§ Mr. Gryllsasked the Prime Minister, is she will list the achievements of Her Majesty's Government since May 1983.
§ The Prime MinisterSince the 1983 election, the inflation rate has remained low at around 5 per cent. Gross domestic product has continued to grow steadily, with the United Kingdom now in its fifth successive year of growth, and GDP at an all-time high. In 1985, output in the United Kingdom is expected to have grown faster than all other EC countries and the United States. Investment reached a record level in 1984 and is expected to have risen by a further 4 per cent. in 1985. The balance of payments current account has continued in surplus since 1983 and has now been in surplus for six successive years. Manufacturing productivity has risen at an annual rate of 6 per cent. —higher than France or Germany—and company profitability is at its highest for two decades. Employment is rising, with around 600,000 more people in work since June 1983.
The Government have continued to maintain sound public finances. Public expenditure has been falling as a percentage of GDP since 1982–83 and is planned to fall further over the next three years. The public sector borrowing requirement in 1985–86 is forecast to account for the smallest proportion of GDP for 14 years.
The Government have pursued a substantial programme of tax reform. Business taxation has been radically restructured: by April 1986, the United Kingdom will have the lowest rate of corporation tax of any industrialised country. For income tax payers, thresholds have been raised in real terms. Further proposals for reform will be set out in the forthcoming Green Paper on personal taxation. Three taxes—the national insurance surcharge, development land tax and the investment income surcharge—have been abolished completely.
The large programme of privatisation has continued. There have been nine successful share sales since June 1983. The privatisation of British Telecom in 1984 was the world's largest ever flotation and led to a massive increase in the number of people holding shares. Several other smaller public enterprises have also been transferred to the private sector. Preparations are continuing for the sale of British Airways, the royal ordnance factories, the National Bus Company and Rolls Royce, Legislation to transfer the British Gas Corporation and the British Airports Authority to the private sector is now before Parliament and a White Paper has been published with proposals for privatisation of the water authorities in England and Wales.
Further measures have been introduced to improve the operation of markets. Incentives have been increased by 399W the tax changes and by the restructuring of national insurance contributions announced in the 1985 Budget. Changes in employment legislation and measures to encourage labour mobility have improved the operation of the labour market. Regulations applying to a wide field of industry and finance have been removed entirely; the small firms sector has been helped by special schemes and greater sums have been spent on training. The Government have also sought to introduce more competition in the professions.
The Government have launched a more cost-effective and job-related regional industrial policy; have backed the Alvey programme for research into advanced information technology; have set up a National Space Centre and have allocated substantial funds for the promotion of new technology.
Productivity per person in agriculture has continued to improve and has helped this sector to provide food to consumers at prices which have risen more slowly than the general price level. The volume of agricultural food and drink exports has shown a further rise of 6 per cent. in the first 18 months after the end of 1983.
Progress in tackling costly surpluses under the common agricultural policy has been made with measures in the European Community designed to control CAP spending and, specifically in the milk and wine sectors, to curb over-production. Agreements have been reached to reduce CAP support prices in real terms. In fisheries we have resolved most of our outstanding problems with Norway. Improvements have been made in the conservation of stocks and the fishing of herring in the North sea has been resumed.
The Government have developed new policies designed to achieve a better integration of environmental and agricultural objectives by encouraging farmers to maintain and enhance the landscape and nature conservation interest in their farms. Improvements in the welfare standards of livestock husbandry have been promoted, notably through the contribution of the Farm Animal Welfare Council. The Government have maintained the United Kingdom's good record of freedom from major animal disease and this remains an important priority. We have recently issued for consultation proposals to implement the COMA report, which will improve further the labelling of food for consumers.
In transport, London Transport has been transferred from the GLC to London Regional Transport, and targets set for better value for money. The revenue subsidy has been reduced by about 40 per cent. already, with no significant real increase in fares or reduction in services. Similarly, British Rail has been given targets for the reduction of subsidy and the improvement of customer service, and major new investments approved.
