow Chancellor! I would have thought that after today’s briefing in the papers the hand gesture for the shadow Chancellor should be bye-bye. You don’t need it to be Christmas to know when you are sitting next to a turkey. [Interruption.]
Let us talk about the Prime Minister’s predictions. He said that he would balance the books in five years; he has failed. He said that he would secure Britain’s credit rating; he has failed. The worst prediction of all is that he said he would be good at being Prime Minister, and he has certainly failed at that. He has got no answer—[Interruption.]
What is intellectual incoherence is not to address the fact that there were 36,500 winter deaths when the right hon. Gentleman was standing here as energy Secretary. That number was lower last year. What is intellectually incoherent is to promise a price freeze for 20 months’ time when we do not control the global price of gas—that is completely incoherent and a total con. When we are on the collapse of intellectual positions, more borrowing, more spending and more taxing are exactly the things that got us into this mess in the first place, and he remains committed to each and every one.
What is intellectual incoherence is not to address the fact that there were 36,500 winter deaths when the right hon. Gentleman was standing here as energy Secretary. That number was lower last year. What is intellectually incoherent is to promise a price freeze for 20 months’ time when we do not control the global price of gas—that is completely incoherent and a total con. When we are on the collapse of intellectual positions, more borrowing, more spending and more taxing are exactly the things that got us into this mess in the first place, and he remains committed to each and every one.
I asked the Prime Minister a very specific question: how are things going to be better this winter than last? The reality is that prices will be higher this winter than last. For the average household, the British Gas bill went up £123 this week. It was also revealed that the profits of the energy companies were up 75% in the last year alone. Why, under his Government, is it acceptable for the British people to pay exorbitant prices to fund exorbitant profits?