Latest update

Good morning. Please see below the political top line:

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It is a tribute to the resilience of the private sector in difficult economic times that businesses have continued to create jobs and we now have over one million more people in private sector employment since this Government took office.

Today’s fall in unemployment is further welcome news but we know there are still challenges ahead. We will continue to work hard to create the conditions for businesses to grow and provide people with the support they need to get back into work.

Other lines

Hillsborough

The Prime Minister will make a statement to the House of Commons today on the report of the Hillsborough Independent Panel.

Threatened strikes

It is disappointing that the Labour Party’s three biggest union paymasters are insisting on pushing for irresponsible and futile strike action which benefits no one.

As we have said time and again, pension talks will not be reopened and nothing further will be achieved through strike action. In March we set out our final proposed agreements on pension reform following more than a year of intensive discussions with trades unions. Our reforms ensure that public sector pensions will remain among the very best available and that they can be sustained for the future.

As always in the event of any industrial action rigorous contingency planning would be in place across all sectors to minimise the impact of any strike and to ensure that key public services remain open.

Small business bank

The weakness in our banking system is one of the biggest problems we’ve got. We’ve just announced in the last month a big Funding for Lending scheme spending billions of pounds through the Bank of England to help reduce the cost of lending in the real economy, so that businesses can borrow more. But the Treasury is also actively considering and working on a small business bank sponsored by the Government that can bring together existing schemes, but also potentially have additional powers because small businesses have been the innocent victims of the credit crunch.

Governor of the Bank of England

Sir Mervyn King is serving his second and final term as Governor, and will retire on 30 June 2013.

The Chancellor of the Exchequer has decided that the appointment of his successor will be conducted through fair and open competition. For the first time in history, the post will be advertised and the advertisement will appear in the press later this week.

As with Mervyn King, we are seeking a Governor of intelligence, independence and integrity, and we intend to announce the successful candidate by the end of the year.

Banking union

Britain has consistently argued that a banking union – a single financial backstop – is an essential part of a stable single currency, and as the single currency’s central bank the ECB is the right organisation to take on the central supervisory role for euro area banks. The proposals today are based on that.

We’ve also said that a banking union for the euro area must also respect the integrity of the single market for the whole of the European Union, and we’ll ensure the agreement on it does that.

GCSE results

Ofqual is the independent exams regulator. Its job is to make sure that standards are maintained over time and that students receive the grades that they deserve. There has been a widespread debate over the last two decades about whether there has been grade inflation - that’s why we have strengthened Ofqual’s powers to make sure the system is robust and rigorous and to give the public real confidence in the results.

OECD education report

Labour’s answer to falling educational standards was to throw more and more money at the problem. This evidence demolishes that approach once and for all. It’s not how much you spend that counts, but what you spend it on. Academic rigour, world-class qualifications, strong discipline – that’s what drives up standards and it’s what this Government is delivering.

Private companies and policing

The private sector can help to support the delivery of police services better and at a lower cost. This does not mean policing is being privatised – core functions will continue to be delivered by sworn officers and no powers will be given to private contractors beyond the limited powers allowed by the last government. Police officers alone will make arrests and lead investigations, and police officers will continue to patrol the streets and respond to incidents. The police will remain a public service and decisions on business partnering will be taken by elected police and crime commissioners.

CCTV cameras in schools

We have already acted to make it unlawful for schools to use biometric data like fingerprints without parents’ permission. CCTV can be beneficial in some cases but this is a decision that head teachers should take.

Schools using CCTV are required by law to adhere to the Data Protection Act.

Attack on US consulate in Benghazi

We strongly condemn the attack on the US consulate in Benghazi yesterday. There is no justification for such an attack and the appalling death of an US official. Our thoughts and condolences are with his family and all his colleagues at the State Department.

We welcome President Magariaf’s condemnation of this incident. It is essential that the Libyan authorities take urgent action to improve security, particularly in Benghazi, and identify those responsible for such attacks. The UK stands ready to assist the Libyan authorities in any way we can and to support their efforts to continue the path towards a stable and secure Libya that fulfils the aspirations of the Libyan people.

Key Messages

Central message on what this Government is for

We are on the side of people who work hard and want to get on in life.

We want a country that rewards effort and where work pays – something for something, not something for nothing.

That’s why we’re:

• dealing with the debt so we keep mortgage rates and the cost of living as low as possible

• supporting the industries of the future so we create well-paid, proper jobs

• cutting taxes for working people

• capping welfare so it always pays to work not to sit at home; and

• reforming schools so all our children have the skills to compete.

Our plan to deal with the debt is working – but Labour’s solution is more debt

Our plan to rescue our economy is working – in the two years since we came to office, we’ve cleared a quarter of the deficit left by Labour.

Labour’s solution to the debt crisis is more spending, more borrowing and more debt – exactly how they got us into this mess in the first place.

They’re not living in the real world – you can’t borrow your way out of a debt crisis.

Labour left Britain in a mess and why we need to clear it up

Labour left us spending £120 million every day just paying the interest on the debt – and that bill is getting bigger.

The banks made a bad situation worse, but what really got Britain into this mess was years of Labour spending money we didn’t have.

It would have been much easier not to deal with the debt problem. But everyone knows that, as when someone runs up a massive credit card bill, the longer you put off dealing with debt, the worse it gets and the more it costs.

Delay would just pass this generation’s debt onto our children, stall economic recovery and cost even more.

Labour created a something for nothing culture

Labour’s something for nothing culture was about more than just the Government borrowing money that we did not have.

They failed to tackle welfare so that it was easier to sit at home rather than going out to work, but then, unbelievably, they voted against our plans to cap benefits.

They let immigration get out of control, but then, unbelievably, they opposed our plans to cap it.

They failed to improve our education system, but now oppose our plans to create more good schools for our children.

Five measures the Government is taking to get our economy moving

The Government is:

1.      Kick-starting bank lending through a Funding for Lending scheme to encourage banks to make mortgages and loans cheaper and more easily available, providing welcome support to businesses that want to expand and families aspiring to own their own home.

2.      Creating the most competitive business tax system in the developed world by cutting corporation tax to the lowest rate in the G7; introducing a Patent Box to encourage firms to innovate in Britain; and simplifying our tax system. 

3.      Cutting red tape by scrapping regulations costing businesses over £350 million per year; and radically reforming the planning system by introducing a new default presumption in favour of sustainable development and streamlining over 1,000 pages of planning policy to just 52 pages. We are also getting Britain building by releasing enough public sector land to build as many as 100,000 new homes. We will also increase the Right to Buy discounts, and use the receipts to build a further 100,000 homes. These measures will help support up to 400,000 jobs, will provide a boost to homebuilding, and will make it easier for people to find affordable homes. 

4.      Boosting investment and exports to rebalance the economy by setting up Enterprise Zones across the country, including in areas affected by potential job losses at BAE, to encourage inward investment; stimulating business growth across England through the Regional Growth Fund; and promoting British exports abroad.

5.      Making a more educated workforce the most flexible in Europe by creating the biggest number of apprenticeships this country has ever seen; establishing at least 24 University Technical Colleges to provide cutting edge vocational training; reforming employment law to boost competitiveness, including extending the qualification period for unfair dismissal and consulting on the introduction of fees for tribunals; and radically reforming welfare to get people off benefits and into work.

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