New initiatives have been announced to control drug misuse, and the Government supported the Video Recording Act to control video nasties. Legislation has been put through for data protection; to provide for the fourth television channel and for the Welsh fourth channel to provide a framework for the development of direct broadcasting by satellite and cable television; to set out a new framework for police powers and for handling complaints against the police, in the Police and Criminal Evidence Act; and to enhance both the powers available to deal with terrorism and the safeguards for the citizen under the Prevention of Terrorism Act, and to control the possession and sale of alcohol in connection with football 400W matches. An independent Crown prosecution service for England and Wales is being established this year. Measures have been taken to ensure that the terms of imprisonment served by violent offenders fully reflect society's abhorrence of their crimes.
In education, the Government have launched a major initiative to raise standards in schools including the publication of broad curricular objectives for the five-to-16 age group, the reform of the 16-plus examination system, and the decision to introduce records of achievement for school leavers of all abilities. The technical and vocational education initiative has been introduced to boost practical elements in the 14-to-18 curriculum. The Council for the Accreditation of Teacher Education has been established to evaluate teacher training courses and a discussion paper on school teacher numbers and deployment in the longer term has been published. In higher education, record numbers of students have been admitted, and the Government endorsed plans which provide for a continuation of the significant shift towards science and engineering and other subjects in the public sector of higher education.
The Government have continued to be active in strengthening safeguards against fraud and in ensuring that the probity of our financial institutions is maintained without undermining their competitiveness. The Insolvency Act 1985 increased the scope for disqualifying directors of companies which have gone into liquidation or receivership, and introduced a new liability of directors for wrongful trading. The Financial Services Bill broadens the general regulatory framework within which people in financil institutions have to operate. The recommendations of the Roskill committee on the investigation, prosecution and trial of fraud cases are now before us, and we are moving towards early legislation based on them.
In the social security field, the Government have maintained the protection of social security benefits against inflation. The retirement pension is at a record real level. Legislation currently before the House builds on the Social Security Act 1985, which gave new pension rights to early leavers from pension schemes. We are providing for a major extension in occupational pensions provision and for the first time we are giving everybody a right to a personal pension of their own. In addition, the Government have completed a fundamental and far-reaching review of other social security provisions.
In the Health Service, we have continued to develop services for patients and waiting lists have fallen. NHS spending has been maintained at record levels, and the drive for better management continues with the appointment of general managers throughout the Health Service.
Over 1 million young people have entered the youth training scheme since it was launched in 1983. We are helping to train 200,000 adults this year and 250,000 next year. The community programme and enterprise allowance scheme have been expanded.
The Trade Union Act has been extending the rights of members of trades unions to influence the affairs of their unions.
In energy, Government policies on taxation and licensing have made 1984 a record year for oil and gas exploration and development in the North sea with 1985 a record year for approval of new developments. The North sea contribution to United Kingdom employment has been further expanded in both years. In 1985, flaring 401W was also at a record low figure. With Government support, the electricity and coal industries enabled the electricity system to withstand a year-long coal strike without power cuts and with only limited damage to the rest of British industry.
In local government, the Rates Act is protecting ratepayers from huge increases in rates in the highest spending councils. Under the Local Government Act 1985, the GLC and the metropolitan county councils will be abolished on 1 April 1986. Proposals for reform of local government finance and taxation, including the abolition of domestic rates, have recently been set out in the Green Paper "Paying for Local. Government". A committee has been established to inquire into the conduct of local authority business; and legislation has been introduced to regulate local authority publicity activities. A consultation document on increasing competitive tendering in local government has been published.
On housing, the right to buy their homes has been extended to more council tenants, discount terms have been improved for many, assistance has been provided to the owners of defective houses previously in the public sector, and an urban housing renewl unit has been set up to help local authorities to tackle the problems of their rundown estates. We are consulting on proposals to increase competitive tendering by councils.
In the environment, we have taken the initiative in Europe in bringing to an end the addition of lead to petrol and paint, and we are steadily removing it from those water supplies where it is stilt a problem. We have taken steps to reduce the pollution of our rivers, estuaries and beaches.
The derelict land programme has been maintained. The land register system has continued to bring about the sale and development of unused publicly owned land. A series of national garden festivals has been announced. The urban development corporations have made further progress in London docklands and Merseyside. Further enterprise zones have been designated.
In defence, the capability of our armed forces has continued to be strengthened. The Government have played their full part in implementing NATO's 1979 decision to modernise intermediate range nuclear weapons. Increased efficiency is being pursued by the continuing transfer of resources from the support areas to the frontline, and by introducing increased competition in defence contracts and promoting collaboration without international partners. A major reorganisation of the headquarters structure of the Ministry of Defence has been introduced.
The Government concluded in 1985 the Anglo-Irish Agreement, which seeks to develop further our unique relationship with the Republic of Ireland; to enhance cooperation, including over security matters, between the two countries; and also to assist in achieving lasting peace and stability within Northern Ireland. Following the approval of the agreement by the British and Irish Parliaments, the Anglo-Irish Intergovernmental Conference was established and is now pursuing its work in fields assigned to it under the agreement.
In foreign policy, the Government have maintained Britain's strong commitment to the NATO Alliance and played a leading role in the revival of the Western European Union. British Ministers and representatives have been active in building up an East-West dialogue with high-level visits in both directions and in promoting 402W the arms control process, notably in the negotiations on chemical weapons, on non-proliferation of nuclear weapons and on conventional disarmament and force reductions in Europe. Within the European Community, the Government achieved a refund for 1983 of £430 million and a VAT abatement for 1984 of £600 million; negotiated a lasting settlement on budgetary imbalances, under which our future net contribution will be about half of what it might otherwise have been; and played a prominent part in the successful conclusion of the third Lomé convention and the enlargement negotiations. The Government have also been instrumental in bringing about an agreement on amendments to the EC treaties which should improve Community decision-taking while safeguarding essential United Kingdom interests. The Sino-British Joint Declaration on the future of Hong Kong was ratified in May last year. Over Gibraltar an agreement was reached with Spain in February 1985, and the border is now open.
§ Lord James Douglas-Hamiltonasked the Prime Minister whether she will list the achievements of Her Majesty's Government from 1979 to date.
§ The Prime MinisterThe rate of inflation is almost half the level the Government inherited, with further falls in prospect. The United Kingdom is in its fifth successive year of growth with GDP at an all time high: and output is expected to have grown faster in 1985 than all other EC countries and the United States. Investment reached a record level in 1984 and is expected to have risen by a further 4 per cent. in 1985. The balance of payments current account has been in surplus for six successive years. Manufacturing productivity has risen at an average annual rate of 6 per cent. for the last five years—higher than France or Germany—and company profitability is at its highest for two decades. Employment is rising, with around 700,000 more people in work since March 1983.
The Government have restored sound public finances. Public expenditure has been falling as a percentage of GDP since 1982–83 and is planned to remain broadly stable at the 1984–85 level in real terms over the next three years. The public sector borrowing requirement in 1985–86 is forecast to account for the smallest proportion of GDP for 14 years.
The Government have pursued a substantial programme of tax reform. Business taxation has been radically restructured; by April 1986 the United Kingdom will have the lowest rate of corporation tax of any industrialised country. For income tax payers, the basic rate was reduced to 30 per cent. in 1979 and, since then, thresholds have been raised about 20 per cent. in real terms. Further proposals for reform will be set out in the forthcoming Green Paper on personal taxation. Three taxes—the national insurance surcharge development land tax and the investment income surcharge—have been abolished completely.
Since 1979, the Government have transferred 12 major companies and a number of other enterprises to the private sector. As a result of this policy and tax reliefs designed to encourage employee shareholding the number of individual shareowners in the United Kingdom has doubled. The privatisation programme continues to develop. By the end of this Parliament, 40 per cent. of the state-owned industrial sector we inherited in 1979 should be returned to private enterprise.
403WThe Government have introduced a large number of measures designed to improve the operations of markets. Pay, price and dividend controls have been abolished, together with controls on foreign exchange, bank lending and hire purchase and restrictions on industrial and office development. Incentives have been increased by the tax changes and by restructuring of national insurance contributions announced in the 1985 Budget. Changes in employment legislation and measures to encourage labour mobility have improved the operation of the labour market. Regulations applying to a wide field of industry and finance have been removed entirely; the small firms sector has been helped by special schemes and greater sums have been spent on training. The Government have also sought to introduce more competition in the professions.
Productivity per person in agriculture has improved by more than 40 per cent. since 1979 and has helped this sector to provide food to consumers at prices which have fallen in relation to the level of retail prices generally. In the same period, the volume of agricultural, food and drink exports has risen by 25 per cent., and the United Kingdom now produces 80 per cent. of all the temperate foodstuffs it needs.
The task of tackling costly surpluses under the common agricultural policy has been started with measures in the European Community designed to control CAP spending and, specifically in the wine and milk sectors, to curb overproduction. Agricultural support prices have been reduced in real terms. In fisheries we achieved an advantageous settlement of a revised common fisheries policy, and we have resolved most of our outstanding problems with Norway. Improvements have been made in the conservation of stocks and the fishing of herring in the North sea has been resumed.
In transport, coach services have been opened to competition, and legislation passed to deregulate local bus services. London Transport has been transferred from the GLC to London Regional Transport, and targets set for better value for money. Similarly, British Rail has been given targets for the reduction of subsidy and the improvement of customer service, and major new investments approved. Spending on major roads has increased by 30 per cent. and over 500 miles of motorways and major trunk roads have been completed.
The Government have ensured that adequate resources are devoted to combating crime. Total manpower—police officers and civilians—in the police service in Great Britain has increased by over 17,000 since 1979. Total expenditure on the police service in England and Wales has increased from £1.1 billion in 1978–79 to £2.8 billion in 1985–86—an increase of one third in real terms. There are nearly 3,000 more prison officers, and spending on prison building has gone up by nearly 400 per cent.
New initiatives have been announced to control drug misuse, and the Government supported the Video Recordings Act to control video nasties. An independent Crown prosecution service for England and Wales is being established this year. Measures have been taken to ensure that the terms of imprisonment served by violent offenders fully reflect society's abhorrence of their crimes.
The Government have been active to strengthen safeguards against fraud and to ensure that the probity of our financial institutions is maintained without undermining their competitiveness. The Companies Acts 1980 and 404W 1981 strengthened powers of investigation and the courts' powers to disqualify directors for misconduct; and made insider dealing a criminal offence. The Lloyd's Act 1982 has enabled substantial progress to be made in establishing a new regulatory system at Lloyd's. The Insolvency Act 1985 increased the scope for disqualifying directors of companies which have gone into liquidation or receivership, and introduced a new liability of directors for wrongful trading. The Financial Services Bill broadens the general regulatory framework within which people in financial institutions have to operate. The recommendations of the Roskill committee to review the investigation, prosecution and trial of fraud cases are now before us, and we are moving towards early legislation based upon them.
In education, the Government have launched a major initiative to raise standards in schools, including the publication of broad curricular objectives for the five-to-16 age group, the reform of the 16-plus examination system, and the decision to introduce records of achievement for school leavers of all abilities. The technical and vocational education initiative has been introduced to boost practical elements in the 14-to-18 curriculum. In higher education, record numbers of students have been admitted and the Government has endorsed plans which provide for a continuation of the significant shift towards science and engineering and other subjects in the public sector of higher education.
In social security, the Government have maintained the protection of social security benefits against inflation. The retirement pension is at a record real level. Legislation is currently before the House building on the 1985 Social Security Act, which gave new pension rights to early leavers from pension schemes. We are providing for a major extension in occupational pension provision and for the first time we are giving everybody a right to a personal pension of their own. In addition, the Government have completed a fundamental and far-reaching review of other social security provisions.
Spending on the Health Service is up by 21 per cent. in real terms. There are many thousands more doctors and nurses. Over 40 major new hospital schemes have been completed. Many more cases are being dealt with, and waiting lists are down by 91,000. The drive for better management continues with the appointment of general managers throughout the Health Service.
Over 1 million young people have entered the youth training scheme since it was launched in 1983. We are helping to train 200,000 adults this year and 250,000 next. The community programme and enterprise allowance scheme have been expanded. Legislation has been passed extending the rights of members of trade unions to influence the affairs of their unions and to restore the balance in industrial relations between managements and unions.
In energy, Government policies on taxation and licensing have made 1984 a record year for oil and gas exploration and development in the North sea, with 1985 a record year for approval of new developments. The North sea contribution to United Kingdom employment has been further expanded in both years. With Government support, the electricity and coal industries enabled the electricity system to withstand a year-long coal strike without power cuts and with only limited damage to the rest of British industry.
In local government, the Rates Act is protecting ratepayers from huge increases in rates in the highest 405W spending councils. Under the Local Government Act 1985, the GLC and the metropolitan county councils will be abolished on 1 April 1986. Proposals for reform of local government finance and taxation, including the abolition of domestic rates, have recently been set out in the Green Paper "Paying for Local Government". A committee has been established to inquire into the conduct of local authority business; and legislation has been introduced to regulate local authority publicity activities. A consultation document on increasing competitive tendering in local government has been published.
In housing, the Government introduced the first statutory charter of rights for public sector tenants, including the right to buy their homes. The number of home owners has increased by 2.25 million in Great Britain and owner-occupation is now 62 per cent.; the proportion of young people owning their own homes is the highest in Europe. Home improvement grants have been made more widely available than ever before. Assistance has been given to the owners of defective houses previously in the public sector and an urban housing renewal unit has been set up to help authorities tackle the problems of their rundown estates. Measures have been introduced to encourage lettings in the private sector.
In the environment, we have taken the initiative in Europe in bringing to an end the addition of lead to petrol and paint, and we are steadily removing it from those water supplies where it is still a problem. We have taken steps to reduce the pollution of our rivers, estuaries and beaches. The Wildlife and Countryside Act 1981 was the first piece of major countryside legislation for more than a decade, and represents a significant step forward in the protection of landscape, flora and fauna.
The derelict land programme has been greatly increased. Urban development corporations have been established in London docklands and on Merseyside to bring about the redevelopment of these areas. Twenty-five enterprise zones have been designated. All these measures are having a marked impact on older urban areas in need of regeneration.
In defence, the capability of our armed forces has continued to be stengthened. The Government has played its full part in implementing NATO's 1979 decision to modernise intermediate range nuclear weapons. Increased efficiency is being pursued by the continuing transfer of resources from the support areas to the frontline, and by introducing increased competition in defence contracts and promoting collaboration with our international partners. Finally, a major reorganisation of the headquarters structure of the Ministry of Defence has been introduced.
The Government concluded in 1985 the Anglo-Irish Agreement which seeks to develop further our unique relationship with the Republic of Ireland; to enhance cooperation, including over security matters, between the two countries; and also to assist in achieving lasting peace and stability within Northern Ireland. Following the approval of the agreement by the British and Irish Parliaments, the Anglo-Irish Intergovernmental Conference was established and is now pursuing its work in fields assigned to it under the agreement.
In foreign policy, the Government have maintained Britain's strong commitment to the NATO Alliance and played a leading role in the revival of the Western European Union. British Ministers and representatives have been active in building up an East-West dialogue, with high-level visits in both directions and in promoting 406W the arms control process, notably in the negotiations on chemical weapons, on non-proliferation of nuclear weapons and on conventional disarmament and force reductions in Europe. Within the European Community, the Government were able to negotiate over £2 billion refund of contributions and a VAT abatement for 1984 of £600 million; negotiated a lasting settlement on budgetary imbalances, under which our future net contribution will be about half what it might otherwise have been; and played a prominent part in the successful conclusion of the third Lomé convention and the enlargement negotiations.
The Government have also been instrumental in bringing about an agreement on amendments to the EC treaties, which should improve Community decision-taking while safeguarding essential United Kingdom interests. Rhodesia was brought to legal independence as the Republic of Zimbabwe by the holding of the Lancaster house conference in 1979 and the supervision of the elections in 1980. The Government resoluely upheld and continue to defend the right of the Falkland Islanders to live in peace and security under a Government of their own choosing. The Sino-British Joint Declaration on the future of Hong Kong was ratified in May last year. Over Gibraltar, an agreement was reached with Spain in February 1985, and the border is now open.